Document:

Purchase and Sale Agreement dated April 28,2004

 Exhibit 10.23 
  
 

 
  
 Agreement

  
 Galen Holdings PLC 
  
 And 
  
 Nelag Limited 
  
 And 
  
 Galen Limited 
  
 And 
  
 Galen (Chemicals) Limited 
  
 For the sale and purchase of all of the issued shares of Galen (UK) Limited and its
Subsidiaries, Galen Rhodes Limited, Galen Pharmaceuticals Limited, Galen Healthcare Limited and Chargelink Limited 
  
 28 April 2004 
  

 THIS AGREEMENT is made on 28 April 2004  
  
 BETWEEN: 
  

	(1)	NELAG LIMITED (No. NI49716) whose registered office is at Almac House, 20 Seagoe Industrial Estate, Craigavon, Northern Ireland, BT63 5QD (the
“Buyer”); 

  

	(2)	GALEN HOLDINGS PLC (No. NI25836) whose registered office is at Old Belfast Road, Millbrook, Larne, Co. Antrim, Northern Ireland, BT40 2SH (the
“Seller”); 

  

	(3)	GALEN LIMITED (No. NI25836) whose registered office is at Unit 22, Seagoe Industrial Estate, Craigavon, Northern Ireland BT63 5UA (“Galen”); and

  

	(4)	GALEN (CHEMICALS) LIMITED (No. 113259) whose registered office is at 4 Adelaide Street, Dun Laoghaire, County Dublin, Ireland (“Galen Chemicals”).

  
 RECITALS 
  

	(A)	The Seller is the ultimate parent of the Target Group (as hereinafter defined) and as ultimate beneficial owner of the Shares (as hereinafter defined) is able to procure the
transfer of the Shares. 

  

	(B)	The Seller has agreed to sell, and the Buyer has agreed to purchase, the legal and beneficial interest in the Shares, being the whole issued share capital of the Target Group.

  

	(C)	By a business transfer agreement dated 27 April 2004, Galen and Galen Chemicals agreed to sell and the Buyer agreed to purchase, certain business and assets of the Sellers (as
defined in said agreement) subject to the terms of such agreement. 

  

	(D)	In consideration of the Seller agreeing to sell the Shares to the Buyer, the Buyer has agreed to the variation of certain rights, obligations and liabilities of the Seller and Buyer
in respect of the Business Transfer Agreement (as hereinafter defined) as more particularly set out paragraphs 3, 3.1, 3.2. and 3.3 of schedule 4 to this agreement. 

  

	(E)	Solely for the purpose of giving effect to the variations referred to in recital (D), Galen and Galen Chemicals have agreed to join as parties to this agreement.

  
 THE PARTIES AGREE AS FOLLOWS: 
  

	1.	INTERPRETATION 

  

	1.1	In this agreement the following words and expressions and abbreviations have the following meanings, unless the context otherwise requires: 

  
 “Accounts” means the audited statutory financial statements
of each Target Group Company comprising the balance sheet, profit and loss account and cash flow statements of each Target Group Company, together in each case with the notes thereon, directors’ reports and auditors’ report, as at and for
the financial period ended on the Accounts Date; 
  
 “Accounts Date” means 30 September 2003; 
  
 “Agreed Form” means, in relation to a document, in the form agreed between the parties on or prior to the date hereof and for the purposes of identification signed on their behalf; 
  

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 “Agreed Rate” means 2 per cent. above the base rate from time to time of National
Westminster Bank plc; 
  
 “associated company”
has the meaning given to it in sections 416 et seq. of the TA; 
  
 “Business Day” means a day (excluding Saturdays) on which banks generally are open in Belfast for the transaction of normal banking business; 
  
 “Business Transfer Agreement” means the business transfer agreement dated 27 April between (1) Galen
Limited (2) Galen (Chemicals) Limited (3) the Company and (4) the Buyer; 
  
 “Buyer’s Account” means the account in the name of the Nelag Limited with Ulster Bank Limited, Portadown, Sort Code 98-12-90, Account number - 35143072; 
  
 “Buyer’s Accountant” means Ernst and Young, Bedford
House, 16 Bedford Street, Belfast, Northern Ireland BT2 70T; 
  
 “Buyer’s Group” means the Buyer, and its subsidiary undertakings and associated companies from time to time, all of them and each of them as the context admits; 
  
 “Buyer’s Solicitors” means L’Estrange and Brett
of Arnott House, 12-16 Bridge Street, Belfast, Northern Ireland BT1 1LS; 
  
 “Completion” means the completion of the sale and purchase of the Shares in accordance with clause 3; 
  
 “Confidential Information” means all information relating to any Target Group Company’s business or financial or other affairs which
is not publicly known; 
  
 “Completion Accounts”
means a document in the format set out in part 1 of schedule 5 to be prepared in accordance with clause 5 and on the basis of the accounting policies and procedures set out in Part 3 of schedule 5 of this agreement; 
  
 “Completion Date” means the date on which Completion
occurs; 
  
 “Data Room Information” means the
materials and information made available for inspection by the Buyer and its advisers at the offices of the Seller details of which are given in the Disclosure Letter; 
  
 “Default Rate” means 4 per cent. above the base rate from time to time of National Westminster Bank plc;

  
 “Disclosure Letter” means a letter of
today’s date together with the attachments thereto addressed by the Seller to the Buyer disclosing exceptions to the Warranties; 
  
 “Domain Names” means menoring.co.uk, menoring.com, regurin.co.uk, regurin.com, kapake.co.uk, kapake.com, bladder-wise.co.uk,
bladderwise.com, bladderwise.co.uk, femoring.co.uk, galen.co.uk, galen-pharma.co.uk and pharms-products.com; 
  
 “Encumbrance” means any mortgage, charge (fixed or floating), pledge, lien, trust, right of set off or other third party right or
interest (legal or equitable) including any right of pre-emption, assignment by way of security, reservation of title or any other security interest of any kind however created or arising; 
  
 “Estimated Working Capital Amount” means the sum of
£3,200,000, being the Seller’s estimate of the Working Capital Amount; 
  

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 “Facility Agreement” means the US$450 million credit agreement dated 5 March 2003 made
between (1) Galen (Chemicals) Limited (2) the Company (3) Galen Limited (4) Galen (UK) Limited (5) ABN Amro Bank NV (6) Bank of Ireland (7)( Barclays Bank plc and (8) Barclays Capital; 
  
 “Galen Trademark” means UK registered trademark “GALEN” (Registration number 1509621) and the
Irish registered trademark “GALEN” (Registration number 169293); 
  
 “Intellectual Property” means patents, trade marks, design rights, trade names, copyrights, (whether registered or not and any applications to register or rights to apply for registration of any of
the foregoing), rights in inventions, Know-How, trade secrets and other confidential information, and all other intellectual property rights of a similar or corresponding character in any part of the world; 
  
 “Intra-Group Indebtedness” means all debts outstanding
between Target Group Companies and members of the Seller’s Group; 
  
 “Know-How” means confidential or proprietary industrial, technical or commercial information and techniques in any form (including paper, electronically stored data, magnetic media, files and micro-film) including,
drawings, data relating to inventions, formulae, test results, reports, research reports, project reports and testing procedures, shop practices, instruction and training manuals, market forecasts, specifications, quotations, lists and particulars
of customers and suppliers, marketing methods and procedures, show-how and advertising copy; 
  
 “Listing Rules” means the listing rules of the UK Listing Authority made pursuant to Part VI of the Financial Services and Markets Act 2000; 
  
 “London Stock Exchange” means the London Stock Exchange
plc; 
  
 “Managers” means Ken Ross and Patricia
McKee; 
  
 “Manufacturing Business” means the UK
and Republic of Ireland pharmaceutical products manufacturing business sold by Galen Limited to Pharmaceutical Development and Manufacturing Services Limited on 2 December 2003; 
  
 “March Management Accounts” means the management accounts of the Target Group Companies for the 6 month
period ending 31 March 2004; 
  
 “MHRA” means
the Medicines and Healthcare Regulatory Agency; 
  
 “Net
Working Capital Adjustment” means the Estimated Working Capital Amount less the Working Capital Amount (and, for the avoidance of doubt, the resulting amount may be positive or negative); 
  
 “Obsolete Stock” means all Stock either no longer marketed
or unable to be marketed due to current or pending variations to any relevant and applicable Product Licences; 
  
 “Order” means the Companies (Northern Ireland) Order 1986; 
  
 “Payment on Completion” means £10 million; 
  
 “Pension Scheme” means The Group Personal Pension Scheme
with Standard Life which commenced in February 2004; 
  
 “PDMS Transaction” means the sale of the Pharmaceuticals development and manufacturing services business pursuant to a sale and purchase agreement dated 2 December 2003 between (1) PDMS Limited and (2) Galen Limited;

  

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 “Permits” means the Product Licences and any other permit, licence, consent, approval,
certificate, qualification, specification, registration and a filing of a notification report or assessment necessary in any relevant jurisdiction of the lawful and proper operation of the Pharma Sales and Marketing Business, its ownership,
possession, occupation or use of an asset as at the date of this agreement or the execution and performance of this agreement; 
  
 “Pharma Business” means the ethical pharmaceutical sales and marketing business of the Target Companies as at the opening of business on
27 April 2004; 
  
 “Pharma Business Trial
Balance” means the trial balance for the Pharma Business for the 5 month period ending 29 February 2004; 
  
 “Pharma Business Trial Balance Date” means 29 February 2004; 
  
 “Pharma Sales and Marketing Business” means the ethical pharmaceutical sales and marketing business of the
Target Group Companies immediately prior to Completion; 
  
 “Product Licences” means in respect of the products sold and marketed by the Target Group Companies the relevant and current (as at the date of this agreement) marketing authorisations issued by European Agency for the
Evaluation of Medicinal Products (or such other regulatory body that replaces the European Agency for the Evaluation of Medicinal Products from time to time) in respect of supply of such products in the European Union, and such other marketing
authorisations issued by any other applicable regulatory body in any jurisdiction where the manufacture and supply of the products may occur from time to time in accordance with the terms of this agreement, including (without limitation) the MHRA;

  
 “Property” means Seagoe Industrial Estate,
Craigavon, Northern Ireland; 
  
 “Related
Person” means in relation to any party its holding companies and the subsidiary undertakings and associated companies from time to time of such holding company, all of them and each of them as the context admits; 
  
 “Seller’s Accountant” means PricewaterhouseCoopers of
Waterfront Plaza, 8 Laganbank Road, Belfast, BT1 3LR; 
  
 “Seller’s Group” means the Seller, and its subsidiary undertakings and the associated companies, but excluding the Target Group Companies; 
  
 “Seller’s Solicitors” means Ashurst of Broadwalk House, 5 Appold Street, London EC2A 2HA; 

 
 “Seller’s Solicitors Client Account” means the
client account at NatWest Bank plc, Sort Code 50-00-00, Account No. 0040421, Ref:SJF/SYG.G829.00030; 
  
 “Shares” means all of the issued shares in the capital of each of the Target Group Companies (excluding the issued shares of the
Subsidiaries); 
  
 “Short Dated Stock” means
Stock within 9 months or less to expiration date (as of the date of completion); 
  
 “Statement” shall bear the meaning given to such term in clause 5.1; 
  
 “Stock” means raw materials, packaging materials, in-process materials and finished goods of the Target Group Companies at the Property
as at Completion but not including 

  

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the raw materials, packaging materials, in-process materials and finished goods relating to Menoring; 
  
 “Subsidiary” means a subsidiary undertaking of Galen (UK)
specified in schedule 2 and “Subsidiaries” means all those subsidiary undertakings; 
  
 “Supply Agreement” means the agreement to be entered into by the Buyer and Rouvex Limited at Completion in respect of the supply of
Menoring for sale in the UK and Ireland; 
  
 “Surplus
Stock” means the surplus Stock as agreed between the Buyer and the Seller on the basis on the normal accounting principles applied for the purposes of the audited accounts of the Target Group Companies;. 
  
 “TA” means the Income and Corporation Taxes Act 1988; 

  
 “TGCA” means the Taxation of Chargeable
Gains Act 1992; 
  
 “Target Group” or
“Target Group Companies” means Galen (UK) Limited (No. NI 42003) (“Galen (UK)”) and its Subsidiaries, Galen Rhodes Limited (No. 2706002), Galen Pharmaceuticals Limited (No. 2238884), Galen Healthcare Limited
(No. 3160430) and Chargelink Limited (No. 3064205) and “Target Group Company” means any one of them as the context dictates; 
  
 “Taxation” or “Tax” means any tax and any duty, impost, levy or governmental charge in the nature of tax whether
domestic or foreign and any fine, penalty or interest connected therewith (a) including (without prejudice to the generality of the foregoing) corporation tax, income tax, national insurance and social security contributions, capital gains tax,
inheritance tax, capital transfer tax, development land tax, value added tax, customs, excise and import duties and any other payment in the nature of tax which the relevant party is or may be or become bound to make to any person as a result of any
enactment relating to any of the foregoing (b) but excluding any stamp duty or stamp duty reserve tax payable on the transfer of the Shares under the terms of this agreement; 
  
 “Taxation Statutes” means all statutes, statutory instruments, orders enactments, laws, by-laws, directives
and regulations, whether domestic or foreign decrees, providing for or imposing any Tax; 
  
 “Tax Deed” means a deed of indemnity in the agreed form; 
  
 “Trademark Assignment” means the trademark assignment relating to the Galen Trademark in the agreed form; 
  
 “Transaction Document(s)” has the meaning given to
it under clause 14 of this agreement; 
  
 “Transitional
Services Agreement” means the agreement in the agreed form to be entered into between the parties hereto governing the provision of services following Completion to and from each of the parties; 
  
 “UK Listing Authority” means the Financial Services
Authority in its capacity as the competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000. 
  
 “Warranties” means the warranties set out in schedule 3. 
  
 “Working Capital Amount” means the aggregate value of; 
  

	 	(a)	the Stocks of the Target Group in the Completion Accounts; 

  

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	 	(b)	the trade debtors of the Target Group in the Completion Accounts; 

  

	 	(c)	the other debtors of the Target Group in the Completion Accounts; 

  

	 	(d)	the prepayments of the Target Group in the Completion Accounts, 

  

	 	(e)	the bank and cash balances of the Target Group in the Completion Accounts, and\ 

  

	 	(f)	the group debtors of the Target Group in the Completion Accounts, 

  
 less the aggregate value of: 
  

	 	(i)	the trade creditors of the Target Group in the Completion Accounts; 

  

	 	(ii)	the other creditors of the Target Group in the Completion Accounts; 

  

	 	(iii)	the accruals of the Target Group in the Completion Accounts; 

  

	 	(iv)	the overdraft of the Target Group in the Completion Accounts; 

  

	 	(v)	the group creditors of the Target Group in the Completion Accounts; 

  

	 	(vi)	the loans of the Target Group in the Completion Accounts; and 

  

	 	(vii)	the taxation (current and deferred) of the Target Group in the Completion Accounts. 

  

	1.2	In this agreement unless otherwise specified, reference to: 

  

	 	(a)	a “subsidiary undertaking” and a “subsidiary” or “holding company” is to be construed in accordance with Article 4 of the
Companies (Northern Ireland) Order 1986 (as amended); 

  

	 	(b)	a document in the “agreed terms” or in the “agreed form” is a reference to that document in the form approved and for the purposes of
identification signed or initialled by or on behalf of each party; 

  

	 	(c)	“FA” followed by a stated year means the Finance Act of that year; 

  

	 	(d)	“includes” and “including” shall mean including without limitation; 

  

	 	(e)	a “party” means a party to this agreement and includes its assignees (if any) and/or the successors in title to substantially the whole of its undertaking;

  

	 	(f)	a “person” includes any person, individual, company, firm, corporation, government, state or agency of a state or any undertaking (whether or not having separate
legal personality and irrespective of the jurisdiction in or under the law of which it was incorporated or exists); 

  

	 	(g)	a “statute” or “statutory instrument” or “accounting standard” or any of their provisions is to be construed as a reference to
that statute or statutory instrument or accounting standard or such provision as the same may have been amended or re-enacted before the date of this agreement; 

  

	 	(h)	“clauses”, “paragraphs” or “schedules” are to clauses and paragraphs of and schedules to this agreement; 

 

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	 	(i)	“writing” includes any methods of representing words in a legible form (other than writing on an electronic or visual display screen) or other writing in
non-transitory form; 

  

	 	(j)	words denoting the singular shall include the plural and vice versa and words denoting any gender shall include all genders. 

  

	1.3	The schedules form part of the operative provisions of this agreement and references to this agreement shall, unless the context otherwise requires, include references to the
schedules. 

  

	1.4	The index to and the headings and the descriptive notes in brackets relating to provisions of Taxation Statutes in this agreement are for information only and are to be ignored in
construing the same. 

  

	2.	SALE AND PURCHASE 

  

	2.1	Upon the terms and subject to the conditions of this agreement, the Seller shall as beneficial owner sell or procure the sale of, and the Buyer shall purchase the Shares with effect
from Completion free from any Encumbrance together with all accrued benefits and rights attached thereto. 

  

	2.2	The Seller waives or agrees to procure the waiver of any rights or restrictions conferred upon it in relation to the Shares under the articles of association of each of the Target
Group Companies or otherwise. 

  

	2.3	The Buyer shall not be obliged to complete the purchase of any of the Shares unless the Seller completes the sale of all the Shares simultaneously, but completion of the purchase of
some Shares shall not affect the rights of the Buyer with respect to its rights to the other Shares. 

  

	2.4	The final cash consideration for such sale and purchase shall be the net total sum of the Payment on Completion plus the Working Capital Amount to be satisfied in cash pursuant to
the provisions contained in clauses 3, 4 and 5. 

  

	2.5	One Business Day prior to the Completion Date the Seller (without liability) shall provide to the Buyer in writing, the Estimated Working Capital Amount together with
such evidence (if any) as it may have in support of such estimate. 

  

	3.	COMPLETION 

  

	3.1	Completion shall take place at the registered office of the Seller (or at such other location as the Seller and Buyer shall agree) on the Completion Date. 

 

	3.2	On Completion the Seller shall deliver to, or procure the delivery of or, if the buyer shall so agree, make available to the Buyer: 

  

	 	(a)	transfers in common form relating to all the Shares duly executed in favour of the Buyer (or as it may direct); 

  

	 	(b)	share certificates relating to the Shares; 

  

	 	(c)	resignations in the agreed terms duly executed as deeds of all the directors and the secretary of any Target Group Company from their offices as director or secretary of and their
employment with any Target Group Company containing a confirmation that they have no claims (whether statutory, contractual or otherwise) against any Target Group Company; 

  

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	 	(d)	the written resignations of the auditors of each Target Group Company containing an acknowledgement that they have no claim against any Target Group Company for compensation for
loss of office, professional fees or otherwise and a statement under section 394(1) of the Companies Act 1985 or article 401A of the Order (as inserted by article 58(1) of The Companies (No. 2) (Northern Ireland) Order 1990), as appropriate;

  

	 	(e)	the common seals, certificates of incorporation and statutory books, share certificate books and cheque books of each Target Group Company; 

  

	 	(f)	the Supply Agreement duly executed by Rouvex Limited; 

  

	 	(g)	the Tax Deed duly executed by the Seller; 

  

	 	(h)	to the extent not in the possession of any Target Group Company, all books of account concerning the businesses of any Target Group Company; 

  

	 	(i)	an acknowledgement in the agreed form from the Seller to the effect that there is no Intra-Group Indebtedness owing at Completion other than Intra-Group Indebtedness arising in the
normal course of the trade since 31 March 2004; 

  

	 	(j)	duly executed transfers of each share in the Subsidiaries not registered in the name of any Target Group Company in favour of the Buyer (or as it may direct);

  

	 	(k)	share certificates relating to all of the issued shares in the capital of each of the Subsidiaries; 

  

	 	(l)	the Transitional Services Agreement; and 

  

	 	(m)	the Form of Trademark Assignment; 

  

	 	(n)	duly completed tax elections under section 171A and section 179A TGCA; and 

  

	 	(o)	duly executed deeds of change of principal employer which are referred to in clause 11 of this agreement which shall have an effective date of the date of Completion.

  

	3.3	At or prior to the Completion Date (and prior to the taking effect of the resignation of the directors and secretary referred to in clause 3.2(c) above), the Seller
shall procure the passing of board resolutions of each Target Group Company: 

  

	 	(a)	sanctioning for registration (subject where necessary to due stamping) the transfers in respect of the Shares and any shares to which clause 3.2(j) refers; 

 

	 	(b)	appointing Allen McClay, Alan Armstrong, Stephen Campbell, John Irvine, and Richard Milliken to be the directors and Heather Stevenson as the secretary of each Target Group Company;

  

	 	(c)	revoking all mandates to bankers and giving authority in favour of the directors appointed under clause 3.3(b) above or such other persons as the Buyer may nominate to operate the
bank accounts thereof; 

  

	 	(d)	resolving that the registered office of Galen (UK) Limited and Galen Limited be changed to Almac House, 20 Seagoe Industrial Estate, Craigavon, Northern Ireland; and

  

	 	(e)	authorising the delivery to the Buyer of share certificates in respect of the Shares and the shares in the capital in each of the Subsidiaries. 

  

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	3.4	Upon compliance by the Seller with the provisions of clauses 3.2 and 3.3 on Completion the Buyer shall: 

  

	 	(a)	provide for the transfer by CHAPS the Payment On Completion plus the Estimated Working Capital Amount to the Seller’s Solicitors Client Account, the Sellers Solicitors being
authorised to receive such a cash payment on behalf of the Seller; and 

  

	 	(b)	deliver to the Seller a counterpart of: 

  

	 	(i)	the Tax Deed; 

  

	 	(ii)	the Supply Agreement; and 

  

	 	(iii)	the Transitional Services Agreement 

  
 in each case, duly executed by the Buyer. 
  

	4.	POST COMPLETION UNDERTAKINGS 

  

	4.1	The Seller acknowledges that, immediately following Completion until such time as the transfer(s) of the Shares have been registered in the register of members of the Target Group
Companies, the Seller will hold the Shares registered in its name on trust for and as nominee for the Buyer or its nominees and undertakes to hold all dividends and distributions and exercise all voting rights available in respect of the Shares in
accordance with the directions of the Buyer or its nominees and if the Seller is in breach of the undertakings contained in this clause the Seller irrevocably authorises the Buyer to appoint some person or persons to execute all instruments or
proxies (including consents to short notice) or other documents which the Buyer or its nominees may reasonably require and which may be necessary to enable the Buyer or its nominees to attend and vote at general meetings of the Seller’s rights
contained in this clause. 

  

	4.2	Following Completion, the Seller undertakes to the Buyer to use all reasonable endeavours to ensure that each Target Group Company is released from any guarantee, indemnity, bond,
letter of comfort or Encumbrance or other similar obligation given or incurred by it prior to Completion which relates in whole or in part to debts or other liabilities or obligations, whether actual or contingent, of a member of the Seller’s
Group and prior to such release the Seller undertakes to the Buyer (on behalf of itself and as trustee on behalf of each Target Group Company) to keep each Target Group Company fully indemnified against any failure to make any such repayment or any
liability arising under any such guarantee, indemnity, bond, letter of comfort or Encumbrance. 

  

	4.3	Following Completion the Buyer undertakes to the Seller to use all reasonable endeavours to ensure that each member of the Seller’s Group is released from any guarantee,
indemnity, bond, letter of comfort or Encumbrance or other similar obligation given or incurred by it which relates in whole or in part to debts or other liabilities or obligations, whether actual or contingent, of any Target Group Company and prior
to such release the Buyer undertakes to the Seller (on behalf of itself and as trustee on behalf of each member of the Seller’s Group) to keep each member of the Seller’s Group fully indemnified against any failure to make any such
repayment or any liability arising under any such guarantee, indemnity, bond, letter of comfort or Encumbrance; 

  

	4.4	Within five Business Days of agreement or determination of the Working Capital Amount in accordance with the provisions of clause 5, if the Net Working Capital Adjustment is:

  

	 	(a)	positive, the Seller shall pay to the Buyer, by way of telegraphic transfer in immediately available funds to the Buyer’s Account; or as the case may be,

  

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	 	(b)	negative, the Buyer shall pay to the Seller, by way of telegraphic transfer in immediately available funds to the Seller’s Solicitor Client Account, 

 
 in either case, an amount equal to the Net Working Capital Adjustment.

  

	4.5	If any sum due for payment in relation to the Working Capital Amount under this agreement by one party to the other is not paid on the due date, the party in default shall pay
interest thereon (at the same time as payment is made) at the Default Rate for the period from the due date to the date of actual payment (both dates inclusive). 

  

	4.6	Following Completion, Seller shall procure the delivery to the Buyer of confirmation from the Facility Agent (as defined in the Facility Agreement) that Galen Limited and Galen (UK)
Limited have been released from their obligations as guarantors under the Facility Agreement. 

  

	4.7	Following Completion, the Buyer undertakes with the Seller that in the event that the Buyer or any member of the Buyer’s Group receives payment from or on behalf of Straken
Limited in respect of the monies due by Straken Limited to the Seller relating to the disposal of Isotard to Strakan Limited in 2002 the Buyer shall hold such monies on trust for the Seller and shall immediately remit all such monies to the Seller
or such other party as the Seller may direct. 

  

	5.	COMPLETION ACCOUNTS 

  

	5.1	The Buyer and the Seller shall use all reasonable endeavours to procure that, promptly after Completion, Completion Accounts in relation to the Target Group, together with a
statement in the format set out in part 2 of schedule 5 (the “Statement”) of the Working Capital Amount as at close of business on the Completion Date, are prepared in accordance with the provisions of this clause 5. The Completion
Accounts shall be prepared on the basis of the accounting policies and procedures set out in Part 3 of schedule 5 of this agreement. 

