Document:

Exhibit 10.1

 

EXHIBIT
10.1

Confidential treatment has been requested for portions of this Exhibit. The copy filed
herewith omits the information subject to the confidentiality request. Omissions are designated by
***. A complete version of this exhibit has been filed separately with the Securities and Exchange
Commission.

DEVELOPMENT AND MARKETING AGREEMENT

     This Development and Marketing Agreement (this “Agreement”) is hereby entered into and
effective as of February 22, 2006 (the “Effective Date”) by and between Spectrum Pharmaceuticals,
Inc. (“Spectrum”), a Delaware corporation, with offices located at 157 Technology Drive, Irvine,
California 92618 and Par Pharmaceutical, Inc. (“Par”), a Delaware corporation with offices located
at 300 Tice Boulevard, Woodcliff Lake, New Jersey 07677. Spectrum and Par shall each be defined as
a “Party” and together as the “Parties” under this Agreement.

     WHEREAS, Spectrum is engaged in the development of certain generic pharmaceutical products and
desires Par to market, sell and distribute certain of Spectrum’s products in the Territory;

     WHEREAS, Par desires to market, sell and distribute certain of Spectrum’s products in the
Territory;

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

ARTICLE 1. DEFINITIONS

     1.1. “Act” means the United States Federal Food, Drug and Cosmetic Act, as amended from time
to time, and the rules, regulations and guidelines promulgated thereunder.

     1.2. “Affiliate(s)” means a Person that Controls, is Controlled by or is under common Control
with a Party.

     1.3. “ANDA” means an Abbreviated New Drug Application pursuant to 21 U.S.C. 355(j) and 21
C.F.R. § 314.3.

     1.4. “API” means an active pharmaceutical ingredient used in the manufacture of a Product.

     1.5. “Applicable Laws” means all applicable laws, rules, regulations and guidelines that may
apply to the development, manufacturing, exportation, importation, promotion, marketing, sale or
distribution of the Products and/or the performance of a Party’s obligations under this Agreement,
to the extent applicable and relevant, and including specifically, but without limitation, all cGMP
or similar standards or guidelines of the FDA and including trade association guidelines, where
applicable, as well as U.S. export control laws and the U.S. Foreign Corrupt Practices Act.

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     1.6. “cGMP” means all applicable standards relating to manufacturing practices for fine
chemicals, active pharmaceutical ingredients, intermediates, bulk products or finished
pharmaceutical products, including the principles detailed in the U.S. Current Good Manufacturing
Practices, 21 C.F.R. Parts 210 and 211.

     1.7. “Commercial Launch” means, on a product-by-product basis, the first sale of such Product
by Par, or its Affiliate, to an unaffiliated Third Party after such Product has received all
necessary Regulatory Approvals.

     1.8. “Commercially Reasonable Efforts” means with respect to each Party, efforts and
commitment of resources in accordance with such Party’s reasonable business, legal, medical, and
scientific judgment that are consistent with the efforts and resources such Party would use for
other products owned by it or to which it has exclusive rights, which are of similar market
potential and at a similar stage in their life cycle, taking into account the competitiveness of
the market place, the regulatory structure involved and other relevant factors.

     1.9. “Committee” shall have the meaning set forth in Section 4.1.

     1.10. “Competing Product” means any Drug Product, excluding the Products under this Agreement,
which is a Therapeutic Equivalent of a Reference Listed Drug listed on Schedules 1.18, 1.19, 1.20
or 1.37.

     1.11. “Confidential Information” means with respect to a Party (as the “Disclosing Party”),
all non-public information of any kind whatsoever (including without limitation, data,
compilations, formulae, models, patent disclosures, procedures, processes, projections, protocols,
results of experimentation and testing, specifications, strategies, techniques and all non-public
Intellectual Property Rights (defined below)), and all tangible and intangible embodiments thereof
of any kind whatsoever (including without limitation, apparatus, compositions, documents, drawings,
machinery, patent applications, records and reports), which is disclosed by the Disclosing Party to
the other Party (as the “Receiving Party”) and is acknowledged to be confidential at the time of
such disclosure. Notwithstanding the foregoing, Confidential Information of a Disclosing Party
shall not include information which the Receiving Party can establish by competent proof (a) to
have been publicly known prior to disclosure of such information by the Disclosing Party to the
Receiving Party, (b) to have become publicly known, without fault on the part of the Receiving
Party, subsequent to disclosure of such information by the Disclosing Party to the Receiving Party,
(c) to have been received by the Receiving Party free of an obligation of confidentiality from a
source, other than the Disclosing Party, rightfully having possession of and the right to disclose
such information free of an obligation of confidentiality, (d) to have been otherwise known by the
Receiving Party prior to disclosure of such information by the Disclosing Party to the Receiving
Party, or (e) to have been independently developed by employees or agents of the Receiving Party
without the use of or access to Confidential Information of the Disclosing Party.

     1.12. “Control” including, with correlative meaning, the terms “Controlled by” or “under
common Control with” means the actual power, either directly or indirectly through one or more
intermediaries, to direct the management and policies of such Person, whether by the ownership of
at least fifty percent (50%) of the voting interest of such Person (it being

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understood that the direct or indirect ownership of a lesser percentage of such interest shall
not necessarily preclude the existence of control), or by contract or otherwise.

     1.13. “Drug Product” means a drug product as defined in 21 C.F.R. § 314.3 for administration
to human subjects.

     1.14. “Development Costs and Expenses” means the costs and expenses relating to all research
and development for each Product for the Territory, including, without limitation, such costs and
expenses related to materials (e.g., API), analytical testing (e.g., outside laboratory expenses),
process development costs, pre-clinical and clinical costs, bioequivalence or bioavailability
testing, exhibit batch and validation costs, processing and conversion costs of materials required
for regulatory filings but excluding, costs and expenses associated with legal due diligence,
litigation, and ANDA submissions and prosecutions.

     1.15. “Direct Cost” means (i) in the event a Party is manufacturing a Product, the direct
costs actually incurred for the manufacturing, Labeling and Packaging of the Product including the
cost of all API and excipient raw material ingredients, packaging components, and direct labor,
including quality control and assurance testing that are a necessary part of manufacturing or (ii)
in the event a Third Party is manufacturing a Product, the out-of-pocket expenses actually paid by
such Party to a Third Party for Product. Direct Costs shall not include any Development Costs and
Expenses or any allocations for overhead (except as set forth in the preceding sentence),
depreciation, idle or excess capacity, or other indirect costs.

     1.16. “Generic Products” means collectively the Group A Generic Products, the Group B Generic
Products and the Group C Generic Products.

     1.17. “Governmental Authority” means any foreign, domestic, federal, territorial, state or
local governmental authority, quasi-governmental authority, instrumentality, court, government or
self-regulatory organization, commission, tribunal or organization or any regulatory,
administrative or other agency, or any political or other subdivision, department or branch of any
of the foregoing.

     1.18. “Group A Generic Products” means the Drug Products that are Therapeutically Equivalent
to the Reference Listed Drugs listed on Schedule 1.18 attached hereto including all listed dosage
strengths and Packaging forms thereof and for which Par is under no conflicting or prohibiting
contractual obligations. *** The Parties acknowledge that Par is restricted from commercialization
of the Cipro Tablet Products listed on Schedule 1.18 until March 11, 2006.

     1.19. “Group B Generic Products” means the Drug Products that are Therapeutically Equivalent
to the Reference Listed Drugs listed on Schedule 1.19 attached hereto including all listed dosage
strengths and Packaging forms thereof. The Parties acknowledge that Par is restricted from
commercializing the Paraplatin Products listed on Schedule 1.19 until Spectrum’s agreement with
Cura Pharmaceutical Company, Inc. (“Cura”) has been amended to become a non-exclusive agreement.
Spectrum shall promptly notify Par when such agreement has been

 

			
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amended. After Spectrum notifies Par, the Paraplatin Products will be considered a Group B
Generic Product and notwithstanding anything in the Agreement to the contrary, Par shall have
semi-exclusive rights to Carboplatin (i.e. only Cura and Par shall have the right to market
Spectrum’s Paraplatin Products), and everywhere in this Agreement where it refers to exclusive
rights to the Products, there shall only be semi-exclusive rights for the Paraplatin Products. ***

     1.20. “Group C Generic Products” means the Drug Products that are Therapeutically Equivalent
to the Reference Listed Drugs listed on Schedule 1.20 attached hereto including all listed dosage
strengths and Packaging forms thereof.

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

     1.22. “First-to-File Opportunity” means an opportunity to license or purchase the right to
market, distribute, sell or have sold a Competing Product under a first filed ANDA pursuant 21
U.S.C. § 355(j)(2)(vii)(IV) against a Reference Listed Drug.

     1.23. “Intellectual Property ” means without limitation all of the following: (i) patent
applications, continuation applications, continuation in part applications, divisional
applications, any foreign patent applications corresponding to any of the foregoing, and any
patents that may grant or may have been granted on any of the foregoing, including without
limitation reissues, re-examinations and extensions thereof; (ii) all know-how, trade secrets,
inventions (whether patentable or otherwise), data, processes, techniques, procedures,
compositions, devices, methods, formulas, protocols and information, whether patentable or not;
(iii) copyrightable works, copyrights and applications, registrations and renewals; (iv) logos,
trademarks, service marks, and all applications and registrations relating thereto; (v) other
proprietary rights; and (vi) copies and tangible embodiments of any one or more of the foregoing.

     1.24. “Label,” “Labeled” or “Labeling” means all labels and other written, printed or graphic
matter, (i) upon the Product or any container or wrapper utilized with the Product, or (ii)
accompanying the Product, including without limitation, package inserts, which in either case may
be subject to FDA review.

     1.25. “Marketing Fee” means the dollar amount equal to *** percent (***%) of Net Sales.

     1.26. “Material Adverse Event” means an event, change or occurrence that has or would
reasonably likely cause a material adverse effect on the financial position, business, properties,
operations or assets of Spectrum.

     1.27. “NDA” means a new drug application filed with the FDA pursuant to and under 21 U.S.C. §
355(b) of the Act, together with the FDA’s implementing rules and regulations.

