Document:

EX-10.1

 Exhibit 10.1 

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE
OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
 MANUFACTURING SERVICES AGREEMENT 

This MANUFACTURING SERVICES AGREEMENT (the
“Agreement”) is made and entered into as of September 2, 2014 (the “Effective Date”) by and between Orexigen Therapeutics, Inc., a Delaware corporation with its principal place of business
at 3344 N. Torrey Pines Court, Suite 200, La Jolla, California 92037, United States of America (“Orexigen”), and Takeda Pharmaceutical Company Limited, a company incorporated under the laws of Japan, with
its principal place of business at 1-1, Doshomachi 4-chome, Chuo-ku, Osaka, 540-8645, Japan (“Takeda”). Orexigen and Takeda are sometimes referred to herein individually as a “Party” and collectively as the
“Parties”. 
 RECITALS 

WHEREAS, the Parties have entered into that certain Collaboration Agreement, dated September 1, 2010, as amended by
Amendment Number 1 to Collaboration Agreement effective as of September 26, 2013 (collectively, the “Collaboration Agreement”), pursuant to which Orexigen has granted Takeda certain rights to Develop, Manufacture and
Commercialize the Product in the Territory; and 
 WHEREAS, pursuant to Article 4 of the Collaboration Agreement,
Orexigen has agreed to manufacture and supply to Takeda, and Takeda has agreed to purchase from Orexigen, all of Takeda’s, its Affiliates’ or permitted Sublicensees’ requirements for Commercialization of the Product (other than
Commercial Packaging) in the Territory until such time, if ever, that Takeda assumes responsibility for the manufacture and supply of the Product, including pursuant to Section 3.6.1 of this Agreement or Section 4.2 of the Collaboration
Agreement. 
 NOW THEREFORE, in consideration of the mutual promises and covenants set forth below, the
Parties agree as follows: 
 ARTICLE 1 

DEFINITIONS 
 Capitalized
terms used herein and not defined below shall have the respective meanings assigned to such terms in the Collaboration Agreement; if a term is defined in this Agreement in a manner which differs from its definition in the Collaboration Agreement,
for purposes of this Agreement, the definition contained in this Agreement shall govern. 
 1.1 “Actual Annual Yield” has
the meaning set forth for such term in the Patheon Agreement, or shall have such other meaning as agreed to in writing by the Parties. 

1.2 “Batch” means a specific quantity of the Product (consisting of a number of tablets based on demonstrated Actual Annual
Yield), that is intended to have uniform character and quality, within specified limits, and is produced according to a single manufacturing order. 

  
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 1.3 “Calendar Quarter” means the respective periods of three
(3) consecutive calendar months ending on March 31, June 30, September 30 and December 31; provided, however, that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the end of
the first Calendar Quarter thereafter; and (b) the last Calendar Quarter of the Term shall end upon the effective date of expiration or termination of this Agreement. 

1.4 “Calendar Year” means (a) for the first Calendar Year of the Term, the period beginning on the Effective Date and
ending on December 31, 2014, (b) for each Calendar Year of the Term thereafter, each successive period beginning on January 1 and ending twelve (12) consecutive calendar months later on December 31, and (c) for the last
Calendar Year of the Term, the period beginning on January 1 of the Calendar Year in which this Agreement expires or terminates and ending on the effective date of expiration or termination of this Agreement. 

1.5 “Capacity Percentage” means [***] percent ([***]%), or such other
percentage as agreed to in writing by the Parties. 
 1.6 “cGMPs” means the applicable current good manufacturing practices
as described in Parts 210 and 211 of Title 21 of the United States Code of Federal Regulations, together with the latest FDA guidance documents pertaining to manufacturing and quality control practice (including the FDA’s Guidance for Industry,
Manufacturing, Processing, or Holding Active Pharmaceutical Ingredients), all as updated, amended and revised from time to time, and, as applicable, any similar or equivalent regulations and requirements in jurisdictions outside the U.S. 

1.7 “Commercially Reasonable Efforts” means, with respect to the efforts to be expended, or considerations to be undertaken,
by a Party and/or its Affiliates with respect to any objective, activity or decision to be undertaken hereunder, reasonable, good faith efforts to accomplish such objective, activity or decision as such Party would normally use to accomplish a
similar objective, activity or decision under similar circumstances. 
 1.8 “Contrave” means the Orexigen proprietary
formulation of bupropion hydrochloride and naltrexone hydrochloride, formulated in a sustained release formulation, as described in the NDA No. 20-0063. For clarity, Contrave may be used for clinical development or commercial purposes. 

1.9 “Delivery of Launch Supplies” means Launch Supplies are available and at the disposal of Takeda at Orexigen packaging
site not later than the Launch Supplies Delivery Date. 
 1.10 “Effective Date” has the meaning set forth in the first
paragraph of this Agreement. 
 1.11 “Facility Consulting Support” means services that are primarily provided on-site at a
Third Party Manufacturer by a Third Party consultant who has special knowledge, skill and/or expertise relating to a particular field, job or area of [***], and the like; provided, further, such services are intended to include activities and
responsibilities that would not otherwise be provided by personnel of Orexigen or Takeda in their respective normal course of business. 

 

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 1.12 “Firm Order” has the meaning set forth in Section 3.2. 

1.13 “Forecast” has the meaning set forth in Section 3.1.1. 

1.14 “Initial Month” has the meaning set forth in Section 3.1.1. 

1.15 “Knowledge” means, as applied to a Party in this Agreement, that such Party shall be deemed to have knowledge of a
particular fact or other matter to the extent that a reasonably prudent person with experience in or with the pharmaceutical industry and with primary responsibility for the applicable subject matter would know of such fact or other matter upon
reasonably diligent inquiry. 
 1.16 “Launch Supplies” means the full quantity of Product in finished bulk form [***], by dosage strength, ordered by Takeda for commercial launch of Product in the U.S., which at the time of Delivery of Launch Supplies, will have a minimum of nine (9) months remaining shelf life
and will comply with the terms of this Agreement. 
 1.17 “Launch Supplies Delivery Date” means the delivery date specified
in Takeda’s Firm Order for Launch Supplies issued to Orexigen at least [***] prior to such delivery date; provided, however, that if any delay in Delivery of Launch Supplies, is caused by Takeda, then such delivery date shall be extended for
each day such delivery may be delayed. 
 1.18 “Manufacturing Capacity” means the Capacity Percentage multiplied by the
annual manufacturing capacity [***] ([***] of the Product) over the course of the applicable rolling twelve (12) month period. 

1.19 “Manufacturing Payments” means Obsolete Material Costs, Period Costs, and the Transfer Price payable by Takeda pursuant
to this Agreement. 
 1.20 “Obsolete Material Costs” means the costs of materials, including [***]. For the avoidance of
doubt, Obsolete Material Costs shall not include [***]. Obsolete Material Costs shall be accounted for in accordance with GAAP or IFRS, as applicable. 

1.21 “Patheon” means, collectively, Patheon Pharmaceuticals Inc. and Patheon Inc. 

1.22 “Patheon Agreement” means the Manufacturing Services Agreement dated March 12, 2010 between Orexigen and Patheon,
as it may be amended from time to time. 
 1.23 “Period Costs” means the costs, [***]. For the avoidance of doubt, Period Costs shall not include [***]. Period Costs shall be accounted for in accordance with GAAP or IFRS, as applicable. 

 

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 1.24 “Pharmacovigilance Agreement” means an agreement entered into between the
Parties concerning matters relating to the management and exchange of safety information as described in Section 3.6 of the Collaboration Agreement. 

1.25 “Product” means the Orexigen proprietary formulation of bupropion hydrochloride and naltrexone hydrochloride, formulated
in a sustained release formulation, as described in NDA No. 200063, [***] for commercial sale, solely in one or more of the forms set forth in Exhibit 1.25, as such Exhibit may be supplemented or amended from time to time in upon mutual written
agreement of the Parties in accordance with Section 7.3.3. 
 1.26 “Quality Agreement” has the meaning set forth in
Section 9.1. 
 1.27 “Recall” means any product recall, field correction, or withdrawal of the Product in the
Territory. 
 1.28 “Recall Costs” has the meaning set forth in Section 10.2. 

1.29 “Safety Stock” means inventory of Licensed Compounds, excipients, laboratory supplies, and the Product deemed necessary
by the JMC for the Territory to be maintained in order to manage demand or supply risks associated with the Product in the Territory. 

1.30 “[***]” means [***]. 

1.31 “Specifications” means the formulations, manufacturing directions, packaging specifications, testing methods, sampling
instructions, quality control procedures and finished product specifications, as amended from time to time in accordance with Section 7.3. The Specifications in effect as of the Effective Date are attached as Exhibit 1.31. 

1.32 “Takeda Damages” has the meaning set forth in Section 3.6.3. 

1.33 “Term” has the meaning set forth in Section 13.1. 

1.34 “Third Party Manufacturer” has the meaning set forth in Section 2.3.1. 

1.35 “Third Party Manufacturer Agreements” means those agreements set forth in Exhibit 2.3.1, as such Exhibit may be revised
from time to time as set forth in Section 2.3. 
 1.36 “Three Year Forecast” has the meaning set forth in Section
3.1.2. 
 1.37 “Transfer Price” means the [***] costs associated with
the Manufacture of the Product [***]. The Transfer Price will not include any (a) Period Costs, (b) Obsolete Material Costs, (c) [***], (d) [***], or (e) [***]. The Transfer Price shall be accounted for in accordance with
GAAP or IFRS, as applicable. 
  

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 ARTICLE 2 

PRODUCT MANUFACTURE AND SUPPLY 

2.1 Purchase and Supply. Subject to the provisions of this Agreement and the Collaboration Agreement, Orexigen shall Manufacture or
have Manufactured, and supply or have supplied, and Takeda shall purchase from Orexigen, all of Takeda’s requirements of the Product for Commercialization of the Product in the Territory, in accordance with the terms and conditions of this
Agreement. Without limiting Orexigen’s obligations hereunder, Orexigen shall use Commercially Reasonable Efforts to meet Takeda’s requirements for the Product in the Territory. Unless and until Manufacture of the Product is transferred to
Takeda, including pursuant to Section 3.6.1 of this Agreement or Section 4.2 of the Collaboration Agreement, and except as otherwise set forth in Section 4.4 of the Collaboration Agreement, Orexigen shall retain and have the sole and
exclusive right and obligation to Manufacture, have Manufactured, supply or have supplied all of Takeda’s requirements of the Product for Commercialization in the Territory itself or through its Third Party Manufacturers during the Term. For
clarity, Takeda shall be responsible for performing Commercial Packaging in the Territory in accordance with Section 4.4 of the Collaboration Agreement. 

2.2 Manufacturing Capacity. As part of the forecasting process under Section 3.1, the Parties will cooperate to provide for the
supply of Takeda’s requirements of the Product hereunder. Takeda acknowledges that Orexigen shall have satisfied its supply obligations under this Agreement if Orexigen has supplied to Takeda, under this Agreement and any agreement between the
Parties and/or their Affiliates for supply of Contrave for Development, (a) [***], or (b) [***], in each case of (a) and (b) [***]. By way of example, if the Manufacturing Capacity is equal to [***],
Takeda shall be entitled to forecast, and Orexigen shall be obligated to supply, [***], Takeda shall also be entitled to forecast, and Orexigen will supply to Takeda, [***]. Any Manufacturing Capacity not used by Takeda during the
[***]. For example, if Takeda does not [***]. Conversely, if, for example, Takeda [***]. 
 2.3 Third Party
Manufacturers. 
 2.3.1 Orexigen Subcontracting. Orexigen may subcontract any or all of its obligations pursuant to this
Agreement to any or all of the Third Party manufacturers set forth in Exhibit 2.3.1, as such Exhibit may be revised from time to time as set forth in Section 2.3.2 or 2.3.3 (the “Third Party Manufacturers”). For purposes of
this Section 2.3, the term “manufacturer” is considered to be inclusive of all facilities designated in the corresponding section of the NDA. These include, but are not limited to, testing laboratories and packaging facilities.
Orexigen acknowledges that it has entered into Third Party Manufacturer Agreements with the Third Party Manufacturers set forth in Exhibit 2.3.1, and, unless otherwise specified in Exhibit 2.3.1, such Third Party Manufacturers shall undertake the
Manufacture of the Product or active pharmaceutical ingredients contained in the Product for a period of at least [***] ([***]) years after First Commercial Sale. Orexigen shall be responsible for
the day-to-day management of all Third Party Manufacturer relationships until such time, if ever, responsibility for Manufacturing is transferred to Takeda, including pursuant to Section 3.6.1 of this Agreement or Section 4.2 of the
Collaboration Agreement. 
  

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 2.3.2 Amendments to Third Party Manufacturer Agreements. Orexigen shall not amend any
Third Party Manufacturer Agreement in any manner that could have a material impact on the Manufacture of the Product for Takeda under this Agreement or Takeda’s ability to Commercialize or Develop the Product in the Territory without
Takeda’s prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Orexigen shall provide Takeda with a copy of each amendment to a Third Party Manufacturer Agreement promptly after its execution, and
shall update Exhibit 2.3.1 to reflect such amendment. 
 2.3.3 Takeda Consent to Third Party Manufacturer Agreements. Takeda hereby
consents to the Manufacture of the Product by the Third Party Manufacturers listed in Exhibit 2.3.1 as of the Effective Date. Orexigen shall be required to seek Takeda’s prior written consent before subcontracting any or all of its obligations
pursuant to this Agreement to a Third Party manufacturer that is not listed in Exhibit 2.3.1, which consent shall not be unreasonably withheld, conditioned, or delayed. 

2.3.4 Maintenance of Third Party Manufacturer Agreements. Orexigen agrees that it shall use Commercially Reasonable Efforts to maintain
the Third Party Manufacturer Agreements in force and effect as required to satisfy its supply obligations under this Agreement unless otherwise mutually agreed to in writing by the Parties. 

