Document:

Rifaximin Manufacturing and Supply Agreement with Lupin Ltd.

 Exhibit 10.68 
 *Portions of this document marked [*] are requested to be treated confidentially. 
 EXECUTION COPY 
 RIFAXIMIN 
 MANUFACTURING AND SUPPLY AGREEMENT 
 between 
 SALIX PHARMACEUTICALS, INC. 
 and 
 LUPIN LTD. 
 Dated as of September 30, 2009 

 TABLE OF CONTENTS 
  

							
	ARTICLE I.	 	DEFINITIONS	  	1
			
	ARTICLE II.	 	MANUFACTURING AND SUPPLY	  	6
	 2.1
	 	Purchase and Supply Obligations	  	6
	 2.2
	 	Forecasting, Order and Delivery of Compound	  	7
	 2.3
	 	Materials	  	8
	 2.4
	 	Invoice and Payment	  	9
	 2.5
	 	Price	  	9
	 2.6
	 	Warranty	  	9
	 2.7
	 	Failure or Inability to Supply Compound	  	10
	 2.8
	 	Inventory Warehousing	  	12
	 2.9
	 	Current Capacity and Scale-Up Plans	  	12
	 2.10
	 	Costs and Expenses	  	12
	 2.11
	 	Amendment of Specifications	  	12
	 2.12
	 	Quality Agreement	  	13
	 2.13
	 	Quality Control Analyses and Release	  	14
	 2.14
	 	Maintenance of Facility	  	14
	 2.15
	 	Regulatory Cooperation of Lupin	  	14
	 2.16
	 	Inspection by Salix	  	15
	 2.17
	 	Notification of Regulatory Inspections; Communications	  	15
	 2.18
	 	Adverse Events	  	15
	 2.19
	 	Recalls and Withdrawals	  	16
	 2.20
	 	Compliance with Applicable Laws	  	16
	 2.21
	 	Retention of Manufacturing Records and Samples	  	16
	 2.22
	 	Exclusive Supply Arrangement in Respect of the Territory	  	17
	 2.23
	 	Shortages	  	17
	 2.24
	 	Second Source	  	17
			
	ARTICLE III.	 	INTELLECTUAL PROPERTY	  	17
	 3.1
	 	Ownership of Inventions	  	17
	 3.2
	 	Prosecution of Invention Patents	  	18
	 3.3
	 	United States Law	  	18
	 3.4
	 	Corporate Names	  	19
			
	ARTICLE IV.	 	REPRESENTATIONS AND WARRANTIES; COVENANTS	  	19
	 4.1
	 	Representations and Warranties of Each Party	  	19
	 4.2
	 	Disclaimer of Other Warranties	  	20
			
	ARTICLE V.	 	CONFIDENTIALITY	  	20
	 5.1
	 	Confidential Information	  	20
	 5.2
	 	Exceptions to Confidentiality	  	20
	 5.3
	 	Disclosure	  	21
	 5.4
	 	Notification	  	21
	 5.5
	 	Remedies	  	21

  

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	 5.6
	 	Use of Names	  	22
	 5.7
	 	Press Releases	  	22
			
	 ARTICLE VI.
	 	TERM AND TERMINATION	  	22
	 6.1
	 	Term	  	22
	 6.2
	 	Termination	  	22
	 6.3
	 	Effect of Expiration or Termination	  	23
			
	ARTICLE VII.	 	INDEMNIFICATION	  	24
	 7.1
	 	Lupin Indemnification	  	24
	 7.2
	 	Salix Indemnification	  	25
	 7.3
	 	Indemnification Procedure	  	25
	 7.4
	 	Insurance	  	27
	 7.5
	 	Limitation on Damages	  	27
			
	ARTICLE VIII.	 	MISCELLANEOUS	  	28
	 8.1
	 	Notices	  	28
	 8.2
	 	Force Majeure	  	29
	 8.3
	 	Entire Agreement; Amendment	  	29
	 8.4
	 	Further Assurances	  	29
	 8.5
	 	Successors and Assigns	  	30
	 8.6
	 	Dispute Resolution	  	30
	 8.7
	 	Governing Law; Jurisdiction; Venue; Service	  	30
	 8.8
	 	Audit; Late Payments	  	31
	 8.9
	 	Third Party Beneficiaries	  	32
	 8.10
	 	Export Control	  	32
	 8.11
	 	Assignment	  	32
	 8.12
	 	Waiver	  	33
	 8.13
	 	Severability	  	33
	 8.14
	 	Independent Contractors	  	33
	 8.15
	 	Construction	  	33
	 8.16
	 	Remedies	  	34
	 8.17
	 	Counterparts; Facsimile Execution	  	34
	 8.18
	 	English Language	  	34
		
	Schedules and Exhibits	  	
			
	Schedule 2.9(a)	 	Current Capacity	  	

  

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 This RIFAXIMIN MANUFACTURING AND SUPPLY AGREEMENT (this
“Agreement”), dated as of September 30, 2009 (the “Effective Date”), is made by and between Salix Pharmaceuticals, Inc., a California corporation (“Salix”), and Lupin Ltd., a corporation
organized under the laws of India (“Lupin”). Salix and Lupin are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” 
 RECITALS 
 WHEREAS, subject to the terms and
conditions set forth in this Agreement, Salix wishes to have Lupin manufacture and supply the Compound (as defined below) for Salix, and Lupin wishes to manufacture and supply the Compound for Salix; 
 NOW, THEREFORE, in consideration of the foregoing premises, the mutual promises and covenants of the Parties contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows: 
 ARTICLE I. DEFINITIONS 
 As used herein, the following
terms shall have the following meanings: 
 1.1 “Adverse Event” means (a) any finding from tests in
laboratory animals or in vitro that suggests a significant risk for human subjects including reports of mutagenicity, teratogenicity or carcinogenicity, (b) any undesirable, untoward or noxious event or experience associated with the clinical,
commercial or other use, or occurring following application of a Product to humans, whether expected and whether considered related to or caused by such Product, including such an event or experience as occurs in the course of the use of such
Product in professional practice, in a clinical trial, whether accidental or intentional, from abuse, from withdrawal or from a failure of expected therapeutic action of such Product, and (c) those events or experiences that are required to be
reported to the Regulatory Authorities under corresponding Applicable Law. 
 1.2 “Affiliate” of a Person means
any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such first Person. “Control” and, with correlative meanings, the terms “controlled
by” and “under common control with”, means to possess the power to direct the management or policies of a Person, whether through ownership of voting securities or by contract or otherwise. 
 1.3 “Agreement” has the meaning set forth in the preamble hereto. 
 1.4 “Applicable Law” means applicable laws, rules and regulations, including any rules, regulations, guidelines or other
requirements of the Regulatory Authorities, that may be in effect from time to time. 
 1.5 [*] 
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 1.6 “Calendar Quarter” means each period of three consecutive months
commencing on January 1, April 1, July 1, and October 1. 
 1.7 “Calendar Year” means
each successive period of twelve (12) consecutive calendar months commencing on January 1 and ending on December 31, except that the first Calendar Year of the Term shall commence on the Effective Date and end on December 31,
2009, and the last Calendar Year of the Term shall commence on January 1 of the year in which the Term ends and end on the last day of the Term. 
 1.8 “Capacity” means the capacity of Lupin’s plant, equipment and process to conduct the Manufacturing process and, having due regard for Lupin’s own requirements of Compound
and for any commitments that it may have made to supply Compound to other Persons, to supply Compound to Salix in accordance with the terms hereof. 
 1.9 “Certificate of Analysis” has the meaning set forth in the Quality Agreement. 
 1.10 “Certificate of Compliance” has the meaning set forth in the Quality Agreement. 
 1.11 “CMC Data” means the chemistry, manufacturing and controls data required by Applicable Law to be included in a New Drug Application (as defined in the FFDCA and the regulations
promulgated thereunder) for a Product or in any other Marketing Authorization outside the United States. 
 1.12
“Compound” means the active pharmaceutical entity rifaximin, which is [*], and all complexes, mixtures and other combinations, prodrugs, metabolites, enantiomers, polymorphs, salt forms, racemates, and isomers thereof, or any
derivatives of any of the foregoing. 
 1.13 “Compound Inventions” has the meaning set forth in
Section 3.1. 
 1.14 “Confidential Information” means any and all information or material that, at any
time before or after the Effective Date, has been or is provided or communicated to the Receiving Party by or on behalf of the Disclosing Party (including by a third party) pursuant to this Agreement or in connection with the transactions
contemplated hereby or any discussions or negotiations with respect thereto; any data, ideas, concepts or techniques contained therein; and any modifications thereof or derivations therefrom. Confidential Information may be disclosed either orally,
visually, electronically, in writing, by delivery of materials containing Confidential Information or in any other form now known or hereafter invented. 
 1.15 “Corporate Names” means such Trademarks and corporate names and logos Controlled (as defined in the License Agreement) by Lupin as Lupin may designate in writing from time to time,
together with any variations and derivatives thereof. 
 1.16 “Courts” has the meaning set forth in
Section 8.7(b). 
  
 * Confidential treatment requested;
certain information omitted and filed separately with the SEC. 
  

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 1.17 “Covered Quarter” has the meaning set forth in Section 2.1(b).

 1.18 “Current Capacity” has the meaning set forth in Section 2.9(a). 
 1.19 “Disclosing Party” means the Party disclosing Confidential Information. 
 1.20 “Dispute” has the meaning set forth in Section 8.6. 
 1.21 “Drug Master File” means any drug master file filed with the FDA with respect to the Compound. 
 1.22 “Effective Date” has the meaning set forth in the preamble hereto. 
 1.23 “Excluded Lists” means the Department of Health and Human Service’s List of Excluded Individuals/Entities and the
General Services Administration’s Lists of Parties Excluded from Federal Procurement and Non-Procurement Programs. 
 1.24
“Exploit” means to make, have made, import, use, sell, offer for sale or otherwise dispose of a compound, product or process, including all discovery, research, development, commercialization, registration, modification,
enhancement, improvement, Manufacture, storage, formulation, optimization, exportation, transportation, distribution, promotion and marketing of such compound, product or process. 
 1.25 “Facility” means the Manufacturing facility of Lupin located at [*]. 
 1.26 “FDA” means the United States Food and Drug Administration and any successor agency thereto. 
 1.27 “FFDCA” has the meaning set forth in Section 2.6. 
 1.28 “Firm Forecast” has the meaning set forth in Section 2.2(b). 
 1.29 “Forecast” has the meaning set forth in Section 2.2(b). 
 1.30 “GMP” means the current good manufacturing practices applicable from time to time to the Manufacturing of Compound
pursuant to Applicable Law. 
 1.31 “Indemnification Claim Notice” has the meaning set forth in
Section 7.3(a). 
 1.32 “Indemnified Party” has the meaning set forth in Section 7.3(a). 

1.33 “Indemnifying Party” has the meaning set forth in Section 7.3(a). 
 1.34 “Informational Forecast” has the meaning set forth in Section 2.2(a). 
  
 * Confidential treatment requested; certain information omitted and filed
separately with the SEC. 
  

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 1.35 “Invention” means any discovery, improvement, process, formula, data,
invention, know-how, trade secret, procedure, device, or other intellectual property, whether or not patentable, including any enhancement in the manufacture, formulation, ingredients, preparation, presentation, means of delivery, dosage or
packaging of a compound or product or any discovery or development of a new indication for a compound or product. 
 1.36
“Joint Invention” means any Invention that is conceived, discovered, developed or otherwise made jointly by or on behalf of the Parties as a result of or in connection with this Agreement. 
 1.37 “Joint Invention Patent” has the meaning set forth in Section 3.2. 
 1.38 “Launch Date” means the first date on which Salix anticipates requiring commercial supply of Compound hereunder.

 1.39 “License Agreement” means that certain Development, Commercialization and License Agreement between the
Parties of even date herewith. 
 1.40 “Losses” has the meaning set forth in Section 7.1. 
 1.41 “Lupin” has the meaning set forth in the preamble hereto. 
 1.42 “Lupin Indemnified Parties” has the meaning set forth in Section 7.2. 
 1.43 “Manufacture” and “Manufacturing” means the manufacturing, processing, formulating, packaging,
labeling, holding and quality control testing of a pharmaceutical product or compound. 
 1.44 “Marketing
Authorization” means an approved New Drug Application as defined in the FFDCA and the regulations promulgated thereunder, or any corresponding foreign application, registration or certification, necessary or reasonably useful to market any
Product in a country or regulatory jurisdiction in the Territory other than the United States, including applicable pricing and reimbursement approvals. 
 1.45 “Material(s)” means all ingredients, raw materials, packaging and labeling components, and all other supplies of any kind, required or used in connection with the Manufacturing of
the Compound. 
 1.46 “Other Product Entry” means the commercial sale or distribution by any Person other than
Salix or an Affiliate thereof of an unauthorized generic version of any Product in the Territory (which generic version is not subject to any restraining order or other injunction which would prevent it from being sold or distributed in the
Territory). 
 1.47 “Party” and “Parties” has the meaning set forth in the preamble hereto.

 1.48 “Person” means an individual, sole proprietorship, partnership, limited partnership, limited liability
partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or other similar entity or

  

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organization, including a government or political subdivision, department or agency of a government. 
 1.49 “Policies” has the meaning set forth in Section 7.4(a). 
 1.50 “Products” means (a) Salix’s XIFAXAN® product as currently marketed by Salix in the Territory, (b) any new immediate release dosage forms thereof that may receive Regulatory Approval in respect of
the Territory during the Term and (c) any generic product in respect of any of the foregoing that may be authorized by Salix during the Term. 
 1.51 “Purchase Order” means a written purchase order that sets forth, with respect to the period covered thereby, (a) the quantities of Compound to be delivered by Lupin to Salix and
(b) the required delivery dates therefor. 
 1.52 “Purchase Price” has the meaning set forth in
Section 2.5(a). 
 1.53 “Quality Agreement” means the quality assurance agreement to be agreed between the
Parties relating to the Manufacture of the Compound in accordance with Section 2.12, as such agreement shall be amended from time to time. 
 1.54 “Receiving Party” means the Party receiving Confidential Information. 
 1.55 “Recipients” has the meaning set forth in Section 5.1. 
 1.56 “Regulatory Approval” means, with respect to any particular country or other jurisdiction, any and all approvals, licenses, registrations or authorizations of any Regulatory Authority necessary for the Exploitation of
a Product in such country or jurisdiction, including, where applicable, (a) approval of a Product in such country or jurisdiction, including any Marketing Authorization and supplements and amendments thereto; (b) pre- and post-approval
marketing authorizations (including any prerequisite Manufacturing approval or authorization related thereto); (c) labeling approval; and (d) technical, medical and scientific licenses. 
 1.57 “Regulatory Authority” means any applicable supra-national, federal, national, regional, state, provincial or local
regulatory agencies, departments, bureaus, commissions, councils or other government entities regulating or otherwise exercising authority with respect to the Exploitation of the Compound or a Product in any country or other jurisdiction.

 1.58 “Regulatory Documentation” means (a) submissions to any Regulatory Authority, including
investigational new drug applications, New Drug Applications (as defined in the FFDCA and the regulations promulgated thereunder), Drug Master Files, correspondence with regulatory agencies (registrations and licenses, regulatory drug lists,
advertising and promotion documents), period safety update reports, adverse event files, complaint files and manufacturing records and, if applicable, any updates or supplements to any of the foregoing and (b) any minutes or contact logs with
respect to any telephone conferences or in-person meetings conducted with any Regulatory Authority relating to the subject matter described in clause (a) of this sentence. 
 1.59 “Salix” has the meaning set forth in the preamble hereto. 
  

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 1.60 “Salix Indemnified Parties” has the meaning set forth in
Section 7.1. 
 1.61 “Salix Information” means all technical, scientific and other know-how and
information, trade secrets, knowledge, technology, means, methods, processes, practices, formulae, instructions, skills, techniques, procedures, technical assistance, designs, assembly procedures, specifications, assays, test methods, analytical
methods, and other material or information owned or controlled by Salix and its Affiliates and necessary or useful in the Manufacture of the Compound (including information received from a third party). 
 1.62 “Salix Purchase Commitment” in respect of a given Calendar Quarter means fifty percent (50%) of Salix’s
requirements for Compound in such Calendar Quarter for the manufacture of Products for sale in the Territory. 
 1.63
“Scale-Up Plans” has the meaning set forth in Section 2.9(c). 
 1.64 “Specifications”
means the specifications for the Compound to be reasonably agreed upon between the Parties, as the same may be amended from time to time in accordance with the terms hereof. 
 1.65 “Term” has the meaning set forth in Section 6.1. 
 1.66 “Territory” means the United States. 
 1.67 “Testing Laboratory” has the meaning set forth in Section 2.7(e). 
 1.68 “Third Party Claim” has the meaning set forth in Section 7.3(b). 
 1.69 “Trademark” shall include any word, name, symbol, color, designation or device or any combination thereof, including any trademark, trade dress, brand mark, service mark, trade name,
brand name, logo or business symbol, whether or not registered. 
 1.70 “United States” means the United States
of America, its territories and possessions (including Puerto Rico). 
 ARTICLE II. MANUFACTURING AND SUPPLY 

2.1 Purchase and Supply Obligations. 
 (a) Subject to the terms and conditions hereof, Lupin shall Manufacture and supply to Salix such quantities of Compound as Salix may order in accordance with the terms hereof from time to time during the
Term. 
 (b) Salix hereby covenants and agrees that, during the Term, it shall purchase from Lupin the Salix
Purchase Commitment. Salix shall provide, within thirty (30) days of the end of each Calendar Quarter, a certification that it has purchased its Salix Purchase Commitment for such Calendar Quarter, along with sufficient backup documentation of
such fact. Lupin shall have the right to audit Salix’s records to confirm that Salix has purchased the Salix Purchase Commitment, pursuant to Section 8.8. In the

  

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event that as of the end of any Calendar Quarter during the Term commencing on or after January 1, 2010 (a “Covered Quarter”), Salix’s purchases of Compound pursuant to this
Agreement during such Calendar Quarter are less than the Salix Purchase Commitment in such Calendar Quarter, then Salix shall, within thirty (30) days following the end of such Calendar Quarter, pay to Lupin an amount equal to the product
obtained by multiplying (i) the difference between the Salix Purchase Commitment and Salix’s purchases of Compound pursuant to this Agreement during such Calendar Quarter by (ii) the Purchase Price. With respect to the Calendar
Quarter ending December 31, 2009, Salix shall, within thirty (30) days following the end of such Calendar Quarter, pay to Lupin an amount equal to (a)(i) Salix’s requirements for Compound in 2009 for the manufacture of Products for
sale in the Territory divided by (ii) eight (8) multiplied by (b) the Purchase Price; provided, that Salix may, at its election, make such payment prior to December 31, 2009 based on its reasonable estimate of its
requirements for 2009, so long as within thirty (30) days following the end of such Calendar Quarter it makes Lupin whole for any difference between such estimated requirements and Salix’s actual requirements for 2009. 
 (c) Lupin shall have the right, pursuant to and in accordance with Section 8.8, to audit Salix’s records to confirm
that Salix has made all payments required to be made by it by the provisions of clause (b). 
 (d)
Notwithstanding anything in this Section 2.1 to the contrary, during the [*] ([*])[*] prior to the Launch Date, Salix may at any time submit Purchase Orders for Compound solely for the purpose of qualifying then-existing
Salix Products and Lupin shall use its commercially reasonable efforts to fulfill such orders. Any such Purchase Orders shall be subject to the pricing set forth in Section 2.5 but shall not be subject to the forecasting requirements set forth
in Section 2.2. 
 2.2 Forecasting, Order and Delivery of Compound. 
 (a) At least [*] ([*]) days prior to the first day of each Calendar Year during the Term, commencing with the
Calendar Year in which the Launch Date is anticipated to occur, Salix shall deliver to Lupin a written good faith forecast estimating, on a quarterly basis, the quantities of Compound that Salix expects to purchase from Lupin during such Calendar
Year (each, an “Informational Forecast”); provided that in the event that the Launch Date is anticipated to occur in Calendar Year 2009, Salix shall deliver to Lupin the Informational Forecast in respect of Calendar Year 2009
on a date reasonably agreed by the Parties. Each Informational Forecast shall be non-binding and shall be used by Lupin for planning purposes only. 
 (b) Commencing with a month that is at least [*] ([*]) months prior to the month in which
the Launch Date is anticipated to occur, on the fifteenth (15th) day of each month (or, at Salix’s discretion, at any time from the eighth (8th) day of such month up to and including the twenty-second (22nd
) day of such month), Salix shall deliver to Lupin a written good faith forecast estimating the quantities of Compound that Salix 
  
 * Confidential treatment requested; certain information omitted and filed
separately with the SEC. 
  

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expects to purchase from Lupin for each month during the following [*] ([*]) months (each, a “Forecast”). The first [*] ([*]) months of each Forecast
shall be a “Firm Forecast”. Except as provided in clause (c) below, each Forecast shall be non-binding and shall be used by Lupin for planning purposes only. 
 (c) Without duplication of any previously delivered Purchase Order, each Firm Forecast shall be accompanied by a Purchase
Order for Compound to be delivered to Salix during each of the first [*] ([*]) months, respectively, set forth in such Firm Forecast. The quantity of Compound specified in any Purchase Order for delivery in any month (i) shall be
in multiples of the full production lots of Compound, such full production lot sizes to be mutually agreed following determination of the Specifications, (ii) shall not be more than [*] percent ([*]%) of the quantities specified
in the most recent Firm Forecast applicable to such month, and (iii) shall, unless otherwise agreed by Lupin in writing, be consistent with Lupin’s Current Capacity (or any increased capacity available to Lupin as of the Launch Date or as
subsequently agreed pursuant to a Scale-Up Plan). 
 (d) With respect to each Purchase Order, Salix shall be
obligated to purchase, and Lupin shall be obligated to deliver, by the required delivery date set forth therein such quantities of Compound as are set forth therein. In the event that the terms of any Purchase Order are not consistent with or are in
addition to the teens of this Agreement, the terms of this Agreement shall prevail. 
 (e) Lupin shall deliver
the quantities of Compound set forth in each Purchase Order by the required delivery date set forth in such Purchase Order [*] (as defined in Incoterms 2000) the port of entry designated by Salix; provided, however, that (i) Lupin
shall only engage such carriage, insurance or other providers in connection with such delivery as are designated by Salix in the applicable Purchase Order, (ii) [*] shall bear costs and expenses for (A) carriage and insurance of the
Compound from the Facility and (B) clearance of Compound through customs in the destination country and (iii) in the event any claim arises against any such carriage, insurance or other provider, Lupin, as promptly as possible, shall
assign such claim to Salix. All Compound shall be labeled in accordance with Applicable Law and packed for shipping in accordance with packing instructions provided by Salix. Title to and risk of loss of Compound shall pass to Salix at [*].