  

	5.2	The Seller and the Buyer shall prepare the Completion Accounts and the Statement in conjunction with the Target Group with a view to such draft Completion Accounts and draft
Statement being submitted to the Seller within 60 Business Days of Completion. 

  

	5.3	Subject to clause 5.7(e), the Seller and the Buyer shall each bear their own costs and expenses arising out of the preparation and review of the Completion Accounts and Statement.

  

	5.4	The Seller shall notify the Buyer in writing within 30 Business Days of receipt of such draft Completion Accounts and the draft Statement whether or not it accepts the draft
Completion Accounts and draft Statement for the purposes of this agreement. 

  

	5.5	If the Seller notifies the Buyer that it does not accept such draft Completion Accounts and draft Statement: 

  

	 	(a)	it shall, at the same time as it notifies the Buyer that it does not accept such draft Completion Accounts and draft Statement, set out in such notice in writing its reasons for
such non-acceptance and specify the adjustments which, in its opinion, should be made to the draft Completion Accounts and the draft Statement in order to comply with the requirements of this agreement; and 

  

	 	(b)	the parties shall use all reasonable endeavours to: 

  

	 	(i)	meet and discuss the objections of the Seller; and 

  

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	 	(ii)	try to reach agreement upon the adjustments (if any) required to be made to the draft Completion Accounts and the draft Statement and will provide each other with such information
and explanations and access to working papers as may be reasonably and properly required by the other for their purpose; 

  
 in each case, within 20 Business Days of the Seller’s notice of non-acceptance pursuant to clause 5.4 (or such other time as the parties may agree in
writing). 
  

	5.6	If the Seller is satisfied with the draft Completion Accounts and the draft Statement (either as originally submitted or after adjustments agreed between the Seller and the Buyer)
or if the Seller fails to notify the Buyer of its non-acceptance of the draft Completion Accounts and the draft Statement within the 30 Business Day period referred to in clause 5.4, then the draft Completion Accounts and the draft Statement
(incorporating any agreed adjustments) shall constitute the Completion Accounts and the Statement for the purposes of this agreement. 

  

	5.7	If the Seller and the Buyer do not reach agreement within the 20 Business Day period referred to in clause 5.5(b) (or such other time as the parties may agree in writing) then the
matters in dispute (and only those) shall be referred, on the application of either the Seller or the Buyer, for determination by an independent firm of internationally recognised chartered accountants to be agreed upon by the Seller and the Buyer
or, failing agreement, to be selected, on the application of either the Seller or the Buyer, by the Chairman for the time being of the Ulster Society of the Institute of Chartered Accountants in Ireland or his duly appointed deputy (the
“firm”). The following provisions shall apply to such determination: 

  

	 	(a)	the Buyer and/or the Buyer’s Accountants and the Seller and/or the Seller’s Accountants shall each promptly (and in any event within such time frame as reasonably enables
the firm to make its decision in accordance with the time frame set down in clause 5.7(b)) prepare and deliver to the firm a written statement on the matters in dispute (together with the relevant documents); 

  

	 	(b)	the firm shall be requested to give its decision as soon as is reasonably practicable after its appointment and in any event by not later than 30 Business Days after its appointment
hereunder; 

  

	 	(c)	in giving such determination, the firm shall state what adjustments (if any) are necessary to the draft Completion Accounts and the draft Statement in respect of the matters in
dispute in order to comply with the requirements of this agreement and shall give its reasons therefor; 

  

	 	(d)	the firm shall act as an expert (and not as an arbitrator and the Arbitration (Northern Ireland) Order 1996 shall not apply) in making any such determination which shall be final
and binding on the parties (in the absence of manifest error); 

  

	 	(e)	each party shall bear the costs and expenses of all counsel and other advisers, witnesses and employees retained by it and the costs and the expenses of the firm shall be borne
between the Seller and the Buyer in such proportions as the firm shall in its discretion determine or, in the absence of any such determination, equally between the Seller and the Buyer. 

  

	5.8	When the Seller and the Buyer reach (or pursuant to clause 5.6 are deemed to reach) agreement on the Completion Accounts and the Statement or when the Completion Accounts and the
Statement are finally determined at any stage in accordance with the procedures set out in this clause 5: 

  

	 	(a)	the Completion Accounts and the Statement as so agreed or determined shall be the Completion Accounts and the Statement for the purposes of this agreement and shall be final and
binding on the parties; and 

  

 - 11 - 

	 	(b)	the Working Capital Amount as at close of business on the Completion Date, shall be as set out in the Statement. 

  

	5.9	Subject to any rule of law or any regulatory body or any provision of any contract or arrangement entered into prior to the date of this agreement to the contrary, the Seller shall
procure that each member of the Seller’s Group shall, and the Buyer shall procure that the Target Group shall, promptly provide each other, their respective advisers, the firm, the Buyer’s accountants and the Seller’s accountants with
all information (in their respective possession or control) relating to the operations of the Seller’s Group and/or the Target Group, as the case may be, including access at all reasonable times to all Seller’s Group and Target Group
employees, books, records, and other relevant information and all co-operation and assistance, as may in any such case be reasonably required to: 

  

	 	(a)	enable the production of the Completion Accounts and the Statement; and 

  

	 	(b)	enable the firm to determine the Completion Accounts and the Statement. 

  
 The Seller and the Buyer hereby authorise each other, their respective advisers and the firm to take copies of all information which they have agreed to
provide under this clause 5.9. 
  

	6.	STOCK 

  

	6.1	Promptly following Completion (or at such time as agreed between the Seller and Buyer), a physical stock-take shall be carried out at each of the locations from which the Pharma
Sales and Marketing Business is carried on. The physical stock take shall be attended by the representatives of both the Seller and the Buyer. 

  

	6.2	During this stock-take the Seller and Buyer shall jointly use all their reasonable endeavours to procure that any Obsolete Stock, Short Dated Stock and Surplus Stock are identified
and recorded in the records of the stock take. 

  

	6.3	Any Obsolete Stock, Short Dated Stock and Surplus Stock which are identified shall be destroyed by the Buyer (unless expressly agreed to the contrary) and the Seller will reimburse
the Buyer for all reasonable costs incurred in this destruction process. 

  

	6.4	The Seller shall within 21 days of Completion deliver to the Buyer a statement of the value of the Stock (the “Stock Valuation”).

  

	 	(a)	The Stock shall be valued at the lower of cost and net realisable value. 

  

	 	(b)	No value shall be attributed to Obsolete Stock, Short Dated Stock or Surplus Stock. 

  

	 	(c)	The Seller shall comply with any reasonable requests of the Buyer’s representatives for evidence or information to verify the cost or net realisable value of the Stock.

  

	6.5	Within 14 days of receipt of the Stock Valuation (or within such longer period as snail be agreed in writing between the parties), the Buyer shall notify the Seller in writing
whether or not it accepts the Stock Valuation for the purposes of this agreement. 

  

 - 12 - 

	6.6	If the Buyer notifies the Seller within such agreed period that it does not accept the Stock Valuation, any dispute with respect to the determination of the value of any part of the
Stock shall be referred for final settlement to a firm of chartered accountants nominated jointly by the Seller and the Buyer or, failing such nomination within 14 days after a request for determination by either the Seller or the Buyer, nominated
at the request of either of them by the Chairman for the time being of the Ulster Society of the Institute of Chartered Accountants in Ireland. The accountants shall be entitled to call for submissions from both the Buyer and the Seller as to
objections in relation to the valuation of the Stock and may call for and inspect such documents as they may reasonably consider necessary. In making their determination, the accountants shall act as experts and not as arbitrators, their decision
shall (in the absence of manifest error) be final and binding on the parties and their fees shall be borne and paid by the Seller and the Buyer in such proportions as the accountants determine, or in the absence of such determination, shall be borne
equally by the Buyer and Seller. 

  

	6.7	The accountants appointed as experts pursuant to this clause shall, in giving their determination, state what adjustments (if any) are necessary to the valuation in such form as it
stands at that time, in respect of the matters in dispute in order to comply with the requirements of this agreement and shall give its reasons therefore and shall make such determination as soon as is reasonably practicable after their appointment
and, in any event, by no later than 30 days after their appointment. 

  

	7.	WARRANTIES AND INDEMNITIES 

  

	7.1	The Seller acknowledges that the Buyer has entered into this agreement upon the basis and in reliance upon the Warranties and warrants to the Buyer in the terms of the Warranties
set out in schedule 3 of this agreement and each of the Warranties shall be construed as a separate warranty. 

  

	7.2	Any claim under the Warranties is subject to the terms and provisions of schedule 4. 

  

	7.3	The Buyer warrants to the Seller that (and each such warranty shall be construed as a separate warranty): 

  

	 	(a)	the execution and delivery of this agreement and the Completion of the transactions contemplated hereby, have, where required, been duly and validly authorised and no other
proceedings or action on the part of the Buyer is necessary to authorise the agreement or to complete the transactions contemplated; and 

  

	 	(b)	it has disclosed to the Seller all agreements, arrangements and understandings (whether verbal or in writing) between any member of the Buyer’s Group and any director,
employee, contractor or agent of any member of the Seller’s Group. 

  

	7.4	The Seller agrees to indemnify the Buyer on the terms set out in schedule 6 of this agreement. 

  

	8.	PROTECTION OF GOODWILL 

  

	8.1	In consideration of the Buyer entering into the sale and purchase of the Shares, the Seller hereby agrees with the Buyer that (except as otherwise agreed in writing with the Buyer)
neither the Seller nor any of its subsidiary undertakings from time to time will either solely or jointly or with any other person either directly or indirectly or through any of their respective employees or agents (either on its own account or as
the agent of any other person): 

  

	 	(a)	for a period of three years from Completion provide services to or be employed or otherwise carry on or be engaged or interested directly or indirectly in a business which competes
with the Pharma Sales and Marketing Business; 

  

 - 13 - 

	 	(b)	for a period of three years from Completion, solicit or canvass away from the Buyer any person, firm or company or other organisation (which was a customer or supplier of the Pharma
Sales and Marketing Business) at any time during the twelve month period prior to Completion); 

  

	 	(c)	for a period of two years from Completion, solicit or entice away or endeavour to solicit or entice away from the Buyer any senior manager, director, project manager or sales staff
(excluding support staff) and any key employee who would be treated as a “relevant employee” for the purposes of the Model Code contained in the Listing Rules, employed or retained by any of the Companies in relation to the Pharma Sales
and Marketing Business on Completion, whether or not such person would commit any breach of his contract of employment or terms of engagement by reason of his leaving the service of the Buyer PROVIDED THAT this restriction will not apply to any
advertisements for recruitment made available generally through any recruitment agency or advertisement available to the public; or 

  

	 	(d)	following Completion, use any of the Domain Names or e-mail address used by the Target Group at any time during the two months immediately preceding the date of this agreement
solely in relation to the Pharma Sales and Marketing Business or any other name intended or likely to be confused with any such trade or domain name or e-mail address solely in relation to the Pharma Sales and Marketing Business.

  

	 	(e)	for a period of three years following the expiry of one month after the passing by the Seller’s shareholders of the Name Change Resolution, use in the course of its business
any of the Domain Names as the universal resource locator of any web site accessible on the internet. 

  

	8.2	Nothing in clause 8.1 shall prevent or restrict any member of the Seller’s Group from: 

  

	 	(a)	being the holder of shares (conferring up to but not exceeding fifteen per cent of the votes which would normally be cast at a general meeting of that company) or fifteen per cent
of the debentures of a company which is engaged in any business referred to in clause 8.1(a); 

  

	 	(b)	 acquiring the whole or any part of a business which, or the share capital of a company or group of companies whose business or a part of whose business, includes
operations the carrying on of which would otherwise amount to a breach of the undertaking contained in clause 8.1 (the “Competitive Operations”), as part of a larger acquisition or series of related acquisitions
PROVIDED THAT the relevant member of the Seller’s Group shall within the following twelve months use its reasonable endeavours to sell the Competitive Operations as soon as reasonably practicable following such acquisition (which shall, without
limitation, include inviting the Buyer to make a competitive bid for the sale of the Competitive Operations) save that the relevant member of the Seller’s Group shall not be obliged to sell the Competitive Operations if the Competitive
Operations comprise a minor part of the business or the business of such company, group of companies or businesses acquired or in which the Sellers Group has acquired an interest. For the purpose of this clause 8.2(b), a “minor
part” of the business of such company, group of companies or business shall be part of its overall business in which the turnover of the Competitive Operations does not exceed the lower of 10 per cent of the gross turnover of the
company, group of companies or business 

  

 - 14 - 

	 	 
acquired per annum or £5 million gross turnover per annum of the Company, group of companies or business acquired. 

  

	8.3	The Seller agrees with the Buyer that it will not at any time after Completion, whether by itself or through any other member of the Seller’s Group, whether directly or
indirectly, in the course of carrying on its business, claim or represent any continuing association with the Buyer in respect of the Pharma Sales and Marketing Business for the purpose of obtaining or retaining any business or custom from, or in
competition with the Pharma Sales and Marketing Business. 

  

	8.4	The Seller agrees with the Buyer that the restrictions contained in this clause 7 are considered reasonable and necessary for the protection of value of the Pharma Sales and
Marketing Business (in particular the goodwill of the Pharma Sales and Marketing Business) by the parties hereto and the Seller acknowledges that, in the light of the total price paid under this agreement and the manner of computation thereof, the
nature of the business of the Target Group and all other relevant matters, the provisions of this clause 6 are considered reasonably necessary for the protection of the interests of the Buyer, and the restrictive covenants do not go beyond what is
reasonably necessary to protect the legitimate business interests of the Buyer. 

  

	8.5	In the event that any restriction in this clause 8 shall be found to be unenforceable but would be enforceable if some part thereof were deleted or the area of operation or the
period of application reduced, such restriction shall apply with such modification as may be necessary to make it legal and enforceable. Without prejudice to the generality of the foregoing, if such invalidity arises by reason of the period of
restriction being excessive, such period as shall be held by a court of competent jurisdiction to be reasonable shall be able to be substituted for the period herein in order to make the restriction binding on the relevant parties.

  

	8.6	Each undertaking contained in this clause 8 shall be construed as a separate undertaking and if one or more of the undertakings contained in this clause 8 is held to be against the
public interest or unlawful or in any way an unreasonable restraint of trade the remaining undertakings shall continue to bind the Seller and its subsidiary undertakings.] 

  

	9.	CONFIDENTIAL INFORMATION 

  

	9.1	The Seller shall not and shall procure that no other member of the Seller’s Group or their connected persons or any officers or employee or adviser or agent shall use or
disclose to any person Confidential Information; 

  

	9.2	Clause 9.1 does not apply to: 

  

	 	(a)	disclosure of Confidential Information to or at the written request of the Buyer; 

  

	 	(b)	use or disclosure of Confidential Information required to be disclosed by law or the London Stock Exchange or the UK Listing Authority or any other regulatory body;

  

	 	(c)	disclosure of Confidential Information to professional advisers for the purpose of advising the Seller in relation to this transaction only; or 

  

	 	(d)	Confidential Information which becomes generally known other than by the Seller’s breach of clause 9. 

  

	10.	INTELLECTUAL PROPERTY AND CHANGE OF NAME 

  

	10.1	 The Seller hereby grants to the Buyer and each member of the Target Group a perpetual, royalty-free licence to use only in the Pharma Sales and Marketing Business
(including, in 

  

 - 15 - 

	 	 
this context, as the same may develop in the ordinary course of business) the name “Galen” in the same manner as it is so used immediately prior to
Completion, whether alone or in combination with any other name, provided that the members of the Target Group shall also continue to be entitled to include the name “Galen” in their corporate names as at the Completion Date and provided
further that the Buyer shall, and shall procure that each member of the Target Group shall, use all reasonable endeavours to avoid its and their use thereof causing any confusion between itself, or themselves, and the Seller, its associated
companies or the business of any of them. For the avoidance of doubt, the Seller shall not grant such a licence to any members of the Seller’s Group or any third parties. 

  

	10.2	The licence shall commence on the Completion Date and shall continue in force until the Galen Trademark is assigned to the Buyer in accordance with clause 10.9 below.

  

	10.3	The licences granted under clause 10.1 above and clause 9.7 of the Business Transfer Agreement shall both terminate upon assignment of the Galen Trademark in accordance with clause
10.2 above. 

  

	10.4	All products manufactured by the Buyer under or by reference to the Galen name shall comply with the specifications and standards of quality in relation to their manufacture,
materials used, workmanship and design, packaging and storage in force at the Completion Date. 

  

	10.5	Products intended to be marketed under the Galen name which in the Seller’s reasonable opinion are not of the quality required by the Seller under clause 10.4 above shall on
reasonable notice being given by the Seller be forthwith withdrawn from production and sale by the Buyer and they shall either be corrected or destroyed or the Galen name removed from them at the Buyer’s option acting reasonably in consultation
with the Seller. The Seller may on reasonable notice inspect any such corrected products before they are marketed. 

  

	10.6	The use of the Galen name by the Buyer shall at all times be in keeping with and seek to maintain its distinctiveness and reputation as reasonably determined by the Seller, and the
Buyer shall forthwith cease any use not consistent therewith as the Seller may reasonably require. 

  

	10.7	In consideration of the Buyer entering into the sale and purchase of the Shares, the Seller hereby agrees to procure that, within twelve months from the Completion Date, a
resolution is put to the shareholders of the Seller proposing that the Seller changes its name to a name which is not the same as “Galen” or confusingly similar to “Galen” (the “Name Change Resolution”). If for
any reason the Name Change Resolution is not put before the shareholders of the Seller within the said period of twelve months or, having been so put to the shareholders, the requisite majority is not secured to pass it, the Seller will procure that
at each subsequent extraordinary general meeting or annual general meeting of the Seller (as the case may be) the Name Change Resolution is again put before the Seller’s shareholders, until such time as it passed by the requisite majority.

  

	10.8	Once the Name Change Resolution has been passed, the Seller will procure the passing of special resolutions by any of its subsidiary companies whose registered names include the
word “Galen”, to change any such names to names which do not include the word “Galen” or anything confusingly similar therewith. 

  

	10.9	For the avoidance of doubt, completion of the acquisition of the Shares is not conditional on the passing of the Name Change Resolution. 

  

	10.10 	As soon as reasonably practicable following the passing of the Name Change Resolution, the Seller and the Buyer shall enter into the Trademark Assignment. 

 

 - 16 - 

	11.	PENSIONS 

  
 The following occupational pension schemes operated by the Target Group the Standard Life Standplan A Scheme called the Galen Ltd Pension Scheme, the Alba
Pension Scheme and the Allied Dunbar Pension Scheme shall be retained by the Seller and the parties to this agreement agree to procure the execution of deeds of change of principal employer for each of the above schemes as may be required which
shall take effect as from Completion. 
  

	12.	ANNOUNCEMENTS 

  

	12.1	No party shall disclose the making of this agreement nor its terms nor any other agreement referred to in this agreement (except those matters set out in the press release in the
agreed form) and each party shall procure that each of its Related Persons shall not make any such disclosure without the prior consent of the other party unless disclosure is: 

  

	 	(a)	to its professional advisers; or 

  

	 	(b)	required by law or the rules or standards of the London Stock Exchange or the Listing Rules or the rules and requirements of any other regulatory body. 

  
 PROVIDED THAT this clause 12.1 shall not apply to announcements,
communications or circulars made or sent by either party after Completion to customers, clients or suppliers of the Target Group to the extent that it informs them of the Buyer’s acquisition of the Shares or to any announcement containing
information which has become available other than as a result of a breach of this agreement or the Product Transfer Agreement. 
  

	12.2	The restrictions contained in clause 12.1 shall apply without limit of time. 

  

	13.	ASSIGNMENT 

  
 This agreement is personal to the parties and accordingly no party without the prior written consent of the other shall assign, transfer, charge or
declare a trust of the benefit of all or any of any other party’s obligations nor any benefit arising under this agreement neither shall any party delegate any of its obligations under this agreement or subcontract their provision to any third
party or agent whatsoever except that following Completion the Buyer may assign the benefit of all its obligations and benefits arising hereunder to any member of the Buyer’s Group PROVIDED THAT such assignee shall remain within the
Buyer’s Group. In the event that such assignee ceases to be a member of the Buyer’s Group such assignment shall be voidable and the relevant party shall procure that the assignee shall assign in full any and all benefits to the Buyer or
another member of the Buyer’s Group. 
  

	14.	COSTS 

  
 Unless expressly otherwise provided in this agreement each of the parties shall bear its own legal, accountancy and other costs, charges and expenses
connected with the sale and purchase of the Shares, the preparation and negotiation of this agreement and any transaction contemplated hereunder. 
  

	15.	EFFECT OF COMPLETION 

  
 The terms of this agreement (insofar as not performed at Completion and subject as specifically otherwise provided in this agreement) shall continue in
force after and notwithstanding Completion. 
  

 - 17 - 

	16.	FURTHER ASSURANCES AND ACCESS TO INFORMATION 

  

	16.1	Each of the parties shall from time to time upon request from the other do or procure the doing of all acts and/or execute or procure the execution of all such documents in so far
as each is reasonably able and in a form reasonably satisfactory to the party concerned, and in particular the Seller shall execute all such documents and do such acts and things as the Buyer may reasonably require for the purpose of vesting in the
Buyer the full legal and beneficial interest in the Shares and otherwise giving the other party the full benefit of this agreement. 

  

	16.2	Following Completion, the Buyer agrees to provide to the Seller on reasonable notice with access to any information, documents or records relating to the Target Group Companies and
the Pharma Sales and Marketing Business that the Seller may reasonably require to enable the Seller to comply or assist with any governmental or regulatory investigation relating to the Target Group Companies or the Pharma Sales and Marketing
Business which involves the Seller or any member of the Seller’s Group. 

  

	17.	ENTIRE AGREEMENT 

  

	17.1	Each party on behalf of itself and as agent for each of its Related Persons acknowledges and agrees with the other party (each such party acting on behalf of itself and as agent for
each of its Related Persons) that: 

  

	 	(a)	this agreement and the Product Transfer Agreement together with any other documents referred to in this agreement (together the “Transaction Documents”) constitutes
the entire and only agreement between the parties and their respective Related Persons relating to the subject matter of the Transaction Documents; 

  

	 	(b)	neither it nor any of its Related Persons have been induced to enter into any Transaction Document in reliance upon, nor have they been given, any warranty, representation,
statement, assurance, covenant, agreement, undertaking, indemnity or commitment of any nature whatsoever other than as are expressly set out in the Transaction Documents and, to the extent that any of them have been, it (acting on behalf of itself
and as agent on behalf of each of its Related Persons) unconditionally and irrevocably waives any claims, rights or remedies which any of them might otherwise have had in relation thereto; and 

  

	 	(c)	the only remedies available to it in respect of the Transaction Documents (and, where appropriate, to its Related Persons) are damages for breach of contract [and, in the case of a
breach of clause 8.1 only, injunctive relief] and, for the avoidance of doubt, neither it (nor its Related Persons, where appropriate) shall have any right to rescind or terminate any Transaction Documents either for breach of contract or for
negligent or innocent misrepresentation or otherwise; 

  
 PROVIDED THAT the provisions of this clause 17 shall not exclude any liability which any of the parties or, where appropriate, their Related Persons would otherwise have to any other party or, where appropriate, to any other party’s
Related Persons or any right which any of them may have to rescind this agreement in respect of any statements made fraudulently by any of them prior to the execution of this agreement or any rights which any of them may have in respect of
fraudulent concealment by any of them. 
  

	18.	VARIATIONS 

  
 This agreement may be varied only by a document signed by or on behalf of each of the parties. 
  

 - 18 - 

	19.	WAIVER 

  

	19.1	A waiver of any term, provision or condition of, or consent granted under, this agreement shall be effective only if given in writing and signed by the waiving or consenting party
and then only in the instance and for the purpose for which it is given. 

  

	19.2	No failure or delay on the part of any party in exercising any right, power or privilege under this agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

  

	19.3	No breach of any provision of this agreement shall be waived or discharged except with the express written consent of the parties. 

  

	20.	INVALIDITY 

  

	20.1	If any provision of this agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction: 

  

	 	(a)	the validity, legality and enforceability under the law of that jurisdiction of any other provision; and 

  

	 	(b)	the validity, legality and enforceability under the law of any other jurisdiction of that or any other provision, 

  
 shall not be affected or impaired in any way. 
  

	21.	NOTICES 

  

	21.1	Any notice, demand or other communication given or made under or in connection with the matters contemplated by this agreement shall be in writing and shall be delivered personally
or sent by fax or prepaid first class post (air mail if posted to or from a place outside the United Kingdom): 

  

			
	In the case of the Buyer to:	  	 Almac Sciences Limited
 Almac House
 20 Seagoe Industrial Estate
 Craigavon
 Co. Armagh
 BT63 5QD
 Northern Ireland

		
	Fax:	  	028 38350729
	Attention:	  	Dr Allen J. McClay
		
	In the case of the Seller to:	  	  
 Galen Holdings PLC
 Old Belfast Road
 Millbrook
 Co. Antrim
 Northern Ireland
 BT40 2SH

		
	Fax:	  	028 28279448
	Attention:	  	Company Secretary

  

 - 19 - 

 and shall be deemed to have been duly given or made as follows: 
  

	 	(a)	if personally delivered, upon delivery at the address of the relevant party; 

  

	 	(b)	if sent by first class post, two Business Days after the date of posting; 

  

	 	(c)	if sent by air mail, five Business Days after the date of posting; and 

  

	 	(d)	if sent by fax, when despatched; 

  
 provided that if, in accordance with the above provisions, any such notice, demand or other communication would otherwise be deemed to be given or made
outside 9.00 a.m. -5.00 p.m. on a Business Day such notice, demand or other communication shall be deemed to be given or made at 9.00 a.m. on the next Business Day. 
  