2.4 Inventions and Intellectual Property. Ownership of any and all inventions conceived or reduced to practice solely by a Party or
such Party’s employees, consultants, or contractors (including Third Party Manufacturers) or jointly by the Parties or the Parties’ employees, consultants or contractors (including Third Party Manufacturers) in the course of activities
performed under or contemplated by this Agreement, any and all intellectual property rights therein, and any and all patent applications and patents resulting therefrom shall be subject to the provisions of Sections 9.1 to 9.5 of the Collaboration
Agreement.  
 ARTICLE 3 

FORECASTING AND ORDERING 

3.1 Forecasts.  

3.1.1 Twelve-Month Forecasts. At least [***] ([***]) months prior to the first day of the month in which Takeda requests initial
delivery of the Product (such month, the “Initial Month”), Takeda shall provide Orexigen with a twelve (12) month rolling forecast for the quantity of the Product to be delivered in each month of the twelve (12) month
rolling forecast (each, a “Forecast”), with the first such forecast beginning with the quantity of Batches of the Product that Takeda expects to be delivered beginning with the Initial Month. No later than the [***] thereafter, Takeda will provide Orexigen with an updated Forecast. On a monthly basis, the Parties will review the Forecast for months [***] ([***]) through [***] ([***]) and use Commercially
Reasonable Efforts to (i) [***], or (ii) [***]. Subject to Sections 2.2 and 3.5, the 
  

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quantity of the Product provided for in the first [***] ([***]) months of each revised Forecast will be binding on each of the Parties, such that Takeda will be obligated to purchase, and
Orexigen will be obligated to supply, the quantity of the Product forecasted for delivery in such months. The most recent revised Forecast will prevail over all previous Forecasts. 

3.1.2 Three Year Forecasts. At least [***] ([***]) months prior to the Initial Month, Takeda shall provide Orexigen with a written
three (3) year forecast (of which the first year shall consist of the Forecast provided under Section 3.1.1, and the second and third years of this three (3) year forecast shall be broken down by Calendar Quarters) of the quantity of
Batches of the Product Takeda then anticipates it will require to be delivered to Takeda during the three (3) year period, which forecast shall be non-binding except for the first [***] ([***]) months covered by such forecast, and shall be used
by Orexigen for planning purposes (the “Three Year Forecast”). In addition, on or before the [***] of each [***], Takeda will provide Orexigen with an updated rolling Three Year Forecast. 

3.2 Firm Orders. Subject to Sections 2.2 and 3.5, Takeda shall issue binding written orders in the form of original (i.e., not copies)
purchase orders to purchase Batches of the Product under this Agreement (“Firm Orders”), each of which shall specify the type and quantity of Batches of the Product to be delivered and the requested delivery date. For clarity,
Takeda is required to order the Product in full Batches, unless otherwise mutually agreed to in writing. Takeda shall submit a Firm Order to Orexigen at least [***] ([***]) months prior to the delivery date indicated in such Firm Order. Unless
otherwise mutually agreed to by the Parties, [***]. Any term or condition in a Firm Order, confirmation, or other document furnished by a Party that is inconsistent with the terms and conditions of this Agreement will not be binding on the Parties.
For Launch Supplies, Takeda will issue a Firm Order at least [***] ([***]) months prior to the Launch Supplies Delivery Date, and Orexigen may invoice the estimated Transfer Price when Orexigen completes Delivery of Launch Supplies. 

3.3 Order Confirmation. Within [***] ([***]) days after receipt of Takeda’s Firm Order, Orexigen shall confirm or decline the Firm
Order in writing; provided, however, that Orexigen may decline a Firm Order only with respect to quantities of the Product in excess of those set forth in the binding portion of the Forecast for the relevant period. [***]. For clarity, Orexigen
shall use Commercially Reasonable Efforts to supply quantities of the Product requested by Takeda that are in excess of those set forth in the binding portion of the Forecast for the relevant period. All Firm Orders confirmed by Orexigen will be
binding and may not be cancelled or modified by either Party without the other Party’s written consent. For clarity, if Takeda cancels a Firm Order, Takeda is obligated to pay to Orexigen only the direct Third Party costs incurred by Orexigen
and its Third Party Manufacturers in connection with the Product that is subject to such cancellation. 
 3.4 Delivery of Launch
Supplies. Notwithstanding anything to the contrary contained in this Agreement, in order to achieve Delivery of Launch Supplies, Orexigen shall deliver the Launch Supplies to Takeda by the Launch Supplies Delivery Date. If Orexigen fails to
achieve Delivery of Launch Supplies by the Launch Supplies Delivery Date, then Takeda will have solely the remedies set forth in Section 3.6.1(a) and (b) and the following remedy: Takeda shall not be obligated to pay the Ten Million Dollar
($10,000,000) second milestone event payment under the heading “Development Milestones” set forth in Section 7.2.1 of the Collaboration Agreement and Orexigen shall forfeit receipt of such payment. 

 

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 3.5 Allocation of Supply. If Orexigen is unable, using Commercially Reasonable Efforts, to
supply Takeda’s requirements of the Product for the Territory as set forth in Takeda’s binding Firm Orders, then, unless otherwise agreed in writing by the Parties, for as long as the shortage shall last, Takeda shall receive [***]. 
 3.6 Remedies for Failure to Supply.  

3.6.1 Takeda Assumption of Manufacturing Responsibilities. Subject to Section 3.6.2, upon the occurrence of any of the following
events during the Term, whether the first occurrence or any subsequent occurrence thereof, Takeda may, at its election made in writing to Orexigen, and subject to the provisions of Section 14.1 of the Collaboration Agreement and a mutually
agreed upon transition plan, (a) [***], and/or (b) [***]: 
 (i) Orexigen fails to achieve Delivery of Launch Supplies by the
Launch Supplies Delivery Date; 
 (ii) Orexigen fails to deliver the Product, other than Launch Supplies as addressed in
Section 3.6.1(i), within [***] ([***]) Business Days after the specified delivery date set forth in any Firm Order submitted in accordance with Section 3.2 and confirmed by Orexigen in accordance with Section 3.3; 

(iii) Orexigen fails to deliver in any [***] at least [***] percent ([***]%) of the Batches of the Product ordered by Takeda in a Firm Order
submitted in accordance with Section 3.2 and confirmed by Orexigen in accordance with Section 3.3; or 
 (iv) Orexigen or any of
its Affiliates files in any court or agency pursuant to any statute or regulation of any state or country, a petition in bankruptcy for insolvency or for reorganization or for the appointment of a receiver or trustee of such Person or of
substantially all of its assets, or if such Person is served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof, or if such
Person shall propose or be a party to any dissolution or liquidation, or if such Person shall make an assignment of substantially all of its assets for the benefit of creditors. 

3.6.2 Unexpected Increase in Demand for Product. Takeda’s remedies under Section 3.6.1 will not apply if a failure by
Orexigen under Section 3.6.1(i), (ii), or (iii) is caused by an unexpected increase in Takeda’s demand for the Product in the Territory, including Firm Orders for the Product, that exceeds (i) Orexigen’s ability to obtain
additional supply of Licensed Compounds and the Product necessary to meet such demand after using available Safety Stock for the Territory, (ii) Patheon’s obligation to supply the Product to Orexigen under the Patheon Agreement, and/or
(iii) the Manufacturing Capacity. 
  

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 3.6.3 Recovery of Takeda Damages. Orexigen shall [***]. For the avoidance of doubt [***]. 
 3.7 Exclusive Remedies. EXCEPT AS SET FORTH IN
ARTICLES 8, 10, AND 12, TAKEDA’S SOLE REMEDY FOR ANY FAILURE BY OREXIGEN TO ACHIEVE DELIVERY OF LAUNCH SUPPLIES AND/OR SUPPLY THE PRODUCT IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT SHALL BE THE REMEDIES SET FORTH IN SECTIONS 3.4 (AS
APPLICABLE), 3.5, 3.6.1(a) AND (b), AND 3.6.3 (AS APPLICABLE). For clarity, except for termination of this Agreement pursuant to Section 13.2 as a consequence of Takeda’s exercise of its rights under Section 4.2 of the Collaboration
Agreement or pursuant to Section 3.6.1 of this Agreement, Takeda shall not have the right to terminate this Agreement or the Collaboration Agreement for Orexigen’s failure to achieve Delivery of Launch Supplies as set forth in
Section 3.4, or for any other failure by Orexigen to supply the Product in accordance with this Agreement. 
 ARTICLE 4 

JMC; CAPACITY EXPANSION; EXPENDITURES; 

COST IMPROVEMENTS; QUALITY IMPROVEMENTS 

4.1 JMC. The JMC shall have [***] over the Manufacture and distribution of the Product under this Agreement during the Term. The JMC
shall [***] developments relating to forecasting, commercial and regulatory issues, scheduling and supply, projects relating to capacity expansion, capital and/or operating expenditures, quality improvements and cost improvements, and other matters
related to Manufacturing under this Agreement. In addition, the JMC shall [***] the appropriate level and management of Safety Stock. During the Term, and [***], Orexigen shall retain final decision-making authority with respect to Manufacturing as
set forth in Section 5.7.3(b)(ii) of the Collaboration Agreement until and unless Takeda assumes responsibility for Manufacturing pursuant to Section 3.6.1 of this Agreement or [***], upon which Takeda will have final decision-making
authority as set forth in Section 5.7.3(a)(iv) of the Collaboration Agreement. For the avoidance of doubt, such final decision-making authority does not include any right to make any decision with respect to any disputes between the Parties as
to the meaning of any provision of this Agreement or the Collaboration Agreement or either Party’s performance under this Agreement or the Collaboration Agreement or lack thereof. 

 

	4.2	Capacity Expansion.  

 4.2.1 At its option, and at any time during the
Term, either Party may seek to invest in additional manufacturing capacity for the Manufacture of the Product. In such event, such Party will provide written notification to the other Party of its intent, which notice shall include all information
reasonably necessary for such other Party to understand the additional capacity sought (i.e., the number of tablets of the Product), and the expected timing for receipt of such additional capacity. Upon receipt of the notice from such other Party,
the other Party (i.e., the Party that received the notice) agrees to negotiate in good faith with such other Party supply of Product to or from such other Party using such additional manufacturing capacity and associated  

 

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pricing. At Takeda’s request, [***]. Notwithstanding anything to the contrary in this Section 4.2.1, Orexigen shall have no
obligation to establish a second Manufacturing facility or to increase the capacity at Patheon’s Manufacturing facility for the Product during the Term. 

4.2.2 If a Party desires a commitment of Manufacturing capacity at Patheon’s Manufacturing facility beyond the Manufacturing
Capacity, or desires that an additional Manufacturing facility other than at [***] be established by Orexigen for the Manufacture of the Product during the Term, such Party shall present to the JMC for consideration the proposed project, expected
results, estimated costs thereof, how the additional capacity from such project will be allocated between the Territory and outside the Territory, and how the costs of such project will be borne between the Parties. If the JMC does not approve a
project and such cost sharing, either Party may escalate the Dispute pursuant to Section 5.7 of the Collaboration Agreement; provided, however, that [***] shall have final decision-making authority or the right to solely decide a Dispute
related to a project for capacity expansion pursuant to this Section 4.2. For any capacity expansion project solely for the Territory that is approved by the JMC (or pursuant to Section 5.7 of the Collaboration Agreement), the costs shall
be borne [***]. For any other capacity expansion project and cost sharing that is approved by the JMC (or pursuant to Section 5.7 of the Collaboration Agreement), the costs of such project will be borne [***] (or pursuant to Section 5.7 of
the Collaboration Agreement). Notwithstanding the foregoing, Orexigen may incur costs for capacity expansion projects solely for the manufacture of the Product for use outside of the Territory in its sole discretion and at its sole cost and benefit.
 
 4.3 Capital and Operating Expenditures. The Parties agree that as of the Effective Date (as such term is defined in the
Collaboration Agreement), no new capital expenditures, including equipment, are required by Orexigen or its Third Party Manufacturers to Manufacture the anticipated commercial demand for the Product for the Territory. Notwithstanding anything to the
contrary in this Section 4.3, Orexigen shall have the right, in its sole discretion, to invest in and implement one or more capital and/or operating expenditure projects that are reasonably deemed by Orexigen to be necessary in order to meet
its obligations under this Agreement; provided, that (i) the aggregate cost of such expenditure project(s) (including purchase and implementation costs) in a Calendar Year does not exceed [***] Dollars ($[***]), and (ii) all costs relating
to any such expenditure project(s) (including purchase and implementation costs) that do not exceed [***] Dollars ($[***]) in a Calendar Year shall be Period Costs and treated/allocated in accordance with Section 5.3.1. In the event that a
Party desires to invest in one or more expenditure projects that will result in the aggregate cost of one or more expenditure projects exceeding [***] Dollars ($[***]) in a Calendar Year, such
Party shall present the proposed project, expected results and estimated costs thereof to the JMC for consideration. If the JMC does not approve such expenditure project, either Party may escalate the Dispute pursuant to Section 5.7 of the
Collaboration Agreement; provided, however, that [***] shall have final decision-making authority or the right to solely decide a Dispute related to such expenditure project. For such an expenditure project that is approved by the JMC (or pursuant
to Section 5.7 of the Collaboration Agreement), the costs shall be Period Costs and treated/allocated in accordance with Section 5.3.1, 

 

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unless the Parties agree in good faith and set forth in writing that such costs equally benefit the Product for use in the Territory and for use outside the Territory, in which case such costs
will be shared equally. In the event that (a) an expenditure project proposed by Orexigen under this Section 4.3 is not approved by the JMC (or pursuant to Section 5.7 of the Collaboration Agreement), (b) Orexigen fails to
deliver Product to Takeda in accordance with the terms of this Agreement, and (c) such failure by Orexigen to deliver Product is a direct result of Orexigen having not implemented the proposed expenditure project (i.e., that was not approved by
the JMC or otherwise by the Parties pursuant to Section 5.7 of the Collaboration Agreement), then such failure by Orexigen to deliver Product to Takeda shall not be deemed a breach of Section 3.6.1(ii) or (iii). For clarity,
(1) Orexigen may invest in and implement expenditure projects for the manufacture of the Product for use outside of the Territory in its sole discretion and at its sole cost and benefit, and (2) this Section 4.3 is not intended to
address expenditure projects that are intended to be governed by Sections 4.2, 4.4 and 4.5 of this Agreement. 
 4.4 Quality
Improvements. If either Party identifies manufacturing or quality improvements that do not result in cost improvements pursuant to Section 4.5, such Party shall present the proposed projects, expected results and estimated costs thereof to
the JMC for consideration. Orexigen shall have the right in its sole discretion to implement any manufacturing or quality improvement projects that are reasonably deemed by Orexigen to be necessary in order to meet its obligations under this
Agreement. With respect to any other manufacturing or quality improvement project that is contemplated by a Party and that does not result in cost improvements pursuant to Section 4.5, if the JMC does not approve such other project, either
Party may escalate the Dispute pursuant to Section 5.7 of the Collaboration Agreement; provided, however, that [***] shall have final decision-making authority or the right to solely decide a Dispute related to such other project pursuant to
this Section 4.4. For any manufacturing or quality improvement project that is approved by the JMC (or pursuant to Section 5.7 of the Collaboration Agreement), or for any manufacturing or quality improvement project that is reasonably
deemed by Orexigen to be necessary in order to meet its obligations under this Agreement, the costs of such manufacturing or quality improvement project shall be Period Costs and allocated in accordance with Section 5.3.1(ii)(b). For clarity,
Orexigen may perform manufacturing or quality improvement projects for the manufacture of the Product for use outside of the Territory in its sole discretion and at its sole cost and benefit. 