 (f) Each delivery of Compound shall be accompanied by (i) a Certificate of Analysis, (ii) a
Certificate of Compliance, (iii) such other documents as may be required pursuant to the Quality Agreement, and (iv) documentation necessary for the sale or export of the Compound. 
 2.3 Materials. 
 (a) Lupin shall maintain an inventory of Materials in sufficient quantities, and shall use commercially reasonable efforts to supply Salix with quantities 
  
 * Confidential treatment requested; certain information omitted and filed
separately with the SEC. 
  

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of Compound that are up to [*] percent ([*]%) of the quantities specified in each Firm Forecast. 
 (b) Lupin shall be responsible for auditing and qualifying its supplier(s) of Materials and obtaining supplies of Materials
in accordance with the Specifications. All Materials shall conform to the applicable specifications or Drug Master File, as further referenced in Regulatory Documentation owned or filed by or on behalf of Salix in respect of any Product. 

2.4 Invoice and Payment. Lupin promptly shall invoice Salix for all quantities of Compound delivered in accordance herewith.
Payment with respect to Compound delivered shall be due [*] ([*]) days after delivery to Salix of the invoice with respect thereto (which shall be deemed to be delivered as of the date of shipment, if delivered prior to shipment, and
shall be sent in electronic form contemporaneously with such delivery); provided that if Salix rejects such Compound pursuant to Section 2.7, then payment shall be due within [*] ([*]) days after receipt by Salix of notice
from the Testing Laboratory that the invoiced Compound is conforming or, subject to Section 2.7, receipt by Salix of replacement Compound, as the case may be; provided further that if Salix disputes any portion of an invoice, it shall
pay the undisputed portion and shall provide Lupin with written notice of the disputed portion and its reasons therefor, and Salix shall not be obligated to pay such disputed portion. The Parties shall use good faith efforts to resolve any such
disputes promptly. In the event of any inconsistency between an invoice and this Agreement, the terms of this Agreement shall control. Payment of invoices shall be made by wire transfer to an account designated in writing by Lupin in United States
Dollars. If any currency conversion shall be required in connection with any payment hereunder, such conversion shall be made each calendar quarter using an exchange rate that is the arithmetic average of the daily exchange rates (obtained as
described below) during such calendar quarter. Each daily exchange rate shall be obtained from The Wall Street Journal, Eastern United States Edition, or, if not so available, as otherwise agreed by the Parties. 
 2.5 Price. 
 (a) The purchase price (the “Purchase Price”) for all Compound to be delivered hereunder shall be determined as set forth in this Section 2.5. 
 (b) Beginning with Salix’s delivery of its first Forecast pursuant to Section 2.2(b) and continuing thereafter, the
Purchase Price shall equal [*] United States Dollars ($[*]) per kilogram of Compound. 
 2.6 Warranty. In
connection with each delivery of Compound to Salix hereunder, Lupin hereby represents and warrants to Salix as of the date of the delivery of such Compound to Salix as follows: (a) such Compound is in conformity with the Specifications and the
Certificate of Analysis therefor provided pursuant to Section 2.2(f); (b) such Compound has been Manufactured in conformance with GMP, all other Applicable Law, this Agreement and the Quality Agreement; (c) title to such Compound will
pass to Salix free and clear of any security interest, lien or other encumbrance; (d) such Compound has been Manufactured in facilities that 
  
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

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are in compliance with all Applicable Law at the time of such Manufacture (including applicable inspection requirements of FDA and other Regulatory Authorities); (e) the expiration date of
such Compound is no earlier than [*] ([*]) months after the date of delivery thereof for Compound as defined in the specifications set forth in Lupin’s Drug Master File for the Compound as of the Effective Date or, with respect to
Compound for which the Specifications have been amended, such period of time reasonably agreed to by the Parties after the date of delivery thereof (or, in either case, such longer period after the date of delivery thereof as may be supported by
ongoing stability studies); (f) such Compound has not been adulterated or misbranded under the Federal Food, Drug, and Cosmetic Act, as amended (the “FFDCA”), and similar provisions of other Applicable Law; (g) such
Compound may be introduced into interstate commerce pursuant to the FFDCA and similar provisions of other Applicable Law; and (h) neither Lupin nor any of its Affiliates has been debarred or is subject to debarment pursuant to Section 306
of the FFDCA or listed on either Excluded List. 
 2.7 Failure or Inability to Supply Compound. 
 (a) In the event that Lupin, at any time during the Term, shall have reason to believe that it will be unable to supply Salix
with the full quantity of Compound forecasted to be ordered or actually ordered by Salix in a timely manner and in conformity with the warranty set forth in Section 2.6 (whether by reason of force majeure or otherwise), Lupin shall, as promptly
as possible, notify Salix thereof (and, in any event, shall use commercially reasonable efforts to provide at least [*] ([*]) days’ advance notice thereof to Salix). Promptly thereafter, the Parties shall meet to discuss how Salix
shall obtain such full quantity of conforming Compound. Compliance by Lupin with this Section 2.7(a) shall not relieve Lupin of any other obligation or liability under this Agreement, including any obligation or liability under
Section 2.7(b), (c), or (d). 
 (b) If Lupin fails to deliver the full quantity of Compound specified in a
Purchase Order by [*] ([*]) days after the required delivery date specified therein and in conformity with the warranty set forth in Section 2.6, then Salix may, at its option, (i) cancel all or any portion of such Purchase
Order, in which event Salix shall have no liability with respect to the portion of such Purchase Order so cancelled, or (ii) accept late delivery of all or any portion of the Compound specified in such Purchase Order. 
 (c) If Lupin fails to deliver the full quantity of Compound specified in a Purchase Order by [*] ([*]) days
after the required delivery date specified therein and in conformity with the warranty set forth in Section 2.6, then Salix may, at its option, (i) cancel all or any portion of such Purchase Order, in which event Salix shall have no
liability with respect to the portion of such Purchase Order so cancelled, or (ii) accept late delivery of all or any portion of the Compound specified in such Purchase Order, in which event the Purchase Price otherwise payable by Salix with
respect to all Compound accepted by Salix under such Purchase Order shall be reduced by [*] percent ([*]%). 
  
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 10 

 (d) If Lupin fails to deliver the full quantity of Compound specified in a
Purchase Order by [*] ([*]) days after the required delivery date specified therein and in conformity with the warranty set forth in Section 2.6, then Salix may, at its option, (i) accept late delivery of all or any portion
of the Compound specified in such Purchase Order, in which event the Purchase Price otherwise payable by Salix with respect to all Compound accepted by Salix under such Purchase Order shall be reduced by [*] percent ([*]%) or
(ii) provide written notice to Lupin of its intention to qualify a third party manufacturer for the Compound, in which event Lupin shall use its commercially reasonable efforts promptly to assist Salix to qualify such third party manufacturer
designated by Salix to Manufacture the Compound, and shall promptly grant to such third party manufacturer, on a royalty-free, non-exclusive basis, such licenses, and provide to such third party manufacturer, free of charge, such technical
assistance, as such third party manufacturer may require in order to Manufacture the Compound to the then-current Specifications in accordance with the then-current Manufacturing process for the Compound, including full technology transfer of the
then-current Manufacturing process for the Compound, in all cases solely for the purposes of Salix’s production of Products. 
 (e) In the event that Salix determines, within [*] ([*]) days after delivery thereof by Lupin (or within [*] ([*]) days after discovery of any nonconformity that could not
reasonably have been detected by a customary inspection on delivery), that any Compound supplied by Lupin does not conform to the warranty set forth in Section 2.6, Salix shall give Lupin notice thereof (including a sample of such Compound, if
applicable). Lupin shall undertake appropriate evaluation of such sample and shall notify Salix whether it has confirmed such nonconformity within [*] ([*]) days after receipt of such notice from Salix. If Lupin notifies Salix that it
has not confirmed such nonconformity, the Parties shall submit the dispute to an independent testing laboratory or other appropriate expert mutually acceptable to the Parties (the “Testing Laboratory”) for evaluation. Both Parties
shall cooperate with the Testing Laboratory’s reasonable requests for assistance in connection with its evaluation hereunder. The findings of the Testing Laboratory shall be binding on the Parties, absent manifest error. The expenses of the
Testing Laboratory shall be borne by Lupin if the testing confirms the nonconformity and otherwise by Salix. If the Testing Laboratory or Lupin confirms that a lot of Compound does not conform to the warranty set forth in Section 2.6, Lupin, at
Salix’s option, promptly shall (i) supply Salix with a conforming quantity of Compound at Lupin’s expense or (ii) reimburse Salix for the Purchase Price paid by Salix with respect to such nonconforming Compound if already paid.
In addition, Lupin promptly shall reimburse Salix for all costs incurred by Salix with respect to such nonconforming Compound. Salix shall have the right to offset any such costs against any payments owed by Salix to Lupin under this Agreement.
Lupin immediately shall notify Salix if at any time it discovers that any Compound delivered hereunder does not conform to the warranty set forth in Section 2.6. 
  
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 11 

 (f) For purposes of this Section 2.7, delivery of [*] percent
([*]%) or more of the Compound ordered pursuant to any Purchase Order shall constitute “full delivery.” 
 2.8
Inventory Warehousing. Following delivery by Lupin, Salix agrees to maintain the Compound at a facility that is temperature and humidity controlled. Salix agrees to inspect the facility where the Compound is held or stored, and keep records
of such inspection in accordance with Salix’s standard operating procedures, which records may be requested by Lupin for cause. 
 2.9 Current Capacity and Scale-Up Plans. 
 (a) Lupin represents and warrants to Salix that
Lupin’s Capacity as of the Effective Date (based on the specifications for the Compound set forth in Lupin’s Drug Master File as of the Effective Date) is as set forth on Schedule 2.9(a) (the “Current Capacity”).

 (b) Lupin agrees that at all times during the Term it will not, unless otherwise agreed in writing by Salix,
allow its Capacity to be less than the Current Capacity (or any increased capacity, to the extent Lupin has determined in its sole discretion to make it available as of the Launch Date, or as subsequently agreed pursuant to any Scale-Up Plans).
Without limiting the foregoing sentence, Lupin agrees that it will not at any time during the Term enter into any commitment to sell or otherwise supply Compound (or product containing Compound) to any third party that would cause its Capacity to be
less than the Current Capacity (or any increased capacity, to the extent Lupin has determined in its sole discretion to make it available as of the Launch Date, or as subsequently agreed pursuant to any Scale-Up Plans). 
 (c) In the event that at any time during the Term Salix contemplates that its annual requirements of the Compound are likely
to exceed the Current Capacity (or any increased Capacity as of such date), Salix shall promptly notify Lupin of that fact and the Parties shall thereafter discuss in good faith plans to increase Lupin’s Capacity in respect of the Compound so
as to meet Salix’s anticipated needs (as mutually agreed upon in writing, the “Scale-Up Plans”). Lupin agrees to implement any mutually agreed upon Scale-Up Plan as promptly as possible. 
 (d) As of [*] ([*])[*] prior to the Launch Date, Lupin shall provide Salix with a certificate that, to
the best of its knowledge, it will have sufficient Capacity as of the Launch Date to fulfill its supply obligations hereunder. 
 2.10 Costs and Expenses. Except as otherwise explicitly set forth herein, Lupin shall be solely responsible for all costs and expenses incurred in connection with the Manufacture of Compound hereunder, including costs and expenses of
personnel, quality control testing, Manufacturing facilities and equipment, and Materials. 
 2.11 Amendment of
Specifications. 
  
 * Confidential treatment requested;
certain information omitted and filed separately with the SEC. 
  

 12 

 (a) Salix may amend, modify or supplement the Specifications, the
Manufacturing process, or the test methods for the Compound as determined by Salix, unilaterally and in its sole discretion, to be necessary or appropriate in order to comply with any Regulatory Approval, GMP and all other Applicable Law and
compendia. Salix may not amend, modify or supplement the Specifications, the Manufacturing process, or the test methods for the Compound for any other purpose without Lupin’s written consent, not to be unreasonably withheld. Salix promptly
shall provide Lupin with appropriate documentation relating to any such changes to the Specifications or Manufacturing process to the extent that such changes affect Lupin’s Manufacturing of the Compound hereunder. 
 (b) Lupin shall not amend, modify or supplement the Specifications, the Manufacturing process, or the test methods for the
Compound or any Materials or sources of Materials used in connection with Manufacturing the Compound without the prior written consent of Salix, not to be unreasonably withheld. 
 (c) In the event that any amendment to the Specifications, the Manufacturing process, or the test methods for the Compound
adversely affects Lupin’s ability to maintain its Capacity at the Current Capacity (or any increased capacity available to Lupin as of the Launch Date or as subsequently agreed pursuant to a Scale-Up Plan) the Parties shall discuss in good
faith a Scale-Up Plan to address such shortfall in Capacity and Lupin shall implement any mutually agreed Scale-Up Plan as promptly as possible. 
 (d) [*] shall reimburse [*] for reasonable expenses that are actually incurred by [*] in connection with any material amendment of the Specifications or the Manufacturing process for
the Compound required by [*] pursuant to Section 2.11(a), including reasonable costs of capital equipment and process upgrades and obsolescence of Materials, goods-in-process, and finished goods not suitable for other use in the business
or operations of [*] or any of its Affiliates; provided, however, that [*] liability for such reimbursement shall be limited to levels of inventory that are consistent with the most recent Firm Forecast; and further
provided, that Salix and Lupin shall engage in good faith discussions regarding the amount of such expenses. 
 (e) [*] shall be solely responsible for any and all increased costs or expenses incurred by it or [*] as a result of any amendment of the Specifications or the Manufacturing process for the Compound (i) requested by
[*] and consented to in writing by [*] or (ii) required by [*] as a result of [*] failure to Manufacture the Compound in conformity with the warranty set forth in Section 2.6. 
 2.12 Quality Agreement. Within [*] ([*]) days after the Effective Date, and in any event, prior to any commercial sale
of the Compound, Salix and Lupin shall prepare and enter into a reasonable and customary quality assurance agreement that shall set forth the terms and conditions upon which Lupin will conduct its quality activities in connection with this

  
 * Confidential treatment requested; certain information
omitted and filed separately with the SEC. 
  

 13 

 
Agreement (the “Quality Agreement”). Each Party shall duly and punctually perform all of its obligations under the Quality Agreement. 
 2.13 Quality Control Analyses and Release. Lupin shall be responsible for all quality control analyses of the Compound and all
Compound shall be released by Lupin, in each case in accordance with the terms of the Quality Agreement. 
 2.14 Maintenance
of Facility. 
 (a) Except as otherwise approved in writing by Salix, Lupin shall Manufacture the Compound
exclusively at the Facility. 
 (b) Lupin shall ensure that any and all licenses, registrations, and Regulatory
Authority approvals required by Applicable Law to be obtained in connection with the Facility and equipment used in connection with the Manufacture of the Compound by Lupin so as to permit Lupin to Manufacture Compound and supply it to Salix as
contemplated hereunder have been obtained and are in all respects current and in full force and effect. 
 (c)
Lupin shall at all times during the Term maintain the Facility and such equipment in a state of repair and operating efficiency consistent with the requirements of the Specifications, the Regulatory Approvals, GMP and all other Applicable Law.

 (d) Lupin shall maintain in the Facility adequate and segregated holding accommodations for the Compound
manufactured for Salix hereunder as and to the extent required by the Specifications, the Regulatory Approvals, GMP and all other Applicable Law. 
 (e) Lupin shall only use disposal services or sites that have appropriate environmental permits and are in compliance with Applicable Law. 
 2.15 Regulatory Cooperation of Lupin. Lupin shall cooperate with any reasonable requests for assistance from Salix with respect to
obtaining and maintaining any and all Regulatory Approvals required in connection with the sourcing of Compound by Salix hereunder and the sale of Products in the Territory, including by: 
 (a) [*] making [*] employees, consultants and other staff available upon reasonable notice during normal
business hours to attend meetings with Regulatory Authorities concerning the Compound and Products; 
 (b) [*]
disclosing and making available to Salix, in whatever form Salix may reasonably request, all Manufacturing and quality control data, CMC Data and other information related to the Compound and the Manufacturing process therefor as is reasonably
necessary or desirable to prepare, file, obtain and maintain any Regulatory 
  
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 14 

 
Approval required in connection with the sourcing of Compound by Salix hereunder and the sale of Products in the Territory; and 
 (c) [*] (i) preparing, in accordance with Applicable Law, a Drug Master File in respect of the Compound and
filing each such Drug Master File with the FDA and those Regulatory Authorities (other than the FDA) designated by Salix, as applicable, and (ii) providing to Salix a copy of the open portion of each such Drug Master File. 
 2.16 Inspection by Salix. Lupin agrees that Salix and its agents (so long as such agents have entered into binding confidentiality
agreements with Salix providing for obligations no less strict than Salix’s confidentiality obligations to Lupin hereunder) shall have the right, as required by Applicable Law or otherwise [*] each Calendar Year, or otherwise for cause,
upon reasonable prior notice to Lupin and during normal business hours, to inspect the Facility as well as the Manufacturing of the Compound, including inspection of (a) the Materials used in the Manufacture of the Compound, (b) the
holding facilities for such Materials, (c) the equipment used in the Manufacture of the Compound, and (d) all records relating to such Manufacturing and the Facility (to the extent they relate to the Compound). Following such audit, Salix
shall discuss its observations and conclusions with Lupin and Lupin shall implement such corrective actions as may be reasonably determined by Salix within [*] ([*]) days after notification thereof by Salix or such longer period as may
be agreed by the Parties. 
 2.17 Notification of Regulatory Inspections; Communications. Lupin shall notify Salix by
telephone within twenty-four (24) hours, and in writing within two (2) business days, after learning of any proposed visit to, or inspection of, the Facility by any Regulatory Authority and immediately by telephone after learning of any
unannounced visit to, or inspection of, the Facility by any Regulatory Authority, in each case relating to the Compound or any equipment or Manufacturing process used in connection with the Manufacture of the Compound. Lupin shall [*] any
report and other written communications received from such Regulatory Authority in connection with such visit or inspection, in each case relating to the Compound or any equipment or Manufacturing process used in connection with the Manufacture of
the Compound, within [*] ([*]) business days after receipt thereof and shall consult with Salix concerning the response of Lupin to each such communication. Lupin shall [*] as soon as reasonably practicable. The Parties
acknowledge and agree that [*] has the sole right to determine the contents and form of any communication with, or response to, FDA. Lupin covenants that such communications with, and responses to, FDA shall not contain any untrue statement
of a material fact or omit to state a material fact necessary in order to make such communication or response not misleading. 
 2.18 Adverse Events. Salix shall promptly notify Lupin of any information that comes to Salix’s attention concerning any Adverse Event, including any serious or unexpected symptoms (e.g. nausea, chest pain), signs (e.g.,
tachycardia, enlarged liver) or the abnormal results of an investigation (e.g., laboratory findings, electrocardiogram), including any unfavorable side effect, injury, toxicity or sensitivity reaction, or any unexpected incidence, and the severity
thereof, associated with the clinical uses, studies, investigations, tests and marketing of the Compound or a Product. 
  
 * Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 15 

 2.19 Recalls and Withdrawals. Lupin promptly shall reimburse Salix for all costs
incurred by Salix in connection with recalls, market withdrawals, and returns and destruction of Product containing any nonconforming Compound (as determined pursuant to Section 2.7(e)) as and to the extent such recalls, market withdrawals, and
returns and destruction of Product result from Lupin’s breach of its obligations under this Agreement or negligence or willful misconduct. Salix shall have the right to offset any such costs against any payments owed by Salix to Lupin under
this Agreement. 
 2.20 Compliance with Applicable Laws. Lupin shall strictly comply, and shall cause each of its
Materials suppliers to strictly comply, with GMP and all other Applicable Law in carrying out the Manufacturing of the Compound and its other duties and obligations under this Agreement, including those relating to environmental matters, public
health, wages, hours and conditions of employment, subcontractor selection, discrimination and occupational health/safety. Without limiting the foregoing, Lupin covenants that neither Lupin nor any of its permitted subcontractors shall utilize
child, or any form of forced or involuntary, labor in the Manufacture of the Compound or services under this Agreement. Upon Salix’s request, Lupin shall certify in writing its compliance with this Section 2.20 and shall provide all
permits, certificates and licenses that may be required for its performance under this Agreement. 
 2.21 Retention of
Manufacturing Records and Samples. 
 (a) Lupin shall generate (as and to the extent required by Applicable
Law), retain and maintain, both during the Term and thereafter: 
 (i) all records necessary to comply with GMP and all other
Applicable Law relating to the Manufacture of the Compound; 
 (ii) all Manufacturing records, standard operating procedures,
equipment log books, batch manufacturing records, laboratory notebooks and all raw data relating to the Manufacturing of the Compound; 
 (iii) samples of each batch and Materials. Samples shall include a quantity of representative material of each batch and Materials sufficient to perform at least full duplicate quality control testing, and shall specify the dates of
Manufacture and packaging thereof. Samples so retained shall be selected at random from either final container material or from bulk and final containers; provided that they include at least one final container as a final package, or
package-equivalent of such filling of each batch. Such sample shall be stored at temperatures and under conditions which will maintain the identity and integrity of the relevant sample; and 
 (iv) such other records and samples as Salix reasonably may require in order to ensure compliance by Lupin with the terms of this Agreement
and Applicable Law. 
 (a) Without prejudice to Lupin’s obligations pursuant to Section 2.21(a), Lupin
shall diligently complete the master batch record for the Compound during the Manufacture of such Compound. 
  

