Document:

vvus_EX 10-1

		

			Exhibit 10.1

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			 

		

		
			SETTLEMENT AGREEMENT
		

		
			This Settlement Agreement (including Exhibits A through C, the “Agreement”) is made and entered into effective this 29th day of June, 2017 (the “Effective Date”), by and between, on the one hand, Vivus, Inc. (“Vivus”), and on the other hand, Actavis Laboratories FL, Inc. (“Actavis”) (together with Vivus, the “Parties,” or each separately, a “Party”).
		

		
			RECITALS
		

		
			A.WHEREAS Vivus owns U.S. Patent Nos.  7,056,890, 7,553,818, 7,659,256, 7,674,776, 8,580,298, 8,580,299, 8,895,057, 8,895,058, 9,011,905, and 9,011,906 (collectively, including any divisionals, continuations, continuations-in-part, reexaminations, or reissues thereof, “the Licensed Patents”), which patents cover Qsymia® brand phentermine and topiramate extended-release product, which product Vivus sells in the United States of America, including its territories, possessions, and the Commonwealth of Puerto Rico (the “Territory”), under NDA No. 022580 (the “Vivus NDA”);
		

		
			B.WHEREAS Actavis has sought approval from the U.S. Food and Drug Administration (“FDA”) to market a  generic phentermine and topiramate extended-release product as defined by ANDA No. 204982 (including all amendments, supplements or Replacements thereto as may be required by the FDA in order to obtain FDA approval thereof, the “Actavis ANDA”) as of the Effective Date (hereinafter, the “Actavis Generic Product”).  
		

		
			C.WHEREAS an action for patent infringement is pending in the United States District Court for the District of New Jersey (the “Court”) regarding the Actavis ANDA and the proposed generic product defined therein, captioned Vivus, Inc. v. Actavis Laboratories FL, Inc., Civil Action No. 14-3786  (SRC)(CLW) (consolidated) (the “Action”);
		

		
			D.WHEREAS, subject to the terms and conditions herein, Vivus has agreed to grant Actavis a non-exclusive license to manufacture and distribute the Actavis Generic Product in the Territory as of the date, and upon the terms, set forth in the License Agreement, as defined and referred to in Section 2 of this Agreement; and
		

		
			E.WHEREAS the Parties are willing to settle the Action on the terms set forth herein.
		

		
			NOW THEREFORE, in consideration of the promises and mutual covenants set forth herein, the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
		

			
	
			
				 1.
			Stipulation and Order of Dismissal.

		
			In consideration of the mutual benefits of entering into this Agreement, the Parties shall enter into and cause to be filed with the Court,  within *** of the Effective Date, a stipulation and order of dismissal substantially in the form annexed hereto as Exhibit A (the “Stipulation and 

		 

 

		

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Order of Dismissal”).  If the Court does not grant the Stipulation and Order of Dismissal substantially in the form annexed hereto as Exhibit A, the Parties agree to confer in good faith and revise that document consistent with the terms of this Agreement and the License Agreement and the requirements of the Court.    
		

			
	
			
				 2.
			License Agreement. 

		
			Contemporaneously with the execution of this Agreement, Vivus and Actavis shall enter into a non-exclusive license agreement in the form annexed hereto as Exhibit B (the “License Agreement”).  The definitions set forth in the License Agreement shall apply to this Settlement Agreement and the definitions set forth in this Settlement Agreement shall apply to the License Agreement.
		

			
	
			
				 3.
			Legal Fees. 

		
			Consistent with the Stipulation and Order of Dismissal, each Party shall pay its own costs and expenses, including attorney fees, incurred in connection with the Action and in connection with the preparation, execution and performance of this Agreement.  
		

			
	
			
				 4.
			Legal Compliance. 

		
			The Parties shall submit this Agreement, the License Agreement, and the Stipulation and Order of Dismissal (the “Settlement Documents”) to the appropriate personnel at the U.S. Federal Trade Commission (“FTC”) and the Antitrust Division of the U.S. Department of Justice (the “DOJ”) as soon as practicable after the Effective Date and in no event later than *** after the Effective Date.    
		

			
	
			
				 5.
			Released Claims. 

		
			In addition to the dismissal of the Action, as set forth in the Stipulation and Order of Dismissal, Actavis and Vivus make the following releases, which shall be effective upon the  entry of the Stipulation and Order of Dismissal by the Court in the Action.
		

		
			(a)Actavis for itself and its Affiliates hereby releases and discharges Vivus and its Affiliates, successors, assigns, directors, officers, employees, agents and customers from all causes of action, demands, claims, damages and liabilities of any nature, whether known or unknown, arising from or in connection with the Action or the Actavis ANDA, occurring prior to the Effective Date of this Agreement, including, without limitation, all claims that Actavis has asserted or could have asserted in the Action or in any judicial,  U.S. Patent and Trademark Office (“USPTO”), or other legal or administrative proceeding that any or all of the Licensed Patents are invalid or not infringed by the filing of the Actavis ANDA and/or Actavis’ 

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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manufacture, sale, offer for sale or importation of the Actavis Generic Product in the Territory (all of the above collectively, “Actavis’ Released Claims”).  Actavis’ Released Claims do not preclude Actavis from:   (i) maintaining and/or (e.g in the case of a Replacement ANDA or a recertification pursuant to 21 C.F.R.§ 314.96(d)) filing Paragraph IV certifications with respect the Actavis ANDA against the Licensed Patents, (ii) amending the Paragraph IV Certification in the Actavis ANDA to include any patents that may be listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (Orange Book) for Qsymia after the Effective Date of this Settlement Agreement, (iii) challenging the validity, enforceability and/or infringement of the Licensed Patents in connection with another ANDA or ANDA product referencing an NDA other than the Vivus NDA and owned or sold by Actavis (iv) in the event Vivus or its Affiliates initiate suit against Actavis or its Affiliates alleging that an ANDA or product referencing an NDA other than the Vivus NDA infringes the Licensed Patents, then Actavis or its Affiliates may seek reexamination, inter partes review, or any other post-grant review of the Licensed Patents.    
		

		
			(b)Vivus for itself and its Affiliates hereby releases and discharges Actavis and its Affiliates, successors, assigns, directors, officers, employees, agents, distributors, suppliers, manufacturers, customers, and all other individuals or entities involved or affiliated with the manufacturing, distribution, marketing, and consumption of the Actavis Generic Product from all causes of action, demands, claims, damages, and liabilities of any nature, whether known or unknown, arising from or in connection with the Action or the Actavis ANDA, occurring prior to the Effective Date of this Agreement, including, without limitation, all claims that Vivus has asserted or could have asserted in the Action or in any judicial or administrative proceeding that any or all of the Licensed Patents,  or any reissue or reexamination thereof, is or would be infringed by the filing of the Actavis ANDA and/or Actavis’ manufacture, sale, offer for sale or importation of the Actavis Generic Product in the Territory (all of the above collectively, “Vivus’ Released Claims”).  Vivus’ Released Claims do not preclude Vivus from asserting any or all of the Licensed Patents against: (i) any ANDA or ANDAs other than the Actavis ANDA and/or against any product or products other than the Actavis Generic Product;  or (ii) any Actavis product other than the Actavis Generic Product.
		

		
			(c)Subject to Actavis’ compliance with the terms of this Settlement Agreement and the terms of the License Agreement, Vivus, on behalf of itself and its Affiliates, covenants to Actavis that it will not sue, assert any claim or counterclaim against, otherwise participate in any action or proceeding against Actavis and its Affiliates or any of its licensees, sublicensees, customers, successors, or assigns of the foregoing, or cause, assist, or authorize any person or entity to do any of the foregoing, in each case claiming or otherwise asserting that the Actavis ANDA or the Actavis Generic Product or the manufacture, use, sale, offer for sale, or importation of the Actavis Generic Product, in or for the Territory infringes the Licensed Patents or any other patents or patent applications owned, controlled by or licensed to Vivus that cover 

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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the Actavis Generic Product or Qsymia® (“Vivus Covenant Not to Sue”).   Vivus shall impose the  Vivus Covenant Not to Sue on any Third Party to which Vivus or any of its Affiliates may after the Effective Date assign, license or otherwise transfer or grant any rights under Licensed Patents. 
		

		
			(d)Subject to Vivus’ compliance with the terms of this Settlement Agreement and the terms of the License Agreement, and solely with respect to the Actavis ANDA and the Actavis Generic Product Actavis, on behalf of itself and its Affiliates, covenants to Vivus that it will not sue, assert any claim or counterclaim against, otherwise participate in any action or in any judicial, USPTO, or other legal proceeding against Vivus, its Affiliates or any of its licensees, sublicensees, customers, successors, or assigns of the foregoing, or cause, assist, or authorize any person or entity to do any of the foregoing, in each case claiming or otherwise asserting that any or all of the Licensed Patents or any other U.S. patents or patent applications that cover Qsymia® or could otherwise be asserted against the Actavis Generic Product owned, licensed or controlled by Vivus are invalid or that the Actavis ANDA or the Actavis Generic Product or the manufacture, use, sale, offer for sale, or importation of the Actavis Generic Product, in or for the Territory does or would not infringe valid claims of all of the Licensed Patents or any other U.S. patents or patent applications that cover Qsymia® or could otherwise be asserted against the Actavis Generic Product owned, licensed or controlled by Vivus or its Affiliates either now or in the future (“Actavis Covenant Not to Sue”).   Actavis shall impose the  Actavis Covenant Not to Sue on any Third Party to which Actavis or any of its Affiliates may after the Effective Date assign, license or otherwise transfer or grant any rights under Actavis ANDA.    
		

		
			(e)Subject to Actavis’ compliance with the terms of this Settlement Agreement and the terms of the License Agreement, Vivus, on behalf of itself and its Affiliates, covenants that, on or prior to the *** after the Launch Date, as defined in the License Agreement, neither Vivus nor any of its Affiliates will *** in the Vivus NDA in the Territory other than *** as of the Effective Date. 
		

		
			(f)Subject to Actavis’ compliance with the terms of this Settlement Agreement and the terms of the License Agreement, and except as provided below, Vivus, on behalf of itself and its Affiliates, covenants that neither Vivus nor any of its Affiliates shall *** to: (1) ***; or (2) ***.  Vivus and its Affiliates further agree ***: (1) ***; (2) ***; (3) *** for the NDA Product prior to the launch of the Actavis Generic Product in the Territory; (4) *** after the launch of the Actavis Generic Product in the Territory; or (5) *** after launch of the Actavis Generic Product in the Territory, unless required by the FDA.  In addition, Vivus and its Affiliates hereby waive any and all regulatory exclusivities that may inhibit the Marketing of the Actavis Generic Product in the Territory as of the Launch Date, and will, in response to a request from FDA or a commercially reasonable request from Actavis to enable compliance with applicable Laws, submit appropriate and reasonable documentation to FDA to assist Actavis in effectuating the 

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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license grants, waivers and covenants contained in the Settlement Agreement and the License Agreement.  Nothing in this Settlement Agreement shall be construed as preventing Vivus or any of its Affiliates from assisting or cooperating with any Third Party, or from itself initiating or participating in, any activity (including but not limited to the ***.  
		