	21.2	A party may notify the other party to this agreement of a change to its name, relevant addressee, address or fax number for the purposes of clause 21 provided that such notification
shall only be effective: 

  

	 	(a)	on the date specified in the notification as the date on which the change is to take place; or 

  

	 	(b)	if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date falling five Business Days after notice of any such
change has been given. 

  

	22.	COUNTERPARTS 

  

	22.1	This agreement may be executed in any number of counterparts which together shall constitute one agreement. Any party may enter into this agreement by executing a counterpart and
this agreement shall not take effect until it has been executed by all parties. 

  

	23.	GOVERNING LAW AND JURISDICTION 

  

	23.1	This agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by
and construed in accordance with Northern Irish law. 

  

	23.2	Each of the parties to this agreement irrevocably agrees that the courts of Northern Ireland shall have exclusive jurisdiction to hear and decide any suit, action or proceedings,
and/or to settle any disputes, which may arise out of or in connection with this agreement (respectively, “Proceedings” and “Disputes”) and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of
Northern Ireland. 

  

	23.3	Each party irrevocably waives any objection which it might at any time have to the courts of Northern Ireland being nominated as the forum to hear and decide any Proceedings and to
settle any Disputes and agrees not to claim that the courts of Northern Ireland are not a convenient or appropriate forum for any such Proceedings or Disputes and further irrevocably agrees that a judgment in any Proceedings or Disputes brought in
any court referred to in this clause 23 shall be conclusive and binding upon the parties and may be enforced in the courts of any other jurisdiction. 

  

	23.4	Without prejudice to any other permitted mode of service the parties agree that service of any claim form, notice or other document (“Documents”) for the purpose of any
Proceedings begun in Northern Ireland shall be duly served upon it if delivered personally or sent by registered post, in the case of: 

  

	 	(a)	the Seller, to its registered office (marked for the attention of the Company Secretary); and 

  

 - 20 - 

	 	(b)	the Buyer, to the registered office of Almac Sciences Limited (marked for the attention of Dr Allen J. McClay), 

  
 or such other person and address in the United Kingdom as the Seller shall notify the Buyer in writing or vice versa from time to time. 
  

	24.	THIRD PARTY RIGHTS 

  
 The Contracts (Rights of Third Parties) Act 1999 shall not apply to this agreement and no rights or benefits expressly or impliedly conferred by it shall
be enforceable under that Act against the parties to it by any other person. 
  
 IN WITNESS whereof this agreement has been executed on the date first above written. 
  

 - 21 - 

 SCHEDULE 1 
 Particulars relating to Target Group Companies 
  
 Galen (UK) Limited 
  

			
		
	 Registered Number:
	  	NI 42003
		
	 Authorised share capital:
	  	100
		
	 Issued share capital:
	  	2
		
	 Directors:
	  	 Robert Geoffrey Elliott
 John Alexander
King

		
	 Secretary:
	  	Robert Graham Whiteford
		
	 Auditors:
	  	PricewaterhouseCoopers LLP
		
	 Accounting reference date:
	  	30 September
		
	 Registered Office:
	  	 Seagoe Industrial Estate
 Craigavon
 County Armagh BT63 5UA

  

 - 22 - 

 Galen Rhodes Limited 
  

			
	 Registered Number:
	  	2706002
		
	 Authorised share capital:
	  	1,000,900
		
	 Issued share capital:
	  	1,000,000 - divided into:
	 	  	100 Ordinary shares
	 	  	999 900 Ordinary A shares
		
	 Directors:
	  	Robert Geoffrey Elliott
	 	  	John Alexander King
		
	 Secretary:
	  	Robert Graham Whiteford
		
	 Auditors:
	  	PricewaterhouseCoopers LLP
		
	 Accounting reference date:
	  	30 September
		
	 Registered Office:
	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 23 - 

 Galen Pharmaceuticals Limited 
  

			
	Registered Number:	  	2238884
		
	Authorised share capital:	  	10,000
		
	Issued share capital:	  	2
		
	Directors:	  	Robert Geoffrey Elliott
	 	  	John Alexander King
		
	Secretary:	  	Robert Graham Whiteford
		
	Auditors:	  	PricewaterhouseCoopers
		
	Accounting reference date:	  	30 September
		
	Registered Office:	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 24 - 

 Galen Healthcare Limited 
  

			
	Registered Number:	  	3160430
		
	Authorised share capital:	  	100
		
	Issued share capital:	  	100
		
	Directors:	  	Robert Geoffrey Elliott
	 	  	John Alexander King
		
	Secretary:	  	Robert Graham Whiteford
		
	Auditors:	  	PricewaterhouseCoopers LLP
		
	Accounting reference date:	  	30 September
		
	Registered Office:	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 25 - 

 Chargelink Limited 
  

			
	Registered Number:	  	3064205
		
	Authorised share capital:	  	1,000
		
	Issued share capital:	  	1
		
	Directors:	  	Robert Geoffrey Elliott
	 	  	John Alexander King
		
	Secretary:	  	Robert Graham Whiteford
		
	Auditors:	  	PricewaterhouseCoopers LLP
		
	Accounting reference date:	  	30 September
		
	Registered Office:	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 26 - 

 SCHEDULE 2 
 Particulars relating to Subsidiaries 
  
 Inter-Medics Limited 
  

			
	Registered Number:	  	741057
		
	Authorised share capital:	  	3,000
		
	Issued share capital:	  	1,000
		
	Directors:	  	 Robert Geoffrey Elliott
 John Alexander
King

		
	Secretary:	  	Robert Geoffrey Elliott
		
	Auditors:	  	PricewaterhouseCoopers LLP
		
	Accounting reference date:	  	30 September
		
	Registered Office:	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 27 - 

 Galen Limited 
  

			
	 Registered Number:
	  	NI 30077
		
	 Authorised share capital:
	  	100
		
	 Issued share capital:
	  	100
		
	 Directors:
	  	 Robert Geoffrey Elliott
 John Alexander King

Claire Gilligan
 Robert Graham Whiteford

		
	 Secretary:
	  	Robert Geoffrey Elliott
		
	 Auditors:
	  	PriceWaterhouseCoopers LLP
		
	 Accounting reference date:
	  	30 September
		
	 Registered Office:
	  	Seagoe Industrial Estate
	 	  	Craigavon
	 	  	County Armagh BT63 5UA

  

 - 28 - 

 Madaus (UK) Limited 
  

			
	 Registered Number:
	  	2821609
		
	 Authorised share capital:
	  	1,000,000
		
	 Issued share capital:
	  	2
		
	 Directors:
	  	 Robert Geoffrey Elliott
 John Alexander King

Dr Artrid Roever

		
	 Secretary:
	  	John Alexander King
		
	 Auditors:
	  	PricewaterhouseCoopers LLP
		
	 Accounting reference date:
	  	30 September
		
	 Registered Office:
	  	Broadwalk House
	 	  	5 Appold Street
	 	  	London EC2A 2HA

  

 - 29 - 

 SCHEDULE 3 
  

The Warranties 
  
 For the purpose of this schedule 3, “Company” means all and each of the Target Group Companies, as the context so admits and “Shares”
means the whole of the issued ordinary share capital of each of the Target Group Companies. 
  
 Where any Warranty is made or given “so far as the Seller is aware” or “to the best of the Seller’s knowledge” such Warranty shall be deemed to have been given to the best of the knowledge,
information and belief of the Seller after making, due and careful enquiries of Geoffrey Elliott, Robert Whiteford, John King, and Ken Ross, and in relation only to matters of regulatory licensing of the Pharma Sales and Marketing Business, Patricia
McKee and in relation to matters concerning Taxation, the Seller’s Accountant only and without any of them having made enquiry of any other person. 
  
 In this schedule 3 the following words have the following meanings, unless the context otherwise requires: 
  
 “Accounts” means the audited statutory financial statements of each Target Group Company comprising the balance sheet,
profit and loss account and cash flow statements of each Target Group Company, together in each case with the notes thereon, directors’ reports and auditors’ report, as at and for the financial period ended on the Accounts Date;

  
 “IHTA” means the Inheritance Tax Act 1984; 
  
 “Material Adverse Effect” means a material and adverse effect on the
business, assets or condition (financial or otherwise) of the Pharma Sales and Marketing Business conducted in the United Kingdom and Republic of Ireland excluding any adverse effects out of or resulting from changes in the general economy or the
reaction of employees, suppliers or customers to the Seller entering into this agreement or the Buyer acquiring the shares; 
  
 “Pharma Business” means the ethical pharmaceutical sales and marketing business of the Target Group Companies as at the opening of business on 27 April
2004. 
  
 “TA” means the Income and Corporation Taxes Act 1988;

  
 “Taxation Authority” means any local, municipal,
governmental, state, federal or fiscal, revenue, customs or excise authority, body, agency or official anywhere in the world having or purporting to have power or authority in relation to Tax including the Inland Revenue and HM Customs and Excise;

  
 “TCGA” means the Taxation of Chargeable Gains Act 1992; 

  
 “TMA” means the Taxes Management Act 1970; 
  
 “VATA” means the Value Added Tax Act 1994 and “VAT
legislation” means VATA and all regulations and orders made thereunder; 
  

	1.	ASSETS 

  

	1.1	Title 

  
 There are no Encumbrances, nor has the Company agreed to create any Encumbrances, over any part of its assets and each asset included in the Pharma
Business Trial Balance or acquired by it since the Pharma Business Trial Balance Date (other than assets sold in 

  

 - 30 - 

 
the ordinary course of business or in relation to any software which is licensed for use in the Pharma Business); 
  

	 	(a)	is legally and beneficially owned by the Company; and: 

  

	 	(b)	where capable of possession, in the possession of the Company. 

  

	2.	EFFECT OF SALE 

  

	2.1	Neither the execution nor performance of this agreement or any Transaction Document (save for the Product Transfer Agreement) to be executed at or before Completion will so far as
the Seller is aware: 

  

	 	(a)	conflict with or result in a material breach of the terms, provisions or conditions of any contracts or agreements, to which the Company is a party or any undertaking, judgment,
order, injunction or decree of any court; or 

  

	 	(b)	make the Company liable to transfer or purchase any material assets, (including but not limited to shares held by it in other bodies corporate) under their articles of association
or any agreement or arrangement; or 

  

	 	(c)	entitle any person to terminate any material contractual obligation; or 

  

	 	(d)	be likely to result in any significant customer of or supplier to the Company in relation to the Pharma Sales and Marketing Business ceasing to deal or substantially reducing the
existing level of its dealings with the Company and the Seller is not aware of any intention on the part of any such customer or supplier to cease so to deal or so to reduce the existing level of such dealings. 

  

	3.	PERMITS 

  

	3.1	The Company has obtained all material Permits for carrying on the Pharma Sales and Marketing Business lawfully in the places and in the manner in which such business is now carried
on by the Company. 

  

	3.2	All such Permits referred to in paragraph 3.1 above are valid and subsisting and so far as the Seller is aware there is no reason why such Permits should be suspended cancelled or
revoked or validly transferred to the Buyer without undue delay in connection with the transactions contemplated by this agreement. 

  

	4.	LITIGATION 

  

	4.1	Litigation 

  

	 	(a)	Save with respect to collection of debts in the ordinary course of business, the Company during the two years ending on the date of this agreement has not been involved in any
civil, criminal, arbitration, administrative or other proceeding in any jurisdiction which is material to the Pharma Sales and Marketing Business conducted in the United Kingdom or Ireland. So far as the Seller is aware as at the date hereof, no
civil, criminal, arbitration, administrative or other proceeding in any jurisdiction is pending or threatened by or against the Company which is material to the Pharma Sales and Marketing Business conducted in the United Kingdom or Ireland.

  

	 	(b)	There is no outstanding judgment, arbitral award or decision of a court, tribunal, arbitrator or governmental agency in any jurisdiction against the Company and the Company has not
given any undertaking to any court or to any third party arising out of any legal proceedings. 

  

 - 31 - 

	 	(c)	The Seller has not been notified of any injunction or order for specific performance against the Company. 

  

	4.2	Investigations 

  
 So far as the Seller is aware and save as disclosed in the Disclosure Letter, the Company is not and has not been subject to any investigation, enquiry or
disciplinary proceeding (whether judicial, quasi-judicial or otherwise) which is material to the operation of its business in any jurisdiction. The Company has not received any request for information from, any court or governmental authority
(including any national competition authority and the Commission of the European Communities and the EFTA Surveillance Authority) under any anti-trust or similar legislation in any jurisdiction. So far as the Seller is aware no matter exists which
might give rise to such an investigation, enquiry, proceeding or request for information. 
  

	5.	SELLER’S CAPACITY 

  

	5.1	Authorisations 

  
 The Seller has obtained all corporate authorisations and all other applicable governmental, statutory, regulatory or other consents, licences, waivers or
exemptions required to empower it to enter into and to perform its obligations under this agreement and the Transaction Documents. 
  

	5.2	Binding Obligation 

  
 Each of this agreement and the Transaction Documents has been duly executed and delivered by the Seller, and assuming the due execution and delivery by
the other parties hereto and thereto, constitutes the legal, valid and binding obligation of the Seller, enforceable against the Seller in accordance with its terms; 
  

	6.	THE COMPANY, THE SHARES AND THE SUBSIDIARIES 

  

	6.1	Incorporation and existence 

  
 The Seller and each Company are companies incorporated in their jurisdictions under the relevant laws and have been in continuous existence since
incorporation. 
  

	6.2	The Shares 

  

	 	(a)	The Company has not allotted any shares other than the relevant Shares (as set out in schedule 1) and those Shares are fully paid or credited as fully paid.

  

	 	(b)	There is no Encumbrance over any of the Shares or unissued shares in the capital of the Company and no person has claimed to be entitled to an Encumbrance in relation to any of the
Shares or unissued shares in the capital of the Company. 

  

	 	(c)	Other than this agreement, there is no agreement, arrangement or obligation requiring the allotment, issue, sale, transfer, redemption or repayment of, or the grant to a person of
the right (conditional or not) to require the allotment, issue, sale, transfer, redemption or repayment of, a share in the capital of the Company (including an option or right of pre-emption or conversion). 

  

	 	(d)	Save as set out in schedule 1 to this agreement, no Company has any subsidiaries, 

  

 - 32 - 

	6.3	Intra Vires 

  
 The Company has the power to carry on its business as now conducted and to the best of the Seller’s knowledge none of the contracts to which it is a
party are ultra vires. 
  

	6.4	Constitutional Documents 

  
 The memorandum and articles of association of the Company in the form disclosed are true and accurate and have embodied therein or annexed thereto copies
of all resolutions and agreements as are referred to in Article 388 of the Companies (Northern Ireland) Order 1986, and all amendments thereto (if any) were duly and properly made. 
  

	6.5	Register of Members 

  
 The register of members of the Company has been properly kept and contains true and complete record of the members from time to time of the Company and
the Company has not received any notice or allegation that any of them is incorrect or incomplete or should be rectified. 
  

	6.6	Powers of Attorney 

  
 The Company has not executed any power of attorney or conferred on any person other than its directors, officers and employees any authority to enter into
any transaction on behalf of or to bind the Company in any way and which power of attorney remains in force or was granted or conferred since its incorporation. 
  

	6.7	Statutory Books and Filings 

  

	 	(a)	The statutory books of the Company are up-to-date. 

  

	 	(b)	All resolutions, annual returns and other documents required to be delivered to the Registrar of Companies (or other relevant company registry or other corporate authority in any
jurisdiction) have been properly prepared and filed. 

  

	6.8	Dormant Companies 

  
 Chargelink Limited, Galen Pharmaceuticals Limited, Galen Healthcare Limited, Galen (UK) Limited, Galen Rhodes Limited, Inter-Medics Limited and Madaus UK
Limited have each ceased trading and each has no material assets and no liabilities. 
  

	7.	ACCOUNTS 

  

	7.1	General 

  

	 	(a)	The Accounts comply with the provisions of The Companies Order (Northern Ireland) 1986 as applicable and show a true and fair view of the assets and liabilities and of the state of
affairs, financial position and results at the Accounts Date of the Company (or of the Group to the extent that they are consolidated accounts). 

  

	 	(b)	The Accounts have been prepared in accordance with the law and applicable standards, accounting principles and practices generally accepted in the United Kingdom.

  

	 	(c)	Except as stated in the Accounts, those accounts have been prepared on a basis consistent with the basis upon which all audited accounts of the Company have been prepared in respect
of the three years before the Accounts Date. 

  

 - 33 - 

	7.2	Accounting and other records 

  
 The books of account and other records of the Company are up-to-date and have been maintained in all respects in accordance with the law and applicable
standards, principles and practices generally accepted in the United Kingdom. 
  

	8.	CHANGES SINCE PHARMA TRIAL BALANCE DATE 

  

	8.1	General 

  
 Since the Pharma Business Trial Balance Date and save as disclosed in the Disclosure Letter: 
  

	 	(a)	the Companies have carried on the Pharma Business in the ordinary and usual course and so as to maintain the business as a going concern; 

  

	 	(b)	there has been no material adverse change in the financial position of the Pharma Business carried on by the Companies and such business has been carried on in the ordinary and
usual course and the Seller has not disposed of any material assets used in connection with the Pharma Business other than in the ordinary and usual course of business; and 

  

	 	(c)	so far as the Seller is aware no substantial customer or supplier of the Target Group Companies relating to the Pharma Business has ceased purchasing from or supplying to the Seller
in connection with Pharma Business and so far as the Seller is aware there are no facts which are likely to give rise to such an effect. 

  

	8.2	Specific 

  
 Since the Accounts Date: 
  

	 	(a)	save as disclosed in the Disclosure Letter, the Company has not declared, paid or made a dividend or other distribution (including a distribution within the meaning of the TA)
except to the extent provided in the Accounts; 

  

	 	(b)	save as disclosed in the Disclosure Letter, no resolution of the shareholders of the Company has been passed (except for those representing the ordinary business of an annual
general meeting); 

  

	 	(c)	the Company has not repaid or redeemed share or loan capital, or made (whether or not subject to conditions) an agreement or arrangement or undertaken an obligation to do any of
those things other than in respect of intra-group indebtedness; and 

  

	 	(d)	the Company has not paid nor is under an obligation to pay any management charges other than intra-group charges disclosed. 

  

	8.3	Pharma Business Trial Balance 

  

	 	(a)	the Pharma Business Trial Balance has been prepared in accordance with accounting policies which are consistent with those used in preparing the Accounts; 

 

	 	(b)	save as disclosed in the Disclosure Letter, the Pharma Business discloses a view of the trading, profits, assets and liabilities of the business of the Pharma Business which is
accurate in all material respects for the five month period ending 29 February 2004. 

  

 - 34 - 

	 	(c)	other than Intra-Group Indebtedness, the Pharma Business Trial Balance includes all material assets and liabilities of the Pharma Business for the five month period ending 29
February 2004 and does not include any material assets or liabilities which do not relate to the Pharma Business. 

  

	8.4	Pro forma information on continuing products 

  

	 	(a)	The pro forma information on continuing products of the Pharma Business as disclosed in the Data Room Information does not include sales or gross margin which do not relate to the
Pharma Business. 

  

	 	(b)	The historic pro forma information for continuing products of the Pharma Business for the financial years ended September 2001, September 2002 and September 2003 disclose a view of
the sales of continuing products which is accurate in all material respects. 

  

	9.	INSOLVENCY 

  

	9.1	Winding up 

  
 No order has been made, petition presented or resolution passed for the winding up of the Company or for the appointment of a provisional liquidator to
the Company. 
  

	9.2	Administration 

  
 No administration order has been made and no petition for an administration order has been presented in respect of the Company. 
  

	9.3	Receivership 

  
 No receiver, receiver and manager or administrative receiver has been appointed of the whole or part of the Company’s business or assets. 

 

	9.4	Compromises with creditors 

  

	 	(a)	No voluntary arrangement under Article 14 of the Insolvency (Northern Ireland) Order 1989 has been proposed or approved in respect of the Company. 

  

	 	(b)	No compromise or arrangement under Article 418 of the Companies (Northern Ireland) Order 1986 has been proposed, agreed to or sanctioned in respect of the Company.

  

	 	(c)	The Company has not entered into any compromise or arrangement with its creditors or any class of its creditors generally. 

  

	10.	OFFICERS AND EMPLOYEES 

  

	10.1	Remuneration and benefits 

  
 The particulars annexed to the Disclosure Letter are true and complete in all material respects and show all remuneration and other contractual benefits:

  

	 	(a)	actually provided; and 

  

	 	(b)	which the Company is bound to provide (whether now or in the future) 

  
 to each officer and employee of the Company. 
  

 - 35 - 

	10.2	Terms and conditions 

  
 There are no terms and conditions in any contract with any officer or employee of the Company pursuant to which such person will be entitled to receive
any payment or benefit for which the Company would be liable as a direct consequence of the transaction contemplated by this agreement. 
  

	10.3	Loans 

  
 There are no amounts owing or agreed to be loaned or advanced by the Company to any directors, officers and employees of the Company (other than amounts
representing remuneration accrued due for the current pay period, accrued holiday pay for the current holiday year or for reimbursement of expenses). 
  

	10.4	Payment up to Completion 

  
 All salaries and wages and other contractual benefits of all employees of the Company have, to the extent due, been paid or discharged in full as at or
with effect from Completion. 
  

	10.5	Industrial Dispute 

  
 Save as disclosed in the Disclosure Letter, since the Accounts Date neither the Seller nor the Company has been engaged or involved in any dispute with
any of its employees, and so far as the Seller is aware no industrial action involving such employees, official or unofficial, exists at the date hereof to which the Company is a party which could reasonably be expected to have a Material Adverse
Effect. 
  

	10.6	As far as the Seller is aware, the Seller has terminated the employment of Sarwat Zubair, Kinsley Wilson, Andy Watters and Colin Dummigan in compliance with its statutory duties.

  

	10.7	Pension Schemes 

  

	 	(a)	Material particulars of the Pensions Scheme have been disclosed in the Disclosure Letter including true and accurate copies of the following in relation to each pension scheme:

  

	 	(i)	booklets currently in force and any announcements since the date of the last governing trust deed and rules to scheme members detailing pension benefits which are not the subject of
formal amendment to the governing trust deed and rules; and 

  

	 	(ii)	a list of members. 

  
 Other than as disclosed in the Disclosure Letter there are no other pension schemes for current or past directors or employees of the Company. 

 

	 	(b)	In relation to the Pension Scheme: 

  

	 	(i)	all contributions and premiums which have become due and payable to the Pension Scheme the Galen Ltd Long Term Disability Scheme (insured with UNUM) and Galen Ltd Group Life Scheme
(insured with Scottish Equitable) in respect of any employee or director or former employee or director of Company have been duly made; and 

  

 - 36 - 

	 	(ii)	other than benefits payable on death as disclosed, the Pension Scheme provides only money purchase benefits within the meaning of section 181 of the Pension Schemes Act 1993.

  

	 	(iii)	all employees who were members or were entitled to be members of the Galen Ltd No 2 Retirement Benefits Scheme and who are now members of the Pension Scheme have signed a waiver in
respect of any entitlement to membership of the Galen Ltd No 2 Retirement Benefits Scheme. 

  

	10.8	Liabilities and Payments 

  
 Save to the extent (if any) to which provision or allowance has been made in the Pharma Business Trial Balance: 
  

	 	(a)	no liability (which remains outstanding at the date hereof) has been actually incurred by the Company for breach of any contract of employment or for services or for severance
payments or redundancy payments or for compensation for unfair dismissal or for failure to comply with any order for the reinstatement or re-engagement of any employee of the Company or for sex, religious, disability or race discrimination or for
any other liability accruing from the termination or variation of any contract of employment in respect of any employee of the Company or for services; and 

  

	 	(b)	no gratuitous payment has been promised by the Company (which remains unpaid) in connection with the actual or proposed termination of any contract of employment or for services of
any present director or officer of the Company. 

  

	11.	INSURANCE 

  

	11.1	All the assets of the Company which are of an insurable nature are insured with a well established and reputable insurer against fire and all other risks normally insured against by
companies carrying on similar business or owning property of a similar nature to those of the Company. 

  

	11.2	All premiums due on policies of insurance relating to the Company and/or the Pharma Sales and Marketing Business have been duly paid and all such policies are to the best of the
knowledge of the Seller valid and in force. There is no material claim outstanding under any such policies. 

  

	12.	INFORMATION 

  

	12.1	This agreement 

  
 The information set out in the recitals and schedules 1 and 2 of this agreement are true and accurate in all respects. 
  

	13.	BUSINESS CONTRACTS 

  
 For the purposes of this paragraph 13, reference to “material contracts” shall mean contracts in relation to which the revenues
generated are material to the Pharma Sales and Marketing Business. 
  

	13.1	Nature of the Business Contracts 

  
 The Company is not a party to any material contract or agreement or transaction which: 
  

	 	(a)	was entered into otherwise than in the ordinary and usual course of the Pharma Sales and Marketing Business; 

  

 - 37 - 

	 	(b)	is of an unusual or abnormal nature; or 

  

	 	(c)	is not on an arm’s length basis. 

  

	13.2	Performance of Business Contracts 

  

	 	(a)	All material contracts in respect of the Pharma Sales and Marketing Business have been disclosed and the terms of all contracts of the Company have been complied with by the Company
in all material respects and there are no circumstances likely to give rise to a default by the Company under any such material contracts. 