4.5 Cost Improvement Opportunities. The Parties agree to use Commercially Reasonable Efforts to identify opportunities for cost
improvements for Manufacture of the Product for use in the Territory, including cost savings on materials and services, as part of an overall cost improvement program. The Parties shall present to the JMC for consideration the proposed cost
improvement projects, expected results, estimated costs thereof, and proposal for the allocation between the Parties of (a) [***], and (b) [***]. If the JMC does not approve a cost
improvement project, including such allocation of costs and cost savings, either Party may escalate the Dispute pursuant to Section 5.7 of the Collaboration Agreement; provided, however, that [***] shall have final decision-making authority or
the right to solely decide a Dispute related to a cost improvement project pursuant to this Section 4.5. For any cost improvement project that is approved by the JMC (or pursuant to Section 5.7 of the Collaboration Agreement), the Parties
shall 
  

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set forth in writing the allocation of (a) [***], and (b) [***]. Notwithstanding anything to the contrary in this Section 4.5, any cost improvement opportunities implemented by
Takeda for Commercial Packaging of the Product will be performed by Takeda in its sole discretion and at its sole cost, and all savings from such improvements will be realized solely by Takeda. Orexigen may perform any cost improvement project that
benefits the Manufacture of the Product for use outside of the Territory in its sole discretion and at its sole cost, and all savings from such project will be realized solely by Orexigen. 

ARTICLE 5 
 MANUFACTURING
PAYMENTS, INVOICING AND PAYMENT 
 5.1 Manufacturing Payments. In addition to amounts payable pursuant to Section 5.2,
Takeda shall be responsible for Obsolete Material Costs and Period Costs pursuant to this Agreement. Upon Takeda’s request, Orexigen shall provide to Takeda copies of the underlying invoices justifying the estimated Transfer Price, Obsolete
Material Costs and Period Costs. 
 5.2 Transfer Price. 

5.2.1 Payment. The purchase price charged by Orexigen for costs associated with the Manufacture of the Product ordered by Takeda under
this Agreement shall be the estimated Transfer Price. Orexigen shall determine the estimated Transfer Price in accordance with GAAP or IFRS, as applicable, and based on estimates of commercially reasonable Third Party costs incurred in support of
the manufacturing supply chain. Upon delivery of the Product in accordance with Section 6.1, Orexigen may invoice Takeda the estimated Transfer Price for the type and quantity of the Product delivered. The estimated Transfer Price payable by
Takeda for the Product delivered in each Year will be calculated by tablet on the basis of the number of Batches of the Product forecasted by Takeda in the Forecast submitted in the third Calendar Quarter of the prior Calendar Year. Takeda shall pay
the undisputed amount set forth in each original (i.e., not a copy) invoice delivered by Orexigen under this Section 5.2 within [***] ([***]) days of receipt of such invoice. Any term or condition in an invoice or other document furnished by
Orexigen that is inconsistent with the terms and conditions of this Agreement or in addition to the terms and conditions of this Agreement, shall not be binding on Takeda. 

5.2.2 Reconciliation. 

(a) Within [***] ([***]) days after the end of each Calendar Quarter, Orexigen
shall perform a reconciliation to determine the actual Transfer Price payable for the Product delivered to Takeda in such Calendar Quarter and shall notify Takeda of its findings. If the estimated Transfer Price paid to Orexigen for the Products
delivered in such Calendar Quarter is less than the actual Transfer Price for such Products, Takeda shall pay to Orexigen the difference between such amounts. Conversely, if the estimated Transfer Price payments made to Orexigen by Takeda for the
Products delivered in such Calendar Quarter exceeds the actual Transfer Price for such Products, Orexigen shall, at Takeda’s option, either pay to Takeda the difference between such amounts or credit the difference against subsequent payments
owed by Takeda to Orexigen under this Agreement until such amount has been fully credited to Takeda. 
  

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 (b) Within [***] ([***]) days after the end of each Calendar Year, Orexigen shall perform
a reconciliation to determine the actual Transfer Price payable for the Product delivered to Takeda in such Calendar Year and shall notify Takeda of its findings. If the estimated Transfer Price paid to Orexigen after reconciliation pursuant to this
Section 5.2.2(a) for the Products delivered in such Calendar Year is less than the actual Transfer Price for such Products, Takeda shall pay to Orexigen the difference between such amounts. Conversely, if the estimated Transfer Price payments
made to Orexigen after reconciliation pursuant to this Section 5.2.2(a) by Takeda for the Products delivered in such Calendar Year exceeds the actual Transfer Price for such Products, Orexigen shall, at Takeda’s option, either pay to
Takeda the difference between such amounts or credit the difference against subsequent payments owed by Takeda to Orexigen under this Agreement until such amount has been fully credited to Takeda. 

(c) Any amounts payable by a Party under this Section 5.2.2 shall be paid within [***] ([***]) days of receipt of the invoice by
either Party. 
 5.2.3 Shortfall Credit. Annually, and consistent with the Patheon Agreement, Orexigen will notify Takeda if any
Shortfall (as such term is defined in the Patheon Agreement) credit, prorated by the applicable Capacity Percentage, is owed to Orexigen pursuant to Section 2.2.3 of the Patheon Agreement with respect to the Product delivered to Takeda, and
Orexigen shall apply any such credit, prorated by the applicable Capacity Percentage received from Patheon, against subsequent payments owed by Takeda to Orexigen under this Agreement. 

5.3 Period Costs and Obsolete Material Costs Payments.  

5.3.1 Payment. For Period Costs and Obsolete Material Costs, Orexigen shall provide an original (i.e., not a copy) invoice to Takeda
within [***] ([***]) days after the Effective Date and thereafter on a Calendar Quarter basis and Takeda shall be obligated to pay such original invoice in accordance with Section 5.3.2. Period Costs and Obsolete Material Costs shall be
allocated between the Parties as follows: 
 (i) for Period Costs and Obsolete Material Costs that [***], Takeda shall pay to Orexigen an amount equal to [***]; provided, further, Obsolete Material Costs related to [***] pursuant to the [***] shall be payable by Takeda in accordance with this
Section 5.3.1(i); 
 (ii) for Obsolete Material Costs, other than such costs related to [***], and for Period Costs that [***], Takeda
shall pay to Orexigen (a) an amount equal to [***], and (b) an amount equal to [***]; and 
 (iii) for Period Costs and Obsolete
Material Costs that [***], Orexigen shall bear all such Period Costs and Obsolete Material Costs incurred by Orexigen during the applicable Calendar Quarter; including any Obsolete Material Costs related to [***] pursuant [***]. 

 

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 5.3.2 Additional Payment Terms. Prior to First Commercial Sale, and with respect to each
Calendar Quarter thereafter, Orexigen shall provide Takeda with at least a twelve (12) month forecast of estimated Period Costs. Any term or condition in an invoice or other document furnished by a Party that is inconsistent or in conflict with
the terms and conditions of this Agreement shall not be binding on the Parties. Takeda shall pay the undisputed amounts of Obsolete Material Costs and Period Costs set forth in each written original (i.e., not a copy) invoice delivered by Orexigen
under Section 5.3.1 within [***] ([***]) days of receipt of such original invoice. In the event Orexigen receives any credit from any Third Party Manufacturer due to an annual reconciliation pursuant to the applicable Third Party Manufacturer
Agreement with respect to any payment made by Orexigen to such Third Party Manufacturer and for which Takeda has paid Orexigen under an invoice described above, Takeda may, at its option, credit such amount against subsequent payments owed by Takeda
to Orexigen under this Agreement. 
 5.3.3 Reconciliation. Within [***] ([***]) days after the end of each Calendar Year, Orexigen
shall perform a reconciliation to determine the actual Period Costs and Obsolete Material Costs payable by Takeda determined pursuant to the formulas and allocation set forth in Section 5.3.1 for such Calendar Year and shall notify Takeda in
writing of its findings. If such Period Costs and Obsolete Material Costs paid to Orexigen by Takeda for such Calendar Year are less than the actual Period Costs and Obsolete Material Costs payable by Takeda under this Agreement for such Calendar
Year, Takeda shall pay to Orexigen the difference between such amounts. Conversely, if the Period Costs and Obsolete Material Costs paid to Orexigen by Takeda for such Calendar Year exceed the actual Period Costs and Obsolete Material Costs payable
by Takeda under this Agreement for such Calendar Year, Orexigen shall, at Takeda’s option, either pay to Takeda the difference between such amounts or credit the difference against subsequent payments owed by Takeda to Orexigen under this
Agreement until such amount has been fully credited to Takeda. Any amounts payable by a Party under this Section 5.3.3 shall be paid within [***] ([***]) days after the date on which Orexigen notifies Takeda of the amount of the reconciliation
payment to be paid by a Party hereunder. 
 5.4 Manner of Payment. All payments to be made under this Agreement shall be made in
Dollars by wire transfer of immediately available funds to such U.S. bank account as shall be designated by a Party. Late payments shall bear interest at the rate provided in Section 5.10. 

5.5 Disputed Amounts. In the event that a Party disputes any amounts payable under this Agreement, such dispute shall be resolved
(a) in accordance with Article 8 with respect to non-conforming Product and (b) in accordance with Article 17 with respect to any other dispute. Pending resolution of such disputes, a Party shall pay any amounts (whether under an invoice
or otherwise) that are not in dispute. Upon resolution of any such dispute in favor of a Party, the other Party shall pay all remaining amounts owing under this Agreement within [***] ([***])
Business Days after such resolution. 
 5.6 Price Increase Resulting from Assignment of Patheon Agreement. In the event that the cost
of the Manufacture of the Product [***] or pursuant to Section 4.2 of the Collaboration Agreement, [***]. If the Manufacturing Responsibility Transition Plan results in [***]. 

 

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 5.7 Taxes. 

5.7.1 Cooperation and Coordination. The Parties acknowledge and agree that it is their mutual objective and intent to appropriately
calculate and minimize, to the extent feasible and legal, taxes payable with respect to any payments under this Agreement and that they shall use Commercially Reasonable Efforts to cooperate and coordinate with each other to achieve such objective.
Without limiting the generality of the foregoing, the Parties shall use Commercially Reasonable Efforts to cooperate and coordinate with each other in completing and filing documents required under the provisions of any applicable Laws (including
treaties) in connection with the making of any required tax payment or withholding payment, in connection with a claim of exemption from, or entitlement to, a reduced or zero rate of withholding or in connection with any claim to a refund of or
credit for any such payment. 
 5.7.2 Payment of Tax. All payments made by Takeda to Orexigen pursuant to this Agreement shall be
made without reduction for any taxes, charges or remittance fees. If applicable Laws require that taxes be deducted and withheld from a payment made pursuant to this Agreement, the remitting Party shall (a) deduct those taxes from the payment;
(b) pay the taxes to the proper taxing authority; and (c) send evidence of the obligation together with proof of payment to the other Party promptly following that payment. Orexigen shall pay any and all taxes that are due and payable by
Orexigen on payments made to the Orexigen under this Agreement. Takeda shall be responsible for the payment of any taxes (including VAT, sales and use taxes and excluding income or franchise taxes), customs and excise duties incurred by Takeda with
respect to the sale or importation of the Product by Takeda. 
 5.7.3 Tax Residence Certificate. A Party (including any entity to
which this Agreement may be assigned, as permitted under Section 14.5 of the Collaboration Agreement) receiving a payment pursuant to this Agreement shall provide the remitting Party appropriate certification from relevant governmental
authorities that such Party is a tax resident of that jurisdiction, if such receiving Party wishes to claim the benefits of an income tax treaty to which that jurisdiction is a party. Upon the receipt thereof, any deduction and withholding of taxes
shall be made at the appropriate treaty tax rate. 
 5.7.4 Assessment. Either Party may, at its own expense, protest any assessment,
proposed assessment, or other claim by any governmental authority for any taxes, interest or penalties or seek a refund of such amounts paid if permitted to do so by applicable Laws. The Parties shall cooperate with each other in any protest or
refund by providing records and such additional information as may reasonably be necessary for a Party to pursue such protest or refund. 