		
			(g)Subject to Actavis’ compliance with the terms of this Settlement Agreement and the terms of the License Agreement, Vivus, on behalf of itself and its Affiliates, agrees that in the *** prior to the *** Launch Date, upon request from Actavis, Vivus will provide written notice to Actavis within *** after each time either: (1) Vivus makes a formal submission to FDA seeking a change in the label for the NDA Product, including any specific labeling amendments or supplements to the Vivus NDA; or (2) FDA either implements such changes or communicates to Vivus a directive to make a change to the label for the NDA Product.  In each case such notice shall include the text of the proposed or directed label change. 
		

		
			(h)This Agreement shall constitute a final settlement of the Action between the Parties in the Territory, and,  Actavis shall not assist or cooperate with any party in any litigation before a court, or in any Inter Partes review, Covered Business Method review, Post-Grant review, or any other proceeding before the USPTO against Vivus involving any of the Licensed Patents, unless so ordered by the Court or compelled by Law or regulation.    
		

		
			(i)Vivus acknowledges that Actavis is *** with respect to ***.  
		

		
			(j)The  Parties, and agents and consultants under their control, shall continue to maintain the confidentiality of any non-public information exchanged between them in the Action to the extent required by the terms of the Discovery Confidentiality Order in the Action or District of New Jersey Local Rule 5.3(b), or any other applicable confidentiality restriction, unless so ordered by the Court or compelled by Law or regulation.
		

		
			(k)Actavis shall *** in any litigation before a court, or Inter Partes review, Covered Business Method review, Post-Grant review, or any other proceeding before the USPTO against Vivus with respect to a phentermine and topiramate extended-release product or the Licensed Patents.  
		

			
	
			
				 6.
			ACKNOWLEDGMENTS. 

		
			Actavis and Vivus acknowledge as follows:
		

			
	
			
				 (a)
			Actavis ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER CLAIMS OR FACTS IN ADDITION TO OR DIFFERENT FROM THOSE WHICH IT NOW KNOWS OR BELIEVES TO EXIST WITH RESPECT TO Actavis’ RELEASED CLAIMS, THE FACTS AND CIRCUMSTANCES ALLEGED IN THE ACTION 

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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	AND/OR THE SUBJECT MATTER OF THIS AGREEMENT, WHICH, IF KNOWN OR SUSPECTED AT THE TIME OF EXECUTING THIS AGREEMENT, MAY HAVE MATERIALLY AFFECTED THIS AGREEMENT.  NEVERTHELESS, UPON THE EFFECTIVENESS OF THE RELEASE OF Actavis’ RELEASED CLAIMS AS SET FORTH IN SECTION 5 ABOVE, Actavis HEREBY ACKNOWLEDGES THAT Actavis’ RELEASED CLAIMS INCLUDE WAIVERS OF ANY RIGHTS, CLAIMS OR CAUSES OF ACTION THAT MIGHT ARISE AS A RESULT OF SUCH DIFFERENT OR ADDITIONAL CLAIMS OR FACTS.  Actavis ACKNOWLEDGES THAT IT UNDERSTANDS THE SIGNIFICANCE AND POTENTIAL CONSEQUENCES OF SUCH A RELEASE OF UNKNOWN UNITED STATES JURISDICTION CLAIMS AND OF SUCH A SPECIFIC WAIVER OF RIGHTS.  ACTAVIS INTENDS THAT THE CLAIMS RELEASED BY IT UNDER THIS RELEASE BE CONSTRUED AS BROADLY AS POSSIBLE TO THE EXTENT THEY RELATE TO UNITED STATES JURISDICTION CLAIMS.  ACTAVIS IS AWARE OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

		
			“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her, must have materially affected his or her settlement with the debtor.”
		

		
			ACTAVIS AGREES TO EXPRESSLY WAIVE ANY RIGHTS IT MAY HAVE UNDER THIS CODE SECTION OR UNDER FEDERAL, STATE OR COMMON LAW STATUTES OR JUDICIAL DECISIONS OF A SIMILAR NATURE, AND KNOWINGLY AND VOLUNTARILY WAIVES SUCH UNKNOWN CLAIMS.
		

			
	
			
				 (b)
			VIVUS ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER CLAIMS OR FACTS IN ADDITION TO OR DIFFERENT FROM THOSE WHICH IT NOW KNOWS OR BELIEVES TO EXIST WITH RESPECT TO VIVUS’ RELEASED CLAIMS, THE FACTS AND CIRCUMSTANCES ALLEGED IN THE ACTION AND/OR THE SUBJECT MATTER OF THIS AGREEMENT, WHICH, IF KNOWN OR SUSPECTED AT THE TIME OF EXECUTING THIS AGREEMENT, MAY HAVE MATERIALLY AFFECTED THIS AGREEMENT.  NEVERTHELESS, UPON THE EFFECTIVENESS OF THE RELEASE OF VIVUS’ RELEASED CLAIMS AS SET FORTH IN SECTION 5 ABOVE, VIVUS HEREBY ACKNOWLEDGES THAT VIVUS’ RELEASED CLAIMS INCLUDE WAIVERS OF ANY RIGHTS, CLAIMS OR CAUSES OF ACTION THAT MIGHT ARISE AS A RESULT OF SUCH DIFFERENT OR ADDITIONAL CLAIMS OR FACTS.  VIVUS ACKNOWLEDGES THAT IT UNDERSTANDS THE SIGNIFICANCE AND POTENTIAL CONSEQUENCES OF SUCH A RELEASE OF UNKNOWN UNITED STATES JURISDICTION CLAIMS AND OF SUCH A SPECIFIC WAIVER OF RIGHTS.  VIVUS 

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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	INTENDS THAT THE CLAIMS RELEASED BY IT  UNDER THIS RELEASE BE CONSTRUED AS BROADLY AS POSSIBLE TO THE EXTENT THEY RELATE TO UNITED STATES JURISDICTION CLAIMS.  VIVUS IS AWARE OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

		
			“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her, must have materially affected his or her settlement with the debtor.”
		

		
			VIVUS AGREES TO EXPRESSLY WAIVE ANY RIGHTS IT MAY HAVE UNDER THIS CODE SECTION OR UNDER FEDERAL, STATE OR COMMON LAW STATUTES OR JUDICIAL DECISIONS OF A SIMILAR NATURE, AND KNOWINGLY AND VOLUNTARILY WAIVES SUCH UNKNOWN CLAIMS.
		

			
	
			
				 7.
			Confidentiality. 

		
			The terms of this Agreement shall be maintained in strict confidence by the Parties except:  (a) as provided by Section 4 of this Agreement; (b) that Vivus may disclose such terms as may be necessary in connection with any litigation or other legal proceeding relating to any of the Licensed Patents, provided that such disclosure is made subject to a protective order and/or confidentiality agreement; (c) that either Party may disclose such terms, including but not limited to the Launch Date as defined in the License Agreement, if and as required by Law or regulation, including, without limitation, SEC reporting requirements, or by the rules or regulations of any stock exchange to which such party is subject; (d) that either Party may disclose such terms to the extent necessary to allow attorneys, auditors and advisors, who agree to keep such terms confidential, to render professional services to the Parties; (e)  that the Parties may each issue a press release disclosing that the Parties have settled the Action, and that Actavis has received a license to the Licensed Patents, that will permit Actavis to commercially launch its Generic Product on the Launch Date, or earlier in certain circumstances, so long as such press release is approved by the other Party, which approval shall not be unreasonably withheld, conditioned, or delayed; and (f) that either Party may disclose such terms as needed to perform under this Agreement and the License Agreement.  The Parties acknowledge and agree that, upon its filing with the Court, the Stipulation and Order of Dismissal will be a matter of public record and shall not be subject to any confidentiality restrictions.  The Parties further agree that, upon the filing of the Stipulation and Order of Dismissal with the Court, the fact that the Parties have settled the Action will be a matter of public record and shall not be subject to any confidentiality restrictions, but the terms of such settlement shall be maintained in confidence as provided by this Section 7.
		

		
			

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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				 8.
			Term and Termination. 

		
			This Agreement shall continue from the Effective Date until the earlier of:  (a) the expiration of the last to expire of the Licensed Patents, including any extensions and/or pediatric exclusivities; or (b) the date of a final judgment, from which no appeal has been or can be taken other than a petition to the Supreme Court for a writ of certiorari, that all of the asserted claims of all of the asserted Licensed Patents are invalid and/or unenforceable.    The releases and discharges set forth in Section 5 shall survive the termination of this Agreement and the confidentiality obligations set forth in Section 7 shall survive for a period of *** from the Effective Date, notwithstanding any earlier expiration or termination of this Agreement.  The License Agreement shall remain in full force and effect pursuant to its own terms notwithstanding the expiration or termination of this Agreement.
		

			
	
			
				 9.
			No Assignment. 

		
			This Agreement may not be assigned or transferred to a third party without the express prior written consent of all the other Parties hereto, which consent shall not be unreasonably withheld,  conditioned, or delayed, except to a successor to all or substantially all of the business of the assigning or transferring Party to which this Agreement pertains (whether by license or sale of assets, stock, merger, consolidation or otherwise), in which case the Party shall assign this Agreement to such successor, provided that a Party may in the ordinary course of its business assign its rights under this Agreement to an Affiliate or may transfer the rights under this Agreement from one Affiliate to another without the prior consent of the other.  The covenants, rights and obligations of a Party under this Agreement shall remain binding upon the transferring Party and shall inure to the benefit of and be binding upon any successor or permitted assignee of the Party, any assignee of the Actavis ANDA, and any assignee of any of the Licensed Patents.    
		

			
	
			
				 10.
			Notice. 

		
			Any notice required or permitted to be given or sent under this Agreement shall be hand delivered or sent by express delivery service or certified or registered mail, postage prepaid, to the Parties at the addresses indicated below. 
		

			
					
						If to Vivus, to:

					
					
						Vivus, Inc.

					
						900 E. Hamilton Ave.

					
						Suite 550

					
						Campbell, CA 95008

					
						Attn: General Counsel

					
						 

				
	
					
						 

					
					
						 

				

		 

		

			 

		

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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						with a copy to:

					
					
						Nick Cerrito

					
						Quinn Emanuel Urquhart & Sullivan, LLP

					
						51 Madison Avenue

					
						22nd Floor

					
						New York, NY 10010

				
	
					
						 

					
						 

					
						 

					
					
						 

				
	
					
						If to Actavis, to:

					
					
						 

				
	
					
						 

					
						 

					
					
						Staci L. Julie
SVP and Chief IP Counsel
Teva Pharmaceuticals USA, Inc.
425 Privet Rd.

					
						Hosham, PA 19044

					
						 

					
						 

					
						 

				
	
					
						with a copy to:

					
					
						Jay P. Lefkowitz

					
						Kirkland & Ellis LLP

					
						601 Lexington Avenue

					
						New York, NY 10022
Fax: (212) 446-4900

					
						 

				
	
					
						 

					
						 

					
					
						 

				

		
			 
		

		
			Any such notice shall be deemed to have been received on the date actually received.  Either Party may change its address by giving the other Party written notice, delivered in accordance with this Section.
		