     1.28. “Net Profit” means the Net Sales of each Product less ***

 

			
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     1.29. “Net Sales” means the dollar amount determined by deducting from the gross amount
invoiced for the Product sold by Par, or by an Affiliate of Par, or by a permitted sub-licensee, as
the case may be, in the Territory the following to the extent they relate directly to the sale of
the Products by Par: (i) all applicable sales credits accrued in accordance with accounting
principles generally accepted in the United States, (ii) payments or rebates incurred pursuant to
federal, state and local government assistance programs, whether in existence now or enacted at any
time hereafter, (iii) costs for transit insurance, freight, handling or other transportation, (iv)
customs duty, sales, use or excise taxes, and (v) the write-off of any bad debt. Sales credits
accrued in accordance with accounting principles generally accepted in the United States include
credits or discounts related to the following: (i) customer returns, returned goods allowances,
billing and shipping errors, rejected goods and damaged goods, (ii) cash or terms discounts, (iii)
customer rebate programs, (iv) chargebacks and administration fees or similar credits or payments
granted to customers pursuant to contract or other purchases, (v) sales promotions, trade show
discounts and stocking allowances, (vi) price adjustments, including those on customer inventories
following price changes, and (vii) Product recall.

     1.30. “Packaging” means all primary containers, including bottles, cartons, shipping cases or
any other like matter used in packaging or accompanying the Product.

     1.31. “Person” means an individual, corporation, partnership, limited liability company, firm,
association, joint venture, estate, trust, governmental or administrative body or agency, or any
other entity.

     1.32. “Proceedings” means, without limitation, governmental, judicial, administrative or
adversarial proceedings (public or private), litigation, suits, arbitration, disputes, claims,
causes of action or investigations.

     1.33. “Products” means both Generic Products and the Sumatriptan Products.

     1.34. “Product Specifications” means the specification for each Product as approved in the
Regulatory Approval for such Product, including (as applicable) statements of pharmaceutical
manufacturing, labeling, filling, packaging, storage and quality control procedures, and Labeling
and Packaging specifications (as such may be revised from time to time in accordance with
Applicable Law) together with any additional specifications that may be agreed to between the
Parties.

     1.35. “Reference Listed Drug” shall have the meaning set forth at 21 C.F.R § 314.3.

     1.36. “Regulatory Approvals” means, with respect to each Product, any approvals, product
and/or establishment licenses, registrations, permits or authorizations, including without
limitation approvals under ANDAs which are necessary for the commercial manufacture, use, storage,
importation, transport, promotion, pricing, distribution or sale of each Product in the Territory
or other applicable locations.

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     1.37. “Sumatriptan Products” means all dosage and/or Packaging forms of the Drug Products
listed on Schedule 1.37 that are Therapeutically Equivalent to the Reference Listed Drug Imitrex
(sumatriptan) ***

     1.38. “Territory” means the United States, its territories, possessions, protectorates and the
Commonwealth of Puerto Rico.

     1.39. “Therapeutic Equivalent” including, with correlative meaning, the term “Therapeutically
Equivalent” shall have the meaning given to it by the FDA in the edition of the “Approved Drug
Products with Therapeutic Equivalence Evaluations” which was current as of the Effective Date (the
“Orange Book”).

     1.40. “Third Party” or “Third Parties” shall mean any Person or entity other than a Party or
its Affiliates

     1.41. “Transfer Price” means the dollar amount equal to the Direct Cost for each Product.

ARTICLE 2. DEVELOPMENT

     2.1. General Development Obligations. Spectrum shall use Commercially Reasonable Efforts to
develop each Product, for all applicable dosage strengths and Packaging forms listed on Schedules
1.18, 1.19, 1.20 and 1.37. For future products, it is the intent of both Parties for Spectrum to
develop all approved dosage strengths and Packaging forms, however, the Committee shall decide
which dosage strengths and Packaging forms will be developed. Spectrum’s development
responsibilities shall include, without limitation, the following:

2.1.1. Spectrum shall develop a stable final dosage form of each Product, which
does not infringe any Third Party Intellectual Property that shall be
Therapeutically Equivalent to the corresponding Reference Listed Drug. ***

2.1.2. Spectrum shall manufacture, or ensure that a Third Party manufactures,
all supplies of the Products required for Regulatory Approval in facilities
that meet the Applicable Laws.

2.1.3. Spectrum shall be responsible for, and maintain, materials, facilities
and personnel reasonably necessary to fulfill its obligations under this
Agreement.

2.1.4. Spectrum shall keep Par informed of the progress of the development of
the Products and shall cooperate with Par and its legal counsel in
assessing and avoiding infringement of Third Party Intellectual Property
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counsel with proposed and final formulations, results of all testing
and analytical studies, API processing and synthesis information, manufacturing
processes and access to Spectrum’s technical personnel involved in the
development of a Product.

2.1.5. Spectrum shall conduct all reasonable testing and analytical studies
required by the FDA to support an ANDA for each Product as applicable.

     2.2. Development Compliance. Spectrum shall comply with, and shall require compliance by its
Third Party contractors with, all Applicable Laws in the conduct of all activities associated with
the development and manufacture of the Products including all associated analytical methods and
cGMP requirements.

     2.3. Development Costs and Expenses. Spectrum shall be responsible for all Development Costs
and Expenses for each Product, including any bioequivalence or bioavailability studies that are
needed for the filing and approval of an ANDA for a Product. In the event Spectrum requests that
Par reasonably assist in the development of any Product, Spectrum shall reimburse Par for all of
its reasonable costs and expenses associated with such assistance that are approved in writing in
advance by Spectrum.

     2.4. Future Products. The Parties desire that their collaboration with respect to the
development and commercialization of generic pharmaceutical products be extended to additional
brand name products and generic products in addition to the Products. In view of that desire, the
Parties shall work together to develop additional products over a mutually acceptable period of
time.

2.4.1. From time to time during the term of this Agreement either Party may
nominate additional product for collaboration through the Committee, which
the other Party shall duly consider.

2.4.2. The Parties agree to either incorporate any additional products into this
Agreement through amendment or to negotiate in good faith a new agreement.
With respect to additional generic products, such an agreement shall be on
substantially similar terms and with substantially similar financial terms
as those relating to the Generic Products and/or Sumatriptan Products, as
applicable, set forth in this Agreement, with the understanding that such
terms and conditions may be different from those described herein.

2.4.3. Any information or materials shared by either Party during the course of
any discussions or negotiations relating to the collaboration on any
additional products shall be deemed Confidential Information and subject to
Article 10 of this Agreement.

ARTICLE 3. REGULATORY

     3.1. ANDA Ownership. The ANDA for each Product shall be owned exclusively by

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Spectrum. Spectrum shall maintain all Regulatory Approvals during the term of this Agreement.

     3.2. ANDA Prosecution.

3.2.1. The Parties acknowledge that Spectrum has filed a number of ANDAs for the
Products prior to the Effective Date and with respect to such Products
Spectrum shall diligently continue to pursue Regulatory Approval of such
Product.

3.2.2. With respect to the Products not covered under Section 3.2.1, Spectrum
shall use Commercially Reasonable Efforts to file ANDAs for such Products
as soon as possible and shall thereafter continue to diligently pursue
Regulatory Approval.

3.2.3. Par shall be provided with the opportunity to review and comment on all
future material submissions to the FDA, including any ANDAs, relating to
the Products.

3.2.4. Spectrum will provide copies of all material information related to the
Products in its possession or control and all submissions made to the FDA
related to the Products, including any accompanying material data, to Par
upon Par’s request. Notwithstanding the foregoing, regarding Third Party
information, Spectrum shall use Commercially Reasonable Efforts to obtain
consent from such Third Parties to provide such information to Par. For
future agreements with Third Parties regarding Products, Spectrum shall use
Commercially Reasonable Efforts to negotiate a three-way CDA with Spectrum,
Par and the Third Party to allow Spectrum to share the Third Party’s
confidential information with Par.

     3.3. Expenses. Spectrum shall bear all costs and expenses associated with gaining and
maintaining Regulatory Approval for each Product.

     3.4. Progress Updates. Spectrum shall keep Par informed of the progress of the prosecution of
each ANDA, including providing good faith projections of the approximate time at which approval of
the ANDA may be expected and providing notice of any negative communications from the FDA which
could affect approval timing or otherwise affect the supply of Product.

ARTICLE 4. COLLABORATION COMMITTEE

     4.1. Establishment of the Committee. The Parties each hereby agree to work together in good
faith in the collaboration under this Agreement and to keep each other reasonably informed of its
activities under this Agreement. Additionally, and in support of the foregoing, promptly after the
Effective Date, the Parties will form a committee comprised of six (6) people in total to
facilitate communication between the Parties and to administer the collaboration (the “Committee”).
Each Party shall have equal representation in the Committee. Each Party shall have the right from
time to time to substitute new members, on a permanent or temporary basis, for any of its
previously designated members of the Committee. Each Party

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shall bear its own costs associated with participation in the Committee.

     4.2. Purpose and Responsibilities of the Collaboration Committee. The Committee shall
generally oversee the development and the commercialization of the Products and facilitate
communication between the Parties, including as follows:

4.2.1. The Committee shall coordinate the exchange of information, technology
and know-how as applicable to the collaboration;

4.2.2. The Committee shall establish approximate timelines for the development
of the Products including timing of bioequivalence or bioavailability
studies and the filing of the ANDAs;

4.2.3. The Committee shall establish approximate timelines associated with the
commercialization of the Products including the timing of supply and
manufacturing commitments, the timing of the Commercial Launch, and
marketing of the Products such as achieving certain sales targets;

4.2.4. The Committee shall oversee the development of each formulation and the
associated legal assessments including those of risks associated with Third
Party Intellectual Property;

4.2.5. The Committee shall facilitate communication regarding, and resolution
of, any disputes between the Parties;

4.2.6. The Committee shall also address such other matters as are referred to
the Committee from time to time by mutual agreement of the Parties;

4.2.7. The Committee shall discuss and the Parties shall mutually agree to add
new products as set forth in Section 2.4;

4.2.8. The Committee shall discuss and the Parties shall mutually agree to add
new dosage strengths and Packaging forms for the Products to the
appropriate Schedule; and

4.2.9. The Committee shall discuss pricing of the Products, and in addition,
Spectrum may request pricing information from a representative of Par on
the Committee at any time.