  

	 	(b)	The Company has received no written notice of claims of material amounts which are outstanding against the Company from customers or other parties in respect of defects in quality
or delays in delivery or completion of contracts or deficiencies of performance of otherwise relating to liability for services supplied by the Company and so far as the Seller is aware no such claims are threatened or pending and so far as the
Seller is aware there is no matter or fact in existence in relation to services currently supplied by the Company which are likely to give rise to the same. 

  

	 	(c)	Neither the Seller nor the Company has received written notice of any intention to terminate, repudiate or disclaim any material agreement or transaction to which the Company is a
party. 

  

	14.	TAX 

  

	14.1	General Administration 

  
 The Company has made all returns and supplied all information and given all notices to the Inland Revenue and any other Taxation Authority as required by
law within any requisite period and all such returns and information and notices are correct and accurate in all material respects and are not the subject of any dispute and, so far as the Seller is aware, there are no facts or circumstances likely
to give rise to or be the subject of any such dispute. 
  
 The
Company has not been subject to any audit visit, investigation, discovery or access order by any Taxation Authority and so far as the Seller is aware, there are no circumstances existing which make it likely that a non-routine visit, audit,
investigation, discovery or access order will be made. 
  
 Copies
of all concessions agreements and other formal and informal arrangements documented in writing with any Taxation Authority relating to the Company and all subsequent correspondence relating to the same with the Taxation Authority are in the
possession of the Company. 
  

	14.2	Accounts 

  
 The Accounts make proper provision or reserve in respect of any period ended on or before the Accounts Date for all Tax assessed or liable to be assessed
on the Company or for which it is accountable in respect of income, profits or gains earned, accrued or received or deemed to be earned, accrued or received at the Accounts Date whether or not the Company has or may have any right of reimbursement
against any other person and proper provision has been made and shown in the Accounts for deferred Tax in accordance with generally accepted accounting principles. 
  
 The Company has duly submitted all claims and disclaimers the making of which has been assumed for the purposes of the
Accounts. 
  

 - 38 - 

	14.3	Payment of Tax 

  
 The Company has duly and punctually paid all Tax to the extent that the same ought to have been paid and is not liable nor has it within three years prior
to the date hereof been liable to pay any penalty or interest in connection therewith. 
  

	14.4	Pay As You Earn 

  
 The Company has properly operated the PAYE system deducting Tax as required by law from all payments to or treated as made to or benefits provided for
employees, ex-employees or independent contractors of the Company and duly accounted to the Inland Revenue for Tax so deducted and has complied with all its reporting obligations to the Inland Revenue in connection with any such payments made or
benefits provided, and no PAYE audit in respect of the Company has been made by the Inland Revenue nor has the Company been notified that any such audit will be made. 
  

	14.5	Corporation Tax, Including Corporation Tax On Chargeable Gains 

  
 The Company has sufficient information and records relating to past events to accurately determine the tax consequences of the disposal of any capital
asset of the Company. 
  

	14.6	Loan Relationships 

  

	 	(a)	So far as the Seller is aware, the Company has not been party to a loan relationship, which had an unallowable purpose (within the meaning of paragraph 13 of Schedule 9, FA 1996).

  

	 	(b)	The Company has not entered into any transaction to which paragraph 11 of Schedule 9, FA 1996 applies. 

  

	14.7	Residence 

  
 The Company has always been resident in the territory in which it was incorporated and has never been resident in any other territory or treated as so
resident for the purposes of any double tax agreement. 
  

	14.8	VAT 

  
 The Company is a taxable person for the purposes of VAT and has complied in all material respects with the requirements and provisions of the VAT legislation and has made and maintained and will pending Completion
make and maintain accurate and up to date records invoices accounts and other documents required by or necessary for the purposes of the VAT legislation and the Company has at all times punctually paid and made all payments and returns required
there under. 
  

	14.9	Transactions at arm’s length 

  
 No notice or enquiry pursuant to section 770A and Schedule 28AA of the TA has been made in connection with any transactions of the Company. 
  

	15.	LEGISLATION 

  
 Neither the Seller nor the Company has received notice that the Company is in material breach of any legislation applicable to it. 
  

 - 39 - 

	16.	INTELLECTUAL PROPERTY 

  

	16.1	General 

  
 The Disclosure Letter contains details of all registered Intellectual Property used by the Company in the Pharma Sales and Marketing. So far as the Seller
is aware all such Intellectual Property is free from Encumbrances. 
  

	16.2	Renewals/Maintenance 

  
 All due registration and renewal fees have been paid in relation to the registered Intellectual Property used in the Pharma Sales and Marketing Business
and so far as the Seller is aware there, is no reason why such registrations should be revoked or declared invalid. 
  

	16.3	Licences 

  

	 	(a)	Details of all written licences which have been granted by the Company relating to the Intellectual Property owned by the Company which are material to the Pharma Sales and
Marketing Business of the Company are set out in the Disclosure Letter. The Seller is not aware of any material breach of such licences. 

  

	 	(b)	Details of all licences granted to the Company which are material to the Pharma Sales and Marketing Business of the Company are set out in the Disclosure Letter. The Seller is not
aware of any material breach nor of any fact or matter which so far as the Seller is aware, would or may create a material breach of such licences. 

  

	16.4	Infringement 

  

	 	(a)	So far as the Seller is aware, the Pharma Sales and Marketing Business does not, and is not likely to, infringe the Intellectual Property of any other person.

  

	 	(b)	So far as the Seller is aware, no third party is infringing or misusing or threatening to infringe or misuse the Intellectual Property owned by or licensed to the Company which is
used in the Pharma Sales and Marketing Business. 

  

	16.5	Confidentiality 

  
 So far as the Seller is aware none of the operations of the Company have involved the unauthorised use of confidential information disclosed to any
Company in circumstances which might entitle a third party to make a claim against the Company in respect of such use. 
  

 - 40 - 

 SCHEDULE 4 
 Seller Protection Clauses 
  

	1.	Notwithstanding anything to the contrary herein and save in the case of fraud or fraudulent concealment by the Seller, the Seller shall be under no liability in respect of any claim
under the Warranties or the Tax Deed (to the extent that claims thereunder are subject to this schedule 4) and any such claim shall be wholly barred and unenforceable unless written notice of such claim setting out full details of the relevant claim
(including the grounds on which such claim is based and the amount claimed to be payable in respect thereof) shall have been served upon the Seller by the Buyer promptly after it becomes likely that a claim will be made, and in any event:

  

	1.1	in the case of a claim under the Warranties (other than the Warranties relating to Tax) by not later than 5.00 p.m. Greenwich Mean Time on the date which is eighteen months from the
Completion Date; and 

  

	1.2	in the case of a claim under the Warranties relating to Tax or the Tax Deed by not later than 5.00 p.m. Greenwich Mean Time on the seventh anniversary of the date hereof,

  

	1.3	and the liability of the Seller for any claim specified in such notice shall absolutely determine and cease (unless the amount payable in respect of the relevant claim has been
agreed by the Seller within six months of the date of such written notice); 

  

	 	(a)	if legal proceedings have not been instituted in respect of such claim by the due service of process on the Seller within six months of the date of such written notice; or

  

	 	(b)	in the event that the Seller shall make in respect thereof a request to the Buyer to make recovery in the circumstances referred to in paragraph 9.1(b) and paragraph 9.2 and if
legal proceedings have not been instituted by the Buyer in respect of such claim by the due service of process on the Seller within six months of the date on which judgment is given by a court of competent jurisdiction in respect of such third party
proceedings as shall have been instituted by the Buyer pursuant to such request or the date settlement is reached in such third party proceedings with the consent of the Seller or on which the Seller and the Buyer agree that proceedings or other
action against the third party shall be abandoned. 

  
 For the purpose of this paragraph 1.3 legal proceedings shall not be deemed to have been commenced unless they shall have been properly issued and validly served upon the Seller. 
  

	2.	Save in the case of fraud or fraudulent concealment the Seller shall be under no liability in respect of any claim under the Warranties or the Tax Deed: 

  

	2.1	where the liability of the Seller in respect of that claim would (but for this paragraph) have been less than £5,000 and, in the case of the Warranties only, such claims shall
be disregarded in determining the aggregate value of claims pursuant to the provisions of paragraph 2.2; or 

  

	2.2	in the case of the Warranties only, unless and until and only to the extent that the liability in respect of that claim (not being a claim for which liability is excluded under,
paragraph 2.1 above) when aggregated with the liability of the Seller in respect of all other such claims shall exceed £400,000 at which time the Seller shall be liable for the full amount of the claim (up to the threshold indicated in clause
3 (below)) and not merely the excess over that sum. 

  

 - 41 - 

	3.	Save in the case of fraud or fraudulent concealment the aggregate liability of the Seller in respect of all claims under this agreement, the Business Transfer Agreement and the Tax
Deed shall not in any circumstances exceed £40 million. 

  

	3.1	Subject to clause 3, the Buyer agrees that the Seller shall have no greater liability (whether in contract, tort or otherwise) than it would have had had the sale of the Shares and
the sale of the business and assets in the Business Transfer Agreement been effected pursuant to one agreement rather than two separate agreements and the parties hereto agree that the provisions of paragraphs 3.2 and 3.3 shall apply accordingly.

  

	3.2	Notwithstanding clause 19 (Entire Agreement) of the Business Transfer Agreement and pursuant to and in accordance with clause 20 (Variations) of said agreement, the Buyer agrees
that if it has any claim under the warranties contained in the Business Transfer Agreement, such claim shall, together with any claim under the warranties, be subject to the limitations set out in this schedule 4 and not the limitations set out in
schedule 5 of the Business Transfer Agreement. 

  

	3.3	No liability (whether in contract, tort or otherwise) shall attach to the Seller in respect of any claim under this agreement to the extent that the facts or circumstances giving
rise to the claim also give rise to a claim under the warranties contained in the Business Transfer Agreement and the Seller shall have satisfied such claim. For the avoidance of doubt, where any facts or circumstances could give rise to a claim
under this agreement and under the Business Transfer Agreement, the Buyer hereby agrees that it shall only pursue such claim under one of the agreements and not both. 

  

	4.	The Seller shall be under no liability in respect of any claim under the Warranties to the extent that the facts or circumstances giving rise thereto are known to the Managers at
the date hereof or are fairly disclosed or are otherwise known to the Buyer’s Group at the date hereof. For the purposes of this clause “fairly disclosed” shall mean disclosed in the Disclosure Letter in such a manner and in such
detail as to enable the Buyer to make a reasonably well informed assessment of the matter. 

  

	5.	No liability (whether in contract, tort or otherwise) shall attach to the Seller in respect of any claim under the Warranties or the indemnities referred to at clause 7.4 of this
agreement to the extent that: 

  

	5.1	the claim or the events giving rise to the claim would not have arisen but for an act, omission or transaction following Completion of the Buyer’s Group or which would not have
arisen but for any claim, election or surrender or disclaimer made or omitted to be made or notice or consent given or omitted to be given by the Buyer’s Group under the provisions of any statutes relating to Taxation the making, giving or
doing of which was assumed in computing the Taxation liabilities of the Seller’s Group for the purposes of the Accounts (as defined in Schedule 3); 

  

	5.2	the claim occurs wholly or partly out of or the amount thereof is increased as a result of any act, omission or transaction undertaken on or before Completion at the request of, or
with the approval of, the Buyer. 

  

	6.	No liability (whether in contract, tort or otherwise) shall attach to the Seller in respect of any claim under the Warranties to the extent that: 

  

	6.1	the claim occurs wholly or partly out of or the amount thereof is increased as a result of: 

  

	 	(a)	any change in the accounting principles or practices of the Buyer’s Group introduced or having effect after the date of this agreement unless the same is introduced to bring
the accounting principles and practices into line with generally accepted accounting principles and practices in the UK in relation to a business of the type carried on by the Target Group Companies; or 

  

 - 42 - 

	 	(b)	any increase in the rates of Taxation made after the date hereof and which affects matters occurring prior thereto; or 

  

	 	(c)	any change in law or regulation or in its interpretation or administration by the English or Northern Irish courts, by the Inland Revenue or by any other fiscal, monetary or
regulatory authority (whether or not having the force of law) or the equivalent laws, regulations or authorities in any jurisdiction in which the Target Group Companies operate or in each case occurring after Completion and which affects matters
occurring prior thereto, 

  

	6.2	the loss or damage giving rise to the claim is recoverable by the Buyer’s Group under any policy of insurance; and 

  

	6.3	the claim relates to a claim or liability for Taxation and would not have arisen but for any winding-up or cessation after Completion of any business or trade carried on by the
Target Group Companies. 

  

	6.4	the facts or circumstances giving rise to the claim also give rise to a claim under the Tax Deed or the indemnities referred to at clause 7.4 of this agreement and the Seller shall
have satisfied such claim. 

  

	6.5	provision or reserve in respect of any liability giving rise to the claim in question (including any liability for Taxation) is made in the Accounts or Completion Accounts.

  

	7.	In assessing any liabilities damages or other amounts recoverable by the Buyer as a result of any claim under the Warranties there shall be taken into account any benefit accruing
to the Buyer’s Group arising out of the same subject matter or circumstances giving rise to a claim under the Warranties including, without prejudice to the generality of the foregoing, any amount of any relief obtained or obtainable by the
Buyer’s Group and any amount by which any Taxation for which the Buyer’s Group is or may be liable to be assessed or accountable is actually reduced or extinguished, arising directly or indirectly in consequence of the matter which gives
rise to such claim. 

  

	8.	No liability will arise and no claim may be made under any of the Warranties to the extent that the matter giving rise to such claim is remediable unless within the period of 30
days following the Buyer becoming aware of such matter the Buyer shall have given written notice thereof to the Seller and such matter shall not have been remedied to the reasonable satisfaction of the Buyer within the period of 30 days following
the date of service of such notice. 

  

	9.	

  

	9.1	Clause 9.2 shall apply in circumstances where, subject to the notice provisions set out in clause 1: 

  

	 	(a)	any claim is made against the Buyer’s Group which may give rise to a claim by the Buyer’s Group against the Seller under the Warranties; or 

  

	 	(b)	the Buyer’s Group is or may be entitled to make recovery from some other person any sum in respect of any facts or circumstances by reference to which the Buyer’s Group
has or may have a claim against the Seller under the Warranties; or 

  

	 	(c)	the Seller shall have paid to the Buyer’s Group an amount in respect of a claim under the Warranties and subsequent to the making of such payment the Buyer’s Group becomes
or shall become entitled to recover from some other person a sum which is referable to that payment. 

  

 - 43 - 

 For the avoidance of doubt, any claim under the Warranties relating to tax shall be brought in accordance
with and governed by clause 7 of the Tax Deed. 
  

	9.2	In the circumstances provided in clause 9.1, the Buyer shall and shall procure that the Buyer’s Group: 

  

	 	(a)	subject to receiving an undertaking from the Seller in respect of all costs reasonably and properly incurred thereby by the Buyer’s Group promptly and diligently take all such
action as the Seller reasonably may request including the institution of proceedings and the instruction of professional advisers approved by the Seller (such approval not to be unreasonably withheld or delayed) to act on behalf of the Buyer to
avoid, dispute, resist, compromise, defend or appeal against any such claim against the Buyer’s Group as is referred to in paragraph 9.1(a) or to make such recovery by the Buyer’s Group as is referred to in paragraph 9.1(b) or paragraph
9.1(c), as the case may be; and 

  

	 	(b)	not settle or compromise any liability or claim to which such action is referable without the prior written consent of the Seller which consent shall not be unreasonably withheld or
delayed; and 

  

	 	(c)	in the case of paragraph 9.1(c) only, promptly repay to the Seller an amount equal to the amount so recovered or, if lower, the amount paid by the Seller to the Buyer, less in each
case any costs incurred by the Buyer’s Group in so recovering or any Taxation incurred by the Buyer’s Group on the amount received. 

  

	10.	The Buyer shall covenant but not as condition precedent to liability on the part of the Seller as soon as practicable to: 

  

	10.1	inform the Seller in writing of any fact, matter, event or circumstance which comes to its notice or to the notice of the Buyer’s Group whereby it appears that the Seller is or
may be liable to make any payment in respect of any claim under the Warranties or whereby it appears the Buyer’s Group shall become or may become entitled to recover from some other person a sum which is referable to a payment already made by
the Seller in respect of such a claim; and 

  

	10.2	thereafter keep the Seller informed of all material developments in relation thereto; and 

  

	10.3	provide at the cost of the Seller access to all such information and documentation (no matter how it is recorded or stored) as the Seller shall reasonably request in connection
therewith and also in connection with any proceedings instituted by or against the Buyer’s Group under paragraph 9.1. 

  

	11.	No liability in respect of any claim for Taxation under the Warranties shall become payable: 

  

	11.1	in the case of a claim for Taxation involving an actual payment of tax or the loss or set off of a relief against Taxation, prior to the date which is five Business Days before the
last date on which a payment of Taxation becomes actually due and payable without incurring interest or penalties under or in consequence of the claim for Taxation in question; or 

  

	11.2	in the case of a claim for Taxation involving the loss of or reduction of a right to repayment of Taxation, prior to the day on which any repayment or increased repayment of
Taxation which, but for such claim for Taxation would have been available, would have been due. 

  

	12.	In the event that the Seller at any time after the date hereof shall wish to take out insurance against its liability hereunder, the Buyer undertakes to provide such information as
the prospective insurer may require before effecting such insurance. 

  

 - 44 - 

	13.	The Buyer hereby warrants and confirms that having made due and Careful enquiry (which shall include due and careful enquiry of the Managers) at the date hereof, it has not already
formulated and is not aware of any claim it may have against the Seller under the Warranties PROVIDED THAT such confirmation shall not constitute a general waiver by the Buyer of any rights which it may have under this agreement in respect of any
breach of Warranty arising from information subsequently in the Buyer’s possession which may in the future form a basis of a claim under the Warranties or the Tax Deed. 

  

	14.	The Buyer’s Group undertakes to take or procure the taking of all such steps and action as are necessary or as the Seller may reasonably require in order to mitigate any claim
under the Warranties and the Buyer’s Group shall act in accordance with such request subject to the Buyer being indemnified by the Seller against all reasonable costs and expenses incurred in connection therewith. Nothing in this agreement
shall or shall be deemed to relieve the Buyer of any common law or other duty to mitigate any loss or damage incurred by it. 

  

	15.	Any amount payable by the Seller to the Buyer in satisfaction of any claim under the Warranties or under the Tax Deed shall be treated as a reduction by that amount of the
consideration. 

  

	16.	The Buyer shall have no claim against the Seller under this agreement for damages for breach of Warranty to the extent that provision for such damages are accounted for in the
Working Capital Amount. 

  

 - 45 - 

 SCHEDULE 5 
 Completion Accounts 
 Part 1 
 Pro forma Completion Accounts 
  

																							
	 	  	1	  	2	  	3	  	4	  	5	  	6	  	7	  	8	  	9	  	10	  	11
	 	  	 Galen
 UK Ltd

	  	 Galen
 Ltd

	  	 Madaus
 UK Ltd

	  	 Inter
 Medics
Ltd

	  	 Consol.
 Adj

	  	 Galen
 (UK)
 Consolidated

	  	 Galen
 Rhodes

	  	 Galen
 Pharmaceuticals
Ltd

	  	 Galen
 Healthcare
 Ltd

	  	 Chargelink
 Ltd

	  	 Target
 Group

	 Fixed Assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Intangible assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Tangible assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Investments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

												
	 Current Assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Stock
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Debtors - Trade
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Debtors - Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Debtors - Group
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Prepayments
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Taxation recoverable
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Bank & Cash
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

												
	 Current Liabilities
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Loans
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Overdraft
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Creditors - Trade
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Creditors - Other
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Creditors - Group
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Accruals
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 Taxation - current
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Net Current Assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Deferred Taxation
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

	 Net Assets
	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	
	  	

  
 Notes 
  

	1.	6 = sum 1 to 5 

  

	2.	11 = sum 6 to 10 

  

 - 46 - 

 Part 2 
 Statement 
  
 Target
Group 
  
 £’000 
  

			
	 Stock
	  	 
	 Debtors - Trade
	  	 
	 Debtors - Other
	  	 
	 Debtors - Group
	  	 
	 Prepayments
	  	 
	 Taxation recoverable
	  	 
	 Bank and Cash
	  	 
	 	  	

	 	  	0
	 	  	

	 Overdraft
	  	 
	 Creditors - Trade
	  	 
	 Creditors - Other
	  	 
	 Accruals
	  	 
	 Loans
	  	 
	 Creditors Group
	  	 
	 Taxation Current
	  	 
	 Taxation Deferred
	  	 
	 	  	

	 	  	0
	 	  	

	 Working Capital Amount
	  	0
	 	  	

  

 - 47 - 

 Part 3 
 Accounting Policies and Procedures 
  

	1.	GENERAL REQUIREMENTS 

  

	1.1	The Completion Accounts will consist of a consolidated Target Group balance sheet as at the close of business on the date of Completion (in the format set out in Part 1 of this
Schedule) calculated by: 

  

	 	(a)	consolidating the balance sheets of Galen (UK) Limited and its subsidiaries, and 

  

	 	(b)	aggregating the consolidated Galen (UK) Limited balance sheet and the balance sheets of other Target Group Companies, in the manner set out in Part 1 of this Schedule.

  

	1.2	The Completion Accounts will be prepared (subject as otherwise provided): 

  

	 	(a)	in accordance with the specific policies of accounting set out in paragraph 2, and, subject thereto; 

  

	 	(b)	in accordance with the bases and policies of accounting adopted and applied in the preparation of: 

  

	 	(i)	in the case of Galen Limited, the Pharma Business Trial Balance, 

  

	 	(ii)	in the case of other Target Group Companies, the March Management Accounts 

  
 and in each case, subject thereto; 
  

	 	(c)	in accordance with the accounting principles and practices generally accepted in the United Kingdom. 

  

	2.	SPECIFIC POLICIES 

  

	2.1	Fixed Assets 

  

	 	(a)	Tangible fixed assets shall be included at the net book value at which they were included in the Pharma Business Trial Balance, (or, if acquired after the Pharma Business Trial
Balance Date, their cost) less depreciation from the Pharma Business Trial Balance Date (or acquisition date, if later) to the date of Completion, calculated on a pro rata basis using rates consistent with those used in the preparation of the Pharma
Business Trial Balance. 

  

	 	(b)	Intangible fixed assets shall be included at the net book value at which they were included in the Pharma Business Trial Balance, (or, if acquired after the Pharma Business Trial
Balance Date, their cost) less amortisation from the Pharma Busines Trial Balance Date (or acquisition date, if later) to the date of Completion, calculated on a pro rata basis using rates consistent with those used in the preparation of the Pharma
Business Trial Balance. 

  

	2.2	Stocks 

  
 Stocks shall be included in the Completion Accounts at the valuation agreed and or determined in accordance with clause 6. 
  

 - 48 - 

	2.3	Excluded receivables 

  

	 	(a)	The Completion Accounts shall exclude amounts payable by Allphar to Galen Chemicals Limited in respect of the sale of the Pharma Business’ products. 

 

	 	(b)	The Completion Accounts shall exclude amounts receivable from Strakan in respect of the sale of the Isotard licence. 

  

	 	(c)	The Completion Accounts shall exclude amounts receivable from CTS in respect of tax credits due in respect of the CTS transaction. 

  

	2.4	Provisions 

  

	 	(a)	Provision shall be made for bad and doubtful debts on a basis consistent with that used in the Pharma Business Trial Balance. 

  

	 	(b)	Provision shall be made for slow moving and obsolete stock on a basis consistent with that used in the Pharma Business Trial Balance. 

  

	2.5	Taxation 

  

	 	(a)	A provision for corporation tax will be made which will be for any unpaid corporation tax relating to any accounting periods ending on or before the Accounts Date together with a
provision for any corporation tax for the period from the Accounts Date to Completion (“the Stub Period”) calculated in accordance with paragraph (b) less any payments on account made in respect of the Stub Period.

  

	 	(b)	The corporation tax provision for the Stub Period will be calculated through the preparation of a corporation tax computation on the assumption that the date of Completion was the
financial year end of each of the Target Group Companies. 

  

	 	(c)	A deferred tax provision shall be calculated on a basis consistent with that used in the preparation of the Accounts and on the assumption that the date of Completion was the
financial year end of each of the Target Group Companies. 

  

 - 49 - 

 SCHEDULE 6 
 Buyer’s Protection 
  

	1.	Subject to the provisions of paragraph 2, in consideration of the Buyer entering into the sale and purchase of the Shares, the Seller agrees with the Buyer that it shall indemnify
and keep indemnified the Buyer and each member of the Buyer’s Group against all losses, claims, expenses and damages including legal and other professional fees and expenses reasonably and properly incurred arising following Completion in
respect of: 

  

	 	(a)	any assets or liabilities whatsoever contained within Chargelink Limited, Galen Pharmaceuticals Limited, Galen Healthcare Limited, Galen (UK) Limited, Galen Rhodes Limited,
Inter-Medics Limited and Madaus UK Limited which do not relate to the ethical pharmaceutical sales and marketing business of the Target Group but which relate to businesses carried on prior to the Completion Date by any such company or any other
member of the Seller’s Group to the extent that such loss, claim, expense or damages arises by reason of the Buyer becoming the legal and beneficial owner of the Shares; 

  

	 	(b)	the claims for unfair dismissal, gender and religious discrimination claims brought by Olive Keown and Allyn Keown on 2 December 2003 and the claim for unfair dismissal brought by
Roy Clarke on 21 January 2003 against Galen; 

  

	 	(c)	the sexual discrimination claim brought by Joanne McCullough on 6 May 2003 against Galen; 

  

	 	(d)	the claim brought by Claire Passmore in relation to the Galen five year save as you earn scheme on 30 June 2001 against Galen; and 

  

	 	(e)	any claim brought by Ewan Corsie in respect of a gas explosion in Galen House in December 2001. 