			
	
			
				 11.
			Entire Agreement. 

		
			This Agreement, as defined herein to include Exhibits A through C, constitutes the complete, final and exclusive agreement between the Parties with respect to the subject matter hereof and supersedes and terminates any prior or contemporaneous agreements and/or understandings between the Parties, whether oral or in writing, relating to such subject matter.  There are no covenants, promises, agreements, warranties, representations, conditions or understandings, either oral or written, between the Parties other than as are set forth in this Agreement.  No subsequent alteration, amendment, change, waiver or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by an authorized officer of 

		 

		

			 

		

		

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each Party.  Each Party in deciding to execute this Agreement has retained counsel and has not relied on any understanding, agreement, representation or promise by the other Party that is not explicitly set forth herein.
		

			
	
			
				 12.
			Governing Law. 

		
			This Agreement shall be governed, interpreted and construed in accordance with the laws of the State of New Jersey, without giving effect to choice of law principles.  The Parties irrevocably agree that the United States District Court for the District of New Jersey shall have exclusive jurisdiction to deal with any disputes arising out of or in connection with this Agreement and that, accordingly, any such proceedings arising out of or in connection with this Agreement shall be brought in the United States District Court for the District of New Jersey.    Notwithstanding the foregoing, if there is any dispute for which the United States District Court for the District of New Jersey does not have subject matter jurisdiction, the state courts in New Jersey shall have jurisdiction.  In connection with any dispute arising out of or in connection with this Agreement, each Party hereby expressly consents and submits to the personal jurisdiction of the federal and state courts in the State of New Jersey.
		

			
	
			
				 13.
			Severability. 

		
			If any provision of this Agreement is declared illegal, invalid or unenforceable by a court having competent jurisdiction, it is mutually agreed that this Agreement shall endure except for the part declared invalid or unenforceable by order of such court; provided, however, that in the event that the terms and conditions of this Agreement are materially altered, the Parties will, in good faith, renegotiate the terms and conditions of this Agreement (including Section 5 hereof) to reasonably replace such invalid or unenforceable provisions in light of the intent of this Agreement.
		

			
	
			
				 14.
			Waiver. 

		
			Any delay or failure in enforcing a Party’s rights under this Agreement, or any acquiescence as to a particular default or other matter, shall not constitute a waiver of such Party’s rights to the enforcement of such rights, nor operate to bar the exercise or enforcement thereof at any time or times thereafter, except as to an express written and signed waiver as to a particular matter for a particular period of time.
		

			
	
			
				 15.
			Counterparts. 

		
			This Agreement shall become binding when any one or more counterparts hereof, individually or taken together, bears the signatures of each of the Parties hereto.  This Agreement may be executed in any number of counterparts (including facsimile or electronic counterparts), 

		 

		

			 

		

		

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each of which shall be an original as against a Party whose signature appears thereon, but all of which taken together shall constitute one and the same instrument.
		

			
	
			
				 16.
			Representations and Warranties. 

		
			The Parties hereby represent and warrant that:  (a) they have approved the execution of this Agreement and have authorized and directed the signatory officers below to execute and deliver this Agreement; (b) they each have the full right and power to enter into this Agreement, and there are no other persons or entities whose consent or joinder in this Agreement is necessary to make fully effective those provisions of this Agreement that obligate, burden or bind either of them; (c) when so executed by each Party, this Agreement shall constitute a valid and binding obligation of such Party, enforceable in accordance with its terms; and (d) they have not transferred or assigned or pledged to any third party, whether or not Affiliated, the right to bring, pursue or settle any of the claims, counterclaims or demands made in the Action.
		

			
	
			
				 17.
			Construction. 

		
			This Agreement has been jointly negotiated and drafted by the Parties through their respective counsel and no provision shall be construed or interpreted for or against any of the Parties on the basis that such provision, or any other provision, or the Agreement as a whole, was purportedly drafted by the particular Party.    All references to an Affiliate or Affiliates in this Agreement shall have the same meaning as set forth in the License Agreement attached as Exhibit B hereto. 
		

			
	
			
				 18.
			Headings. 

		
			The article and section headings contained in this Settlement Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Settlement Agreement.
		

		
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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended. 

		

		

			         

		

 

		

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			IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties.

		

		
			 
		

		
			VIVUS, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Mark Oki
		

		
			Name: Mark Oki
		

		
			Title: Chief Financial Officer
		

		
			

		 

		

			 

		

		

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			IN WITNESS WHEREOF, this Agreement has been executed by the duly authorized representatives of the Parties.

		

		
			 
		

		
			ACTAVIS LABORATORIES FL, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Daniel N. Motto
		

		
			Name: Daniel N. Motto
		

		
			Title: SVP, Global Business Development
		

		
			 
		

		
			 
		

		
			ACTAVIS LABORATORIES FL, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Colman B. Ragan
		

		
			Name: Colman B. Ragan
		

		
			Title: Associate General Counsel, U.S. IP Litigation
		

		
			
		

		
			

		 

		

			 

		

		

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			EXHIBIT A

Stipulation and Order of Dismissal 
		

		
			

		 

		

			 

		

		

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			IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY
		

			
					
						 

					
						VIVUS, INC., 

					
						 

					
						Plaintiff,

					
						 

					
						v.

					
						 

					
						Actavis Laboratories FL, Inc.,

					
						
Defendant.

					
					
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						Civil Action No. 14-3786-SRC-CLW

					
						 

					
						(consolidated)

					
						 

				

		
			 
		

		
			STIPULATION AND ORDER OF DISMISSAL
		

		
			Pursuant to Federal Rules of Civil Procedure 41(a)(1)(A)(ii) and 41(c), and by agreement between Plaintiff Vivus, Inc. (“Vivus”) and Defendant Actavis Laboratories FL, Inc. (“Actavis,” and together with Vivus, the “Parties”), the Parties hereby stipulate and agree that all claims, counterclaims and affirmative defenses asserted by the Parties against each other in the above-captioned action (the “Action”) are hereby dismissed without prejudice and without costs, disbursements, or attorneys’ fees to any party.  It is further stipulated that the U.S. District Court for the District of New Jersey retains jurisdiction to enforce and resolve any disputes related to the Parties’ resolution of the Action.
		

		
			
		

		
			

		 

 

		

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			SO STIPULATED:
		

		
			Dated: _____________, 2017
		

		
			 
		

			
					
						Saul Ewing LLP

					
						 

					
						 

					
						

					
						Charles M. Lizza
William C. Baton
One Riverfront Plaza, Suite 1520
Newark, New Jersey 07102-5426
(973) 286-6700
clizza@saul.com

Attorneys for Plaintiff
Vivus, Inc.

					
						 

					
					
						Walsh Pizzi O’Reilly Falanga LLP

					
						 

					
						 

					
						

					
						Liza M. Walsh
Christine I. Gannon
One Riverfront Plaza, Suite 600
Newark, New Jersey 07102
(973) 757-1100
lwalsh@thewalshfirm.com

Attorneys for Defendant
Actavis Laboratories FL, Inc.

				

		
			 
		

		
			 
		

		
			SO ORDERED:
		

		
			This _____day of _________________, 2017
		

		
			

		

		
			Hon. Stanley R. Chelser, U.S.D.J.

		

		
			 
		

		
			

		 

		

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			EXHIBIT B
		

		
			License Agreement
		

		
			 
		

		
			

		 

		

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			LICENSE AGREEMENT
		

		
			This License Agreement (the “License Agreement”) is made and entered into this
29th day of June, 2017  (“the Execution Date”) by and between, on the one hand, Vivus, Inc. (“Vivus”), and on the other hand, Actavis Laboratories FL, Inc. (“Actavis”) (together with Vivus, the “Parties,” or each separately, a “Party”).
		

		
			RECITALS:
		

		
			A.WHEREAS Vivus owns U.S. Patent Nos. 7,056,890, 7,553,818, 7,659,256, 7,674,776, 8,580,298, 8,580,299, 8,895,057, 8,895,058, 9,011,905, and 9,011,906 (collectively, including any divisionals, continuations, continuations-in-part, reexaminations, or reissues thereof, “the Licensed Patents”), which patents cover Qsymia® brand phentermine and topiramate extended-release product, which product Vivus sells in the United States of America, including its territories, possessions, and the Commonwealth of Puerto Rico (the “Territory”), under NDA No. 022580 (the “Vivus NDA”);
		

		
			B.WHEREAS Actavis has sought approval from the U.S. Food and Drug Administration (“FDA”) to market the Actavis Generic Product as defined herein;
		

		
			C.WHEREAS, pursuant to a settlement agreement to which this License Agreement is Exhibit B (the “Settlement Agreement”), executed contemporaneously with this License Agreement, Vivus and Actavis have agreed to settle their disputes in the Action described therein, which relate to the Licensed Patents and Actavis’ filing of the Actavis ANDA as defined herein with the FDA; and
		

		
			D.WHEREAS, as part of such settlement, Vivus and Actavis agreed to enter into this License Agreement, which, as of the date and upon the terms set forth herein, grants Actavis a  non-exclusive license to manufacture and/or sell in the Territory the generic phentermine and topiramate extended-release product currently defined by the Actavis ANDA.
		

		
			NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
		

			
	
			
				 1.
			

			
	
			
			Definitions.

			
	
			
				 1.1
			“Actavis ANDA” shall mean ANDA No. 204982, including all amendments, supplements and Replacements thereto as may be required by the FDA in order to obtain FDA approval thereof. 

			
	
			
				 1.2
			“Actavis ***” means ***  (***) of ***.

			
	
			
				 1.3
			“Actavis ***” means, with respect to the Actavis Generic Product, (i) ***, inclusive of ***; (ii)  *** and (iii)  ***, in each case in accordance with GAAP as reflected 

		 

		

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	in Actavis’s or one of its Affiliate’s financial statements and as applied on a consistent basis and measured in United States dollars.

			
	
			
				 1.4
			 “Actavis Generic Product” shall mean the generic phentermine and topiramate extended-release product described in the Actavis ANDA as of the Execution Date, subject to any amendments, supplements or Replacements to such ANDA as may be required by the FDA in order to obtain FDA approval of such product.  

			
	
			
				 1.5
			“Affiliate” shall mean, with respect to a particular Party, a person, corporation, partnership, or other entity that controls, is controlled by or is under common control with such Party.  For the purposes of this definition, the word “control” (including, with correlative meaning, the terms “controlled by” or “under common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of fifty percent (50%) or more of the voting stock or other equity interest of such entity, or by contract or otherwise.  For clarity, a person or other entity shall be deemed an Affiliate only for so long as this definition is satisfied with respect to such person or entity.

			
	
			
				 1.6
			“ANDA” shall mean an Abbreviated New Drug Application.

			
	
			
				 1.7
			“Authorized Generic” shall mean any product that:  (a) contains the Compounds as the only active ingredients; (b) is Marketed in the Territory pursuant to NDA No. 022580; and (c) is Marketed in the Territory without the Trademark.

