Document:

EX-10.1

 EXHIBIT 10.1 

MATERIAL SUPPLY AGREEMENT 

This Agreement is made and entered into and effective as of November 2, 2009 (the “Effective Date”) by and between Johnson
Matthey Inc., a Pennsylvania corporation (“JMI”) and KemPharm, Inc., an Iowa corporation, with corporate headquarters located at 7 Hawkeye Drive Suite 103 North Liberty, IA 52317 (“Company”). This Agreement may be referenced
in orders and other correspondence related hereto as Agreement No. 656 
 WITNESSETH: 

WHEREAS, Company is in the business of developing, manufacturing and marketing pharmaceutical products and Company wishes to develop
and file with the U.S. Food and Drug Administration new drug applications (“NDA” as further defined hereinbelow) for drug products containing active pharmaceutical ingredient (“API” as further defined hereinbelow), and upon
approval of such application(s), Company will manufacture and market product containing such API to be exclusively supplied by JMI (“Product” as further defined hereinbelow) in the United States of America and its Territories (the
“Territory”); and 
 WHEREAS, JMI is in the business of, among other things, developing, manufacturing and marketing raw
materials, and JMI wishes to supply Company with all of Company’s requirements of API for Product subject to the terms of this Agreement; and 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 

ARTICLE 1. Definitions 

“Act” means the Federal Food, Drug and Cosmetic Act of 1938, including any amendments thereto and all regulations promulgated
thereunder. 
 “Additional Royalty” has the meaning provided in Section 4(a)(ii). 

“Affiliate” means, with respect to a party hereto, any person or entity directly or indirectly controlling, controlled by or
under common control with, such party, with “control” meaning the ownership or control, directly or indirectly, of at least fifty percent (50%) of the voting equity of such party or person, or possession of the power to direct or
cause the direction of the management and policies of such party, person or entity, whether through the ownership of voting securities, by contract or otherwise. 

“Annual Gross Sales” has the meaning provided in Section 4(a)(i) 

“API” means an active pharmaceutical ingredient which is an ester of hydrocodone or any derivatives consisting or comprising
of KP201 and/or any analogues thereof, and their salt form(s) including those salt form(s) subsequently selected pursuant to 
Section 2(b). 
  

  
 1. 

[*] = Certain confidential information contained in this document, marked by [*], is filed with the Securities and Exchange Commission pursuant to Rule 406
of the Securities Act of 1933, as amended. 

 “API Manufacturing Cost” means JMI’s fully allocated cost of manufacturing
the API for the Product calculated in accordance with GAAP on a consistently applied basis, including but not limited to costs of direct materials, direct labor and manufacturing overheads expended in the production, packaging, quality control and
assurance, and regulatory compliance of the API. 
 “API Specifications” has the meaning provided in Section 9(a).

 “Bankruptcy Law” has the meaning provided in Section 6(d). 

“Calendar Quarter” means any of the three-month periods beginning January 1, April 1, July 1 and
October 1 of any calendar year during the term of this Agreement. 
 “Calendar Year” means any of the twelve-month
periods beginning January and ending December 31 of any year during the term of this Agreement. 
 “cGMP” means
current Good Manufacturing Practices established by the FDA, as amended from time to time. 
 “Commercially Reasonable
Efforts” means efforts and resources equivalent to those normally employed by a reasonable third party in the pharmaceutical industry, when exercising reasonable business practice and judgment, to diligently develop, manufacture,
procure requisite regulatory approvals, market and/or distribute a product of similar market potential at a similar stage in its product life, taking into account the establishment of the Product in the Marketplace, the number of competitors
supplying products competing in the Marketplace, the conditions or prospects of regulatory approval, the profitability of the Product and other relevant factors 

“Commercial Launch” means the first arm’s length transaction by Company with a third-party for the commercial sale
of the Product after NDA Approval is received. 
 “Company” means KemPharm, Inc., a corporation, with corporate
headquarters located at 7 Hawkeye Drive Suite 103, North Liberty, IA 52317. 
 “Company Shares” has the meaning
provided in Section 2(c). 
 “Confidential Information” means or includes (i) any information or data owned or
licensed by a party hereto which such party treats as proprietary and confidential, including, but not limited to, data, documents, trade secrets, methods, processes, techniques, know-how, show-how and scientific and business information, which
information or data is exchanged between the parties pursuant to this Agreement or in contemplation of the transactions contemplated hereby, and (ii) any and all business and technical information or data that are developed pursuant to this
Agreement. 
 “DEA” means the United States Drug Enforcement Administration and any successor agency thereto. 

“DMF” means a drug master file or any supplement thereto for API filed by JMI with the FDA pursuant to the Act. 

“Effective Date” means the effective date of this Agreement first written above. 

“FDA” means the United States Food and Drug Administration and any successor agency thereto. 

  
 2. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 “Firm Quarter” has the meaning provided in Section 3(b). 

“FOB” means Free on Board. 

“GAAP” means generally accepted accounting procedures in effect at the time of application in the United States of America.

 “Gross Sales” means, with respect to Product, the total amount invoiced for sales of such Product in the Territory by
Company and its Affiliates and licensees to an independent third party in bona fide, arms-length transactions. 
 “Initial
Term” has the meaning provided in Section 6(a). 
 “JMI” means Johnson Matthey Inc., a Pennsylvania
corporation having a place of business at 2003 Nolte Dr., West Deptford, NJ 08066. 
 “KP201” means the Company’s
KP201 conjugate technology related to hydrocodone. 
 “Marketplace” means the market for the commercial sale of narcotic
analgesic pharmaceutical drug products in the Territory. 
 “Minimum Royalty” has the meaning provided in
Section 4(a). 
 “NDA” means a new drug application for Product to be filed by Company with the FDA as provided in
Section 2(a). 
 “NDA Approval” means the approval by the FDA of the Product for sale and marketing following
completion of the regulatory approval process for the NDA. 
 “Net Profits” means, with respect to Product, the Gross Sales
of the Product less: (i) distribution fee, (ii) Product Manufacturing Costs paid by Company, (iii) accrued customary trade, cash and quantity discounts, (iv) accrued rebates, adjustments and allowances, including those for
rejections, recall, returns, and floor stock adjustments, (v) accrued Medicaid and other federal or state rebates, chargebacks and similar items, (vi) if included in the aggregate gross invoice price of such Product, sales or
excise taxes (including any such tax as a value added tax or similar tax or charge), and (vii) freight and insurance on shipment of such Product, each such reduction calculated in accordance with GAAP consistently applied. 

“PPI” means the Producer Price Index determined from Table VI of the Producer Prices and Price Index, commodity code 063
for drugs and pharmaceuticals, United States Bureau of Labor Statistics (or if discontinued such equivalent index as is mutually agreed to by the parties). 

“Product” means the pharmaceutical drug product containing API which is the subject of the NDA. 

“Product Manufacturing Costs” means the fully allocated cost of formulating and manufacturing the Product calculated in
accordance with GAAP on a consistently applied basis, including but not limited to costs of direct materials, direct labor and manufacturing overheads expended in the production, packaging, quality control and assurance, and regulatory
compliance of the Product. 
 “Renewal Terms” has the meaning provided in Section 6(a). 

  
 3. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 “Royalty” has the meaning provided in Section 4(a). 

“Term” means the Initial Term and any Renewal Term(s) of this Agreement. 

“Territory” has the meaning provided in the First Recital above. 

ARTICLE 2. Development and Development Costs 

a) Company shall use Commercially Reasonable Efforts to develop, prepare and submit for approval an NDA with the FDA and perform all related
development activities up to and including receiving NDA Approval in conformity in all material respects with all applicable federal, state and local laws, regulations, orders and ordinances pertinent thereto. 

Company will be responsible for manufacturing of the Product submission batches and satisfactory submission thereof to the FDA for the NDA
submission. For the avoidance of doubt, Company shall be the sole owner of KP201, the Product, and the NDA and shall be responsible for managing the regulatory approval process with respect to the NDA, including handling all quality assurance
decisions with respect to approving the Product for commercial sale, recalls and all other product compliance issues with respect to the Product. With respect to KP201, the Product, and any inventions which Company solely owns, Company shall be the
sole owner of, and solely responsible for the preparation, filing, prosecution and maintenance of, any and all existing and/or hereinafter filed or issued patents, including continuations and substitute applications thereof, and all foreign
counterparts thereof, at Company’s sole expense. 
 Company shall keep JMI informed of the progress of the prosecution of the NDA. Upon
receipt of written or oral communications from the FDA or any other regulatory authority relating to the Product and the Product’s NDA, Company shall notify JMI and provide a copy of any written communication as requested as soon as
reasonably practicable but in no case more than fourteen (14) business days from the receipt thereof. 
 b) Subject to JMI receiving
the necessary DEA quota, JMI shall use Commercially Reasonable Efforts to provide the following development services: 
  

			
	Phase 1:	  	JMI will deliver to Company [*] each of API in [*] forms, to be reasonably determined by Company;
		
	Phase 2:	  	Upon Company’s selection and written notification to JMI of the desired [*] form of the API, JMI will scale and optimize the process for commercial production; and
		
	Phase 3:	  	Upon completion of Phase 2, JMI will prepare and ship to Company [*] of cGMP API in the [*] form selected during Phase 2. The parties anticipate the shipment of such [*] cGMP API will be approximately [*] from the Effective Date,
but in no event shall such shipment be earlier than [*] from the date on which Company notifies JMI of the selected [*] form of the API in Phase 2.

 c) In consideration of the development work provided by JMI pursuant to Article 2(b), and the provision of
research and development quantities of API to Company by JMI hereunder, Company shall issue to JMI 564,516 shares of the Company’s Class A common stock (the “Company Shares”) upon completion of Phase 3 as defined in
Section 2(b). The determination of the Company’s Shares is based on the investment described in the first sentence of this Section 2(c) having a value of $[*] at a per share price of $[*]. Prior to the Company’s issuance of
the Company Shares to JMI, JMI shall execute a subscription agreement substantially in the form attached hereto as Exhibit C. 

  
 4. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 d) JMI shall use Commercially Reasonable Efforts to develop reference standards, impurities,
applicable validated analytical methods, and stability profiles for the API in conformity in all material respects with all applicable federal, state and local laws, regulations orders and ordinances pertinent thereto. 

e) JMI shall prepare and submit to the FDA the DMF and maintain, amend, update and supplement such DMF as required by the FDA in order for an
NDA which incorporates the DMF by reference to receive NDA Approval. During the Term JMI shall grant to Company exclusive access to the DMF for reference in connection with Company’s NDA, and JMI shall file with the FDA such written
authorizations as may be reasonably necessary in order to permit such access. 
 f) Subject to receiving the necessary DEA quotas, the
parties will endeavor to meet the NDA development timelines provided in Exhibit A. 
 g) JMI shall use Commercially Reasonable Efforts to
support Company’s preparation, filing, prosecution and maintenance of the NDA. 
 h) Upon receiving NDA Approval, Company shall use
Commercially Reasonable Efforts in its Commercial Launch of the Product in accordance with all specifications set forth in the regulatory filings applicable to the Product. 

ARTICLE 3. Purchase and Sale of API 

a) During the Term Company agrees to purchase from JMI one hundred percent (100%) of Company’s requirements of the API for the
Product in the Territory, subject to the provision of Section 3(h), and JMI shall satisfy such requirements by selling directly to Company such API in accordance with the forecasting provisions in Section 3(b). JMI shall not supply any
third party in the Territory with API during the Term. 
 b) Unless otherwise mutually agreed in writing, at least [*] in advance of
Company’s Commercial Launch hereunder, Company shall provide JMI with a [*] month estimate, by Calendar Quarter, of its requirements of such API. [*] days prior to the start of each Calendar Quarter (the “Firm Quarter”), the
forecast for such quarter shall become a binding order, which, for record purposes only, Company shall provide JMI with a purchase order. Prior to the aforementioned [*] day, Company may modify its forecast for a Firm Quarter by no more than
[*] from the last estimate for such Firm Quarter unless otherwise mutually agreed upon by both parties by providing written notice of such modification to JMI. Moreover, at least [*] days in advance of the Firm Quarter, Company shall update its
estimates for the [*] Calendar Quarters succeeding the Firm Quarter and JMI shall be entitled to rely on the forecast for the [*] in such rolling forecast for the purpose of obtaining the necessary raw materials for the manufacture of such API. 

For example and for illustration purposes only, if Company desires that Commercial Launch of Product begins on [*], Company shall provide to
JMI no later than [*], a forecast of the quantities required for the calendar quarters beginning on [*]. On [*], the forecast for the quarter beginning on [*] (the Firm Quarter in this example), will become a binding order, and Company will provide
JMI with an updated forecast of the quantities required for the calendar quarters beginning on [*]. 

  
 5. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 Additionally, Company will provide JMI with DEA-222 and Certificate of Available Quota
forms in proportion to such forecasts not less than ten (10) days prior to any requested delivery date. If so requested by Company and subject to Article 5, JMI will use Commercially Reasonable Efforts to supply Company with API in
excess of any estimates or forecasts, provided that failure to provide such excess amounts shall not be deemed to be a breach of this Agreement. 

c) For the initial order of API to be used for commercial sale of the Product, the parties will agree on the forecast, including shipment
schedules, at the earliest practicable time and JMI will use Commercially Reasonable Efforts to supply such API as specified in that order. Batch sizes for lots to be used for submission in Company’s NDA will be defined by the Company, subject
to JMI’s agreement, during the validation process, but shall not be less than one-half of the entire batch size required for the completion of the validation process. 

d) API shall be shipped FOB JMI’s West Deptford plant, packed in accordance with DEA and United States Department of Transportation
requirements for interstate shipment. JMI shall ship the quantity of API ordered by Company in accordance with the delivery instructions set forth in each purchase order and mutually agreed prior to shipment. In the event Company is unable for any
reason to supply the necessary DEA Certificate of Available Quota form prior to the requested delivery date, Company shall pay for such Product which will be held by JMI at Company’s risk of loss pending receipt of the appropriate Quota
form from Company. 
 e) Excepting quantity orders, the terms and conditions contained in any purchase order, acknowledgment and invoice
issued by either party in connection with this Agreement shall be void and of no effect. 
 f) JMI shall produce API in conformance with the
applicable API Specifications set forth at Exhibit B. If the FDA modifies the API Specifications as a condition for obtaining NDA Approval and Company so notifies JMI in writing, JMI shall use Commercially Reasonable Efforts to perform its
obligations under this Agreement at no additional cost to Company; provided that in the event that the Specifications are changed in a manner that results in increased costs to JMI, the parties shall negotiate in good faith a price increase to
be reflected in the API Manufacturing Cost that is commensurate with the cost increase. 
 g) Except with respect to JMI’s
responsibility in connection with the DMF as provided in Section 2(e), Company shall be responsible for all regulatory and commercial activities related to Product, including without limitation, performing quality assurance testing and
stability testing, maintaining adverse drug information, complaints and annual reports, so that the Product conforms to all applicable federal, state and local laws, regulations orders and ordinances. 

h) Upon Commercial Launch of the Product, JMI shall identify and qualify an alternative site of JMI or its Affiliates to serve as a secondary
supplier of API, subject to the approval of Company, which approval shall not be unreasonably withheld. In the event JMI is unable to qualify a secondary supplier, Company may qualify a secondary supplier to provide no greater than [*] of the API
for each Calendar Year; provided, however, that in the event JMI is unable to satisfy Company’s requirements, then: (i) Company may purchase from such secondary supplier [*], and (ii) JMI shall [*], if any, [*] the secondary supplier
[*] so long as JMI consents to the [*] such secondary supplier, which consent shall not be unreasonably withheld, and Company does not include the [*] in the calculation of [*] for purposes of calculating the [*]. For the avoidance of doubt, all [*]
calculations will be based on [*] and will be [*]. 