  

	2.	The Buyer: 

  

	 	(a)	shall seek, where possible, to mitigate any loss, damage or liability in relation to a claim which is made against the Seller pursuant to clause 1; 

  

	 	(b)	shall not make (and shall procure that no member of the Buyer’s Group will make) any admission of liability, agreement, settlement or compromise with any third party in
relation to the subject of the matters referred to at clause 1 without the prior written consent of the Seller (such consent not to be unreasonably withheld or delayed); and 

  

	 	(c)	no claim shall be brought against the Seller under clause 1 unless the Buyer shall have given written notice to the Seller of such claim giving such reasonable details as are then
available on or before the date falling five years after the Completion Date. 

  

	3.	Subject to the provisions of paragraphs 4 to 6 below, in consideration of the Buyer entering into the sale and purchase of the Shares the Seller agrees with the Buyer that that it
shall indemnify and keep indemnified the Buyer and each member of the Buyer’s Group against all fines, penalties and expenses (including legal and other professional fees and expenses reasonably and properly incurred) arising following
Completion in respect of the investigation commenced on 2 December 2002 concerning Warfarin and penicillin based antibiotics, in each case more specifically disclosed at paragraph 4.2 of the Disclosure Letter. 

  

 - 50 - 

	4.	The Buyer shall have no right to an indemnity under clause 3 if it fails to comply with paragraph 5 or paragraph 6(b). 

  

	5.	If the Buyer becomes aware of a matter which might give rise to a claim under this indemnity under paragraph 3: 

  

	 	(a)	the Buyer shall promptly give notice in writing to the Seller of the matter setting out reasonable details of the relevant claim (including the grounds (to the extent known) on
which such claim is based and the amount claimed to be payable (to the extent known) in respect thereof) and consult with the Seller with respect to the matter; if (and when) the matter has become the subject of proceedings the Buyer shall notify
the Seller within sufficient time to enable the Seller to contest the proceedings before final judgment; 

  

	 	(b)	the Buyer shall provide to the Seller and its advisers reasonable access to premises and personnel and to all relevant assets, documents and records that it possesses or controls
for the purposes of investigating the matter and enabling the Seller to take the action referred to in paragraph 5(d); 

  

	 	(c)	the Seller (at its cost) may take copies of the documents or records, and photograph the premises or assets, specified in paragraph 5(b); 

  

	 	(d)	the Buyer shall: 

  

	 	(i)	take any action and institute any proceedings, and give any information and assistance the Seller may reasonably request: 

  

	 	(A)	in relation to the matter (including disputing, resisting, appealing, compromising, defending, remedying or mitigating any claim or demand arising in relation to or in connection
with the matter); or 

  

	 	(B)	to enforce against a person (other than the Seller) the Buyer’s rights in relation to or in connection with the matter; and 

  

	 	(ii)	in connection with proceedings related to the matter (other than against the Seller ) use advisers chosen by the Seller and, if the Seller requests, allow the Seller the exclusive
conduct of the proceedings; 

  

	 	(e)	the Buyer may not admit liability in respect of or settle the matter without first obtaining the Seller’s written consent (such consent not to be unreasonably withheld or
delayed). 

  

	6.	The Buyer shall: 

  

	 	(a)	seek to keep to a minimum any loss it, incurs as a result of a matter giving rise to any claim under the indemnities at paragraphs 1 and 3 and nothing in paragraphs 3 to 6 in any
way restricts this obligation or the Buyer’s general obligation at law to mitigate a loss which it may incur as a result of a matter giving rise to such a claim; and 

  

	 	(b)	not encourage or promote any demand, claim or proceeding by any third party against it in relation to any matter in relation to which the indemnities of clause 1 and 3 apply.

  

 - 51 - 

					
	 Signed by
	  	)	  	Illegible
	 for and on behalf of
	  	)	  	 
	 GALEN HOLDINGS PLC
	  	)	  	 
	 in the presence of:
	  	)	  	 
	 Deborah Swan
	  	 	  	 
	 Solicitor
	  	 	  	 
			
	 Signed by
	  	)	  	Illegible
	 for and on behalf of
	  	)	  	 
	 NELAG LIMITED
	  	)	  	 
	 in the presence of:
	  	 	  	 
	Illegible	  	 	  	 
	 Solicitor
	  	 	  	 
			
	 Signed by
	  	)	  	Illegible
	 for and on behalf of
	  	)	  	 
	 GALEN LIMITED
	  	)	  	 
	 in the presence of:
	  	)	  	 
	 Deborah Swan
	  	 	  	 
	 Solicitor
	  	 	  	 
			
	 Signed by
	  	)	  	Illegible
	 for and on behalf of
	  	)	  	 
	 GALEN (CHEMICALS) LIMITED
	  	)	  	 
	 in the presence of:
	  	)	  	 
	 Deborah Swan
	  	 	  	 
	 Solicitor
	  	 	  	 

  

 - 52 -Purchase and Sale Agreement, dated April 27,2004

 Exhibit 10.24 
  
 DATED 27th APRIL 2004 
  
 GALEN LIMITED 
  
 GALEN HOLDINGS PLC

  
 GALEN (CHEMICALS) LIMITED 
  
 and 
  
 NELAG LIMITED 
  
 AGREEMENT FOR THE SALE AND PURCHASE 
 Of PART OF THE BUSINESS AND CERTAIN ASSETS OF 
 GALEN LIMITED AND GALEN CHEMICALS LIMITED 
  
 

 
  

 INDEX 
  

					
	 1.
	  	 DEFINITIONS AND INTERPRETATION
	  	4
			
	 2.
	  	 SALE AND PURCHASE OF THE ASSETS
	  	10
			
	 3.
	  	 PURCHASE PRICE AND PAYMENT PROVISIONS
	  	11
			
	 4.
	  	 COMPLETION
	  	11
			
	 5.
	  	 PRODUCT LICENCES
	  	12
			
	 6.
	  	 RECORDS AND REGISTRATION INFORMATION
	  	14
			
	 7.
	  	 CONTRACTS
	  	14
			
	 8.
	  	 WARRANTIES
	  	15
			
	 9.
	  	 PROTECTION OF GOODWILL
	  	15
			
	 10.
	  	 PROVISIONS RELATING TO STOCK
	  	20
			
	 11.
	  	 VAT
	  	21
			
	 12.
	  	 EMPLOYEES
	  	22
			
	 13.
	  	 CONFIDENTIAL INFORMATION
	  	23
			
	 14.
	  	 ANNOUNCEMENTS
	  	23
			
	 15.
	  	 ASSIGNMENT
	  	24
			
	 16.
	  	 COSTS
	  	24
			
	 17.
	  	 EFFECT OF COMPLETION
	  	24
			
	 18.
	  	 FURTHER ASSURANCES
	  	24
			
	 19.
	  	 ENTIRE AGREEMENT
	  	25
			
	 20.
	  	 VARIATIONS
	  	25
			
	 21.
	  	 WAIVER
	  	25
			
	 22.
	  	 INVALIDITY
	  	26
			
	 23.
	  	 NOTICES
	  	26
			
	 24.
	  	 COUNTERPARTS
	  	27
			
	 25.
	  	 GOVERNING LAW AND JURISDICTION
	  	27
			
	 26.
	  	 THIRD PARTY RIGHTS
	  	28
		
	 SCHEDULE 1
	  	29
		
	PRODUCT	  	29
		
	 SCHEDULE 2
	  	38

  

			
	 ASSETS AND APPORTIONMENT OF PURCHASE PRICE
	  	38
		
	 SCHEDULE 3
	  	39
		
	 ASSUMED EMPLOYEES
	  	39
		
	 SCHEDULE 4
	  	40
		
	 BUSINESS CONTRACTS
	  	40
		
	 SCHEDULE 5
	  	43
		
	 WARRANTOR PROTECTIONS
	  	43
		
	 SCHEDULE 6
	  	47
		
	 DETAILS OF THE TRADEMARKS
	  	47
		
	 SCHEDULE 7
	  	 
		
	 THE WARRANTIES
	  	 

  

 THIS AGREEMENT is dated 27 day of April 2004 
  
 BETWEEN 
  
 GALEN LIMITED a Company incorporated under the laws of Northern Ireland whose registered office is at Unit 22, Seagoe Industrial Estate, Craigavon, Northern
Ireland BT63 5UA (“Galen”) (1); 
  
 GALEN
(CHEMICALS) LIMITED a Company incorporated under the laws of the Republic of Ireland whose registered office is at 4 Adelaide Street, Dun Laognaire, Co.Dublin (“Galen Chemicals”) (2); and 
  
 GALEN HOLDINGS PLC a Company incorporated under the laws of Northern Ireland who
registered office is at Old Belfast Road, Millbrook, Larne, Co.Antrim, Northern Ireland, BT40 2SH; (“Galen Holdings”) (3); 
  
 NELAG LIMITED a Company incorporated under the laws of Northern Ireland whose registered office is at Almac House, 20 Seagoe Industrial Estate, Craigavon, Northern
Ireland, BT63 5QD (“the Purchaser”) (4). 
  
 WHEREAS:

  

	(A)	The Sellers (as defined below) have for some time carried on the marketing and sale of the Products in the UK and Ireland using the Assets. 

  

	(B)	The Sellers have agreed to sell, and the Purchaser has agreed to purchase, the Business as a going concern, and the Assets, on the terms and conditions contained in this Agreement.

  

	(C)	Galen Holdings as the ultimate parent of each of the Sellers has agreed to enter into this Agreement to provide certain warranties and covenants to the Purchaser as more
particularly set out below. 

  
 IT IS AGREED as follows:

  

	1.	DEFINITIONS AND INTERPRETATION 

  

	 	1.1.	In this Agreement the following expressions shall have the following meanings unless otherwise expressly provided or unless the context otherwise requires:-

  

			
	“Accounts Date”	  	means 30 September 2003;
		
	“Affiliate”	  	means any company which controls, is controlled by, or is under common control with, a party. A company shall be regarded as in control of another company for the purposes of this Agreement
if it owns at least fifty-one percent (51%) of the voting share capital of the other company or, in the absence of the ownership of at least fifty-one percent (51%) of the voting share capital of the company, if it

  

 4 

			
	 	  	controls the composition of its Board of Directors;
		
	“Assets”	  	means all assets owned by the Sellers identified and agreed to be sold pursuant to Clause 2.1;
		
	“Assignment”	  	means any agreement(s) assigning Contract(s) agreed between the parties;
		
	“Assumed Employees”	  	means those employees of the Sellers engaged in the Business as at Completion and set out in the list in the Agreed Form headed “Assumed Employees” at schedule 3 to this
Agreement.
		
	“Books and Records”	  	means the lists of customers and suppliers, books of account, financial records and all other records exclusively relating to the Business and Assets on whatever medium they are
stored;
		
	“Business”	  	means the business carried on by the Sellers of registering, promoting, marketing, distributing and selling the Products in the UK and Ireland and of holding the Product
Licences;
		
	“Business Contracts”	  	means all contracts and arrangements entered into prior to completion by the Sellers relating the Business as set out in the schedule 4 to this Agreement:
		
	“Business Intellectual Property”	  	means that Intellectual Property owned by either of the Sellers and used by either or both of the Sellers wholly or predominantly in the Business, including without limitation the Know-How
but excluding the Trademarks;
		
	“Completion”	  	means the completion by the parties of their obligations under Clause 4 and at the date specified in Clause 4 or at such other date as the parties may agree from time to
time;
		
	“Completion Date”	  	means the date of signature of this Agreement or such other date as the parties may agree from time to time
		
	“Confidential Information”	  	means, in relation to the obligations of the Sellers, all information relating to the Business or the Purchaser’s Group, or the financial or other affairs of either, which is of a
confidential nature and not in the public domain (including but not limited to any of the foregoing as also constitutes Know-How) and, in relation to the

  

 5 

			
	 	  	obligations of the Purchaser, all information relating to the business or financial or other affairs of the Galen Group, which is of a confidential nature and is not in the public
domain;
		
	“Contracts”	  	means all orders to supply Products in the UK or Ireland received, accepted by the Sellers, which are wholly or partly unperformed at the Completion Date;
		
	“Data Room Information”	  	means the materials and information made available for inspection by the Purchaser and its advisers at the offices of Galen, details of which are given in the Disclosure
Letter;
		
	“Disclosure Letter”	  	means the letter of today’s date from the Warrantor to the Purchaser in relation to the Warranties;
		
	“Encumbrance”	  	means any mortgage, charge, (whether fixed or floating), pledge, lien, option, right of preemption, right of retention of title or any other form of security, interest or obligation
(including conditional obligation) to create any of the same;
		
	“Galen Group”	  	means Galen Holdings, its subsidiary undertakings and any Affiliate of Galen from time to time, and any reference to “member(s) of the Galen Group” shall be construed
accordingly;
		
	“Goodwill”	  	means the Sellers’ goodwill, custom and connection associated with the Business and the exclusive right for the Purchaser to carry on the Business as successor to the Sellers after
Completion;
		
	“Governmental Authority”	  	means any court, administrative agency or commission or other governmental agency, body or instrumentality, domestic or foreign whether local, regional, national or
supranational;
		
	“Governmental Rule”	  	means any statute or other or any law, or any rule, code, ordinance, regulation, judgement, decree, injunction, writ, order, ruling, or like action of any Governmental
Authority;
		
	“Intellectual Property”	  	means any and all patents, rights in designs, trade marks or other trade or business names, or domain names, copyrights, rights in inventions, trade secrets and other confidential
information,

  

 6 

			
	 	  	rights in databases and other intellectual property rights of a similar or corresponding character which may subsist in any part of the world;
		
	 “the Irish Regulations”
	  	means the Irish European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003;
		
	 “Know-how”
	  	means all information (whether written or unwritten) and documents owned by any of the Sellers relating to the Products and/or [required for the conduct of] the Business including, but not
limited to, all such information in respect of any Product’s manufacture, delivery and use, and any product specifications, engineering and manufacturing technology, operating procedures, quality control procedures, standard manufacturing
procedures, analytical methods’ and quality control standards;
		
	 “Managers”
	  	means Ken Ross and Patricia McKee
		
	 “party”
	  	means a party to this Agreement;
		
	 “Permits”
	  	means the Product Licences and any other permit, licence, consent, approval, certificate, qualification, specification, registration and filing of a notification report or assessment
necessary in any relevant jurisdiction for the lawful and proper operation of the Business its ownership, or use of an asset as at the date of this agreement or the execution and performance of this Agreement;
		
	 “Products”
	  	means the products listed in Column 1 of Schedule 1;
		
	 “Product Licences”
	  	means the product licences listed in Column 2 of Schedule 1;
		
	 “Purchaser’s Accountants”
	  	means Ernst & Young of Bedford House, 16 Bedford Street, Belfast, BT2 7UT;
		
	 “Purchaser’s Group”
	  	means the Purchaser and its subsidiary undertakings and associated companies from time to time, all of them and each of them as the context admits;
		
	 “Purchaser’s Solicitors”
	  	means L’Estrange and Brett, Arnott House, 12-16 Bridge Street, Belfast, BT1 1LS

  

 7 

			
	 “Registration Information”
	  	means the dossiers, data, results of clinical or other trials or investigations and the like, if any, submitted by any member of the Galen Group as part of any application for the Product
Licences owned by either of the Sellers and which is in the possession of the Sellers at Completion;
		
	 “the Regulations”
	  	means the United Kingdom Regulations and the Irish Regulations;
		
	 “Related Persons”
	  	means in relation to any party its [holding companies and the subsidiary undertakings and associated companies] from time to time of such holding companies, all of them and each of them as
the context admits;
		
	 “Retained Business”
	  	means the ethical pharmaceutical sales and marketing business of Galen (UK) Limited Number NI 42003, and its subsidiaries (namely Inter-Medics Limited Number 741057, Galen Limited Number
NI30077, Madaus (UK) Limited 2821609 and Galen Rhodes Limited 2706002), Galen Healthcare Limited 3160430 Chargelink Limited 3064205 and Galen Pharmaceuticals Limited 2238884 immediately following completion of this Agreement;
		
	 “Retained Employees”
	  	means any persons employed in the Business who are not on the list of Assumed Employees in Schedule 3 to this Agreement;
		
	 “Sellers”
	  	means Galen and Galen Chemicals;
		
	 “Seller’s Accountants”
	  	means PricewaterhouseCoopers, Waterfront Plaza, 8 Laganbank Road, Belfast BT1 3LR;
		
	 “Seller’s Solicitors”
	  	means Ashurst, Broadwalk House, 5 Appold Street, London, EC2A 2HA;
		
	 “Stock”
	  	means raw materials and packaging materials in-process materials and finished goods acquired by Galen in the course of the Business as at Completion and, for the avoidance of doubt, the
parties acknowledge that the references to “Stock” in clause 10 of this Agreement shall be a reference to the Stock of the Business at Completion.
		
	 “Taxation”
	  	means any tax and any duty, impost, levy or governmental charge in the nature of tax whether domestic or foreign and any fine, penalty or interest connected therewith including (without
prejudice to the generality of the

  

 8 

			
	 	  	foregoing) corporation tax, income tax, national insurance and social security contributions, capital gains tax, inheritance tax, capital transfer tax, development land tax, value added tax,
customs, excise and import duties and any other payment in the nature of tax which the relevant party is or may be or become bound to make to any person as a result of any enactment relating to any of the foregoing;
		
	 “Third Party”
	  	means any person other than the parties and their respective Affiliates;
		
	 “Trademarks”
	  	means the registered trade marks and trade marks applications, details of which are set out in Schedule 6;
		
	“the United Kingdom Regulations”	  	means the Transfer of undertakings (Protection of Employment) Regulations 1981 (as amended);
		
	 “UK”
	  	means the United Kingdom of Great Britain and Northern Ireland, the Channel Islands and the Isle of Man;
		
	 “Warranties”
	  	means the warranties given by the Warrantor to the Purchaser set out in Schedule 7; and
		
	 “Warrantor”
	  	means Galen Holdings,;

  

	 	1.2	In this Agreement, unless otherwise expressly provided or unless the context otherwise requires :- 

  

	 	1.2.1	references to the singular include the plural and vice versa; 

  

	 	1.2.2	references to words denoting any gender shall include all genders; 

  

	 	1.2.3	references to persons include companies, partnerships, government departments and agencies and all other forms of body corporate or unincorporate (in each case whether or not having
separate legal personality and wherever resident and for whatever purpose); 

  

	 	1.2.4	references to Clauses and Schedules are to Clauses of, and Schedules to, this Agreement; 

  

	 	1.2.5	references to a statute, statutory provision or subordinate legislation (together, “legislation”) shall be construed as referring to such legislation as amended and in
force from time to time and to any legislation which re-enacts or consolidates (with or without modifications) any such legislation; 

  

 9 

	 	1.2.6	the headings and Index of this Agreement are for ease of reference only and are not part of this Agreement for the purposes of construction; 

  

	 	1.2.7	references to a Northern Irish legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall,
in respect of any jurisdiction other than Northern Ireland be deemed to include a reference to what most nearly approximates in that jurisdiction to the Northern Irish term; 

  

	 	1.2.8	any undertaking by a party not to do an act or thing shall be deemed to include an undertaking not to permit or suffer such act or thing to be done by another person;

  

	 	1.2.9	references to “include” and “including” shall be deemed to be followed by the phrase “without limitation”; 

  

	 	1.2.10 	references to a document “in the Agreed Form” is to the form agreed by the parties to this Agreement and initialled by or on behalf of them for identification;

  

	 	1.2.11 	references to the parties include their respective successors in title, permitted assigns and legal personal representatives; 

  

	 	1.2.12 	the Schedules shall form part of and be deemed to be incorporated into this Agreement; 

  

	 	1.2.13 	references to a Product Licence being “sold” shall be interpreted to include the cancellation of such Product Licence and the issuance of a new product licence in the name
of the Purchaser effectively equivalent to such Product Licence, and “sale” shall be construed accordingly; 

  

	 	1.2.14 	references to a “subsidiary” or “holding company” are to be construed in accordance with Article 4 of the Companies (Northern Ireland) Order 1986 (as amended);
and 

  

	 	1.2.15 	references to a product licences means the relevant and current marketing authorisations issued by European Agency for the Evaluation of Medicinal products (or such other regulatory
body that replaces that agency from time to time) and such other marketing authorisations and such other product licences issued by any applicable regulatory body in any jurisdiction where the manufacture and supply of that product may occur from
time to time in accordance with the terms of this Agreement including (without limitation) the Medicines and Healthcare Products Regulatory Agency and the Irish Medicines Board. 

  

	2.	SALE AND PURCHASE OF THE ASSETS 

  

	 	2.1.	 Subject to the terms and conditions of this Agreement the Sellers hereby agree to sell as beneficial owners to the Purchaser, and the Purchaser agrees 

  

 10 

	 	 
to purchase, the following assets with effect from Completion, free in all respects from any Encumbrance:- 

  

	 	2.1.1.	the Goodwill; 

  

	 	2.1.2.	the Business Intellectual Property; 

  

	 	2.1.3.	the Trademarks; 

  

	 	2.1.4.	the Books and the Records; 

  

	 	2.1.5.	the Registration Information; 

  

	 	2.1.6.	such rights as are capable of existing and being sold or transferred in the Product Licences 

  
 so that with effect from Completion the Purchaser shall have the right, in accordance with and subject to the provisions of
this Agreement, to represent itself as carrying on the Business in succession to the Sellers. 
  

	 	2.2	Without prejudice to Clause 2.1 and subject to the terms and conditions of this Agreement, the Sellers hereby agree to sell, or procure the sale, as beneficial owners to the
Purchaser, and the Purchaser agrees to purchase, with effect from Completion free in all respects from any Encumbrance the benefit (subject to the burden) of the Contracts and the Business Contracts so far as they can be assigned.

  

	3.	PURCHASE PRICE AND PAYMENT PROVISIONS 

  

	 	3.1.	The consideration for the Assets and for the covenants set out in Clause 9 shall be the sum of [£30 million] (“Purchase Price”) which shall be apportioned amongst
the Assets as set out in Schedule 2. 

  

	 	3.2.	The Purchase Price shall be paid on Completion by the Purchaser to the Sellers by way of telegraphic transfer of funds to a bank account designated by the Sellers, and in the event
of the sum being transferred to the client account of the Seller’ Solicitors, the receipt of the Sellers' Solicitors therefore shall be a good discharge to the Purchaser. 

  

	4.	COMPLETION 

  

	 	4.1	Completion of this Agreement shall take place on the Completion Date at the offices of the Buyer. 

  

	 	4.2	On Completion the Sellers shall each deliver to the Purchaser:- 

  

	 	4.2.1	the Books and Records; 

  

 11 

	 	4.2.2	all Assets hereby agreed to be sold, title to which can be transferred by delivery (and shall pass upon such delivery and shall permit the Purchaser to enter into and take
possession of the Assets); 

  

	 	4.2.3	where agreed as necessary between the parties, duly executed assignments of the Business Intellectual Property other than the Trademarks in the Agreed Form;

  

	 	4.2.4	duly executed assignments of the Trademarks in the Agreed Form; 

  

	 	4.2.5	the Registration Information; 

  

	 	4.2.6	where agreed as necessary between the parties, releases under seal or certificates of non-crystallisation of charge of any Encumbrances to which any of the Assets are subject duly
executed by those entitled to the benefit thereof; 

  

	 	4.2.7	the Contracts; 

  

	 	4.2.8	all such records (or copies if the originals have been properly retained) as are referred to in section 49 of the Value Added Tax Act 1994; 

  

	 	4.2.9	the Product Licences; 

  

	 	4.2.10 	the Business Contracts; and 

  

	 	4.2.11 	a copy of the minutes of a meeting of the directors each of the Sellers and Galen Holdings authorising the execution by that party of this Agreement and of any other documentation
that may be necessary or desirable arising out of or in connection with this Agreement or the transactions contemplated thereby and appointing the relevant signatory or signatories to sign this agreement and any such other documentation on its
behalf. 

  

	 	4.3	Upon compliance by the Sellers with the provisions of clause 4.2 the Purchaser shall; 

  

	 	4.3.1	provide for the electronic transfer of funds of the sum referred to in clause 3.2; 

  

	 	4.3.2	deliver to the Sellers counterparts of the documents referred to in Clauses 4.2.3 and 4.2.4 duly executed by the Purchaser; 

  

	5.	PRODUCT LICENCES 

  

	 	5.1	 On Completion, the Sellers will deliver to the Purchaser signed copies of such documents, if any, as are required by the applicable Governmental Authorities from
the Sellers, as holders of the Product Licences, to enable the Purchaser (or any of its Affiliates nominated by the Purchaser) to make application to the such Governmental Authorities for the grant to the Purchaser (or such Affiliate) of new product
licences in the UK and/or Ireland, as applicable, effectively equivalent to the Product Licences (“New Product Licences”) and for the cancellation of the Product Licences at the 

  

 12 

	 	 
same time. The Purchaser will submit any such applications duly completed to the relevant Governmental Authority as soon as reasonably practicable after
Completion and provide the Sellers with evidence that it has done so. 

  

	 	5.2	The Purchaser shall meet all costs and expenses reasonably and properly incurred in connection with the said applications for New Product Licences under this Clause 5 (including any
official fees to be paid to any relevant Governmental Authority). 