     4.3. Decision-Making; Limitations on Authority. Decisions of the Committee shall be made by
unanimous agreement. In the event that unanimity is not achieved within the Committee, the matter
will be referred to Par’s and Spectrum’s CEOs, who shall promptly meet and endeavor in good faith
to resolve such matter in a timely manner. The Committee shall not have any authority to impose
financial, cost or other obligations on either Party in excess of those expressly set forth in this
Agreement, unless expressly consented to in writing by such Party.

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     4.4. Collaboration Committee Meetings. During the term of this Agreement, the Committee shall
meet at least twice each calendar year or at such other frequency as the Committee determines. The
Parties shall meet on a date and at a time and location determined by the Committee; the Parties
anticipate alternating meetings between the Party’s respective sites. Upon written notice by
either Party to the other that a meeting is required or requested, a meeting will be held within
thirty (30) calendar days of such notice on a date and time and at a location to be agreed upon by
the Parties, or sooner if warranted by the circumstances. Notice requesting such a meeting shall
include adequate information describing the activity to be reviewed. Any meetings of the Committee
may be held in person at a location to be agreed to by the Parties, or by videoconference or
teleconference. A reasonable number of additional representatives of either Party including
outside consultants and legal counsel, subject to the other Party’s reasonable consent, may attend
meetings of the Committee in a non-voting capacity. At least one week prior to any meeting of the
Committee, each Party shall provide the other with a proposed agenda of the matters to be discussed
at such meeting. A Committee Chairperson shall be selected for a one-year term and shall alternate
between designees of the Parties, commencing with a designee of Spectrum. Within thirty (30) days
after each meeting, the Committee Chairperson will provide the Parties with a written report
describing, in reasonable detail, a summary of the meeting and a summary of the results and
progress to date, the issues requiring resolution and the agreed resolution of previously reported
issues.

ARTICLE 5. COMMERCIALIZATION

     5.1. License Grant. Spectrum hereby grants to Par an exclusive (even as to Spectrum)
royalty-free, irrevocable license under its rights in and to the Regulatory Approvals and under its
Intellectual Property rights associated with the Products to market, promote, distribute, sell and
have sold the Products in the Territory. The foregoing license shall include the right for Par to
grant sublicenses and appoint sub-contractors to market, distribute and sell the Products within
the Territory on Par’s behalf.

     5.2. Promotion, Marketing, Sales and Distribution Obligations.

5.2.1. Par, at its sole expense, shall use Commercially Reasonable Efforts to
launch, market, promote, distribute and sell the Products in the Territory
consistent with Par’s efforts in regards of the other generic products that
it distributes, as applicable. Ultimate responsibility and decision-making
control with regard to marketing and pricing of the Products shall belong
solely to Par. Nothing in this Agreement shall require Par to sell any
Product at a loss.

5.2.2. ***

 

			
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5.2.3. The label for the Products shall be a Par label in accordance with
Par’s customary practices and with the Applicable Law. However, Spectrum’s
name shall be included on the label in accordance with the Applicable Law.

     5.3. Launch Timing. Subject to Par’s evaluation of any legal issues, regulatory issues, and
any supply problems not resulting from a breach of Par’s supply obligations under this Agreement (a
“Launch Problem”), the Commercial Launch of each Product shall take place no later than *** after
receipt of the Regulatory Approvals necessary to sell, market and distribute such Product. The
above notwithstanding, with regards to Products that have received Regulatory Approval prior to the
Effective Date, or receive Regulatory Approval within one hundred and twenty (120) days of the
Effective Date, the Parties agree to work together to set an appropriate time for the Commercial
Launch of such Products. Nothing in this Section shall be construed as requiring Par to launch any
Product it determines in good faith infringes any Third Party Intellectual Property or to sell any
Product at a loss. In the event the Commercial Launch of a Product is delayed due to a Launch
Problem, Par shall use Commercially Reasonable Efforts to resolve such Launch Problem, to the
extent resolvable, and go forward with the Commercial Launch as soon as reasonably practical.

     5.4. Exclusivity. Spectrum agrees that during the term of this Agreement it will develop the
Products in the Territory solely for Par’s marketing, promotion, sale and distribution in the
Territory and will not sell, have sold, manufacture or have manufactured any Product or any
Competing Product for purposes of use, distribution or sale in the Territory or license or enter an
agreement with any Third Party to do any of the foregoing. Par agrees during the term of this
Agreement (i) to source the development of the Products solely and exclusively from Spectrum, (ii)
to manufacture or have manufactured, market, promote, sell and distribute the Products solely and
exclusively in accordance with this Agreement, and (ii) not to develop, manufacture or have
manufactured, market, promote, sell or distribute a Competing Product.

     5.5. Adverse Event Reporting.

5.5.1. Serious Adverse Events (defined below) for the Products of which either
Party becomes aware shall be submitted by such Party to the other Party
within three (3) business days but no later than five (5) calendar days
after the date the first-mentioned Party first became aware of such Serious
Adverse Event. Non-Serious Adverse Events (defined below) for the Products
that are reported to one Party shall be submitted to the other Party no
more than one (1) month from the date received by the first-mentioned
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5.5.2. A “Serious Adverse Event” for the Products is defined as any
untoward medical occurrence that at any dose for any of the Products (a)
results in death, (b) is life-threatening, (c) requires inpatient
hospitalization or prolongation of existing hospitalization, (d) results in
persistent or significant disability/incapacity, (e) is a congenital
anomaly/birth defect, (f) results in drug dependency or drug abuse, (g)
causes cancer, or (h) results in an overdose. A “Non-Serious Adverse
Event” for the Products is defined as an untoward medical occurrence at any
dose for any of the Products that is not a Serious Adverse Event

     5.6. Recall. In the event that either Party believes it may be necessary to conduct a recall,
field correction, market withdrawal, stock recovery, or other similar action with respect to any
Product which was sold under this Agreement (a “Recall”), Spectrum and Par shall promptly consult
with each other as to how best to proceed; it being understood and agreed that the final decision
as to any Recall of any Product shall be made by Par; provided, that neither Party be prohibited
hereunder from taking any action that it is required to take by Applicable Law and respective
national laws. The cost of any Recall of any Product occasioned or required as part of a general
Recall of the products of either Party shall be borne by that Party. Any Recall required because of
the breach of this Agreement by Spectrum, shall be at Spectrum’s sole expense. Any Recall required
because of a negligent act or omission in the manufacture, handling, storage, marketing, promotion,
sale or distribution of Product or other breach of this Agreement by Par shall be at Par’s sole
expense.

     5.7. Marketing Compliance. Par shall comply with, and shall require compliance by its Third
Party contractors with, all Applicable Laws in the conduct of all activities associated with the
marketing of the Products.

     5.8. Expenses. Par shall bear all costs and expenses associated with marketing each Product.

ARTICLE 6. SUPPLY AND PURCHASE

     6.1. General Obligations with Regard to Subcontracting. To the extent that either Party
contracts with any Third Parties in relation to its obligations under this Agreement, such Party
agrees to remain fully responsible to the other Party for such obligations and agrees that the
terms of such agreements will be consistent with the pertinent terms herein, including without
limitation, obligations regarding timing of Product delivery, sales, contractual restrictions
regarding Competing Product competitive activities, inspections, audits, confidentiality
obligations, and obligations of cooperation and communication of information.

     6.2. Commercial Supply Obligation. Par shall be responsible for providing for the commercial
supply of Product for its marketing efforts. Par shall be responsible for executing the necessary
binding supply agreements with a Third Party or Third Parties that obligate such Third Party or
Parties to supply Par with adequate amounts of finished Product and API in order for Par to carry
out its obligations under Section 5.2. Par shall use Commercially Reasonable Efforts to negotiate
supply of Products at a Transfer Price that allows Par to competitively

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market the Products. At Par’s request, Spectrum shall assist Par in finding such Third
Parties and entering into such commercial supply agreements.

     6.3. Notice to Par. During the term of this Agreement, both Parties shall (i) advise the other
Party of any Governmental Authority visits to, or written inquiries about, any facilities or
procedures for the manufacture, Packaging, storage, or handling of any Product within two (2)
business days after notice of such visit or inquiry (or if no advance notice is given, then within
three (3) business days after occurrence of such visit or inquiry), and (ii) furnish the other
Party with copies of any report or correspondence issued by or provided to any Governmental
Authority in connection with such visit or inquiry and reasonably related to the Product. Both
Parties shall furnish notice and a summary of the interaction to the other Party within a
reasonable time period after receipt of any such report or correspondence issued by or provided to
the Governmental Authority in connection with such visit or inquiry. Both Parties shall permit the
relevant Governmental Authorities to inspect its facilities and records in connection with the
activities contemplated by this Agreement with assistance of the other Party where applicable under
the same terms provided hereunder.

     6.4. Inspection by the Parties. Each Party shall permit quality assurance representatives of
the other Party to inspect the manufacturing, distribution and storage facilities and all books and
records of this Party relating to the production of the Product at all times upon thirty (30) days
prior written notice, during normal business hours and on a confidential basis; provided, however,
that such inspections shall be limited to twice annually in the absence of a breach of this
Agreement by the respective Party.

     6.5. Quality Control Agreement. In the event Par enters into an intercompany quality agreement
(whether as a separately executed agreement or as part of a commercial supply agreement) which will
appropriately address regulatory, operational and quality obligations and responsibilities related
to a Product (a “Quality Agreement”), Par shall give Spectrum a copy of such Quality Agreement.

     6.6. Product Representations, Warranties and Covenants.

6.6.1. Par represents, warrants and covenants that:

6.6.1.1. The Products shall materially conform to the applicable Product
Specifications and Quality Agreement, and Par shall not modify the Product
Specifications in a way that requires FDA notice or consent, unless required by
Applicable Law or in order to retain Regulatory Approvals, without the prior
written approval of Spectrum, which approval shall not be unreasonably delayed
or withheld.

6.6.1.2. The Products shall be manufactured, Labeled and Packaged in accordance with
all Applicable Laws and applicable Regulatory Approvals and that all components
of Products and the primary Packaging materials shall be supplied by bona fide
suppliers meeting FDA requirements with regard to drug master files,
certificates of analysis, and the like.

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6.6.1.3. All Product shall be released for sale by Par in accordance with the
applicable ANDA and all Applicable Laws.

6.6.1.4. Par will comply with all Applicable Laws and applicable Regulatory
Approvals in handling, storage and distribution of the Products as well as in
marketing, distribution, promoting and selling the Products.