 16 

 (b) All materials, samples, records and other items referred to in Sections
2.21(a) and 2.21(b) shall be retained by Lupin for the longer of (i) such period as may be required by GMP and all other Applicable Law and (ii) [*] ([*]) years. 
 2.22 Exclusive Supply Arrangement in Respect of the Territory. 
 (a) To the maximum extent permitted by Applicable Law, except pursuant to [*], Lupin shall not, and Lupin shall cause
its Affiliates not to, distribute, market, promote, offer for sale, sell or otherwise supply the Compound, directly or indirectly, whether alone or in combination with other molecules or compounds, whether as a raw material or as a finished product,
and whether at wholesale or retail, to: 
 (i) any Person in the Territory other than Salix or its Affiliates for use in humans;
or 
 (ii) any Person outside the Territory that Lupin or its Affiliates, as applicable, (A) reasonably suspects is likely
to directly or indirectly distribute, market, promote, offer for sale, sell or otherwise supply the Compound to any Person in the Territory other than Salix or its Affiliates or assist another Person to do so or (B) knows has directly or
indirectly distributed, marketed, promoted, offered for sale, sold or otherwise supplied the Compound to any Person in the Territory other than Salix or its Affiliates for use in humans, or assisted another Person to do so. 
 (b) The provisions of Section 2.22(a) shall terminate as of the end of the Term. 
 2.23 Shortages. In the event that the amount of Compound which Lupin Manufactures is less than the amount required to meet the
requirements of all Persons permitted to be supplied by Lupin after giving effect to the provisions of Section 2.22, the total supply Manufactured by Lupin shall be apportioned first to Salix and its Affiliates, to the extent of their
documented requirements during the relevant Manufacturing period, with any remainder to be allocated by Lupin among such Persons as are permitted to be supplied by Lupin after giving effect to the provisions of Section 2.22. 
 2.24 Second Source. Salix shall have the right to secure a second source of the Compound, and Lupin shall promptly grant to such
third party manufacturer as may be designated by Salix as a second source of the Compound, on a royalty-free, non-exclusive basis, such licenses, and provide to such third party manufacturer, free of charge, such technical assistance, as such third
party manufacturer may require in order to Manufacture the Compound, solely for use by Salix in its production of the Products, to the then-current Manufacturing process for the Compound. 
 ARTICLE III. INTELLECTUAL PROPERTY 
 3.1 Ownership
of Inventions. 
  
 * Confidential treatment requested; certain
information omitted and filed separately with the SEC. 
  

 17 

 (a) Except as otherwise expressly provided in this Article III, each Party
shall own all right, title and interest in and to any Inventions that are conceived, discovered, developed or otherwise made exclusively by or on behalf of such Party or its Affiliates, employees or contractors in performing such Party’s
obligations hereunder or in respect of such Party’s activities in respect hereof. Salix hereby grants to Lupin a [*], non-exclusive license to use all such right, title and interest in and to any such Inventions that Salix may develop
for the sole purpose of performing Lupin’s obligations hereunder or exercising Lupin’s rights hereunder. Lupin hereby grants to Salix an irrevocable, perpetual, fully paid-up, royalty-free, non-exclusive license in the Territory, with the
right to enforce and to grant sublicenses through multiple tiers, to use all such right, title and interest in and to any such Inventions that Lupin may develop relating to the Compound (“Compound Inventions”). 
 (b) Salix and Lupin shall jointly own all right, title and interest in and to any Joint Inventions; provided that
(i) Lupin shall, and does hereby, grant to Salix an irrevocable, perpetual, fully paid-up, royalty-free, non-exclusive license, with the right to grant sublicenses through multiple tiers, under all of Lupin’s right, title and interest in
and to all Joint Inventions to Exploit the Compound and Products, solely for use in the Territory, and (ii) Salix shall, and does hereby, grant to Lupin a worldwide (other than in the Territory), irrevocable, perpetual, [*],
non-exclusive license, with the right to grant sublicenses through multiple tiers, under all of Salix’s right, title and interest in and to all Joint Inventions to Exploit the Compound and Products, solely for use outside the Territory. Each of
Salix and Lupin shall, and shall cause its respective Affiliates to, promptly disclose in writing to the other Party the discovery, development, making, conception or reduction to practice of any Joint Invention. 
 3.2 Prosecution of Invention Patents. Salix shall have the first right, but not the obligation, to prepare, file, prosecute and
maintain any patent applications and patents covering Joint Inventions and Compound Patents (collectively, the “Invention Patents,” and each, an “Invention Patent”) and shall be responsible for related interference,
re-issuance, re-examination and opposition proceedings; provided, however, that if Salix plans to abandon an Invention Patent, Salix shall notify Lupin in writing at least [*] ([*]) days in advance of the due date of any payment
or other action that is required to prepare, file, prosecute or maintain such Invention Patent, and Lupin may elect, upon written notice within such [*] ([*]) day period to Salix, to make such payment or take such action, at
Lupin’s expense, and thereafter to become the sole owner of such Invention Patent. In such event, Salix shall cooperate, without additional consideration, to assign and transfer all of its right, title and interest in and to such Invention
Patent to Lupin as the sole owner. 
 3.3 United States Law. The determination of whether Inventions are conceived,
discovered, developed or otherwise made by a Party for the purpose of allocating proprietary rights (including patent, copyright or other intellectual property rights) therein, shall, for purposes of this Agreement, be made in accordance with
applicable law in the United States. In the event that United States law does not apply to the conception, discovery, development or making of any Invention hereunder, each Party shall, and does hereby, assign, and shall cause its 
  
 * Confidential treatment requested; certain information omitted and filed
separately with the SEC. 
  

 18 

 
Affiliates to so assign, to the other Party, without additional compensation, such right, title and interest in and to any Inventions, as well as any intellectual property rights with respect
thereto, as necessary to fully effect ownership as contemplated by Section 3.1. 
 3.4 Corporate Names. Lupin shall,
and does hereby, grant to Salix a non-exclusive, royalty-free license, with the right to grant sublicenses through multiple tiers, to use such Corporate Names of Lupin or its Affiliates, solely as may be required by Applicable Law, in connection
with its sale or documentation of the chain of custody of Products in the Territory. 
 ARTICLE IV. REPRESENTATIONS AND
WARRANTIES; COVENANTS 
 4.1 Representations and Warranties of Each Party. Each Party hereby represents and warrants
to the other Party as of the Effective Date as follows: 
 (a) Such Party (i) is duly formed and in good
standing under the laws of the jurisdiction of its formation, (ii) has the power and authority and the legal right to enter into this Agreement and perform its obligations hereunder, and (iii) has taken all necessary action on its part
required to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of such Party and constitutes a legal, valid and binding obligation of
such Party and is enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditor rights and judicial principles affecting the
availability of specific performance and general principles of equity, whether enforceability is considered in a proceeding at law or equity. 
 (b) All necessary consents, approvals and authorizations of all regulatory and governmental authorities and other Persons required to be obtained by such Party in connection with the execution and
delivery of this Agreement and the performance of its obligations hereunder have been obtained. 
 (c) The
execution and delivery of this Agreement and the performance of such Party’s obligations hereunder (i) do not and will not conflict with or violate any requirement of applicable law or any provision of the articles of incorporation,
bylaws, limited partnership agreement or other similar documents of such Party and (ii) do not and will not conflict with, violate, or breach, or constitute a default or require any consent under, any contractual obligation or court or
administrative order by which such Party is bound. 
 (d) Neither such Party nor any of its Affiliates has been
debarred or is subject to debarment pursuant to Section 306 of the FFDCA or listed on either Excluded List. 
 (e) Neither such Party nor any of its Affiliates will use in any capacity, in connection with the services to be performed under this Agreement, any Person who has been debarred pursuant to Section 306 of the FFDCA, or who is the
subject of a conviction described in such section, or listed on either Excluded List. 
  

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 (f) Each Party will inform the other Party in writing immediately if it or
any Person who is performing services hereunder is debarred or is the subject of a conviction described in Section 306 of the FFDCA or listed on either Excluded List, or if any action, suit, claim, investigation or legal or administrative
proceeding is pending or, to the best of such Party’s knowledge, is threatened, relating to the debarment or conviction under Section 306 of the FFDCA, or listing on either Excluded List, of such Party or any Person performing services
hereunder. 
 4.2 Disclaimer of Other Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES MAKE NO
REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY OF MERCHANTABILITY. 
 ARTICLE V. CONFIDENTIALITY 
 5.1 Confidential Information. Subject
to the provisions of Sections 5.2 and 5.3, at all times during the Term and for [*] ([*]) years following the expiration or termination of this Agreement, the Receiving Party (a) shall keep completely confidential and shall not
publish or otherwise disclose any Confidential Information furnished to it by the Disclosing Party, except to those of the Receiving Party’s employees, Affiliates, or consultants who have a need to know such information to perform such
Party’s obligations hereunder (and who shall be advised of the Receiving Party’s obligations hereunder and who are bound by confidentiality obligations with respect to such Confidential Information no less onerous than those set forth in
this Agreement) (collectively, “Recipients”) and (b) shall not use Confidential Information of the Disclosing Party directly or indirectly for any purpose other than performing its obligations or exercising its rights
hereunder. The Receiving Party shall be jointly and severally liable for any breach by any of its Recipients of the restrictions set forth in this Agreement. 
 5.2 Exceptions to Confidentiality. The Receiving Party’s obligations set forth in this Agreement shall not extend to any Confidential Information of the Disclosing Party: 
 (a) that is or hereafter becomes part of the public domain by public use, publication, general knowledge or the like through
no wrongful act, fault or negligence on the part of a Receiving Party or its Recipients; 
 (b) that is received
from a third party without restriction and without breach of any agreement between such third party and the Disclosing Party; 
 (c) that the Receiving Party can demonstrate by competent evidence was already in its possession without any limitation on use or disclosure prior to its receipt from the Disclosing Party; 
 (d) that is generally made available to third parties by the Disclosing Party without restriction on disclosure; or

  
 * Confidential treatment requested; certain information
omitted and filed separately with the SEC. 
  

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 (e) that the Receiving Party can demonstrate by competent evidence was
independently developed by the Receiving Party. 
 5.3 Disclosure. 
 (a) Each Party may disclose Confidential Information to the extent that such disclosure is: 
 (i) made in response to a valid order of a court of competent jurisdiction or other governmental body of a country or any political
subdivision thereof of competent jurisdiction; provided, however, that the Receiving Party shall first have given notice to the Disclosing Party and given the Disclosing Party a reasonable opportunity to quash such order or to obtain a
protective order requiring that the Confidential Information or documents that are the subject of such order be held in confidence by such court or governmental body or, if disclosed, be used only for the purposes for which the order was issued; and
provided further that if a disclosure order is not quashed or a protective order is not obtained, the Confidential Information disclosed in response to such court or governmental order shall be limited to that information that is legally
required to be disclosed in such response to such court or governmental order; 
 (ii) made pursuant to Section 2.24; or

 (iii) otherwise required by law or regulation, in the opinion of legal counsel to the Receiving Party. 
 (b) Salix may disclose Confidential Information to the extent that such disclosure is made to Regulatory Authorities as
required in connection with any filing, application or request for Regulatory Approval; provided, however, that reasonable measures shall be taken to assure confidential treatment of such information. 
 (c) To the extent, if any, that a Party concludes in good faith that it is required by applicable laws or regulations to file
or register this Agreement or a notification thereof with any governmental authority, including the U.S. Securities and Exchange Commission, such Party may do so, and the other Party shall cooperate in such filing or notification and shall execute
all documents reasonably required in connection therewith. In such situation, the filing Party shall request confidential treatment of sensitive provisions of the Agreement, to the extent permitted by Applicable Law and in consultation with the
other Party. The Parties shall promptly inform each other as to the activities or inquiries of any such governmental authority relating to this Agreement, and shall cooperate to respond to any request for further information therefrom. 

5.4 Notification. The Receiving Party shall notify the Disclosing Party immediately, and cooperate with the Disclosing Party as
the Disclosing Party may reasonably request, upon the Receiving Party’s discovery of any loss or compromise of the Disclosing Party’s Confidential Information. 
 5.5 Remedies. Each Party agrees that the unauthorized use or disclosure of any information by the Receiving Party in violation of this Agreement will cause severe and irreparable damage to the
Disclosing Party. In the event of any violation of this Article V, the

  

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Receiving Party agrees that the Disclosing Party shall be authorized and entitled to obtain from any court of competent jurisdiction injunctive relief, whether preliminary or permanent, without
the necessity of proving irreparable harm or monetary damages, as well as any other relief permitted by applicable law. The Receiving Party agrees to waive any requirement that the Disclosing Party post bond as a condition for obtaining any such
relief. 
 5.6 Use of Names. Neither Party shall mention or otherwise use the name, insignia, symbol, trademark, trade
name or logotype of the other Party (or any abbreviation or adaptation thereof) in any publication, press release, promotional material or other form of publicity without the prior written approval of such other Party in each instance. The
restrictions imposed by this Section 5.6 shall not prohibit either Party from making any disclosure identifying the other Party that is required by Applicable Law; provided, however, that reasonable measures shall be taken to assure
confidential treatment of such information. 
 5.7 Press Releases. Except as expressly provided in Section 5.3,
neither Party shall make a press release or other public announcement regarding this Agreement, the terms hereof or the transactions contemplated hereby without the prior written approval of the other Party. Each Party shall provide the other with
the proposed text of any such press release or public announcement for review and approval, which approval shall not be unreasonably withheld, conditioned or delayed, as early as possible, but in no event less than [*] ([*]) business
days in advance of the publication, communication or dissemination thereof; provided, however, that the receiving Party shall be deemed to have approved any such press release or public announcement if it fails to notify the proposing Party
in writing of any objections to such press release or public announcement within [*] ([*]) business days after receipt by the receiving Party of the text of such public announcement. 
 ARTICLE VI. TERM AND TERMINATION 
 6.1 Term. This Agreement shall commence as of the Effective Date and, unless earlier terminated in accordance with the terms hereof, shall expire on the tenth (10th) anniversary of the Launch Date,
unless extended for additional [*] ([*]) year periods, at Salix’s option, upon written notice given by Salix to Lupin not less than [*] ([*]) months prior to the expiration of the then-current term (the
“Term”). 
 6.2 Termination. In addition to any other provision of this Agreement expressly providing
for termination of this Agreement, this Agreement may be terminated as follows: 
 (a) Salix may terminate this
Agreement immediately upon notice to Lupin in the event that Regulatory Authorities require or cause the withdrawal of any Product from the Territory. 
 (b) Any time after the earlier of (a) an Other Product Entry and (b) the [*] anniversary of the Effective Date, Salix may terminate this Agreement for any reason or no reason upon not
less than [*] ([*]) days’ prior written notice to Lupin (which may be provided prior to such [*] anniversary). 
  
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 (c) This Agreement may be terminated by either Party: 
 (i) immediately upon written notice if the other Party shall 
 (A) file in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction a petition in bankruptcy or insolvency or for reorganization or for arrangement or for the
appointment of a receiver or trustee of that Party or of its assets, 
 (B) propose a written agreement of composition or
extension of its debts, 
 (C) be served with an involuntary petition against it, filed in any insolvency proceeding, and such
petition shall not be dismissed within [*] ([*]) days after the filing thereof, 
 (D) propose or be a party to
any dissolution or liquidation, 
 (E) make makes an assignment for the benefit of its creditors, or 
 (F) admit in writing its inability generally to pay its debts as they fall due in the general course; 
 (ii) immediately upon written notice in the event of any material breach by the other Party in the performance of any of its obligations
herein contained that (if curable) has not been cured by the defaulting Party within [*] ([*]) days after receiving written notice thereof from the nonbreaching Party; 
 (iii) immediately upon written notice in the event that, as a result of an order of government or any other official authority, the
continued operation of this Agreement in its entirety or in substantial part is prohibited or prevented or delayed for an unspecified and indeterminate period; or 
 (iv) as provided in Section 8.2. 
 6.3 Effect of Expiration or
Termination. 
 (a) The expiration or earlier termination of this Agreement shall be without prejudice to any
rights or obligations of the Parties that may have accrued prior to such termination, and the provisions of Sections 2.4, 2.6, 2.8, 2.13, 2.18, 2.19, 2.21, Articles III, IV and V, this Article VI, Article VII and Article VIII, shall survive the
expiration or termination of this Agreement. Except as otherwise expressly provided herein, termination of this Agreement in accordance with the provisions hereof shall not limit remedies that may otherwise be available at law or in equity.

 (b) Upon expiration or earlier termination of this Agreement, each Party, at the request of the other, shall
return all data, files, records and other materials in 
  
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Confidential treatment requested; certain information omitted and filed separately with the SEC. 
  

 23 

 
its possession or control containing or comprising the other Party’s Confidential Information except that the legal department of such Party may retain one copy for archival purposes.

 (c) Upon expiration of this Agreement or any earlier termination of this Agreement by Salix pursuant to
Section 6.2(c), then, at Salix’s option, Lupin shall, for [*] from such expiration or termination, use its commercially reasonable efforts promptly to assist Salix to qualify a third party manufacturer designated by Salix to
Manufacture Compound to meet Salix’s requirements, in which event Lupin shall use its commercially reasonable efforts promptly to assist Salix to qualify such third party manufacturer to Manufacture Compound, and shall promptly grant to such
third party manufacturer, on a royalty-free, non-exclusive basis, such licenses, and provide to such third party manufacturer, free of charge in the event of a termination of this Agreement by Salix pursuant to Section 6.2(c) and at
Lupin’s standard time and materials cost in the event of an expiration of this Agreement, such technical assistance, as such third party manufacturer may require in order to Manufacture the Compound to the then-current Specifications in
accordance with the then-current Manufacturing process for the Compound, in all cases solely for the purposes of Salix’s production of Products. 
 (d) Upon any termination of this Agreement by Salix pursuant to Section 6.2(a) or 6.2(b) or by Lupin pursuant to Section 6.2(c), Salix shall [*] at the time of such termination. Salix
shall in addition [*] in accordance with this Agreement. Salix shall [*]. 
 (e) Except as and to
the extent contemplated by clause (d), upon expiration of this Agreement or any earlier termination of this Agreement, Lupin immediately shall cease all Manufacturing of the Compound pursuant to this Agreement. 
 (f) Following expiration or termination of this Agreement, Lupin shall provide such reasonable cooperation and support with
respect to regulatory matters as Salix may require in order to dispose of previously purchased Compound. 
 ARTICLE VII.
INDEMNIFICATION 
 7.1 Lupin Indemnification. Lupin shall indemnify Salix, its Affiliates and its and their
respective directors, officers, employees and agents (the “Salix Indemnified Parties”), and defend and hold each of them harmless, from and against any and all claims, lawsuits, losses, damages, liabilities, penalties, costs and
expenses (including reasonable attorneys’ fees and disbursements) (collectively, “Losses”) incurred by any of them in connection with, arising from or occurring as a result of (a) the breach by Lupin of any of its
representations or warranties set forth in this Agreement, (b) Lupin’s material breach of this Agreement; (c) Lupin’s negligence or willful misconduct in the performance of this Agreement, (d) the storage, release, or
disposal of any hazardous or regulated material or any waste by Lupin, and (e) the enforcement by Salix of its rights under this Section 7.1, except, in each case, for those Losses for which Salix has an obligation to indemnify the Lupin
Indemnified Parties pursuant to Section 7.2, as to which 
  
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Losses each Party shall indemnify the other Party to the extent of its respective liability for such Losses. 
 7.2 Salix Indemnification. Salix shall indemnify Lupin, its Affiliates and its and their respective directors, officers, employees and agents (the “Lupin Indemnified Parties”), and
defend and hold each of them harmless, from and against any and all Losses incurred by any of them in connection with, arising from or occurring as a result of (a) the breach by Salix of any of its representations or warranties set forth in
this Agreement, (b) Salix’s material breach of this Agreement, (c) any Third Party Claim made by any Person that the Manufacture and supply of the Compound in accordance with the terms hereof infringes, misappropriates or otherwise
violates the patent, trademark or other intellectual property rights of such Person, (d) any Third Party Claim made by any Person relating to or arising out of death, personal injury, or other product liability, related to the marketing, sale,
distribution or use of the Compound or Product and caused by the negligence of Salix or its subcontractors or agents and (e) the enforcement by Lupin of its rights under this Section 7.2, except, in each case, for those Losses for which
Lupin has an obligation to indemnify the Salix Indemnified Parties pursuant to Section 7.1, as to which Losses each Party shall indemnify the other Party to the extent of its respective liability for such Losses. 
 7.3 Indemnification Procedure. 
 (a) Notice of Claim. The indemnified party (the “Indemnified Party”) shall give the indemnifying Party (the “Indemnifying Party”) prompt written notice (an
“Indemnification Claim Notice”) of any Losses or discovery of facts upon which such Indemnified Party intends to base a request for indemnification under Section 7.1 or 7.2, but in no event shall the Indemnifying Party be
liable for any Losses that result from any delay in providing such notice. Each Indemnification Claim Notice must contain a description of the claim and the nature and amount of such Loss (to the extent that the nature and amount of such Loss are
known at such time). The Indemnified Party shall furnish promptly to the Indemnifying Party copies of all papers and official documents received in respect of any Losses. 
 (b) Third Party Claims. The obligations of an Indemnifying Party under this Article VII with respect to Losses arising
from claims of any third Person that are subject to indemnification as provided for in Section 7.1 or 7.2 (a “Third Party Claim”) shall be governed by and be contingent upon the following additional terms and conditions:

 (i) Control of Defense. At its option, the Indemnifying Party may assume the defense of any Third Party Claim by giving
written notice to the Indemnified Party within thirty (30) days after the Indemnifying Party’s receipt of an Indemnification Claim Notice. The assumption of the defense of a Third Party Claim by the Indemnifying Party shall not be
construed as an acknowledgment that the Indemnifying Party is liable to indemnify any Indemnified Party in respect of the Third Party Claim, nor shall it constitute a waiver by the Indemnifying Party of any defenses it may assert against any
Indemnified Party’s claim for indemnification. Upon assuming the defense of a Third Party Claim, the Indemnifying Party may appoint as lead counsel in the defense of the Third Party Claim any legal counsel selected

  

 25 

 
by the Indemnifying Party, which shall be reasonably acceptable to the Indemnified Party. In the event the Indemnifying Party assumes the defense of a Third Party Claim, the Indemnified Party
shall immediately deliver to the Indemnifying Party all original notices and documents (including court papers) received by any Indemnified Party in connection with the Third Party Claim. Subject to clause (ii) below, if the Indemnifying Party
assumes the defense of a Third Party Claim, the Indemnifying Party shall not be liable to the Indemnified Party for any legal expenses subsequently incurred by such Indemnified Party in connection with the analysis, defense or settlement of the
Third Party Claim. In the event that it is ultimately determined that the Indemnifying Party is not obligated to indemnify, defend or hold harmless a Salix Indemnified Party or Lupin Indemnified Party, as applicable, from and against the Third Party
Claim, the Indemnified Party shall reimburse the Indemnifying Party for any and all costs and expenses (including reasonable attorneys’ fees and costs of suit) and any Losses incurred by the Indemnifying Party in its defense of the Third Party
Claim with respect to such Salix Indemnified Party or Lupin Indemnified Party, as applicable. 
 (ii) Right to Participate in
Defense. Without limiting Section 7.3(b)(i), any Indemnified Party shall be entitled to participate in, but not control, the defense of such Third Party Claim and to employ counsel of its choice for such purpose; provided, however, that
such employment shall be at the Indemnified Party’s own expense unless (A) the employment thereof has been specifically authorized by the Indemnifying Party in writing, (B) the Indemnifying Party has failed to assume the defense and
employ counsel in accordance with Section 7.3(b)(i) (in which case the Indemnified Party shall control the defense), or (C) the interests of the Indemnified Party and the Indemnifying Party with respect to such Third Party Claim are
sufficiently adverse to prohibit the representation by the same counsel of both parties under applicable law, ethical rules or equitable principles. 
 (iii) Settlement. With respect to any Losses relating solely to the payment of money damages in connection with a Third Party Claim and that will not result in the Indemnified Party’s becoming
subject to injunctive or other relief or otherwise adversely affect the business of the Indemnified Party in any manner, and as to which the Indemnifying Party shall have acknowledged in writing the obligation to indemnify the Indemnified Party
hereunder, the Indemnifying Party shall have the sole right to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss, on such terms as the Indemnifying Party, in its sole discretion, shall deem
appropriate. With respect to all other Losses in connection with Third Party Claims, where the Indemnifying Party has assumed the defense of the Third Party Claim in accordance with Section 7.3(b)(i), the Indemnifying Party shall have authority
to consent to the entry of any judgment, enter into any settlement or otherwise dispose of such Loss; provided that it obtains the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned
or delayed). The Indemnifying Party shall not be liable for any settlement or other disposition of a Loss by an Indemnified Party that is reached without the written consent of the Indemnifying Party. Regardless of whether the Indemnifying Party
chooses to defend or prosecute any Third Party Claim, no Indemnified Party shall admit any liability with respect to, or settle, compromise or dispose of, any Third Party Claim without the prior written consent of the Indemnifying Party (which
consent shall not be unreasonably withheld, conditioned or delayed). 
  