  

	 	5.3	Pending the grant of the Purchaser’s applications for New Product Licences pursuant to Clause 5.2, the Sellers shall hold the Product Licences on trust for and on behalf of the
Purchaser (or its nominated Affiliates) and shall, subject to all applicable Governmental Rules, each use its reasonable endeavours to deal with the Product Licences as the Purchaser may from time to time reasonably direct, provided that the
Purchaser shall, where relevant, comply with the requirements of each Product Licence. Subject to the Purchaser’s directions and pending the grant of the New Product Licences, the Sellers shall, at the Purchaser’s expense, take such
measures as are reasonable to maintain the Product Licences in force and shall do nothing which might render the Product Licences, or any of them, liable to be cancelled or revoked, provided that the Sellers shall not breach this obligation by
seeking, procuring or achieving the cancellation of any Product Licence in the proper course of effecting its sale to the Purchaser (or its applicable Affiliate). 

  

	 	5.4	The Sellers obligations to sell a Product Licence (as interpreted in accordance with Clause 1.2.13) shall include signing or procuring the signature of all necessary documents to
effect such sale. The Purchaser shall notify the Sellers in writing as soon as reasonably practicable after being made aware of the sale of any Product Licence having been concluded. 

  

	 	5.5	With respect to any Product Licence and until such time as its sale to the Purchaser is concluded, 

  

	 	5.5.1 	the Sellers and the Purchaser shall each, on becoming aware of any matter relating to the safety, efficacy or quality of the Product to which such Product Licence relates, or of any
communication, enquiry, complaint or proceeding by any Governmental Authority or trade association, as soon as practicable notify the other and the Sellers shall (subject to being reimbursed by the Purchaser their out-of-pocket expenses reasonably
and properly incurred) use their reasonable endeavours to render such assistance as may be reasonably necessary to assist in relation to any such matter including any recall, and any reply necessary in relation to any such enquiry, complaint or
proceedings; 

  

	 	5.5.2 	the Sellers shall not make, and shall use their reasonable endeavours to prevent, any material changes or alterations being made to Product Licence unless (i) required by the
relevant Governmental Authority; or (ii) agreed by the Purchaser in writing; 

  

	 	5.5.3 	 the Purchaser shall procure that all advertising, promotional and other activities (if any) conducted in connection with the Product to 

  

 13 

	 	 
which any such Produce Licence relates shall be conducted in accordance with, and shall comply with, the terms of the relevant Product Licence all applicable
Governmental Rules and such directions as the Sellers shall reasonably make. 

  

	6.	RECORDS AND REGISTRATION AND OTHER INFORMATION 

  

	 	6.1	Following Completion, the Sellers may retain a full copy of the Books and Records and of the Registration Information and, subject to Clauses 9 and 13, make such use thereof as they
choose. 

  

	 	6.2	In addition to the rights conferred by clause 6.1, following Completion, the Purchaser agrees to provide to the Sellers and Galen Holdings access to any information, documents or
records relating to the Business and Assets that the Sellers or Galen Holdings may reasonably require to enable the Sellers and/or Galen Holdings (as the case may be) to comply or assist with any governmental or regulatory investigation relating to
the Business or Assets which involves the Sellers and/or Galen Holdings. 

  

	7.	CONTRACTS 

  

	 	7.1.	The Purchaser shall fulfil the Sellers outstanding obligations under all orders for Products comprised in the Contracts. Insofar as the benefits or burden of any Contract cannot be
effectively assigned or novated to or otherwise assumed by the Purchaser except with the agreement or consent of any Third Party to it:- 

  

	 	7.1.1 	this Agreement does not constitute an assignment or an attempted assignment of any Contract if the assignment or attempted assignment would constitute a breach of such Contract;

  

	 	7.1.2 	each party shall use its reasonable endeavours to obtain the relevant agreement or consent from that Third Party as soon as reasonably practicable after Completion;

  

	 	7.1.3 	until any Contract is assigned to, novated or assumed by the Purchaser the Sellers shall, to the extent permitted by such Contract, hold that Contract on trust for the Purchaser.
The Purchaser undertakes to the Sellers that the Purchaser will perform all obligations of the Sellers thereunder as sub-contractor (or, where sub-contracting is not permissible, as agent for the Sellers) provided that the Purchaser shall indemnify
the Sellers and Galen Holdings against all costs (including, without limitation, all reasonable legal and professional fees and expenses), claims, losses, liabilities or damages that it may suffer as a result of a failure by the Purchaser to comply
with its obligations under this Clause 7; 

  

	 	7.1.4 	in consideration of the performance by the Purchaser of all obligations of the Sellers under the Contracts after Completion, the Sellers shall direct or procure that (so far as the
same are ascertainable) all payments due to either of them under such Contracts in respect of work carried out by the Purchaser after Completion shall be paid to the Purchaser; and 

  

 14 

	 	7.1.5 	the Sellers shall on behalf of the Purchaser take such action and enforce all claims arising under such Contracts against Third Parties upon receiving a written request of the
Purchaser to do so together with an indemnity from the Purchaser on terms reasonably satisfactory to the Sellers against all costs, claims or losses arising or incurred by the Sellers in respect of such actions or claims. 

 

	8.	WARRANTIES 

  

	 	8.1	The Warrantor acknowledges that the Purchaser has entered into this Agreement upon the basis and in reliance upon the Warranties and jointly and severally warrants to the Purchaser
in the terms of the Warranties and each of the Warranties shall be construed as a separate warranty. 

  

	 	8.2	Any claim under the Warranties shall be subject to the terms and provisions of schedule 8. 

  

	 	8.3	The Purchaser warrants to the Sellers and Galen Holdings that (and each such warranty shall be construed as a separate warranty): 

  

	 	8.3.1 	the execution and delivery of this agreement and the Completion of the transactions contemplated hereby, have, where required, been duly and validly authorised and no other
proceedings or action on the part of the Purchaser is necessary to authorise the agreement or to complete the transactions contemplated; and; 

  

	 	8.3.2 	it has disclosed to the Sellers and Galen Holdings all agreements, arrangements and understandings (whether verbal or in writing) between any member of the Purchaser’s Group
and any director, employee, contractor or agent of any member of the Galen Group. 

  

	9.	PROTECTION OF GOODWILL 

  

	 	9.1	In consideration of the Purchaser entering into this Agreement, the Warrantor and Galen Chemicals each hereby agree with the Purchaser that (except as otherwise agreed in writing
with the Purchaser) either of them nor any of their respective subsidiary undertakings from time to time will with any other person either directly or indirectly and either solely and jointly with any other person or through any of their respective
employees or agents (either on its own account or as the agent of any other person): 

  

	 	9.1.1 	for a period of three years from the Completion Date provide services to or be employed or otherwise carry on or be engaged or interested directly or indirectly in a business which
would compete with the Business in the United Kingdom and Ireland; 

  

	 	9.1.2 	for a period of three years from the Completion Date, solicit or canvass away from the Purchaser any person, firm or company or other organisation (which was a customer or supplier
of the Business at any time during the twelve month period prior to Completion); or 

  

 15 

	 	9.1.3 	for a period of two years from the Completion Date, solicit or entice away or endeavour to solicit or entice away from the Purchaser any senior manager, director, project manager or
sales staff (excluding support staff) and any key employee who would be treated as a “relevant employee” for the purposes of the Model Code contained in the Listing Rules, employed or retained by any of the Companies in relation to the
Business on Completion, whether or not such person would commit any breach of his contract of employment or terms of engagement by reason of his leaving the service of the Purchaser PROVIDED THAT this restriction will not apply to any advertisements
for recruitment made available generally through any recruitment agency or advertisement available to the public; 

  

	 	9.2	Nothing in clause 9.1 shall prevent or restrict any member of the Galen Group from: 

  

	 	9.2.1	 being the holder of shares (conferring up to but not exceeding fifteen per cent. of the votes which could be cast at a general meeting of that company) or fifteen percent of
the debentures of such company which is engaged in any business referred to in clause 9.1; 

  

	 	9.2.2 	acquiring the whole or any part of a business which, or the share capital of a company or group of companies whose business or a part of whose business, includes operations the
carrying on of which would otherwise amount to a breach of the undertaking contained in clause 9.1 (the “Competitive Operations”), as part of a larger acquisition or series of related acquisitions provided that the relevant member of Galen
Group shall within the following twelve months use their reasonable endeavours to sell the Competitive Operations as soon as reasonably practicable following such acquisition (which shall, without limitation, include inviting the Buyer to make a
competitive bid for the sale of the Competitive Operations) save that the relevant member of the Seller’s Group shall not be obliged to sell the Competitive Operations if the Competitive Operations comprise a minor part of the business or the
business of such company, group of companies or businesses acquired or in which the Seller’s Group has acquired an interest and for the purpose of this clause 9.2 a “minor part” of the business of such company, group of companies or
business shall be part of its overall business in which the turnover of the Competitive Operations does not exceed the lower of 10 per cent. of the gross turnover of the company, group of companies or business acquired per annum or £5 million
gross turnover per annum of the Company, group of companies or business acquired. 

  

	 	9.3	The Warrantor and Galen Chemicals each agree with the Purchaser that neither of them will at any time after Completion, whether by itself or through any other member of the Galen
Group, whether directly or indirectly, in the course of carrying on its business, claim or represent any continuing association with the Purchaser in respect of the Business for the purpose of obtaining or retaining any business or custom.

  

	 	9.4	 The Warrantor and Galen Chemicals each agree with the Purchaser that the restrictions contained in this clause 9 are considered reasonable and 

  

 16 

	 	 
necessary for the protection of value of the Business (in particular the goodwill of the Business) by the parties hereto and the Warrantor and Galen
Chemicals acknowledge that, in the light of the total price paid under this agreement and the manner of computation thereof, the nature of the Business and all other relevant matters, the provisions of this clause 9 are considered reasonably
necessary for the protection of the interests of the Purchaser, and the restrictive covenants do not go beyond what is reasonably necessary to protect the legitimate business interests of the Purchaser. 

  

	 	9.5	In the event that any restriction in this clause 9 shall be found to be unenforceable but would be enforceable if some part thereof were deleted or the area of operation or the
period of application reduced, such restriction shall apply with such modification as may be necessary to make it legal and enforceable. Without prejudice to the generality of the foregoing, if such invalidity arises by reason of the period of
restriction being excessive, such period as shall be held by a court of competent jurisdiction to be reasonable shall be able to be substituted for the period herein in order to make the restriction binding on the relevant parties.

  

	 	9.6	Each undertaking contained in this clause 9 shall be construed as a separate undertaking and if one or more of the undertakings contained in this clause 9 is held to be against the
public interest or unlawful or in any way an unreasonable restraint of trade the remaining undertakings shall continue to bind the Warrantor and Galen Chemicals and their respective subsidiary undertakings. 

  

	 	9.7	The Warrantor hereby grants to the Purchaser a perpetual, royalty-free, exclusive licence to use only on the Products and their packaging, or in distributing, selling or marketing
the Products, the name “Galen” in the same manner as it is so used immediately prior to Completion, whether alone or in combination with any other name, provided that the Purchaser shall use all reasonable endeavours to avoid its use
thereof causing any confusion between itself and the Warrantor, its Affiliates or any of the business of any of them. 

  

	 	9.8	All Products manufactured by the Purchaser under or by reference to the Galen name shall comply with the specifications and standards of quality in relation to their manufacture,
materials used, workmanship and design, packaging and storage in force at the Completion Date. 

  

	 	9.9	Product intended to be marketed under the Galen name which in the Warrantor’s reasonable opinion are not of the quality required by the Warrantor under clause 9.8 above shall
on reasonable notice being given by the Warrantor be withdrawn from production and sale by the Purchaser and they shall either be corrected or destroyed or the Galen name removed from them at the Purchasers option acting reasonably after
consultation with the Warrantor. The Warrantor may on reasonable notice inspect any such corrected Products before they are marketed. 

  

	 	9.10 	The use of the Galen name by the Purchaser shall at all times be in keeping with and seek to maintain its distinctiveness and reputation as reasonably determined by the Warrantor
and the Purchaser shall forthwith cease any use not consistent therewith as the Warrantor may reasonably require. 

  

 17 

	 	9.11 	Galen Chemicals hereby grants the Purchaser a royalty-free, exclusive, irrevocable (save as expressly provided for in this clause) and, from six months following the Completion
Date, assignable licence from the Completion Date on a fifteen-year rolling term to use the trade mark LOESTRIN, registered in the United Kingdom with number 2162513, and of all Galen Chemical’s goodwill associated therewith, to promote,
market, distribute and sell in the course of the Business those Products sold under such trade mark immediately prior to Completion as the same were promoted, marketed, distributed or sold, and as such trade mark was used, in the course of the
Business prior thereto, together with a right for the Purchaser, or its successor, to offer terms to Galen Chemicals for the exclusive right to market, promote, sell or distribute any improvement to or line-extension of any such Products in the
European Union for Galen Chemicals in advance of any other person and accepts a prohibition on Galen Chemicals from accepting from, or offering to, any other person terms to undertake such marketing, promotion, sale or distribution which are
equivalent to, or less favourable to Galen Chemicals than any so offered by the Purchaser or its successor, provided that those offered by the Purchaser or its successor are commercially reasonable, provided that: 

  

	 	(a)	whenever so used, such trade mark is accompanied by wording showing that it is the registered trade mark of Galen Chemicals used with permission other than where used following
Completion on packaging material for the Products in existence at Completion; 

  

	 	(b)	such use is in keeping with, and seeks to maintain the distinctiveness and reputation of such trade mark; 

  

	 	(c)	all goodwill generated by such use shall vest, and upon request and at Galen Chemicals’ cost shall be assigned by the Purchaser to, Galen Chemicals; 

 

	 	(d)	all such Products so distributed or sold comply in all material respects with the specifications and standards of quality in respect thereto in force at the Completion Date or
reasonably specified by Galen Chemicals thereafter; and 

  

	 	(e)	in the event that any Products so marketed, promoted, distributed or sold do not comply in all material respects with the specifications or standards referred to in (d) above, the
Purchaser shall, upon reasonable notice from Galen Chemicals, withdraw such products from promotion, marketing distribution or sale, as applicable, and either correct or destroy the same or have such trade mark removed from them and all their
packaging and product inserts: 

  
 and provided
further that this licence and the other rights and benefits of the Purchaser set out above shall be terminable by Galen Chemicals only: 
  

	 	(i)	 upon written notice to the Purchaser if the Purchaser materially breaches any of the provisions of (a) to (e) above, provided that if the material breach is capable
of remedy, such notice shall only be given if the Purchaser has not remedied the same within four weeks (or such longer period as Galen 

  

 18 

	 	 
Chemicals may agree) of having been given notice in writing specifying the breach and requiring it to be remedied; or 

  

	 	(ii)	upon the Purchaser becoming unable to pay its debts as they fall due, entering into compulsory or voluntary liquidation (other than for the purposes of effecting a reconstruction or
amalgamation in such manner that the company resulting from such reconstruction or amalgamation, if a different legal entity, shall agree to be bound by and assume the obligations of the Purchaser under this clause), compounds with or contravenes a
meeting of its creditors, has a receiver or manager or an administrator appointed of its assets or ceases for any reason to carry on business. 

  

	 	9.12	Galen Chemicals and the Purchaser shall use all reasonable endeavours to agree and enter into, as soon as reasonably practicable, a royalty-free, exclusive, assignable, and, subject
to termination for material breach or insolvency or the like, (i) irrevocable and (ii) fifteen-year rolling, licence of the trade mark LOESTRIN, registered in the United Kingdom with number 2162513, to promote, market, distribute and sell those
Products sold under such trade mark immediately prior to Completion. Such licence shall be on reasonable commercial terms having regard, inter alia, to the terms of other licences of the trade mark LOESTRIN granted by Galen Chemicals prior hereto
but also having regard to differences (if any) between the marketing, sale, promotion and distribution of products under the LOESTRIN trade mark in other territories where Galen Chemicals has granted such licences and such marketing, sales,
promotional and distribution activities by Galen Chemicals in the UK and Ireland at the date of this agreement. Such licence shall also include a right for the Purchaser, or its successor, to offer terms to Galen Chemicals for the exclusive right to
market, sell, promote and distribute any improvement or line-extension to any such Products in the European Union for Galen Chemicals in advance of any other person, and a prohibition on Galen Chemicals from accepting from, or offering to, any other
person terms to undertake such marketing, sale, promotion or distribution which are equivalent to, or less favourable to Galen Chemicals than, any so offered by the Purchaser or its successor, provided that those offered by the Purchaser or its
successor are commercially reasonable. 

  
 If a
licence to market, sell, promote and distribute Products under the LOESTRIN name is granted to the Purchaser under the terms of this clause 9.12, the licence and other benefits granted to the Purchaser under clause 9.11 above shall be revoked
immediately. 
  
 Subject to the parties’ obligations in
clause 9.12 to use all reasonable endeavours to enter into a royalty free, exclusive, assignable licence as therein provided, in the event that no licence of the type referred to in clause 9.12 is entered into by the end of the period of six months
beginning on the Completion Date, Galen Chemicals shall be entitled to revoke the Purchaser’s right pursuant to clause 9.11 to offer terms to Galen Chemicals for the exclusive right to market sell, promote or distribute any improvement or
line-extension to the Products referred to therein in advance of any other person and to be released from the prohibition on Galen Chemicals contained in that clause. 
  

 19 

	10.	PROVISIONS RELATING TO STOCK 

  

	 	10.1	Galen shall retain legal and beneficial title to the Stock exclusively subject to the provisions of this clause. The Stock shall remain the property of Galen and no title shall pass
to the Purchaser until such time as the Stock is paid for in full by the Purchaser. Unless otherwise expressly permitted by this Agreement, the Purchaser shall not perform any act or make any statement directly or indirectly inconsistent with the
exclusive title of Galen to the Stock. 

  

	 	10.2	The Stock shall be valued at cost . Galen shall comply with any reasonable requests of the Purchaser’s representatives for evidence or information to verify the cost of the
Stock. 

  

	 	10.3	The Purchaser shall have the right to remove or to use the Stock in the normal course of its business on the terms and conditions of this clause 10. Unless otherwise expressly
permitted by this Agreement, the Purchaser shall at no time remove the Stock or any part of it or allow it or any part of it be removed from its place of storage. 

  

	 	10.4	For the avoidance of doubt, neither the Sellers nor Galen Holdings shall have any liability in respect of delivery of the Stock. 

  

	 	10.5	In the event that any Stock exceeds its shelf life, the Purchaser shall immediately notify Galen and shall be obliged, if Galen wishes to destroy such stock to carry out the
destruction of such stock provided that Galen shall meet any out-of-pocket expenses reasonably and properly incurred by the Purchaser in carrying out any such requests. 

  

	 	10.6	Galen shall invoice the Purchaser on a monthly basis of all items of the Stock which the Purchaser has removed during the preceding month, such invoice to be based on information
within 30 days of the date of the invoice in a manner specified by Galen. The Purchaser shall pay for the Stock within 30 days of the date of the invoice in a manner specified by Galen. The Stock shall be invoiced to the Purchaser at the value as
per clause 10.2 plus Value Added Tax. Galen shall be entitled to charge interest on overdue accounts at the rate of 2 per cent, per annum above the base rate from time to time of Ulster Bank plc from the due date for payment until receipt by Galen
of the full amount owing. Galen may suspend the supply of Stock to the Purchaser where any amounts are overdue under any order until all such amounts are paid in full. 

  

	 	10.7	The Purchaser hereby undertakes that the Stock is used in rotation, i.e. on a “first in, first out” basis and further undertakes that the Stock shall be utilised and
purchased in preference to any stock purchased or otherwise obtained by the Purchaser agents, representatives or subcontractors either prior to or following Completion 

  

	 	10.8	The Purchaser acknowledges that no charges shall be made or shall be payable by Galen in respect of the warehousing services carried out pursuant to this clause 10.

  

 20 

	 	10.9	All expenses incurred in the storage, maintenance and administration of the Stock after purchase shall be borne by the Purchaser. Upon delivery of the Stock on purchase by the
Purchaser, the risk in those goods shall pass to the Purchaser which shall be wholly responsible thereafter for their safe custody. 

  

	 	10.10 	The Purchaser shall at all times during the term of this Agreement comply with the requirements of any appropriate regulatory authority with regard to the safe storage, handling and
use of the Stock. 

  

	 	10.11 	Neither party shall sell any Stock unless it has first granted to the other party the opportunity to purchase any such Stock at cost or the other party has given its consent in
writing. 

  

	11.	VAT 

  

	 	11.1	The purchase price of the Assets and the Business stated in this Agreement is exclusive of VAT. 

  

	 	11.2	The parties intend that the provisions of section 49 of the Value Added Tax Act 1994 and Article 5 of the Value Added Tax (Special Provisions) Order 1995 shall apply to the sale of
the Business and the Assets and, accordingly, no VAT shall be charged by the Sellers on them. The Sellers shall promptly following Completion inform their respective VAT offices of the sale and purchase under this Agreement, complete all relevant
forms for VAT purposes relating to such sale and purchase and the Sellers and the Purchaser shall take reasonable steps to ensure that the sale of the Business and Assets is treated neither as a supply of goods nor a supply of services for the
purposes of VAT but as the transfer of a going concern. In the event that it is within 3 years of the transfer determined by HM Customs and Excise or, on appeal, by the tribunal or the court that section 49 of the Value Added Tax Act 1994 and
Article 5 of the Value Added Tax (Special Provisions) Order 1995 do not apply to the sale of the Business and Assets or any part of them, the Purchaser shall pay to the Sellers as appropriate the amount of VAT in question on the later of the 5
business days before such amount is due to be paid by the Sellers to HM Customs and Excise and the day on which Galen or Galen Chemicals delivers to the Purchaser a valid VAT invoice or invoices in respect thereof. Subject to the Sellers having
complied with their obligations under this Clause 11 the Purchaser shall in addition pay any penalty and interest imposed by HM Customs and Excise in respect of late payment of such VAT. 

  
 The Seller shall not be obliged to make any appeal to any VAT Tribunal or
any Court in respect of any determination by the Customs & Excise in respect of the transfer of the Business and the Assets hereunder, unless it has been indemnified to its reasonable satisfaction by the Purchaser in respect of all reasonable
costs and expenses incurred in respect of such action. 
  

	 	11.3	 The Sellers shall at Completion, make application to HM Customs and Excise to retain all records of the Business for VAT purposes which are required to be preserved
by section 49(1)(b) of the Value Added Tax Act 1994 for such period as may be required by law, and shall, during such period upon reasonable notice, during normal business hours, make them available for 

  

 21 

	 	 
inspection to the Purchaser or its agents and allow the Purchaser to take copies. 

  

	 	11.4	The Purchaser warrants to the Sellers that it will be registered for VAT and will carry on the Business as a going concern immediately after Completion. 

  

	 	11.5	For the avoidance of doubt the Sale of Product Licences and transfer of staff from Galen Chemicals to the Purchaser will be treated as a supply under the fourth schedule to the
Value Added Tax 1972 and the fifth schedule of the Value Added Tax Act 1994 and therefore not taxed by Galen Chemicals and subject to a reverse charge by the Purchaser. 

  

	12.	EMPLOYEES 

  

	 	12.1	The Sellers, Galen Holdings and the Purchaser acknowledge and agree that the sale and purchase of the Business and Assets pursuant to this Agreement will constitute a relevant
transfer for the purposes of the Regulations and that it will not operate so as to terminate any of the contracts of employment of the Assumed Employees. 

  

	 	12.2	The Purchaser shall discharge and hereby undertakes to indemnify the Sellers and Galen Holdings against all liabilities, obligations, costs, claims, demands, actions, awards,
penalties and expenses (including without limitation, all reasonable legal and professional fees and expenses) arising directly or indirectly from or in respect of any of the Assumed Employees on or after Completion. 

  

	 	12.3	The Purchaser shall discharge and hereby undertakes to indemnify the Sellers and Galen Holdings against all liabilities, obligations, costs, claims, demands, actions, awards,
penalties and expenses (including without limitation, all reasonable legal and professional fees and expenses) arising directly or indirectly from or in respect of the Assumed Employees before Completion in respect of the following any breach of
Regulation 10(3) of the United Kingdom Regulations and Regulation 8 of the Irish Regulations by the Purchaser. 

  

	 	12.5	If the contract of employment of any Assumed Employee is found (or alleged) not to have effect after Completion as if originally made with the Purchaser the Purchaser agrees that:

  

	 	12.5.1 	in consultation with the Sellers and Galen Holdings, it will within seven days of being informed of such finding or allegation make to the relevant Assumed Employee an offer in
writing to employ him under a new contract of employment to take effect on the termination referred to below; and 

  

	 	12.5.2 	any such offer of employment made by the Purchaser will be on terms and conditions which when taken as a whole do not differ in any material way from the terms and conditions of
employment of that Assumed Employee immediately before Completion (save as to the identity of the employer). 

  

 22 

 Upon that offer being made (or at any time after the offer should have been made if no offer is made) the
Sellers will terminate the employment of the relevant Assumed Employee, and the Purchaser shall indemnify the Sellers and Galen Holdings against all liabilities, obligations, costs, claims, demands, actions, awards, penalties and expenses (including
without limitation, all reasonable legal and professional fees and expenses) arising directly or indirectly out of the employment of that Assumed Employee from Completion until such termination and the termination of such employment. 
  

	 	12.6	The Purchaser confirms that it will not be taking any measures which would give rise to an obligation on the Sellers to consult under Regulation 10 of the Regulations.