6.6.1.5. Par will continuously market, promote, distribute and sell the Products to
the extent required by this Agreement within the Territory.

6.6.1.6. PAR MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE.

ARTICLE 7. FINANCIAL PROVISIONS

     7.1. Net Profits.

7.1.1. Net Profits for each Generic Product shall be split *** percent (***%) to
Spectrum and *** percent (***%) to Par.

7.1.2. Net Profits for the Sumatriptan Products shall be split *** percent
(***%) to Spectrum and *** percent (***%) to Par.

7.1.3. Par shall pay to Spectrum its share of Net Profits within *** (***) days
of the end of each calendar quarter in which sales of such Product have
been made by Par (a “Reporting Period”).

7.1.4. In the event that Net Profits is a negative amount for any Reporting
Period, no payment or refund shall be due from Spectrum to Par, in respect
thereof and the Net Profits with respect to the subsequent Reporting
Period, shall be reduced by such negative amount for purposes of
determining Spectrum’s share of the Net Profits for such subsequent
Reporting Period.

     7.2. Milestone Payments.

7.2.1. Par shall pay to Spectrum the amounts listed on Schedule 7.2.1 upon the
FDA granting approval (tentative or otherwise) for marketing of each ***

7.2.2. ***

 

			
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7.2.3. Par’s obligation to pay the above milestones for each *** shall be
subject to Par entering into commercial supply agreements for API and
finished Product, for such ***

7.2.4. All milestone payments due under this Section 7.2, shall be made by Par
within *** of the date they become payable.

     7.3. Records and Audits. Each Party shall have the right once per calendar year, at its own
expense, during the term of this Agreement and for one (1) year thereafter, to have an independent
public accountant, reasonably acceptable to the Party being audited, audit the relevant financial
books and records of account of the other Party at normal business hours, upon reasonable demand,
to determine or verify the amounts due and payable and/or any applicable costs and expenses
hereunder. If errors of *** percent (***%) or more in the auditing Party’s favor are discovered as
a result of such audit, the Party being audited shall reimburse the auditing Party for the expense
of such audit and pay the deficiency with interest immediately. As a condition to such
examination, the independent public accountant selected by the auditing Party may not be hired on a
contingency basis and shall execute a written agreement, reasonably satisfactory in form and
substance to the Party being audited, to maintain in confidence all information obtained during the
course of any such examination except for disclosure to the auditing Party as necessary for the
above purpose.

     7.4. Equity Investment. Subject to Spectrum’s good faith assistance in Par’s due diligence
and Par not identifying a Material Adverse Event during such due diligence, at Spectrum’s request
at any time in the period twenty-four (24) months following the Effective date, Par shall purchase
directly from Spectrum in a private placement transaction up to *** dollars ($***) worth of shares
of Spectrum common stock at a purchase price equal to the fair market value of Spectrum’s common
stock. Prior to the transaction, the Parties shall in good faith negotiate the terms of the
purchase agreement (and other associated documents) which shall include ***

     7.5. Characterization of Payments. Each Party agrees that the payments made to Spectrum
hereunder are not royalty payments.

ARTICLE 8. INTELLECTUAL PROPERTY

     8.1. General ownership. Each Party shall own its own Intellectual Property consistent with
U.S. patent, trademark, and copyright law. Each Party agrees to promptly and fully disclose any
and all Intellectual Property relating to the Products to the other Party. In the event the
Parties jointly develop Intellectual Property related to a Product then the Parties shall own such
Intellectual Property.

 

			
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ARTICLE 9.LITIGATION

     9.1. Sumatriptan Litigation.

9.1.1. ***

9.1.2. Par shall assume all expenses of the Sumatriptan Litigation incurred
after the Effective Date, including those of Spectrum’s current counsel to
the extent relating directly to requested actions or assistance of Par or
Par’s designated counsel.

9.1.3. ***

9.1.4. ***

     9.2. Except as to the Sumatriptan Litigation or any Proceeding subject to either Party’s
indemnification under Article 12, if, at any time on or after the Effective Date, any Party shall
become aware of any Proceeding or threat of any Proceeding by a Third Party alleging that the
manufacture, use or sale of the Products in the Territory infringes the Intellectual Property
rights of any Third Party or otherwise seeking to prevent, or seek damages in relation to, the
marketing of the Product in the Territory (including any product liability claims), then the Party
having such knowledge shall give notice thereof to the other Party as soon as reasonably
practicable. If, at any time on or after the Effective Date, any Party shall become aware of any
Proceeding or threat of any Proceeding by a Third Party or a Governmental Authority related to any
Regulatory Approval (including any citizen’s petitions to the FDA), then the Party having such
knowledge shall give notice thereof to the other Party as soon as reasonably practicable.

     9.3. ***

9.3.1.
***

ARTICLE 10. CONFIDENTIALITY

     10.1. The terms of that certain Confidentiality Agreement by and between the Parties, dated
January 12, 2005 (the “Confidentiality Agreement”) (to the extent such Confidentiality Agreement is
not inconsistent to this Agreement) shall be in addition to the provisions of this Article 10.

 

			
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     10.2. Neither Party shall disclose to any Third Party (other than its parent company
which is to be advised in writing of the confidentiality obligations herein) any Confidential
Information received by it hereunder or use any such Confidential Information for its own benefit
(except as expressly set forth above) or that of any Third Party without the written consent of the
Party that disclosed such Confidential Information. Each Party agrees to protect Confidential
Information received from the other Party at least as well as it would its own proprietary and
confidential information.

     10.3. Each Party shall bind all persons having access through it to any Confidential
Information to take no steps inconsistent with or preventing such Party from carrying out the terms
of this Agreement. Each Party hereby represents to the other that the receiving Party will be
responsible for the acts of any officer and/or employee receiving the Confidential Information.

     10.4. Each Party, at the request of the other, shall return all Confidential Information
disclosed to it hereunder, in whatever form contained, including all notes or memoranda made by its
employees, agents, or representatives obtained or derived from any such Confidential Information,
including any listing which identifies the documents which were provided, except that one copy of
this Agreement may be retained at each Party’s Office of Counsel, to maintain a record of the same.

ARTICLE 11. REPRESENTATIONS AND WARRANTIES

     11.1. Spectrum here hereby represents and warrants that:

11.1.1. Spectrum is a company duly organized, validly existing and in good
standing under the laws of the jurisdiction of its formation;

11.1.2. Spectrum has the power and authority to enter into and be bound by the
terms and conditions of this Agreement and to perform its obligations
hereunder;

11.1.3. Spectrum has taken all necessary action on its part to authorize the
execution and delivery of this Agreement and this Agreement has been duly
executed and delivered on behalf of Spectrum and constitutes a legal,
valid, binding obligation, enforceable against Spectrum in accordance with
its terms;

11.1.4. Spectrum is not, and shall not be during the term of this Agreement be,
subject to any legal, contractual or other restrictions, limitations or
conditions which conflict with its rights and obligations under this
Agreement or which might affect adversely its ability to perform hereunder;
and

11.1.5. Except as set forth in Schedule 11.1.5, Spectrum owns the Regulatory
Approvals or any pending Regulatory Approvals related to the Products clear
of all encumbrances and the marketing, licensing, sale,

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import, manufacturing or importation of any Product will not subject
Spectrum to any royalties or fees.

11.1.6. Spectrum’s designated counsel on the Sumatriptan Litigation is not
compensated on a contingency or incentive basis.

     11.2. Par hereby represents and warrants that:

11.2.1. Par is a company duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation;

11.2.2. Par has the power and authority to enter into and be bound by the terms
and conditions of this Agreement and to perform its obligations hereunder;

11.2.3. Par has taken all necessary action on its part to authorize the
execution and delivery of this Agreement and this Agreement has been duly
executed and delivered on behalf of Par and constitutes a legal, valid,
binding obligation, enforceable against Par in accordance with its terms;
and,

11.2.4. Par is not, and shall not be during the term of this Agreement be,
subject to any legal, contractual or other restrictions, limitations or
conditions which conflict with its rights and obligations under this
Agreement or which might affect adversely its ability to perform hereunder

11.2.5. Par by reason of its business or financial expertise, has the capacity
to protect its own interests in connection with its acquisition of shares
of the Spectrum common stock under Section 7.4 and Par is an “accredited
investor” as defined in Rule 501 of Regulation D of the Securities Act of
1933, as amended (the “Securities Act”).

11.2.6. Par represents, warrants and covenants that if it acquires the shares of
Spectrum common stock under Section 7.4 it shall do so for its own account
and not for the account or on behalf of others, and it shall do so with the
intent of retaining the shares of Spectrum common stock for a period as an
investment and without the present intent to redistribute the shares of
Spectrum common stock.

11.2.7. Par acknowledges that (i) it must and shall bear the economic risk of
holding the shares of Spectrum common stock for an indefinite period of
time because at the time such shares are issued they will not have been
registered under the Securities Act or any other securities law and,
therefore, cannot be sold unless they are subsequently registered under
applicable federal and state securities laws or an exemption from such
registration is available; (ii) the shares may not be resold or transferred
on the official stock transfer records of Spectrum without furnishing to

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Spectrum an opinion of counsel reasonably acceptable to Spectrum that such
sale or transfer of the shares will not violate the registration provisions
of applicable federal and state securities laws; and (iii) certificates
representing the shares shall have endorsed on them a restrictive legend to
this effect.

ARTICLE 12. INDEMNIFICATION

     12.1. Par Indemnification. Par shall at all times during the term of this Agreement and
thereafter, indemnify, defend and hold Spectrum, its officers, directors, employees and agents and
Affiliates, and the successors and assigns of the foregoing (“Spectrum Indemnified Parties”),
harmless from and against all expenses, damages, costs and liabilities of any kind whatsoever,
including legal expenses and reasonable attorneys’ fees as a result of a Third Party claim, suit,
or cause of action (collectively, “Losses”), (i) arising out of any breach by Par of any
representation, warranty or obligation of Par under this Agreement, (ii) by a failure of Par, or
its Affiliates, to comply with all Applicable Laws during the term of this Agreement, or (iii) the
negligence or willful misconduct of Par, except to the extent that such Losses arise solely out of
the negligence or willful misconduct or illegal acts of Spectrum Indemnified Parties.