  
 6. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 ARTICLE 4. Price and Payment 

a) Royalty: During the Term Company will pay JMI a royalty on Net Profits. The total royalty shall be calculated as the Minimum Royalty
(defined below) plus the Additional Royalty (defined below). The Minimum Royalty and Additional Royalty are collectively referred to as the “Royalty” or “Royalties”. 

i) Minimum Royalty: JMI will provide Company, free of charge, any API which is delivered for use prior to the completion of the
Product’s validation process. In consideration thereof, during the Term, Company shall pay JMI a minimum royalty on the Net Profits of the Product sold in each Calendar Quarter in accordance with the following tiered royalty rate based on the
Gross Sales of the Product for such Calendar Year (“Annual Gross Sales”) (the foregoing royalty hereinafter the “Minimum Royalty”): 
  

					
	 Annual Gross Sales (in USD) of the Product
	  	Royalty Rate on Net Profits	 
	 For the First $[*]
	  	 	[	*]% 
		
	 From Greater than $[*] up to and including $[*]
	  	 	[	*]% 
		
	 From $[*] to $[*]
	  	 	[	*]% 
		
	 From $[*] or greater
	  	 	[	*]% 

 For clarification and illustration purposes only, calculation of Minimum Royalty will be based on the following examples: the
Minimum Royalty rate on Net Profits will be [*]% until cumulative sales reach $[*] USD after which time the Minimum Royalty rate will fall to the second tier i.e. [*]%; for example if the Gross Sales of the Product in the first three months of a
Calendar Year were $[*], $[*], and $[*] respectively, the Minimum Royalty would be calculated as [*]% of Net Profits from the first $[*] of Annual Gross Sales plus [*]% of Net Profits from the next $[*] in Annual Gross Sales. If the
cumulative Net Profit in any Calendar Quarter is a negative figure (a “Net Loss”), then for purposes of calculating the Minimum Royalty, such Net Loss shall be carried forward and offset against a subsequent Calendar Quarter’s Net
Profit; provided, however, that a Net Loss for any given Calendar Quarter cannot be carried forward beyond the [*] immediately following consecutive Calendar Quarters for purposes of calculating the Minimum Royalty for the subsequent Calendar
Quarters. 
 ii) Additional Royalty: Subject to Section 4(a)(iii), JMI will provide Company, free of charge, any API which is
delivered during the period of time occurring immediately after the completion of the validation process and continuing until API is delivered for use in Company’s Commercial Launch. In consideration thereof, notwithstanding payment of the
Minimum Royalty, Company shall pay JMI an additional royalty on the Net Profits of the Product sold in each Calendar Quarter in accordance with the following tiered royalty rate based on the Annual Gross Sales of the Product in such Calendar Year
(“Additional Royalty”): 
  

					
	 Annual Gross Sales (in USD) of the Product
	  	Royalty Rate on Net Profits	 
	 For the First $[*]
	  	 	[	*]% 
		
	 From Greater than $[*] up to and including $[*]
	  	 	[	*]% 
		
	 From $[*] or greater
	  	 	[	*]% 

  
 7. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 For clarification and illustration purposes only, calculation of Additional Royalty will be based on the
following examples: the Additional Royalty rate on the Net Profits will be [*]% until cumulative sales reach $[*] USD after which time the Additional Royalty rate will fall to the second tier i.e. [*]%; for example if the Annual Gross Sales of the
Product in the first three months of a Calendar Year were $[*], $[*] and $[*], respectively, the Additional Royalty would be calculated as [*]% of Net Profits from the first $[*] of Annual Gross Sales plus [*]% of Net Profits from the next $[*] in
Annual Gross Sales. For purposes of calculating the Additional Royalty, a Net Loss during any Calendar Quarter shall be carried forward and offset against a subsequent Calendar Quarter’s Net Profit; provided, however, that a Net Loss for any
given Calendar Quarter cannot be carried forward beyond the [*] immediately following consecutive Calendar Quarters for purposes of calculating the Additional Royalty for the subsequent Calendar Quarters. 

(iii) After the completion of the validation process relating to the API, JMI and Company may negotiate and agree, in the form of a written
addendum to the Agreement, upon a price per unit which Company shall pay JMI, in lieu of the Additional Royalty, for any API which is delivered during the period of time occurring immediately after the completion of the validation process and
continuing until API is delivered for use in Company’s Commercial Launch. If the parties so agree, Company will pay the agreed price per unit for such API and will not pay the Additional Royalty to JMI. If the parties cannot agree on such a
price per unit of API, JMI will supply such API to Company free of charge and Company will pay Additional Royalty to JMI, pursuant to Section 4(a)(ii). Nothing in this Section 4(a)(iii) affects the required payment of the Minimum Royalty
pursuant to Section 4(a)(i). 
 iv) Sales by Company to its Affiliates shall be made and, for purposes of the calculation of Annual
Gross Sales and Net Profits, shall be deemed third party transactions and shall be deemed to have been made, if not actually made, at the price Company would have charged an unaffiliated buyer in an arm’s length transaction of similar size and
scope. 
 b) Price of API for Commercial Use by Company. Beginning with API delivered for use in Company’s Commercial Launch and
continuing until the expiration or termination of the Initial Term and Renewal Terms, if any, JMI will supply API for a price equal to the API Manufacturing Cost, subject to the following: The parties hereto acknowledge and agree that as
of the Effective Date, JMI is unable to establish the API Manufacturing Cost. Therefore, the parties agree that after the completion of the Product’s validation process and as soon as Commercially Reasonable Efforts permit, JMI will begin to
compute the API Manufacturing Cost. Any Calendar Year-to-year increase in the API Manufacturing Cost in excess of the applicable PPI shall require the good faith negotiation and mutual agreement of the parties. JMI shall maintain true and accurate
records, files and books of account containing all data reasonably required for the full computation and verification of the API Manufacturing Cost for each Calendar Quarter during the term of the Agreement. Such books and records shall be in
accordance with GAAP consistently applied and shall be kept separate from records, files and books of account not pertaining solely to the API. JMI shall permit Company, or at JMI’s option, a mutually agreed independent auditor, at
Company’s expense, to independently audit the API Manufacturing Cost. 
 c) Company shall pay all invoices from JMI for API pursuant to
Sections 4(a)(iii) and 4(b) in full within [*] days after the date of the invoice in the form of a wire, check or money order. Company shall pay JMI any Royalties due under Section 4(a) within [*] days after the end of each Calendar
Quarter in which Product is sold by Company and Net Profits resulting from such sales are greater than zero in the form of wire, check or money order (or other method of payment approved by JMI in writing). Company will make and retain for a period
of [*] years following the termination of this Agreement true and accurate records, files and books of account containing all the data reasonably required for the full computation and verification of Net Profits and Royalties on the Product for
each Calendar Year occurring during the term of the Agreement. Such books and records shall be maintained in accordance 

  
 8. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
with GAAP consistently applied and shall be kept separate from records, files and books of account not pertaining solely to the Product. Company shall permit JMI or, at Company’s
option, a mutually agreed independent auditor, at JMI’s cost and expense, to inspect relevant books and records during regular business hours upon not less that fourteen (14) business days written notice. 

d) A charge of [*] per month, or the maximum amount permitted by law, whichever is less, shall be due on any amounts due under
Section 4(b) which are more than [*] days past due. Company shall be responsible for any duty, sales, use, excise or other tax applicable (except income taxes) to the sales of API by JMI to Company. 

ARTICLE 5. DEA Quota and Supply Conditions 

a) The parties expect that both the Product and the API will be scheduled under the Federal Controlled Substances Act. JMI and Company are
required to obtain a quota from the DEA before producing the Product or the API. Such quotas are limited; therefore, each of the parties shall use its Commercially Reasonable Efforts to obtain DEA quotas for the Firm Quarter requested by Company,
and to cooperate with the other party to obtain sufficient quotas. 
 b) Each party’s obligation hereunder is subject to obtaining the
necessary DEA quota. Except as provided in Section 3(f), neither party shall be liable to the other for that quantity of Product or API which the other party is unable to supply or take as a result of failure to obtain a DEA quota, provided
that each party has used Commercially Reasonable Efforts to obtain sufficient DEA quota. 
 ARTICLE 6. Term 

a) This Agreement shall become effective as of the Effective Date and shall continue in force i) in the event Company obtains a valid and
enforceable patent relating to KP201 and/or the API, until the later of the earliest date on which all of the Company’s rights in all such patents have expired or the tenth
(10th) anniversary of the date on which the Commercial Launch occurs, or ii) in the event the Company does not obtain a valid and enforceable patent on KP201 or the API, for a period of five
(5) years following Commercial Launch of the Product (in either case of (i) or (ii) being applicable, the “Initial Term”). Upon the expiration of the Initial Term, this Agreement shall automatically continue in force
thereafter for subsequent renewal periods of two (2) years (“Renewal Terms”) unless and until terminated at the expiration of the Initial Term or any Renewal Term by either party providing not less than twelve (12) months written
notice prior to the expiration of the Initial Term or any Renewal Term, as the case may be. 
 b) Notwithstanding the foregoing, the Term
shall terminate upon the unanimous written consent of the parties. 
 c) In the event of a material breach of this Agreement by a party and
subject to Article 13, the other party shall have the right to deliver a written notice of breach to the defaulting party. If such breach is not cured within [*] days after delivery of such notice, the nondefaulting party, at its sole option, may
terminate the term of this Agreement at any time by delivery of written notice of termination to the defaulting party; provided, however, if the breach cannot reasonably be cured despite Commercially Reasonable Efforts within a [*] day period, then
the cure period shall be extended for no more than an additional [*] day period, provided the defaulting party continues to make Commercially Reasonable Efforts to cure the breach. 

d) In the event that a party shall (i) voluntarily commence any proceeding or file any petition seeking relief under any Federal, state
or local bankruptcy, insolvency, liquidation, receivership 

  
 9. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
or similar law (a “Bankruptcy Law”), (ii) consent to the institution of, or fail to contravene in a timely and appropriate manner, any such proceeding or the filing of any
such petition, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator or similar official for such party or for a substantial part of its property or assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding or (v) make a general assignment for the benefit of creditors, the other party, at its sole option, may terminate the Term at any time by delivery of written notice of
termination to the party subject to such event. 
 e) In the event that a party shall be subject to the commencement of any involuntary
proceeding or the filing of any involuntary petition in a court of competent jurisdiction seeking (i) relief in respect of such party or of a substantial part of its property or assets under any Bankruptcy Law, (ii) the appointment of
a receiver, trustee, custodian, sequestrator, or similar official for such party or for a substantial part of its property or assets or (iii) the winding-up or liquidation of such party, and such proceeding or petition shall continue
undismissed for [*] days or an order or decree approving or ordering any of the foregoing shall continue unstayed and in effect for [*] days, the other party, at its sole option, may terminate the Term at any time by delivery of written notice of
termination to the party subject to such event. 
 f) Termination for default or breach hereunder or for any other reason shall have no
effect on performance obligations or amounts to be paid which have accrued up to the effective date of such termination. Articles 8, 9, 10, 11 and 15, Section 2(c), and this Section 6(f) shall indefinitely survive the expiration or other
termination of this Agreement. 
 ARTICLE 7. Assignment or Transfer of Interest 

Neither party shall directly or indirectly sell, assign or transfer any part or all of its interest in this Agreement without the prior written
consent of the other party, which consent shall not be unreasonably withheld; provided, however, that a change in control of a party shall not be deemed to constitute a transfer of such party’s interest. Notwithstanding the foregoing, JMI may,
with the prior approval of Company, transfer its interest to an Affiliate of JMI if such Affiliate is a qualified manufacturer. Subject to the first sentence of this Article 7, in the event Company sells or transfers its NDA to the Product, this
Agreement shall also be assigned to the purchaser or transferee and become an obligation of the subsequent NDA holder. 
 ARTICLE 8.
Confidentiality 
 The parties hereto agree that their obligations to maintain the confidentiality of the Confidential Information
shall be not less than the obligations described in the Confidentiality Agreement by and among JMI and Company dated November 28, 2009, a copy of which is attached hereto as Exhibit D, notwithstanding that such agreement may have been
terminated prior to the termination of the confidentiality obligations under this Agreement. The confidentiality obligations under this Agreement shall remain in full force and effect during the Term and shall continue for [*] years beyond the
expiration or termination of this Agreement. 
 ARTICLE 9 Warranties and Limitations 

a) JMI warrants that the API supplied to Company hereunder will conform at the time of shipment from JMI’s West Deptford, New Jersey plant
to the specifications described in Exhibit B attached hereto (the “API Specifications”), as the API Specifications may from time-to-time be amended by mutual written agreement or as required by the FDA, other governmental body in the
United States or the then current edition of the U.S. Pharmacopoeia. 

  
 10. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 b) JMI warrants to Company that JMI has not caused, as of the date of each shipment hereunder of
any articles subject to the provision of the Act, such article, when shipped from JMI’s West Deptford, New Jersey plant, to be adulterated or misbranded within the meaning of the Act or of any applicable state law in which the definitions of
adulteration and misbranding are substantially the same as those contained in the Act, or an article that may not, under the provision of Sections 404, 505, or 512 of the Act, be introduced into interstate commerce. Except as expressly stated in
paragraphs a) and b) of this Article 9, JMI MAKES NO OTHER REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY AS TO MERCHANTABILITY, FITNESS FOR PARTICULAR PURPOSE, OR ANY OTHER MATTER WITH RESPECT TO
THE API WHETHER USED ALONE OR IN COMBINATION WITH OTHER SUBSTANCES. 
 c) JMI will provide Company together with each invoice the results of
all assays required to be run under the API Specifications. Any shipment of API will be deemed accepted by Company no later than [*] days after receipt by Company or its designee of the API. If such shipment of API does not comply with the API
Specifications, has been damaged prior to being provided to the carrier for shipment, or if there is a shortage in the quantity prior to being provided to the carrier for shipment, Company shall promptly notify JMI in writing, but, in any event, not
later than [*] days after receipt. Company or its designee shall promptly return such API to JMI at JMI’s expense, or Company shall undertake such other response as is mutually agreed upon in writing by the parties. JMI shall have the right,
but not the obligation, to retest the rejected API within [*] days after its return from Company. In the event that JMI disputes Company’s determination that API does not meet the API Specifications or has been damaged or is subject to a
shortage in quantity, the parties shall meet to resolve, in good faith, such dispute; provided that written notice by JMI to Company of any such dispute must be made no later than [*] days after Company’s return of the API. 

d) Upon return of any rejected API, and JMI’s agreement, or a final determination in accordance with this Agreement, that such API fails
to comply with JMI’s limited warranty or has been damaged, JMI will replace the API at JMI’s cost and will resubmit to Company within [*] days of receipt of additional raw materials. COMPANY’S EXCLUSIVE REMEDY FOR BREACH OF WARRANTY
SHALL BE DIRECT DAMAGES, AND JMI’s LIABILITY TO COMPANY FOR ANY AND ALL LOSSES OR DAMAGE FROM ANY CAUSE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ALLEGED NEGLIGENCE, SHALL IN NO EVENT EXCEED THIS OBLIGATION TO REPLACE THE API AND RESUBMIT IT
TO COMPANY, OR IN THE EVENT THAT JMI FAILS TO REPLACE THE API, THEN TO [*] FOR THE [*] A SECONDARY SUPPLIER; provided that JMI’s obligation to [*] for the [*] a secondary supplier is subject to the following conditions: (x) JMI consents to
the [*] such secondary supplier, which consent shall not be unreasonably withheld, and (y) Company shall not include the [*] in the calculation of [*] for purposes of calculating the [*]. For the avoidance of doubt, all [*] calculations will be
based on [*] and will be [*]. Notwithstanding the forgoing, if Company rejects three or more API shipments during any [*] consecutive month period, and JMI agrees, or a final determination is made, that each such shipment failed to comply with
JMI’s limited warranty under this Article 9, then Company may find JMI to be in material breach and exercise its right under Section 6(c) to terminate the Agreement. JMI shall not be liable for, and Company assumes responsibility for, all
personal injury and property damage resulting from the handling, possession, or use of the API following Company’s or its designee’s receipt of the API. 