			
	
			
				 1.8
			“Compounds” shall mean phentermine and topiramate extended-release.

			
	
			
				 1.9
			“***” means *** (i) ***,  and (ii) ***.

			
	
			
				 1.10
			“Effective Date” shall mean the date that the Stipulation And Order Of Dismissal is entered by the Court.

			
	
			
				 1.11
			“Extended Unit Sales” means the number of Qsymia units sold as reported in the IMS Data (whether reported monthly or quarterly).

			
	
			
				 1.12
			“FDA” shall mean the U.S. Food and Drug Administration.

			
	
			
				 1.13
			“Final Court Decision” shall mean the issuance of a final decision from a district court from which no appeal has been or can be taken, or a mandate from a court of appeals from which no appeal (other than a petition to the Supreme Court for a writ of certiorari) has been or can be taken.

		
			

		 

		

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				 1.14
			“Generic Equivalent” shall mean a pharmaceutical product that has received FDA approval for Marketing in the Territory pursuant to an ANDA or 505(b)(2) filing as an AB-rated equivalent to the NDA Product.

			
	
			
				 1.15
			 “GMPs” shall mean the then current good manufacturing practice regulations promulgated by the FDA.

			
	
			
				 1.16
			“Launch Date” shall mean the earliest of: 

			
	
			
				 i.
			

			
	
			
			December 1, 2024;  

			
	
			
				 ii.
			

			
	
			
			the date of ***;  

		
			 
		

			
	
			
				 iii.
			

			
	
			
			***;  

		
			 
		

			
	
			
				 iv.
			

			
	
			
			*** prior to the ***;

		
			 
		

			
	
			
				 v.
			

			
	
			
			the date the ***;  

		
			 
		

			
	
			
				 vi.
			

			
	
			
			The date on which ***; or

		
			 
		

			
	
			
				 vii.
			

			
	
			
			Beginning on ***, the date that is the *** of (a)  the first day following the *** of the *** compared to the *** or, (b) the day following the last day of any *** period during which the *** of the *** has ***, in the aggregate, during such ***, where such  ***.  Notwithstanding the foregoing, if any of *** identified in Section 1.16(vii)(a)-(b) above *** the calendar quarter immediately preceding the *** and including the calendar quarter ending ***, it will be deemed as if ***.  For the avoidance of doubt if any *** identified above in Section 1.16(vii)(a)-(b) occurs ***.    Notwithstanding the foregoing, *** identified in Section 1.16(vii)(a)-(b) above occur as the result of a ***.  For purposes of this subparagraph, a “Force Majeure Event” shall be defined as any of the following: fire, explosion, earthquake, flood, other natural disasters or other acts of God; new acts, regulations, or Laws of any Governmental Entity; war (whether or not declared), acts of terrorism, failure of public utilities or common carriers; inability to obtain material (including shortage of active ingredients from FDA-qualified suppliers); inability to manufacture the NDA Product; Third-Party supply disruptions; or insolvency of any Third-Party manufacturer of the NDA Product.  In the event of a Force Majeure Event, Vivus shall notify Actavis and take reasonable steps to mitigate or otherwise remedy the impact of such event.

		
			

		 

		

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				 7.1
			“Laws” shall mean all applicable international, supranational, national, federal, state, provincial, regional and local laws, statutes, ordinances, codes, rules, regulations, orders, decrees or other pronouncements of any governmental, administrative or judicial authority in the Territory.    

			
	
			
				 7.2
			“License” shall have the meaning assigned to such term in Section 2.1 of this License Agreement.

			
	
			
				 7.3
			“Licensed Patents” shall mean U.S. Patent Nos. 7,056,890, 7,553,818, 7,659,256, 7,674,776, 8,580,298, 8,580,299, 8,895,057, 8,895,058, 9,011,905, 9,011,906, including any divisionals, continuations, continuations-in-part, reexaminations, or reissues thereof, and all patent term extensions and any pediatric exclusivities applicable to the corresponding NDA Product, in each case whether granted or allowed prior to or after the Execution Date.

			
	
			
				 7.4
			“Manufacture” shall mean to make or have made in accordance with GMPs and the provisions of an ANDA approved by the FDA.

			
	
			
				 7.5
			“Market” shall mean to distribute, import, use, market, sell,  and offer to sell, and “Marketing” shall have a corresponding meaning.

			
	
			
				 7.6
			“Net Sales” shall mean, with respect to the Actavis Generic Product sold in the Territory, the aggregate gross sales amount invoiced by Actavis and its Affiliates on an arms-length basis to Third Parties in the Territory, less the following deductions, all determined in accordance with Actavis’ standard practices for other pharmaceutical products, consistently applied: 

			
	
			
				 a.
			cash discounts given by Actavis (and its Affiliates) with respect to sales of the product in the Territory, ***;  

			
	
			
				 b.
			reasonable *** affecting the product; 

			
	
			
				 c.
			reasonable ***;  

			
	
			
				 d.
			reasonable ***, based on sales by Actavis and its Affiliates to any  *** or similar programs;

			
	
			
				 e.
			reasonable *** for *** and *** to *** on account of *** or ***;

			
	
			
				 f.
			any government mandated ***, including, without limitation, *** (as amended or replaced); and

		
			

		 

		

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				 g.
			other specifically identifiable amounts that have been *** listed above.

		
			For purposes of clarity, *** for the Actavis Generic Product will not be *** shall include the ***, but shall not include ***.
		

		
			Actavis will not use the *** that would result in *** in this Section 1.22 to the ***. 
		

		
			 
		

			
	
			
				 7.7
			“NDA” shall mean New Drug Application.

			
	
			
				 7.8
			“NDA Product” shall mean the product Marketed under the Trademark that contains the Compounds as the only active ingredients and that is approved for Marketing in the Territory pursuant to NDA No.  022580 as of the Execution Date.

			
	
			
				 7.9
			“Replacement” shall mean a new ANDA filing referencing the Vivus NDA that describes a product that is materially identical to the Actavis Generic Product, but assigned a new ANDA number without any new or different active pharmaceutical ingredient(s), and “replaced” shall have a corresponding meaning in the context of an ANDA owned or controlled by Actavis or its Affiliates.  

			
	
			
				 7.10
			“Stipulation and Order of Dismissal” shall have the meaning assigned to such term in Section 1 of the Settlement Agreement.

			
	
			
				 7.11
			“Term” shall mean the period from the Execution Date of this License Agreement until the date on which this License Agreement terminates as provided in Section  13.

			
	
			
				 7.12
			“Territory” shall mean the United States of America, including its territories, possessions, and the Commonwealth of Puerto Rico.

			
	
			
				 7.13
			“Third Party” shall mean any person or entity other than a Party or its Affiliates.

			
	
			
				 7.14
			“Trademark” shall mean the trademark Qsymia® and any other trademark, service mark, corporate name or logo owned or controlled by Vivus and used in connection with the sale or distribution of a  phentermine and topiramate extended-release product pursuant to NDA No.  022580 in the Territory.

			
	
			
				 7.15
			“Wholesaler or API Affiliate” means a subsidiary or Affiliate of a Party whose primary business is wholesale distribution of pharmaceutical products or the production of active pharmaceutical ingredients for incorporation into Third Parties’ finished dosage products.  

		 

		

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	For clarity, Actavis’ Wholesaler or API Affiliates as of the Effective Date are ***.  Notwithstanding the foregoing or anything to the contrary in this License Agreement, a Wholesaler Affiliate or API Affiliate shall not be deemed *** for any purposes under this License Agreement.

			
	
			
				 2.
			

			
	
			
			License

			
	
			
				 2.1
			Effective on and after the Launch Date, Vivus hereby grants to Actavis (and to the extent necessary, its suppliers, distributors and customers, as the case may be) a non-exclusive license to the Licensed Patents to the extent it would otherwise be infringed by the Marketing or Manufacture of the Actavis Generic Product in the Territory.  Except to the extent of the assignment permitted pursuant to Section  14.2, Actavis shall not have the right to sublicense or assign any of its rights under this license.

			
	
			
				 2.2
			Notwithstanding anything to the contrary contained in Section 2.1, prior to the Launch Date, Actavis may engage in the following *** activities:

		
			(a)Discussions with potential customers to make them aware of the upcoming availability of the Actavis Generic Product from Actavis, starting not earlier than *** Launch Date;
		

		
			(b)Sales order booking starting not earlier than *** Launch Date; 
		

		
			(c)Import or Manufacture of the Actavis Generic Product in the Territory starting not earlier than *** Launch Date.    
		

			
	
			
				 2.3
			If necessary for Actavis to Market the Actavis Generic Product, Vivus further agrees to *** associated with the NDA Product, under commercially reasonable terms to be negotiated by the Parties in good faith.    

			
	
			
				 3.
			

			
	
			
			Limitations On License

			
	
			
				 3.1
			Except to the extent permitted by the License of Section 2.1 and the permitted *** activities of Section 2.2, neither Actavis nor any of its Affiliates, distributors or agents shall under any circumstances Manufacture or Market any Generic Equivalent of the NDA Product in the Territory prior to the expiration of the last to expire of the patents included in the Licensed Patents.

			
	
			
				 4.
			

			
	
			
			Non-Exclusivity

			
	
			
				 4.1
			Except as provided in Section 1.16, the License and rights granted in Sections 2.1 and 2.2 above shall be non-exclusive.

		
			

		 

		

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				 4.2
			Consistent with the provisions of Sections 1.16 and 4.1,  Vivus specifically reserves the right to license any other party who files or has filed an ANDA referencing the NDA Product to Market a Generic Equivalent of the NDA Product in the Territory (an “ANDA Filer”) in settlement of any pending or threatened litigation or other legal proceeding regarding any of the Licensed Patents or otherwise.  

			
	
			
				 4.3
			Consistent with the provisions of Section 4.1,  Vivus specifically reserves the right to authorize and license any Third Party to Market an Authorized Generic in the Territory,  and further specifically reserves the right to Market an Authorized Generic in the Territory itself or through an Affiliate.

			
	
			
				 5.
			

			
	
			
			Effect of Post-Approval FDA Commitments

			
	
			
				 5.1
			Vivus represents and warrants to Actavis that as part of its ***.  Vivus further represents and warrants: (i) ***; (ii) that the ***; and (iii) that the *** as ***.  Therefore, *** as follows:

			
	
			
				 (a)
			If the ***, or may be *** by ***, then the Launch Date will remain December 1, 2024,  *** pursuant to Sections 1.16(ii)-(vii) above;

			
	
			
				 (b)
			If the ***, and Vivus ***, then the Launch Date will be *** pursuant to Sections 1.16(ii)-(vii) above;

			
	
			
				 (c)
			If the *** that the ***, and Vivus ***, then the Launch Date may be *** pursuant to Sections 1.16(ii)-(vii) above:

			
	
			
				 (i)
			If ***, then the Launch Date will ***;

			
	
			
				 (ii)
			If the ***, is ***, then the Launch Date will ***;

			
	
			
				 (iii)
			If the ***, is ***, then the Launch Date will ***; 

			
	
			
				 (iv)
			If the ***, is ***, then the Launch Date will ***;

			
	
			
				 (d)
			If, by ***, then the Launch Date will be ***,  *** pursuant to Sections 1.16(ii)-(vii) above;

			
	
			
				 (e)
			Vivus may *** the Launch Date to *** of the Actavis Generic Product ***.