  

	13.	CONFIDENTIAL INFORMATION 

  

	 	13.1	The Parties shall not and Galen Holdings shall procure that no other member of the Galen Group or their connected persons or any officers or employee or, adviser or agent of theirs
shall use, or disclose to any person, any Confidential Information; 

  

	 	13.2	Clause 13.1 does not apply to: 

  

	 	13.2.1 	disclosure by any party of Confidential Information to or at the written request of the other parties; 

  

	 	13.2.2 	use or disclosure of Confidential Information required to be disclosed by any Governmental Rule, including by the London Stock Exchange or the UK Listing Authority or any other
regulatory body; 

  

	 	13.2.3 	disclosure of Confidential Information to professional advisers for the purpose of advising any of the parties 

  

	 	13.2.4 	disclosure of Confidential Information which is in or enters the public domain other than as a result of any breach by any party, of any duty of confidentiality owed by it to any
person; 

  

	 	13.2.5 	disclosure of Confidential Information which any party, acquires from a third party other than in breach of any duty of confidentiality; or 

  

	 	13.2.6 	use or disclosure of Confidential Information by either of the Sellers to the extent that the same concerns the Retained Business and the relevant Seller reasonably needs to use or
disclose the same for the purposes of that business. 

  

	14.	ANNOUNCEMENTS 

  

	 	14.1	No party shall disclose the making of this agreement nor its terms nor any other agreement referred to in this agreement (except those matters set out in the press release in the
Agreed Form) and each party shall procure that each of its Related Persons shall not make any such disclosure without the prior consent of the other party unless disclosure is: 

  

 23 

	 	14.1.1 	to its professional advisers; or 

  

	 	14.1.2 	required by law or the rules or standards of the London Stock Exchange or the Listing Rules or the rules and requirements of any other regulatory body. 

  
 Provided that this Clause 14.1 shall not apply to announcements,
communications or circulars made or sent by either party after completion to customers, clients or suppliers of the Business to the extent that is informs them of the Purchaser’s acquisition of the Business or to any announcement containing
only information which has become generally available other than as a result of a breach of this agreement. 
  

	 	14.2	The restrictions contained in Clause 14.1 shall apply without limit of time. 

  

	15.	ASSIGNMENT 

  
 This agreement is personal to the parties and accordingly no party without the prior written consent of the other shall assign, transfer, charge or
declare a trust of the benefit of all or any of any other party’s obligations nor any benefit arising under this agreement neither shall any party delegate any of its obligations under this agreement or subcontract their provision to any third
party or agent whatsoever except that following Completion the Purchaser may assign the benefit of all its obligations and benefits arising hereunder to any member of the Purchaser’s Group PROVIDED THAT such assignee shall remain within the
Purchaser’s Group. In the event that such assignee ceases to be a member of the Purchaser’s Group such assignment shall be voidable and the relevant party shall procure that the assignee shall assign in full any and all benefits to the
Purchaser or another member of the Purchaser’s Group. 
  

	16.	COSTS 

  
 Unless expressly otherwise provided in this agreement each of the parties shall bear its own legal, accountancy and other costs, charges and expenses
connected with the sale and purchase of the Business, the preparation and negotiation of this Agreement and any transaction contemplated hereunder. 
  

	17.	EFFECT OF COMPLETION 

  
 The terms of this agreement (insofar as not performed at Completion and subject as specifically otherwise provided in this agreement) shall continue in
force after and notwithstanding Completion. 
  

	18.	FURTHER ASSURANCES 

  
 Each of the parties shall from time to time upon request from the other do or procure the doing of all reasonable acts and/or execute or procure the
execution of all reasonable documents, in so far as each is reasonably able and in a form reasonably satisfactory to the party concerned, for the purpose of transferring to the Purchaser the Business and Assets and otherwise giving each Party the
full benefit of this agreement. 
  

 24 

	19.	ENTIRE AGREEMENT 

  

	 	19.1	Each party on behalf of itself and as agent for each of its Related Persons acknowledges and agrees with the other party (each such party acting on behalf of itself and as agent for
each of its Related Persons) that: 

  

	 	19.1.1 	this agreement together with any other documents referred to in this agreement (together the “Transaction Documents”) constitutes the entire and only agreement between the
parties and their respective Related Persons relating to the subject matter of the Transaction Documents; 

  

	 	19.1.2 	neither it nor any of its Related Persons have been induced to enter into any Transaction Document in reliance upon, nor have they been given, any warranty, representation,
statement, assurance, covenant, agreement, undertaking, indemnity or commitment of any nature whatsoever other than as are expressly set out in the Transaction Documents and, to the extent that any of them have been, it (acting on behalf of itself
and as agent on behalf of each of its Related Persons) unconditionally and irrevocably waives any claims, rights or remedies which any of them might otherwise have had in relation thereto; and 

  

	 	19.1.3 	the only remedies available to it in respect of the Transaction Documents (and, where appropriate, to its Related Persons) are damages for breach of contract and for breach of
clause 9 only, the ability to seek injunctive relief and, for the avoidance of doubt, neither it (nor its Related Persons, where appropriate) shall have any right to rescind or terminate any Transaction Documents either for breach of contract or for
negligent or innocent misrepresentation or otherwise; 

  
 PROVIDED THAT the provisions of this clause 19 shall not exclude any liability which any of the parties or, where appropriate, their Related Persons would otherwise have to any other party or, where appropriate, to any other party’s
Related Persons or any right which any of them may have to rescind this agreement in respect of any statements made fraudulently by any of them prior to the execution of this agreement or any rights which any of them may have in respect of
fraudulent concealment by any of them. 
  

	20.	VARIATIONS 

  
 This agreement may be varied only by a document signed by or on behalf of each of the parties. 
  

	21.	WAIVER 

  

	 	21.1	A waiver of any term, provision or condition of, or consent granted under, this agreement shall be effective only if given in writing and signed by the waiving or consenting party
and then only in the instance and for the purpose for which it is given. 

  

 25 

	 	21.2 	No failure or delay on the part of any party in exercising any right, power or privilege under this agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

  

	 	21.3 	No breach of any provision of this agreement shall be waived or discharged except with the express written consent of the parties. 

  

	22.	INVALIDITY 

  

	 	22.1 	If any provision of this agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction: 

  

	 	22.1.1 	the validity, legality and enforceability under the law of that jurisdiction of any other provision; and 

  

	 	22.1.2 	the validity, legality and enforceability under the law of any other jurisdiction of that or any other provision, shall not be affected or impaired in any way.

  

	23.	NOTICES 

  

	 	23.1 	Any notice, demand or other communication given or made under or in connection with the matters contemplated by this agreement shall be in writing and shall be delivered personally
or sent by fax or prepaid first class post (air mail if posted to or from a place outside the United Kingdom): 

  

			
	In the case of the Purchaser to:	  	 Almac Sciences Limited
 Almac House
 20 Seagoe Industrial Estate
 Craigavon
 Co. Armagh
 BT63 5QD
 Northern Ireland

		
	 Fax:
 Attention:
	  	 028 38350729
 Dr Allen J. McClay

		
	In the case of the Sellers and Galen Holdings to:	  	 Galen Holdings PLC
 Old Belfast Road
 Millbrook
 Larne
 Co.Antrim
 Northern Ireland
 BT40
2SH

		
	 Fax:
 Attention:
	  	 0282827448
 Company Secretary

  

 26 

 and shall be deemed to have been duly given or made as follows: 
  

	 	23.1.1 	if personally delivered, upon delivery at the address of the relevant party; 

  

	 	23.1.2 	if sent by first class post, two Business Days after the date of posting; 

  

	 	23.1.3 	if sent by air mail, five Business Days after the date of posting; and 

  

	 	23.1.4 	if sent by fax, when despatched; 

  
 provided that if, in accordance with the above provisions, any such notice, demand or other communication would otherwise be deemed to be given or made
outside 9.00 a.m. - 5.00 p.m. on a Business Day such notice, demand or other communication shall be deemed to be given or made at 9.00 a.m. on the next Business Day. 
  

	 	23.2 	A party may notify the other party to this agreement of a change to its name, relevant addressee, address or fax number for the purposes of clause 23.1 provided that such
notification shall only be effective: 

  

	 	23.2.1 	on the date specified in the notification as the date on which the change is to take place; or 

  

	 	23.2.2 	if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date falling five Business Days after notice of any such
change has been given. 

  

	24.	COUNTERPARTS 

  

	 	24.1	This agreement may be executed in any number of counterparts which together shall constitute one agreement. Any party may enter into this agreement by executing a counterpart and
this agreement shall not take effect until it has been executed by all parties. 

  

	25.	GOVERNING LAW AND JURISDICTION 

  

	 	25.1 	This agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by
and construed in accordance with Northern Irish law. 

  

	 	25.2 	Each of the parties to this agreement irrevocably agrees that the courts of Northern Ireland shall have exclusive jurisdiction to hear and decide any suit, action or proceedings,
and/or to settle any disputes, which may arise out of or in connection with this agreement (respectively, “Proceedings” and “Disputes”) and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of
Northern Ireland. 

  

	 	25.3 	 Each party irrevocably waives any objection which it might at any time have to the courts of Northern Ireland being nominated as the forum to hear and decide any
Proceedings and to settle any Disputes and agrees not to claim 

  

 27 

	 	 
that the courts of Northern Ireland are not a convenient or appropriate forum for any such Proceedings or Disputes and further irrevocably agrees that a
judgment in any Proceedings or Disputes brought in any court referred to in this clause 25 shall be conclusive and binding upon the parties and may be enforced in the courts of any other jurisdiction. 

  

	 	25.4	Without prejudice to any other permitted mode of service the parties agree that service of any claim form, notice or other document (“Documents”) for the purpose of any
Proceedings begun in Northern Ireland shall be duly served upon it if delivered personally or sent by registered post, in the case of: 

  

	 	25.4.1	each of the Sellers and Galen Holdings to their respective registered offices (marked for the attention of the Company Secretary); and 

  

	 	25.4.2	the Purchaser to the registered office of Almac Sciences Limited (marked for the attention of Dr Allen J. McClay), 

  
 or such other person and address in the United Kingdom as the Sellers or Galen Holdings shall notify the Purchaser in writing or vice versa from time to
time. 
  

	26.	THIRD PARTY RIGHTS 

  

	 	26.1	The operation of the Contracts (Rights of Third Parties Act) 1999 is hereby excluded and no rights or benefits expressly or impliedly conferred by it shall be unenforceable under
that Act against the parties to it by any other person. 

  
 IN
WITNESS whereof this agreement has been executed on the date first above written. 
  

 28 

 SCHEDULE 1 
  
 PRODUCT 
  
 UK MARKETING AUTHORISATIONS 
  

			
	 Product

	  	Marketing
Authorisation Number

	 Polyalk Tablets
	  	PL20166/0001
		
	 Polyalk Suspension
	  	PL20166/0002
		
	 Galfer-Vit Capsules
	  	PL20166/0003
		
	 Mobilan 25mg
	  	PL20166/0004
		
	 Mobilan 50mg
	  	PL20166/0005
		
	 Novaruca
 Verucasep
	  	PL20166/0006
		
	 Galulose
	  	PL20166/0007
		
	 Xuret Tablets
	  	PL20166/0008
		
	 Minocycline Tablets 50mg
 Minogal Tablets 50mg
	  	PL20166/0009
		
	 Minocycline Tablets l00mg
 Minogal Tablets l00mg
	  	PL20166/0010
		
	 Nitedri/Desmopressin Acetate Nasal Spray
	  	PL20166/0011
		
	 Amoxicillin Capsules BP 750mg
	  	PL20166/0012
		
	 Metronidazole Tablets 500mg
	  	PL20166/0013
		
	 Calcette 500mg
	  	PL20166/0015
		
	 Temazepam l0mg Tablets
	  	PL20166/0016
		
	 Temazepam 20mg Tablets
	  	PL20166/0017
		
	 Diarrest
	  	PL20166/0018
		
	 Pholcodine Linctus BP
	  	PL20166/0019
		
	 Captopril Tablets 12.5mg
	  	PL20166/0020

  

 29 

			
	 Product

	  	Marketing
Authorisation Number

	 Captopril Tablets 25mg
	  	PL20166/0021
		
	 Captopril Tablets 50mg
	  	PL20166/0022
		
	 Givitol Capsules
	  	PL20166/0026
		
	 Tenben
	  	PL20166/0027
		
	 Ketotard 200XL
 Ketozip 200XL
	  	PL20166/0028
		
	 Galenamet Tablets 200mg
	  	PL20166/0029
		
	 Galenamet Tablets 400mg
	  	PL20166/0030
		
	 Galenamet Tablets 800mg
	  	PL20166/0031
		
	 Co-Codamol Tablets 8/500
 Parake
	  	PL20166/0032
		
	 Co-Dydramol Tablets 10/500
 Galake Tablets
	  	PL20166/0033
		
	 Galenamox Capsules 250mg
	  	PL20166/0034
		
	 Cefradine Syrup 250mg/5ml
 Nicef Syrup 250mg/5ml
	  	PL20166/0038
		
	 Cefradine Capsules 250mg
 Nicef Capsules 250mg
	  	PL20166/0039
		
	 Cefradine Capsules 500mg
 Nicef Capsules 500mg
	  	PL20166/0040
		
	 Co-Codamol Tablets 30/500
 Kapake Tablets
	  	PL20166/0041
		
	 Kapake Insts 30/500
	  	PL20166/0042
		
	 Kapake Insts 60/1000
	  	PL20166/0043
		
	 Co-Codamol Capsules 30/500
 Kapake Capsules
	  	PL20166/0044
		
	 Co-Codamol Effervescent Tablets 30/500
	  	PL20166/0045
		
	 Tramadol Hydrochloride Capsules 50mg
 Tramake
	  	PL20166/0046

  

 30 

			
	 Product

	  	Marketing
Authorisation Number

	 Tramadol Hydrochloride Liquid 50mg/5ml
 Tramake Liquid
	  	PL20166/0047
		
	 Tramadol Hydrochloride Effervescent Powder 50mg
 Tramake Insts 50mg
	  	PL20166/0048
		
	 Tramadol Hydrochloride Effervescent Powder 100mg
 Tramake Insts 100mg
	  	PL20166/0049
		
	 Tramadol Hydrochloride Tablets 50mg
 Tramake Tablets 50mg
	  	PL20166/0050
		
	 Tramadol Hydrochloride Tablets 100mg
 Tramake Tablets 100mg
	  	PL20166/0051
		
	 Ursodeoxycholic Acid Tablets 150mg
 Ursogal Tablets 150mg
	  	PL20166/0056
		
	 Ursodeoxycholic Acid Capsules 250mg
 Ursogal Capsules 250mg
	  	PL20166/0057
		
	 Dynamin XL25 Capsules
 Isodur 25XL Capsules
 Isotard 25XL Capsules
	  	PL20166/0058
		
	 Dynamin XL50 Capsules
 ISIB 50XL Capsules
 Isodur 50XL Capsules
 Isotard 50XL Capsules
	  	PL20166/0059
		
	 Capsuvac Capsules
 Co-Danthrusate Capsules
	  	PL20166/0069
		
	 Angiozem 120XL
 Zemtard 120XL
	  	PL20166/0070
		
	 Angiozem 180XL
 Zemtard 180XL
	  	PL20166/0071
		
	 Angiozem 240XL
 Zemtard 240XL
	  	PL20166/0072
		
	 Angiozem 300XL
 Zemtard 300XL
	  	PL20166/0073
		
	 Cefaclor Suspension 125mg/5ml
 Keftid Suspension 125mg/5ml
	  	PL20166/0074
		
	 Cefaclor Suspension 250mg/5ml
 Keftid Suspension 250mg/5ml
	  	PL20166/0075

  

 31 

			
	 Product

	  	Marketing
Authorisation Number

	 Cefaclor Capsules 250mg
 Keftid Capsules 250mg
	  	PL20166/0076
		
	 Cefaclor Capsules 500mg
 Keftid Capsules 500mg
	  	PL20166/0077
		
	 Ipratropium Bromide Inhalation Solution
 Ipratropium Steripoules
 Tropiovent Steripoules Inhalation Solution
	  	PL20166/0078
		
	 Maxivent Steripoules 2.5mg
 Salbutamol Inhalation Solution 2.5mg
 Salbutamol Steripoules 2.5mg
	  	PL20166/0079
		
	 Maxivent Steripoules 5.0mg
 Salbutamol Inhalation Solution 5.0mg
 Salbutamol Steripoules 5.0mg
	  	PL20166/0080
		
	 Terbovent Steripoules 5.0mg
 Terbutaline Sulphate Inhalation Solution 5.0mg
 Terbutaline Sulphate Steripoules 5.0mg
	  	PL20166/0081
		
	 Saline Steripoules 2.5ml
	  	PL20166/0082
		
	 Parake
 Co-Codamol Tablets 8/500
	  	PL20166/0084
		
	 Menoring 50
	  	PL00440/0117
		
	 Amoxicillin Capsules 250mg
 Amrit Capsules 250mg
	  	PL20166/0094
		
	 Amoxicillin Capsules 500mg
 Amrit Capsules 500mg
	  	PL20166/0095
		
	 Amoxicillin Suspension 125mg/5ml
 Amrit Suspension 125mg/5ml
	  	PL20166/0096
		
	 Amoxicillin Suspension 250mg/5ml
 Amrit Suspension 250mg/5ml
	  	PL20166/0097
		
	 Ampicillin Capsules 250mg
	  	PL20166/0098
		
	 Ampicillin Capsules 500mg
	  	PL20166/0099
		
	 Ampicillin Syrup 125mg/5ml
	  	PL20166/0100
		
	 Ampicillin Syrup 250mg/5ml
	  	PL20166/0101
		
	 Amoxivex Suspension 125mg/5ml
 Amoxicillin Syrup 125mg/5ml
	  	PL20166/0102

  

 32 

			
	 Product

	  	Marketing
Authorisation Number

	 Amoxivex Suspension 250mg/5ml
 Amoxicillin Syrup 250mg/5ml
	  	PL20166/0103
		
	 Loestrin 20
	  	PL20429/0002
		
	 Loestrin 30
	  	PL20429/0003

  

 33 

 RoI Marketing Authorisations 
  

			
	 Product

	  	Marketing
Authorisation Number

	 Parake Tablets
	  	PA 185/2/1
		
	 Givitol Capsules
	  	PA 185/7/1
		
	 Verucasep
	  	PA 185/13/1
		
	 Dynese Antacid Suspension
	  	PA 185/15/1
		
	 Expulin Dry Cough Paediatric
	  	PA 185/21/1
		
	 Expulin Dry Cough
	  	PA 185/21/2
		
	 Galenamet Tablets 200mg
	  	PA 185/23/1
		
	 Galenamet Tablets 400mg
	  	PA 185/23/2
		
	 Galenamet Tablets 800mg
	  	PA 185/23/3
		
	 Kapake Tablets
	  	PA 185/25/1
		
	 Kapake Insts 30/500
	  	PA 185/25/2
		
	 Kapake Insts 60/1000
	  	PA 185/25/3
		
	 Galenamox Suspension 125mg/5ml
	  	PA 185/28/1
		
	 Galenamox Suspension 250mg/5ml
	  	PA 185/28/2
		
	 Galenamox Capsules 250mg
	  	PA 185/28/3

  

 34 

			
	 Galenamox Capsules 500mg
	  	PA 185/28/4
		
	 Minogal Tablets 50mg
	  	PA 185/29/1
		
	 Minogal Tablets l00mg
	  	PA 185/29/2
		
	 DF118 Injection
	  	PA 185/30/1
		
	 DF118 Tablets
	  	PA 185/30/2
		
	 Paramol Tablets
	  	PA 185/31/1
		
	 Tricloryl Syrup
	  	PA 185/32/1
		
	 Clinimycin Tablets 250mg
	  	PA 185/33/1
		
	 Nitedri Nasal Spray 10 micrograms/0.1ml
	  	PA 185/34/1
		
	 Tramake
 Tramadol Hydrocloride Capsules 50mg
	  	PA 185/35/1
		
	 Tramake Insts 50mg Sachets
	  	PA 185/35/2
		
	 Tramake Insts l00mg Sachets
	  	PA 185/35/3
		
	 Tramake Tablets 50mg
	  	PA 185/35/4
		
	 Tramake Tablets l00mg
	  	PA 185/35/5
		
	 Diarrest RF
	  	PA 185/36/1
		
	 Ailax Suspension
	  	PA 185/37/1
		
	 Ailax Forte Suspension
	  	PA 185/37/2

  

 35 

			
	 Keftid Capsules 250mg
	  	PA 185/38/1
		
	 Keftid Capsules 500mg
	  	PA 185/38/2
		
	 Keftid Suspension 125mg/5ml
	  	PA 185/38/3
		
	 Keftid Suspension 250mg/5ml
	  	PA 185/38/4
		
	 Menoring 50 micrograms/24 hours vaginal delivery system
	  	PA 185/41/1

  

 36 

 Marketing Authorisations for Menoring/Femring in Europe 
  

									
	 Country

	  	 Grant Date

	  	 Trade Name

	  	 MA Number

	  	 MA Holder

					
	 UK
	  	1 April 2001	  	Menoring	  	PL 0440/0117	  	Galen Limited
					
	 Austria *
	  	12 December 2002	  	Femring	  	1-24787	  	Galen Limited
					
	 Belgium *
	  	 	  	Femring	  	 	  	Galen Limited
					
	 Denmark *
	  	02 October 2002	  	Femring	  	33748	  	Galen Limited
					
	 Finland *
	  	06 June 2003	  	Femring	  	17366	  	Galen Limited
					
	 France *
	  	03 March 2003	  	Femring	  	NL 27745	  	Galen Limited
					
	 Germany *
	  	 	  	Femring	  	 	  	Galen Limited
					
	 Greece *
	  	 	  	Femring	  	 	  	Galen Limited
					
	 Iceland *
	  	31 October 2002	  	Femring	  	IS/1/02/031/01	  	Galen Limited
					
	 Ireland *
	  	10 January 2003	  	Menoring	  	PA 185/41/1	  	Galen Limited
					
	 Luxemburg *
	  	 	  	Femring	  	RVG 27895	  	Galen Limited
					
	 Netherlands *
	  	11 December 2002	  	Femring	  	02-1197	  	Galen Limited
					
	 Norway *
	  	06 November 2002	  	Femring	  	 	  	Galen Limited
					
	 Portugal *
	  	23 December 2002	  	Femring	  	N/A	  	Galen Limited
					
	 Sweden *
	  	 	  	Femring	  	 	  	Galen Limited

  

	*	Not Marked 

  

 37 

 SCHEDULE 2 
  

ASSETS AND APPORTIONMENT OF PURCHASE PRICE 
  

				
	 Asset

	  	Purchase Price

		
	 GOODWILL
	  	£	1
		
	 BUSINESS INTELLECTUAL PROPERTY
	  	£	29,999,997
		
	 AND TRADEMARKS
	  	 	 
		
	 BOOKS AND RECORDS
	  	£	1
		
	 REGISTRATION INFORMATION
	  	£	1
		
	 	  	£	30,000,000

  

 38 

 SCHEDULE 3 
  
 ASSUMED EMPLOYEES 
  
 Ken Ross 
 Simon Lawrence 
 Lorraine Blevins 
 Louise Brankin 
 Ken Sutherland 
 Jonathan Smith 
 Patricia McKee 
 James O’Connor 
 Dan Faran 
 Susan Lyons 
 Sarah Murdoch 
 Claire O’Donnell 
 Padraig Cahill 
  

 39 

 SCHEDULE 4 
  
 BUSINESS CONTRACTS 
  
 Customer/Supplier/ Distribution Agreements 
  

	1.	Supply, Distribution and Licence Agreement between Galen Limited and Sanofi-Synthelabo Limited dated 16th March 2004. 

  

	2.	Agreement for the supply of Loestrin 20 and Loestrin 30 between Galen (Chemicals) Limited and Celltech Manufacturing Services Limited (undated). 

  

	3.	Commercial Master Agreement between Galen Limited and Unither (undated) and letter from Galen Limited to Unither dated 29th June 2001. 

  

	4.	Deed of Assignment between Asbourne Pharmaceuticals Limited and Dallas Burston Healthcare Limited re: Supply Agreement with Valpharma dated 21st January 1999. 

  

	5.	Supply Agreement between Celltech Pharmaceuticals Limited and Galen Limited (undated). 

  

	6.	Manufacturing & Supply Agreement between Galen and Norton Healthcare Limited dated 1st October 1998. 

  

	7.	Manufacturing & Supply Agreement between Galen and Sterwin Medicines, a division of Sanofi Winthrop Limited dated 26th November 1998. 

  

	8.	Distribution Agreement between Galen Limited and Allphar Services Limited dated 1st January 1999. 

  

	9.	Distribution Agreement between Galen Limited and Medilink (Cypriat) Pharmaceuticals dated 14th April 1997. 

  
 Confidentiality Agreements 
  

	1.	Mutual Confidentiality Agreement between Generics (UK) Limited and Galen Pic (reference to either party includes any subsidiary/holding company or any company with common
shareholders), dated 25th September 1997. 

  

	2.	Mutual Non-Disclosure Agreement between Galen Limited and Sterwin Medicines dated 13th August 1998. 

  

	3.	Agreement for Confidential Disclosure between Liconsa Liberacion Controlada de Sustancia Activas, S.A and Galen Limited, dated 9th February 2004. 

  

 40 

	4.	Confidentiality Agreement between Ivax Pharmaceuticals UK (trading under Norton Healthcare Limited) and Galen Limited dated 8th May 2003. 

  
 Hospital Contracts (in each case the contracting party is Galen Limited) 
  

	1.	Yorkshire Consortium Contract for the Supply of Proprietary Pharmaceuticals (1st November 2003 – 31st October 2005). 

 

	2.	Welsh Health Supplies Contract for the Supply of Generic Drugs (1st July 2003 – 30th June 2005). 

  

	3.	South West Region Trust Contract for the Supply of Generic Proprietary Pharmaceuticals (1st March 2004 – 28th February 2006). 

  

	4.	South West Region Trust Contract for the Supply of Generic and Proprietary Pharmaceuticals (14th March 2004 – 28th February 2006). 