ARTICLE 10. Limitation on Liability 

Any provision of this Agreement to the contrary notwithstanding, neither party will be liable to the other party for lost profits, production
losses, special, incidental or consequential damages sustained directly by that party, whether such party’s claim is in contract, negligence, strict liability or otherwise. 

  
 11. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 ARTICLE 11. Indemnification  

a) Company agrees to indemnify and hold harmless JMI from all claims, demands, losses, liabilities, damages, and/or expenses (including,
without limitation, attorneys fees) (“Liabilities”) which may be sustained or claimed against JMI arising out of the development, manufacture, making, handling, possession, use, offer for sale, sale, supply or import of the API for
Product, except to the extent that such Liabilities arise or result from JMI’s liability under Section 11(b). The forgoing indemnity is subject to JMI promptly notifying Company in writing of all claims and threatened claims against
JMI for which JMI may be entitled to indemnity hereunder. Company shall have the right to defend and/or settle any such claim and JMI shall give Company such defense. JMI shall have the right to participate in such defense at its cost. 

b) JMI agrees to indemnify and save harmless Company from all Liabilities which may be sustained or claimed by third-parties against Company
based on JMI’s negligence or willful misconduct, which causes API to fail to meet API Specifications, except to the extent of Company’s liability under Section 11(a,) provided however, JMI’s maximum liability under the Agreement
shall not exceed, in the aggregate, [*] Dollars US. The foregoing indemnity is subject to Company promptly notifying JMI in writing of all claims and threatened claims against Company for which Company may be entitled to indemnity hereunder. JMI
shall have the right to defend and/or settle any such claim, and Company shall give JMI such defense. Company shall have the right to participate in such defense at its cost. 

c) JMI shall carry comprehensive general liability insurance, including insurance against claims for bodily injury or property damage, in an
amount of not less than $[*] per occurrence and $[*] in the aggregate. Company shall carry comprehensive general liability insurance, including coverage for claims of product liability, bodily injury or property damage, in an amount not
less than $[*] per occurrence and $[*] in the aggregate, Such policy shall be endorsed to include the following: the policies shall provide for thirty (30) days’ notice to the other Party of cancellation or material change in the
coverage before such cancellation or change takes effect. Each party shall name the other party as additional insured on the insurance policies required to be maintained under this Article. 

ARTICLE 12. Gross Inequities 

It is the intent of the parties hereto that they shall mutually benefit from the terms, conditions and provisions of this Agreement, and in the
event that either party shall suffer a gross inequity resulting from such terms, conditions or provisions, or from a substantial change in circumstances or conditions, the parties shall negotiate in good faith to resolve or remove such inequity. It
is mutually understood and agreed, however, that nothing herein shall be construed to relieve either party of any of its obligations under this Agreement, unless and until such resolution or removal has been agreed to in writing by both parties.

 ARTICLE 13. Force Majeure 

Failure of JMI or Company to perform its obligations under this Agreement, other than the payment of amounts invoiced, shall not subject JMI or
Company to any liability or a breach if such failure is caused or occasioned by an event of force majeure, including but not limited to, an act of God, or the public enemy, fire, explosion, flood, drought, war, riot, sabotage, embargo, strikes,
or other labor trouble, failure in whole or in part, of suppliers to deliver on schedule materials, equipment or machinery, to interruption of or delay in transportation, compliance with any order, regulation or request of any government of
competent jurisdiction or any officer, department, agency or committee thereof, including requisition or allocation or establishment of priority, or by compliance with a request authorized by such governmental authority of any manufacturer for
material to be used by it, or by any 

  
 12. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
other event or circumstance of like or different character to the foregoing beyond the reasonable control of the nonperforming party. If either party suffers an event of force majeure, it shall
immediately notify the other party and shall use all reasonable efforts to minimize the loss or inconvenience suffered by both parties. Both parties shall cooperate in good faith in order to minimize such loss and inconvenience and to reach an
agreement as to how to proceed. 
 ARTICLE 14. Authorization 

Each party represents and warrants to the other that all corporate action on the part of such party necessary for the authorization, execution
and delivery of this Agreement and the performance of all obligations hereunder has been taken and persons executing this Agreement have due power and authority to do so. 

ARTICLE 15. Other Provisions 

a) In connection with the storage, distribution, sale or marketing of the Product or API pursuant to this Agreement, JMI and Company agree to
use their best efforts to perform such activities in compliance with all applicable federal, state, and local laws, regulations and ordinances, including, but not limited to, the Act, as amended from time to time, and all rules and
regulations promulgated thereunder. 
 b) Nothing contained in this Agreement and no action taken by any party to this Agreement shall be
deemed to constitute such party or any such party’s employees, agents, or representatives to be an employee, agent, or representative of the other party or shall be deemed to create any partnership, joint venture, association, or
syndicate among the parties, or shall be deemed to confer on any party any express or implied right, power, or authority to enter into any agreement or commitment, expressed or implied, or to incur any obligation or liability, on behalf of the other
party. 
 c) The parties shall execute any other instruments or perform any other acts that are or may be reasonably necessary to effectuate
and carry on the obligations created by this Agreement. 
 d) This Agreement shall be binding upon and inure to the benefit of the permitted
successors of the parties. 
 e) As to its subject matter, this Agreement, together with the Confidentiality Agreement, constitutes the
entire agreement of the parties and supersedes all prior agreements between the parties. This Agreement may not be modified or amended except by an instrument in writing executed by the parties. 

f) Failure of either party to exercise any right under this Agreement shall not be deemed to be a waiver thereof. 

g) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which shall constitute
one and the same instrument. 
 h) This Agreement shall be governed by and construed under the laws of the State of Delaware, excluding its
conflict of law principles. 

  
 13. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 i) Any notice or other communication that a party desires to give to another party shall be in
writing, and shall be deemed effectively given upon personal delivery, delivery by overnight courier, or upon transmission by telegram, telex, or, with receipt confirmed, telecopy, addressed to the other party at the address show below or at
such other address as a party may designate by written notice in accordance with this subparagraph (i). 
  

			
	If to JMI:	  	Johnson Matthey Inc.
		  	2003 Nolte Drive
		  	West Deptford, NJ 08066
		  	Attention: John Fowler, President
		  	Fax: (856) 384-4582
		
	with a copy to:	  	Johnson Matthey Inc.
		  	435 Devon Park Drive Suite 600
		  	Wayne, PA 19087
		  	Attention: Robert Talley, President-Corporate & General Counsel
		  	Fax: (610) 971-3022
		
	If to Company:	  	KemPharm, Inc.
		  	7 Hawkeye Drive, Suite 103
		  	North Liberty, IA 52317
		  	Attention: Travis Mickle, President
		  	Fax: (319) 665-2577
		
	With a copy to:	  	Simmons Perrin Moyer Bergman PLC
		  	115 3rd St. SE, Suite 1200
		  	Cedar Rapids, IA 52401
		  	Attention: Thomas DeBoom
		  	Fax: (319) 366-1917

 j) In the event that any term or provision of this Agreement is invalid or is declared null and void, then
both parties shall agree on a substitute for such invalid and void terms with the intent of achieving the economic intent of the parties. The invalidity or voidness of any term or condition shall not affect the validity of any other term or
condition contained herein nor the Agreement as a whole unless the provisions are the essence of, or inseparable from the remainder of the Agreement. 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. 

 

											
	Johnson Matthey Inc.	 		 	KemPharm, Inc.	 	
						
	By:	 	 /s/ John B. Fowler, IV
	 		 	By:	 	 /s/ Travis C. Mickle
	 	
	Its: President	 		 	Its: President	 	
	Date: May 13, 2010	 		 	Date: May 21, 2010	 	

  
 14. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 EXHIBIT A 

PROPOSED NDA DEVELOPMENT TIMELINES 
 [*]

  
 15. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 EXHIBIT B 

API SPECIFICATIONS 
 None

  
 16. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 EXHIBIT C 

SUBSCRIPTION AGREEMENT 

  
 17. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

KEMPHARM, INC. 

SUBSCRIPTION AGREEMENT 

CLASS A COMMON 
  

 
 THE SHARES OF SERIES CLASS A COMMON
STOCK OF KEMPHARM, INC. HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THESE SHARES CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF, AND
WILL NOT BE TRANSFERRED OF RECORD, EXCEPT IN COMPLIANCE WITH THE RESTRICTIONS ON TRANSFERABILITY CONTAINED IN THE GOVERNING DOCUMENTS (DEFINED BELOW), AND APPLICABLE FEDERAL AND STATE SECURITIES LAWS. 

 
  

1. Subscription. Johnson Matthey Inc., a Pennsylvania corporation (the “Subscriber”) hereby agrees to
acquire 564,516 shares of Class A Common Stock of KemPharm, Inc., an Iowa corporation (the “Company”), set forth on the signature page hereof (the “Shares”), in accordance with and subject to the terms
and conditions set forth in this Subscription Agreement. By execution hereof, the Subscriber acknowledges that the Company is relying upon the accuracy and completeness of the Subscriber’s representations contained herein in complying with its
obligations under applicable securities laws. 
 2. Amount and Timing of Payment. The Shares are being issued hereunder
pursuant to that certain Material Supply Agreement effective as of November 2, 2009, by and between Subscriber and the Company as consideration for certain development work performed by Subscriber. Pursuant to said Material Supply Agreement,
the Shares are being issued at a per share price of $[*]. No payment or further consideration is due from Subscriber for issuance of the Shares. 

3. Adoption of Governing Documents. Subscriber hereby accepts, adopts and agrees to be bound by each and every provision of the
Amended and Restated Articles of Incorporation of the Company, including all amendments and restatements of the same as of the date hereof (the “Articles of Incorporation”), and the Company’s Amended and Restated Bylaws, as
amended (the “Bylaws”). The Articles of Incorporation and the Bylaws are collectively referred to as the “Governing Documents.” 

4. Representations, Warranties, Acknowledgements and Agreements of the Company. The Company represents, warrants, acknowledges
and agrees that: 
  

	 	(a)	The Company is duly organized, validly existing and in good standing under the laws of the State of Iowa. 

  

	 	(b)	This Subscription Agreement has been duly authorized by all necessary corporate action on behalf of the Company and is a valid and binding agreement on the part of the Company. All corporate action necessary to the
authorization, issuance, and delivery of the Shares, including, without limitation, the approval by the holders of a majority in interest of the Company’s preferred stock. Upon issuance pursuant to the terms hereof, the Shares will be fully
paid and non-assessable. 

  

	 	(c)	The capitalization of the Company as of the date hereof is set forth on Exhibit A hereto. 

  
 A-1. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

5. Representations, Warranties, Acknowledgements and Agreements of Subscriber. Subscriber represents, warrants, acknowledges,
agrees and understands that: 
  

	 	(a)	The Shares are a speculative investment that involves a significant degree of financial risk. There is no assurance of any economic, income or other benefit from such investment. Subscriber has such knowledge and
experience in financial, tax, investment and business matters so as to be capable of evaluating the merits and risks of an investment in the Shares. 

  

	 	(b)	Subscriber is a Pennsylvania corporation validly existing in good standing. 

  

	 	(c)	Subscriber has not been offered the Shares by any form of general solicitation or general advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper,
magazine, or similar media or broadcast over television, radio, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising. 

 

	 	(d)	Subscriber has had access prior to the execution of this Subscription Agreement to all information Subscriber considered necessary to enable Subscriber to evaluate the merits and risks of a prospective investment in the
Shares. Subscriber has had the opportunity to ask questions of and receive answers from the Company, its officers, or a person or persons acting on its behalf, and to obtain any additional information necessary to verify the accuracy of the
information to which Subscriber has had access. All questions raised by Subscriber have been answered to the full satisfaction of Subscriber. 

  

	 	(e)	Subscriber understands that no Federal or state agency has recommended or endorsed the Shares or made any finding or determinations as to the fairness, accuracy or completeness of the provisions of this Subscription
Agreement, the Governing Documents, the Shares or the issuance of the Shares. 

  

	 	(f)	The Shares have not been registered under the Securities Act or applicable state securities laws, and are being offered and sold in reliance upon exemptions provided in the Securities Act and rules promulgated
thereunder, and applicable state securities laws and regulations (collectively “Applicable Laws”). Subscriber makes the representations and warranties in this Subscription Agreement with the intent that the same may be relied upon
by the Company in complying with such exemptions. 

  

	 	(g)	The Company has no obligation or intention to register the Shares, or file the reports or make public the information required by Rule 144 under the Securities Act relating to trading in restricted securities, and that
Rule 144 may not otherwise be available to permit such trading. Subscriber understands that the Company has no intention of filing any registration statement under the Applicable Laws that would require the Company to include any portion of the
Shares because of the piggy-back rights granted to the Shares. 

  

	 	(h)	Subscriber is acquiring the Shares subscribed for herein for Subscriber’s own account for investment only and without any intention of reselling or distributing such Shares except in accordance with Applicable Laws
and Governing Documents. 

  

	 	(i)	Subscriber shall not sell, pledge, hypothecate, donate or otherwise transfer the Shares, whether or not for consideration, except (i) in accordance with Applicable Laws and the Governing Documents and
(ii) upon the issuance of a favorable legal opinion rendered by counsel for the Company, or such other evidence as may be satisfactory to the Company, to the effect that any such transfer shall not be in violation of Applicable Laws.

  
 A-2. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

Subscriber agrees that should Subscriber desire to sell, pledge, hypothecate, donate or otherwise transfer the Shares subscribed for herein,
any attorney’s fees incurred in connection with the opinion of counsel obtained by the Company in connection therewith shall be paid in advance by Subscriber. 
  

	 	(j)	Subscriber will need and is able to bear the economic risk of the investment in the Shares for an indefinite period of time. Subscriber has adequate financial or other means for providing for Subscriber’s current
needs and contingencies and has no need for liquidity in this investment. Subscriber will not be readily able to liquidate the investment in the Shares in case of an emergency. 