			
	
			
				 5.2
			If Vivus *** as set forth in Section 5.1(c) above, Vivus will ***.    

		
			

		 

		

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				 6.
			

			
	
			
			Royalty

			
	
			
				 6.1
			If the Launch Date is accelerated pursuant to Sections 1.16(ii)-(vii) or Sections 5.1(b)-(e) above, Actavis will pay a Royalty according to the following schedule:

			
	
			
				 (a)
			***;

			
	
			
				 (a)
			***;

			
	
			
				 (a)
			***;

			
	
			
				 6.2
			Within *** after the end of the applicable calendar quarter following the Launch Date, Actavis shall submit to Vivus the Royalty owed pursuant to Section 6.1, if any, along with a royalty report outlining in reasonable detail the ***.  

			
	
			
				 6.3
			*** True-Up.    During the License Term, ***, following the ***,  Teva shall perform a “true up” reconciliation within *** after the end of the applicable calendar year (and shall provide  Vivus with a written report of such reconciliation) of the deductions outlined in the definition of “Net Sales” and the costs included in “Actavis ***.”  The reconciliation shall be based on *** for any remaining liabilities incurred related to the product, but not yet paid at the end of the ***.  If the foregoing reconciliation report shows either an underpayment or an overpayment between the Parties, the Party owing payment to the other Party shall pay the amount of the difference to the other Party within *** after the date of delivery of such report.

		
			 
		

			
	
			
				 6.4
			*** True-Up.  Within *** of the end of the last calendar year during the Term in which fees are payable to Vivus pursuant to this Section 6, Actavis shall perform a “true-up” reconciliation (and shall provide Vivus with a written report of such reconciliation) of the items comprising deductions from Net Sales and the costs included in “Actavis ***.”  If the foregoing reconciliation report shows either an underpayment or an overpayment between the Parties, the Party owing payment to the other Party shall pay the amount of the difference to the other Party within *** after the date of delivery of such report.

		
			 
		

			
	
			
				 6.5
			 To the extent that Vivus disagrees with the calculation of the Royalty made by Actavis under Section 6, Vivus shall have the right, but not the obligation, no more frequently than *** after delivery of the report setting forth such computation, to engage an independent certified public accounting firm of nationally recognized standing which is mutually agreeable to the Parties, such agreement not to be unreasonably withheld, conditioned or delayed (“General Auditor”), to conduct an audit, ***, of applicable books and records of Actavis and its 

		 

		

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	Affiliates solely for the purposes of determining the accuracy of any such Royalty calculation.  The General Auditor shall be given access to and shall be permitted to examine such books and records during normal business hours and at such location where such books and records are regularly maintained, upon *** prior written notice by Vivus to Actavis.  Prior to any such examination taking place, Actavis may require the General Auditor to enter into a commercially reasonable and customary confidentiality agreement with respect to the information to which the General Auditor is given access.  General Auditor  shall not disclose to Vivus or any Third Party any information reasonably labeled by Actavis as being confidential customer information regarding pricing or other competitively sensitive proprietary information. Vivus shall provide, without condition or qualification, Actavis with a copy of the report or other summary of findings prepared by such accountants promptly following its receipt of same.  If as a result of any inaccuracies set forth in such report, the amount(s) paid to Vivus under Section 6.1 was either deficient or excessive, then Actavis or Vivus, as the case may be, shall pay to the other an amount equal to the deficiency or excess within *** of the receipt of the auditor’s report.  In the event the General Auditor determines that the subject Royalty calculation is inaccurate, and such inaccuracy represents more than *** of the calculated amount and is in favor of Vivus, Actavis  shall pay to Vivus the reasonable and documented fees and expenses of the General Auditor in performing such audit.  In the event of any dispute between Vivus and Actavis regarding the findings of any such inspection or audit, the Parties shall initially attempt in good faith to resolve the dispute amicably between themselves, and if the Parties are unable to resolve such dispute within a commercially reasonable period of time, such dispute shall be resolved by an accountant from an internationally recognized independent accounting firm that is mutually agreeable to both of the Parties, and such accountant’s determination shall be binding.

		
			 
		

			
	
			
				 7.
			

			
	
			
			At Risk Launch

			
	
			
				 7.1
			In the event that a Third Party commences sale of a Generic Equivalent in the Territory without a license or other written authorization from Vivus (an “At Risk Launch”) Actavis shall *** by the *** or (ii) the Launch Date (the “Actavis ***”), but only if either (a) *** after such At Risk Launch; or (b) Vivus ***.

			
	
			
				 7.2
			If Vivus ***, then Actavis, upon receipt of written notice from Vivus of such ***.  

			
	
			
				 8.
			

			
	
			
			Quality Assurance

			
	
			
				 8.1
			Actavis represents and warrants to Vivus that all Generic Product Marketed by Actavis will be Manufactured, stored, shipped, handled and Marketed by it and its designees in accordance with GMPs and all applicable Laws, rules and regulations.

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

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				 9.
			

			
	
			
			Confidentiality

			
	
			
				 9.1
			The terms of this License Agreement shall be maintained in strict confidence by the Parties except:  (a) as provided by Section 4 of the Settlement Agreement; (b) that Vivus may disclose such terms as may be necessary in connection with any litigation or other legal proceeding relating to any of the Licensed Patents, provided that such disclosure is made subject to a protective order and/or confidentiality agreement; (c) that either Party may disclose such terms, including but not limited to the Launch Date, if and as required by Law or regulation, including, without limitation, SEC and FDA reporting requirements, or by the rules or regulations of any stock exchange to which such party is subject; (d) that either Party may disclose such terms to the extent necessary to allow attorneys, auditors and advisors, who agree to keep such terms confidential, to render professional services to the Parties; (e) that the Parties may each issue a press release disclosing that the Parties have settled the Action, and that Actavis has received a license to the Licensed Patents, that will permit Actavis to commercially launch its Generic Product on the Launch Date, or earlier in certain circumstances, so long as such press release is approved by the other Party, which approval shall not be unreasonably withheld, conditioned, or delayed; and (f) that either Party may disclose such terms as needed to perform under the Settlement Agreement and this License Agreement.  The Parties acknowledge and agree that, upon its filing with the Court, the Stipulation and Order of Dismissal will be a matter of public record and shall not be subject to any confidentiality restrictions.  The Parties further agree that, upon the filing of the Stipulation and Order of Dismissal with the Court, the fact that the Parties have settled the Action will be a matter of public record and shall not be subject to any confidentiality restrictions, but the terms of such settlement shall be maintained in confidence as provided by this Section 9.1.

			
	
			
				 10.
			

			
	
			
			General Representations

			
	
			
				 10.1
			Each Party represents and warrants to the other that the execution and delivery by such Party of this License Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate action and do not conflict with the terms of any other contract, agreement, arrangement or understanding to which such Party is a party.

			
	
			
				 10.2
			Vivus represents and warrants that it has the right to license the Licensed Patents to Actavis under the terms and conditions set forth in the Settlement Agreement and this License Agreement.

			
	
			
				 10.3
			Vivus represents that, if at any time before or after the Effective Date, Vivus or any of its Affiliates enters into, or has entered into, any agreement with a Third Party granting such Third Party a license, covenant or other authorization under any of the Licensed Patents to use, sell, offer to sell, make, have made, and/or import a Generic Equivalent in the 

		 

		

			 10

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

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	Territory having (i) *** set forth in Section 1.16, (ii) any launch date *** pursuant to Sections 1.16(ii)-(vii) or Sections 5.1(b)-(e), or (iii) *** than the respective periods of time set forth in Sections 2.2(a)-(c),  then Vivus shall notify Actavis within *** in this License Agreement ***.  

			
	
			
				 10.4
			Each Party represents and warrants to the other Party that the grant of the Actavis License pursuant to this License Agreement constitutes the sole consideration being exchanged by or on behalf of the Parties in connection with the Settlement Agreement and no other form of compensation or other accommodation has been made between the Parties.

			
	
			
				 11.
			

			
	
			
			Indemnities; Product Liability; Insurance

			
	
			
				 11.1
			Indemnity by Actavis.  Actavis will indemnify and hold harmless Vivus and its Affiliates and their respective officers, directors, employees and agents from and against any loss, damage, liability or expense in connection with any and all actions, suits, claims, demands or prosecutions that may be brought or instituted against Vivus or such other indemnitees by Third Parties (including, without limitation, governmental authorities) based on or relating to: (i) any breach by Actavis of this License Agreement; and/or (ii) any aspect of the Actavis Generic Product that differs from the NDA Product, including, without limitation, any ***.    The Parties agree that the foregoing indemnities shall ***.

			
	
			
				 11.2
			Indemnity by Vivus.  Vivus will indemnify and hold harmless Actavis and its Affiliates and their respective officers, directors, employees and agents from and against any loss, damage, liability or expense in connection with any and all actions, suits, claims, demands, or prosecutions that may be brought or instituted against Actavis or such other indemnitees by Third Parties (including, without limitation, governmental authorities) based on or relating to any breach by Vivus of this License Agreement.

			
	
			
				 11.3
			Control of Litigation.  A Party seeking indemnification hereunder shall provide prompt written notice to the other Party (and, in any event, ***) of the assertion of any claim against such Party as to which indemnity is to be requested hereunder; provided, however, that any delay or failure to provide such notice shall not relieve the indemnifying party of its indemnity obligations unless, and solely to the extent that, such delay or failure to notify materially prejudices the indemnifying party’s ability to defend such claims.   The indemnifying Party shall have sole control over, and shall assume all expenses with respect to, the defense, settlement, adjustment or compromise of any claim as to which this Section 11 requires it to indemnify the other, provided that:  (a) the other Party may, if it so desires, employ counsel at its own expense to assist in the handling of such claim; and (b) the indemnifying Party shall obtain the prior written approval of the other Party, which shall not be unreasonably withheld, conditioned, or delayed, before entering into any settlement, adjustment or compromise of such claim or ceasing to defend against such claim if, pursuant thereto or as a result thereof: (i) 

		 

		

			 11

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

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	injunctive or other relief would be imposed upon the other Party; or (ii) would result in an admission of wrongdoing by the other Party.

			
	
			
				 11.4
			Limitation on Representations, Warranties and Indemnification.  NEITHER PARTY SHALL BE DEEMED TO MAKE ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, EXCEPT AS SPECIFICALLY SET FORTH HEREIN.  ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY EACH PARTY.  IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER FOR INDIRECT OR OTHER REMOTE MEASURES OF DAMAGES, INCLUDING LOST PROFITS, IN CONNECTION WITH GENERIC PRODUCT SOLD OR DISTRIBUTED BY SUCH PARTY OR OTHERWISE ARISING IN RESPECT OF THIS LICENSE AGREEMENT.