5.8 Records. Orexigen shall keep, and, subject to the terms of the applicable agreement between Orexigen and a Third Party
Manufacturer, shall cause each of its Third Party Manufacturers to keep, full, true, and accurate books of accounting containing all particulars that may be necessary for the purpose of calculating the Manufacturing Payments payable to Orexigen

  
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in accordance with GAAP or IFRS, as applicable, under this Article 5, for a period of [***] ([***]) years after the Calendar Year in which the
Product was delivered, in sufficient detail to permit Takeda to confirm the accuracy of any Manufacturing Payments paid hereunder. 
 5.9
Takeda Audit Rights. During the Term and for a period of [***] ([***]) years thereafter, at the request and expense of Takeda, subject to the terms of the applicable agreement between Orexigen and a Third Party Manufacturer, Orexigen shall
permit an independent, certified public accountant of nationally recognized standing appointed by Takeda, and reasonably acceptable to Orexigen, during normal business hours and upon not less than [***] ([***]) Business Days prior notice and in
compliance with the audit limitations of any Third Party Manufacture Agreement, but in no case more than [***] per Calendar Year, to examine such records of Orexigen as may be necessary for the sole purpose of verifying the calculation and reporting
of the Manufacturing Payments for any period within the preceding [***] ([***]) Calendar Years. Results of any such examination shall be made available to both Takeda and Orexigen. Such accountant shall disclose to Takeda only the amounts which the
accountant believes to be due and payable hereunder to Takeda or due and payable to Orexigen, and any information reasonably necessary for Takeda to evaluate any discrepancy from the amount paid and the amount due, and shall disclose no other
information revealed in such audit. Any and all records examined by such accountant shall be deemed Orexigen’s Confidential Information, which may not be disclosed by such accountant to any Third Party. If, as a result of any inspection of the
books and records of Orexigen, it is shown that payments made by Takeda under this Agreement were more than the amount that should have been made, then Orexigen shall promptly refund any amount required to eliminate any discrepancy revealed by said
inspection, such refund to occur in any event within [***] ([***]) days after notice thereof. If, as a result of any inspection of the books and records of Orexigen, it is shown that payments made by Takeda under this Agreement were less than the
amount that should have been made, then Takeda shall promptly pay to Orexigen the difference between the amount actually paid and the amount that should have been paid within [***] ([***]) days after the conclusion of such inspection. Takeda shall
pay for such audits, except that in the event that Orexigen overcharged the Manufacturing Payments by more than [***] percent ([***]%) during the period in question as per the audit, Orexigen shall pay the reasonable costs of the audit. Orexigen
shall use Commercially Reasonable Efforts to obtain the consent of any Third Party Manufacturer required (a) for such accountant to fully and accurately perform the audits described in this Section 5.9 and (b) for full disclosure to
Takeda of the information permitted to be disclosed by such accountant with respect to the results of such audits. 
 5.10 Interest
Due. Without limiting any other rights or remedies available to Orexigen, Takeda shall pay Orexigen interest on any payments that are not paid on or before the date such payments are due under this Agreement at a rate equal to the lesser of
(a) [***] percent ([***]%) per month or (b) the maximum applicable legal rate, calculated on the total number of days payment is delinquent. 

 

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 ARTICLE 6 

DELIVERY, TITLE, AND RISK OF LOSS 

6.1 Delivery. 

(a) Except for Delivery of Launch Supplies as set forth in Section 3.4, the Product will be delivered to Takeda’s designated
location Ex Works (Incoterms 2010) [***]. Title and risk of loss or damage to the Products will remain with Orexigen or its Third Party Manufacturer until Orexigen or its Third Party Manufacturer loads the Products onto the carrier’s vehicle
for shipment at the manufacturing site, at which time title and risk of loss or damage will transfer to Takeda. Takeda shall be responsible for clearing shipments for export, if applicable. The Product shall be packed and transported in accordance
with the Specifications. 
 (b) For determination of meeting the Firm Order delivery date, delivery of the Product shall be deemed to
occur [***]. Orexigen may invoice the estimated Transfer Price upon delivery of the Product; provided, however, Orexigen shall have the right to deliver the Product and invoice the estimated Transfer Price only after (i) the delivery date
specified in the Purchase Order for such Product; (ii) [***], and (iii) [***]. Orexigen agrees that it will [***]. Notwithstanding anything to the contrary in the foregoing, (x) the Parties shall [***], (y) [***], and
(z) [***]. In the event of an unreasonable delay, Orexigen may (1) invoice Takeda for the price of such Product as Period Costs allocated in accordance with Section 5.3.1(i), and (2) if the Product is later determined acceptable,
within [***] ([***]) days after receipt of an invoice therefor, Orexigen will [***] invoice Takeda for the Product as part of the Transfer Price pursuant to Section 5.2. 

6.2 Notice of Potential Failure to Supply. Orexigen shall notify Takeda as soon as possible of any circumstances that may prevent
Orexigen from delivering the quantity of Batches of the Product ordered by Takeda or meeting the delivery dates(s) set forth in Takeda’s Firm Orders. Such notice shall in no way be deemed to excuse any subsequent failure to perform. If the
actual tablet yield for a Batch is less than [***] percent ([***]%) of the Target Yield (as such term is defined in the Patheon Agreement), Orexigen will notify Takeda as soon as possible. If additional Batches are required because of such shortfall
between the Target Yield and the actual yield, upon Takeda’s request, Orexigen will use Commercially Reasonable Efforts to produce additional Batches as ordered by Takeda to supplement the delivered quantity. Subject to Section 3.6.1(iii),
delivery of one or more Batches with an Actual Annual Yield below the Target Yield (as such term is defined in the Patheon Agreement) shall not be considered a failure to supply by Orexigen. 

 

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 ARTICLE 7 

SPECIFICATIONS, FORMULATIONS, LABELING, STABILITY AND 

ANTI-COUNTERFEIT MEASURES 

7.1 Specifications. Orexigen shall deliver Product that is Manufactured in accordance with the Specifications, cGMPs and Laws. Release
limits for the Product shall be set by the Parties to be consistent with the approved shelf-life and Specifications to ensure that the Product meets the Specifications throughout the approved shelf-life of the Product. 

7.2 Release Testing. Orexigen or its Third Party Manufacturer shall test each Batch of the Product in accordance with the
Specifications prior to shipment of the Product to Takeda. Takeda or its Affiliates shall conduct the applicable incoming inspections (as set forth in Quality Agreement) of the Product and as required by Laws and applicable Regulatory Authorities in
the Territory. 
 7.3 Changes to Specifications.  

7.3.1 Orexigen-Initiated Changes. Orexigen shall notify Takeda in writing before making any change to the Specifications, including any
change proposed by a Third Party Manufacturer or a Regulatory Authority. Any such change shall be subject to Takeda’s prior written approval, not to be unreasonably withheld, conditioned, or delayed. If, in Takeda’s reasonable
determination, the change will require an amendment or supplement to the Regulatory Approval for the Product, Orexigen shall not implement the change prior to receipt of written approval of such change by Takeda. Except as included in the Transfer
Price or as otherwise agreed to by the Parties, the costs to implement such changes shall be Period Costs and allocated in accordance with Section 5.3.1(ii). 

7.3.2 Takeda-Initiated Changes and Changes Required by Law. Takeda shall notify Orexigen in writing if it desires to make any change to
the Specifications. Each Party shall notify the other Party in writing if it becomes aware of any changes to the Specifications that are required by Laws. In each case, Orexigen shall use Commercially Reasonable Efforts to implement any such changes
and, if applicable, have such changes implemented by the applicable Third Party Manufacturer. To the extent Orexigen incurs Third Party costs itself or under a Third Party Manufacturer Agreement to implement such changes, such costs shall be paid
solely by Takeda; provided that, prior to undertaking such changes, Orexigen shall provide Takeda with an estimate of such Third Party costs to implement such changes and, for changes to the Specifications that are desired by Takeda but not required
by Laws, obtain Takeda’s written approval to proceed. To clarify, Third Party costs incurred by Orexigen or its Third Party Manufacturers pursuant to this Section 7.3.2 shall be Period Costs and allocated in accordance with
Section 5.3.1(i). 
 7.3.3 No Amendment Required. Upon mutual written agreement of the Parties with respect to any revised
Specifications, or in the event the Specifications are updated in the NDA for the Product, such revised Specifications shall be attached hereto and no formal amendment of this Agreement shall be necessary for such revised Specifications to become
effective. 

  
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 7.4 Product Stability. Takeda shall notify Orexigen of its annual commitments made to
Regulatory Authorities with respect to ongoing stability testing of the Product, such notice to be provided to Orexigen not later than [***] ([***]) days prior to Takeda’s submission of such
commitments to any such Regulatory Authority. Orexigen shall put the Product lots on stability testing as required by such commitments. In addition, from time to time, Takeda may request that Orexigen conduct additional studies designed to test the
stability of the Product. With respect to such other stability studies requested by Takeda, Orexigen shall conduct such studies, and, where the assistance of Third Party Manufacturer(s) is required, shall use Commercially Reasonable Efforts to
implement such studies at Third Party Manufacturer(s)’ site(s). Any costs incurred by Orexigen and its Third Party Manufacturer in connection with stability testing of Product solely for the Territory shall be Period Costs and allocated in
accordance with Section 5.3.1(i). Any costs incurred by Orexigen and its Third Party Manufacturer in connection with stability testing of Product solely for the benefit of use of the Product outside the Territory shall be shall be Period Costs
and allocated in accordance with Section 5.3.1(iii). Any costs in connection with stability testing that benefits the Product for use in the Territory and for use outside of the Territory shall be Period Costs and allocated in accordance with
Section 5.3.1(ii). 
 7.5 Anti-Counterfeit Measures. From time to time Takeda may request that Orexigen undertake reasonable
anti-counterfeit measures to protect the integrity of the Product. Orexigen shall assist in implementing such measures and, where the assistance of Third Party Manufacturer(s) is required, shall use Commercially Reasonable Efforts to implement such
measures at Third Party Manufacturer(s). The costs incurred by the Parties in the implementation of such measures shall be Period Costs and allocated in accordance with Section 5.3.1(i). 

ARTICLE 8 

NON-CONFORMING PRODUCT 

8.1 Acceptance and Rejection. Takeda, its Affiliates and/or its or their subcontractors will visually inspect each shipment of the
Product upon receipt thereof. Takeda may reject and return any part of a shipment of the Product or the entire shipment of the Product if any part does not conform to the Specifications, cGMPs or Laws, based on the acceptance criteria set forth in
the Quality Agreement, by giving written notice to Orexigen within [***] ([***]) days after receipt of such shipment. Such notice shall identify the reasons for Takeda’s rejection of the shipment. Subject to Section 8.2, if Orexigen does
not receive a notice of rejection within such [***] ([***]) day period, Takeda shall be deemed to have accepted such shipment of the Product. 

8.2 Latent Defects. If, after accepting a shipment of the Product, Takeda subsequently discovers an alleged Product defect not
reasonably discoverable by visual inspection during the acceptance period set forth in Section 8.1, Takeda may revoke its acceptance and reject such shipment by giving written notice and disclosing the nature of such defect to Orexigen within
[***] ([***]) days after discovering such defect but not after the expiry date of the Product. 
  

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 8.3 Evaluation of Defect. After notice of rejection pursuant to Section 8.1 or 8.2 is
received by Orexigen, Orexigen shall promptly notify Patheon of such rejection in accordance with Article 6 of the Patheon Agreement. Orexigen shall give Takeda a reasonable opportunity to review and comment on such notice before it is delivered to
Patheon. Orexigen shall notify Takeda within [***] ([***]) Business Days after delivery of such notice to Patheon whether Patheon disagrees with the reasons for Takeda’s rejection of the Product. If Patheon notifies Orexigen that it disagrees
with the reasons for Takeda’s rejection, Orexigen shall, unless waived in writing by Takeda, have the issue determined by an independent laboratory in accordance with Article 6 of the Patheon Agreement. Orexigen shall cooperate with Patheon to
cause the independent laboratory to conduct its evaluation as promptly as reasonably practicable. Orexigen shall work closely with Takeda in preparing all statements, reports, analyses and other materials submitted to the independent laboratory for
evaluation. The evaluation of the independent laboratory will be binding on Orexigen and Takeda. If the evaluation certifies that the Product deviates from the Specifications, cGMPs or Laws, Takeda may reject the Product as provided hereunder, and
as between Orexigen and Takeda, Orexigen shall be responsible for the cost of the evaluation to the extent Orexigen recovers such costs from Patheon. If the evaluation does not certify any deviation of the Product, then Takeda will be deemed to have
accepted such Product, which will be deemed to be conforming on the date the evaluation is delivered by the independent laboratory, and Takeda will reimburse Orexigen for the costs of such evaluation; provided, however, that Takeda may determine, in
its sole discretion, not to use such Product. With respect to Products which Patheon agrees are deficient in accordance with Takeda’s notice of rejection, or which are otherwise found to be deficient by the independent laboratory, Orexigen
shall, at Takeda’s option, either refund to Takeda the Transfer Price paid by Takeda for such Products or replace such Products at no charge solely to the extent Orexigen has been reimbursed by Patheon or Patheon has provided such replacement
Product at no charge to Orexigen. The Parties shall evaluate process issues and other reasons for non-compliance of the Product with the Specifications, cGMPs or Laws. 

8.4 Disposition of Rejected Product. Takeda may not destroy any damaged, defective, returned or recalled Product for which it intends
to send Orexigen a notice of rejection without Orexigen’s prior written authorization to do so, such authorization not to be unreasonably withheld, conditioned or delayed. Alternatively, Orexigen may instruct Takeda to return the defective
Product to Orexigen or to Patheon. Orexigen shall bear the costs of shipping, storage and disposition for any damaged, defective, returned or recalled Product for which it bears responsibility under this Article 8 and will promptly reimburse Takeda
for any such costs which may be incurred directly by Takeda solely to the extent Orexigen has been reimbursed by Patheon for such costs. Notwithstanding the foregoing, Takeda will have the right at all times to retain a reasonable sample of such
Product for its own archival purposes. 
 ARTICLE 9 

QUALITY ASSURANCE 
 9.1
Quality Agreement. The Parties will promptly enter into a quality agreement governing the quality assurance obligations of the Parties with respect to the Manufacture and supply of the Product (as it may be amended or modified from time to time
according to its terms, the “Quality Agreement”). In the event of a discrepancy between the provisions of the Quality Agreement and the provisions of this Agreement, the provisions of the Quality Agreement shall control with respect
to terms governing quality of the Product and the provisions of this Agreement shall control with respect to all other terms. 
  

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 9.2 Quality Control and Quality Assurance. 

9.2.1 Quality Control. Orexigen shall ensure that all Product supplied to Takeda hereunder is Manufactured, stored, tested,
transported, disposed of and otherwise handled in accordance with the Specifications, cGMPs, Laws, and the Quality Agreement. Orexigen shall, and shall ensure that its Third Party Manufacturers, maintain and follow a quality control and quality
assurance testing program consistent with the Quality Agreement. 
 9.2.2 Quality Documentation to Accompany Each Product Shipment.
Each time Orexigen or a Third Party Manufacturer ships the Product to Takeda, it will provide Takeda with the documentation specified herein and in the Quality Agreement. 