     12.2. Spectrum Indemnification. Spectrum shall at all times during the term of this Agreement
and thereafter, indemnify, defend and hold Par, its officers, directors, employees and agents and
Affiliates, and the successors and assigns of the foregoing (“Par Indemnified Parties”), harmless
from any and all Losses (i) arising from the negligent or willful misconduct of Spectrum; or (ii) a
breach of Spectrum’s representations and warranties under this Agreement; all except to the extent
such Losses arise solely out of the willful misconduct or negligence or illegal acts of Par
Indemnified Parties.

     12.3. No-Fault Liability. In the event either Party suffers Losses, for which such Party is
not entitled to indemnification under Sections 12.1 or 12.2, arising from or based upon the death
of, or bodily injury to, any person on account of the ingestion, injection or use of any Product,
such Party may seek and shall be entitled to indemnification from the other Party for the
percentage of such Losses equal to the other Party’s share of Net Profits for such Product.

     12.4. Obligations of the Indemnified Party. Each indemnified party under this Agreement shall
give the indemnifying Party prompt written notice of any claim it receives. The indemnifying Party
shall not be liable for attorneys’ fees or expenses of litigation of the indemnified party unless
the indemnified Party gives the indemnifying Party the opportunity to assume full control of the
defense or settlement (subject to the paragraph below). In addition, if the indemnifying Party
assumes such control, it shall only be responsible for the legal fees and litigation expenses of
the attorneys it designates to assume control of the litigation.

     12.5. Settlement. In no event shall the indemnified Party be entitled to settle any of the
above-mentioned claims without the consent of the indemnifying Party, which consent shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing, the indemnifying Party shall not
settle any claim without the indemnified Party’s written consent, which shall not be

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unreasonably withheld or delayed, unless such settlement is solely monetary. This Section
shall not apply to any Proceeding contemplated under Article 9.

ARTICLE 13. LIMITATION OF LIABILITY

     13.1. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, EXCEPT WITH RESPECT TO A
BREACH OF ARTICLE 10 (CONFIDENTIALITY) HEREOF AND EXCEPT WITH RESPECT TO THIRD PARTY CLAIMS
PURSUANT TO THE INDEMNIFICATION OBLIGATIONS SET FORTH IN ARTICLE 12, NEITHER PARTY SHALL BE LIABLE
TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, INCLUDING FOR LOST PROFITS, OR
LOSS OF OPPORTUNITY OR USE OF ANY KIND SUFFERED BY THE OTHER PARTY, WHETHER IN CONTRACT, TORT OR
OTHERWISE.

ARTICLE 14. TERM AND TERMINATION

     14.1. Term. Unless earlier terminated pursuant to this Article 14, the term of this Agreement
shall continue in force and effect on Product by Product basis from the Effective Date until the
date that is ten (10) years following the Commercial Launch of such Product. This Agreement may be
renewed upon mutual written agreement on an annual basis thereafter.

     14.2. Termination for Breach. Either Party may, on a Product by Product basis, terminate this
Agreement or suspend performance under this Agreement upon written notice to the other Party at any
time during the term of this Agreement if the other Party is in material breach of any material
term of this Agreement and has not cured such material breach, if capable of cure, within *** (***)
days after notice requesting cure of the breach, if not capable of cure, upon *** (***) days
notice. In the event of a termination by Par of this Agreement as it relates to any Product due to
a material breach by Spectrum, Spectrum shall transfer to Par, at no cost, the Regulatory Approvals
(or pending Regulatory Approvals is the event an ANDA is not yet approved by the FDA) and shall
retain its exclusive license under Section 5.1, for such Product.

     14.3. Termination by Mutual Consent. This Agreement may be terminated as a whole or on a
product-by-product basis by mutual written consent of both Parties.

     14.4. Unilateral Product Termination. Prior to the filing of an ANDA for a Product, Spectrum
shall have the unilateral right to terminate this Agreement as it applies to a specific Product
upon *** (***) days notice to Par. In the event of such a termination by Spectrum, the exclusivity
provisions set forth in Section 5.4 shall remain in effect for such terminated Product, solely as
they apply to Spectrum, for a period of *** following a termination by Spectrum under this Section,
provided, however, that Spectrum’s obligations with regard to such ANDA shall terminate completely.
Between the time period of the filing of an ANDA and approval of such ANDA for a Product, Spectrum
shall have the unilateral right to terminate this Agreement as it applies to such Product upon ***
(***) days notice to Par. In the event of such a termination by

 

			
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Spectrum, Spectrum’s obligations with regard to such ANDA shall terminate completely and
Spectrum shall, at no cost, transfer all information regarding the ANDA and all rights to the ANDA
to Par to allow Par to seek Regulatory Approval for and market such Product. However, if Par does
obtain Regulatory Approval for such Product, Par shall pay Spectrum the milestone payment for such
Product as described in Sections 7.2.1 and 7.2.2.

     14.5. Termination for Lack of Regulatory Approval. In the event that within *** following the
Effective Date, or some other date as is agreed to by the Parties, Spectrum has failed to file an
ANDA for a particular Product listed on Schedule 1.18, 1.19, 1.20 or 1.37 as of the Effective Date,
Par may at its discretion terminate this Agreement with respect to such Product. In the event that
within *** (or some other date as is agreed to by the Parties) following the date that the Parties,
through the Committee, agree to develop a future Product not on Schedule 1.18, 1.19, 1.20 and 1.37
as of the Effective Date, Spectrum has failed to file an ANDA for such Product, Par may at its
discretion terminate this Agreement with respect to such Product.

     14.6. Termination for Lack of Market Share. In the event that within *** following Commercial
Launch by Par of a ***, Par has been supplied by Spectrum with all its requested quantities of such
Product in a timely manner and is unable to gain a (i) *** percent (***%) share of the total units
sold in the Territory for the prior calendar quarter for a given ***, or (ii) *** percent (***%)
share of the total units sold in the Territory for the prior calendar quarter for a given ***,
Spectrum may change Par’s exclusive license to market such Product under Section 5.1 to a
non-exclusive license. All other obligations between the Parties with regard to such Product shall
remain in force.

     14.7. Termination for a Par Acquisition. In the event that after the Effective Date Par gains
Control over a Third Party or otherwise purchases substantially all of a Third Party’s assets or
Drug Products (a “Par Acquisition”), Par may, at its discretion, on a Product-by-Product basis with
respect to any Product pursue the development, marketing, manufacturing and selling of a
corresponding Competing Product, if through such Par Acquisition, Par gains the right to develop,
market, manufacture, sell or have sold a corresponding Competing Product. In the event Par so
chooses, all of Par’s obligations under this Agreement with respect to the corresponding Product
shall cease and no longer be in effect and Spectrum may either (i) terminate this Agreement solely
as it relates to such Product, or (ii) choose not to terminate this Agreement solely as it relates
to such Product. If Spectrum chooses not to terminate this Agreement solely as it relates to such
Product, Spectrum shall (a) continue to be bound to the exclusivity provisions of this Agreement
set forth in Section 5.4, (b) reimburse Par, and Par shall invoice Spectrum, on a calendar ***
basis, for *** percent (***%) of all costs and expenses incurred by Par the development, marketing,
manufacturing and selling of a such Competing Product, including, legal fees and liabilities,
payments, fees, milestones and royalties, and (c) receive from Par, on a calendar *** basis, ***
percent (***%) of the consideration, including milestones, royalties, or a share of net profits or
net sales, received by Par for the Competing Product.

 

			
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     14.8. First-to-File. Notwithstanding anything to the contrary in this Agreement, Par
shall be free to pursue, and enter into any agreement with a Third Party with respect to any
First-to-File Opportunity (a “First-to-File Agreement”). In the event Par enters into a
First-to-File Agreement all of Par’s obligations under this Agreement with respect to the
corresponding Product shall cease and no longer be in effect and Spectrum may either (i) terminate
this Agreement solely as it relates to such Product, or (ii) choose not to terminate this Agreement
solely as it relates to such Product. If Spectrum chooses not to terminate this Agreement solely
as it relates to such Product, Spectrum shall (a) continue to be bound to the exclusivity
provisions of this Agreement set forth in Section 5.4, (b) reimburse Par, and Par shall invoice
Spectrum, on a calendar *** basis, for *** percent (***%) of all costs and expenses incurred by Par
pursuant to such First-to-File Agreement, including, legal fees and liabilities, payments, fees,
milestones and royalties, and (c) receive from Par, on a calendar *** basis, *** percent (***%) of
all consideration received by Par pursuant to such First-to-File Agreement, including any royalty
or share of net profits or net sales.

     14.9. Survival. Articles 1, 8, 10, 12, 13, 14, 16 shall survive any expiration or termination
of this Agreement. In addition, unless otherwise expressly set forth herein, no expiration or
termination of this Agreement shall have any affect on any payment, obligation, representation or
warranty under this Agreement accruing or arising prior to such expiration or termination.

ARTICLE 15. INSURANCE

     15.1. Each Party shall maintain at all times during the term of this Agreement product
liability coverage with an insurance company or companies having an A.M. Best rating of A — VII or
better to cover its activities related to this Agreement. Each Party shall promptly deliver to the
other a certificate evidencing such coverage. Additionally such insurance coverage shall be in
place prior to the Commercial Launch and shall remain in full force for so long as any Product is
being sold pursuant to this Agreement.

ARTICLE 16. MISCELLANEOUS

     16.1. Interpretation and Construction. Unless the context of this Agreement otherwise
requires, (i) the terms “include,” “includes,” or “including” shall be deemed to be followed by the
words “without limitation” unless otherwise indicated; (ii) words using the singular or plural
number also include the other; (ii) the terms “hereof,” “herein,” “hereby,” and derivative or
similar words refer to this entire Agreement; (iv) the terms “Article,” “Section” and “Exhibit”
refer to the specified Article, Section and Exhibit of this Agreement, and (v) words of any gender
include each other gender . Whenever this Agreement refers to a number of days, unless otherwise
specified, such number shall refer to calendar days. The headings and paragraph captions in this
Agreement are for reference and convenience purposes only and shall not affect the meaning or
interpretation of this Agreement. This Agreement shall not be interpreted or constructed in favor
of or against either Party because of its effort in preparing it.