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 (iv) Cooperation. If the Indemnifying Party chooses to defend or prosecute any Third Party
Claim, the Indemnified Party shall cooperate in the defense or prosecution thereof and shall furnish such records, information and testimony, provide such witnesses and attend such conferences, discovery proceedings, hearings, trials and appeals as
may be reasonably requested in connection therewith. Such cooperation shall include access during normal business hours afforded to the Indemnifying Party to, and reasonable retention by the Indemnified Party of, records and information that are
reasonably relevant to such Third Party Claim, and making employees and agents available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and the Indemnifying Party shall reimburse
the Indemnified Party for all its reasonable out-of-pocket expenses in connection therewith. 
 (v) Expenses. Except as provided
above, the reasonable and verifiable costs and expenses, including fees and disbursements of counsel, incurred by the Indemnified Party in connection with any Third Party Claim shall be reimbursed on a calendar quarter basis in arrears by the
Indemnifying Party, without prejudice to the Indemnifying Party’s right to contest the Indemnified Party’s right to indemnification and subject to refund in the event the Indemnifying Party is ultimately held not to be obligated to
indemnify the Indemnified Party. 
 7.4 Insurance. 
 (a) Each Party shall maintain (i) comprehensive general liability insurance with a combined single limit for bodily
injury and property damage of not less than [*] United States Dollars ($[*]) and (ii) product liability/completed operations coverage with a per claim limit of not less than [*] United States Dollars ($[*])
(collectively, the “Policies”). If any Policy is written on a claims-made basis, the retroactive date, if any, shall not be later than the Effective Date of this Agreement. In addition, such coverage shall be continued in full force
throughout the Term of this Agreement and for a period of [*] ([*]) years thereafter and neither Party’s Policies shall be canceled or subject to a reduction of coverage or any other modification without written notice to the
other Party. 
 (b) Each Party shall furnish certificates of insurance for its Policies to the other Party within
ten (10) days after the Effective Date. 
 7.5 Limitation on Damages. EXCEPT WITH RESPECT TO THE [*] OR
INTENTIONAL MISCONDUCT OF A PARTY, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING BUSINESS INTERRUPTION OR LOST PROFITS, WHETHER IN CONTRACT, WARRANTY,
NEGLIGENCE, TORT, STRICT LIABILITY OR OTHERWISE; PROVIDED, HOWEVER, THAT THIS EXCLUSION IS NOT INTENDED TO, NOR SHALL IT, EXCLUDE DAMAGES OWED TO THIRD PARTIES. 
  

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 ARTICLE VIII. MISCELLANEOUS 
 8.1 Notices. All notices, requests and other communications hereunder must be in writing, specifically reference this Agreement in a
prominent manner, and be delivered personally or by recognized international courier to the Parties at the following addresses: 
 If to Salix to: 
 Salix Pharmaceuticals, Inc. 
 1700 Perimeter Park Drive 
 Morrisville, North Carolina 27560 
 Attention: AVP, Pharmaceutical Development and Manufacturing 
 with copies (which shall not constitute notice) to: 
 Salix Pharmaceuticals, Inc. 
 1700 Perimeter Park Drive 
 Morrisville, North Carolina 27560 
 Attention: General Counsel 
 and 
 Covington & Burling LLP 
 1201 Pennsylvania Avenue, N.W. 
 Washington, D.C. 20004 
 Attention: Edward C. Britton, Esq. 
 If to Lupin to: 
 Lupin Limited 
 “B” Wing, Fifth Floor 
 Bandra Kuria Complex 
 Mumbai - 400 051, India 
 Attention: Managing Director 
 with a copy to: 
 Lupin Pharmaceuticals, Inc. 
 Harborplace Tower 
 111 S. Calvert Street, 21st Floor 
 Baltimore, MD 21202 
 Attention: Vinita Gupta 
 with a copy (which shall not constitute notice) to: 
  

 28 

 DLA Piper LLP (US) 
 The Marbury Building 
 6225 Smith Avenue 
 Baltimore, MD 21209 
 Attention: Howard S. Schwartz, Esq. 
 All such notices, requests and other communications will
(a) if delivered personally to the address as provided in this Section, be deemed given upon receipt, and (b) if delivered by courier to the address as provided in this Section 8.1, be deemed given upon receipt. Any Party from time to
time may change its address or other information for the purpose of notices to that Party by giving notice specifying such change to the other Party hereto. 
 8.2 Force Majeure. Neither Party shall be liable for delay in delivery or nonperformance in whole or in part (other than a failure to pay any amount due hereunder), nor shall the other Party have
the right to terminate this Agreement except as otherwise specifically provided in this Section 8.2, where delivery or performance has been affected by a condition beyond such Party’s reasonable control, including fires, floods, embargoes,
shortages, epidemics, quarantines, war, acts of war (whether war be declared or not), terrorism, insurrections, riots, civil commotion, strikes, lockouts or other labor disturbances, acts of God or acts, omissions or delays in acting by any
governmental authority; provided that the Party affected by such a condition shall, within [*] ([*]) days of its occurrence, give notice to the other Party stating the nature of the condition, its anticipated duration and any
action being taken to avoid or minimize its effect. The suspension of performance shall be of no greater scope and no longer duration than is reasonably required and the nonperforming Party shall use commercially reasonable efforts to remedy its
inability to perform. Notwithstanding the foregoing, in the event the suspension of performance continues for [*] ([*]) days after the date of the occurrence, and such failure to perform would constitute a material breach of this
Agreement in the absence of such force majeure event, the nonaffected Party may terminate this Agreement immediately by written notice to the affected Party. 
 8.3 Entire Agreement; Amendment. This Agreement, together with the Schedules and Exhibits attached hereto, sets forth and constitutes the entire agreement and understanding between the Parties with
respect to the subject matter hereof and all prior agreements, understandings, promises and representations, whether written or oral, with respect thereto are superseded hereby. Each Party confirms that it is not relying on any representations or
warranties of the other Party except as specifically set forth herein. No amendment, modification, release or discharge shall be binding upon the Parties unless in writing and duly executed by authorized representatives of both Parties. 

8.4 Further Assurances. Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further
instruments and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and instruments as may be necessary or as the other Party may reasonably request in connection with this Agreement
or to carry out more effectively the provisions and purposes hereof or to better assure and confirm unto such other Party its rights and remedies under this Agreement. 
  

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 8.5 Successors and Assigns. The terms and provisions hereof shall inure to the
benefit of, and be binding upon, Salix, Lupin and their respective successors and permitted assigns. 
 8.6 Dispute
Resolution. Any dispute, controversy or claim arising out of or relating to this Agreement or the breach, termination or validity thereof (each, a “Dispute”), shall be referred to a senior executive of each Party;
provided that each such senior executive is not involved in such Dispute. Such senior executives shall meet for attempted resolution of such Dispute by good faith negotiations within thirty (30) days after such Dispute is referred to
such senior executives. If the Dispute remains unresolved after such thirty (30)-day negotiation period, then, at the election of either Party, such Dispute shall be decided by litigation. Any such litigation shall be pursued in accordance with
Section 8.7; provided that any dispute regarding the validity, scope, enforceability, inventorship or ownership of intellectual property rights shall be submitted by either Party to a court of competent jurisdiction in the country in
which such rights apply. 
 8.7 Governing Law; Jurisdiction; Venue; Service. 
 (a) This Agreement shall be governed and interpreted in accordance with the law of the State of New York, excluding any
conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. The Parties agree to exclude the application to this Agreement of the United
Nations Convention on Contracts for the International Sale of Goods. 
 (b) Subject to Section 8.6, each
Party irrevocably and unconditionally consents to the exclusive jurisdiction of the courts of general jurisdiction of the State of New York and the United States District Court for the Southern District of New York sitting in the Borough of
Manhattan (collectively, the “Courts”) for any action, suit or proceeding (other than appeals therefrom) concerning any matter arising out of or relating to this Agreement, and agrees not to commence any action, suit or proceeding (other
than appeals therefrom) related thereto except in such Courts. 
 (c) Each Party hereto further hereby
irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding (other than appeals therefrom) arising out of or relating to this Agreement in the Courts and hereby further irrevocably and
unconditionally agrees not to raise any objection at any time to the laying or maintaining of the venue of any such action, suit or proceeding in any of such Courts, irrevocably waives any claim that such action, suit or other proceeding has been
brought in an inconvenient forum and further irrevocably waives the right to object, with respect to such action, suit or other proceeding, that such Court does not have any jurisdiction over such Party. 
 (d) Each Party hereto further agrees that, to the maximum extent permitted by Applicable Law, service of any process,
summons, notice or document by United States registered mail to its address and contact person for notices provided for in

  

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Section 8.1 shall be effective service of process for any action, suit or proceeding brought against it under this Agreement in any of the Courts. 
 (e) Lupin hereby designates, appoints and empowers Lupin Pharmaceuticals, Inc., with an office located at Harborplace Tower,
111 S. Calvert Street, 21st Floor, Baltimore, MD 21202, U.S.A., as its designee, appointee and agent to receive, accept and forward for and on its behalf, and it properties, assets and revenues, service of any and all legal process, summons, notices
and documents which may be served in any action, suit or proceeding arising out of or relating to this Agreement or any of the transactions or services contemplated hereunder that is brought in the Courts which may be made on any designee, appointee
and agent in accordance with legal procedures prescribed in such Courts. If for any reason such designee, appointee and agent hereunder shall not be available to act as such, then Lupin agrees to designate a new designee, appointee or agent in the
City of New York on the terms and for the purposes of this paragraph (e). Lupin further hereby consents and agrees to the service of any and all legal process, summons, notices and documents out of any of the Courts in any such action, suit or
proceeding by serving a copy thereof upon the agent for service of process referred to in this paragraph (e) (whether or not the appointment of such agent shall for any reason prove to be ineffective or such agent shall accept or acknowledge
such service) coupled with mailing of copies thereof in accordance with paragraph (d), above. Lupin agrees that the failure of any such designee, appointee or agent to give any notice of such service to it shall not impair or affect in any way the
validity of such service or any judgment rendered in any action or proceeding based thereon. 
 8.8 Audit; Late Payments.

 (a) Each Party shall have the right to have an independent certified public accounting film of internationally
recognized standing, and reasonably acceptable to the other Party, provided with access by such other Party during normal business hours, and upon reasonable prior written notice, to examine only those records of such other Party (and its Affiliates
and Sublicensees) as may be reasonably necessary to determine, with respect to any Calendar Year ending not more than [*] ([*]) years prior to the auditing Party’s request, the correctness or completeness of any payment made or
statement submitted under this Agreement. Such examinations may not (i) be conducted more than once in any [*] ([*]) month period (unless a previous audit during such [*] ([*]) month period revealed an underpayment
with respect to such period or an incorrect statement submitted by the audited Party in respect of such period or the audited Party restates or revises such books and records for such period) or (ii) be repeated for any Calendar Year. Results
of such audit shall (i) be (A) limited to information relating to the Compound and Products, (B) made available to both Parties in writing, and (C) subject to Article V and (ii) not reveal any specific information of the
audited Party to the auditing Party other than (A) whether the audited Party is in compliance with its payment obligations under this Agreement or whether statements submitted by the audited Party under this Agreement are true and correct, as
the case may be, and (B) the amount of any additional payment owed to the auditing Party or excess payment reimbursable to the 
  
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audited Party or any correction to statements submitted by the audited Party under this Agreement, as the case may be. Except as provided below, the cost of this examination shall be borne by the
auditing Party, unless the audit reveals a variance of more than five percent (5%) from the reported amounts, in which case the audited Party shall bear the cost of the audit. Unless disputed pursuant to Section 8.8(b), if such audit
concludes that additional payments were owed or that excess payments were made during such period, the audited Party shall pay the additional amounts, with interest from the date originally due as provided in Section 8.8(c), or the auditing
Party shall reimburse such excess payments, with interest from the date of original payment as provided in Section 8.8(c), within sixty (60) days after the date on which such auditor’s written report is delivered to the Parties.

 (b) In the event of a Dispute of any audit under Section 8.8, Lupin and Salix shall work in good faith to
resolve the disagreement. If the Parties are unable to reach a mutually acceptable resolution of any such Dispute within thirty (30) days, the Dispute shall be resolved in accordance with Section 8.6. 
 (c) If any payment due to a Party under this Agreement is not paid when due, then the owing Party shall pay interest thereon
(before and after any judgment) at an annual rate (but with interest accruing on a daily basis) equal to the lesser of (a) the prime rate as reported on the first business day of each month such payment is overdue in The Wall Street
Journal, Eastern Edition, plus [*] ([*]) percentage points, and (b) the maximum rate permitted by Applicable Law. Interest payable under this Section 8.8(c) shall run from the date upon which payment of the relevant
principal sum became due through the date of payment thereof in full together with such interest. 
 8.9 Third Party
Beneficiaries. Nothing in this Agreement shall be construed as giving any Person, other than the Parties hereto and their successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provision hereof.

 8.10 Export Control. This Agreement is made subject to any restrictions concerning the export of products or technical
information from the United States or other countries that may be imposed on the Parties from time to time. Each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this
Agreement or any products using such technical information to a location or in a manner that at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the appropriate
agency or other governmental entity in accordance with Applicable Law. 
 8.11 Assignment. Except as expressly provided
herein, neither Party may, without the prior written consent of the other Party, sell, transfer, assign, delegate, pledge, subcontract or otherwise dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or
any of its rights or duties hereunder; provided, however, that (a) Salix may, without such consent, assign this Agreement and its rights and obligations hereunder to an Affiliate or to the purchaser or sublicensee of Salix’s rights
in and to the Compound or any 
  
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requested; certain information omitted and filed separately with the SEC. 
  

 32 

 
Product, (b) Lupin may, without such consent, assign this Agreement and its rights and obligations hereunder to one or more Affiliates, and (c) either Party may, without such consent,
assign this Agreement and its rights and obligations hereunder to the purchaser of all or substantially all of its assets or to any successor entity or acquirer in the event of a merger, consolidation or change in control of such Party. Any attempt
to assign, transfer, subcontract or delegate any portion of this Agreement in violation of this Section shall be null and void. All validly assigned and delegated rights and obligations of the Parties hereunder shall be binding upon and inure to the
benefit of and be enforceable by and against the successors and permitted assigns of Salix or Lupin, as the case may be. In the event either Party assigns or delegates its rights or obligations to another Person in accordance with the terms hereof,
the assignee or transferee shall assume all obligations of its assignor or transferor under this Agreement and the assignor or transferor shall cease to be a party to this Agreement and shall cease to have any rights or obligations under this
Agreement from and after the effective date of such assignment. No such assignment or delegation shall relieve the assignor or transferor of any of its obligations hereunder. Notwithstanding the foregoing, Lupin shall have the right, from time to
time and without the necessity of providing notice to or obtaining the consent of Salix, to delegate, assign, or subcontract to any Affiliate, certain of Lupin’s rights or responsibilities under this Agreement. In all cases, Lupin shall remain
the contract Party under this Agreement and shall remain responsible to Salix for the performance of all such obligations under this Agreement. 
 8.12 Waiver. Any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a
written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by either Party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the
same or any other term or condition of this Agreement on any future occasion. 
 8.13 Severability. If any provision of
this Agreement is held to be illegal, invalid or unenforceable under any present or future law, and if the rights or obligations of either Party under this Agreement will not be materially and adversely affected thereby, (a) such provision
shall be fully severable, (b) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom, and (d) in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of
this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and reasonably acceptable to the Parties herein. 
 8.14 Independent Contractors. The status of the Parties under this Agreement shall be that of independent contractors. Nothing in
this Agreement is intended or shall be deemed to constitute a partnership, agency, employer, employee, or joint venture relationship between the Parties. Neither Party shall have the right to enter into any agreements on behalf of the other Party,
nor shall it represent to any Person that it has any such right or authority. 
 8.15 Construction. Unless the context of
this Agreement otherwise requires: (a) words of any gender include each other gender; (b) words using the singular or plural number also include the plural or singular number, respectively; (c) the terms “hereof,”
“herein,” “hereby”

  

 33 

 
and derivative or similar words refer to this entire Agreement; (d) the terms “Article,” “Section,” “Schedule,” “Exhibit” or “clause” refer
to the specified Article, Section, Schedule, Exhibit or clause of this Agreement; (e) the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”; (f) the term
“including” or “includes” means “including without limitation” or “includes without limitation”; and (g) references to any agreement, instrument or other document in this Agreement refer to such
agreement, instrument or other document as originally executed or, if subsequently amended, replaced or supplemented from time to time, as so amended, replaced or supplemented and in effect at the relevant time of reference thereto. Whenever this
Agreement refers to a number of days, such number shall refer to calendar days unless business days are specified. The captions of this Agreement are for convenience of reference only and in no way define, describe, extend, or limit the scope or
intent of this Agreement or the intent of any provision contained in this Agreement. The language of this Agreement shall be deemed to be the language mutually chosen by the Parties and no rule of strict construction shall be applied against either
Party. 
 8.16 Remedies. The rights and remedies provided herein are cumulative and do not exclude any other right or
remedy provided by applicable law or otherwise available except as expressly set forth herein. 
 8.17 Counterparts;
Facsimile Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which, taken together, shall constitute one and the same instrument. Delivery of an executed
counterpart of a signature page of this Agreement (and each amendment, modification and waiver in respect of it) by facsimile or other electronic transmission shall be as effective as delivery of a manually executed original counterpart of each such
instrument. 
 8.18 English Language. This Agreement shall be written and executed in, and all other communications under
or in connection with this Agreement shall be in, the English language. Any translation into any other language shall not be an official version thereof, and in the event of any conflict in interpretation between the English version and such
translation, the English version shall control. 
 [The remainder of this page has been intentionally left blank.]

  

 34 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective as of
the Effective Date. 
  

									
	SALIX PHARMACEUTICALS, INC.	 		 	LUPIN LTD.
					
	By:	 	 /s/ Carolyn J. Logan
	 		 	By:	 	 /s/ Nilesh Gupta

					
	Name:	 	 Carolyn J. Logan
	 		 	Name:	 	 Nilesh Gupta

					
	Title	 	 President and CEO
	 		 	Title:	 	 Group President

 Schedule 2.9(a) 
 Current Capacity 
 Manufacture and supply in
accordance with the terms of this Agreement of not less than [*] of Compound per Calendar Year. 
  