9.2.3 Validation Activities. At Takeda’s request and expense, Orexigen shall use Commercially Reasonable Efforts to complete
requested validation activities to support Manufacturing for the Territory and the cost of such activities shall be Period Costs and allocated in accordance with Section 5.3.1. 

9.3 Inspections by and Communications from Regulatory Authorities. 

9.3.1 Right to Inspect. Orexigen shall make, and shall ensure that its Third Party Manufacturers make, its internal practices, books
and records relating to the Manufacture of the Product available and allow access to all facilities used for the Manufacture of the Product to any Regulatory Authority having jurisdiction over the Manufacture of the Products for the purposes of
determining Orexigen’s and/or its Third Party Manufacturers’ compliance with cGMPs and Laws, subject to the terms of the applicable Third Party Manufacturer Agreement. Orexigen shall notify Takeda of Regulatory Authority inspections
related to the Manufacture of the Product by the process outlined in the Quality Agreement. 
 9.3.2 Notice of Actions. Orexigen
shall promptly inform Takeda if Orexigen becomes aware of any action taken by a Regulatory Authority against Orexigen or any Third Party Manufacturer or any of their officers and/or employees that could reasonably be expected to materially impact
the Product or Orexigen’s ability to supply the Product hereunder, and shall provide a copy of such notice to Takeda within [***] after Orexigen has actual knowledge that such action has been
taken. 
 9.3.3 Cooperation. Orexigen shall cooperate with Takeda and with Regulatory Authorities in response to any communication,
whether oral or written, from a Regulatory Authority to Takeda or Orexigen or any Third Party engaged by either Party, with regard to any activity relating to the Manufacture of the Product, including validation, prior to the Effective Date and
throughout the Term. 
  

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 Page 21 of 35 

 9.4 Quality Audits. Prior to shipment of Launch Supplies, and thereafter biennially or as
otherwise mutually agreed by the Parties, subject to the terms of the applicable Third Party Manufacturer Agreement, Orexigen shall, conduct and lead cGMP audits of the Third Party Manufacturers and, if applicable, exercise such other audit rights
that Orexigen may have under such Third Party Manufacturer Agreements, and shall disclose to Takeda the complete results of such audits, subject to the terms of the applicable Third Party Manufacturer Agreement. Takeda may request “for
cause” audits in addition to the regularly scheduled audits. Unless prohibited by such Third Party Manufacturer Agreements, Takeda shall be permitted to have a maximum of [***] ([***]) representatives present at all times during the audit,
under the direction of Orexigen. If requested by Takeda, Orexigen shall use Commercially Reasonable Efforts to obtain permission from a Third Party Manufacturer for Takeda’s representatives to be present during such audits and for Takeda to
receive a copy of the results of such audits. Orexigen shall use Commercially Reasonable Efforts to cause such Third Party Manufacturers to promptly correct any deficiencies or other adverse findings and shall keep Takeda apprised of the same.
Orexigen shall provide Takeda with copies of all corrective action plans addressing any audit findings and shall consider in good faith any comments that Takeda provides to Orexigen with respect to such plan. 

9.5 Licenses, Permits. Each Party shall maintain, to the extent required by Laws in connection with such Party’s performance of
its obligations hereunder, and shall require its Third Party Manufacturers to maintain during the Term, all government permits, including health, safety and environmental permits, necessary for the Manufacture of the Product pursuant to this
Agreement. 
 9.6 Documentation and Samples. Orexigen shall maintain, to the extent required by Laws in connection with
Orexigen’s performance of its obligations hereunder, and shall require its Third Party Manufacturers to maintain, in accordance with cGMPs and other Laws, complete, accurate and authentic accounts, notes, data and records pertaining to the
Manufacture and testing of the Product. Orexigen shall make such records available to Takeda for inspection promptly following Takeda’s written request, subject to the terms of the applicable Third Party Manufacturer Agreement. Orexigen shall
retain (itself or through its Third Party Manufacturers) samples from each Batch supplied under this Agreement after Takeda’s acceptance of such Batch under Article 8. Orexigen shall, at Takeda’s expense, retain such records or samples (as
applicable) for a period of at least [***] ([***]) years following the date of expiration of such samples, or longer if required by Laws, and upon Takeda’s written request shall make available to Takeda copies of such records and portions of
such samples, subject to the terms of the applicable Third Party Manufacturer Agreements. Takeda shall reimburse Orexigen for reasonable out-of-pocket costs incurred to retain and make available such records and samples. 

9.7 Product Complaints. The Quality Agreement shall set forth the Product complaint process. However, it is understood and agreed that
(i) Takeda shall have the sole right and responsibility for receiving, evaluating, reporting and responding to any non-medical complaints related to the Product sold by Takeda or its Affiliates or permitted Sublicensees in the Territory to the
applicable Regulatory Authorities; (ii) Orexigen shall forward all Product complaints received by Orexigen within the time period specified in the Quality Agreement, but in any event, promptly after receipt; and (iii) Orexigen will provide
to Takeda all reasonable assistance in complying with such reporting requirements, including investigating complaints relating to the Product through the review of all Manufacturing related activities. Each Party shall 

 

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designate a representative who will handle Product complaint activities for such Party and coordinate such activities with the other Party. Matters affecting Product safety, including lack of
efficacy, shall be handled in accordance with the terms of the Collaboration Agreement and the Pharmacovigilance Agreement. 
 ARTICLE 10

 PRODUCT RECALL 

10.1 Conduct of Recall. Recalls shall be conducted in accordance with Section 3.7 of the Collaboration Agreement.  

10.2 Responsibility for Recall Costs. “Recall Costs” shall mean all reasonable direct, documented out-of-pocket costs
associated with a Recall including the expenses of notifications and investigations, and destruction or return of the Product subject to the Recall and any costs associated with the distribution of the replacement Product. Recall Costs will be
(a) the responsibility of [***], or (b) [***]; provided, however, that [***]. 

10.3 Remedies from Patheon for Recalled Products. Orexigen shall use Commercially Reasonable Efforts to obtain from Patheon either a
refund of the invoice price for recalled Products or conforming Products to replace the recalled Products if Orexigen is entitled to such remedies under the terms of Section 6.3(b) (or any successor provision) of the Patheon Agreement, and
Orexigen shall, to the extent that it obtains any such remedy, pay over to Takeda the amounts recovered from Patheon or, if requested by Takeda, instead provide to Takeda replacement Products to the extent Orexigen is able to obtain such replacement
Products from Patheon pursuant to Section 6.3(b)(iii) (or any successor provision) of the Patheon Agreement; provided that Takeda shall reimburse Orexigen any costs incurred by Orexigen with respect to recalled or replacement Products pursuant
to Section 10.2. 
 10.4 Notice. Each Party shall notify the other Party promptly, but in any event, within [***] ([***])
Business Days if it becomes aware that any product (other than the Product) Manufactured at any Third Party Manufacturer is recalled or withdrawn from the market due to causes which may have an adverse effect on the Product (including any decision
to refrain from selling or shipping quantities of any such product). Each Party shall provide the other Party with any information it may reasonably request to evaluate the effect of such recall or withdrawal on the Product. 

ARTICLE 11 

REPRESENTATIONS AND WARRANTIES; 

DISCLAIMERS OF LIABILITY; AND LIMITATION OF LIABILITY 

11.1 Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party, as of the Effective
Date, that: 
 11.1.1 such Party is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; 
  

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 11.1.2 execution of this Agreement and the performance by such Party of its obligations
hereunder have been duly authorized; 
 11.1.3 this Agreement has been duly executed and delivered on behalf of such Party, and
constitutes a legal, valid, binding obligation, enforceable against it in accordance with the terms hereof; 
 11.1.4 the performance
of this Agreement by it does not create a material breach or default under any other agreement to which it is a party; 
 11.1.5 the
execution, delivery and performance of this Agreement by such Party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor violate any Law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over such Party 
 11.1.6 no government authorization,
consent, approval, license, exemption of or filing or registration with any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any Laws currently in effect, is or will be necessary for,
or in connection with, the transaction contemplated by this Agreement or any other agreement or instrument executed in connection herewith, or for the performance by it of its obligations under this Agreement except as may be required to obtain
clearance under the HSR Act; and 
 11.1.7 neither it, nor any of its employees, officers, subcontractors, or consultants who have
rendered services relating to the Products: (a) has ever been debarred or is subject to debarment or convicted of a crime for which an entity or person could be debarred by the FDA under 21 U.S.C. Section 335a or (b) has ever been
under indictment for a crime for which a person or entity could be so debarred. 
 11.2 Additional Representations and Warranties of
Orexigen. As of the Effective Date and throughout the Term, Orexigen represents, warrants and covenants the following, as applicable, to Takeda that: 

11.2.1 the Product shall, at the time of delivery to Takeda hereunder meet the Specifications; 

11.2.2 the Product shall be Manufactured and tested in accordance with Laws and cGMPs; 

11.2.3 the Product shall not be adulterated or misbranded within the meaning of the United States Food, Drug and Cosmetic Act, 21
U.S.C. Section 301c et.seq. or other Laws; 

  
 Page 24 of 35 

 11.2.4 it has and will maintain, and its Third Party Manufacturers have and will maintain,
the expertise with respect to personnel and equipment necessary to fulfill the obligations established hereunder; 
 11.2.5 it has
obtained, or will obtain, and its Third Party Manufacturers have obtained, or will obtain, all requisite material licenses, authorizations and approvals required by any Regulatory Authorities to Manufacture the Product; 

11.2.6 each Third Party Manufacturer Agreement contains provisions requiring all facilities used by such Third Party Manufacturer in
the Manufacture of the Product, including the Manufacture of the Licensed Compounds, to be currently, and at the time each Batch is produced, qualified in accordance with Laws, including cGMPs; 

11.2.7 During the [***] ([***]) year period commencing on the first date of Manufacture of the Product, all Product (other than Launch
Supplies) Manufactured and delivered under this Agreement by Orexigen shall, at the time of delivery to Takeda, have [***] for which no more than (a) [***] ([***]) months shall have elapsed since the date of [***] or (b) [***] ([***])
months have elapsed since the date of [***], unless, in each of (a) and (b), otherwise agreed to in writing by the Parties; provided, that, such [***] ([***]) month period and [***] ([***]) month period, respectively, shall be extended by one
(1) day for each day of any dispute resolution process with respect to such Product. Notwithstanding anything to the contrary in this Agreement, the first [***] ([***]) Batches of the Product delivered to Takeda following Delivery of Launch
Supplies shall, at the time of delivery to Takeda, have [***] for which no more than [***] ([***]) months shall have elapsed since the date of Manufacture. For clarity, if Takeda extends [***] [***] following Regulatory Approval, the Parties shall
negotiate in good faith to determine the [***] for the Product upon delivery to Takeda. After the initial [***] ([***]) year period of Manufacture of the Product, unless otherwise mutually agreed to by the Parties, all Product Manufactured and
delivered under this Agreement by Orexigen shall, at the time of [***], have [***] for which no more than [***] ([***]) months shall have elapsed since the date of [***], unless otherwise agreed to in writing by the Parties; provided, that, such
[***] ([***]) month period shall be extended by one (1) day for each day of any dispute resolution process with respect to such Product; 

11.2.8 it will not in the performance of its obligations under this Agreement use the services of any person (including any Third Party
Manufacturer) that, to its Knowledge, is debarred or suspended under 21 USC §335(a) or (b); and 
 11.2.9 as of the
Effective Date, it does not currently have, and covenants that it will not hire, as an officer or an employee any Person who, to its Knowledge, has been convicted of a felony under the laws of the U.S. for conduct relating to the regulation of any
drug product under the Federal Food Drug and Cosmetic Act, as amended. 
  

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 Page 25 of 35 

 11.3 Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE COLLABORATION
AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ANY EXPRESS OR IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE
PRODUCT. 
 11.4 Limitation of Liability. EXCEPT FOR A BREACH OF ARTICLE 15, OR FOR CLAIMS OF A THIRD PARTY THAT ARE SUBJECT
TO INDEMNIFICATION UNDER ARTICLE 12, NEITHER PARTY SHALL BE LIABLE TO THE OTHER WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT, WHETHER UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY, FOR ANY INCIDENTAL,
INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, MULTIPLE, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS, LOSS OF USE, DAMAGE TO GOODWILL, OR LOSS OF BUSINESS). 

ARTICLE 12 

INDEMNIFICATION AND INSURANCE 

12.1 Indemnity. The indemnification rights and obligations of the Parties set forth in Article 11 of the Collaboration Agreement shall
apply to this Agreement. 
 12.2 Insurance. The insurance obligations of the Parties set forth in Article 11 of the Collaboration
Agreement shall apply to this Agreement. 
 ARTICLE 13 

TERM AND TERMINATION 

13.1 Term. This Agreement shall become effective as of the Effective Date and shall continue in full force and effect until the
expiration or termination of the Collaboration Agreement unless terminated earlier pursuant to this Article 13 (the “Term”). 

13.2 Termination Pursuant to the Completion of a Manufacturing Responsibility Transition Plan or Assignment of Third Party Manufacturing
Agreements. This Agreement shall automatically, and without any further action by either Party, terminate upon the completion of (a) the transfer of the right and responsibility to Manufacture or have Manufactured the Product for the
Territory to Takeda pursuant to Section 4.2 of the Collaboration Agreement, and (b) if elected by Takeda, the assignment to Takeda of all of the Third Party Manufacturer Agreements required for Manufacture of the Product in the Territory
as set forth in Section 3.6.1(b). 
 ARTICLE 14 

CONSEQUENCES OF TERMINATION 

14.1 Continuation of Supply. If the Term ends upon the expiration of the Collaboration Agreement, then, at Takeda’s election,
Orexigen shall (a) continue to supply Takeda’s requirements for the Product in the Territory in accordance with the terms of this Agreement for a period of up to [***] ([***]) months
following such expiration or (b) assign to 
  

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 Page 26 of 35 

 
Takeda those Third Party Manufacturer Agreements requested by Takeda, to the extent permitted under the applicable Third Party Manufacturer Agreement and to the extent required for the
Manufacture of the Product for the Territory. At Takeda’s request, Orexigen shall use Commercially Reasonable Efforts to obtain from the applicable Third Party Manufacturer any consent required for such assignment, at Takeda’s cost. If the
Term ends upon the termination of the Collaboration Agreement, Orexigen shall not have continuing supply responsibilities hereunder (except as set forth in Section 14.2). 