 

			
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     16.2. Independent Contractor Status. It is understood and agreed that nothing in this
Agreement or any agreements related hereto is intended to nor shall create a partnership between
the Parties. The Parties hereto are independent contractors and are engaged in the operation of
their own respective businesses, and neither Party hereto is to be considered the agent, partner,
joint venturer or employee of the other Party for any purpose whatsoever and neither Party shall
have any authority to enter into any contracts or assume any obligations for the other Party nor
make any warranties or representations on behalf of that other Party.

     16.3. Waiver. The waiver by either Party of a breach of any provisions contained herein shall
be in writing and shall in no way be construed as a waiver of any succeeding breach of such
provision or the waiver of the provision itself.

     16.4. Assignment. This Agreement shall be binding upon and inure to the benefit of each of
the Parties hereto and their respective successors and approved assigns, provided neither Party may
assign this Agreement without the prior written consent of the other Party except that no consent
shall be required if such assignment is in connection with a merger or sale of all or substantially
all of the assets of the assigning Party.

     16.5. Modification. This Agreement may not be changed, modified, amended or supplemented
except by an express written instrument signed by both Parties.

     16.6. Severability. If any provision of this Agreement shall be held illegal or
unenforceable, that provision shall be limited or eliminated to the minimum extent necessary so
that this Agreement shall otherwise remain in full force and effect and enforceable.

     16.7. Further Assurances. Each Party hereto agrees to execute, acknowledge and deliver such
further instruments and documents, and to do all such other acts, as may be reasonably necessary or
appropriate in order to carry out the purposes and intent of this Agreement.

     16.8. Use of Party’s Name. Except as to Labeling activities in connection with Section 5.2.3,
no right, express or implied, is granted by this Agreement to either Party to use in any manner the
name of the other or any other trade name or trademark of the other in connection with the
performance of this Agreement.

     16.9. Notice and Reports. All notices, requests, demands and other communications required or
permitted to be given under this Agreement shall be in writing and addressed to the address first
set forth above with a copy to the legal department of the respective Party at the addresses set
forth in the introductory paragraph to this agreement (or such other address as the Parties may
designate by written notice in the manner aforesaid), and shall be deemed to be given when received
if personally delivered; when transmitted if transmitted by telecopy, electronic or digital
transmission method; the day after it is sent, if sent for next day delivery to a domestic address
by recognized overnight delivery service (e.g., Federal Express); on the fourth day after it is
sent, if sent for express delivery to a foreign address by recognized express delivery service
(e.g. Federal Express); and upon receipt, if sent by certified or registered mail, return receipt
requested.

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     16.10. Governing Law. This Agreement shall be governed by and construed in accordance with
the internal laws of the State of New York, without giving effect to principles of conflicts of
law. The Parties irrevocably agree that the federal district courts in the State of New York shall
have exclusive jurisdiction to deal with any disputes arising out of or in connection with this
Agreement and that, accordingly, any proceedings arising out of or in connection with this
Agreement shall be brought in the U.S. District Court for the Southern District of New York.
Notwithstanding the foregoing, if there is any dispute for which the federal district courts in the
State of New York do not have subject matter jurisdiction, the state courts in New York shall have
jurisdiction. In connection with any dispute arising out of or in connection with this Agreement,
each Party hereby expressly consents and submits to the personal jurisdiction of the federal and
state courts in the County, City and State of New York.

     16.11. Force Majeure. A Party shall not be liable for nonperformance or delay in performance,
except for defaulted obligations of payment, to the extent that such nonperformance or delay in
performance is caused by any event reasonably beyond the control of such Party including, but not
limited to wars, hostilities, revolutions, riots, civil commotion, national emergency, strikes,
lockouts, unavailability of supplies, epidemics, fire, flood, earthquake, force of nature,
explosion, terrorist act, embargo, or any other act of God, or any law, proclamation, regulation,
ordinance, or other act or order of any court, government or governmental agency (each a “Force
Majeure Event”). In the event of any such delay, the delayed Party may defer its performance for a
period equal to the time of such delay, provided that the delayed Party gives the other Party
written notice thereof promptly and, in any event, within thirty (30) calendar days of discovery
thereof, and uses its good faith efforts to cure the excused breach.

     16.12. No Third Party Benefit. This Agreement shall be binding upon and inure solely to the
benefit of the Parties hereto, their successors and permitted assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other Person or Persons any
right, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

     16.13. Entire Agreement. This Agreement and any Schedules attached hereto and the
Confidentiality Agreement, constitute the entire agreement between Spectrum and Par with respect to
the Products and supersede all prior representations, understandings and agreements with respect to
such Products. This Agreement and any Schedules attached hereto shall prevail over those of any
purchase order, agreement, or other document or understanding any kind pertaining to such sale,
except that to the extent there is a conflict between the standard shipping terms and this
Agreement, the later shall control.

     16.14. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall for all purposes are deemed to be an original and all of which shall constitute on
instrument.

     16.15. Public Announcements. Except as agreed to by the Parties, neither Party shall make any
publicity releases, interviews or other dissemination of information concerning this Agreement or
its terms, or either Party’s performance hereunder, to communication media, financial analysts or
others without the prior written approval of the other Party, which approval shall not be
unreasonably withheld, delayed or conditioned. Notwithstanding anything to the

24

 

contrary in this Agreement, the Parties understand and agree that either Party, may, if so
required, disclose some or all of the information included in this Agreement or other Confidential
Information of the other Party (i) in order to comply with its obligations under the law,
including the United States Securities Act of 1933, the United States Securities Exchange Act of
1934 (“SEC”), (ii) the listing standards or agreements of any national or international securities
exchange or The NASDAQ Stock Market or other similar laws of a Governmental Authority, (iii) to
respond to an inquiry of a Governmental Authority or regulatory authority as required by law, or
(iv) in a judicial, administrative or arbitration proceeding. In any such event the Party making
such disclosure shall (A) provide the other Party with as much advance notice as reasonably
practicable of the required disclosure, (B) cooperate with the other Party in any attempt to
prevent or limit the disclosure, and (C) limit any disclosure to the specific purpose at issue.

[Signature Page Follows]

25

 

[Signature Page to Development and Marketing Agreement]

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

	 	 	 	 	 
	 

	 	 	 	 
	SPECTRUM PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Rajesh C. Shrotriya, M.D.	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	Rajesh C. Shrotriya, M.D.	 	 
	 
	 	 	 	 
	Title:

	 	Chairman, CEO and President	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	PAR PHARMACEUTICAL, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Scott L. Tarriff	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	Scott L. Tarriff	 	 
	 
	 	 	 	 
	Title:

	 	President and CEO	 	 

 

 

SCHEDULE 1.18

	 	 	 	 	 	 	 	 	 
	Group A Generic Products
	 	 	 	 	Dosage Form;	 	 	 	 
	NDA No.	 	Reference Listed Drug	 	Route	 	Strength	 	Package Forms
	 
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

 

SCHEDULE 1.19

	 	 	 	 	 	 	 	 	 
	Group B Generic Products
	 	 	 	 	Dosage Form;	 	 	 	 
	NDA No.	 	Reference Listed Drug	 	Route	 	Strength	 	Package Form
	 
	019880

	 	Paraplatin (carboplatin)
	 	Injectable;
Injection
	 	10MG/ML
	 	5ml multiple dose

glass vial
	019880

	 	Paraplatin (carboplatin)
	 	Injectable;
Injection
	 	10MG/ML
	 	15ml fill in 20ml

multiple dose glass
vial
	019880

	 	Paraplatin (carboplatin)
	 	Injectable;
Injection
	 	10MG/ML
	 	45ml fill in 50ml

multiple dose glass

vial
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

 

SCHEDULE 1.20

	 	 	 	 	 	 	 	 	 
	Group C Generic Products
	 	 	 	 	Dosage Form;	 	 	 	 
	NDA No.	 	Reference Listed Drug	 	Route	 	Strength	 	Package Form
	 
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	 
	 	 	 	 	 	 	 	 
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

 

SCHEDULE 1.37

	 	 	 	 	 	 	 	 	 
	Sumatriptan Products
	NDA	 	 	 	Dosage Form;	 	 	 	 
	No.	 	Reference Listed Drug	 	Route	Strength	Package Form
	 
	020080

	 	Imitrex (sumatriptan succinate)
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

 

SCHEDULE 7.2.1

	 	 	 	 	 	 	 	 	 
	NDA	 	 	 	Dosage Form;	 	 	 	Milestone
	No.	 	Reference  Listed Drug 	 	Route	 	Strength	 	Amount
	 
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	 
	 	 	 	 	 	 	 	 
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***
	***

	 	***
	 	***
	 	***
	 	***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.

 

 

SCHEDULE 11.1.5

***

 

			
	Certain information on this page has been omitted and filed separately with the Securities and
Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions.Exhibit 10.2

 

EXHIBIT 10.2

VOTING AGREEMENT

BY AND AMONG

SPECTRUM PHARMACEUTICALS, INC.,

AND

CERTAIN STOCKHOLDERS OF TARGENT INC.

Dated as of March 17, 2006

 i

 

 

VOTING AGREEMENT

          This VOTING AGREEMENT (this “Agreement”) is entered into as of March 17, 2006, by and
among Spectrum Pharmaceuticals, Inc., a Delaware corporation (“Acquiror”), and the
stockholders of Targent Inc., a Delaware corporation (the “Company”) listed on Schedule
A hereto (the “Stockholders”).

W I T N E S S E T H:

          WHEREAS, as of the date hereof, the Stockholders collectively “beneficially own” (as such term
is defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) and are
entitled to dispose of (or to direct the disposition of) and to vote (or to direct the voting of)
932,000 shares of common stock, par value $0.001 per share (the “Common Stock”), of the
Company, 20 shares of the Company’s Class A Preferred Stock, par value $0.001 per share (the
“Series A Preferred Stock”), 260 shares of the Company’s Class B Preferred Stock, par value
$0.001 per share (the “Series B Preferred Stock”), 3,177,300 shares of the Company’s Class
C Preferred Stock, par value $0.001 per share (the “Series C Preferred Stock,” and,
together with the Series A Preferred Stock and Series B Preferred Stock, the “Preferred
Stock”), warrants to purchase up to 449,246 shares of Common Stock (the “Common Stock
Warrants”), warrants to purchase up to 139 shares of Series B Preferred stock (the “Series
B Preferred Stock Warrants,” and, together with the Common Stock Warrants, the
“Warrants”) and options to purchase up to 515,000 shares of Common Stock (the
“Options”) (such shares of Common Stock and Preferred Stock, together with any securities
of the Company held by the Stockholders that are entitled to vote on a sale of assets by the
Company, and any other shares of Common Stock, Preferred Stock or other securities of the Company
the voting power over which is acquired by any Stockholder during the Voting Period (defined
below), including, without limitation, any shares of Common Stock issuable upon conversion of
Preferred Stock, or upon exercise of the Common Stock Warrants or Options, or any Series B
Preferred Stock issuable upon exercise of the Series B Preferred Stock Warrants, are collectively
referred to herein as the “Subject Shares”);

          WHEREAS, Acquiror and the Company propose to enter into an Asset Purchase Agreement, dated as
of the date hereof (the “Asset Purchase Agreement”), pursuant to which Acquiror will
acquire certain assets and liabilities of the Company (the “Asset Purchase”); and

          WHEREAS, as a condition to the willingness of Acquiror to enter into the Asset Purchase
Agreement, and as an inducement and in consideration therefor, Stockholders are executing this
Agreement.