  
  

	*	Confidential treatment requested; certain information omitted and filed separately with the SEC.Intellectual Property Transfer and License Agreement

 Exhibit 10.1 
 CONFIDENTIAL TREATMENT REQUESTED – CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION. 
 *** INDICATES CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 
 INTELLECTUAL PROPERTY 
 TRANSFER AND LICENSE
AGREEMENT 
 Between 
 NXP B.V. 
 And 
 Virage Logic Corporation 
 Dated [—][—] 2009 

 Contents 
  

					
	 Clause
	  		  	Page
			
	Annexes	  		  	
			
	 Annex A
	  	Transferred IP Blocks	  	
	 Annex B
	  	Transferred IP Tools	  	
	 Annex C
	  	Transferred Software	  	
	 Annex D
	  	Transferred Patents	  	
	 Annex E
	  	CoReUse Documentation	  	
	 Annex F
	  	NXP CoReUse Trademarks	  	
	 Annex G
	  	NXP Tools	  	
	 Annex H
	  	Royalty Reporting	  	
	 Annex I
	  	Purchaser Competitors	  	
	 Annex J
	  	Seller’s Trademark Usage Guidelines	  	
	 Annex K
	  	Seller Designated Bank Account	  	
	 Annex L
	  	High Level IP Block Obligations and Restrictions	  	
	 Annex M
	  	Revenue Sharing Deductible Costs	  	
	 Annex N
	  	Patent Assignment	  	
	 Annex O
	  	Tape-Out Report	  	

  

 Page 2/43 

 INTELLECTUAL PROPERTY TRANSFER AND LICENSE AGREEMENT 
 THE UNDERSIGNED: 
  

	 	(1)	NXP B.V., a limited liability company incorporated under the laws of the Netherlands, with corporate seat in Eindhoven, the Netherlands, and having its address
at High Tech Campus 60, 5656 AG Eindhoven, the Netherlands, (“Seller”); and 

  

	 	(2)	Virage Logic Corporation, a corporation incorporated under the laws of Delaware, USA, and having its address at 47100 Bayside Parkway, Fremont, California 94538,
USA (“Purchaser”); 

 WHEREAS: 
  

	 	(A)	Seller and Purchaser have entered into that certain Asset Purchase Agreement dated October 9, 2009 (the “Asset Purchase Agreement”) relating to the
sale and transfer to Purchaser of the Operations (as defined in the Asset Purchase Agreement) by Seller; and 

  

	 	(B)	by this Agreement, the Parties wish to set out the terms and conditions applicable to the licensing, assignment and transfer of certain materials and intellectual
property between the Parties in connection with the foregoing; 

 NOW THEREFORE, in consideration of the premises,
and of the mutual covenants and agreements contained herein and in the Asset Purchase Agreement and other Ancillary Agreements, the Parties hereby agree as follows: 
  

	1	INTERPRETATION 

  

	1.1	Definitions 

 When used in
this Agreement, the following capitalised terms shall have the meanings set forth below. Any capitalised term used in this Agreement but not defined herein, shall have the meaning ascribed thereto in the Asset Purchase Agreement. 
 “Agreement” means this Intellectual Property Transfer and License Agreement (including all Annexes hereto), as the same may
be amended or supplemented from time to time in accordance with the provisions hereof. 
 “Asset Purchase
Agreement” has the meaning set forth in the recitals to this Agreement. 
 “Combination Versions” means
any derivative work of a Transferred IP Block or Transferred Software (or any derivative of such derivative) other than a Successor Version. 
 “Confidential Information” has the meaning set forth in clause 7.1 below. 
  

 Page 3/43 

 “CoReUse” means Seller’s certification standard for re-usability of IP
Blocks and software as set forth in Seller’s documents at the Closing Date, included by reference in Annex E hereto, as may be reasonably updated by Seller from time to time after the Closing Date. 
 “Covered Products” means IC Products (including tangible products embodying High-Level IP Blocks), and software embedded in
or executed on such IC Products or designed and used for testing IC Products. 
 “Customer Activities” means to
design, have designed, make, have made, use, import, export, offer for sale, sell and/or otherwise dispose of Transferred IP IC Products and Successor and Combination Version IC Products. 
 “Deductible Costs” has the meaning set forth in Section 5.2 below. 
 “Divested Company” of any Person means any former Affiliate of a Person (whether such Person is now or hereafter an
Affiliate thereof) as and from the moment it no longer qualifies as an Affiliate hereunder because of a sale, conveyance, split-off, spin-off or other transfer of all or a portion of such Person’s interest in such Affiliate, or any former
unincorporated business or division of such Person (whether such business or division is now or hereafter a business of such Person) as and from the moment it is divested by the Person to a transferee that is not an Affiliate of such Person, it
being understood that a Divested Company shall include a Person, unincorporated business or division that becomes a former Affiliate, unincorporated business or division after the date of the Asset Purchase Agreement, it being further
understood that a Divested Company shall not include any Person, unincorporated business or division that becomes a former Affiliate, unincorporated business or division if at any time it was previously a Divested Company. 
 “High-Level IP Block” means an IP Block or a System on Chip that contains Purchaser Licensed IP plus material added by
Seller. 
 “IC Products” mean hardware semiconductor integrated circuit wafers, chips, dies and systems, which
systems include multi-chip modules, systems in package and dies on substrate, PCB or similar material. 
 “Intellectual
Property Rights” means copyrights, database rights, mask work rights, semiconductor rights, design rights, trade secret rights, and all analogous and other similar rights existing under the laws of any jurisdiction in the world, and all
applications and registrations for the foregoing, but specifically excluding Patents and Trademarks. 
 “IP
Block” means an electronic circuit representing a component of a larger system on an integrated circuit. 
  

 Page 4/43 

 “IP Block Documentation” means for each Transferred IP Block, all
documentation owned by Seller or any of its Affiliates that consists of or otherwise comprises circuit diagrams on any level of abstraction applicable, all EDA views on any level of abstraction, silicon reports or equivalent proof of silicon
validation, datasheets, release notes, application notes, training materials and other technical documents and technical files applicable to such Transferred IP Block. For the avoidance of doubt, for the *** technology, all manuals, technical
guidelines and other technical documents and technical files that are owned by Seller or any of its Affiliates are included. 
 “IP Tool Documentation” means for each Transferred IP Tool, all documentation owned by Seller or any of its Affiliates that consists of or otherwise comprises manuals, technical guidelines and other technical documents and
technical files applicable to such Transferred IP Tool. 
 “Library Elements” means standard cells used in the
synthesis of RTL blocks that are part of the Transferred IP Blocks, other than standard cells contained in standard cell libraries listed in any of Annex A – C hereunder. 
 “Licensed IPRs” means any Intellectual Property Rights that are both (a) infringed by, or embodied or included in, any
of the Transferred Materials as provided hereunder, and (b) owned by Seller or any of its Affiliates between the date of the Asset Purchase Agreement and twelve (12) months following the Closing Date, other than Transferred IPRs.

 “Licensed Materials” means 
  

	 	(i)	for each Transferred IP Block, the portions of the applicable IP Block Documentation that directly relate to that Transferred IP Block and that are used by Seller or
any of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; 

  

	 	(ii)	for each Transferred IP Tool, the portions of the applicable IP Tool Documentation that directly relate to that Transferred IP Tool and that are used by Seller or any
of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; 

  

	 	(iii)	for each Transferred Software, the portions of the applicable Software Documentation that directly relate to that Transferred Software and that are used by Seller or
any of its Affiliates for (but not exclusively for) the Operations as of the Closing Date; and 

  

	 	(iv)	the NXP Tools; 

 which, for (i),
(ii) and (iii) above, shall include, for example, the applicable portions of Seller’s final IC Product documentation and documentation of subsystems (e.g., High-Level IP Blocks) that contain one or more of the Transferred IP Blocks,
Transferred IP Tools or Transferred Software. 
 “Licensed Patents” means the NXP Transferred Materials Patents
and the NXP Successor Version Patents. 
  

 Page 5/43 

 “NXP CoReUse Trademarks” means the Trademarks listed in Annex F hereto.

 “NXP Successor Version Patents” means any claims in any Patent (including any Patent that issues on any
Patent application filed during the time frame set forth in (b) below) that are both: 
  

	 	(a)	infringed by any Successor Versions developed by or on behalf of Purchaser or the manufacture, use, import, offer for sale or sale thereof, it being understood
that in each case NXP Successor Version Patents shall not include any claims in any Patents that read on any semiconductor manufacturing process; and 

  

	 	(b)	owned by Seller or its Affiliates at any time between the date of the Asset Purchase Agreement and *** (***) *** after the Closing Date. 

 “NXP Tools” means the tools listed in Annex G hereto, excluding the portions thereof not owned by Seller as set forth under
the heading “Third Party IP” in Annex G.  
 “NXP Transferred Materials Patents” means
any claims in any Patent that are both: 
  

	 	(a)	infringed by any of the Transferred Materials as furnished hereunder or any or the manufacture, use, import, offer for sale thereof, it being understood that NXP
Transferred Materials Patents shall not include any claims in any Patents that read on any semiconductor manufacturing process; and 

  

	 	(b)	owned by Seller or its Affiliates as of the date of the Asset Purchase Agreement or *** thereafter. 

 “Partial Combination Version” means that portion of a Combination Version that contains IP Blocks or software licensed, or
transferred or assigned by Seller hereunder. 
 “Patents” means any patents and patent applications, together
with all additions, divisions, continuations, continuations-in-part, substitutions, reissues, re-examinations, extensions, registrations, patent term extensions, supplemental protection certificates and renewals of any of the foregoing, in any
country of the world. 
 “Purchaser Competitor” means the Persons listed or otherwise described on Annex I
hereto. 
 “Purchaser Confidential Information” shall have the meaning set forth in clause 7.1. 
 “Purchaser Customer” shall have the meaning set forth in clause 2.4. 
 “Purchaser Indemnified Version” shall have the meaning set forth in clause 9.1.1. 
 “Purchaser Licensed IP” means the Transferred Materials, Transferred IPRs, Transferred Patents, Purchaser Successor
Versions, Purchaser Successor Version IPRs, the Purchaser Partial Combination Versions and the Purchaser Partial Combination Version IPRs. 
  

 Page 6/43 

 “Purchaser Partial Combination Version” means that portion of a Combination
Version that contains IP Blocks or software not licensed, or transferred or assigned by Seller hereunder. For purposes of this definition only, “Combination Versions” shall refer only to those Combination Versions made by or on
behalf of Purchaser or any of its Affiliates or otherwise owned by Purchaser or any of its Affiliates. 
 “Purchaser
Partial Combination Version IPRs” means any Intellectual Property Rights and any claims in any Patents that are both (i) infringed by, or embodied or included in, any of the Purchaser Partial Combination Versions and (ii) owned by
Purchaser or any of its Affiliates. 
 “Purchaser Successor Version” means any Successor Version made by or on
behalf of Purchaser or any of its Affiliates or otherwise owned by Purchaser or any of its Affiliates. 
 “Purchaser
Successor Version IPRs” means any Intellectual Property Rights and any claims in any Patents that are both (i) infringed by, or embodied or included in, any of the Purchaser Successor Versions and (ii) owned by Purchaser or any of
its Affiliates. 
 “Purpose” shall have the meaning set forth in clause 2.4. 
 “Receiving Party” shall have the meaning set forth in clause 7.1. 
 “Restricted Activities” shall have the meaning set forth in clause 5.4. 
 “Royalty Term” means the seven (7) year period after the Closing Date. 
 “Seller Confidential Information” shall have the meaning set forth in clause 7.1. 
 “Seller Indemnified Party” shall have the meaning set forth in clause 9.1.1. 
 “Seller Licensed Activity” shall have the meaning set forth in clause 2.2. 
 “Software Documentation” means for each Transferred Software, all documentation owned by Seller or any of its Affiliates
that consists of or otherwise comprises technical documents and technical files applicable to such Transferred Software. 
 “Successor and Combination Version IC Products” has the meaning set forth in clause 2.4. 
 “Successor Versions” means any derivative work of a Transferred IP Block or Transferred Software (or any derivative of such derivative) that contains no modifications of or improvements to such Transferred IP Block or
Transferred Software, other than modifications or improvements to the extent necessary to: 
  

	 	(a)	correct bugs or similar errors; 

  

 Page 7/43 

	 	(b)	adapt or port Transferred IP Blocks or Transferred Software, as applicable, to different or new production processes; 

  

	 	(c)	improve production yield or reduce manufacturing costs of Transferred IP Blocks or Transferred Software, as applicable, while retaining substantially similar
architecture and design; 

  

	 	(d)	implement a design shrink; or 

  

	 	(e)	include or support additional EDA tool views. 

 “Suspension Period” shall have the meaning set forth in clause 5.4. 
 “Trademarks” means trademarks, service marks, brand names, certification marks, collective marks, domain names, logos, symbols, trade dress, trade names and other indicia of origin, and all applications and registrations
for the foregoing. 
 “Transferred IP Blocks” means the IP Blocks listed in Annex A hereto. 
 “Transferred IP IC Products” has the meaning set forth in clause 2.4. 
 “Transferred IP Tools” means the IP Block-related tools, standards and re-use enablers listed in Annex B hereto. 

“Transferred IPRs” means any Intellectual Property Rights that (x) are misappropriated or infringed by, or embodied
or included in, any of the Transferred Materials as provided hereunder, (y) are owned by Seller or any of its Affiliates as of the Closing Date and (z) are used exclusively in connection with or for the Purpose as of the Closing Date.

 “Transferred Materials” means: 
  

	 	(i)	(x) the Transferred IP Blocks in source code format and (y) all of the applicable IP Block Documentation that are used by Seller or any of its Affiliates in
their respective conduct of the Operations as of the Closing Date; 

  

	 	(ii)	(x) the Transferred IP Tools, (y) all code (including executable and source code) therein, and (z) all of the applicable IP Tool Documentation that are
used by Seller or any of its Affiliates in their respective conduct of the Operations as of the Closing Date; and 

  

	 	(iii)	(x) the Transferred Software and (y) all of the applicable Software Documentation that are used by Seller or any of its Affiliates in their respective conduct
of the Operations as of the Closing Date, 

 in each case other than the Licensed Materials. 
 “Transferred Materials Infringement Claim” shall have the meaning set forth in clause 5.5.1. 
  

 Page 8/43 

 “Transferred Materials Infringement Claim Costs” shall have
the meaning set forth in clause 5.5.1. 
 “Transferred Patents” means the Patents listed in Annex D hereto.

 “Transferred Software” means the software listed in Annex C hereto. 
 “US/Netherlands Treaty” means the Convention Between the United States of America and the Kingdom of the Netherlands for the
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes and Income, as amended and as in effect as of the date of this Agreement. 
  

	1.2	References 

  

	 	1.2.1	Any reference in this Agreement to a liability or obligation of Seller shall be deemed to incorporate an obligation on the part of Seller to procure that the relevant
liability is discharged or obligation is performed by Seller’s relevant Affiliates, subject to the terms set out in this Agreement. 

  

	 	1.2.2	Any reference in this Agreement to a liability or obligation of Purchaser shall be deemed to incorporate an obligation on the part of Purchaser to procure that the
relevant liability is discharged or obligation is performed by Purchaser’s relevant Affiliates, subject to the terms set out in this Agreement. 

  

	 	1.2.3	Any reference in this Agreement to a license granted to Seller shall be deemed to incorporate the same license to Seller’s relevant Affiliates, subject to the
terms set out in this Agreement. 

  

	 	1.2.4	Any reference in this Agreement to a license granted to Purchaser shall be deemed to incorporate the same license to Purchaser’s relevant Affiliates, subject to
the terms set out in this Agreement. 

  

	 	1.2.5	Whenever used in this Agreement, the words “include”, “includes” and “including” and variations thereof shall not be deemed to be terms of
limitation, and shall be deemed to be followed by the words “without limitation”. 

  

	1.3	Drafting party 

 No
provision of this Agreement shall be interpreted against a Party solely as a result of the fact that such Party was responsible for the drafting of such provision, it being acknowledged that the Parties and representatives of the Parties have
participated in the drafting and negotiating of this Agreement. 
  

	1.4	Headings and references 

 The clause and paragraph headings and table of contents contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 
  

 Page 9/43 

	2	TRANSFER AND LICENSE 

  

	2.1	Transferred Materials, IPRs and Patents 

 Subject to the terms and conditions of this Agreement, Seller hereby assigns, transfers and conveys to [Purchaser] the Transferred Materials, the Transferred IPRs and the Transferred Patents, and
Purchaser hereby accepts the assignment of the Transferred Materials, Transferred IPRs and Transferred Patents. 
  

	2.2	License Back 

  

	 	(a)	Purchaser hereby grants to Seller a non-exclusive, irrevocable, perpetual, nonterminable, world-wide, royalty-free (except pursuant to clause 2.2(b)(iii) below) and
fully-paid up (except pursuant to clause 2.2(b)(iii) below) license, without the right to sublicense except as expressly set forth in clauses 2.2(b), (c) and (d) below, to and under the Purchaser Licensed IP to: 

 

	 	(i)	as applicable, use, have used, modify, have modified, improve, have improved, create and have created derivative works thereof; 

  

	 	(ii)	manufacture, have manufactured, make, have made, design, have designed and use Covered Products; 

  

	 	(iii)	offer to sell, sell, have sold, import, have imported, export, have exported, copy, have copied, distribute or otherwise dispose of IC Products included in such Covered
Products; and 

  

	 	(iv)	offer to license, have licensed and license, import, have imported, export, have exported, copy and have copied High-Level IP Blocks or any software included in such
Covered Products. 

 For the avoidance of doubt, all “have” rights set forth in this clause (a) are
limited to the right to have third parties, including contract manufacturers, use such rights solely on behalf of Seller or any of its Affiliates or any of their respective permitted sublicensees. On a quarterly basis (for the duration of the
Services Period (as defined in the Technology Services Agreement) and to the extent not previously delivered, Purchaser, at its own expense, shall deliver to Seller the source code portions of any software included in the Purchaser Licensed IP. The
source code shall include updated schematics (to the extent schematics were originally provided by Seller to Purchaser), along with fully documented human-readable source code, including programmer’s notes, flow charts, logic diagrams and other
such materials and documentation, in each case to the extent available. For the avoidance of doubt, Seller shall be entitled to sublicense and deliver to any sublicensee permitted by this Agreement, the source code and related materials described in
the

  

 Page 10/43 

	 	 
previous two sentences, and to grant to such sublicensee a sublicense to such source code and materials consistent with the rights set forth in clause 2.2(a)(i) through (iv) above, but
limited to the scope of such sublicense (including as required by clause 2.2(c) below, as applicable). 

  

	 	(b)	Subject to the restrictions set forth in clause 2.2(d) below, Seller shall have the right to sublicense: 

  

	 	(i)	all or part of the rights set forth in clause (a) above to Divested Companies of Seller at the applicable time of such divestment (or a direct or indirect parent
company thereof (for use solely with respect to the Divested Company as provided herein)) (subject to the restrictions set forth below in clause 2.2(c) below), including the right to further sublicense in accordance with clause 2.2(b)(iii) below;

  

	 	(ii)	all or part of the rights set forth in clause 2.2(a) above solely with respect to *** to third parties in connection with *** or similar programs or *** programs in
which Seller or any of its Affiliates is or may be a participant from time to time, whether now or in the future, to the extent such licenses are required as a condition to participation in such programs and such sublicensed third parties have no
right to *** without reference to or use in the applicable ***; 

  

	 	(iii)	all or part of the rights set forth in clause 2.2(a) above solely with respect to *** to third parties, subject to the payment and other obligations set forth in Annex
L hereto), it being understood that such third parties shall have the right to use, have used, modify, have modified, improve, have improved, create and have created ***, manufacture, have manufactured, make, have made, design, have designed
and use ***, and to offer to sell, sell, have sold, import, have imported, export, have exported, copy, have copied, distribute or otherwise dispose of such *** and such sublicensed third parties have no right to *** without reference to or use in
the applicable ***; 

  

	 	(iv)	all or part of the rights set forth in clause 2.2(a) above in the event of and following an uncured material breach by Purchaser of any material delivery milestone,
material breach of Support Services obligations with respect to Critical Error Corrections (each as defined in the Technology Services Agreement) or material breach of express breach of warranty remedy, in each case under the Technology Services
Agreement or a Statement of Work thereto, that is not cured within sixty (60) days after the conclusion of the breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement; 

  

	 	(v)	 all or part of the rights set forth in clause 2.2(a) above in the event of and following an uncured material breach by Purchaser of any material
delivery milestone,

  

 Page 11/43 

	 	 
material breach of Support Services obligation with respect to Critical Error Corrections or material breach of express breach of warranty remedy, in each case under the Services Agreement or a
Statement of Work thereto, that is not cured within one (1) day after the conclusion of the breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement, but solely to enable Seller or any of its Affiliates
to engage a third party to provide services to Seller or any of its Affiliates solely with respect to the Deliverable(s) that are the subject of such uncured material breach and provided that, in the event that Purchaser cures such material breach
within sixty (60) days after the conclusion of the breach resolution procedures set forth in Section 8.2.1 of the Technology Services Agreement, Seller’s right to sublicense and any sublicense granted under this clause 2.2(b)(v) shall
automatically terminate after the completion of such services by such third party; and 

  

	 	(vi)	*** (***) and *** (***) insofar as the Purchaser Licensed IP constitutes Deliverables (as defined in the Technology Services Agreement) that Seller is required to
provide to ***, as applicable, pursuant to that certain *** and the *** each in effect as of ***. 

 The rights in
clause 2.2(b)(i) above shall be further sublicensable one (1) time only by one (1) Divested Company of Seller relating to all or part of Seller’s *** (***) (such right to further sublicense to be granted at the time of divestment of
***) solely to a Divested Company of *** at the time of such divestment (as such Divested Company may organically grow or change from time to time), provided that such further sublicense contains the restrictions set forth in clauses
2.2(c)(i) and c(iii) below and is otherwise in compliance with all of the requirements set forth in this clause 2.2 (including clause 2.2(d) below and Annex L hereto). Any Divested Company sublicense will be transferable or assignable, in whole but
not in part, to any Affiliate of the sublicensee or to a third party as part of a merger, acquisition or sale of such sublicensee or substantially all of the business or assets of sublicensee related to the subject matter of this Agreement, as long
as the third party involved in such a merger, acquisition or sale is not a Purchaser Competitor and provided that such Affiliate or third party, as applicable, agrees in writing to be bound by all of the terms, conditions and provisions contained in
the applicable sublicense agreement required pursuant to clause (d) below. 
  