			
	
			
				 11.5
			Certain Rights Unaffected.  The Parties acknowledge that nothing set forth in this License Agreement, including, without limitation, the provisions of Section 11.5 shall be deemed to limit or otherwise affect the availability of any rights or remedies arising at law or equity to which Vivus may be entitled as a result of the sale or distribution in the Territory by Actavis or any Affiliate of any Actavis Generic Product prior to the Launch Date or the Actavis At Risk Period.  The Parties stipulate and agree that any such sale or distribution in the Territory by Actavis or any Affiliate of any Actavis Generic Product prior to the Launch Date or the Actavis At Risk Period would cause immediate irreparable harm to Vivus for which there would be no adequate remedy in damages or otherwise at law.  The parties further stipulate that any such sale or distribution of the Actavis Generic Product by Actavis or any Affiliate prior to the Launch Date or the Actavis At Risk Period will constitute a material breach of this agreement entitling Vivus to injunctive relief against Actavis.  For the avoidance of doubt, internal transfers of the Actavis Generic Product between and among Actavis and its Affiliates and Wholesaler Affiliates shall not be deemed “sale or distribution” of the Actavis Generic Product.

			
	
			
				 12.
			

			
	
			
			Trademarks and Trade Names

			
	
			
				 12.1
			Actavis shall have no right to use any of Vivus’ names or any Trademark and shall have no rights to any other intellectual property or regulatory exclusivities or approvals held by Vivus or its Affiliates other than to the extent of the License provided by Section 2.1 and activities permitted under Section 2.2.  

			
	
			
				 13.
			

			
	
			
			Term and Termination

			
	
			
				 13.1
			Unless earlier terminated in accordance with the terms hereof, the term of this License Agreement (the “Term”) shall extend from the Execution Date until the earlier of:  

		 

		

			 12

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

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	(a) the expiration of the last to expire of the patents included in the Licensed Patents,  including any reissue or reexamination thereof; or (b) the date of a Final Court Decision that all of the asserted claims of the Licensed Patents are invalid and/or unenforceable.  For the avoidance of doubt, as defined in Section 1.19 of this License Agreement, the Licensed Patents includes all patent term extensions and pediatric exclusivities applicable to the NDA Product corresponding to the Licensed Patents, in each case whether granted or allowed prior to or after the Execution Date, and the Term shall run until the last to expire of such extensions and pediatric exclusivities, whenever granted. 

			
	
			
				 13.2
			Each Party may terminate this License Agreement and its obligations hereunder in the event of a material breach by the other Party, which breach remains uncured for *** (in the ***) after written notice is provided to the breaching Party specifying the nature of the breach in reasonable detail and demanding its cure.

			
	
			
				 13.3
			Notwithstanding any other provision of this License Agreement, the Parties acknowledge and agree that the sale of any Actavis Generic Product before the Launch Date or the Actavis At Risk Period by Actavis or any of its Affiliates, distributors, or agents shall constitute an immediate, material breach by Actavis of this License Agreement for which Vivus may elect to terminate this License Agreement without prior notice or an opportunity to cure.

			
	
			
				 13.4
			This License Agreement may be terminated by either Party upon at least *** prior written notice thereof if the other Party makes an assignment for the benefit of creditors, is the subject of proceedings in voluntary or involuntary bankruptcy instituted on behalf of or against such Party, or has a receiver or trustee appointed for all or substantially all of its property, provided that in the case of an involuntary bankruptcy proceeding such right to terminate shall only become effective if the Party consents to the involuntary bankruptcy or such proceeding is not dismissed within *** after the filing thereof.

			
	
			
				 13.5
			Expiration or termination of this License Agreement shall not relieve the Parties of any obligation accruing prior to such expiration or termination.  Any expiration or early termination of this License Agreement shall be without prejudice to the rights of either Party against the other accrued or accruing under this License Agreement prior to termination.

			
	
			
				 14.
			

			
	
			
			Miscellaneous

			
	
			
				 14.1
			Notice.  Any notice required or permitted to be given or sent under this License Agreement shall be hand delivered or sent by express delivery service or certified or registered mail, postage prepaid, to the Parties at the addresses indicated below. 

		

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

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						If to Vivus, to:

					
					
						Vivus, Inc.

					
						900 E. Hamilton Ave.

					
						Suite 550

					
						Campbell, CA 95008

					
						Attn: General Counsel

					
						 

				
	
					
						 

					
					
						 

				
	
					
						with a copy to:

					
					
						Nick Cerrito

					
						Quinn Emanuel Urquhart & Sullivan, LLP

					
						51 Madison Avenue

					
						22nd Floor

					
						New York, New York 10010

				
	
					
						 

					
						 

					
						 

					
					
						 

				
	
					
						If to Actavis, to:

					
					
						Staci L. Julie
SVP and Chief IP Counsel
Teva Pharmaceuticals USA, Inc.
425 Privet Rd.

					
						Hosham, PA 19044

					
						 

				
	
					
						 

					
						 

					
					
						 

					
						 

					
						 

					
						 

				
	
					
						with a copy to:

					
					
						Jay P. Lefkowitz

					
						Kirkland & Ellis LLP

					
						601 Lexington Avenue

					
						New York, NY 10022
Fax: (212) 446-4900

					
						 

				

		
			 
		

		
			Any such notice shall be deemed to have been received on the date actually received.  Either Party may change its address by giving the other Party written notice, delivered in accordance with this Section.
		

			
	
			
				 14.2
			No Assignment.  This License Agreement may not be assigned or transferred to a third party without the express prior written consent of all the other Parties hereto, which consent shall not be unreasonably withheld,  conditioned, or delayed, except to a successor to all or substantially all of the business of the assigning or transferring Party to which 

		 

		

			 14

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

			Confidential

		

		

			 

		

		

			 

		

		

			 

		

	this License Agreement pertains (whether by license or sale of assets, stock, merger, consolidation or otherwise), in which case the Party shall assign this License Agreement to such successor, provided that a Party may in the ordinary course of its business assign its rights under this License Agreement to an Affiliate or may transfer the rights under this License Agreement from one Affiliate to another without the prior consent of the other.  The covenants, rights and obligations of a Party under this License Agreement shall remain binding upon the transferring Party and shall inure to the benefit of and be binding upon any successor or permitted assignee of the Party, any assignee of the Actavis ANDA, and any assignee of any of the Licensed Patents.

			
	
			
				 14.3
			Amendment.  This License Agreement may not be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the Party against which enforcement of such change, waiver, discharge or termination is sought.

			
	
			
				 14.4
			Superiority of Agreements.  The Parties agree that the provisions of this License Agreement, together with any written amendments hereto, supersede and shall prevail over any inconsistent statements or provisions contained in any prior discussions, arrangements or comments between the Parties or in any documents passing between the Parties.  Notwithstanding the foregoing, the Settlement Agreement shall be deemed of equal dignity to this License Agreement and this License Agreement shall be construed together with the Settlement Agreement in a consistent manner as reflecting a single intent and purpose.

			
	
			
				 14.5
			Governing Law.  This License Agreement shall be governed, interpreted and construed in accordance with the laws of the State of New Jersey, without giving effect to choice of law principles.  The Parties irrevocably agree that the United States District Court for the District of New Jersey shall have exclusive jurisdiction to adjudicate any disputes arising out of or in connection with this License Agreement and that, accordingly, any such proceeding arising out of or in connection with this License Agreement shall be brought in the United States District Court for the District of New Jersey.   Notwithstanding the foregoing, if there is any dispute for which the federal district court in the State of New Jersey does not have subject matter jurisdiction, the state courts in New Jersey shall have jurisdiction.  In connection with any dispute arising out of or in connection with this License Agreement each Party hereby expressly consents and submits to the personal jurisdiction of the state and federal courts located in the State of New Jersey.

			
	
			
				 14.6
			Counterparts.  This License Agreement may be executed simultaneously in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

			
	
			
				 14.7
			Headings.  The Headings of this License Agreement are solely for the convenience of reference and shall not affect its interpretation.

		
			

		 

		

			 15

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

			Confidential

		

		

			 

		

		

			 

		

		

			 

		

		

			
	
			
				 14.8
			Negation of Agency.  Nothing contained herein shall be deemed to create any relationship, whether in the nature of agency, joint venture, partnership or otherwise, between Actavis and Vivus.   Neither Party shall be authorized to bind or obligate the other Party in any manner.  

		
			*****
		

		
			

		 

		

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			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

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IN WITNESS WHEREOF, the undersigned have executed this License Agreement as of the date and year first above written.
		

		
			 
		

		
			 
		

		
			VIVUS, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Mark Oki
		

		
			Name: Mark Oki
		

		
			Title: Chief Financial Officer
		

		
			
		

		
			

		 

		

			 17

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

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			IN WITNESS WHEREOF, the undersigned have executed this License Agreement as of the date and year first above written.
		

		
			 
		

		
			 
		

		
			ACTAVIS LABORATORIES FL, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Daniel N. Motto
		

		
			Name: Daniel N. Motto
		

		
			Title: SVP, Global Business Development
		

		
			 
		

		
			 
		

		
			ACTAVIS LABORATORIES FL, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Colman B. Ragan
		

		
			Name: Colman B. Ragan
		

		
			Title: Associate General Counsel, U.S. IP Litigation
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			 
		

		
			

		 

		

			 18

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			         

		

 

		

			Execution Copy

		

		

			Confidential

		

		

			 

		

		

			*** Indicates material that was omitted and for which confidential treatment was requested. all such omitted material was filed separately with the securities and exchange commission pursuant to rule 24B-2 promulgated under the securities exchange act of 1934, as amended.

		

		

			 

		

		

		
			EXHIBIT C
		

		
			Draft Language for FDA Side Letter
		

		
			 
		

		
			Dear [FDA],
		

		
			 
		

		
			Pursuant to 21 C.F.R. §314.94(a)(12)(v), Vivus, Inc. together with Actavis Laboratories FL, Inc. (collectively the “Parties”) write to inform the United States Food and Drug Administration (“FDA”) that the Parties have reached a settlement concerning the following litigation pending in the United States District Court for the District of New Jersey: Vivus, Inc., v. Actavis Laboratories FL, Inc., Civil Action No. 14-3786 (SRC)(CLW) concerning ANDA No. 204982.
		

		
			 
		

		
			The terms of the settlement are confidential.  However, provided that Actavis and Vivus abide by the settlement terms, no patent disputes between the Parties would prevent FDA from granting final approval to that ANDA.
		