          NOW, THEREFORE, in consideration of the foregoing and the mutual premises, representations,
warranties, covenants and agreements contained herein, the parties hereto, intending to be legally
bound, hereby agree as follows:

2

 

ARTICLE I.

DEFINITIONS

          Section 1.1 Capitalized Terms. For purposes of this Agreement, capitalized terms used and not
defined herein shall have the respective meanings ascribed to them in the Asset Purchase Agreement.

          Section 1.2 Other Definitions. For purposes of this Agreement:

          (a) “Affiliate” means, with respect to any specified Person, any Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, the Person specified. For purposes of this Agreement, with respect to the
Stockholders, the term “Affiliate” shall not include the Company and the Persons that directly, or
indirectly through one or more intermediaries, are controlled by the Company.

          (b) “Person” means any individual, partnership, corporation, limited liability company,
association, business, trust, government or political subdivision thereof, governmental agency or
other entity.

          (c) “Proposed Acquisition Transactions” means any sale of all or any portion of the Conveyed
Assets or the Company’s business (except in the ordinary course of business), or of any shares of
capital stock of the Company, or any merger, consolidation, liquidation, dissolution or similar
transaction involving the Company, to or with any Person or group, other than Acquiror and its
Representatives.

          (d) “Representative” means, with respect to any particular Person, any director, officer,
employee, accountant, consultant, legal counsel, investment banker, advisor, agent or other
representatives of such Person.

ARTICLE II.

VOTING AGREEMENT AND IRREVOCABLE PROXY

     Section 2.1 Agreement to Vote the Subject Shares. Each Stockholder, in its capacity as such,
hereby agrees that, during the period commencing on the date hereof and continuing until the
termination of this Agreement (such period, the “Voting Period”), at any meeting (or any
adjournment or postponement thereof) of the Company’s stockholders, however called, or in
connection with any written consent of the Company’s stockholders, such Stockholder shall vote (or
cause to be voted) its Subject Shares (x) in favor of the approval of the terms of the Asset
Purchase Agreement, the Asset Purchase and the other transactions contemplated by the Asset
Purchase Agreement (and any actions required in furtherance thereof), (y) against any action,
proposal, transaction or agreement that would result in a breach in any respect
of any covenant, representation or warranty or any other obligation or agreement of the
Company contained in the Asset Purchase Agreement or of the Stockholders contained in this
Agreement, and (z) except with the written consent of Acquiror, against the following actions or
proposals (other than the transactions contemplated by the Asset Purchase Agreement): (i) any
Proposed Acquisition Transaction; and (ii) (A) any change

3

 

in the persons who constitute the board
of directors of the Company that is not approved in advance by at least a majority of the persons
who were directors of the Company as of the date of this Agreement (or their successors who were so
approved); (B) any material change in the present capitalization of the Company or any amendment of
the Company’s certificate of incorporation or bylaws; (C) any other material change in the
Company’s corporate structure or business; or (D) any other action or proposal involving the
Company that is intended, or could reasonably be expected, to prevent, impede, interfere with,
delay, postpone or adversely affect the transactions contemplated by the Asset Purchase Agreement;
provided, however, that (i) nothing in this Agreement shall be interpreted as obligating the
Stockholders to exercise any warrants or other rights to acquire shares of Common Stock or
Preferred Stock and (ii) nothing in this Agreement shall restrict the Stockholders from voting to
approve a plan of liquidation for the Company (provided such liquidation becomes effective after
the Closing and such approval will not prevent, impede, interfere with, delay, postpone or
adversely affect the transactions contemplated by the Asset Purchase Agreement). Any such vote
shall be cast or consent shall be given in accordance with such procedures relating thereto so as
to ensure that it is duly counted for purposes of determining that a quorum is present and for
purposes of recording the results of such vote or consent. Each Stockholder agrees not to enter
into any agreement or commitment with any Person the effect of which would be inconsistent with or
violative of the provisions and agreements contained in this Article II.

          Section 2.2 Grant of Irrevocable Proxy. The Stockholders hereby appoint Acquiror and any
designee of Acquiror, and each of them individually, as the Stockholders’ proxy and
attorney-in-fact, with full power of substitution and resubstitution, to vote or act by written
consent during the Voting Period with respect the Subject Shares in accordance with Section 2.1.
This proxy is given to secure the performance of the duties of the Stockholders under this
Agreement. The Stockholders shall promptly cause a copy of this Agreement to be deposited with the
Company at its principal place of business. The Stockholders shall take such further action or
execute such other instruments as may be necessary to effectuate the intent of this proxy.

          Section 2.3 Revocation of Prior Proxies. The Stockholders represent and warrant that all
proxies (if any) given in respect of the Subject Shares on or before the date hereof (other than
the proxy granted hereunder) are not irrevocable and that all such proxies are hereby revoked.

          Section 2.4 Nature of Irrevocable Proxy. The proxy and power of attorney granted pursuant to Section 2.2 by each Stockholder shall
be irrevocable during the Voting Period, shall be deemed to be coupled with an interest sufficient
in law to support an irrevocable proxy in accordance with the provisions of Section 212 of the
Delaware General Corporation Law, as amended. The power of attorney granted by each Stockholder
herein is a durable power of attorney and shall survive the dissolution, bankruptcy, death or
incapacity of such Stockholder. The proxy and power of attorney granted hereunder shall terminate
upon the termination of this Agreement.

4

 

          Section 2.5 Agreement to Vote Spectrum Common Stock. For a period of one year after the
Closing, each Stockholder agrees to vote each share of common stock of the Acquiror, par value
$.001, that were issued by Acquiror pursuant to Section 2.3 of the Asset Purchase Agreement
(“Spectrum Common Stock”), that such Stockholder then owns, as recommended by the
Acquiror’s board of directors in all matters submitted to the vote of the Acquiror’s stockholders
on which the holder of such Spectrum Common Stock is entitled to vote; provided, however, that such
recommendation shall have been approved by a majority of the independent members of the board of
directors, as defined by the rules of the NASDAQ Stock Market; and provided further that such
recommendation would not affect any Stockholder disproportionally as compared to other holders of
Spectrum Common Stock. This covenant shall survive the termination of this Agreement for the one
year period set forth above.

ARTICLE III.

COVENANTS

          Section 3.1 Generally.

          (a) Except for pledges in existence as of the date hereof, each Stockholder agrees that during
the Voting Period, except as contemplated by the terms of this Agreement, it shall not sell,
transfer, tender, pledge, encumber, assign or otherwise dispose of (collectively, a
“Transfer”), or enter into any contract, option or other agreement with respect to, or
consent to, a Transfer of, any or all of the Subject Shares; provided, however, that (i) each
Stockholder may, with the consent of Acquiror, pledge or encumber any Subject Shares so long as
such pledge or encumbrance would not impair any Stockholder’s ability to perform its obligations
under this Agreement; and (ii) nothing herein shall restrict a Stockholder from exercising any
Options or Warrants or converting any shares of Preferred Stock into Common Stock or approving a
plan of liquidation for the Company (provided such liquidation becomes effective after the Closing
and such approval will not prevent, impede, interfere with, delay, postpone or adversely affect the
transactions contemplated by the Asset Purchase Agreement).

          (b) In the event of a stock dividend or distribution, or any change in the Common Stock by
reason of any stock dividend or distribution, split-up, recapitalization, combination, exchange of
shares or the like, the term “Subject Shares” shall be deemed to refer to and include the
Subject Shares as well as all such stock
dividends and distributions and any securities into which or for which any or all of the
Subject Shares may be changed or exchanged or which are received in such transaction.

          Section 3.2 Standstill Obligations of Stockholder. Each Stockholder covenants and agrees with
Acquiror that, during the Voting Period:

          (a) Each Stockholder shall not, nor shall any Stockholder permit any controlled Affiliate of
such Stockholder to, nor shall any Stockholder act in concert with or permit any controlled
Affiliate to act in concert with any Person to, deposit any shares of Common Stock or Preferred
Stock in a voting trust or subject any shares of Common

5

 

Stock or Preferred Stock to any arrangement
or agreement with any Person with respect to the voting of such shares, except as provided by
Article II of this Agreement.

          (b) Each Stockholder shall not, and shall cause its Representatives (including without
limitation investment bankers, attorneys and accountants) not to, directly or indirectly, enter
into, solicit, initiate or continue any discussions or negotiations with, or encourage or respond
to any inquiries or proposals by, or participate in any negotiations with, or provide any
information to, or otherwise cooperate in any other way with, any Person, other than Acquiror and
its Representatives, relating to any Proposed Acquisition Transaction. Each Stockholder hereby
represents that it is not now engaged in discussions or negotiations with any party other than
Acquiror with respect to any Proposed Acquisition Transaction. Each Stockholder shall not,
directly or indirectly, through any officer, director, employee, representative, agent or
otherwise, solicit, initiate or encourage the submission of any proposal or offer from any Person
relating to any Proposed Acquisition Transaction, or participate in any negotiations regarding, or
furnish to any other person any information with respect to the Company for the purposes of, or
otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any
effort or attempt by any other person to seek or effect any Proposed Acquisition Transaction. Each
Stockholder will notify Purchaser immediately if any Person makes any proposal, offer, inquiry, or
contact with respect to any of the foregoing.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF EACH STOCKHOLDER

          Each Stockholder hereby represents and warrants to Acquiror with respect to such Stockholder
(and not with respect to any other Stockholder) as follows:

          Section 4.1 Ownership of Shares. As of the date hereof, such Stockholder is the lawful owner
of the Subject Shares denoted as being owned by such Stockholder on Schedule A and has the sole
power to vote (or cause to be voted) such Subject Shares. Except as set forth on Schedule A to
this Agreement, neither such Stockholder nor any Affiliate of such Stockholder owns or holds any
right to acquire any additional shares of any class of capital stock of the Company or other
securities of the Company or any interest therein or any voting rights with respect to any
securities of the Company. Such Stockholder has
good and valid title to the Subject Shares denoted as being owned by such Stockholder on
Schedule A to this Agreement, free and clear of any and all pledges, mortgages, liens, charges,
proxies, voting agreements, encumbrances, adverse claims, options, security interests and demands
of any nature or kind whatsoever, other than those created by this Agreement or as could not
reasonably be expected to impair any Stockholder’s ability to perform its obligations under this
Agreement.