 

	 	(k)	A notation will be made on the records of the Company regarding restrictions on the transferability of the Shares. The certificates representing the Shares will contain, In addition to any other legends required by the
Governing Documents, a legend substantially to the following effect: 

 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, AND HAVE BEEN ACQUIRED PURSUANT TO AN INVESTMENT REPRESENTATION ON THE PART OF THE REGISTERED HOLDER OF SUCH SECURITIES FOR THE REGISTERED
HOLDER’S OWN ACCOUNT FOR INVESTMENT, AND NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE SOLD, PLEDGED, HYPOTHECATED OR TRANSFERRED BY THE REGISTERED HOLDER EXCEPT UPON COMPLIANCE WITH THE ARTICLES OF
INCORPORATION AND BYLAWS OF THE COMPANY AND UPON ISSUANCE OF A FAVORABLE OPINION OF COUNSEL FOR THE COMPANY OR SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT TRANSFER OF SUCH SECURITIES
WILL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933, AS AMENDED, APPLICABLE STATE SECURITIES LAWS OR ANY RULE OR REGULATION THEREUNDER. 
  

	 	(1)	This Subscription Agreement has been duly authorized by all necessary corporate action on behalf of the Subscriber and will be a valid and binding agreement on the part of the Subscriber. All corporate action necessary
to the authorization, issuance, and delivery of the Shares will be taken prior to their issuance. Upon issuance, the Shares will be fully paid and non-assessable. 

6. Conditions and Contingencies. The Subscriber’s and the Company’s respective obligations hereunder shall be subject
to and contingent upon satisfaction of Section 42(b) of the Material Supply Agreement effective as of November 2, 2009 by and between the Subscriber and the Company. 

7. Information Rights. For so long as the Subscriber and/or any of its affiliates is a holder of the Shares, the Company shall
furnish to the Subscriber (i) within 60 days after the end of its 2nd fiscal quarter, or earlier if available, an unaudited balance sheet of the Company as at the end of such quarter and
unaudited statements of income and cash flows of the Company for such two-quarter period, and (ii) within 180 days after the end of each fiscal year, or earlier if available, an audited balance sheet of the Company as at the end of such year
and audited statements of income, stockholders’ equity and changes in cash flow of the Company for such year, in each case prepared in accordance with generally accepted accounting principles consistently applied. 

  
 A-3. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

8. Irrevocability; Binding Effect. The Subscriber acknowledges and agrees that, once accepted by the Company, the subscription
hereunder is irrevocable, that the Subscriber is not entitled to cancel, terminate or revoke this Subscription Agreement or any agreement of the undersigned hereunder and that this Subscription Agreement and such other agreements shall survive the
death or disability of the Subscriber and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives, and assigns. If the undersigned is more than one person, the
obligations of the undersigned hereunder shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his or her heirs,
executors, administrators, successors, legal representatives, and assigns. 
 9. Modifications; Assignability. Neither this
Subscription Agreement nor any provision hereof shall be waived, modified, discharged or terminated except by an instrument in writing signed by both the Subscriber and the Company. This Subscription Agreement is not assignable by the Subscriber
without the written consent of the Company. 
 10. Counterparts. This Subscription Agreement may be executed through the use
of separate signature pages or in any number of counterparts, and each of such counterparts shall, for all purposes, constitute one agreement binding on all parties. 

11. Entire Agreement. This Subscription Agreement contains the entire agreement of the parties with respect to the subject
matter hereof and there are no representations, covenants or other agreements except as stated or referred to herein. 
 12.
Severability. The invalidity, illegality or unenforceability of any provision of this Subscription Agreement shall not affect the validity, legality or enforceability of the remaining provisions of this Agreement, which shall continue
to be valid and enforceable. In the event any provision of this Agreement is held to be invalid, illegal or unenforceable as written, but valid, legal and enforceable if modified, then such provision shall be deemed to be amended to such extent as
shall be necessary for such provision to be valid, legal and enforceable and it shall be enforced to that extent. 
 13. Governing
Law. This Subscription Agreement shall be construed in accordance with and governed by the laws of the State of Iowa. 

[SIGNATURE PAGE FOLLOWS] 

  
 A-4. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

SIGNATURE PAGE 
 SIGNATURE OF SUBSCRIBER 

Johnson Matthey Inc. 
  

					
	 /s/ John B. Fowler, IV
		

					
			
	By (print name):		 John B. Fowler,
IV                                         
     		

					
			
	 Its:
		 President                                   
                                         
          		

					
			
	Date:		
 May 13th 2010       
                                         
                
		

  

			
	Employer Identification Number:		  23-0411710

 (Also include Social Security Numbers if a Trust or Partnership) 

 

			
	Business (Residence) Address:		  435 Devon Park Drive, Suite 600, Wayne, PA 19087-1998

  

			
	Mailing Address (if different from above):		 Same

 Business: Tel. No. (610) 971.3000; Facsimile No. (610) 971-3022 

ACCEPTANCE: 
 KemPharm, Inc. hereby executes this
Agreement as of the date set forth below. 
  

					
	 /s/ Travis C. Mickle
		
			
	 By:
		  Travis C. Mickle
		
			
	 Its:
		  President, CSO
		
			
	 Date:
		  May 17, 2010
		

  
 A-5. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 SUBSCRIPTION AGREEMENT 

EXHIBIT A 

Capitalization Table 

  
 A-6 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended 

 EXHIBIT D 

CONFIDENTIALITY AGREEMENT 

  
 19 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 MUTUAL NONDISCLOSURE AND 

CONFIDENTIALITY AGREEMENT 

This Mutual Nondisclosure and Confidentiality Agreement (“Agreement”) is entered into on the 26th day of November, 2008, by and
between Kempharm, INC with principal place of business at 7 Hawkeye Drive Suite 103 North Liberty, Iowa 52317 and Johnson Matthey Inc., with a place of business at 2003 Nolte Drive West Deptford, NJ 08066. 

WHEREAS, one party (“Disclosing Party”) possesses certain confidential proprietary information and in connection with the pursuit,
evaluation and/or feasibility of a business relationship, and/or the consummation of a transaction between the parties (collectively, the “Business Purposes”), Disclosing Party’s confidential proprietary information has and will
become available or disclosed to the other party (“Receiving Party”); and 
 WHEREAS, Disclosing Party desires to prevent the
unauthorized use and disclosure of its confidential proprietary information; 
 NOW, THEREFORE, in consideration of the mutual covenants set
forth herein, and for other good and valuable consideration, the receipt, adequacy and sufficiency of which is hereby acknowledged, the parties agree as follows: 

1. CONFIDENTIAL INFORMATION. Confidential Information shall mean information identified on all strategic and development plans,
financial information, business plans, co-developer identities, business relationships, data, business records, customer lists, project records, market reports, employee lists, business manuals, policies, procedures, information relating to
processes and techniques, technology, research, development, trade secrets, know-how, discoveries, ideas, concepts, specifications, equipment, systems, diagrams, inventions, technical and statistical data, designs, drawings, models, flow charts,
manufacture, purchasing, accounting, engineering, products, marketing, merchandising, pricing, selling, distribution, invention disclosures, patents, patent applications, chemical and molecular structures, synthetic pathways, biological data, safety
data, clinical data, developmental data, development route, manufacturing processes, synthetic techniques, analytical data, and any and all other information which may be disclosed, whether or not in writing, marked as “Confidential” or
“Proprietary” by the Disclosing Party or to which the Receiving Party may be provided access to by Disclosing Party in accordance with this Agreement, or which is generated or learned as a result of or in connection with the Business
Purposes, and is not generally available to the public. 
 2. NON-DISCLOSURE OBLIGATIONS. Receiving Party acknowledges that
Confidential Information will be disclosed to it by Disclosing Party and that such Confidential Information, and any information related thereto disclosed before, during, or after the Business Purposes, is confidential, proprietary, substantial and
valuable to Disclosing Party, and that the unlawful use or disclosure of such Confidential Information will cause irreparable damage and financial loss to Disclosing Party. Receiving Party promises and agrees to receive and use reasonable efforts to
hold Confidential Information in confidence. Without limiting the generality of the foregoing, Receiving Party further promises and agrees: (a) to protect and safeguard the Confidential Information against unauthorized use, publication or
disclosure; (b) not to use any of the Confidential Information except for the Business Purposes; (c) not to, directly or indirectly, in any way, reveal, report, publish, disclose, transfer or otherwise use any of the Confidential
Information except as specifically authorized in writing by Disclosing Party in accordance with this Agreement or the Business Purposes; (d) not to use any Confidential Information to unfairly compete or obtain an unfair advantage vis-a-vis
Disclosing Party in any commercial activity which may be comparable to the commercial activity contemplated by the parties in connection with the Business Purposes; (e) to restrict access to the Confidential Information to those who clearly
need such access to carry out the Business Purposes after an agreement is signed signifying their assent to comply with the provisions of this Agreement; (f) to advise each of the persons to whom it provides access to any of the Confidential
Information that such persons are strictly prohibited from making any use, publishing or otherwise disclosing to others, or permitting others to use for their benefit or to the detriment of Disclosing Party, any of the Confidential Information, and
upon request of Disclosing Party, to provide Disclosing Party with a copy of written agreement to that effect signed by such persons; and (g) to comply with any other reasonable security measures requested in writing by Disclosing Party. 

  
 Page 3 of 3 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 3. EXCEPTIONS. Confidentiality obligations hereunder shall not apply to any
Confidential Information which: (a) is or later becomes generally available to the public without breach of any express or implied obligation of confidentiality by the Receiving Party; (b) written evidence shows Confidential Information is
in the possession of Receiving Party with the full right to disclose prior to its receipt from Disclosing Party; (c) is later acquired by the Receiving Party from a third party without any restriction on disclosure or breach of an express or
implied obligation of confidentiality; (d) Receiving Party can document in writing that Receiving Party independently created such information without reference or use of Confidential Information; or (e) is ordered to be disclosed pursuant
to a court order or governmental agency order which has competent jurisdiction over the parties; provided, however, that Disclosing Party is first given notice and a reasonable opportunity to object to such disclosure or seek a protective order.

 4. RETURN OF CONFIDENTIAL INFORMATION. Receiving Party agrees, upon termination of the Business Purposes or upon the
written request of Disclosing Party, whichever is earlier, to promptly deliver to Disclosing Party all originals, copies, records, notes, memoranda or similar repositories of information and any other written, printed, or tangible materials in the
possession of Receiving Party, embodying, pertaining to or referencing the Confidential Information and to destroy and make permanently irretrievable any and all electronic, optical or digital copies, including back-up and archive copies, in the
possession of Receiving Party, embodying, pertaining to or referencing the Confidential Information, with the exception that the Receiving Party can retain one copy of all Confidential Information for legal purposes, and to have an officer of
Receiving Party certify in writing that Receiving Party has complied with this Section 4. 
 5. NO RIGHT TO CONFIDENTIAL
INFORMATION. Receiving Party hereby agrees and acknowledges that no license, either express or implied, is herein granted to the Receiving Party by Disclosing Party to use any of the Confidential Information except as authorized hereunder.
Receiving Party further agrees that all copyrightable works and designs, relating to methods, compositions, or products of Disclosing Party directly or indirectly resulting from or relating to the Confidential Information or Business Purposes and
the right to market, use, license and franchise Confidential Information or the ideas, concepts, methods or practices embodied therein shall be the exclusive property of Disclosing Party, and Receiving Party has no right or title thereto and hereby
assigns its entire right, title and interest in, to and under the foregoing to Disclosing Party. 
 6. REMEDIES. Receiving
Party understands and acknowledges that the actual or threatened disclosure or misappropriation, of any of the Confidential Information in violation of this Agreement may cause Disclosing Party irreparable harm, the amount of which may be difficult
to ascertain and, therefore, agrees that Disclosing Party shall have the right to apply to a court of competent jurisdiction for an order restraining any such further disclosure or misappropriation and for other such relief as Disclosing Party may
deem appropriate. Such right of Disclosing Party shall be in addition to remedies otherwise available to the Disclosing Party at law or in equity, including reasonable attorneys’ fees incurred in enforcing the provisions of this Agreement. 

7. OBLIGATION TO NEGOTIATE. Nothing in this Agreement requires either party to enter into any other agreement, and unless and
until a complete and definitive agreement is negotiated, agreed, executed and delivered by the parties, neither party will be under any legal obligation of any kind whatsoever with respect to the Business Purposes being explored by the parties,
except for the matters specifically agreed to in this Agreement. 
 8. TERM AND TERMINATION. This Agreement shall commence on
the date first written above. Receiving Party’s right to use the Confidential Information in connection with the Business Purposes shall continue in effect until the 26th day of November, 2011, or until Disclosing Party provides Receiving Party
with written notice of termination of such right, whichever is earlier. Notwithstanding the foregoing, Receiving Party’s obligation with respect to the Confidential Information hereunder shall continue in full force and effect for [*] years
from the date of last disclosure or termination of this Agreement, which ever is later. 
 10. GENERAL PROVISIONS: 

10.1 Successors and Assigns. Receiving Party shall have no right to assign its rights under this Agreement, whether expressly or by
merger, acquisition or by operation of law, without the written consent of Disclosing Party. This Agreement and Receiving Party’s obligations hereunder shall be binding on representatives, permitted assigns, and successors of Receiving Party
and shall inure to the benefit of the representatives, assigns and successors of Disclosing Party. 

  
  

					
	 Initials:    JBF    
		A-2.		

 10.2 Governing Law. This Agreement shall be construed and enforced in accordance with the
procedural and substantive laws of the State of New York, without regard to its conflicts of laws provisions. 
 10.3 Severability,
Reform and Waiver. If any provision of this Agreement is determined to be void, invalid or unenforceable, the remainder shall be unaffected and shall be enforceable as if the void, invalid or unenforceable part was not a provision of the
Agreement. No waiver by any party of any breach of any provision hereof shall constitute a waiver of any other breach of that or any other provision hereof. 

10.4 Notice. Any notice or communication required or permitted to be given hereunder may be delivered by hand, deposited with an
overnight courier, sent by confirmed email, confirmed facsimile, or mailed by registered or certified mail, return receipt requested, postage prepaid, in each case to the address of the receiving party as listed above or at such other address as may
hereafter be furnished in writing by either party to the other party. Such notice will be deemed to have been given as of the date it is hand delivered, emailed, faxed or three (3) day after deposit in the U.S. Mails. 

10.5 Entire Agreement. This Agreement supersedes and replaces all former agreements or understandings, oral or written, between the
parties regarding the subject matter hereof. This Agreement may not be modified except by a writing signed both by parties. 
 10.6
Effect of Headings. Headings to sections and paragraphs of this Agreement are for reference only, and do not form a part of this Agreement, or effect the interpretation of this Agreement. 

10.7 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but together shall
constitute one and the same agreement. Facsimile signatures shall be considered original signatures. 
 IN WITNESS WHEREOF, the parties have
entered into this Agreement as of the date written above. 
  

					
	 KEMPHARM, INC.
				Johnson Matthey, Inc.
			