	 	(c)	(i) Except as set forth in clause 2.2(c)(ii) below, for each sublicense to or with respect to a Divested Company of Seller or a Divested Company of *** permitted
pursuant to clause 2.2(b) above, such sublicense shall be limited to exercising the rights in clauses 2.2(a)(i), (ii) and (iii) above only with respect to 

  

 Page 12/43 

	 	(I)	IC Products that have been Taped Out, IC Products under development, and High-Level IP Blocks and software of such Divested Company in existence, in each case as of the
date of divestiture, 

  

	 	(II)	any future IC Products, High-Level IP Blocks or software on then-current roadmaps of such Divested Company as of the date of divestiture, and 

 

	 	(III)	any derivatives or natural successors of the items specified in 2.2(c)(i)(I) and (II) above. 

  

	 	(ii)	In the event that Seller grants a sublicense to or with respect to *** under clause 2.2(b) above, such sublicense shall not be subject to the restrictions set forth in
clause 2.2(c)(i) above; provided, however, that the permitted one (1) time further sublicense by *** to a Divested Company of *** shall be subject to the restrictions set forth in clause 2.2(c)(i) above. 

 

	 	(iii)	Except as set forth in clause (c)(iv) below, no sublicense granted to a Divested Company pursuant to clause (i) or clause (ii) shall extend to any Person,
business, operation or activity with which any such Divested Company becomes combined or is merged. 

  

	 	(iv)	Notwithstanding clause (c)(iii) above, for so long as Seller does not *** to *** of the *** (***), if the *** on *** is *** set forth in the *** thereto or *** as long
as no other Person (other than controlled Affiliates of *** or Seller) is a *** and Seller (it being understood that, ***, the *** is the *** for purposes of this Agreement), Seller may enter into agreements extending the sublicense granted
with respect to *** to any Person, business, operation or activity with which *** is combined or is merged, but solely for the purpose of conducting the business of *** (and not for any other purpose). With respect to all other Divested Company
sublicenses hereunder, Purchaser shall consider in good faith any request by Seller to have the sublicense with respect to the applicable Divested Company extended to any Person, business, operation or activity with respect to which such Divested
Company is combined or is merged, but solely for the purpose of conducting the business of such Divested Company (and not for any other purpose). 

  

	 	(d)	Each sublicense granted under clause 2.2(b) shall be subject to a written sublicense agreement under which each sublicensee shall agree to the scope of sublicense and
the restrictions and other obligations set forth in this Agreement applicable to the rights sublicensed, including the applicable express restrictions referenced in clause 2.2 (c)(iii) and (c)(iv) above, and each such sublicense agreement shall

  

 Page 13/43 

	 	(i)	be governed by the same governing law and dispute resolution procedures and venue as set forth in this Agreement, and 

  

	 	(ii)	require that Purchaser be copied on all notices provided under such sublicense agreement. 

 Any such sublicense agreement shall also contain the terms and conditions set forth in clause 2.2(f) below and, if applicable, Annex L
hereto. Seller shall advise Purchaser in writing of each such sublicense and provide Purchaser with a copy of each sublicense agreement and any amendment or other modification thereto within thirty (30) days of execution of same. Further, each
sublicense agreement with or with respect to a Divested Company (not including the sublicense agreement with *** but including the sublicense agreement executed in connection with the exercise of *** of its permitted one (1) time further
sublicense to a Divested Company of ***) shall require such Divested Company to provide Purchaser with a copy of the roadmap applicable to such sublicense upon the written request of Purchaser. Any roadmap provided hereunder shall be kept strictly
confidential in files of Purchaser’s CEO and/or Vice President of Engineering marked “Highly Confidential” and access thereto and use thereof shall be restricted solely for the purposes of determining whether the scope of the
sublicense to, or the exercise of the sublicense by, the applicable Divested Company has been exceeded. Purchaser agrees that Seller shall have no liability for any acts or omissions of its permitted sublicensees; provided that as a condition
to Seller’s ability to sublicense its rights hereunder and its sublicensees’ ability to sublicense their permitted sublicensees, Seller agrees, and Seller shall cause each of its sublicensees hereunder to be obligated in writing to agree,
in the applicable written sublicense agreement between Seller and such sublicensee, that Purchaser shall be expressly named as an intended third party beneficiary of any such sublicense in the applicable sublicense agreement with the express right
to enforce such sublicense agreement in accordance with its terms. 
  

	 	(e)	 As between Purchaser and Seller, Seller shall exclusively own and retain all right, title and interest in and to any modifications, improvements,
updates and derivative works of the Purchaser Licensed IP (other than any Patents included therein) developed by or on behalf of Seller, any of its Affiliates or any sublicensee hereunder; provided, however, that with respect to any
claims in any Patent owned by Seller or any of its Affiliates at any time after the Closing Date that read on or are directed towards any such modifications, improvements, updates or derivative works that are developed by or on behalf of Seller or
any of its Affiliates, Seller shall automatically grant, and hereby does grant, without any additional requirement, including execution of a separate license agreement, to Purchaser a license under all such claims, which license shall be of the same
scope and for the same purposes as the license granted in clause 2.5 below, and for the avoidance of doubt, all such claims shall be deemed licensed to Purchaser under clause 2.5 below. The sublicense rights set forth herein shall be subject to the
applicable sublicensee

  

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automatically granting to Purchaser, ab initio, without any additional requirement, including execution of a separate license agreement, a license under any claims in any Patent owned by
such sublicensee at any time after the date such sublicense is granted to such sublicensee, that read on or are directed towards any modifications, improvements, updates or derivative works of the Purchaser Licensed IP made by or on behalf of such
sublicensee, which license shall be of the same scope and for the same purposes as the license granted in clause 2.5 below. 

  

	 	(f)	(i) No licensee or sublicensee under this Agreement shall delete or in any manner alter any intellectual property rights notices of Purchaser or its suppliers, if any,
appearing on the Purchaser Licensed IP. Each such licensee and sublicensee shall reproduce such notices in a substantially similar manner on each copy it makes of any Purchaser Licensed IP. 

  

	 	(ii)	Each licensee and sublicensee under this Agreement shall identify Purchaser on semiconductor manufacturers’ declaration forms as a licensor of the intellectual
property owned by Purchaser embodied in the Purchaser Licensed IP that is contained in such licensee’s or sublicensee’s products as produced by its semiconductor manufacturer(s). Each such licensee and sublicensee shall execute such
declaration as provided by each such semiconductor manufacturer to document the content of the Purchaser License IP in such products. Upon Purchaser’s request, the applicable licensee or sublicensee shall authorize the applicable semiconductor
manufacturer to provide information directly to Purchaser documenting the content of the Purchaser Licensed IP in such products. 

  

	 	(iii)	Each licensee under this Agreement acknowledges and agrees, and each sublicensee under this Agreement shall acknowledge and agree in the applicable sublicense
agreement, that (I) certain output generated by or on behalf of such licensee or sublicensee through use of certain Purchaser Licensed IP licensed to it hereunder may contain information that complies with the Virtual Component Identification
Physical Tagging Standard (VCID) as maintained by the Virtual Socket Interface Alliance (VSIA), (II) such information may be expressed in GDSII Layer 63 or other such layer designated by Purchaser, the VSIA, and hardware definition languages, or
other formats, and (III) it is not authorized to, and it shall not, alter or change any such information. 

  

	 	(iv)	 In the event a semiconductor manufacturer is manufacturing integrated circuits for any licensee or sublicensee using any of the Purchaser Licensed IP,
each such licensee and sublicensee shall provide to Purchaser reports once per quarter setting forth, for the previous quarter, the project tracking number used by the semiconductor manufacturer to identify Tape Outs (as defined in the Master
License Agreement) completed in such quarter using such Purchaser Licensed IP. The

  

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reports shall be sent via email to tapeout@viragelogic.com; provided, however, that Licensee may deliver such reports through the Steering Committee (as defined in the Technology Services
Agreement). A sample form of such report is included as Annex O hereto. 

  

	2.3	Effectuation 

  

	    	Seller will execute and deliver all files, assignments (including the Patent assignment set forth in Annex N hereto), and titles, evidence or authorisations as may be
required to vest, perfect, confirm, effectuate or to formalise the assignment, transfer and conveyance of the Transferred Materials, Transferred IPRs and Transferred Patents to Purchaser. Any other aspects concerning delivery by Seller of
Transferred Materials, Transferred IPRs and Transferred Patents to Purchaser shall be governed by the Umbrella Transitional Services Agreement. 

  

	2.4	Licensed Materials and IPRs 

 Subject to the terms and conditions of this Agreement (including clause 2.8), Seller hereby grants to Purchaser a personal, non-exclusive, non-transferable (except as set forth in clause 11), perpetual, irrevocable, non-terminable,
world-wide, royalty-free and fully paid-up license under the Licensed Materials and Licensed IPRs only for the purpose of the following (the following being referred to as the “Licensed Activities”), in each case only in connection
with CMOS silicon wafer manufacturing processes with a design rule of ninety (90) nanometers and smaller (and IC Products resulting from such processes) (the “Purpose”) and for no other purpose or use: 
  

	 	(a)	promoting, licensing, supplying, and providing maintenance and support services regarding, the Transferred IP Blocks and Transferred Software to Purchaser’s
downstream customers (each, a “Purchaser Customer”) (provided that these Purchaser Customers will be bound by confidentiality agreements no less restrictive than Purchaser’s confidentiality obligations hereunder) solely to
enable such customers to design, have designed, make, have made, use, import, export, offer for sale, sell or otherwise dispose of those portions of IC Products that contain Transferred IP Blocks or Transferred Software (such portions, the
“Transferred IP IC Products”); 

  

	 	(b)	developing Successor Versions and Partial Combinations Versions; 

  

	 	(c)	promoting, (sub)licensing, supplying, and providing maintenance and support services regarding, Successor Versions and Partial Combination Versions to Purchaser
Customers (provided that these Purchaser Customers will be bound by confidentiality agreements no less restrictive than Purchaser’s confidentiality obligations hereunder) solely to enable such customers to design, have designed, make, have
made, use, import, export, offer for sale, sell and/or otherwise dispose of those portions of IC Products that contain Successor Versions or Partial Combination Versions (such portions, the “Successor and Combination IC Products”);

  

 Page 16/43 

	 	(d)	using the Transferred IP Tools, and derivative works thereof, and the NXP Tools and other Licensed Materials related to the NXP Tools to configure Transferred IP Blocks
and any Successor Versions and Partial Combination Versions; and 

  

	 	(e)	using the CoReUse standard and the Qcore tool, both identified in Annex G hereto, to qualify Transferred IP Blocks and any Successor Versions and Partial Combination
Versions as CoReUse-compliant in accordance with Seller’s guidelines referenced in Annex D. 

  

	2.5	Patent License 

 Subject
to the terms and conditions of this Agreement (including clause 2.8), Seller hereby grants to Purchaser a personal, non-exclusive, non-transferable (except as set forth in clause 11), perpetual, irrevocable, non-terminable, world-wide, royalty-free
and fully paid-up license under the Licensed Patents solely for the conduct of any of the Licensed Activities. 
  

	2.6	No obligation 

 For the
avoidance of doubt, Seller shall have no obligation under this Agreement to maintain or support after the Closing Date any of the items licensed or transferred by Seller or its Affiliates pursuant to this Agreement, including: (i) Transferred
Materials; (ii) Transferred IPRs; (iii) Transferred Patents; (iv) Licensed IPRs; (v) NXP Transferred Materials Patents; or (vi) NXP Successor Version Patents. 
  

	2.7	Delivery 

 Seller or one
or more of its Affiliates shall, upon the request of Purchaser, deliver the Licensed Materials to Purchaser in accordance with the Umbrella Transitional Services Agreement, provided that Seller and its Affiliates shall have no obligation to
deliver any Licensed Materials hereunder to the extent that such Licensed Materials have been previously delivered to Purchaser. 
  

	2.8	Ownership; no other rights 

 Seller (or its Affiliates as the case may be) retains all rights, title and interest in and to the Licensed Materials (including any copies thereof and whether separate or combined with any other products), Licensed IPRs and Licensed
Patents, and no ownership in or to the Licensed Materials, Licensed IPRs or Licensed Patents is transferred pursuant to this Agreement. Further, in no event shall the licenses granted under clauses 2.4 and 2.5 above, or any other provision of this
Agreement, be construed as granting Purchaser (or its Affiliates), expressly or by implication, estoppel or otherwise, any right or license to use any of Seller’s (or any of its Affiliates’) Patents, technology or intellectual property
rights other than those licenses to the Licensed Materials, Licensed IPRs and Licensed Patents to the extent expressly granted under clauses 2.4 and 2.5 above. 
  

 Page 17/43 

	2.9	IP Blocks 

 Notwithstanding anything herein to the contrary, it is understood and agreed that (x) unless otherwise specified on Annex A, B or C hereto, sub-blocks, components or other constituent parts of those Transferred IP Blocks, Transferred
IP Tools or Transferred Software that form part of Transferred Materials, and the Transferred IPRs pertaining thereto, do not constitute part of such Transferred Materials or Transferred IPRs and are not being transferred or assigned hereunder and
(y) unless otherwise specified on Annex A, sub-blocks, components or other constituent parts of the Transferred IP Blocks that constitute Library Elements and the Licensed IPRs and the Licensed Patents pertaining thereto, taken in isolation and
without reference to or use in any such Transferred IP Block or Successor Version or Partial Combination Version relating thereto, are not being licensed hereunder. 
 Notwithstanding the foregoing in this clause 2.9, Purchaser shall be free, and Seller hereby grants to Purchaser, the right to use for any purpose the ***; provided however that Purchaser shall maintain
the confidentiality of the Library Elements to the extent required under this Agreement. For the purpose of this clause 2.9, *** means *** in the *** of *** have had *** such *** by such *** to *** such ***. However, this clause 2.9 does not grant
Purchaser any rights under any Intellectual Property Rights or Patents of Seller or its Affiliates. 
  

	2.10	Open Source 

 The license
granted to Purchaser hereunder does not include the right to license, and Purchaser shall not perform any actions in a manner that would require any software included in the Licensed IPRs or otherwise licensed hereunder to Purchaser, in whole or in
part, or any derivative work thereof to be licensed, under Open License Terms. 
  

	3	TRADEMARKS 

  

	3.1	License 

 Subject to the
terms and conditions of this Agreement, Seller hereby grants to Purchaser a personal, non-exclusive, non-transferable (except as set forth in clause 11 below), perpetual, irrevocable, worldwide, royalty-free, fully paid-up license to use the NXP
CoReUse Trademarks for the sole purpose of promoting, sublicensing, supplying, and providing maintenance and support services regarding, all in accordance with clause 2.4 above, the Transferred IP Blocks that have been certified by Seller as CoReUse
compliant at the Closing Date, as indicated in Annex A hereto and with respect to which such certification has not subsequently been withdrawn, it being understood that Seller may only withdraw such certification upon ninety
(90) days’ prior written notice to Purchaser. 
  

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	3.2	Usage guidelines 

 The
license granted under clause 3.1 above is subject to Purchaser’s strict compliance with Seller’s standard Trademark usage guidelines (the version of which effective as of the Closing Date is attached as Annex J hereto), as they may be
amended or modified from time to time by Seller upon ninety (90) days’ prior written notice to Purchaser. Seller reserves the right to practice reasonable quality control with regard to Purchaser’s use of the NXP CoReUse Trademarks
and any products and services marketed, sold or licensed by Purchaser thereunder. 
  

	3.3	Ownership and no other license 

 Purchaser acknowledges and agrees that: 
  

	 	(i)	all rights in and to the NXP CoReUse Trademarks are retained by Seller; 

  

	 	(ii)	Purchaser will not, now or in the future, contest the validity of the NXP CoReUse Trademarks; 

  

	 	(iii)	nothing in this Agreement will transfer ownership of the NXP CoReUse Trademarks; and 

  

	 	(iv)	Purchaser’s use of the NXP CoReUse Trademarks will not create in it, nor will it represent it has, any right, title or interest in or to the NXP CoReUse Trademarks
other than the license expressly granted under clause 3.1 above, and all such use and goodwill associated thereby will inure to the benefit of Seller. 

  

	3.4	NXP mark restrictions 

 Purchaser shall not make use of the word “NXP”, alone or in combination with another sign, as a trademark, service mark, trade name or domain name or in any other way, and Purchaser shall not make use of any other commercial or
corporate indicia retained by Seller, except for the NXP CoReUse Trademarks in accordance with this clause 3. Notwithstanding the foregoing or anything else in this Agreement to the contrary, Purchaser shall have the right to use the word
“NXP” and other commercial or corporate indicia retained by Seller as reasonably required to describe the Transactions in connection with securities and other regulatory filings with any Governmental Authority. 
  

	4	PRIOR AND FUTURE SELLER COMMITMENTS AND UNDERTAKINGS 

 All assignments, transfers and licenses to Purchaser will be subject to all prior commitments and undertakings of Seller and/or its Affiliates and to all commitments and undertakings set forth in clause
2.2. 
  

 Page 19/43 

 Seller acknowledges and agrees that any license, assignment, transfer or other grant of any
rights to the Licensed IPRs, Licensed Materials, Licensed Patents and/or NXP CoReUse Trademarks by Seller or any of its Affiliates to any third party shall be subject to the rights granted to Purchaser hereunder. 
  

	5	ROYALTY 

  

	5.1	Royalty on Transferred Materials 

 Purchaser will pay Seller a royalty of *** percent (***%) of all amounts received (including the fair market value of non-cash consideration) by or on behalf of Purchaser or any of its Affiliates during the Royalty Term (or amounts invoiced
during the Royalty Term and later received) in respect of the licensing of the Transferred Materials, in the exact form provided by Seller to Purchaser under this Agreement, to parties other than Purchaser or its Affiliates or Seller or its
Affiliates. 
  

	5.2	Royalty on Successor Versions 

 Purchaser will pay Seller a royalty of *** percent (***%) of (i) all amounts received (including the fair market value of non-cash consideration) by or on behalf of Purchaser or any of its Affiliates during the Royalty Term (or amounts
invoiced during the Royalty Term and later received) in respect of the licensing of any Successor Versions to parties other than Purchaser or its Affiliates or Seller or its Affiliates, minus (ii) any costs and expenses *** by Seller or a third
party *** (the “Deductible Costs”). It is furthermore expressly understood that only a *** percent (***%) deduction of such Deductible Costs will be applied in connection with modifications to Successor Versions that
are designed to *** by or on behalf of ***. 
  

	5.3	Royalty on Combination Versions 

 Purchaser will pay Seller a royalty of *** percent (***%) of all Allocable Combination Version Revenue received by or on behalf of Purchaser or any of its Affiliates during the Royalty Term (or amounts invoiced during the Royalty Term and
later received) in respect of the licensing of any Combination Version to parties other than Purchaser or its Affiliates or Seller or its Affiliates. 
 For the purposes of this Section 5.3, “Allocable Combination Version Revenue” means amounts received (including the fair market value of non-cash consideration) by or
on behalf of Purchaser or any of its Affiliates on the Partial Combination Version portion of each Combination Version, calculated as follows: 
  

	 	(i)	where such Partial Combination Version portion of such Combination Version constitutes Transferred Materials in the exact form provided by Seller to Purchaser under
this Agreement, the Allocable Combination Version Revenue shall be determined by multiplying the amounts received by or on behalf of Purchaser or any of its Affiliates from the licensing of such Combination Version by the fraction *** where *** is
Purchaser’s *** of *** of *** when *** and *** is the *** of the *** of *** that does not constitute a ***; and 

  

 Page 20/43 

	 	(ii)	where such Partial Combination Version portion of such Combination Version constitutes a Successor Version, the Allocable Combination Version Revenue shall be
determined by multiplying the revenue received by or on behalf of Purchaser or any of its Affiliates from the licensing of such Combination Version by the fraction *** where *** is Purchaser’s *** of *** of *** when *** (and after deduction of
the Deductible Costs in accordance with clause 5.2 above) and *** is the *** of the *** of *** that does not constitute a ***. 

  

	5.4	Royalty Suspension (Restricted Activities) 

 In the event that Seller or any of its Affiliates at any time during the Royalty Term licenses on a commercial basis electronic circuit modules and related technology, software and tools for the design,
maintenance, support, and manufacturing of IC Products with baseline CMOS (90 nanometres and smaller) technology that offer substantially the same functionality as any Transferred Materials, Successor Versions or Partial Combination Version portion
of Combination Versions (“Restricted Activities”), then during the time that Seller or any of its Affiliates is engaged in any such Restricted Activity (such time, the “Suspension
Period”), Purchaser shall have no obligation 
  

	 	(i)	to pay Seller any royalties under this clause 5 with respect to any amounts invoiced during the Suspension Period with respect to the Transferred Materials, Successor
Versions or Combination Versions, as applicable, that are subject to the Restricted Activity in which Seller or any of its Affiliates is then engaging or 

  

	 	(ii)	to make any payment to Seller pursuant to clause 5.6 below in connection with the sale, transfer of title, or assignment of ownership during the Suspension Period of
any of the Transferred Materials, Successor Versions or Combination Versions, as applicable, that are subject to the Restricted Activity in which Seller or any of its Affiliates is then engaging. 

 It is understood and agreed that neither Seller nor any of its Affiliates will be deemed to be engaged in a Restricted Activity with respect
to licenses regarding which neither Seller nor any of its Affiliates are entitled to receive any further revenues therefrom or attributable thereto. For purpose of this clause 5.4, “commercial basis” shall not include Seller’s or any
of Seller’s Affiliates’ engagement in High Level IP Block licensing as set forth in clause 2.2 above, as long as Seller and each of its Affiliates is in material compliance with its payment obligations under Annex L hereto. 
  

 Page 21/43 

	5.5	Royalty Off-setting (Transferred Materials Infringement Claims) 

  

	 	5.5.1	In the event that during the Royalty Term a claim, lawsuit or other legal proceeding is brought by a third party against Purchaser or any Purchaser Customer, to the
extent Purchaser is required to defend such customers, which and to the extent is based on a claim that the unmodified Transferred Materials and/or unmodified portion of Transferred Materials or Transferred Materials contained in a Successor Version
or Combination Version infringes a copyright, Patent or other Intellectual Property Right of a third party (“Transferred Materials Infringement Claim”), then, without prejudice to Seller’s obligation to defend and indemnify
Purchaser under Section 8.2 of the Asset Purchase Agreement, *** subject to clause 5.5.2 below, Purchaser may set-off payment of the royalties due to Seller under this clause 5 to use such royalties as a share of the cost of litigation and
activities conducted in connection with the analysis and defense of such claim (including reasonable attorneys’ fees, settlement costs and damage awards) and such other costs incurred in connection with clause 5.5.2 (including costs and
expenses attributable to any mitigation steps undertaken by Purchaser, such as, without limitation, acquiring a license to the asserted copyright(s), Patent(s) and/or other Intellectual Property Rights or developing a non-infringing modification or
replacement of the applicable Transferred Materials) solely, in each case, to the extent directly attributable to such Transferred Materials Infringement Claim (such costs together the “Transferred Materials Infringement Claim
Costs”). Notwithstanding anything herein to the contrary, nothing in this clause 5.5 is nor shall be construed to be *** of any kind for *** or any other ***. 