14.2 In-Process Product. Promptly after expiration of this Agreement or termination of this Agreement as a result of termination of the
Collaboration Agreement by Takeda pursuant to Section 12.2.1, 12.4, or 12.5 of the Collaboration Agreement, if requested by Takeda, Orexigen will complete work on all Products that were in process for the Territory at the time of expiration or
termination and, following completion of such work, deliver such Products to Takeda. Takeda will pay Orexigen the Transfer Price determined pursuant to Section 5.2 for all such Products supplied by Orexigen to Takeda, and any unpaid Obsolete
Material Costs and Period Costs and any other costs set forth in this Agreement associated with such Products. For any remaining materials or if Takeda elects not to complete production of in-process Products, Takeda will pay for any raw materials
and/or work in process ordered for but not consumed by the completion of in-process Product and any destruction charges. 
 14.3 Accrued
Obligations. Termination or expiration of this Agreement shall not relieve either Party of any accrued obligations hereunder. 
 14.4
Without Prejudice. Termination of this Agreement, due to the fault of either Party, shall be without prejudice to any other rights or remedies then or thereafter available to either Party under this Agreement or otherwise. 

14.5 Survival. The following provisions shall survive termination or expiration of this Agreement in its entirety, and, any other
provisions, which by their terms or by the context thereof, are intended to survive such expiration or termination, shall also survive: Article 1 (Definitions); Article 5 (Purchase Price, Invoicing and Payment); Article 8 (Non-Conforming Product);
Article 10 (Product Recall); Article 12 (Indemnification and Insurance); Article 14 (Consequences of Termination), as applicable; Article 15 (Confidentiality); Article 16 (Miscellaneous); and Article 17 (Dispute Resolution), and Section 9.6;
Section 11.3; and Section 11.4. 
 ARTICLE 15 

CONFIDENTIALITY 
 The
provisions of Article 10 of the Collaboration Agreement shall apply to the Confidential Information of a Party disclosed to the other Party in connection with the activities under this Agreement. 

  
 Page 27 of 35 

 ARTICLE 16 

MISCELLANEOUS 
 16.1
Miscellaneous. The rights and obligations of the Parties set forth in Sections 14.1 through 14.9 and 14.11 through 14.14 of the Collaboration Agreement shall apply to this Agreement. 

16.2 Government Subcontracts.  

16.2.1 Orexigen represents and warrants that it will comply with all applicable laws throughout the term of this Agreement, including
providing all required written certifications, representations, and disclosures. Specifically, Orexigen represents and warrants that it will comply, [***], with applicable requirements of the
following Federal Acquisition Regulation (“FAR”) clauses, which are hereby incorporated by reference and made a part of this Agreement as if fully set forth herein: (i) FAR 52.203-13, Contractor Code of Business Ethics and
Conduct (Apr. 2010); (ii) FAR 52.219-8, Utilization of Small Business Concerns (Dec. 2010) (15 U.S.C. § 637(d)(2) and (3)); (iii) FAR 52.222-26, Equal Opportunity (Mar. 2007) (Executive Order 11246); (iv) FAR 52.222-35, Equal
Opportunity for Veterans (Sep. 2010) (38 U.S.C. § 4212); (v) FAR 52.222-36, Affirmative Action for Workers with Disabilities (Oct. 2010) (29 U.S.C. § 793); (vi) FAR 52.222-40, Notification of Employee Rights Under the National
Labor Relations Act (Dec. 2010) (E.O. 13496); (vii) FAR 52.222-50 Combating Trafficking in Persons (Feb. 2009) (22 U.S.C. 7104(g)) and (viii) FAR 52.247-64, Preference for Privately Owned U.S.-Flag Commercial Vessels (Feb 2006). 

16.2.2 Takeda and Orexigen shall abide by the requirements of 41 CFR §§ 60-1.4(a), 60-300.5(a) and 60-741.5(a). These
regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, or
national origin. Moreover, these regulations require that covered prime contractors and subcontractors, such as Takeda and Orexigen take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex,
national origin, protected veteran status or disability. 
 16.3 No Government Contracting Debarment. BY ACCEPTANCE OF THIS
AGREEMENT, OREXIGEN HEREBY CERTIFIES THAT NEITHER OREXIGEN NOR ANY OF OREXIGEN’S PRINCIPALS IS PRESENTLY DEBARRED, SUSPENDED, PROPOSED FOR DEBARMENT, DECLARED INELIGIBLE OR VOLUNTARILY EXCLUDED FOR THE AWARD OF CONTRACTS BY ANY U.S. FEDERAL
AGENCY. 
 16.4 Entire Agreement. This Agreement, including the attached exhibits, and the Collaboration Agreement (excluding Exhibit
4.1 of the Collaboration Agreement) constitute the entire agreement between the Parties as to the subject matter of this Agreement, and supersedes and merges all prior and contemporaneous negotiations, representations, agreements and understandings
regarding the same. Exhibit 4.1 and Section 4.3 of the Collaboration Agreement are expressly superseded by this Agreement, except with respect to references in the Collaboration 

 

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 Page 28 of 35 

 
Agreement (other than in Exhibit 4.1 of the Collaboration Agreement) to: (i) Exhibit 4.1 of the Collaboration Agreement, including in the paragraph at the end of Section 7.2.1 of the
Collaboration Agreement, and (ii) Section 4.3 of the Collaboration Agreement. Sections 4.2, 4.3, 4.4 and 4.5 expressly amend Orexigen’s final decision-making authority as provided in Section 5.7.3(b)(ii) of the Collaboration
Agreement. To the extent there is a conflict between this Agreement and the Collaboration Agreement other than as set forth in this Section 16.4, the Collaboration Agreement shall control. 

16.5 Construction. Except where expressly stated otherwise in this Agreement, the following rules of interpretation apply to this
Agreement: (a) “include,” “includes” and “including” are not limiting and shall be deemed to be followed by “without limitation”; (b) definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms; (c) references to a statute mean such statute as from time to time amended, modified or supplemented; (d) references to a Person are also to its permitted successors and assigns;
(e) captions, the plain meaning of defined terms to the extent different from the definitions provided in Article 1, and other headings to this Agreement are for convenience only, and shall have no force or effect in construing or interpreting
any of the provisions of this Agreement or any other legal effect; (f) references to “Article”, “Section”, or “Exhibit” refer to an Article or Section of, or an Exhibit to, this Agreement, unless otherwise
indicated; (g) the word “will” shall be construed to have the same meaning and effect as the word “shall” and vice versa; (h) the word “or” has, except where otherwise indicated, the inclusive meaning
represented by the phrase “and/or”; and (i) all references to “days” in this Agreement are to calendar days unless such reference is to a Business Day. 

ARTICLE 17 
 DISPUTE
RESOLUTION 
 17.1 Exclusive Dispute Resolution Mechanism. Except as set forth in Section 8.3, the Parties agree that the
Dispute resolution procedures set forth in Article 13 of the Collaboration Agreement shall be the exclusive mechanism for resolving any Dispute that is not resolved through good faith negotiation between the Parties. 

17.2 Confidentiality. Any and all activities conducted under this Article 17, including any and all proceedings and decisions of
arbitrator(s), shall be deemed Confidential Information of each of the Parties, and shall be subject to Article 15. 
 [Signature Page
Follows] 

  
 Page 29 of 35 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized
officers effective as of the Effective Date. 
  

									
	 OREXIGEN THERAPEUTICS, INC.
	 		 	TAKEDA PHARMACEUTICAL COMPANY LIMITED
					
	By:	 	/s/ Michael A. Narachi	 		 	By:	 	/s/ Testuo Miwa
	 Name: Michael A. Narachi
	 		 	Name: Tetsuo Miwa
	 Title:   President & CEO
	 		 	Title:   Senior Vice President, Pharmaceutical Production Division
			
	 Date: September 2, 2014
	 		 	Date: August 29, 2014
			
	 OREXIGEN THERAPEUTICS, INC.
	 		 	TAKEDA PHARMACEUTICAL COMPANY LIMITED
					
	By:	 	/s/ Joseph P. Hagan	 		 	By:	 	/s/ Hideki Matsubara
	 Name: Joseph P. Hagan
	 		 	Name: Hideki Matsubara
	 Title:   Chief Business Officer
	 		 	 Title:    Senior Director, General Purchasing

Department Pharmaceutical Production Division

			
	 Date: September 2, 2014
	 		 	Date: August 29, 2014
				
	 OREXIGEN THERAPEUTICS, INC.
	 		 		 	
					
	By:	 	/s/ Philip Roberts	 		 		 	  

	 Name: Philip Roberts
	 		 		 	
	 Title:   VP, Technical Operations
	 		 		 	
				
	 Date: September 2, 2014
	 		 		 	

  
 Page 30 of 35 

 Exhibit 1.25 

Product 
 Bulk drug Product: naltrexone
hydrochloride and bupropion hydrochloride 8mg/90mg trilayer film-coated tablets [***]. 
  

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 Page 31 of 35 

 Exhibit 1.31 

Specifications 
 Bulk
Packaging Specifications 
  

			
	[***]	  	
		
	[***]	  	
		
	[***]	  	
		
	[***]	  	
		
	[***]	  	
		
	[***]	  	

 Product Specifications (see below) 

 

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 Page 32 of 35 

					
	

	 	Material Specification
	 	 8 mg Naltrexone Hydrochloride 90 mg

Bupropion Hydrochloride Tablet

(for Commercial)

	 	Document Number:	  	[***]
	 	Revision:	  	[***]

 Specification(s) (Contrave, Tablets) 

[***] 
 [***] 

 

					
	 Attribute
	  	 Acceptance Criteria
	  	Method
			
	 [***]
	  	[***]	  	[***]
			
	 [***]
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	  	[***]	  	

 [***] 
  

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 Page 33 of 35 

 [***] 
  

 

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 Exhibit 2.3.1 

Third Party Manufacturers and Agreements 

[***] 
  

 

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 Page 35 of 35Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”), is made and entered into effective as of May 13, 2014 (the “Effective Date”), by and between Intrawest Resorts Holdings, Inc., a Delaware corporation (the “Corporation”), and Travis Mayer (the “Executive”).  Where the context permits, references to “the Corporation” shall include the Corporation and any successor to the Corporation.

1.            TERM OF EMPLOYMENT.  The Executive’s employment with the Corporation under the terms and conditions of this Agreement shall commence on the Effective Date and shall continue until the termination of the Executive’s employment in accordance with the terms and conditions of Section 5 of this Agreement (the “Employment Term”).

2.            POSITION, REPORTING AND DUTIES.

(a)            Position and Reporting.  During the Employment Term, the Executive shall serve as the Executive Vice President, Operations & Business Development and shall report directly to the Chief Executive Officer of the Corporation (the “CEO”).

(b)            Duties and Responsibilities.  During the Employment Term, the Executive shall (i) be a full-time employee of the Corporation and shall dedicate all of his working time to the Corporation and its subsidiaries and shall have no other employment and no other business ventures which are undisclosed to the Corporation or which conflict with his duties under this Agreement, provided that this provision shall not restrict the Executive from engaging in private investment activities on behalf of himself or his immediate family or, subject to the prior approval of the CEO, serving on the board of directors (or similar position) or committees thereof of a charitable, non-profit or civic organization so long as any such activities do not conflict with this Agreement or interfere with the Executive’s duties or responsibilities as an officer of the Corporation and its subsidiaries and are not in respect of a Competitive Business (as defined below), (ii) have the normal duties, responsibilities and authority of an executive serving as an Executive Vice President, Operations & Business Development of a public corporation comparable to the Corporation, subject to the power of the CEO or the Corporation to expand or limit such duties, responsibilities and authority, either generally or in specific instances, in each case, subject to the terms of this Agreement and (iii) serve as an officer and/or member of the board of directors of the Corporation or any of its Affiliates as requested by the CEO from time to time for no additional compensation.

3.            LOCATION OF EMPLOYMENT.   The principal location of the Executive’s employment with the Corporation shall be at the Corporation’s headquarters in the Denver, Colorado area. The Executive understands and agrees that Executive may be required to travel in performing Executive’s duties.

4.            COMPENSATION AND BENEFITS.

(a)            Base Compensation.  During the Employment Term, the Corporation will pay to the Executive a base salary at the annualized rate of $300,000 (the base salary in effect from time to time, the “Base Salary”).  The Base Salary will be paid in bi-weekly installments in accordance with the Corporation’s customary compensation practices for the Corporation’s employees, which may be reviewed and continued or modified by the Corporation in its sole discretion from time to time.  The Compensation Committee of the Board of Directors of the Corporation (the “Committee”) will review the Executive’s Base Salary at least annually and may increase the Executive’s Base Salary, but may not unilaterally reduce the Executive’s then-existing Base Salary without the Executive’s consent and agreement.

(b)            Annual Performance-Based Incentive.

(i)            The Executive shall be eligible to continue to participate in the annual performance-based cash bonus plan in effect for similarly situated employees of the Corporation, as may be amended by the Corporation in its sole discretion from time to time (the “Annual Incentive Plan”).  The Executive’s target annual bonus under the Annual Incentive Plan will be 75% of the Base Salary as in effect on the first day of the fiscal year to which the Annual Bonus relates.  The Committee will review the Executive’s bonus structure at least annually and may adjust such bonus structure in its sole discretion.  Any amendment to the Annual Incentive Plan by the Corporation shall not impair or otherwise adversely affect any benefits of the Executive that vested before the amendment.

(ii)            Except as otherwise set forth in this Agreement, the Executive will not be eligible to receive a payment under the Annual Incentive Plan unless the Executive is an active employee as of, and has not given or received notice of termination of employment as of, the date such payment is made.  Annual Bonus payments will be made as soon as practicable following completion of the Corporation’s annual audit, which is expected to occur in October immediately following the end of the fiscal year to which the Annual Bonus relates.