	 /s/ Travis
Mickle                                        
              12/16/08
				 /s/ John B. Fowler,
IV                                         
                   12/18/08

	Travis Mickle, President,
CEO                                     Date				Travis Mickle, President,
CEO                                         
             Date
			
					 John B. Fowler, IV

					Print Name and Title

  
  

					
	 Initials:    JBF    
		A-3.EX-10.10

 [*] = Certain confidential information contained in this document, marked by brackets, is filed with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 EXHIBIT 10.10

 AGREEMENT TO TERMINATE CLA 

BETWEEN 

MONOSOL RX, LLC 

AND 

KEMPHARM, INC. 

DATED AS OF MARCH 20, 2012 

 Agreement to Terminate CLA 

Between 

MONOSOL, RX and KemPharm, 

This Agreement to Terminate CLA (“Agreement”), dated as of March 20, 2012 (the “Effective Date”), is
between KemPharm, Inc., an Iowa corporation with its principal offices at 7 Hawkeye Drive, Suite 103, North Liberty, Iowa 52317 (“KemPharm”), and MonoSol Rx, LLC, a Delaware limited liability company with its principal offices at 30
Technology Drive, Warren, New Jersey, 07059 (“MSRx”). 
 RECITALS: 

WHEREAS, KemPharm and MSRx entered into that certain Collaboration and License Agreement dated April 20, 2011 (the
“CLA”); 
 WHEREAS, Shire LLC, a Kentucky limited liability company (“Shire”), has
prosecuted, and KemPharm and Travis C. Mickle (“Mickle”) have defended, an action in the United States District Court for the Western District of Virginia Roanoke Division (the “Court”) captioned Shire LLC v.
Travis C. Mickle Ph.D. et. al., No. 7:10-cv-00434 (SGW) (PMS) (W.D. Va.) (the “Shire Litigation”); 

WHEREAS, KemPharm, Mickle and Shire have entered into a binding letter of intent dated as of February 9, 2010 (the
“Shire LOI”), wherein Shire and KemPharm agree, among other things, that (a) Shire and KemPharm shall enter into a joint stipulation of dismissal, dismissing with prejudice all claims and counterclaims relating to the Shire
Litigation, and (b) Shire shall acquire for the monetary and nonmonetary consideration set forth in the Shire LOI the assets specifically identified in section 1 of Exhibit A of the Shire LOI, including, without limitation, KP106 and
KemPharm’s other amphetamine amino acid conjugate products, all inventory of such conjugate products, and all of KemPharm’s intellectual property related to such conjugate products; and 

WHEREAS, the obligations of Shire and KemPharm to consummate the transactions set forth in the Shire LOI are subject to the
condition that, within sixty (60) days following the date of the Shire LOI, MSRx executes the Release and Consent in the form attached hereto as Exhibit A (the “Shire Release”); 

WHEREAS, MSRx is willing to execute the Shire Release in accordance with and subject to the terms and conditions set forth in
this Agreement; and 
 WHEREAS, KemPharm and MSRx desire to terminate the CLA in accordance with the terms and conditions set
forth in this Agreement; 
 NOW, THEREFORE, in consideration of the covenants, terms and conditions set forth
in this Agreement, the receipt and sufficiency of which the Parties hereby acknowledge, MSRx and KemPharm agree as follows: 

  
 1. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 ARTICLE 1 

Definitions 
 As used herein, the following
terms shall have the following meanings: 
 1.1 “Affiliate” of a Party hereto means any entity which controls, is
controlled by or is under common control with, such Party. For purposes of this definition, a Party shall be deemed to control another entity if it owns or controls, directly or indirectly, at least fifty percent (50%) of the voting equity of
another entity (or other comparable ownership interest for an entity other than a corporation) or if it has management control of the other entity. Any reference in this Agreement to a Party shall include the Affiliates of that Party (unless the
context requires otherwise). 
 1.2 “Agent” has the meaning provided in Section 5.1. 

1.3 “Agreement” means this Agreement to Terminate CLA. 

1.4 “Arising Product” means one or more pharmaceutical products in any dosage form for any indication relating to
KP415 including products based upon, incorporating or manufactured from any IP or technology included in or stemming from KP415. 
 1.5
“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to close. 

1.6 “Change of Control” means the occurrence after the Effective Date, in one or a series of transactions, of any of
the following: (i) any person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”)), acting alone or in concert with others, assumes or
otherwise gains, directly or indirectly, beneficial ownership (as defined in Rule 13d-3 of the Exchange Act) of securities representing 50% or more of the combined voting power of the then outstanding securities of KemPharm and/or its Affiliates or
its or their successors; (ii) any merger, consolidation, security exchange, division, or sale or other disposition of all or substantially all of the assets of KemPharm and/or its Affiliates or its or their successors or any other transaction
in which KemPharm and/or its Affiliates or its or their successors become the subsidiary of another company which is consummated or approved by the equity holders of KemPharm and/or its Affiliates or its or their successors; and (iii) any
approval by the equity holders of KemPharm and/or its Affiliates or its or their successors of a plan of liquidation. Notwithstanding the forgoing, a Change of Control shall not include a spin-off by KemPharm of assets including, without limitation,
its rights and interests in KP415, to a wholly-owned subsidiary of KemPharm or the distribution of securities of such subsidiary to KemPharm’s securities holders in accordance with section 355 of the Internal Revenue Code of 1986, as amended,
so long as each of the following conditions are met: (i) such subsidiary agrees in a writing in a form reasonably acceptable to [*] to assume all of the obligations, representations, warranties and covenants of KemPharm under this Agreement
upon the consummation of such transaction and (ii) no value (including, without limitation, any cash, securities or other property) is received by any of KemPharm, such subsidiary being spun-off or other Affiliate or any of its or their
security holders other than the securities of such subsidiary in such spin-off which are being issued in such spin-off (a “355 Spin-Off Transaction”). 

  
 2. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 1.7 “CLA” has the meaning set forth in the Recitals to this Agreement;

 1.8 “Claims” means any and all causes of action, charges, complaints, actions, suits, proceedings, hearings,
investigations, allegations, demands and claims of any kind. 
 1.9 “Commercialize” or
“Commercialization” means the marketing, promoting, distributing, offering for sale and selling, licensing, or otherwise realizing Value from or in connection with an Arising Product(s), and conducting clinical studies after
Approval, if necessary and required. When used as a verb, Commercialize means to engage in Commercialization. 
 1.10
“Confidential Information” means or includes any and all Proprietary Information exchanged between the Parties or their representatives prior to the Effective Date under the provisions of the CLA or in contemplation of the
transactions contemplated thereby or on or subsequent to the Effective Date under the provisions of this Agreement or in contemplation of the transactions contemplated hereby. 

1.11 “Direct Claim” has the meaning provided in Section 8.3(F). 

1.12 “Disclosing Party” has the meaning provided in Section 5.1. 

1.13 “Effective Date” has the meaning set forth in the Preamble to this Agreement. 

1.14 “Indemnitee” has the meaning provided in Section 8.2. 

1.15 “Indemnitor” has the meaning provided in Section 8.2. 

1.16 “Intellectual Property” or simply “IP” means or includes Patent Rights, Know-How, copyrights,
trademarks, mask works, data, other forms of intellectual property, Confidential Information and Proprietary Information. 
 1.17
“KemPharm” has the meaning set forth in the preamble to this Agreement. 
 1.18 “KemPharm Sale
Price” means the aggregate consideration and/or other Value actually received at any time in a KemPharm Sale Transaction from the acquiring Third Party(ies) by KemPharm and its Affiliates, and/or their respective equity holders (including,
without limitation, the aggregate of any and all amounts received for any options, warrants or convertible securities, dividends, distributions, deferred, contingent, earn-outs, restrictive covenants, license (including under sublicenses),
milestone, and Royalties payments, engagement fees and all other payments similar to any of the foregoing). 
 1.19 “KemPharm
Sale Transaction” means a bona fide transaction (or a series of related bona fide transactions) between one or more Third Parties and KemPharm and/or its Affiliates, and/or their respective equity holders, pursuant to which there occurs a
Change of Control, which transaction(s) includes KemPharm’s rights and interests in KP415. Notwithstanding the forgoing, a KemPharm Sale Transaction shall not include a 355 Spin-off Transaction by KemPharm. 

  
 3. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 1.20 “Know-How” means any unpatented technical information, know-how,
show how and materials including, without limitation, all biological, chemical, pharmacological, toxicological, clinical, assay and other information, data, discoveries, inventions, improvements, processes, formula and trade secrets, patentable or
otherwise. 
 1.21 “KP415” means (i) the molecule(s) involved in the covalent conjugation of methylphenidate
(or methylpheny(piperidin-2-yl) acetate) currently referred to as KP415, and any and all [*] thereof, and (ii) any and all other [*], and any and all [*] thereof. KP415 is not restricted to indication, dosage, use or territory, all of which are
covered under this definition. 
 1.22 “Losses” means any and all damages (including all incidental, consequential,
statutory and treble damages), awards, deficiencies, settlement amounts, defaults, assessments, fines, dues, penalties, costs, fees, liabilities, obligations, taxes, liens, losses, lost profits and expenses (including, without limitation, court
costs, interest and reasonable fees of attorneys, accountants and other experts) incurred by or awarded to Third Parties and required to be paid to Third Parties with respect to a Claim by reason of any judgment, order, decree, stipulation or
injunction, or any settlement entered into in accordance with the provisions of this Agreement, together with all documented out-of-pocket costs and expenses incurred in complying with any judgments, orders, decrees, stipulations and injunctions
that arise from or relate to a Claim of a Third Party. 
 1.23 “Material Changes to the Shire LOI” means, with
respect to any of the Shire Definitive Settlement Documents, any term or condition which either (a) modifies, limits or affects, in any manner, the monetary benefits required to be provided by Shire under the Shire LOI or any other rights of
MSRx under the Shire LOI and/or this Agreement, (b) creates a risk of a potential Claim by Shire or any of its Affiliates against MSRx or any of its Affiliates or successors or assigns, or any of its or their respective officers, directors,
managers, members, shareholders, employees, agents and representatives (collectively, the “MSRx Parties”) or increases a material risk of such a potential Claim against any of the MSRx Parties in a manner that is not
contemplated in the Shire LOI, or (c) in any way conveys, grants, or otherwise effects any of MSRx’s rights or interests in or to MSRx’s Intellectual Property. 

1.24 “Mickle” has the meaning set forth in the Recitals to this Agreement. 

1.25 “MSRx” has the meaning set forth in the preamble to this Agreement. 

1.26 “Net Revenues” means the amount of money, net of any sums paid to MSRx pursuant to any supply or manufacturing
agreement or otherwise for the manufacture of KP415, which either Party or both Parties earn or receive at any time from the Commercialization of KP415 or otherwise from the exploitation of any licenses granted for the development and/or
commercialization of KP415 (including, without limitation, monies which continue to be earned under such licenses after the expiration or termination of this Agreement and whether or not fully developed or Commercialized and all payments for upfront
license payments, milestone events, Royalties, engagement fees and similar payments under sublicenses), less any applicable value added tax, sales tax or withholding tax or other deduction required by applicable law. 

  
 4. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 1.27 “Party” means either KemPharm or MSRx, and
“Parties” means both KemPharm and MSRx. 
 1.28 “Patent Rights” means all existing patents and
patent applications and all patent applications hereafter filed, including any continuations, continuations-in-part, divisions, or any substitute applications, any patent issued with respect to any such patent applications, any reissue,
re-examination, renewal or extension (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent, and all foreign counterparts of any of
the foregoing, or as applicable portions thereof or individual claims therein. 
 1.29 “Program Sale Transaction”
means a transaction (or a series of transactions), other than a Third Party License or KemPharm Sale Transaction, pursuant to which one or more Third Parties purchases and/or acquires (alone or with other assets, rights or interests) KemPharm’s
and MSRx’s respective rights and interests in and to KP415 or other transaction (or a series of transactions) at any time involving the monetization (including, without limitation, the issuance of any securities) of KP415 whether or not at the
time of any such transaction or monetization event KP415 is fully developed or Commercialized. A KemPharm Sale Transaction does not constitute a “Program Sale Transaction.” Notwithstanding the forgoing, a Program Sale Transaction shall not
include a 355 Spin-off Transaction by KemPharm. 
 1.30 “Proprietary Information” means or includes information or
data owned or licensed by a Party that such Party treats as proprietary and confidential including, but not limited to, data, documents, trade secrets, methods, processes, techniques, and scientific and business information. 

1.31 “Receiving Party” has the meaning provided in Section 5.1. 

1.32 “Royalty” means monies or other consideration paid by either Party to the other Party or to either or both of the
Parties by a Third Party Licensee on sales of KP415 and/or Arising Products in any country of the world. 
 1.33
“Shire” has the meaning set forth in the Recitals to this Agreement. 
 1.34 “Shire Closing”
means the closing of the transactions contemplated under the Shire LOI in accordance with the terms of the Shire LOI or, if elected by KemPharm in accordance with Section 2.2, in accordance with the Shire Definitive Settlement Documents. 

1.35 “Shire Definitive Settlement Documents” means any settlement agreement and/or asset purchase agreement or other
documents entered into by and between KemPharm and Shire which contain the terms and conditions set forth in the Shire LOI and such other and additional terms and conditions of the transaction contemplated in the Shire LOI. 

1.36 “Shire Litigation” has the meaning set forth in the Recitals to this Agreement. 

  
 5. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 1.37 “Shire LOI” has the meaning set forth in the Recitals to this
Agreement. 
 1.38 “Shire Release” has the meaning set forth in the Recitals to this Agreement. 

1.39 “Shire Payment” has the meaning set forth in Section 2.3 below. 

1.40 “Third Party” means any person or entity other than either Party or its Affiliates. 

1.41 “Third Party Claim” has the meaning provided in Section 8.2. 

1.42 “Third Party License” means a license by either or both of the Parties to a Third Party granting development,
Commercialization and/or other exploitation rights with respect to KP415 or any Arising Product. 
 1.43 “Third Party
Licensee” means a Third Party which is granted development, Commercialization and/or other exploitation rights under a Third Party License, including the Third Party’s sublicensees, if any. 

1.44 “Value” means value which is associated with KP415 and/or any Arising Product received by either or both Parties
(excluding sums paid to MSRx pursuant to any supply or manufacturing agreement or otherwise for the manufacture of KP415 and/or any Arising Product), including, by way of illustration, without limitation: the purchase price and other net
consideration actually received at any time under a Program Sale Transaction; Net Revenues received by either Party; payments received from a Third Party License (such as, without limitation, upfront license payments, milestone payments, Royalties,
engagement fees, discontinuance or standstill payments and similar payments under sublicenses); that portion of the KemPharm Sale Price attributable to KP415 in accordance with Section 4.2 below; and other transactions involving the
monetization (including, without limitation, the issuance of securities (other than a 355 Spin-Off Transaction), options, warrants or convertible securities, dividends, distributions, and deferred, contingent, earn-outs, and restrictive covenants
payments); whether or not KP415 is fully developed or Commercialized at the time of calculation of such value and covering KP415 in any dosage form for any application or indication anywhere in the world. 

ARTICLE 2 

EXECUTION OF SHIRE RELEASE; CONSUMMATION OF
THE SHIRE LOI 
 2.1 Execution of Shire Release. Simultaneous with the Shire
Closing, and the receipt of payment by MSRx of the amount payable to MSRx in accordance with Section 2.3 below, MSRx shall execute and deliver to KemPharm the Shire Release in the form attached hereto as Exhibit A. 