  

	 	5.5.2	At any time that Purchaser sets-off the royalty payments pursuant to this clause 5.5, Purchaser and Seller agree that, in each such case, the following conditions shall
apply: 

  

	 	(a)	Purchaser shall deliver prior written notice to Seller of any actual or threatened Transferred Materials Infringement Claim with sufficient detail stating the
justification for setting-off the royalty payments including without limitation the third party claimant, the specific claims and the specific Transferred Materials that are subject to the claims, and shall include a copy of the lawsuit, complaint
or administrative proceeding notice of action. 

  

	 	(b)	 Purchaser and Seller shall discuss in good faith how to mitigate costs and damages and how to best address and amicably resolve such Transferred
Materials Infringement Claim and what alternatives are reasonably available to achieve this, such as, by way of example, obtaining from any third party the necessary rights and licenses for the Parties to continue to enjoy the benefits of this
Agreement or modification or replacement of any of the Transferred Materials or portion thereof so that these become non-infringing while giving substantially equivalent performance or, when no such alternative is reasonably available, how to
reasonably support each other free of charge in the defense or settlement of such Transferred Materials Infringement Claim. Purchaser shall, if and to the extent obtained for the benefit of any Purchaser Customer, obtain a release of

  

 Page 22/43 

	 	 
liability of Seller and its Affiliates relating to such Transferred Materials Infringement Claim and a license for Seller and its Affiliates for the continued use of such Transferred Materials.
Purchaser shall have the right to control the defense and settlement of such Transferred Materials Infringement Claim, provided that, subject to clause 5.5.2(c) below, Seller shall have the right to meaningfully participate in (directly and through
counsel of its own choosing and at its sole cost) the strategies, tactics and direction of such defense and settlement relating to such Transferred Materials Infringement Claim. Purchaser shall not have the right to set-off the royalty payments if
Seller is denied the right to so participate in such defense and settlement. 

  

	 	(c)	Seller shall have the right to receive copies of all pleadings, notices, communications and other information with respect to the third-party lawsuit and proceedings,
and Purchaser shall inform Seller of any settlement discussions with respect to the third-party actions or claims. Notwithstanding the foregoing, Purchaser shall have no obligation to provide any document or information to Seller that is subject to
a protective order restricting such disclosure or is covered by attorney-client, attorney work product or similar privileges. 

  

	 	(d)	Seller shall reasonably cooperate with Purchaser with respect to the defense and settlement of the Transferred Materials Infringement Claims, including providing
documents and information that are relevant to such Transferred Materials Infringement Claims, and making its employees, if relevant, available on a mutually convenient basis to provide additional information and explanation of such documents
provided hereunder. Notwithstanding the foregoing, Seller shall have no obligation to provide any document or information to Purchaser that is subject to a protective order restricting such disclosure or is covered by attorney-client, attorney work
product or similar privileges. 

  

	 	(e)	In the event that any *** related to *** under *** of the *** set forth in *** of the ***, shall be applicable to such claims. 

  

	 	(f)	During the period that any royalty payments are suspended under this clause 5.5, Purchaser shall provide Seller each calendar quarter an accurate accounting of all of
the royalty payments set off under this clause 5.5 and the amount of litigation costs and expenses actually incurred and paid by Purchaser with respect to the Transferred Materials Infringement Claims, and the related lawsuit and proceedings. Seller
shall have the right to audit at Purchaser’s headquarters all such records of Purchaser upon reasonable notice, and during Purchaser’s normal working hours at such facility. Purchaser shall make available to Seller at Purchaser’s
headquarters all records necessary for Seller to properly conduct such audit. 

  

 Page 23/43 

	5.6	Transferred Materials 

 In
the event that Purchaser or any of its Affiliates directly or indirectly sells, transfers title to, or assigns ownership of any of the Transferred Materials, Successor Versions or Combination Versions to one or more third parties, other than
(i) any of Purchaser’s Affiliates or Seller’s Affiliates or (ii) in connection with a merger, acquisition or change of control of Purchaser or a sale of all or substantially all of the assets of Purchaser, as long as Seller
remains entitled to receive royalties with respect to the applicable Transferred Materials, Successor Versions and/or Partial Combination Version portions of each Combination Version in accordance with the terms of this clause 5 after the
consummation of such transaction, during the Royalty Term, Purchaser shall pay Seller a percentage of amounts received by Purchaser or any of its Affiliates (including any contingent, revenue share or similar payments earned or received during the
Royalty Term) directly or indirectly from such third party or parties that are attributable to the applicable Transferred Materials, Successor Versions and/or Partial Combination Version portions of each Combination Version, calculated in accordance
with the methodology described in the last paragraph of clause 5.7 below and taking into account the remaining period in the Royalty Term as of the date of consummation of the applicable sale, transfer of title or assignment of ownership.

  

	5.7	Methodology 

 In the event
that in the same transaction or series of related transactions, Purchaser or any of its Affiliates licenses Transferred Materials, Successor Versions and/or Combination Versions and licenses or sells other products, software or services, the amount
to be allocated to such Transferred Materials, Successor Versions and/or Combination Versions shall be determined by multiplying the amount received by or on behalf of Purchaser or any of its Affiliates for all such Transferred Materials, Successor
Versions, Combination Versions and other products, software and services licensed or sold in such transaction or series of related transactions by the fraction A/B where A is the combined list price of all such Transferred Materials, Successor
Versions and/or Partial Combination Version portions of such Combination Versions when licensed separately and B is the combined list price of all such Transferred Materials, Successor Versions, Combination Versions and other products, software and
services when licensed or sold separately.  
 List prices shall be determined at the time applicable amounts are
invoiced. In establishing list prices, Purchaser acknowledges and agrees that it will not disproportionately discount Transferred Materials, Successor or Partial Combination Versions as compared to Combination Versions. 
 Where applicable, amounts under this clause 5 shall be calculated in accordance with U.S. generally accepted accounting principles.

  

 Page 24/43 

 The fair market value of any non-cash consideration received by or on behalf of Purchaser or
any of its Affiliates shall be determined in accordance with U.S. generally accepted accounting principles as they relate to non-monetary transactions. 
 In determining the amount attributable to the applicable Transferred Materials, Successor Versions and/or Partial Combination Version portions of Combination Versions for purposes of clause 5.6 above,
Seller and Purchaser shall negotiate in good faith the attributable amount for a period of thirty (30) days. If Seller and Purchaser are unable to agree on such attributable amount after such thirty (30) day period, Seller and Purchaser
shall appoint a mutually acceptable independent, internationally recognized appraisal, accounting or consulting firm that provides appraisal services to make such determination, which determination shall be provided to both Purchaser and Seller and
will be binding on Purchaser and Seller. Subject to execution of a non-disclosure agreement reasonably acceptable to Purchaser, Purchaser shall provide to any such mutually agreed firm access to its books and records and other materials and
personnel to the extent reasonably necessary to determine such attributable amount. 
  

	6	ROYALTY REPORTING AND AUDIT RIGHTS 

  

	6.1	Inspection of books and records 

 Purchaser shall maintain accurate books and records which enable the calculation of royalties payable hereunder to be verified in accordance with this clause 6.1. Purchaser shall retain the books and records for each quarterly period for
four (4) years after the submission of the corresponding royalty report under clause 6.2 below. Upon no less than thirty (30) days’ prior written notice to Purchaser, independent accountants selected by Seller, reasonably acceptable
to Purchaser, after entering into a confidentiality agreement with Purchaser no materially less restrictive than Seller’s confidentiality obligations hereunder, may have access to the books and records of Purchaser to conduct, at
Purchaser’s headquarters, a review or audit, no more often than once per calendar year (it being understood, for the avoidance of doubt, that more than one (1) visit to such facilities may be required to complete a single audit), for the
sole purpose of verifying the accuracy of the royalty reports submitted by Purchaser to Seller during the four (4) year period immediately preceding the date of such review or audit. Purchaser shall make available to the auditors at
Purchaser’s headquarters all books and records necessary for the auditors to properly conduct such review and audit. The accounting firm shall provide an audit report to Seller, specifying whether there has been a royalty underpayment or
overpayment (and, if so, the amount thereof), including its calculation per calendar quarter of royalties payable compared with royalties reported by Purchaser, aggregated for Transferred Materials, Successor Versions and Combination Versions
categories, respectively, and an itemized bridge calculation for any difference between said reported royalties and the payable royalties per such category. Such access shall be permitted during Purchaser’s normal business hours during the
Royalty Term and for two (2) years thereafter. Any such inspection or audit shall be at Seller’s expense, except if the audit results show underpayment by Purchaser of more than *** (***%) over the course of the entire period audited, in
which case Purchaser will pay for the reasonable audit

  

 Page 25/43 

 
expenses incurred and documented by Seller within thirty (30) days of Seller’s itemized invoice therefor. Purchaser shall pay to Seller any underpaid royalties promptly. Any
overpayments by Purchaser revealed in such inspection or audit shall be credited to future royalties, unless the Royalty Term has expired in which case Seller shall promptly, but in any event within forty-five (45) days of the issuance of the
audit report, refund such overpaid amounts to Purchaser. Any records or accounting information received from Purchaser or its Affiliates during the course of any such inspection or audit shall be deemed Purchaser’s Confidential Information
under this Agreement. 
  

	6.2	Royalty reporting and payment 

 Purchaser shall, within thirty (30) days following 31 March, 30 June, 30 September and 31 December of each calendar year during the Royalty Term: (i) submit to Seller (even in the event that Purchaser has no
payment obligations for the applicable quarter) its duly signed written statement in the form as Annex H hereto; and (ii) pay to Seller the amounts due for that respective quarter. All amounts are in United States Dollars (USD), and Purchaser
shall pay all amounts due to Seller hereunder by wire transfer into the bank account designated in Annex K or as otherwise designated by Seller in writing. Purchaser shall not offset, withhold or reduce any payment(s) due to Seller. 
  

	6.3	Tax 

  

	 	6.3.1	All amounts paid hereunder by Purchaser are gross amounts and shall be paid without withholding for or on account of any tax, but are exclusive of any value added tax
(VAT) or analogous tax only. If the transactions as described in this Agreement are subject to any applicable VAT or analogous tax, Seller shall provide Purchaser with a valid invoice that complies with local tax regulations and which specifically
states this tax. Provided Seller has stated VAT or analogous tax (as identified above) on the applicable invoice Purchaser will pay to Seller the VAT or analogous tax properly chargeable in respect of that payment. Purchaser reserves the right to
withhold payment of VAT or analogous tax to Seller until Seller has provided Purchaser with a valid invoice which states such tax. If Seller has incorrectly determined the amount of VAT chargeable to Purchaser, then the invoice shall be corrected
and (a) where Purchaser has overpaid any amount, Seller will repay this amount plus interest to Purchaser and (b) where Purchaser has paid less than the correct amount, Purchaser shall pay the outstanding amount to Seller upon receipt of a
valid invoice. In the event that Purchaser is refused recovery of such input VAT by means of a deduction or refund by a taxing authority, solely because of an incorrect initial invoice made out by Seller, Seller will repay such VAT plus interest
except where such refusal has arisen as a result of an action (or inaction) by Purchaser in respect of compliance with local tax legislation. 

  

	 	6.3.2	Seller shall deliver to Purchaser at the Closing a U.S. Internal Revenue Service Form W-8BEN claiming residence in the Netherlands for purposes of the US/Netherlands
Treaty, claiming the benefits of Article 13 of the US/Netherlands Treaty (related to royalties), and otherwise signed and completed to the reasonable satisfaction of Purchaser. 

  

 Page 26/43 

	7	CONFIDENTIALITY 

  

	7.1	Confidential information 

 Purchaser acknowledges that any unpublished patent applications included in the Licensed Patents, any trade secrets or other confidential information included in the Licensed Materials, Licensed IPRs, and Successor Versions and Combination
Versions (solely insofar as the Successor Versions and Combination Versions incorporate all or part of the trade secrets included in the Licensed IPRs) embody or contain valuable trade secrets and other confidential information of Seller (such trade
secrets and other confidential information along with any unpublished patent applications included in the Licensed Patents and any trade secrets or other confidential information included in the Licensed Materials, Licensed IPRs are collectively
referred to as “Seller Confidential Information”). Seller acknowledges that the Transferred Materials, any unpublished patent applications included in the Transferred Patents, any trade secrets or other confidential information
contained in the Transferred IPRs, Successor Versions and Combination Versions embody or contain valuable trade secrets and other confidential information of Purchaser (such trade secrets and other confidential information along with the Transferred
Materials, any unpublished patent applications included in the Transferred Patents and any trade secrets or other confidential information included in the Transferred IPRs are collectively referred to as “Purchaser Confidential
Information”). Purchaser and Seller (each a “Receiving Party”) will not use the Seller Confidential Information or the Purchaser Confidential Information, as applicable (the “Confidential Information”), for
any purpose not expressly permitted by this Agreement, and may disclose the other Party’s Confidential Information only to those of its employees, permitted sublicensees and other authorized third parties who have a strict need to know such
Confidential Information for purposes of exploiting the licenses granted to such Party under this Agreement and who are under a written obligation of confidentiality no less restrictive than the Receiving Party’s confidentiality obligations
hereunder. The Receiving Party will protect the other Party’s Confidential Information from unauthorized use, access and disclosure in the same manner as the Receiving Party protects its own confidential or proprietary information of a similar
nature and with no less than reasonable care. 
  

	7.2	Exceptions 

 The Receiving
Party’s obligations under clause 7.1 shall not apply to any information if and to the extent the Receiving Party can document that such information: 
  

	 	(a)	 was already lawfully known to the Receiving Party at the time of initial disclosure by the other Party (expressly excluding, where Seller or any of its
Affiliates is the Receiving Party,

  

 Page 27/43 

	 	 
the Transferred Materials, any unpublished patent applications included in the Transferred Patents, and any trade secrets or other confidential and proprietary information contained in the
Transferred IPRs (including as such trade secrets and other confidential and proprietary information may be included, incorporated or embodied in Successor Versions and Combination Versions); 

  

	 	(b)	was disclosed to the Receiving Party by a third party who had the right to make such disclosure without any confidentiality restrictions (including the confidentiality
restrictions set forth herein or in any other Ancillary Agreement); 

  

	 	(c)	is, or through no fault of the Receiving Party has become, generally available to the public; or 

  

	 	(d)	is independently developed by the Receiving Party without use of or reference to the other Party’s Confidential Information. In addition, the Receiving Party will
be allowed to disclose Confidential Information of the other Party to the extent that such disclosure is: 

  

	 	(i)	expressly approved in writing by the other Party prior to such disclosure; 

  

	 	(ii)	necessary for the Receiving Party to enforce its rights under this Agreement in connection with a legal proceeding, provided that the Receiving Party shall, prior to
disclosure and at its own expense, seek a protective order appropriate to preserve the other Party’s rights in the confidential nature of the Confidential Information; or 

  

	 	(iii)	required by law or by the order or a court of similar judicial or administrative body, provided that the Receiving Party notifies the other Party of such required
disclosure promptly and in writing and cooperates with the other Party, at the other Party’s reasonable request and expense, in any lawful action to secure a protective order appropriate to preserve the other Party’s rights in the
confidential nature of the Confidential Information or otherwise to contest or limit the scope of such required disclosure. 

  

	8	REPRESENTATIONS AND WARRANTIES; DISCLAIMER 

  

	8.1	This Agreement is subject to and the Parties are the beneficiaries of the representations, warranties and covenants set forth in the Asset Purchase Agreement.

  

	8.2	Seller Tax Representations 

 In addition to the representations, warranties and covenants set forth in the Asset Purchase Agreement, Seller hereby represents and warrants to Purchaser as follows: 
  

	 	(a)	Seller is a resident of the Kingdom of the Netherlands for purposes of the US/Netherlands Treaty and is entitled to all of the benefits thereof without
limitation by Article 26 thereof (entitled “Limitation on Benefits”). 

  

 Page 28/43 

	 	(b)	Seller does not have a permanent establishment in the United States for purposes of the US/Netherlands Treaty, and no royalty to be received by it pursuant to
this Agreement will be attributable to such a permanent establishment for purposes of the US/Netherlands Treaty. 

  

	8.3	Disclaimer 

 EXCEPT AS
OTHERWISE EXPRESSLY PROVIDED IN THE ASSET PURCHASE AGREEMENT, ALL TECHNOLOGY, INTELLECTUAL PROPERTY AND OTHER MATERIALS OR INFORMATION ASSIGNED, TRANSFERRED OR LICENSED HEREUNDER ARE ASSIGNED, TRANSFERRED OR LICENSED, AS THE CASE MAY BE, ON AN
“AS IS” BASIS AND WITHOUT ANY WARRANTY OF ANY TYPE. SELLER’S SOLE LIABILITY AND PURCHASER’S SOLE REMEDY WITH RESPECT TO ANY PATENT INFRINGEMENT OR ANY OTHER CLAIM OF INFRINGEMENT OR MISAPPROPRIATION MADE BY ANY THIRD PARTY ON
ACCOUNT OF, OR ARISING FROM THE USE OR PRACTICE OF ANY TECHNOLOGY, INTELLECTUAL PROPERTY OR OTHER MATERIALS OR INFORMATION ASSIGNED, TRANSFERRED OR LICENSED HEREUNDER SHALL BE AS SET FORTH IN THE ASSET PURCHASE AGREEMENT AND IN THE ROYALTY
SUSPENSION CLAUSE IN CLAUSE 5.5 HEREOF. 
  

	9	INFRINGEMENT INDEMNITY AND LIMITATION OF LIABILITY 

  

	9.1	Indemnity by Purchaser 

  

	 	9.1.1	Duty to Indemnify and Defend 

 Purchaser shall indemnify and hold harmless Seller against, and will defend or settle at Purchaser’s own expense, subject to the limitations stated in clauses 9.2 and 9.3 below and, to the extent applicable, the provisions of Sections
8.6 and 8.7 of the Asset Purchase Agreement, any action or other proceeding brought against Seller, its Affiliates or their respective directors, officers, shareholders or employees (each a “Seller Indemnified Party”) to the extent
that it is based on a claim that any Successor Version or Combination Version, or a portion of either one (each, a “Purchaser Indemnified Version”) infringes or misappropriates a copyright, Patent or other Intellectual Property
Right of a third party. Purchaser will pay any damages (including attorneys’ fees) awarded against the Seller Indemnified Party in any such action or proceeding and any costs and expenses (including reasonable attorneys’ fees) incurred by
the Seller Indemnified Party to the extent attributable to any such claim, subject to the limitations stated in clauses 9.3 and 9.4 below. Seller agrees to provide Purchaser with prompt notice of any action or other proceeding brought against a
Seller Indemnified Party for which such Seller Indemnified Party has indemnification rights hereunder, provided that the failure to provide such prompt

  

 Page 29/43 

 
notice shall not relieve Purchaser of its indemnification obligations hereunder except to the extent it is materially prejudiced thereby. Seller hereby agrees, and Seller shall procure that each
other Seller Indemnified Party shall agree as a condition of being indemnified hereunder, that Purchaser will have the sole right to control the defense and settlement of any such action or other proceeding hereunder, provided that the Seller
Indemnified Party may participate in the defense and settlement with its own attorneys at its expense, and provided, further, that Purchaser shall not be liable for or obligated under any compromise or settlement of such claim, action or proceeding
without its prior written consent not to be unreasonably withheld or delayed. At Purchaser’s reasonable request, each Seller Indemnified Party shall provide Purchaser with reasonable assistance, at Purchaser’s expense, in its defense and
settlement of such action, proceeding or claim. 
  

	 	9.1.2	Injunctions 

 If
Seller’s use of any Successor Version(s) and/or Combination Version(s) under the terms of this Agreement is, or in Purchaser’s reasonable opinion is likely to be, enjoined due to the type of infringement or misappropriation specified in
clause 9.1.1 above, which is not subject to any exclusion set forth in subsection 9.1.4 below, then Purchaser shall, at its sole option and expense, subject to clause 9.3 below, either: 
  

	 	(i)	procure for each Seller and its Affiliates the right to continue using such Successor Version(s) and/or Combination Version(s) or any Purchaser Indemnified Versions,
under the terms of this Agreement; or 

  

	 	(ii)	replace or modify such Successor Version(s) and/or Combination Version(s), or any Purchaser Indemnified Versions, so that they are noninfringing and substantially
equivalent in function to the Successor Version(s) and/or Combination Version(s), or any Purchaser Indemnified Versions, subject to, or potentially subject to, an injunction. 

 Upon Purchaser’s successful performance of 9.1.2(i) or (ii) above, Purchaser’s liability under clause 9.1.1 above with
respect to the applicable claim shall terminate with respect to all damages, costs and expenses related to the continued use of the unaltered Successor Version(s) and/or Combination Version(s) after the date of such performance, or, in the case of
clause 9.1.2(ii) after Seller has had a reasonable opportunity, in light of the applicable circumstances, to implement the replaced or modified Successor Version(s) and/or Combination Version(s). 
  

	 	9.1.3	Sole Remedy 

 THE
FOREGOING ARE PURCHASER’S SOLE AND EXCLUSIVE OBLIGATIONS, AND SELLER’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO INFRINGEMENT OR MISAPPROPRIATION OF PATENTS OR INTELLECTUAL PROPERTY RIGHTS UNDER THIS AGREEMENT. 
  