		
			 
		

		 

		

			04889-62540/9365151.2 1EX-10.1

 Exhibit 10.1 

INDEMNIFICATION AGREEMENT 

This Indemnification Agreement (“Agreement”) is made as of August 1, 2017, by and between Parsley Energy, Inc., a
Delaware corporation (the “Corporation”), and Karen Hughes (“Indemnitee”). 
 RECITALS: 

WHEREAS, directors, officers and other persons in service to corporations or business enterprises are subjected to expensive and
time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Corporation or business enterprise itself; 

WHEREAS, highly competent persons have become more reluctant to serve as directors, officers or in other capacities unless they are provided
with adequate protection through insurance and adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 

WHEREAS, the Board of Directors of the Corporation (the “Board”) has determined that the increased difficulty in attracting
and retaining such persons is detrimental to the best interests of the Corporation and its stockholders and that the Corporation should act to assure such persons that there will be increased certainty of such protection in the future; 

WHEREAS, (i) the Amended and Restated Bylaws of the Corporation (as may be amended, the “Bylaws”) require
indemnification of the officers and directors of the Corporation, (ii) Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (“DGCL”) and (iii) the Bylaws and
the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Corporation and members of the Board, officers and other persons with respect
to indemnification; 
 WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws and the Amended and Restated Certificate
of Incorporation of the Corporation (as may be amended, the “Certificate of Incorporation”) and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefore, nor to diminish or abrogate any rights of
Indemnitee thereunder; and 
 WHEREAS, (i) Indemnitee does not regard the protection available under the Bylaws and insurance as
adequate in the present circumstances, (ii) Indemnitee may not be willing to serve or continue to serve as a director or officer of the Corporation without adequate protection, (iii) the Corporation desires Indemnitee to serve in such
capacity, and (iv) Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Corporation on the condition that he be so indemnified. 

 AGREEMENT: 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Corporation and Indemnitee do hereby covenant and
agree as follows: 
 Section 1. Definitions. (a) As used in this Agreement: 

“Affiliate” of any specified Person shall mean any other Person controlling, controlled by or under common control with such
specified Person. 
 “Corporate Status” describes the status of a person who is or was a director, officer, employee or
agent of (i) the Corporation or (ii) any other corporation, limited liability company, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Corporation.

 “Disinterested Director” shall mean a director of the Corporation who is not and was not a party to the Proceeding in
respect of which indemnification is sought by Indemnitee. 
 “Enterprise” shall mean the Corporation and any other
corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Corporation as a director, officer, employee, agent or fiduciary. 

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

“Expenses” shall mean all reasonable costs, expenses, fees and charges, including, without limitation, attorneys’ fees,
retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include, without limitation,
(i) expenses incurred in connection with any appeal resulting from, incurred by Indemnitee in connection with, arising out of, or in respect of or relating to, any Proceeding, including, without limitation, the premium, security for, and other
costs relating to any cost bond, supersedes bond, or other appeal bond or its equivalent, (ii) for purposes of Section 12(d) hereof only, expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of
Indemnitee’s rights under this Agreement, by litigation or otherwise, (iii) any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, and
(iv) any interest, assessments or other charges in respect of the foregoing. “Expenses” shall not include “Liabilities.” 

“Indemnity Obligations” shall mean all obligations of the Corporation to Indemnitee under this Agreement, including the
Corporation’s obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement. 

“Independent Counsel” shall mean a law firm of fifty (50) or more attorneys, or a member of a law firm of fifty
(50) or more attorneys, that is experienced in matters of corporation law and neither presently is, nor in the past five (5) years has been, retained to represent: (i) the Corporation 

  
 2 

 
or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification
agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder; provided, however, that the term “Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

“Liabilities” shall mean all claims, liabilities, damages, losses, judgments, orders, fines, penalties and other amounts
payable in connection with, arising out of, or in respect of or relating to any Proceeding, including, without limitation, amounts paid in settlement in any Proceeding and all costs and expenses in complying with any judgment, order or decree issued
or entered in connection with any Proceeding or any settlement agreement, stipulation or consent decree entered into or issued in settlement of any Proceeding. 

“Person” shall mean any individual, corporation, partnership, limited partnership, limited liability company, trust,
governmental agency or body or any other legal entity. 
 “Proceeding” shall mean any threatened, pending or completed
action, claim, suit, arbitration, alternate dispute resolution mechanism, formal or informal hearing, inquiry or investigation, litigation, inquiry, administrative hearing or any other actual, threatened or completed judicial, administrative or
arbitration proceeding (including, without limitation, any such proceeding under the Securities Act of 1933, as amended, or the Exchange Act or any other federal law, state law, statute or regulation), whether brought in the right of the Corporation
or otherwise, and whether of a civil, criminal, administrative or investigative nature, in each case, in which Indemnitee was, is or will be, or is threatened to be, involved as a party, witness or otherwise by reason of the fact that Indemnitee is
or was a director or officer of the Corporation, by reason of any actual or alleged action taken by Indemnitee or of any action on Indemnitee’s part while acting as director or officer of the Corporation, or by reason of the fact that he is or
was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, limited liability company, partnership, joint venture, trust or other enterprise, in each case whether or not serving in such capacity at
the time any liability or expense is incurred for which indemnification, reimbursement, or advancement can be provided under this Agreement. 

(b) For the purpose hereof, references to “fines” shall include any excise tax assessed with respect to any employee benefit plan;
references to “serving at the request of the Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee or agent
with respect to an employee benefit plan, its participants or beneficiaries; and a Person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan
shall be deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Agreement. 

Section 2. Indemnity in Third-Party Proceedings. The Corporation shall indemnify and hold harmless Indemnitee, to the fullest
extent permitted by applicable law, from and against all Liabilities and Expenses suffered or reasonably incurred (and, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee’s behalf in connection with any
Proceeding (other than any Proceeding brought by or in the right of the Corporation to procure a judgment in its favor), or any claim, issue or matter therein. 

  
 3 

 Section 3. Indemnity in Proceedings by or in the Right of the Corporation. The
Corporation shall indemnify and hold harmless Indemnitee, to the fullest extent permitted by applicable law, from and against all Liabilities and Expenses suffered or incurred by Indemnitee or on Indemnitee’s behalf in connection with any
Proceeding brought by or in the right of the Corporation to procure a judgment in its favor, or any claim, issue or matter therein. No indemnification for Liabilities and Expenses shall be made under this Section 3 in respect of any claim,
issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Corporation, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine
upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to such indemnification. 

Section 4. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of
this Agreement, and without limiting the rights of Indemnitee under any other provision hereof, including any rights to indemnification pursuant to Sections 2 or 3 hereof, to the fullest extent permitted by applicable law, to the extent that
Indemnitee is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by
Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved Proceeding, claim, issue or matter. For purposes of this Section 4 and without limitation, the termination of any Proceeding or claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

Section 5. Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the fullest extent
permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness or otherwise a participant in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all
Expenses suffered or incurred (or, in the case of retainers, reasonably expected to be incurred) by Indemnitee or on Indemnitee’s behalf in connection therewith. 

Section 6. Additional Indemnification. Notwithstanding any limitation in Sections 2, 3 or 4 hereof, the Corporation shall
indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Corporation to procure a judgment in its favor)
against all Liabilities and Expenses suffered or reasonably incurred by Indemnitee in connection with such Proceeding, including but not limited to: 

(a) the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the
corresponding provision of any amendment to or replacement of the DGCL; and 

  
 4 

 (b) the fullest extent authorized or permitted by any amendments to or replacements of the DGCL
adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors. 

Section 7. Exclusions. Notwithstanding any provision in this Agreement, the Corporation shall not be obligated under this
Agreement to indemnify or hold harmless Indemnitee: 
 (a) for which payment has actually been made to or on behalf of Indemnitee under any
insurance policy obtained by the Corporation except with respect to any excess beyond the amount paid under such insurance policy; 
 (b)
for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common
law; 
 (c) except as provided in Section 12(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding)
initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Corporation or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any
part of any Proceeding) prior to its initiation or (ii) the Corporation provides the indemnification, in its sole discretion, pursuant to the powers vested in the Corporation under applicable law; or 

(d) if a final decision by a court having jurisdiction in the matter shall determine that such indemnification is not lawful. 

Section 8. Advancement. In accordance with the pre-existing requirements of the Bylaws, and notwithstanding any provision of this
Agreement to the contrary, the Corporation shall advance, to the extent not prohibited by applicable law, the Expenses reasonably incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty
(30) days after the receipt by the Corporation of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall
be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all Expenses
reasonably incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Corporation to support the advances claimed. Indemnitee shall qualify for advances upon the execution
and delivery to the Corporation of this Agreement, which shall constitute an undertaking providing that Indemnitee undertakes to repay the amounts advanced to the extent that it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Corporation. This Section 8 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 7 hereof. 

Section 9. Procedure for Notification and Defense of Claim. 

(a) Indemnitee shall promptly notify the Corporation in writing of any Proceeding with respect to which Indemnitee intends to seek
indemnification or advancement hereunder following the receipt by Indemnitee of written notice thereof. The written notification 

  
 5 

 
to the Corporation shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to
the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification following the final disposition of such Proceeding. Any delay or failure by Indemnitee to notify the Corporation hereunder will not relieve the Corporation from any liability which it may have to Indemnitee hereunder or otherwise
than under this Agreement, and any delay or failure in so notifying the Corporation shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Corporation shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has requested indemnification. 
 (b) In the event Indemnitee is entitled to
indemnification and/or advancement with respect to any Proceeding, Indemnitee may, at Indemnitee’s option, (i) retain counsel selected by Indemnitee and approved by the Corporation to defend Indemnitee in such Proceeding, at the sole
expense of the Corporation (which approval shall not be unreasonably withheld, conditioned or delayed), or (ii) have the Corporation assume the defense of Indemnitee in such Proceeding, in which case the Corporation shall assume the defense of
such Proceeding with counsel selected by the Corporation and approved by Indemnitee (which approval shall not be unreasonably withheld, conditioned or delayed) within ten (10) days of the Corporation’s receipt of written notice of
Indemnitee’s election to cause the Corporation to do so. If the Corporation is required to assume the defense of any such Proceeding, it shall engage legal counsel for such defense, and the Corporation shall be solely responsible for all fees
and expenses of such legal counsel and otherwise of such defense. Such legal counsel may represent both Indemnitee and the Corporation (and any other party or parties entitled to be indemnified by the Corporation with respect to such matter) unless,
in the reasonable opinion of legal counsel to Indemnitee, there is a conflict of interest between Indemnitee and the Corporation (or any other such party or parties) or there are legal defenses available to Indemnitee that are not available to the
Corporation (or any such other party or parties). Notwithstanding either party’s assumption of responsibility for defense of a Proceeding, each party shall have the right to engage separate counsel at its own expense. The party having
responsibility for defense of a Proceeding shall provide the other party and its counsel with all copies of pleadings and material correspondence relating to the Proceeding. Indemnitee and the Corporation shall reasonably cooperate in the defense of
any Proceeding with respect to which indemnification is sought hereunder, regardless of whether the Corporation or Indemnitee assumes the defense thereof. Indemnitee may not settle or compromise any Proceeding without the prior written consent of
the Corporation, which consent shall not be unreasonably withheld, conditioned or delayed. The Corporation may not settle or compromise any Proceeding without the prior written consent of Indemnitee. 

Section 10. Procedure Upon Application for Indemnification. 