2.2 Consummation of the Shire LOI. Following the execution of this Agreement, KemPharm shall close upon the transactions
provided in the Shire LOI; provided, however, that KemPhann, in its discretion, may negotiate, execute and close upon Shire Definitive Settlement Documents. In the event KemPharm and Shire agree upon final drafts of Shire Definitive Settlement
Documents, KemPhann shall provide to MSRx a copy of such final drafts at least three (3) Business Days prior to the Shire Closing. In furtherance of the Shire Closing, MSRx shall deliver to KemPharm or directly to Shire within three
(3) Business Days after the date of the Shire Closing the complete inventory in MSRx’s possession of any KP106 active pharmaceutical ingredient as of such date and a certificate signed by MSRx acknowledging that any KP106 manufactured in
any dosage form in MSRx’s possession as of such date has been destroyed. 

  
 6. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 2.3 Shire Payment. Upon the Shire Closing, out of the single one-time payment of
$22,000,000 (the “Shire Payment”) to be paid by Shire thereunder, KemPharm shall arrange for $[*] of the $22,000,000 to be paid directly by Shire via bank transfer to MSRx consistent with wiring instructions given by MSRx to KemPharm. Such
payment of $[*] to MSRx shall be inclusive of any portion of the $22,000,000 Shire Payment which MSRx is due under the CLA for a “Program Sale Transaction” (as defined under the CLA). MSRx shall have no right or Claim under this Agreement
or the CLA to any portion of the aforementioned $22,000,000 Shire Payment except for the aforementioned $[*] sum. 
 2.4
MSRx’s Revocation Rights. In the event that KemPharm negotiates final drafts of Shire Settlement Documents, then KemPharm shall provide a copy of such final drafts in accordance with Section 2.2 hereof. If the Shire
Settlement Documents include any Material Changes to the Shire LOI, then MSRx shall have the following right to revoke this Agreement: by no later than 5:00 P.M. E.S.T. on the third (3rd) Business Day following the date on which MSRx receives a
copy of such final signed or unsigned drafts of the Shire Settlement Documents, MSRx may deliver written notice to KemPharm which states that the Shire Definitive Settlement Documents includes Material Changes to the Shire LOI, describes in
reasonable detail the Material Changes to the Shire LOI and declares that MSRx is revoking this Agreement. Such revocation shall be effective immediately upon KemPharm’s receipt of the notice required herein. In addition to the foregoing, MSRx
shall have the right to revoke this Agreement by written notice to KemPhann under either of the following events: (i) KemPharm shall have failed to deliver to MSRx a written notice that the Shire Closing has occurred within thirty
(30) days after the Effective Date, or (ii) MSRx shall not have received its share of the Shire Payment in accordance with Section 2.3 above or the Shire Release executed by Shire. In the event that MSRx revokes this Agreement
in accordance with this Section 2.4, then each of the following shall terminate effective simultaneous with such revocation: (i) MSRx’s right to receive the payment provided under Section 2.3, (ii) the termination of
the CLA pursuant to Article 3 (and the CLA shall be reinstated automatically thereon in full force and effect and all of the rights and obligations of the Parties under the CLA shall continue and survive); and (iii) MSRx’s rights
and interest in KP415 under Article 4. 
 ARTICLE 3 

TERMINATION OF THE CLA 

3.1 Termination of the CLA. Subject to the terms and conditions of this Agreement, including, without limitation, the revocation
rights of MSRx under Section 2.4, the CLA shall terminate upon the Shire Closing and payment to MSRx of the amount due under Section 2.3 above. Upon termination of the CLA pursuant to this Section 3.1, no rights
or obligations of either Party under the CLA shall survive the termination. The Parties acknowledge and agree that, following the assignment to Shire of the “Acquired Assets” (as defined under the Shire LOI), there are no remaining
“Arising Technology,” “Arising Patents” or “Arising IP” as those terms are defined in the CLA. Except as otherwise provided in Section 2.2 with respect to inventory and manufactured KP106, following the
termination of the CLA, each Party shall promptly transfer to the other Party, at the other Party’s cost, or destroy at the other Party’s written request, all relevant records and materials in its possession or control containing
Confidential Information of 

  
 7. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
the other Party; provided, however, that each Party may keep one archival copy of the Confidential Information of the other Party in the legal department files of such Party or its legal
representative in accordance with the provisions of Article 5 below. Subject to the terms and conditions of this Agreement, including, without limitation, the revocation rights of MSRx under Section 2.4, each Party hereby forever releases and
discharges the other Party and each of the other Party’s officers, directors, shareholders, members, managers, employees and agents from any and all Claims, known or suspected by the releasing Party as of the date of Shire Closing, at law or in
equity, arising from or related to the CLA. Nothing in this Section 3.1 shall limit, impair or affect any of the rights of the Parties under this Agreement and no Party shall be deemed to release, waive or discharge any of its rights or
remedies under this Agreement or at law or in equity with respect to the transactions contemplated under this Agreement. 
 ARTICLE 4

 GRANT OF INTEREST IN KP415 

4.1 Division of Value Generally. Subject to the terms and conditions set forth in this Agreement, the Parties acknowledge and
agree that MSRx shall have the right to receive an amount equal to [*] of any and all Value. Upon the occurrence of a Program Sale Transaction or KemPharm Sale Transaction, the Value to be paid to MSRx (or the amount to be deposited in escrow in
accordance with Section 4.2, as the case may be) shall be paid to MSRx (or the escrow agent, as the case may be) directly out of the closing proceeds and any other consideration (and post-closing proceeds and/or other consideration, if
any) of such Program Sale Transaction or KemPharm Sale Transaction simultaneously with and when each payment by such Third Party is made to KemPharm or any of its Affiliates, and/or any of their respective equity holders, of any and all such
proceeds or the delivery of other consideration therefore whenever made. KemPharm shall arrange in the agreement for a Program Sale Transaction or KemPharm Sale Transaction that payment of such Value to MSRx (or the amount to be deposited in escrow
pursuant to Section 4.2, as the case may be) shall be made by wire transfer of immediately available funds to an account designated by MSRx (or to the escrow agent, as the case may be), and the delivery of such other consideration
representing any such Value (or the amount to be deposited in escrow pursuant to Section 4.2, as the case may be) shall be made to the address of MSRx set forth in this Agreement or as otherwise designated by MSRx (or to the escrow
agent, as the case may be). In the event that MSRx is properly paid in full all of its share under this Agreement of the Value of a Program Sale Transaction or KemPharm Sale Price directly by the Third Party purchaser in such Program Sale
Transaction or KemPharm Sale Transaction out of the proceeds thereof in accordance with this Article 4, MSRx shall have no right to make a Claim against KemPharm for KemPharm’s share of the Value received from such Third Party purchaser
out of the proceeds of such Program Sale Transaction or KemPharm Sale Transaction, as the case may be. 
 4.2 KemPharm Sale
Transaction. If KemPharm or an Affiliate holding rights, title or interests in or to KP415 enters into a KemPharm Sale Transaction, then such transaction shall include MSRx’s rights and interests in and to KP415; provided that MSRx shall be
paid its share of the Value of the KemPharm Sale Price. The KemPharm Sale Price shall constitute Value to the extent that the KemPharm Sale Price is attributable, in whole or in part, to any of KemPharm’s or an Affiliate’s rights, title or
interests in or to KP415. Upon proper payment of such Value to MSRx in connection with a KemPharm Sale Transaction, MSRx’s rights and interests in and to KP415 shall be terminated unless after the consummation of such KemPharm Sale Transaction
KemPharm or 

  
 8. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
any of its Affiliates, and/or any of their respective equity holders, retains directly or indirectly any rights, title or interests in and to KP415, in which event such rights and interests of
MSRx shall continue and survive the consummation of such KemPharm Sale Transaction and MSRx shall be paid its share of the Value of the KemPharm Sale Price with respect to such KemPharm Sale Transaction. The interests of MSRx which shall survive
pursuant to the foregoing sentence shall be limited to the extent of the remaining interest in KemPharm and its Affiliates held by their respective equity holders, including future Value payments made to such equity holders and Value received by
such equity holders in any subsequent transactions including, without limitation, any Program Sale Transactions and any KemPharm Sale Transactions. KemPharm or the Affiliate who is a party to the KemPharm Sale Transaction shall provide to MSRx
written notice of its intent to enter into a KemPharm Sale Transaction, which notice shall specify the consideration and purchase price to be paid to KemPharm, its Affiliates and/or their respective equity holders in such KemPharm Sale Transaction.
Such notice shall be delivered to MSRx as soon as reasonably practicable, but in no event later than five (5) Business Days after the execution of any agreement contemplating such KemPharm Sale Transaction and no later than ninety
(90) days prior to the consummation of such KemPharm Sale Transaction. If the Parties cannot agree on the determination of the Value contained within a KemPharm Sale Price within ten (10) days of such notice by KemPharm to MSRx, then such
Value shall be determined by an independent valuation expert selected by mutual written agreement of the Parties. In the event that the Parties are unable to mutually agree upon the selection of an independent valuation expert within five
(5) Business Days of the expiration of such ten-day period, then such Value shall be determined in accordance with the following procedures: Each of the Parties shall select its own independent valuation expert and pay all costs associated with
its own valuation expert. The two independent valuation experts shall prepare a written determination of such Value within three (3) months of selection. If the determination of the two valuation experts vary by [*] or less, the Parties shall
accept as final and binding the average of the determination by the two independent valuation experts as the Value attributed in such KemPharm Sale Transaction. If the results of the foregoing two determinations vary by more than [*], then the two
valuation experts shall select a third independent valuation expert to prepare its own valuation of the Value attributed to such KemPharm Sale Transaction. The third valuation expert will, at a minimum, evaluate the valuations of the first two
valuation experts and conduct its own analyses as necessary to support its own valuation. The three independent valuation experts shall agree to comply with this schedule of performance before accepting appointment. The Parties shall accept as final
and binding the average of the determinations by the three independent valuation experts as the Value attributed in such KemPharm Sale Transaction. The Parties agree that each independent valuation expert engaged for the purposes of determining
Value pursuant to this Section 4.2 shall be at least a partner or director of a nationally recognized appraisal firm, which may be an investment banking firm, a certified public accounting firm, or any other firm that performs appraisal
and valuation services in the pharmaceutical industry. The Parties agree that any and all costs associated with the first (and, if applicable, the third) valuation expert and its valuation determination shall be paid equally by MSRx and KemPharm.
The Parties also agree that the Value shall be equal to a percentage of the KemPharm Sale Price, which percentage shall be proportionate to the value of KemPharm’s and/or its Affiliate’s rights, title or interests in KP415 expressed as a
percentage of the aggregate value of the overall portfolio of tangible and intangible assets as a going concern that are included within the KemPharm Sale Transaction. For the sake of clarity, each individual asset of KemPharm or its Affiliates
included within the 

  
 9. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 KemPharm Sale Transaction, including KP415, shall be assigned a percentage that represents each individual
asset’s relative contribution to the KemPharm Sale Price, such that the Value in question to be shared by the Parties shall be clearly defined and distinct from all other assets solely owned by KemPharm and/or its Affiliates. The Parties also
agree that any valuation shall be conducted in accordance with the terms set forth generally in Exhibit B. The Parties agree that, in the event that such valuation determination is not made prior to the scheduled closing of the KemPharm Sale
Transaction despite the Parties acting in good faith and with reasonable diligence to obtain such valuation determination in accordance with this Section 4.2, KemPharm shall have the right to close the KemPharm Sale Transaction on or
after the schedule closing date; provided, however, that [*] of the KemPharm Sale Price shall be deposited into an escrow account out of the proceeds or other consideration paid under the KemPharm Sale Transaction and released upon completion of the
determination of Value in accordance with this Section 4.2. The agent of the aforementioned escrow account shall be mutually agreed upon in writing by the Parties, who shall be instructed to distribute the escrowed proceeds and
consideration upon completion of the Value determination in such proportions as shall correctly pay MSRx its share of the Value of the KemPharm Sale Price, and the remaining balance shall be paid to KemPharm (or to its Affiliates as instructed by
KemPharm). In the event that the share of the Value upon completion of the Value determination exceeds the amount held in such escrow, KemPharm or its Affiliates shall pay to MSRx within five (5) days of such determination the difference
between the share of the Value determined in accordance with this Section 4.2 and the amount in escrow. 
 4.3
Limitation on MSRx’s Rights to KP415. Except as otherwise expressly provided in this Article 4, MSRx shall have no rights or interest in or to KP415. Further, KemPharm shall have no obligations to MSRx to take any actions to develop
or Commercialize KP415. Moreover, MSRx acknowledges the option to purchase KP415 which is granted to Shire under the Shire LOI, which, if such option is exercised by Shire under the Shire LOI, shall be deemed to be a Program Sale Transaction and
MSRx shall be entitled to its share of Value with respect thereto under Section 4.1. 
 ARTICLE 5 

CONFIDENTIAL INFORMATION 

5.1 Confidential Information. Each of the Parties (“Receiving Party”) shall keep all Confidential Information
received from the other Party (“Disclosing Party”) with the same degree of care it maintains the confidentiality of its own Confidential Information, which in no event shall be less than a reasonable degree of care. The Receiving
Party shall not use such Confidential Information for any purpose other than in performance of this Agreement or disclose the same to any other Third Party other than to such of its employees, directors, officers, representatives, consultants, and
agents (collectively, an “Agent”) who have a need to know such Confidential Information to implement the terms of this Agreement or enforce its rights under this Agreement, or to a Third Party Licensee. A Receiving Party shall
advise any Agent or Third Party Licensee who receives such Confidential Information of the confidential nature thereof and of the obligations contained in this Agreement relating thereto. Upon termination of this Agreement, the Receiving Party shall
use Commercially Reasonable Efforts to return or destroy all documents, tapes or other media containing Confidential Information of the Disclosing Party that remain in the Receiving Party’s or its Agents’ possession, except that the
Receiving Party may keep one (1) archival copy of the Confidential Information in the legal department files of 

  
 10. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
the Receiving Party or its outside counsel. Such archival copy shall be deemed to be the property of the Disclosing Party, and shall continue to be subject to the provisions of this
Section 5.1. The above restrictions set forth in this Section 5.1 on the use and disclosure of Confidential Information shall not apply to any information which (a) is already known to the Receiving Party at the time of
disclosure by the Disclosing Party, as demonstrated by competent proof (other than as a result of prior disclosure under any agreement between the Parties with respect to confidentiality), (b) is or becomes generally available to the public
other than through any act or omission of the Receiving Party in breach of this Agreement, (c) is acquired by the Receiving Party from a Third Party who is not directly or indirectly under an obligation of confidentiality to the Disclosing
Party with respect to same, or (d) is developed independently by the Receiving Party without use, direct or indirect, of Confidential Information. In addition, nothing in this Article 5 shall be interpreted to limit the ability of either Party
to disclose its own Confidential Information to any other Person on such terms and subject to such conditions as it deems advisable or appropriate. 