 Page 30/43 

	 	9.1.4	Exclusions 

 Purchaser
shall have no obligations under this clause 9.1 to the extent that the infringement or misappropriation arises from: 
  

	 	(i)	the Transferred Materials or Licensed Materials, standing alone (and not in combination, operation or use with other software, apparatus, data, technology or materials,
except where the infringement or misappropriation does not arise from such combination, operation or use); 

  

	 	(ii)	any modification(s) to any Transferred Material(s), Successor Version(s) and/or Combination Version(s) made by Seller, any of its Affiliates, any Divested Company, ***,
any of their respective sublicensees or any Person on behalf of any of the foregoing; 

  

	 	(iii)	Purchaser’s compliance with modifications requested by Seller or any of its Affiliates (or any Divested Company, *** through Seller or any of its Affiliates) to
any Transferred Material(s), Successor Version(s) and/or Combination Version(s) that comply with specifications or implementation instructions provided by Seller or any of its Affiliates (or any Divested Company, *** through Seller or any of its
Affiliates) under a Statement of Work pursuant to the Technology Services Agreement, to the extent such compliance with the specifications or instructions could not be achieved without infringing or misappropriating the rights of a third party;

  

	 	(iv)	any instantiations of any Transferred Material(s), Successor Version(s) and/or Combination Version(s) generated by Seller, any of its Affiliates, any Divested Company,
*** or any Person on behalf of any of the foregoing, except, solely with respect to Successor Version(s) and/or Combination Version(s), to the extent such infringement or misappropriation existed in such Successor Version(s) and/or Combination
Version(s) in the form delivered by Purchaser to Seller; 

  

	 	(v)	any use of any Transferred Material(s), Successor Version(s) and/or Combination Version(s) in combination with products or technology not provided by Purchaser if such
infringement would not have arisen but for such combination or use; 

  

	 	(vi)	 any failure to implement a revision to any Successor Version(s) and/or Combination Version(s) delivered by Purchaser to Seller, which if implemented,
would have avoided the infringement or misappropriation, provided that the

  

 Page 31/43 

	 	 
revision is given to Seller free of charge with reasonable time, in light of the applicable circumstances, to implement it and does not substantially alter the functionality of the Successor
Version(s) and/or Combination Version(s); or 

  

	 	(vii)	any NXP Material(s) licensed or sublicensed to Purchaser under the Technology Services Agreement, standing alone (and not in combination, operation or use with other
software, apparatus, data, technology or materials, except where the infringement or misappropriation does not arise from such combination, operation or use). 

  

	9.2	EXCEPT FOR A BREACH OF THE LICENSE GRANTS AND RESTRICTIONS UNDER CLAUSES 2.2, 2.4 AND 2.5, THE PAYMENT OBLIGATIONS UNDER CLAUSE 6.2, OR CONFIDENTIALITY UNDER
CLAUSE 7, AND TO THE EXTENT ALLEGED IN THIRD PARTY CLAIMS COVERED BY INDEMNIFICATION OBLIGATIONS UNDER CLAUSE 9.1, NEITHER PARTY SHALL BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OF USE, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF ANY
BREACH OR FAILURE UNDER THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES ACKNOWLEDGE THAT THESE LIMITATIONS ON POTENTIAL LIABILITIES ARE AN ESSENTIAL ELEMENT IN THIS AGREEMENT. 

  

	9.3	EXCEPT FOR A BREACH OF THE LICENSE GRANTS AND RESTRICTIONS UNDER CLAUSES 2.2, 2.4 AND 2.5, THE PAYMENT OBLIGATIONS UNDER CLAUSE 6.2, OR CONFIDENTIALITY UNDER
CLAUSE 7, AND PURCHASER’S OBLIGATIONS UNDER CLAUSE 9.1, IN NO EVENT SHALL EITHER PARTY’S LIABILITY UNDER THIS AGREEMENT EXCEED *** U.S. DOLLARS (US$***) (IT BEING UNDERSTOOD THAT THE CIRCUMSTANCES FOR WHICH REMEDIES ARE AVAILABLE TO
PURCHASER PURSUANT TO CLAUSES 5.4 AND 5.5 SHALL NOT BE DEEMED LIABILITIES OF SELLER THAT ARE SUBJECT TO THE FOREGOING LIMITATION). PURCHASER’S LIABILITY FOR ITS OBLIGATIONS UNDER CLAUSE 9.1 ABOVE, SHALL, IN CONJUNCTION WITH PURCHASER’S
OBLIGATIONS UNDER SECTION 7.1 OF THE TECHNOLOGY SERVICES AGREEMENT, NOT EXCEED AN AGGREGATE OF *** U.S. DOLLARS (US$***). THESE LIMITATIONS OF LIABILITY ARE CUMULATIVE AND NOT PER INCIDENT. FOR PURPOSES OF CLARIFICATION, WITH RESPECT TO
PURCHASER’S OBLIGATIONS UNDER CLAUSE 9.1 ABOVE AND SECTION 7.1 OF THE TECHNOLOGY SERVICES AGREEMENT, THE COMBINED LIABILITY UNDER THIS AGREEMENT AND THE TECHNOLOGY SERVICES AGREEMENT SHALL NOT EXCEED *** U.S. DOLLARS (US$***), IN THE AGGREGATE.
FURTHERMORE THE EXCLUSIONS AND LIMITATIONS OF LIABILITY SET FORTH IN THIS CLAUSE 9.3 DO NOT APPLY IN CASE OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR INTENTIONAL BREACH, OR IN CASE OF PERSONAL INJURY OR DEATH. 

  

 Page 32/43 

	10	TERM AND TERMINATION 

  

	10.1	Effective Date 

 This
Agreement shall become effective as from the Closing Date and continue in full force and effect in accordance with its terms unless and until terminated by mutual agreement of the Parties. The rights and obligations of the Parties which by their
nature would continue beyond termination of this Agreement shall survive and continue after any termination of this Agreement for as long as necessary to permit their full discharge. 
  

	11	ASSIGNMENT 

 Purchaser may
not assign or transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of Seller; provided, however, that Purchaser may assign this Agreement, in whole but not in part, along with all its rights and
obligations hereunder (i) to an Affiliate of Purchaser or (ii) to a third party as part of a merger, acquisition or sale of Purchaser or substantially all of the business or assets of Purchaser related to the subject matter of this
Agreement without such consent. Seller may not in whole or in part assign or transfer this Agreement or any of its rights or obligations hereunder without the prior written consent of Purchaser; provided, however, that Seller may assign this
Agreement, in whole but not in part, and all of its rights and obligations hereunder (i) to an Affiliate of Seller or (ii) to a third party as part of a merger, acquisition or sale of Seller or substantially all of the business or assets
of Seller related to the subject matter of this Agreement without such consent, as long as the third party involved in such a merger, acquisition or sale is not a Purchaser Competitor. 
  

	12	APPLICABLE LAW; DISPUTE RESOLUTION PROCEDURE 

  

	12.1	Applicable law and dispute resolution 

 This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York applicable to contracts entered into and performed under the laws of the State of
New York, without giving effect to such laws whose application would result in the application of the laws of another jurisdiction. 
  

	 	(i)	Any claims or causes of action arising out of or in connection with this Agreement (“Claims”) that relate to any Patent matter that is within the
jurisdiction of the United States Court of Appeals for the Federal Circuit will be brought solely in the federal courts in the Southern District of New York or, if said court lacks subject matter jurisdiction, then in the Supreme Court of the State
of New York, County of New York. Each Party hereby submits to the personal jurisdiction and venue of such courts and agrees to receives service of process at its address set forth herein. 

  

	 	(ii)	 With respect to all Claims other than those specified in clause (i) above, clauses 13.2 through 13.9 of the Asset Purchase Agreement are hereby
incorporated by reference and

  

 Page 33/43 

 
made a part hereof as if fully set forth herein, provided that this clause 12.1 shall not preclude a Party from pursuing an action in any court of competent jurisdiction for the sole purpose of
obtaining injunctive or similar relief in the case of a breach of clause 2 or clause 7 hereof. 
  

	 	(iii)	If Claims are raised that fall within both clause 12.1(i) above and clause 12.1(ii) above, the Parties will resolve the Claims falling within clause 12.1(i) above
first, and then proceed with the remaining claims under clause 12.1(ii) above. The Parties agree that a final or the unappealed judgment of any Claims under clause 12.1(i) above (a “Final Judgment”) may be submitted to any court of
competent jurisdiction within the Netherlands (or in any other jurisdiction), that such Final Judgment may be enforced by such court, and that neither Party will object to the enforcement by such court of such Final Judgment. Further, a Final
Judgment may be taken by the prevailing party to the arbitrator handling any Claims under clause 12.1(ii) above. 

  

	13	MISCELLANEOUS 

  

	13.1	Entire Agreement 

 This
Agreement and the documents, instruments and other agreements specifically referred to herein or therein or delivered pursuant hereto, including all Annexes hereto, constitute the entire agreement of the Parties with respect to the subject matter
hereof and supersede all prior agreements, term sheets, letters of interest, correspondence (including e-mail) and undertakings, both written and oral, between Seller, on the one hand, and Purchaser, on the other hand, with respect to the subject
matter hereof. 
  

	13.2	Amendment 

 Subject to
applicable law, the Parties may amend this Agreement at any time in accordance with an instrument in writing signed on behalf of each of the Parties. 
  

	13.3	Notices 

 All notices and
other communications hereunder will be in writing and deemed to have been duly given if given in accordance with the provisions of the Asset Purchase Agreement. 
  

	13.4	Severability 

 If any term
or provision of this Agreement or the application of any such term or provision to any Person or circumstance is held by final judgment of a court of competent jurisdiction or arbiter to be invalid, illegal or unenforceable in any situation in any
jurisdiction, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect. If the final judgment of such court or arbitrator declares that any term or provision hereof is invalid, void or

  

 Page 34/43 

 
unenforceable, the parties agree to, as applicable, (i) reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or (ii) replace
any invalid, illegal or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the original intention of the invalid, illegal or unenforceable term or provision. 
  

	13.5	Extension; Waiver 

 Any
Party hereto may, to the extent legally allowed, waive compliance with any of the agreements or conditions for the benefit of such Party contained herein. Any agreement on the part of a Party hereto to any such waiver will be valid only if set forth
in an instrument in writing signed on behalf of such Party. Without limiting the generality or effect of the preceding sentence, no delay in exercising any right under this Agreement will constitute a waiver of such right, and no waiver of any
breach or default will be deemed a waiver of any other breach or default of the same or any other provision in this Agreement. 
  

	13.6	No Third-Party Beneficiaries 

 This Agreement is for the sole benefit of the Parties, their permitted assigns, Affiliates and permitted sublicensees, and nothing herein, express or implied, is intended to or will confer upon any other Person or entity any legal or
equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 
  

	13.7	Costs 

 Except as
otherwise expressly provided in this Agreement, all costs and expenses incurred in connection with this Agreement shall be borne by the Party incurring such costs and expenses, whether or not the Transaction is consummated. 
  

	13.8	Independent contractors 

 The Parties are and intend to remain independent contractors. Nothing contained in this Agreement shall be deemed or construed to constitute or create an agency, association, joint venture or partnership between the Parties, and neither
Party shall have authority to act in the name of or on behalf of or otherwise to bind the other Party in any way, including the making of any representation or warranty, the assumption of any obligation or liability and the exercise of any right or
power. 
  

 Page 35/43 

	13.9	Export control 

 Each
Party acknowledges that the technology transferred, assigned or licensed hereunder, including documentation and technical data, may be subject to export control regulations. Neither Party shall export or re-export (directly or indirectly) any
technology or other materials transferred, assigned or licensed to it hereunder without complying with applicable export regulations, and upon request, each Party shall provide reasonable assistance to the other Party with respect to such
compliance. 
  

	13.10	Language 

 This Agreement
and all documents and notices issued under the terms of this Agreement shall be in the English language. Any translation into another language is for the convenience of the Parties only. 
  

	13.11	Counterparts 

 This
Agreement may be executed in two (2) counterparts, and by each of the Parties in separate counterparts, each of which when executed will be deemed to be an original but both of which taken together will constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Agreement by telecopy or by electronic delivery in Adobe Portable Document Format will be effective as delivery of a manually executed counterpart of this Agreement. 
 [SIGNATURE PAGES FOLLOW] 
  

 Page 36/43 

 AGREED AND SIGNED ON [—] BY: 
  

	
	  

			
	Name:	 	NXP B.V., as Seller
	Title:	 	[Title]

  

	
	  

			
	Name:	 	Virage Logic Corporation, as Purchaser
	Title:	 	[Title]

  

 Page 37/43 

 Annex I – IPTLA – Purchaser Competitors 
 *** 
 Any Affiliate of any of the foregoing
Persons, any Person holding directly or directly more than 50 percent of the nominal value of the share capital or more than 50 percent of the voting power at general or special meetings of shareholders of the foregoing Persons, any Person acquiring
all or substantially all of the assets of any of the foregoing Persons or the surviving entity of any merger to which such Person is a party or constituent entity. 
  

 Page 38/43 

 Annex L – IPTLA – High-Level IP Block Obligations and Restrictions 

 1. License Fees: For the first *** (***) sublicenses with respect to High-Level IP Blocks under clause 2.2(b)(iii) of the
Intellectual Property Transfer and License Agreement, Seller shall not be obligated to pay Purchaser any fees with respect thereto. Thereafter, Seller and Purchaser shall negotiate in good faith and mutually determine the fee for any additional
sublicenses entered into pursuant to clause 2.2(b)(iii) on a case by case basis; provided that any such sublicense fee shall not be in excess of *** percent (***%) of the list price of the Purchaser Licensed IP embodied in the relevant High
Level IP Block. 
 2. Timing of Sublicense Fee Payments: With respect to those sublicenses for which Seller is obligated to pay
Purchaser a fee hereunder, Seller shall notify Purchaser promptly of its receipt of fees from a sublicense entered into pursuant to clause 2.2(b)(iii) of the Intellectual Property Transfer and License Agreement. Seller shall pay the fees due to
Purchaser in accordance with paragraph 1 of this Annex L within forty-five (45) days after Seller’s receipt of fees from such sublicense. 
  

 Page 39/43 

 Annex M – IPTLA – Revenue Sharing Deductible Costs 
  

							
	 Class of Expense
	  	Direct	 	Indirect	 	Deductible costs
	 Salary
	  	***	 	***	 	***
				
	 Vacation Accrual Expense
	  	***	 	***	 	***
	 PTO
	  	***	 	***	 	***
				
	 Medical Insurance
	  	***	 	***	 	***
	 Dental Insurance
	  	***	 	***	 	***
	 Vision Insurance
	  	***	 	***	 	***
	 Other Benefits
	  	***	 	***	 	***
	 Cobra Expense
	  	***	 	***	 	***
	 Benefits Allocations Out
	  	***	 	***	 	***
	 Employee Insurance
	  	***	 	***	 	***
	 Fitness & Other Benefits
	  	***	 	***	 	***
	 Benefits
	  	***	 	***	 	***
				
	 Payroll Taxes
	  	***	 	***	 	***
	 Payroll Tax
	  	***	 	***	 	***
				
	 Severance Expense
	  	***	 	***	 	***
	 Severance
	  	***	 	***	 	***
				
	 Bonus Expense
	  	***	 	***	 	***
	 Gratuity
	  	***	 	***	 	***
	 Bonus
	  	***	 	***	 	***
				
	 Commission Expense
	  	***	 	***	 	***
	 Commission
	  		 		 	
				
	 Relocations
	  	***	 	***	 	***
	 Relocation
	  	***	 	***	 	***
				
	 Auto Allowance
	  	***	 	***	 	***
	 Other Compensation
	  	***	 	***	 	***
	 Subtotal Compensation
	  		 		 	

  

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	 Deprec - Furniture & Fixtures
	  	***	 	***	 	***
	 Deprec - Computers & Equipment
	  	***	 	***	 	***
	 Deprec - Software
	  	***	 	***	 	***
	 Deprec - Building
	  	***	 	***	 	***
	 Deprec - Leasehold Improvement
	  	***	 	***	 	***
	 Amort - Intangibles - Patents
	  	***	 	***	 	***
	 Amort - Intangibles - Goodwill
	  	***	 	***	 	***
	 Depreciation & Amortization
	  	***	 	***	 	***
				
	 Subcon/Consulting
	  	***	 	***	 	***
	 Outside Services
	  	***	 	***	 	***
	 Consulting
	  	***	 	***	 	***
				
	 Lodging
	  	***	 	***	 	***
	 Travel Meals
	  	***	 	***	 	***
	 Auto Rental and Rental Gas
	  	***	 	***	 	***
	 Transportation & Airfare
	  	***	 	***	 	***
	 Travel Telecom
	  	***	 	***	 	***
	 Taxi/shuttle/tips/parking toll
	  	***	 	***	 	***
	 Other Exp. - Visa’s/Medical
	  	***	 	***	 	***
	 Auto Expense & Mileage
	  	***	 	***	 	***
	 Business Meals
	  	***	 	***	 	***
	 Entertainment
	  	***	 	***	 	***
	 Meetings
	  	***	 	***	 	***
	 Company Events
	  	***	 	***	 	***
	 Special Events-T&E
	  	***	 	***	 	***
	 Employee Meals
	  	***	 	***	 	***
	 Employee Meals Off-Site
	  	***	 	***	 	***
	 Travel and Entertainment
	  	***	 	***	 	***
				
	 Benefit Plan Fees
	  	***	 	***	 	***
	 Payroll Service Fees
	  	***	 	***	 	***
	 Accounting & Auditing
	  	***	 	***	 	***
	 Bank Fees
	  	***	 	***	 	***
	 Insurance - General Liab
	  	***	 	***	 	***
	 Insurance - D & O
	  	***	 	***	 	***
	 Transfer Agent
	  	***	 	***	 	***
	 Public Filings
	  	***	 	***	 	***

  

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	 Investor Relations
	  	***	 	***	 	***
	 Professional Services
	  	***	 	***	 	***
				
	 Legal - Corporate
	  	***	 	***	 	***
	 Legal - Patents
	  	***	 	***	 	***
	 Legal - Immigration
	  	***	 	***	 	***
	 Legal Services
	  	***	 	***	 	***
				
	 Equipment Lease
	  	***	 	***	 	***
	 Equipment Expenses
	  	***	 	***	 	***
	 Equipment
	  	***	 	***	 	***
				
	 Freight
	  	***	 	***	 	***
	 Postage
	  	***	 	***	 	***
	 Office Supplies
	  	***	 	***	 	***
	 Cafeteria Supplies
	  	***	 	***	 	***
	 Supplies
	  	***	 	***	 	***
				
	 Advertising & Promotion
	  	***	 	***	 	***
	 Collateral
	  	***	 	***	 	***
	 Public Relations
	  	***	 	***	 	***
	 Trade Shows/Exhibition
	  	***	 	***	 	***
	 Website
	  	***	 	***	 	***
	 Partner Marketing Programs
	  	***	 	***	 	***
	 Industry Assoc Sponsorships
	  	***	 	***	 	***
	 Market Research
	  	***	 	***	 	***
	 Marcom
	  	***	 	***	 	***
				
	 Software Expenses
	  	***	 	***	 	***
	 Software Maint
	  	***	 	***	 	***
	 Software License Fees
	  	***	 	***	 	***
	 SW Expense
	  	***	 	***	 	***
				
	 Cell Phone
	  	***	 	***	 	***
	 Telephone
	  	***	 	***	 	***
	 Maintenance & Repairs
	  	***	 	***	 	***
	 Rent - Office
	  	***	 	***	 	***
	 Rent - Common Area Maint
	  	***	 	***	 	***
	 Lease Termination
	  	***	 	***	 	***
	 Offsite - Storage
	  	***	 	***	 	***

  

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	 Office Move and Related Exp.
	  	*	** 	 	*	** 	 	*	** 
	 Property Tax
	  	*	** 	 	*	** 	 	*	** 
	 Janitorial Expense
	  	*	** 	 	*	** 	 	*	** 
	 Security
	  	*	** 	 	*	** 	 	*	** 
	 Utilities
	  	*	** 	 	*	** 	 	*	** 
	 Facilities
	  	*	** 	 	*	** 	 	*	** 
				
	 Internet Connect
	  	*	** 	 	*	** 	 	*	** 
	 MIS
	  	*	** 	 	*	** 	 	*	** 
				
	 Test Chip Cost
	  	*	** 	 	*	** 	 	*	** 
	 Test Chip
	  	*	** 	 	*	** 	 	*	** 
				
	 Rep. Commission
	  	*	** 	 	*	** 	 	*	** 
	 External Commission
	  	*	** 	 	*	** 	 	*	** 
				
	 Recruiting Expense
	  	*	** 	 	*	** 	 	*	** 
	 Recruiting
	  	*	** 	 	*	** 	 	*	** 
				
	 Workers’ Compensation
	  	*	** 	 	*	** 	 	*	** 
	 Seminars & Education
	  	*	** 	 	*	** 	 	*	** 
	 Subscriptions & Dues
	  	*	** 	 	*	** 	 	*	** 
	 Other Expenses
	  	*	** 	 	*	** 	 	*	** 
	 Employee Welfare
	  	*	** 	 	*	** 	 	*	** 
	 Internal Communication
	  	*	** 	 	*	** 	 	*	** 
	 Custom / Duty Tax
	  	*	** 	 	*	** 	 	*	** 
	 Business License
	  	*	** 	 	*	** 	 	*	** 
	 Charitable Contributions
	  	*	** 	 	*	** 	 	*	** 
	 Other
	  	*	** 	 	*	** 	 	*	** 
				
	 Board compensation
	  	*	** 	 	*	** 	 	*	** 
	 Board
	  	*	** 	 	*	** 	 	*	** 
				
	 Bad Debts
	  	*	** 	 	*	** 	 	*	** 
	 Bad Debt
	  	*	** 	 	*	** 	 	*	** 
	 Subtotal Non-Compensation
	  			 			 		
	 Total Expense Before Alloc
	  			 			 		
				
	 Overhead Allocation
	  	*	** 	 	*	** 	 	*	** 
	 Facilities allocations-In
	  	*	** 	 	*	** 	 	*	** 
	 IT allocations-In
	  	*	** 	 	*	** 	 	*	** 
	 Allocation
	  	*	** 	 	*	** 	 	*	** 
	 Total Expense
	  			 			 		

  

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