     Section 4.2 Authority; No Conflicts. Such Stockholder has all requisite power, authority and
capacity to enter into this Agreement and to consummate the transactions contemplated hereby. This
Agreement constitutes a valid and binding obligation of such Stockholder enforceable against such
Stockholder in accordance with its terms. (i) No filing with any governmental authority, and no
authorization, consent or approval of any other Person is necessary for the execution of this
Agreement by such

6

 

Stockholder and the consummation by such Stockholder of the transactions
contemplated hereby and (ii) none of the execution and delivery of this Agreement by such
Stockholder, the consummation by such Stockholder of the transactions contemplated hereby or
compliance by such Stockholder with any of the provisions hereof shall (A) conflict with or result
in any breach of the organizational documents of any such Stockholder, (B) result in, or give rise
to, a violation or breach of or a default under any of the terms of any material contract,
understanding, agreement or other instrument or obligation to which such Stockholder is a party or
by which such Stockholder or any of its Subject Shares or assets may be bound, or (C) violate any
order, writ, injunction, decree, judgment, statute, rule or regulation applicable to such
Stockholder, except for any of the foregoing as could not reasonably be expected to impair such
Stockholder’s ability to perform its obligations under this Agreement.

          Section 4.3 Reliance by Acquiror. Such Stockholder understands and acknowledges that Acquiror
is entering into the Asset Purchase Agreement in reliance upon the execution and delivery of this
Agreement by the Stockholders.

ARTICLE V.

TERMINATION

          Section 5.1 Termination. This Agreement shall terminate, and none of Acquiror or the
Stockholders shall have any rights or obligations hereunder and this Agreement shall become null
and void and have no effect upon the earliest to occur of (i) the mutual consent of Acquiror and
the Stockholders, (ii) the effective time of the Closing, and (iii) the date of termination of the
Asset Purchase Agreement in accordance with its terms; provided, however, that termination of this
Agreement shall not prevent any party hereunder from seeking any remedies (at law or in equity)
against any other party hereto for such party’s breach of any of the terms of this Agreement.
Notwithstanding the
foregoing, Section 2.5 and Sections 6.1 through 6.14, inclusive, of this Agreement shall
survive the termination of this Agreement.

ARTICLE VI.

MISCELLANEOUS

          Section 6.1 Further Assurances. Each Stockholder will, from time to time, execute and
deliver, or cause to be executed and delivered, such additional or further consents, documents and
other instruments as Acquiror may reasonably request for the purpose of effectively carrying out
the transactions contemplated by this Agreement.

          Section 6.2 Stockholder Capacity. Each Stockholder enters into this Agreement solely in such
Stockholder’s capacity as the record and beneficial owner of the Subject Shares. If any Stockholder
is or becomes during the term hereof a director or officer of the Company, such Stockholder makes
no agreement or understanding in this Agreement in Stockholder’s capacity as such director or
officer. Nothing in this Agreement shall limit or affect any actions taken by any Stockholder in
such Stockholder’s capacity as an officer or director of the Company.

7

 

          Section 6.3 Fees and Expenses. Except as provided below, each of the parties shall be
responsible for its own fees and expenses (including, without limitation, the fees and expenses of
financial consultants, investment bankers, accountants and counsel) (collectively, “Fees”)
in connection with the entering into of this Agreement and the consummation of the transactions
contemplated hereby and by the Asset Purchase Agreement.

          Section 6.4 Amendments, Waivers, etc. This Agreement may not be amended, changed,
supplemented, waived or otherwise modified, except upon the execution and delivery of a written
agreement executed by each of the parties hereto. The failure of any party hereto to exercise any
right, power or remedy provided under this Agreement or otherwise available in respect hereof at
law or in equity, or to insist upon compliance by any other party hereto with its obligations
hereunder, and any custom or practice of the parties at variance with the terms hereof shall not
constitute a waiver by such party of its right to exercise any such or other right, power or remedy
or to demand such compliance.

          Section 6.5 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event any of the provisions of this Agreement were not to be performed in accordance
with the terms hereof and that the parties shall be entitled to specific performance of the terms
hereof in addition to any other remedies at law or in equity.

          Section 6.6 Notices. Any notices or other communications required or permitted under, or
otherwise in connection with this Agreement shall be in writing and shall be deemed to have been
duly given when delivered in person or upon confirmation of receipt when transmitted by facsimile
transmission (with confirmation) or on receipt after dispatch by registered or certified mail,
postage prepaid, addressed, or on the next Business Day if transmitted by national overnight
courier, in each case as follows:

          (a) if to the Company or the Stockholders, to:

Targent, Inc.

181 Cherry Valley Road

Princeton, NJ 08540

Telephone: (609) 683-9322 x22

Facsimile: (609) 683-7524

Attention: Robert F. Johnston

with a copy (which shall not constitute notice) to:

Drinker Biddle & Reath LLP

105 College Road East

Princeton, NJ 08542

Telephone: (609) 716-6504

Facsimile: (609) 799-7000

Attention: John E. Stoddard III, Esq.

8

 

          (b) if to Acquiror, to:

Spectrum Pharmaceuticals, Inc.

157 Technology Drive

Irvine, California 92618

Telephone: (949) 788-6700

Facsimile: (949) 788-6706

Attention: William N. Pedranti, Esq.

with a copy (which shall not constitute notice) to:

Latham & Watkins LLP

650 Town Center Drive, 20th Floor

Costa Mesa, California 92626-1925

Telephone: (714) 540-1235

Facsimile: (714) 755-8290

Attention: Cary K. Hyden, Esq.

          Section 6.7 Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

          Section 6.8 Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the
extent possible.

          Section 6.9 Entire Agreement. This Agreement (together with the Asset Purchase Agreement, to
the extent referred to herein) constitutes the entire agreement of the parties and supersedes all
prior agreements and undertakings, both written and oral, between the parties, or any of them, with
respect to the subject matter hereof.

          Section 6.10 Assignment. This Agreement shall not be assigned by operation of law or
otherwise without the prior written consent of each of the parties.

          Section 6.11 Parties in Interest. This Agreement shall be binding upon and inure solely to
the benefit of each party hereto and their respective successors and assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer

9

 

upon any other Person any right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement.

          Section 6.12 Mutual Drafting. Each party hereto has participated in the drafting of this
Agreement, which each party acknowledges is the result of extensive negotiations between the
parties.

          Section 6.13 Governing Law. This Agreement and the transactions contemplated hereby, and all
disputes between the parties under or related to the Agreement or the facts and circumstances
leading to its execution, whether in contract, tort or otherwise, shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard to the application
of Delaware principles of conflicts of laws.

          Section 6.14 Counterparts. This Agreement may be executed in counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall constitute one and
the same agreement.

[Remainder of Page Intentionally Left Blank]

10

 

          IN WITNESS WHEREOF, Acquiror and Stockholders have caused this Agreement to be duly executed
as of the day and year first above written.

	 	 	 	 	 
	 	 	SPECTRUM PHARMACEUTICALS INC.,
	 	 	a Delaware corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Rajesh C. Shrotriya, M.D.
	 

	 	 	 	 
	 

	 	 	 	Name: Rajesh C. Shrotriya, M.D.
	 

	 	 	 	Title:    Chairman, CEO and President
	 
	 	 	 	 
	 	 	TARGENT PHARMACEUTICALS, LLC.,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Seth Lederman
	 

	 	 	 	 
	 

	 	 	 	Name: Seth Lederman
	 

	 	 	 	Title: Managing Member
	 
	 	 	 	 
	 	 	SETH LEDERMAN
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Seth Lederman
	 

	 	 	 	 
	 

	 	 	 	Name: Seth Lederman

 

 

	 	 	 	 	 
	 	 	ROBERT F. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert F. Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Robert F. Johnston
	 
	 	 	 	 
	 	 	LYNN D. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lynn D. Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Lynn D. Johnston

 

 

	 	 	 	 	 
	 	 	HEPHAESTOS II TRUST
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Trustee
	 
	 	 	 	 
	 	 	11/6/78 TRUST FBO WILLIAM M. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Trustee
	 
	 	 	 	 
	 	 	11/6/78 TRUST FBO BRADFORD D. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Trustee
	 
	 	 	 	 
	 	 	11/6/78 TRUST FBO ALEXANDRA F. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Trustee

 

 

	 	 	 	 	 
	 	 	PATRICK MAGUIRE
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Maguire
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Maguire

 

 

	 	 	 	 	 
	 	 	WILLIAM M. JOHNSTON GST DATED 6/1/04
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Co-Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Williams
	 

	 	 	 	 
	 

	 	 	 	Name: John Williams, Co-Trustee
	 
	 	 	 	 
	 	 	BRADFORD D. JOHNSTON GST DATED 1/29/02
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Co-Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Williams
	 

	 	 	 	 
	 

	 	 	 	Name: John Williams, Co-Trustee
	 
	 	 	 	 
	 	 	ALEXANDRA F. JOHNSTON GST DATED 2/25/04
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Co-Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Williams
	 

	 	 	 	 
	 

	 	 	 	Name: John Williams, Co-Trustee
	 
	 	 	 	 
	 	 	7/15/99 TRUST AGREEMENT OF WILLIAM M. JOHNSTON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Johnston, Co-Trustee
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William Johnston
	 

	 	 	 	 
	 

	 	 	 	Name: William Johnston, Co-Trustee

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