(c)

(d)            Employee Benefits. The Executive will be eligible to participate in all of the Corporation’s benefit, group insurance, retirement and perquisite plans generally available to the Corporation’s similarly situated executives from time to time (collectively the “Plans”), subject to the terms and conditions of such Plans as are in effect and as may be amended by the Corporation in its sole discretion from time to time.

(e)            Vacation and Paid Time-Off.

(i)            The Executive will be entitled to 20 days of paid vacation during each 12-month period commencing on the Effective Date and on each subsequent anniversary thereof (each such 12-month period an “Anniversary Year”) in accordance with the policies and practices of the Corporation in effect from time to time. The Executive will take vacation at such times as are reasonably acceptable to the Corporation having regard to its operations. Any vacation days not used in an Anniversary Year will be automatically rolled over into the next Anniversary Year, provided that the total balance of the Executive’s earned and unused vacation at any point will not exceed the maximum allowable under the terms of the Corporation’s then current vacation policy and that the Executive will not earn or accrue any vacation above that maximum.

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(ii)            The Executive will be entitled to additional paid time-off in respect of sick days, statutory holidays and Denver office closures in accordance with the Corporation’s policies as in effect from time to time.

(f)            Expenses.  Consistent with its policies as established from time to time, the Corporation will reimburse the Executive for all business expenses reasonably incurred by the Executive in connection with the performance of the Executive’s duties upon the Executive providing the Corporation with such support for reimbursement as is required by those policies.

(g)            Insurance; Indemnification. If the Executive is a director or officer of the Corporation and any of its Affiliates at any time, the Executive shall from time to time be covered by such comprehensive directors’ and officers’ liability insurance and errors and omissions liability insurance as the Corporation shall have established and maintained in respect of its directors and officers generally at its expense. The insurance policies to be maintained by the Corporation hereunder may contain exclusions from coverage in respect of gross negligence or mala fides acts on the part of the Executive. The Executive shall also be entitled to indemnification rights, benefits and related expense advances and reimbursements to the same extent as any other director or officer of the Corporation or its subsidiaries.

5.            TERMINATION OF EMPLOYMENT.

(a)            Termination by the Corporation for Cause. The Corporation may terminate this Agreement and the Executive’s employment hereunder at any time for Cause (based on acts or omissions by the Executive). In the event of such a termination, the Corporation shall pay to the Executive a lump-sum payment equal to the sum of the following, to the extent accrued and unpaid up to and including, but in no case after, the date of termination of the Executive’s employment (the “Termination Date”): (i) the Executive’s Base Salary, and (ii) the balance of the Executive’s earned and unused vacation pay, in each case payable within fourteen (14) days after the Termination Date (the “Accrued Benefits”). For the purposes of this agreement, “Cause” means the Executive’s:

(i)            conviction or plea of guilty or no contest to a felony or criminal offense that relates to or arises out of the manner in which the Executive has performed his duties under this Agreement, results in material and demonstrable damage to the business or reputation of the Corporation or any of its Affiliates or involves an act of moral turpitude by the Executive;

(ii)            wilful and continued failure to substantially perform his duties with the Corporation (other than by reason of his disability) or material breach of this Agreement, after a written demand for substantial performance or correction of the material breach, as the case may be, is delivered to the Executive by the Corporation and the Executive fails or refuses to resume substantial performance or correct the material breach within ten days after such written demand is received by him;

(iii)            engaging in one or more acts which is materially damaging to the Corporation or any of its Affiliates, including acts or omissions that constitute gross negligence by the Executive in the performance of the Executive’s duties or responsibilities;

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(iv)            (A) misuse or misappropriation of the funds or assets of the Corporation or any of its Affiliates, (B) fraud or embezzlement against the Corporation or any of its Affiliates or (C) any other act of dishonesty against the Corporation or any of its Affiliates that is reasonably expected to result in material harm to the Corporation or any of its Affiliates, and in all cases whether by the Executive himself or by another employee or contractor of the Corporation or any Affiliate with the authorization of or condonation by the Executive;

(v)            breach of his fiduciary duties or duty of loyalty to the Corporation or any of its Affiliates;

(vi)            wilful material disregard or violation of the legal rights of any employees of the Corporation or any of its Affiliates or of the Corporation’s written policies regarding discrimination or harassment; or

(vii)            the habitual use of drugs or habitual use of alcohol to the extent that any of such uses, in the Corporation’s good faith determination, materially interfere with the performance of the Executive’s duties hereunder.

(b)            Termination by the Corporation Without Cause or by the Executive for Good Reason.  If at any time (i) the Corporation terminates the Executive’s employment for any reason other than for Cause or (ii) the Executive terminates his employment for Good Reason (as defined below), then the Executive shall be eligible to receive:

(i)            The Accrued Benefits, payable within fourteen (14) days after the Termination Date; and

(ii)            If the Executive (1) executes a release of all claims in a form acceptable to the Corporation (the “Release”) and the applicable revocation period with respect thereto expires within sixty (60) days following the Termination Date and (2) continues to comply with the Executive’s fiduciary obligations to the Corporation, the Executive’s covenants under Sections 6(d), 6(e), 6(f) and 6(g) of this Agreement and any other material ongoing obligations to which the Executive is subject, then the Corporation shall provide the Executive with:

(A)            continued payment of the Base Salary (“Continued Base Salary”) in accordance with the Corporation’s normal payroll practices for twelve (12) months following the Termination Date; provided that (i) such payments shall commence on the first regularly scheduled payroll date following the date on which the Release becomes irrevocable (the “Payment Commencement Date”) and (ii) the first such payment shall include all payments that otherwise would have been paid to the Executive pursuant to this Section 5(b)(ii)(A) between the Termination Date and the Payment Commencement Date if such payments had commenced as of the Termination Date; and provided further that if the Executive commences alternate employment or self-employment during such twelve (12) month period, the remaining Continued Base Salary payments shall be reduced in amount (to zero if applicable) by the Executive’s salary, wages and other income received or earned or equity interests received or granted from such alternate employment or self-employment, and the Executive hereby agrees to provide written notice to the Corporation if he commences alternate employment or self-employment during the period of such payments;

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(B)            (i) any bonus under the Annual Incentive Plan that the Executive would have been eligible to receive in respect of the most recently completed fiscal year had the Executive been an active employee of the Corporation on the payment date, to the extent unpaid as of the Termination Date, payable at the time bonuses are paid to active employees under the Annual Incentive Plan, plus (ii) a pro-rata payment under the Annual Incentive Plan, payable at the time bonuses are paid to active employees under the Annual Incentive Plan, equal to the product of (x) the amount of the annual bonus that would have been paid to the Executive based on actual performance for the full fiscal year in which the Termination Date occurs if the Executive had remained employed through the payment date and (y) a fraction, the numerator of which is the number of days in the fiscal year to which such bonus relates prior to the Termination Date and the denominator of which is 365; and

(C)            continuation of the Corporation’s contributions necessary to maintain the Executive’s coverage for the twelve (12) calendar months immediately following the end of the calendar month in which the Termination Date occurs under the medical, dental and vision programs in which the Executive participated immediately prior to the Termination Date, if the Executive elects COBRA continuation coverage for those benefit programs and continues to pay the same cost as a similarly situated active employee would pay for those programs; provided that if the Corporation determines in good faith that such contributions would cause adverse tax consequences to the Corporation or the Executive under applicable law, the Corporation shall instead provide the Executive with monthly cash payments during such twelve (12) month period in an amount that, prior to withholding for applicable taxes, is equal to the amount of the Corporation’s monthly contributions referenced above.

Notwithstanding the foregoing, to the extent required to avoid acceleration taxation or tax penalties under Section 409A of the Code, if the sixty (60) day period referenced in this Section 5(b) begins in one taxable year and ends in a second taxable year, the Payment Commencement Date shall occur in the second taxable year.

For the avoidance of doubt, a termination of the Executive’s employment as a result of the Executive’s death or following the Executive’s “disability” (as described in Section 5(e) below) shall not be considered a termination of the Executive’s employment other than for Cause pursuant to this Agreement, and shall instead be subject solely to the provisions set forth in Section 5(e) or 5(f), as applicable.

(c)            Termination in Connection with Change in Control.  Notwithstanding anything set forth in Section 5(b) to the contrary, if a Change in Control (as defined in the Omnibus Plan) occurs and within twelve (12) months following the consummation of the Change in Control, either (i) the Corporation terminates the Executive’s employment other than for Cause or (ii) the Executive terminates his employment for Good Reason, then the Executive shall be eligible to receive all of the payments and benefits referenced in Section 5(b), subject to all of the terms and conditions thereof, but the Continued Base Salary payments shall extend for a period of twelve (12) months following the Termination Date and shall be provided in full regardless of whether the Executive commences alternate employment or self-employment during such period.

For purposes of this Agreement, “Good Reason” shall mean any action by the Corporation, in each case without the Executive’s prior consent, that (i) reduces the Base Salary as then in effect (other than as part of an across-the-board reduction affecting all senior executives of the Corporation), (ii) relocates the Executive’s principal place of employment to a location in another country, or to a location more than fifty (50) miles from the Executive’s principal place of employment, (iii) materially and adversely alters the nature or status of the Executive’s responsibilities or title or (iv) constitutes an intentional material breach of this Agreement by the Corporation.  Notwithstanding the foregoing, in no event shall the occurrence of any such condition constitute Good Reason unless (A) the Executive provides notice to the Corporation of the existence of the condition giving rise to Good Reason within ninety (90) days following its initial existence and (B) the Corporation fails to materially cure such condition within thirty (30) days following the date of such notice, upon which failure to cure the Executive’s employment shall immediately terminate with Good Reason.

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(d)            Voluntary Resignation. If the Executive wishes to resign from the Executive’s employment voluntarily, the Executive will provide thirty (30) days’ notice in writing to the Corporation. The Corporation may waive such notice period in whole or in part by paying the Executive’s Base Salary and continuing the applicable group benefit plans in each case as accrued and unpaid to the effective date of resignation. The Executive agrees that such waiver will not constitute termination of the Executive’s employment by the Corporation. In the event of such termination, the Corporation shall only be required to provide the Executive with the Accrued Benefits, payable within fourteen (14) days after the Termination Date.

(e)            Termination Due to Disability.  In the event the Executive is either (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Corporation, the Corporation may terminate this Agreement and the Executive’s employment hereunder by providing the Executive with notice of termination in writing. In the event of such termination, the Corporation shall only be required to provide the Executive with the Accrued Benefits, payable within fourteen (14) days after the Termination Date.

(f)            Termination Due to Death.  In the event of the Executive’s termination of employment due to death, the Corporation shall only be required to provide the Executive with a lump-sum payment equal to the Accrued Benefits, payable within fourteen (14) days after the Termination Date.

(g)            Benefits and Perquisites. All other benefits and perquisites or payments in lieu of benefits and perquisites to or with respect to the Executive shall cease on the Termination Date, except to the extent required by applicable law or pursuant to the terms of any equity plan or agreement.

(h)            Return of Property. Upon any termination of the Executive’s employment hereunder (or at any other time upon the Corporation’s request), and as a condition of the Corporation paying the Executive any termination payments as may be required under Section 5(b) or 5(c) hereof (other than the Accrued Benefits), the Executive will at once deliver or cause to be delivered to the Corporation all books, documents, effects, money, securities or other property belonging to the Corporation or its Affiliates or for which the Corporation or its Affiliates are liable to others, which are in the possession, charge, control or custody of the Executive.

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(i)            Resignation as Officer or Director.  Upon any termination of the Executive’s employment hereunder unless requested otherwise by the Corporation, the Executive shall resign each position (if any) that the Executive then holds as an officer or director of the Corporation or any of its Affiliates. The Executive’s execution of this Agreement shall be deemed the grant by the Executive to the officers of the Corporation of a limited power of attorney to sign in the Executive’s name and on the Executive’s behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such resignations.

6.            COVENANTS.

(a)            Full Time Service. The Executive shall devote all of the Executive’s business time, attention and effort to the business and affairs of the Corporation and its Affiliates, shall well and faithfully serve the Corporation and its Affiliates and shall use the Executive’s best efforts to promote the interests of the Corporation and its Affiliates. The Executive shall duly and diligently perform all of the duties assigned to him while in the employ of the Corporation and shall truthfully and faithfully account for and deliver to the Corporation all money, securities and things of value belonging to the Corporation which the Executive may from time to time receive for, from or on account of the Corporation.

(b)            Rules, Regulations and Policies. The Executive shall be bound by and shall faithfully observe and abide by all the rules, regulations and policies of the Corporation and its Affiliates from time to time in force which are brought to the Executive’s notice or of which the Executive should reasonably be aware to the extent such rules, regulations and policies are not inconsistent with the terms of this Agreement or applicable law.

(c)            Fiduciary Obligations. The Executive is a fiduciary of the Corporation and its Affiliates.  The Executive shall not permit the Executive’s personal interests to conflict, or to appear to conflict, with the business interests of the Corporation or its Affiliates or the Executive’s duties to the Corporation or its Affiliates. Accordingly, during the Executive’s employment hereunder, the Executive shall not participate in the ownership of, have any financial or other involvement with or work for, any business or enterprise competing or endeavoring to compete with the business of the Corporation or any Affiliate (other than a holding as a passive investment of publicly listed shares that does not exceed 2% of the outstanding shares so listed) without the approval of the Corporation.

(d)            Confidential Information, Non-Disparagement and Remedies.