(a) Upon written request by Indemnitee for indemnification pursuant to Section 9(a) hereof, if any determination by the Corporation is
required by applicable law with respect to Indemnitee’s entitlement thereto, such determination shall be made (i) if Indemnitee shall request such determination be made by Independent Counsel, by Independent Counsel, and (ii) in all
other circumstances, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote

  
 6 

 
of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent
Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee, or (D) if so directed by the Board, by the stockholders of the Corporation; and, if it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination. Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Corporation (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Corporation hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Corporation will not deny any written request for indemnification hereunder made in good faith by Indemnitee unless a
determination as to Indemnitee’s entitlement to such indemnification described in this Section 10(a) has been made. The Corporation agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Liabilities and Expenses arising out of or relating to this Agreement or its engagement pursuant hereto. 

(b) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a)
hereof, (i) the Independent Counsel shall be selected by the Corporation within ten (10) days of the Submission Date (the cost of such Independent Counsel to be paid by the Corporation), (ii) the Corporation shall give written notice
to Indemnitee advising it of the identity of the Independent Counsel so selected and (iii) Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Corporation Indemnitee’s
written objection to such selection. Such objection by Indemnitee may be asserted only on the ground that the Independent Counsel selected does not meet the requirements of “Independent Counsel” as defined in this Agreement. If such
written objection is made and substantiated, the Independent Counsel selected shall not serve as Independent Counsel unless and until Indemnitee withdraws the objection or a court has determined that such objection is without merit. Absent a timely
objection, the person so selected shall act as Independent Counsel. If no Independent Counsel shall have been selected and not objected to before the later of (i) thirty (30) days after the later of submission by Indemnitee of a written
request for indemnification pursuant to Section 10(a) hereof (the “Submission Date”) and (ii) ten (10) days after the final disposition of the Proceeding, each of the Corporation and Indemnitee shall select a law firm
or member of a law firm meeting the qualifications to serve as Independent Counsel, and such law firms or members of law firms shall select the Independent Counsel. Upon the due commencement of any judicial proceeding or arbitration pursuant to
Section 12(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 

Section 11. Presumptions and Effect of Certain Proceedings. 

(a) In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such
determination shall, to the fullest extent not 

  
 7 

 
prohibited by applicable law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 9(a) of this Agreement, and the Corporation shall, to the fullest extent not prohibited by applicable law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any
determination contrary to that presumption. Neither the failure of the Corporation (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that
indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Corporation (including by its directors or independent legal counsel) that Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 

(b) Subject to Section 12(e) hereof, if the person, persons or entity empowered or selected under Section 10 of this Agreement to
determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Corporation of the request therefore, the requisite determination of entitlement to indemnification
shall, to the fullest extent not prohibited by applicable law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent a prohibition of such indemnification under applicable law; provided, however,
that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if (i) the determination is to be made by Independent Counsel and Indemnitee objects to the Corporation’s selection of
Independent Counsel and (ii) the Independent Counsel ultimately selected requires such additional time for the obtaining or evaluating of documentation or information relating thereto; provided further, however, that such 60-day period
may also be extended for a reasonable time, not to exceed an additional sixty (60) days, if the determination of entitlement to indemnification is to be made by the stockholders of the Corporation. 

(c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea
of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner
which he reasonably believed to be in or not opposed to the best interests of the Corporation or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful. 

(d) Reliance as Safe Harbor. For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if
Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of
legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise. The
provisions of this Section 11(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. 

  
 8 

 (e) Actions of Others. The knowledge or actions, or failure to act, of any director,
officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 

Section 12. Remedies of Indemnitee. 

(a) Subject to Section 12(e) hereof, in the event that (i) a determination is made pursuant to Section 10 of this Agreement
that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made
pursuant to Section 10(a) of this Agreement within ninety (90) days after receipt by the Corporation of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 4 or 5 or the last sentence of
Section 10(a) of this Agreement within ten (10) days after receipt by the Corporation of a written request therefor, (v) payment of indemnification pursuant to Sections 2, 3 or 6 of this Agreement is not made within ten (10) days
after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Corporation or any other Person takes or threatens to take any action to declare this Agreement void or unenforceable, or
institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of
Indemnitee’s entitlement to such indemnification or advancement. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the
American Arbitration Association. The Corporation shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 

(b) In the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled to
indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse
determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12 the Corporation shall have the burden of proving Indemnitee is not entitled to indemnification or advancement, as the case may be. 

(c) If a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification,
the Corporation shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent a prohibition of such indemnification under applicable law. 

(d) The Corporation shall, to the fullest extent not prohibited by applicable law, be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Corporation is bound by
all the provisions of this Agreement. It is the intent of the Corporation that Indemnitee not be required to incur Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or
otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to Indemnitee hereunder. The Corporation shall indemnify Indemnitee against any and all such Expenses and, if

  
 9 

 
requested by Indemnitee, shall (within ten (10) days after receipt by the Corporation of a written request therefore) advance, to the extent not prohibited by applicable law, such Expenses
to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement from the Corporation under this Agreement or under any directors’ and officers’ liability insurance
policies maintained by the Corporation, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement or insurance recovery, as the case may be. 

(e) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement
shall be required to be made prior to the final disposition of the Proceeding; provided that, in absence of any such determination with respect to such Proceeding, the Corporation shall advance Expenses with respect to such Proceeding. 

Section 13. Non-Exclusivity; Survival of Rights; Insurance; Subrogation. 

(a) The rights of indemnification and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights
to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or
repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement than would be afforded currently under the Bylaws or this Agreement, it is the intent of the parties hereto
that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other right or remedy. 
 (b) The Corporation hereby acknowledges that Indemnitee may have certain rights to
indemnification, advancement and insurance provided by one or more Persons with whom or which Indemnitee may be associated. The Corporation hereby acknowledges and agrees that (i) the Corporation shall be the indemnitor of first resort with
respect to any Proceeding, Expense, Liability or matter that is the subject of the Indemnity Obligations, (ii) the Corporation shall be primarily liable for all Indemnity Obligations and any indemnification afforded to Indemnitee in respect of
any Proceeding, Expense, Liability or matter that is the subject of Indemnity Obligations, whether created by applicable law, organizational or constituent documents, contract (including this Agreement) or otherwise, (iii) any obligation of any
other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee or advance Expenses or Liabilities to Indemnitee in respect of any Proceeding shall be secondary to the obligations of the Corporation hereunder, (iv) the
Corporation shall be required to indemnify Indemnitee and advance Expenses or Liabilities to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which
Indemnitee may be associated or insurer of any such Person and (v) the Corporation irrevocably waives, relinquishes 

  
 10 

 
and releases any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation or any other recovery of any kind in respect of amounts paid by the
Corporation hereunder. In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss which is the subject of any Indemnity Obligation owed by the Corporation or payable
under any Corporation insurance policy, the payor shall have a right of subrogation against the Corporation or its insurer or insurers for all amounts so paid which would otherwise be payable by the Corporation or its insurer or insurers under this
Agreement. In no event will payment of an Indemnity Obligation by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Corporation hereunder or shift primary liability for any Indemnity
Obligation to any other Person with whom or which Indemnitee may be associated. Any indemnification, insurance or advancement provided by any other Person with whom or which Indemnitee may be associated with respect to any Liability arising as a
result of Indemnitee’s Corporate Status or capacity as an officer or director of any Person is specifically in excess over any Indemnity Obligation of the Corporation or any collectible insurance (including but not limited to any malpractice
insurance or professional errors and omissions insurance) provided by the Corporation under this Agreement. 
 (c) To the extent that the
Corporation maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Corporation or of any other Enterprise, Indemnitee shall be covered by such policy or policies in accordance
with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies and such policies shall provide for and recognize that the insurance policies are primary to any
rights to indemnification, advancement or insurance proceeds to which Indemnitee may be entitled from one or more Persons with whom or which Indemnitee may be associated to the same extent as the Corporation’s indemnification and advancement
obligations set forth in this Agreement. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Corporation has director and officer liability insurance in effect, the Corporation shall give prompt notice of the
commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Corporation shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee,
all amounts payable as a result of such Proceeding in accordance with the terms of such policies. 
 (d) In the event of any payment under
this Agreement, the Corporation shall not be subrogated to the rights of recovery of Indemnitee, including rights of indemnification provided to Indemnitee from any other person or entity with whom Indemnitee may be associated; provided,
however, that the Corporation shall be subrogated to the extent of any such payment of all rights of recovery of Indemnitee under insurance policies of the Corporation or any of its subsidiaries. 

(e) The indemnification and contribution provided for in this Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of Indemnitee. 
 Section 14. Duration of Agreement; Not Employment Contract. This Agreement shall continue
until and terminate upon the latest of: (i) ten (10) years after the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Corporation or any other Enterprise and (ii) the date of final
termination of any Proceeding then pending in respect of which 

  
 11 

 
Indemnitee is granted rights of indemnification or advancement hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto. This
Agreement shall be binding upon the Corporation and its successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. This Agreement shall not be deemed an employment contract between
the Corporation (or any of its subsidiaries or any other Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with the Corporation (or any of its subsidiaries or any other Enterprise), if any, is at
will, and Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Corporation (or any of its subsidiaries or any other
Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director of the Corporation, by the Certificate of Incorporation, the Bylaws or the DGCL. 

Section 15. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable
for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by applicable law; (b) such provision or
provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby. 
 Section 16. Enforcement. 

(a) The Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in
order to induce Indemnitee to serve as a director, officer, employee or agent of the Corporation, and the Corporation acknowledges that Indemnitee is relying upon this Agreement in serving as a director, officer, employee or agent of the
Corporation. 
 (b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the
Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefore, nor diminish or abrogate any rights of Indemnitee thereunder. 

Section 17. Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed
in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed to be or shall constitute a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver. 

  
 12 

 Section 18. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or
registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been
directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received: 
 (a) If
to Indemnitee, at such address as Indemnitee shall provide to the Corporation. 
 (b) If to the Corporation to: 

Parsley Energy, Inc. 
 303
Colorado Street, Suite 3000 
 Austin, Texas 78701 

Attention: Board of Directors 
 or to any other
address as may have been furnished to Indemnitee by the Corporation. 
 Section 19. Contribution. To the fullest extent
permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Corporation, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by
Indemnitee, whether for Liabilities or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect (i) the relative benefits received by the Corporation and Indemnitee as a result of the event(s) and transaction(s) giving cause to such Proceeding; and (ii) the relative fault of the Corporation (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s) and transaction(s). 
 Section 20. Applicable Law
and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except
with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Corporation and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in
connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other
country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such
action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 

  
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 Section 21. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to
evidence the existence of this Agreement. 
 Section 22. Miscellaneous. Use of the masculine pronoun shall be deemed to include
usage of the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 

[Signatures Follow] 

  
 14 

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

							
	PARSLEY ENERGY, INC.	 		 	INDEMNITEE
				
	By:	 	/s/ Colin Roberts	 		 	/s/ Karen Hughes
	Name:	 	Colin Roberts	 		 	Name:  Karen Hughes
	Title:	 	Executive Vice President—General Counsel	 		 	Title:  Director

  
 Signature Page to
Indemnification Agreement

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