A specific item of Confidential Information shall not be covered or deemed to be covered by the foregoing exclusions merely because a general
category of information containing such specific item is within the scope of such exclusions. Notwithstanding anything in this Agreement to the contrary, in the event the Receiving Party becomes, or anticipates that it may become, legally compelled
to disclose any of the Confidential Information, the Receiving Party will provide the Disclosing Party with prompt notice so that the Disclosing Party may seek a protective order or other appropriate remedy or waive compliance with the provisions of
this Agreement. If a full protective order or other appropriate remedy is not obtained, the Receiving Party will disclose only that portion of the Confidential Information which it remains legally compelled to disclose, and will exercise its
reasonable efforts to obtain reliable assurance that confidential treatment will be accorded the Confidential Information. 
 If any portion
of the Confidential Information falls into one of the above exceptions, the remainder of the information shall continue to be subject to the requirements of the Agreement. Further, Confidential Information shall not be deemed within the foregoing
exceptions if such Confidential Information: (i) is specific and merely embraced by more general information in the public domain or in the receiving party’s possession; or (ii) is a combination which might be pieced together so as to
reconstruct such Confidential Information from multiple sources, none of which show the whole combination, the principles of operation and/or method of use. 

5.2 Permitted Disclosure and Use. Notwithstanding Section 5.1, a Party may use and disclose Confidential Information
belonging to the other Party only to the extent such use and/or disclosure is reasonably necessary to perform its obligations under this Agreement or comply with applicable laws or the regulations of any government authority or any security exchange
on which its shares or those of any group company are, or in the process of being, listed. If a Party deems it necessary to disclose Confidential Information of the other Party pursuant to this Section 5.2, such Party shall where lawful
to do so give such reasonable advance notice of such disclosure, to the other Party as it is able to do to permit such other Party to object to such disclosure or to take measures to ensure confidential treatment of Confidential Information that is
being disclosed. 

  
 11. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 5.3 Public Announcements; Press Release. Except as may be expressly permitted under
this Section 5.3 or required by applicable laws or the regulations of any security exchange on which its shares or those of any group company are listed or in the process of being listed, neither Party will make any public announcement
of any information regarding the existence, terms or conditions of this Agreement without the prior written approval of the Parties. Once any written statement is approved for disclosure by the other Party or information is otherwise made public in
accordance with this Section 5.3, either Party may make a subsequent public disclosure of the contents of such statement without further approval of the other Party. Nothing in the foregoing, however, shall prohibit a Party from making
such disclosures as may be necessary or reasonably appropriate in order to comply with applicable law or any rule or regulation of any nationally recognized securities exchange; in such event, however, the Party making the disclosure shall use good
faith efforts to consult with the other Party prior to such disclosure and consider in good faith such other Party’s proposed modifications and, where applicable, shall request confidential treatment to the extent available. 

5.4 Confidentiality of this Agreement. The terms of this Agreement shall be Confidential Information of each Party and, as such,
shall be subject to the provisions of this Article 5. 
 5.5 Confidentiality of Shire LOI. The existence and terms of
the Shire LOI and any Shire Definitive Settlement Documents shall be Confidential Information subject to the provisions of this Article 5. MSRx shall not make any disclosure to the public or any Third Party (other than to its employees, officers,
directors, members, managers, legal counsel and financial advisors) regarding the transactions contemplated by the Shire LOI or any Shire Definitive Settlement Documents or the terms and conditions thereof except to the limited extent that KemPharm
is permitted to do so under the Shire LOI and/or the Shire Definitive Settlement Documents. 
 5.6 Intellectual Property of
MSRx. KemPharm acknowledges and agrees, for itself and its Affiliates, that neither it nor any of its Affiliates shall have any rights, title or interests in, and shall not, and shall not permit others to, misappropriate, use, disclose or
otherwise exploit, any Intellectual Property of MSRx in its or their possession or control, notwithstanding anything to the contrary contained in this Agreement or the Shire LOI (or the Shire Definitive Settlement Documents, if applicable) or the
transactions contemplated hereunder or thereunder, or as a result of the disclosure or delivery to Shire or any of its Affiliates of any data, materials, reports or documents containing any Intellectual Property of MSRx required pursuant to the
Shire LOI (or the Shire Definitive Settlement Documents, if applicable). KemPharm acknowledges and agrees that nothing contained in this Agreement, the Shire LOI (or the Shire Definitive Settlement Documents, if applicable) or the transactions
contemplated hereunder or thereunder shall constitute or be construed as creating an express or implied grant of any rights, title, interests or licenses to KemPharm or Shire or their respective Affiliates of the Intellectual Property of MSRx and
KemPharm hereby agrees to irrevocably waive, and agrees not to assert, any claim that KemPharm or any of its Affiliates has any rights, title or interests in or license to any of MSRx’s Intellectual Property. 

5.7 Equitable Remedies. Each Party specifically recognizes that any breach by it of this Article 5 may cause irreparable
injury to the other Party and that actual damages may be difficult to ascertain and, in any event, may be inadequate. Accordingly (and without limiting the availability of legal or equitable, including injunctive, remedies under any other provisions
of this Agreement), each Party agrees that in the event of any such breach, the other Party shall be entitled to seek injunctive relief and such other legal and equitable remedies as may be available. 

  
 12. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 5.8 Survival. The obligations and prohibitions contained in this Article 5 shall
survive the expiration or termination of this Agreement for a period of [*] years thereafter; provided, however, that Confidential Information which is a trade secret of the Disclosing Party if disclosed in writing or, if disclosed orally and
confirmed within thirty (30) days in writing as being a trade secret of the Disclosing Party, shall be maintained in secret until such time as it no longer qualifies as a trade secret or until such time as Disclosing Party advises Receiving
Party in writing that such information is no longer a trade secret. 
 ARTICLE 6 

REPRESENTATIONS AND WARRANTIES; CERTAIN COVENANTS
OF KEMPHARM 
 KemPharm represents, warrants and covenants to MSRx as of the Effective Date
that: 
 6.1 Existence. KemPharm (a) is a company duly organized, validly existing, and in good standing under the laws of
the State of Iowa; (b) is duly qualified as an entity and in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, where the failure to be so
qualified would have a material adverse effect on its financial condition or its ability to perform its obligations under this Agreement; and (c) has the requisite power and authority to execute, deliver, grant and perform the covenants and
transactions contemplated in this Agreement. 
 6.2 Authority. The execution, delivery and performance of this Agreement by
KemPharm and all instruments and documents to be delivered by KemPharm hereunder (a) have been duly authorized by all necessary or proper action; (b) do not conflict with any provision of the charter documents of KemPharm; (c) will
not violate any applicable law or regulation or any order or decree of any court or governmental authority having jurisdiction over KemPhann where such violation would have a material adverse effect on its ability to perform its obligations under
this Agreement; and (d) will not violate or conflict with any terms of any indenture, mortgage, deed of trust, lease, agreement, or other instrument to which KemPharm is a party, or by which KemPharm or any of its property is bound, which
violation or conflict would have a material adverse effect on its financial condition or on its ability to perform its obligations under this Agreement. 

6.3 Binding Effect. This Agreement has been duly executed and delivered by KemPharm and constitutes a legal, valid and binding
obligation of KemPharm, enforceable against it in accordance with its terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium, and other laws generally applicable to
creditors’ rights; and (b) judicial discretion in the availability of equitable relief. 
 6.4 Existence of Claims.
As of the time of the Agreement, KemPharm has not received notice, whether written or oral, from any Third Party of any, and knows of no facts or circumstances which would lead to any, Claim asserting the invalidity, misuse, unregisterability or
unenforceability of any of its patents, or challenging its right to use or ownership of any of its patent rights or Know-How, or making any adverse Claim of ownership thereof, or asserting that 

  
 13. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
any trade secrets or other intellectual property rights of such Third Party would be misappropriated by KP415, or that any issued patent of such Third Party in the Territory would be infringed by
KP415 or the manufacture, distribution, marketing or sale of the Arising Product(s) in the Territory. 
 6.5 IP Rights. To the
best of its knowledge, KemPharm owns or has licenses to all of its patent rights, Know-How and all other Intellectual Property, Confidential Information, Proprietary Information of any nature whatsoever provided by it to MSRx under this Agreement or
otherwise relating to the development and/or Commercialization of KP415, and it owns or has licenses to such Intellectual Property free and clear of all liens, Claims and encumbrances and free of all royalty or similar payment obligations to any
Third Party, except such liens, Claims, encumbrances and obligations as will not have a material adverse effect on the other Party’s rights under this Agreement. 

6.6 Shire LOI. As of the Effective Date, none of KemPharm or any of KemPharm’s Affiliates, Mickle or any equity holders,
employees, officers, or directors of KemPhann or any of KemPharm’s Affiliates (i) are party to any agreements with Shire or any of Shire’s Affiliates other than the Shire LOI; (ii) are negotiating any agreements with Shire or any
of Shire’s Affiliates other than the Shire Definitive Settlement Documents; or (iii) shall receive at any time for the transfer of the “Acquired Assets” (as defined in the Shire LOI) or the settlement of any Claim between Shire
and any of them any consideration or Value other than KemPharm’s share of the Shire Payment in accordance with Section 2.3 above and the express non-monetary consideration covered under the covenants, terms and conditions set forth
in the Shire LOI (except for reasonable consulting fees payable to Mickle, not in excess of industry standards, for consulting services described in Section 12 of the Shire LOI). If KemPharm or any of KemPharm’s Affiliates, Mickle or any
equity holders, employees, officers, or directors of KemPharm or any of KemPharm’s Affiliates enters into any agreement or similar transaction, directly or indirectly, with Shire or any of Shire’s Affiliates after the Effective Date (other
than the Shire LOI or the Shire Definitive Settlement Documents, if applicable) involving the exchange or issuance of consideration to KemPharm or any of KemPharm’s Affiliates, Mickle or any equity holders, employees, officers, or directors of
KemPhann or any of KemPharm’s Affiliates for any securities, assets, property or rights in any IP of KemPharm or its Affiliates which includes Value which should have been paid to MSRx under the CLA (with the defined term “Value”
having such meaning under the CLA as it relates to KP106) or under this Agreement, MSRx shall be entitled to receive its share of such Value directly from Shire and/or its Affiliates which are a party to such agreement or transaction, and MSRx shall
have such additional rights and remedies under this Agreement and available to MSRx at law or in equity. For the sake of clarity and not in limitation of the generality of the foregoing, if such agreement or transaction relates in any way to KP106,
MSRx shall receive [*] of the aggregate of such Value and, if such agreement or transaction relates in any way to KP415, MSRx shall receive [*] of the aggregate of such Value. The manner of payment of such Value to MSRx under this
Section 6.6 shall be as set forth in Article 4 of this Agreement. In furtherance of the foregoing rights of MSRx, during the [*] period after the Effective Date, KemPhann shall provide to MSRx written notice of its or any of its
Affiliates’ intent to enter into any agreement or transaction, directly or indirectly, with Shire or any of its Affiliates after the Effective Date (other than the Shire LOI and the Shire Definitive Settlement Documents, if applicable) as soon
as practicable but in no event later than five (5) Business Days after the execution of any agreement or letter of intent or similar document and no later than 

  
 14. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
ninety (90) days prior to the consummation of the transactions contemplated thereunder. Such notice shall contain the purchase price and other consideration being paid and the other written
terms and conditions of the agreement or transaction. The agreement contemplating such transaction shall expressly acknowledge the rights of MSRx under this Agreement including, without limitation, the right to receive its share of the Value as set
forth above out of the proceeds or other amounts due to KemPharm under such agreement. 
 6.7 Disclaimer of Warranty. NOTHING
IN THIS AGREEMENT SHALL BE CONSTRUED AS A WARRANTY OR REPRESENTATION BY KEMPHARM (I) REGARDING THE EFFECTIVENESS, VALUE, SAFETY, NON TOXICITY, OR PATENTABILITY OF KP415 AND/OR U.S. PROVISION PATENT APPLICATION NO. [*] OR (II) THAT KP415 WILL BE
APPROVED OR OTHERWISE DEVELOPED OR COMMERCIALIZED. KEMPHARM MAKES NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO KP415. 

ARTICLE 7 

REPRESENTATIONS AND WARRANTIES OF MSRX 

MSRx represents, warrants and covenants to MSRx as of the Effective Date that: 

7.1 Existence. MSRx (a) is a company duly organized, validly existing, and in good standing under the laws of the State of
Delaware; (b) is duly qualified as an entity and in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, where the failure to be so qualified
would have a material adverse effect on its financial condition or its ability to perform its obligations under this Agreement; (c) has the requisite power and authority to execute, deliver, grant and perform the covenants and transactions
contemplated in this Agreement. 
 7.2 Authority. The execution, delivery and performance of this Agreement by MSRx and all
instruments and documents to be delivered by MSRx hereunder (a) have been duly authorized by all necessary or proper action; (b) do not conflict with any provision of the charter documents of MSRx; (c) will not violate any applicable
law or regulation or any order or decree of any court or governmental authority having jurisdiction over MSRx where such violation would have a material adverse effect on its ability to perform its obligations under this Agreement; and (d) will
not violate or conflict with any terms of any indenture, mortgage, deed of trust, lease, agreement, or other instrument to which MSRx is a party, or by which MSRx or any of its property is bound, which violation or conflict would have a material
adverse effect on its financial condition or on its ability to perform its obligations under this Agreement. 
 7.3 Binding
Effect. This Agreement has been duly executed and delivered by MSRx and constitutes a legal, valid and binding obligation of MSRx, enforceable against it in accordance with its terms, except as such enforceability may be limited by (a) [*];
and (b) [*]. 

  
 15. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 ARTICLE 8 

INDEMNIFICATION 

8.1 Mutual Indemnification. Each Party shall defend indemnify and hold harmless the other Party, including Affiliates and each
of their respective officers, directors, shareholders, employees, representatives, agents, successors and assigns from and against all Claims of Third Parties, and all associated Losses, to the extent arising out of (a) a Party’s gross
negligence or willful misconduct in performing any of its obligations under this Agreement, or (b) a material breach by a Party of any of its representations, warranties, covenants or agreements under this Agreement. 

8.2 KemPharm Indemnification of Shire Complaint. In the event that Shire brings any Claim against MSRx in connection with the
Acquired Assets other than solely as a result of a breach by MSRx of any obligation under this Agreement or in breach of the Shire Release, KemPharm shall indemnify, defend, and hold harmless, at KemPharm’s cost and expense, MSRx and
MSRx’s Affiliates, and each of their respective officers, directors, shareholders, employees, representatives, agents, successors and assigns who are named therein (collectively, the “MSRx Parties”), in such Claim by Shire (a
“Shire Claim”). 
 8.3 Procedure for Indemnification. 

(A) Notice. In the case of a Claim made by a Third Party (a “Third Party Claim”) as to which a Party (the
“Indemnitor”) may be obligated to provide indemnification pursuant to this Agreement (including a Shire Claim), such Party seeking indemnification hereunder (“Indemnitee”) shall notify the Indemnitor in writing of
the Third Party Claim (and specifying in reasonable detail the factual basis for the Third Party Claim and to the extent known, the amount of the Third Party Claim) reasonably promptly after becoming aware of such Third Party Claim; provided,
however, that failure to give such notification will not affect the indemnification provided hereunder except to the extent the Indemnitor shall have been actually materially prejudiced as a result of such failure. 