(i)            The Executive acknowledges that by reason of the Executive’s employment with the Corporation, the Executive will have access to Confidential Information and trade secrets of the Corporation and its and its subsidiary, affiliate or related corporations (“Affiliates”), and that such Confidential Information and trade secrets are essential components of the business of the Corporation and its Affiliates, and are proprietary and would be of great value and benefit to competitors of the Corporation and Affiliates. “Confidential Information” includes anything respecting the Corporation or its Affiliates or the business of developing, marketing, selling and operating destination resorts (the “Business”) or their operations, and which is not made readily available to the general public; this includes trade secrets (including, but not limited to, consumer lists), ideas, marketing concepts, documents, designs, techniques, inventions, discoveries, copyrights, methods, forecasts, programs, research or anything else concerning the organization, business, customers, employees, and finances of the Corporation or any of its Affiliates or the Business. The Executive agrees that both during and after the Executive’s employment with the Corporation, the Executive will not disclose to any individual or other entity, except in the proper course of the Executive’s employment with the Corporation, or use for the Executive’s own purposes or for purposes other than those of the Corporation or its Affiliates, any Confidential Information or trade secrets of the Corporation or its Affiliates, acquired by the Executive. If information enters the public domain, except as a result of a breach of this Section 6(d)(i) by the Executive or a breach of another confidentiality agreement to which the Corporation or an Affiliate is a party, the information will not be deemed Confidential Information or a trade secret protected by this Section 6(d)(i). In the event that the Executive believes he is compelled by law to disclose Confidential Information or trade secrets of the Corporation or its Affiliates, pursuant to subpoena, similar court order, or other legal authority, the Executive will not disclose the said Confidential Information or trade secrets without giving the Corporation reasonable advance notice of the subpoena, court order, or legal authority, and affording the Corporation the reasonable opportunity to take legal action to contest, challenge, narrow or otherwise limit or condition the disclosure. In no event will the Executive disclose Confidential Information or trade secrets of the Corporation or its Affiliates when the disclosure is not clearly compelled by such subpoena, similar court order, or other legal authority.

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(ii)            The Executive agrees that, both during and after the Executive’s employment with the Corporation, the Executive will not make critical, negative or disparaging remarks about the Corporation and its Affiliates that could reasonably be expected to result in material harm to the Corporation or any of its Affiliates, including, but not limited to, comments about any of their respective products, services, management, business or employment practices, and will not voluntarily aid or voluntarily assist any person in any way with respect to any third-party claims pursued against the Corporation or any of its Affiliates. Nothing in this paragraph will prevent the Executive from (A) asserting his legal rights before an administrative agency or court of law, or from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process or (B) making any critical remarks about the Corporation and its Affiliates in connection with any analyses made or opinions expressed in the ordinary course of the Executive’s duties hereunder during the Employment Term.

(iii)            The Executive acknowledges and agrees that any breach of Section 6(d), 6(e) or 6(f) hereof will result in material and irreparable harm to the Corporation or an Affiliate although it may be difficult for the Corporation to establish a monetary value flowing from such harm. The Executive therefore agrees that the Corporation or an Affiliate, in addition to being entitled to monetary damages which flow from the breach, will be entitled to injunctive relief in a court of appropriate jurisdiction (without proof of damages or the posting of a bond) in the event of any breach by the Executive of any such Section.

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(e)            Non-Solicitation.  The Executive will not, in any manner whatsoever, directly or indirectly, without the prior written consent of the Corporation, at any time during the Executive’s employment hereunder and for a period of twelve (12) months immediately following the date of any termination of the Executive’s employment for any reason, either by the Executive, or by the Corporation, with or without Cause:

(i)            induce or endeavor to induce (A) any employee of the Corporation or any of its Affiliates to leave employment with the Corporation or an Affiliate or (B) any consultant or contractor of the Corporation or an Affiliate to terminate its relationship as such with the Corporation or such Affiliate during any period of time that the business services provided, directly or indirectly, by such consultant or contractor are exclusively or primarily being provided to the Corporation and its Affiliates, provided, that this clause (i) shall not preclude customary non-targeted recruiting efforts or general solicitations that are not specifically directed to, but which may have the effect of causing an employee, consultant or contractor to leave the employment or arrangement with the Corporation or an Affiliate;

(ii)            employ or attempt to employ or assist any individual or other entity to employ any employee of the Corporation or an Affiliate or to retain any consultant or contractor during any period of time that the business services provided, directly or indirectly, by such consultant or contractor are exclusively or primarily being provided to the Corporation or an Affiliate, provided, that this clause (ii) shall not preclude an employer of the Executive from offering employment or consulting or contracting services to anyone without the direct or indirect assistance of the Executive; or

(iii)            for the purpose of competing with the Corporation or any of its subsidiaries, solicit, endeavor to solicit or gain the custom of, canvass or interfere with the Corporation’s or an Affiliate’s relationship with any individual or other entity that:

(A)            is a customer or supplier of the Corporation or an Affiliate at the date hereof and/or at the date of any termination of the Executive’s employment;

(B)            was a major customer or supplier of the Corporation or an Affiliate at any time within twenty-four (24) months prior to the date of any termination of the Executive’s employment; or

(C)            has been pursued as a prospective major customer or supplier by or on behalf of the Corporation or an Affiliate at any time within twelve (12) months prior to the date of any termination of the Executive’s employment, and in respect of whom the Corporation or an Affiliate has not determined to cease all such pursuit.

(f)            Non-Competition. The Executive recognizes that, in the event for any reason whatsoever his employment with the Corporation is terminated, his knowledge of the Confidential Information and trade secrets of the Corporation and his role in the Business may allow him to compete or to assist a third party to compete unfairly with the Corporation or any of its subsidiaries, in various locations throughout the U.S. and Canada. The Executive will not, in any manner whatsoever, directly or indirectly:

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(i)            form, carry on, engage in or be concerned with or interested in (financially or in any other capacity); or

(ii)            advise, lend money to, guarantee the debts or obligations of or permit the Executive’s name or any part thereof to be used in the promotion or advancement of; or

(iii)            be employed by or render any services (as an employee, independent contractor, consultant, or otherwise) to any individual or other entity engaged in, or concerned with or interested in,

any business (A) in Colorado or (B) within fifty miles of a project of the Corporation or any of its subsidiaries that is the same as, substantially similar to, or competitive with, the business of developing, marketing, selling or operating mountain resorts or helicopter-skiing travel experiences or snowcat skiing travel experiences (each, a “Competitive Business”), in each case without the prior written consent of the Corporation, at any time during the Executive’s employment hereunder and for the period of twelve (12) months immediately following the date of any termination of the Executive’s employment for any reason whatever and with or without Cause.

Where the Executive seeks the prior written consent of the Corporation to engage in any activities which may be in violation of this covenant, he will provide the Corporation in advance with full disclosure of all relevant information concerning the nature and the scope of the proposed activities and the identity of all parties with whom the Executive may be engaging in the proposed activities and the Corporation will reasonably assess such information with a view to determining if an agreement can be reached between the Executive and the Corporation permitting the Executive to engage in some or all of the proposed activities and not unreasonably restricting the Executive’s professional livelihood, provided that any such agreement must be on such terms and conditions, including that there must be no material harm to the business of the Corporation, as are acceptable to the Corporation.

(g)            Cooperation. The Executive shall provide reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events during the Executive’s employment hereunder. The Corporation shall reimburse the Executive for the Executive’s reasonable travel expenses incurred in connection with the foregoing, in accordance with the Corporation’s policies and subject to the delivery of reasonable support for such expenses.

(h)            Restrictions Reasonable. The Executive confirms that all restrictions and covenants in Sections 6(d), 6(e), 6(f) and 6(g) are reasonable and valid, and waives all objections to and defenses to the strict enforcement thereof.

(i)            Acknowledgment.  The Executive acknowledges and agrees that Sections 6(e) and 6(f) hereof are fully enforceable under Colorado Revised Statute Section 8-2-113(2) because this Agreement is a “contract for the protection of trade secrets” and the Executive serves the Corporation in an “[e]xecutive and management personnel” capacity.

	7.	SECTION 280G.

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(a)            Treatment of Payments.  Notwithstanding anything in this Agreement or any other plan, arrangement or agreement to the contrary, in the event that any payment or benefit received or to be received by the Executive (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Code or otherwise would be subject (in whole or part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement, the payments or benefits to be received by the Executive that are subject to Section 280G of the Code shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax but only if the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of  such unreduced Total Payments).

 

(b)            Ordering of Reduction.  In the case of a reduction in the Total Payments pursuant to Section 7(a), the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.

 

(c)            Certain Determinations.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by a nationally recognized accounting firm designated by the Corporation (the “Accounting Firm”) does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

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(d)            Additional Payments.  If the Executive receives reduced payments and benefits by reason of this Section 7 and it is established pursuant to a determination of a court of competent jurisdiction which is not subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that the Executive could have received a greater amount without resulting in any Excise Tax, then the Corporation shall thereafter pay the Executive the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable.

8.            ASSIGNMENT.  This Agreement, and all of the terms and conditions hereof, shall bind the Corporation and its successors and assigns.  Neither this Agreement, nor any of the Corporation’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by the Executive, and any such attempted assignment or hypothecation shall be null and void.  The Corporation may assign the rights and obligations of the Corporation hereunder, in whole or in part, to any of the Corporation’s subsidiaries, Affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Corporation’s assets or stock or in connection with any merger, acquisition and/or reorganization, provided the assignee assumes the obligations of the Corporation hereunder.

9.            GENERAL CONTRACT PROVISIONS.

(a)            No Breach of Obligation to Others. The Executive acknowledges and represents to the Corporation that, in carrying out the Executive’s duties and functions for the Corporation or its Affiliates, the Executive shall not disclose to the Corporation or its Affiliates any confidential information of any third party. The Executive acknowledges and represents to the Corporation that the Executive has not brought to the Corporation nor shall the Executive use in the performance of the Executive’s duties and functions with the Corporation or its Affiliates any confidential materials or property of any third party. The Executive further acknowledges and represents that the Executive is not a party to any agreement with or under any legal obligation to any previous employer or other third party that conflicts with, or would otherwise restrict the Executive from performing, any of the Executive’s obligations to the Corporation or its Affiliates under this Agreement.

(b)            Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Colorado, without regard to any choice-of-law rules thereof which might apply the laws of any other jurisdiction. Each party irrevocably submits to the non­exclusive jurisdiction of the courts of Colorado and all courts competent to hear appeals from those courts with respect to any matter related to this Agreement.

(c)            No Related Party Dealings.  The Executive will not be allowed to deal on behalf of the Corporation with any entity in which he or his immediate family has an undisclosed financial interest.

(d)            Entire Agreement. This Agreement, together with the documents referred to herein, constitutes and expresses the whole agreement of the parties hereto with reference to any of the matters or things herein provided for or herein before discussed or mentioned with reference to the Executive’s employment, and it cancels and replaces any and all prior understandings and agreements between the Executive and the Corporation, including, without limitation, the Original Agreement, which is cancelled and of no further force or effect as of the Effective Date. All promises, representations, collateral agreements and understandings not expressly incorporated in this Agreement are hereby superseded by this Agreement.

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(e)            Notice.  Any notice required or permitted to be given under this Agreement shall be in writing and shall be properly given if personally delivered, delivered by overnight courier of national reputation (e.g., FedEx or UPS) or sent by registered mail, return receipt requested, as follows:

		If to the Corporation:	Intrawest Resorts Holdings, Inc.

1621 18th Street, Suite 300

Denver, CO 80202

 Attention: Chief Executive Officer

		If to the Executive:	to the last address of the Executive

in the Corporation’s records

 or c/o Intrawest Resorts Holdings, Inc.

(f)            Survival. The representations, warranties and covenants of the Executive contained in this Agreement will survive any termination of the Executive’s employment with the Corporation.

(g)            Damages.  The Executive agrees that in the event of any breach of this Agreement by the Executive damages will be an inadequate remedy and that the Corporation will be entitled to make an application to a court of competent jurisdiction for temporary and/or permanent injunctive relief against the Executive, without the necessity of proving actual damage to the Corporation.

(h)            Severability. If any covenant or provision contained herein is determined to be void, invalid or unenforceable in whole or in part for any reason whatsoever, it will not be deemed to affect or impair the validity or enforceability of any other covenant or provisions hereof, and such unenforceable covenant or provisions or part thereof will be treated as severable from the remainder of this Agreement.

(i)            Amendments. No modification, amendment or variation hereof will be of effect or binding upon the parties hereto unless agreed to in writing by each of them and thereafter such modification, amendment or variation will have the same effect as if it had originally formed part of this Agreement.

(j)            Waiver.  No waiver by the parties hereto of any breach of any condition, covenant or agreement hereof will constitute a waiver of such condition, covenant or agreement except in respect of the particular breach giving rise to such waiver.

(k)            No Untruths. The Executive represents and warrants that all information provided to the Corporation in any application form or during any interview for employment was accurate and contained no untruths or misrepresentations. The Executive agrees that the provision of any false or misleading information on an application form or during any employment interview are grounds for immediate dismissal of the Executive by the Corporation without any further compensation payable to the Executive.

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(l)            Executive’s Acknowledgment. The Executive acknowledges that he has read and understands the foregoing and that the Corporation has advised him that this Agreement substantially alters and supersedes the Executive’s rights at common law. The Executive specifically acknowledges that the Corporation has advised him to seek independent legal advice prior to executing this Agreement.

(m)         Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, the Executive shall not be considered to have terminated employment with the Corporation for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive would be considered to have incurred a “separation from service” from the Corporation within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement or any other arrangement between the Executive and the Corporation during the six-month period immediately following the Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death). To the extent required to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to the Executive under this Agreement shall be paid to the Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to the Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. The Corporation makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

(n)            Headings.  The headings of this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof.

(o)            Construction.  The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel.  Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement.

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(p)            Counterparts.  This Agreement may be executed on separate counterparts, any one (1) of which need not contain signatures of more than one (1) party, but all of which taken together will constitute one and the same agreement.

(q)            Tax Withholding.  The Corporation may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Corporation is required to withhold pursuant to any applicable law, regulation or ruling.  Notwithstanding any other provision of this Agreement, the Corporation shall not be obligated to guarantee any particular tax result for the Executive with respect to any payment provided to the Executive hereunder, and the Executive shall be responsible for any taxes imposed on Executive with respect to any such payment.

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

	
 

	
INTRAWEST RESORTS HOLDINGS, INC.

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ William A. Jensen

	
 

	
 

	
Name:

	
William A. Jensen

	 		Title:	Chief Executive Officer
	 			
	 	EXECUTIVE
	 			
	 	/s/ Travis Mayer
	 	Travis Mayer

 

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