(B) Defense of Claim. If the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee for a Third Party Claim,
then the Indemnitor may elect to assume the defense of any such Third Party Claim and any litigation resulting from such Claim. Both Parties agree to cooperate with the Party providing the defense in all material respects including the timing of
requests for information and access to material necessary to the defense. 
 (C) Assumption of Defense in the event of Default of
Indemnitee. In the event the Indemnitor is not able to provide a defense, or elects not to provide a defense against any Third Party Claim, under this Section 8.3, notwithstanding anything to the contrary contained in this Agreement,
an Indemnitee shall be entitled to assume the defense of any Third Party Claim and at its sole option provide the defense against the Third Party Claim. In such case of the Indemnitee providing the defense, the Indemnitor will be required, within
thirty (30) days after receipt of written notice from the Indemnitee of the commencement or assertion of any such Third Party Claim, to provide to the Indemnitee all materials, correspondence, documents and information which may be useful in
mounting a defense. 
 (D) Settlement of Claims. If the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee
for a Third Party Claim, the Indemnitee will agree to a reasonable settlement, compromise or discharge of such Third Party Claim that the Indemnitor may 

  
 16. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
recommend that by its terms obligates the Indemnitor to pay the full amount of Losses (whether through settlement or otherwise) in connection with such Third Party Claim and unconditionally and
irrevocably releases the Indemnitee completely from all Losses in connection with such Third Party Claim; provided, however, that, without the Indemnitee’s prior written consent, the Indemnitor shall not consent to any settlement, compromise or
discharge (including, without limitation, the consent to entry of any judgment), and the Indemnitee may refuse to agree to any such settlement, compromise or discharge, that provides for injunctive or other non-monetary relief materially and
adversely affecting the Indemnitee. If the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee against a Third Party Claim, the Indemnitee shall not (unless required by applicable law) admit any liability with respect to,
or settle, compromise or discharge, such Third Party Claim without the Indemnitor’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned). 

(E) Other Assumption of Defense. Notwithstanding anything to the contrary contained in this Agreement, an Indemnitee shall be entitled
to assume the defense of any Third Party Claim with respect to the Indemnitee upon written notice to the Indemnitor in which case, the Indemnitor shall be relieved of liability under Section 8.1 solely for such Third Party Claim and related
Losses. 
 (F) Direct Claims. Any Claim on account of any and all damages, deficiencies, defaults, assessments, fines, dues,
penalties, costs, fees, liabilities, obligations, taxes, liens, losses, and expenses (including, without limitation, court costs, interest and reasonable fees of attorneys, accountants and other experts) incurred by or suffered by a Party which does
not involve a Third Party Claim (a “Direct Claim”) shall be asserted by reasonably prompt written notice (stating in reasonable detail, the basis of such Claim and a reasonable estimate of the amount thereof) given by the Indemnitee
to the Indemnitor. Except as otherwise stated in this Agreement, for a period of sixty (60) days from and after the receipt of the written notice (or such shorter period of time as otherwise set forth in this Agreement with respect to a
specific Claim) the Parties shall attempt in good faith to resolve such Direct Claim. If the Parties are unable to resolve such Direct Claim, the Party seeking recourse may thereafter pursue any and all legal and equitable remedies at its disposal
to enforce said Direct Claim. 
 ARTICLE 9 

TERM AND TERMINATION 

9.1 Term. This Agreement shall be deemed to commence on the Effective Date and, unless terminated earlier in accordance with the
terms of this Agreement, shall continue until the completion or termination of all payments to MSRx of Value pursuant to Article 4 and Section 6.6 (the “Term”). 

9.2 Accrued Rights; Surviving Obligations. Termination, relinquishment or expiration of this Agreement for any reason shall be
without prejudice to any rights that shall have accrued to the benefit of any Party prior to such termination, relinquishment or expiration. Such termination, relinquishment or expiration shall not relieve any Party from obligations which are
expressly or by implication intended to survive termination, relinquishment or expiration of this Agreement and shall not affect or prejudice any provision of this Agreement which is expressly or by implication provided to come into effect on, or
continue in effect after, such termination, relinquishment or expiration. 

  
 17. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
9.3 Survival. The following provisions shall survive the termination of this Agreement: [*], [*], [*], [*] and [*], as well as any applicable
definitions and general provisions. Remedies for breaches will also survive termination of this Agreement. 
 ARTICLE 10 

MISCELLANEOUS 
 10.1
Relationship of the Parties. Unless as otherwise agreed in writing, each Party shall bear its own costs incurred in the performance of its obligations under this Agreement without charge or expense to the other except as expressly
provided in this Agreement. No employee or representative of a Party shall have any authority to bind or obligate the other Party to this Agreement for any sum or in any manner whatsoever, or to create or impose any contractual or other liability on
the other Party without said Party’s approval. For all purposes, and notwithstanding any other provision of this Agreement to the contrary, each of the Parties’ legal relationship under this Agreement to the other Party shall be that of
independent contractor. 
 10.2 Registration and Filing of this Agreement. To the extent, if any, that either Party concludes
in good faith that it or the other Party is required to file or register this Agreement or a notification thereof with any Governmental Authority including, without limitation, the U.S. Securities and Exchange Commission or the U.S. Federal Trade
Commission, in accordance with law, such Party shall inform the other Party thereof. Should both Parties jointly agree that either of them is required to submit or obtain any such filing, registration or notification, they shall cooperate, each at
its own expense, in such filing, registration or notification and shall execute all documents reasonably required in connection therewith. In such filing, registration or notification, the Parties shall request confidential treatment of sensitive
provisions of this Agreement, to the extent permitted by applicable law. The Parties shall promptly inform each other as to the activities or inquiries of any such Governmental Authority relating to this Agreement, and shall reasonably cooperate to
respond to any request for further information therefrom on a timely basis. 
 10.3 Governing Law/Disputes. This Agreement and
all other disputes, difference and Claims arising out of or in connection with this Agreement or the respective rights of the Parties under this Agreement shall be construed and governed in all respects, and the respective rights of the Parties
determined, according to the prevailing substantive laws of the State of [*], without regard to its conflict of laws principles. The Parties agree that, differences and Claims of any kind whatsoever arising out of or in connection with this
Agreement or the respective rights of the Parties under this Agreement (other than disputes under Section 4.2, which shall be resolved in accordance with the procedures set forth under Section 4.2), either Party shall have
the right to seek recourse and to pursue any and all legal and equitable remedies at its disposal with respect to such disputes, differences or claims. In the event any such action shall be brought to enforce or interpret the terms of this Agreement
in accordance with this Section 10.3, the Parties agree that such action will be brought in the State or Federal courts located in [*]. Each of MSRx and KemPharm hereby irrevocably submits with regard to any action or proceeding for
itself and in respect to its property, generally and unconditionally, to the exclusive jurisdiction of the 

  
 18. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
aforesaid courts. Each of MSRx and KemPharm hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding with
respect to this Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason other than the failure to lawfully serve process, (b) that it or its property is exempt or immune from
jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (c) to the
fullest extent permitted by applicable law, that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper, and (iii) this Agreement, or the
subject matter hereof, may not be enforced in or by such courts. 
 10.4 Assignment. Except as provided in this
Section 10.4, this Agreement may not be assigned to any Third Party by either Party, whether by operation of law or otherwise, without the prior written consent of the other Party; provided, however, that either Party may assign its
rights under this Agreement, in whole or in part, without the prior written consent of the other Party to any of its Affiliates, KemPharm may assign its obligations under this Agreement to a wholly-owned subsidiary pursuant to a 355 Spin-off
Transaction, and either Party may assign its rights and obligations under this Agreement, in whole, to any purchaser of all or a substantial part of its assets or business, whether by merger, consolidation, reorganization, or sale of stock, subject
to the provisions of Sections 4.2. The assignment of a Party’s rights under this Agreement in accordance with this Section 10.4 shall be contingent on the delivery of the assigning Party and its Affiliate or Third Party to
the other Party of a guarantee of the performance of this Agreement in a form reasonably satisfactory to the other Party. Any purported assignment or transfer in violation of this Section 10.4 shall be void ab initio and of no force or
effect. This Agreement shall be binding upon, and subject to the terms of the foregoing sentence, inure to the benefit of the Parties hereto, their permitted successors, legal representatives and assigns. 

10.5 Notices. All demands, notices, consents, approvals, reports, requests and other communications hereunder must be in writing
and shall be deemed to have been duly given only if delivered personally, by facsimile or email transmission with confirmation of receipt, by mail (first class, postage prepaid), or by overnight delivery using a globally-recognized carrier, to the
Parties at the following addresses: 
 MSRx: MonoSol Rx, LLC 

30 Technology Drive 
 Warren, New
Jersey 07059 
 Attn: President 

Telephone: 908-941-1900 

Facsimile: 908-561-1209 
 [*] 

KemPhann: KemPharm, Inc. 
 7
Hawkeye Drive 
 Suite 103 

North Liberty, Iowa 52317 
 Attn:
President 
 Telephone: 319-665-2575 

Facsimile: 319-665-2577 
 Email:
tcmickle@kempharm.com 
 or to such other address as the addressee shall have last furnished in writing in accord with this provision to the addressor. If a
demand, notice, consent, approval, report, request and other communication has been properly sent or delivered in accordance with this clause, it will be 

  
 19. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 
deemed to have been received as follows: if delivered personally, at the time of delivery; or if sent by fax, at the time of transmission; or if sent by e-mail, at the time of transmission; if
sent by mail, 9:00 am on the fourth Business Day after posting; or if delivered by commercial courier, on the date and at the time of signature of the courier’s receipt; or if delivered by overnight delivery using a globally-recognized carrier,
9:00 am on the second working day after posting. 
 For the purposes of this clause all times are to be read as local time in the place of
deemed receipt; and if deemed receipt under this clause is not within business hours (meaning 9:00 am to 5:30 pm Monday to Friday on a day that is not a public holiday in the place of receipt), the demand, notice, consent, approval, report, request
and other communication is deemed to have been received when business next starts in the place of receipt. 
 10.6
Severability. In the event of the invalidity of any provisions of this Agreement or if this Agreement contains any inconsistencies, the Parties agree that such invalidity or inconsistency shall not affect the validity of the remaining
provisions of this Agreement. The Parties will replace an invalid provision or correct any inconsistency with valid provisions which most closely approximate the purpose and economic effect of the invalid provision or, in case of an inconsistency,
the Parties’ presumed intentions. In the event that the terms and conditions of this Agreement are materially altered as a result of the preceding sentences, the Parties shall renegotiate the terms and conditions of this Agreement in order to
resolve any inequities. Nothing in this Agreement shall be interpreted so as to require either Party to violate any laws. 
 10.7
Headings. The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof. 

10.8 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 any 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. Except as expressly set forth in this Agreement, all rights and remedies available to a Party, whether
under this Agreement or afforded by law or otherwise, will be cumulative and not in the alternative to any other rights or remedies that may be available to such Party. 

10.9 Entire Agreement. This Agreement (including the exhibits hereto, which by this reference are incorporated herein and made a
part hereof as if set forth verbatim) constitutes the entire agreement between the Parties hereto with respect to the within subject matter and supersedes all previous agreements and understandings between the Parties, whether written or oral,
including, without limitation but subject to the rights of MSRx under Section 2.4 above, the CLA. Any and all confidential or proprietary information exchanged between the Parties pursuant to the CLA, the Confidentiality Agreement
executed and delivered as of [*], and that certain agreement between the Parties dated [*] and amended on [*], shall be deemed Confidential Information for purposes of and covered by the terms of this Agreement. This Agreement may be altered,
amended or changed only by a writing making specific reference to this Agreement and signed by duly authorized representatives of the Parties. 

  
 20. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 10.10 Third Party Beneficiaries. With the exception of either Party’s
Affiliates, and with the additional exception of Shire’s rights with respect to the Shire Release, none of the provisions of this Agreement shall be for the benefit of or enforceable by any Third Party, including without limitation any creditor
of either Party hereto. No such Third Party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any Claim in respect of any debt, liability or obligation against either Party hereto. The rights
of the Parties to terminate, rescind or agree any variation, waiver or settlement under this Agreement is not subject to the consent of any Third Party that is not a party to this Agreement. 

10.11 Counterparts; Facsimile Signatures. This Agreement may be executed in multiple counterparts, all of which, when executed,
shall be deemed to be an original and all of which together shall constitute one and the same document. Signatures provided by facsimile transmission shall be deemed to be original signatures. 

[Signature Page Follows] 

  
 21. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the Effective Date. 

 

									
	 MONOSOL RX, LLC
				KEMPHARM, INC.
					
	 By:
		 /s/ Alexander M. Schobel
				By:		     /s/
Travis Mickle                                      
                          

							Travis Mickle, president and CEO

  
 22. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 EXHIBIT A 

Shire Release 

  
 23. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 Shire LLC 

9200 Brookfield Court 
 Florence, Kentucky 

Telephone 800-828-2088 
  
 

 
 EXECUTION COPY 

March 20, 2012 
 A. Mark Schobel, President and Chief
Executive Officer 
 MonoSol Rx, LLC 
 30 Technology Drive 

Warren, New Jersey 07059 
 Re: Collaboration and License
Agreement with KemPharm, Inc. 
 Dear Mr. Schobel: 
 [* 4
pages of text omitted] 
 Very truly yours, 
 Shire LLC 

 

					
	By:	 	  
	 	
	Name: Mike Chapman, President
	Title:	 	  
	 	
	Date:	 	  
	 	

  
 24. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

					
	ACKNOWLEDGED AND AGREED:
	MonoSol Rx, LLC	 	

  

			
	 By:
	 	  

	A. Mark Schobel, President and Chief Executive Officer

  

					
	Date:	 	  
	 	
	,	 		 	

  
 29. 

[*] = Certain confidential information contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule
406 of the Securities Act of 1933, as amended. 

 EXHIBIT B 

VALUATION TERMS 
 Any valuation conducted
pursuant to Section 4.2 shall be in accordance with the following: 
 1. Any valuation expert utilized for the purposes of assessing and/or determining
Value associated with KP415 pursuant to Section 4.2 shall be at least a credentialed partner or director from a certified public accounting firm or investment bank with which neither Party (nor their Affiliates) has had any past, material
relationship. The Parties agree that any determination of the Value reasonably attributable to the KemPharm Sale Price by such independent valuation experts shall be conducted as a valuation engagement as defined by the Statement on Standards for
Valuation Services (SSVS) of the American Institute of Certified Public Accountants and in accordance with SSVS. The determination of Value resulting from the valuation engagement shall be expressed as a conclusion of value as defined by SSVS and,
as it relates to the all of the valuation experts performing such valuation, communicated in a detailed report as defined by SSVS. 
 2. Notwithstanding the
requirements of SSVS, the valuation expert, at a minimum, shall consider the following with respect to KP415: 
 [*] 

3. Notwithstanding the requirements of SSVS, the valuation expert, at a minimum, shall consider criteria substantially similar to the above paragraphs 2.A-I,
with respect to each of the other assets included in the KemPharm Sale Transaction. 
 4. The valuation expert shall assign a valuation of the overall
portfolio of tangible and intangible assets that are included the KemPharm Sale Transaction as a going concern, taking into consideration the individual value of each of such tangible and intangible assets. 

5. Each of the Parties agree that it shall provide to the valuation expert a copy of this provision for instruction in connection with such independent
valuation expert’s determination of the Value. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, is filed with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00243-of-00352.parquet"}]]