  

	5.	South London Consortium Contract for the Supply of Generic Pharmaceuticals (1st November 2003 – 30th June 2006). 

  

	6.	South East Region Contract for the Supply of Generic Pharmaceuticals (1st November 2003 – 31st October 2005). 

  

	7.	Scottish Healthcare Supplies Contract for the Supply of Oncology, Nutrition and Blood, Endocrine and Gastro-Intestinal Drugs (1st January 2004 – 31st December 2006). 

  

	8.	Oxford Region Trust Contracts for the Supply of Generic and Proprietary Pharmaceuticals (1st May 2004 – 28th February 2006). 

  

	9.	North West Pharmacy Purchasing Group Contract for the Supply of Various Drugs (1st March 2003 – 28th February 2005). 

  

	10.	Eastern Region Trust Contract for the Supply of Generic Pharmaceuticals (1st November 2002 – 28th February 2005). 

 

	11.	London Region (North) Trust Contract for the Supply of Drugs and Pharmaceuticals (1st November 2002 – 31st October 2004). 

 

	12.	North East Pharmacy Purchasing Group Contract for the Supply of Drugs and Pharmaceutical Preparations (1st July 2003 –
30th June 2005). 

  

	13.	Ministry of Defence, Procurement Agency Contract for the Supply and Delivery of Various Proprietary Medicines (1st March 2000 – 28th
February 2005). 

  

	14.	Central Services Agency Contract for the Supply and Delivery of Medicinal Products and Contraceptive Devices (1st May 2004 – 30th
April 2007). 

  

 41 

	15.	Central Contract for the Supply of Proprietary and Generic Pharmaceuticals (28th April 2000 – 31st October 2005). 

  
 Computer Contracts 
  

	1.	Customer Support Services Agreement between Hewlett Packard Limited and Galen dated 18th June 2003. 

  

	2.	Maintenance Contract with Blue Chip. 

  

	3.	Maintenance Supply Agreement between Pinnacle Computing and Galen Plc dated 30th July 2002 (CS3 Contract). 

  

	4.	Service Agreement between EOS Systems Limited and Galen (undated, but executed by Galen on 10th October 2002). 

  

	5.	Dell Services Enterprise Support Contract, dated June 2003. 

  

	6.	Software Licence Agreement with Borderware and Trend. 

  

 42 

 SCHEDULE 5  
  
 Warrantor Protections 
  

	1.	Notwithstanding anything to the contrary herein and save in the case of fraud or fraudulent concealment by the Warrantor, the Warrantor shall be under no liability in respect of any
claim under the Warranties (to the extent that claims thereunder are subject to this schedule 5) and any such claim shall be wholly barred and unenforceable unless written notice of such claim setting out full details of the relevant claim
(including the grounds on which such claim is based and the amount claimed to be payable in respect thereof) shall have been served upon the Warrantor by the Purchaser promptly after it becomes likely that a claim will be made, and in any event:

  
 by not later than 5.00 p.m. Greenwich Mean Time
on the date which is eighteen months from the Completion Date; 
  

	1.1	and the liability of the Warrantor for any claim specified in such notice shall absolutely determine and cease (unless the amount payable in respect of the relevant claim has been
agreed by the Warrantor within six months of the date of such written notice); 

  

	 	(a)	if legal proceedings have not been instituted in respect of such claim by the due service of process on the Warrantor within six months of the date of such written notice; or

  

	 	(b)	in the event that the Warrantor shall make in respect thereof a request to the Purchaser to make recovery in the circumstances referred to in paragraph 8.1(b) and paragraph 8.2 and
if legal proceedings have not been instituted by the Purchaser in respect of such claim by the due service of process on the Warrantor within six months of the date on which judgment is given by a court of competent jurisdiction in respect of such
third party proceedings as shall have been instituted by the Purchaser pursuant to such request or the date settlement is reached in such third party proceedings with the consent of the Warrantor or on which the Warrantor and the Purchaser agree
that proceedings or other action against the third party shall be abandoned. 

  
 For the purpose of this paragraph 1.2 legal proceedings shall not be deemed to have been commenced unless they shall have been properly issued and validly served upon the Warrantor. 
  

	2.	Save in the case of fraud or fraudulent concealment the Warrantor shall be under no liability in respect of any claim under the Warranties: 

  

	2.1	 where the liability of the Warrantor in respect of that claim would (but for this paragraph) have been less than £5,000 and such claims shall be disregarded
in 

  

 43 

	 	 
determining the aggregate value of claims pursuant to the provisions of paragraph 2.2; or 

  

	2.2	unless and until and only to the extent that the liability in respect of that claim (not being a claim for which liability is excluded under, paragraph 2.1 above) when aggregated
with the liability of the Warrantor in respect of all other such claims shall exceed £400,000 at which time the Warrantor shall be liable for the full amount of the claim (up to the threshold indicated in clause 3 (below)) and not merely the
excess over that sum. 

  

	3.	Save in the case of fraud or fraudulent concealment the aggregate liability of the Seller in respect of all claims under this agreement shall not in any circumstances exceed
£30 million. 

  

	4.	The Warrantor shall be under no liability in respect of any claim under the Warranties to the extent that the facts or circumstances giving rise thereto are known to the Managers at
the date hereof or are fairly disclosed or are otherwise known to the Purchaser’s Group at the date hereof. For the purposes of this clause “fairly disclosed” shall mean disclosed in the Disclosure Letter in such a manner and in such
detail as to enable the Purchaser to make a reasonably well informed assessment of the matter. 

  

	5.	No liability (whether in contract, tort or otherwise) shall attach to the Warrantor in respect of any claim under the Warranties to the extent that: 

  

	5.1	the claim or the events giving rise to the claim would not have arisen but for an act, omission or transaction following Completion of the Purchaser’s Group;

  

	5.2	No liability (whether in contract, tort or otherwise) shall attach to the Warrantor in respect of any claim under the Warranties to the extent that the claim occurs wholly or partly
out of or the amount thereof is increased as a result of: 

  

	 	(a)	any change in the accounting principles or practices of the Purchaser’s Group introduced or having effect after the date of this agreement unless the same is introduced to
bring the accounting principles and practices into line with generally accepted accounting principles and practices in the UK in relation to a business of the type of the Business; or 

  

	 	(b)	any change in law or regulation or in its interpretation or administration by the English or Northern Irish courts, by the Inland Revenue or by any other fiscal, monetary or
regulatory authority (whether or not having the force of law) or the equivalent laws, regulations or authorities in any jurisdiction in which the Business operates or in each case occurring after Completion and which affects matters occurring prior
thereto; 

  

	 	(c)	any act, omission or transaction undertaken on or before Completion at the request of, or with the approval of, the Purchaser. 

  

	5.3	the loss or damage giving rise to the claim is recoverable by the Purchaser’s Group under any policy of insurance; and 

  

 44 

	6.	In assessing any liabilities damages or other amounts recoverable by the Purchaser as a result of any claim under the Warranties there shall be taken into account any benefit
accruing to the Purchaser’s Group arising out of the same subject matter or circumstances giving rise to a claim under the Warranties including, without prejudice to the generality of the foregoing, any amount of any relief obtained or
obtainable by the Purchaser’s Group and any amount by which any Taxation for which the Purchaser’s Group is or may be liable to be assessed or accountable is actually reduced or extinguished, arising directly or indirectly in consequence
of the matter which gives rise to such claim. 

  

	7.	No liability will arise and no claim may be made under any of the Warranties to the extent that the matter giving rise to such claim is remediable unless within the period of 30
days following the Purchaser becoming aware of such matter the Purchaser shall have given written notice thereof to the Warrantor and such matter shall not have been remedied to the reasonable satisfaction of the Purchaser within the period of 30
days following the date of service of such notice. 

  

	8.1	Clause 8.2 shall apply in circumstances where, subject to the notice provisions set out in clause 1: 

  

	 	(a)	any claim is made against the Purchaser’s Group which may give rise to a claim by the Purchaser’s Group against the Warrantor under the Warranties; or

  

	 	(b)	the Purchaser’s Group is or may be entitled to make recovery from some other person any sum in respect of any facts or circumstances by reference to which the Purchaser’s
Group has or may have a claim against the Warrantor under the Warranties; or 

  

	 	(c)	the Warrantor shall have paid to the Purchaser’s Group an amount in respect of a claim under the Warranties and subsequent to the making of such payment the Purchaser’s
Group becomes or shall become entitled to recover from some other person a sum which is referable to that payment. 

  

	8.2	In the circumstances provided in clause 8.1, the Purchaser shall and shall procure that the Purchaser’s Group: 

  

	 	(a)	subject to receiving an undertaking from the Warrantor in respect of all costs reasonably and properly incurred thereby by the Purchaser’s Group promptly and diligently take
all such action as the Warrantor reasonably may request including the institution of proceedings and the instruction of professional advisers approved by the Warrantor (such approval not to be unreasonably withheld or delayed) to act on behalf of
the Purchaser to avoid, dispute, resist, compromise, defend or appeal against any such claim against the Purchaser’s Group as is referred to in paragraph 8.1 (a) or to make such recovery by the Purchaser’s Group as is referred to in
paragraph 8.1(b) or paragraph 8.1(c), as the case may be; and 

  

	 	(b)	not settle or compromise any liability or claim to which such action is referable without the prior written consent of the Warrantor which consent shall not be unreasonably withheld
or delayed; and 

  

 45 

	 	(c)	in the case of paragraph 8.1(c) only, promptly repay to the Warrantor an amount equal to the amount so recovered or, if lower, the amount paid by the Warrantor to the Purchaser,
less in each case any costs incurred by the Purchaser’s Group in so recovering or any Taxation incurred by the Purchaser’s Group on the amount received. 

  

	9.	The Purchaser shall covenant but not as condition precedent to liability on the part of the Warrantor as soon as practicable to: 

  

	9.1	inform the Seller in writing of any fact, matter, event or circumstance which comes to its notice or to the notice of the Purchaser’s Group whereby it appears that the
Warrantor are or may be liable to make any payment in respect of any claim under the Warranties or whereby it appears the Purchaser’s Group shall become or may become entitled to recover from some other person a sum which is referable to a
payment already made by the Warrantor in respect of such a claim; and 

  

	9.2	thereafter keep the Warrantor informed of all material developments in relation thereto; and 

  

	9.3	provide at the cost of the Warrantor access to all such information and documentation (no matter how it is recorded or stored) as the Warrantor shall reasonably request in
connection therewith and also in connection with any proceedings instituted by or against the Purchaser’s Group under paragraph 8.1. 

  

	10.	In the event that the Warrantor at any time after the date hereof shall wish to take out insurance against their liability hereunder, the Purchaser undertakes to provide such
information as the prospective insurer may require before effecting such insurance. 

  

	11.	The Purchaser hereby warrants and confirms that having made due and careful enquiry (which shall include due and careful enquiry of the Managers) at the date hereof, it has not
already formulated and is not aware of any claim it may have against the Warrantor under the Warranties PROVIDED THAT such confirmation shall not constitute a general waiver by the Purchaser of any rights which it may have under this agreement in
respect of any breach of Warranty arising from information subsequently in the Purchaser’s possession which may in the future form a basis of a claim under the Warranties. 

  

	12.	The Purchaser’s Group undertakes to take or procure the taking of all such steps and action as are necessary or as the Warrantor may reasonably require in order to mitigate any
claim under the Warranties and the Purchaser’s Group shall act in accordance with such request subject to the Purchaser being indemnified by the Warrantor against all reasonable costs and expenses incurred in connection therewith. Nothing in
this agreement shall or shall be deemed to relieve the Purchaser of any common law or other duty to mitigate any loss or damage incurred by it. 

  

	13.	Any amount payable by the Warrantor to the Purchaser in satisfaction of any claim under the Warranties shall be treated as a reduction by that amount of the consideration.

  

 46 

 SCHEDULE 6 
  
 DETAILS OF THE TRADEMARKS 
  

															
	 Mark

	  	Country

	  	Class

	  	Status

	  	Registration
No

	  	Registration
Date

	  	Goods

	  	Proprietor

	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 

  

 47 

			
	TRADE MARKS OF GALEN LIMITED	  	APRIL 2004

  

									
	 Mark

	 	 Country

	 	 Appln/Reg No.

	 	 Appln/Reg Date

	 	 Status

					
	 ACNIVEX
	 	UK	 	1550331	 	12.10.1993	 	Renewal Due 12.10.2010
					
	 ACNIVEX
	 	Ireland	 	205157	 	19.06.1997	 	Renewal Due 19.06.2007
					
	 AILAX
	 	UK	 	B1550330	 	12.10.1993	 	Renewal Due 12.10.2010
					
	 AILAX
	 	Ireland	 	204670	 	05.02.1997	 	Renewal Due 05.02.2007
					
	 AMINOTARD
	 	UK	 	2049671	 	23.12.1995	 	Renewal Due 23.12.2005
					
	 AMNITARD
	 	UK	 	2049676	 	23.12.1995	 	Renewal Due 23.12.2005
					
	 ASEP
	 	UK	 	1053598	 	16.10.1975	 	Renewal Due 16.10.2006
					
	 BECLOAQUA
	 	UK	 	1581102	 	03.08.1994	 	Renewal Due 03.08.2011
					
	 BRAVIT
	 	UK	 	2132920	 	14.05.1997	 	Renewal Due 14.05.2007
					
	 BRAVIT
	 	Ireland	 	205023	 	16.05.1997	 	Renewal Due 16.05.2007

  

									
	 CALCETTE
	  	 UK
	  	 2016776
	  	 07.04.1995
	  	 Renewal Due
 07.04.2005

					
	 CAPSUVAC
	  	 UK
	  	 1562261
	  	 11.02.1994
	  	 Renewal Due
 11.02.2011

					
	 CAPSUVAC
	  	 Ireland
	  	 163556
	  	 11.02.1994
	  	 Renewal Due
 11.02.2011

					
	 CATHCARE
	  	 Greece
	  	 131425
	  	 29.11.1996
	  	 Renewal Due
 29.11.2006

					
	 CEFGAL
	  	 UK
	  	 2101616
	  	 30.05.1996
	  	 Renewal Due
 30.05.2006

  

									
	 DIAREST
	  	UK	  	871044	  	30.10.1964	  	Renewal Due
30.10.2009
					
	 DIAREST
	  	Ireland	  	102535	  	08.08.1979	  	Renewal Due
08.08.2010
					
	 DICLODORM XL
 (Series of 2)
	  	UK	  	2253624	  	22.11.2000	  	Renewal Due
22.11.2010
					
	 DICLODORM XL
 (Series of 2)
	  	Ireland	  	219589	  	22.11.2000	  	Renewal Due
22.11.2010
					
	 DICLOTARD
	  	UK	  	1582474	  	22.08.1994	  	Renewal Due
22.08.2011
					
	 DICLOTARD
	  	Ireland	  	217437	  	24.03.2000	  	Renewal Due
24.03.2010
					
	 DI-NITROTARD
	  	UK	  	2049961	  	29.12.1995	  	Renewal Due
29.12.2005
					
	 DYNESE
	  	UK	  	1186502	  	03.12.1982	  	Renewal Due
03.12.2013
					
	 DYNESE
	  	Ireland	  	122818	  	06.02.1987	  	Renewal Due
06.02.2008

  

									
	 EXPUVENT
	  	UK	  	1221537	  	26.06.1984	  	Renewal Due
26.06.2005
					
	 EXPUVENT
	  	Ireland	  	205314	  	19.06.1997	  	Renewal Due
19.06.2007
					
	 FEMRING
	  	UK	  	2235754	  	13.06.2000	  	Renewal Due
30.06.2010
					
	 FEMRING
	  	Ireland	  	223641	  	13.06.2000	  	Renewal Due
16.06.2010
					
	 FEMORING
	  	UK	  	2227331	  	28.03.2000	  	Renewal Due
28.03.2010
					
	 FEMORING
	  	Ireland	  	222917	  	29.03.2000	  	Renewal Due
29.03.2010
					
	 GALAKE
	  	UK	  	1311736	  	02.06.1987	  	Renewal Due
02.06.2008
					
	 GALCLOR
	  	UK	  	2135607	  	12.06.1997	  	Renewal Due
12.06.2007
					
	 GALCLOR
	  	Ireland	  	206437	  	12.06.1997	  	Renewal Due
12.06.2007

  

									
	 GALENAMET
	  	UK	  	1494233	  	14.03.1992	  	Renewal Due
14.03.2009
					
	 GALENAMET
	  	Ireland	  	150460	  	07.08.1992	  	Renewal Due
14.03.2009
					
	 GALENAMOX
	  	UK	  	1456746	  	20.02.1991	  	Renewal Due
20.02.2008
					
	 GALENAMOX
	  	Ireland	  	168934	  	07.11.1995	  	Lapsed from CPA
records 07.11.2007
					
	 GALENPHOL
	  	UK	  	1262547	  	14.03.1986	  	Renewal Due
14.03.2007
					
	 GALENPHOL
	  	Ireland	  	149716	  	04.09.1992	  	Renewal Due
04.09.2009

  

									
	 GALFLEX
	  	UK	  	2135610	  	12.06.1997	  	Renewal Due
12.06.2007
					
	 GALFLEX
	  	Ireland	  	204757	  	12.06.1997	  	Renewal Due
12.06.2007
					
	 GALFLOXIN
	  	UK	  	1494099	  	13.03.1992	  	Renewal Due
13.03.2009
					
	 GALFLOXIN
	  	Ireland	  	147704	  	13.03.1992	  	Renewal Due
13.03.2009
					
	 GALGINATE
	  	UK	  	1293716	  	26.11.1986	  	Renewal Due
26.11.2007
					
	 GALGINATE
	  	Ireland	  	204759	  	19.06.1997	  	Renewal Due
19.06.2007
					
	 GALMAG
	  	UK	  	1293717	  	26.11.1986	  	Renewal Due
26.11.2007
					
	 GALMAG
	  	Ireland	  	206277	  	19.06.1997	  	Renewal Due
19.06.2007

  

									
	 GALULOSE
	  	UK	  	1334318	  	05.02.1988	  	Renewal Due
05.02.2005
					
	 GALULOSE
	  	Ireland	  	205168	  	19.06.1997	  	Renewal Due
19.06.2007
					
	 GERIFIT
	  	UK	  	1001503	  	10.11.1972	  	Renewal Due
10.11.2007
					
	 GERIFIT
	  	Ireland	  	208868	  	16.05.1997	  	Renewal Due
16.05.2007
					
	 GIVITOL
	  	UK	  	1118522	  	01.08.1997	  	Renewal Due
01.08.2010
					
	 GIVITOL
	  	Ireland	  	94458	  	07.08.1979	  	Renewal Due
07.08.2010
					
	 HALFPROPATARD
	  	UK	  	2063395	  	23.03.1996	  	Renewal Due
23.03.2006

  

									
	 IBUTARD
	  	UK	  	1582478	  	22.08.1994	  	 Renewal Due
 22.08.2011

					
	 INDOTARD
	  	UK	  	1582473	  	22.08.1994	  	 Renewal Due
 22.08.2011

					
	 INSTS
	  	UK	  	1515531	  	10.10.1992	  	 Renewal Due
 10.10.2009

					
	 INSTS
	  	Ireland	  	150472	  	14.10.1992	  	 Renewal Due
 14.10.2009

					
	 INSTS
	  	USA	  	2420386	  	16.01.2001	  	 Renewal Due
 16.01.2011
 Affidavit
 2006/7

					
	 ISODUR
	  	UK	  	2019102	  	29.04.1995	  	 Renewal Due
 29.04.2005

					
	 ISODUR
	  	Ireland	  	217767	  	24.03.2000	  	 Renewal Due
 24.03.2010

  

									
	 KAPAKE
	  	UK	  	1510288	  	19.08.1992	  	Renewal Due
19.08.2009
					
	 KAPAKE
	  	Ireland	  	147703	  	19.08.1992	  	Renewal Due
19.08.2009
					
	 KEFTID
	  	UK	  	2116787	  	26.11.1996	  	Renewal Due
26.11.2006
					
	 KEFTID
	  	Ireland	  	203910	  	05.02.1997	  	Renewal Due
05.02.2007
					
	 KETOPROTARD
	  	UK	  	2049666	  	23.12.1995	  	Renewal Due
23.12.2005
					
	 KETOTARD
	  	UK	  	1304356	  	18.03.1987	  	Renewal Due
18.03.2008
					
	 LACTASEP
	  	UK	  	1103311	  	21.10.1978	  	Renewal Due
21.10.2009
					
	 LOBETAZIDE
	  	UK	  	2038630	  	27.03.1996	  	Renewal Due
27.09.2005

  

									
	 LOBETAZIDE
	  	Ireland	  	174700	  	27.09.1995	  	Renewal Due
27.09.2012
					
	 MENORING
	  	UK	  	2144479	  	10.09.1997	  	Renewal Due
10.09.2007
					
	 MENORING
	  	Ireland	  	205295	  	10.09.1997	  	Renewal Due
10.09.2007
					
	 MESALATARD
	  	UK	  	2002898	  	19.11.1994	  	Renewal Due
19.11.2004
					
	 MINOGAL
	  	UK	  	1537000	  	27.05.1993	  	Renewal Due
27.05.2010

  

									
	 MINOGAL
	  	Ireland	  	155514	  	28.05.1993	  	Renewal Due
28.05.2010
					
	 NICEF
	  	UK	  	2109041	  	03.09.1996	  	Renewal Due
03.09.2006
					
	 NICEF
	  	Ireland	  	202447	  	04.09.1996	  	Renewal Due
04.09.2006
					
	 NIFEDOTARD
	  	UK	  	1582475	  	22.08.1994	  	Renewal Due
22.08.2011
					
	 NITEDRI
	  	UK	  	B15527442	  	02.11.1993	  	Renewal Due
02.11.2010
					
	 NITEDRI
	  	Ireland	  	160039	  	02.11.1993	  	Renewal Due
02.11.2010
					
	 PARAKE
	  	UK	  	912930	  	05.08.1967	  	Renewal Due
05.08.2012
					
	 PARAKE
	  	Ireland	  	85594	  	14.08.1974	  	Renewal Due
14.08.2009
					
	 P.C.G.
 PHARMA/P.C.G.Pharma
	  	UK	  	2192182	  	18.03.1999	  	Renewal Due
18.03.2009

  

									
	 POLYALK
	  	UK	  	2132921	  	14.05.1997	  	Renewal Due
14.05.2007
					
	 POLYALK
	  	Ireland	  	205278	  	15.05.1997	  	Renewal Due
15.05.2007
					
	 PROPATARD
	  	UK	  	2002214	  	19.11.1994	  	Renewal Due
19.11.2004
					
	 RESURA
	  	UK	  	2235772	  	13.06.2000	  	Renewal Due
13.06.2010
					
	 RESURA
	  	Ireland	  	218256	  	13.06.2000	  	Renewal Due
13.06.2010
					
	 SALBUTARD
	  	UK	  	2002219	  	19.11.1994	  	Renewal Due
19.11.2004

  

									
	 STERIBUT
	  	UK	  	2228228	  	04.04.2000	  	Renewal Due
04.04.2010
					
	 STERITROP
	  	UK	  	2228227	  	04.04.2000	  	Renewal Due
04.04.2010
					
	 STERITROP
	  	Ireland	  	218531	  	05.04.2000	  	Renewal Due
05.04.2010
					
	 SUREM
	  	UK	  	2132900	  	14.05.1997	  	Renewal Due
14.05.2007
					
	 SUREM
	  	Ireland	  	205184	  	16.05.1997	  	Renewal Due
16.05.2007
					
	 TECHNIGAL LOGO
	  	Ireland	  	200812	  	01.07.1996	  	Renewal Due
01.07.2006
					
	 TENBEN
	  	UK	  	2108077	  	17.08.1996	  	Renewal Due
17.08.2006
					
	 TOTOLIN
	  	UK	  	2132895	  	14.05.1997	  	Renewal Due
14.05.2007
					
	 TRAMAKE
	  	UK	  	2044215	  	10.11.1995	  	Renewal Due
10.11.2005

  

									
	 TRAMAKE
	  	Ireland	  	172653	  	10.11.1995	  	Lapsed from CPA records
10.11.2002
					
	 TRAMATARD
	  	UK	  	2052550	  	20.01.1996	  	Renewal Due
20.01.2006
					
	 URSOGAL
	  	UK	  	2101615	  	30.05.1996	  	Renewal Due
30.05.2006
					
	 URSOGAL
	  	Ireland	  	202840	  	30.10.1996	  	Renewal Due
30.10.2006
					
	 VERAPATARD
	  	UK	  	1582479	  	22.08.1994	  	Renewal Due
22.08.2011
					
	 VERUCASEP
	  	UK	  	B1103312	  	21.10.1978	  	Renewal Due
21.10.2009
					
	 XURET
	  	UK	  	1329559	  	12.12.1987	  	Renewal Due
12.12.2004
					
	 XURET
	  	Ireland	  	127455	  	09.08.1988	  	Renewal Due
09.08.2009
					
	 ZEMTARD
	  	UK	  	2002211	  	19.11.1994	  	Renewal Due
19.11.2004
					
	 ZEMTARD
	  	Ireland	  	217765	  	24.03.2000	  	Renewal Due
24.03.2010

  

 SCHEDULE 7 
  
 THE WARRANTIES 
  
 Where any Warranty is made or given “so far as the Warrantor are aware” or “to the best of the Warrantor’s knowledge” such Warranty shall be
deemed to have been given to the best of the knowledge, information and belief of the Warrantor after making due and careful enquiries of Geoffrey Elliott, Robert Whiteford, John King, and Ken Ross, and in relation only to matters of regulatory
licensing of the Business, Patricia McKee 
  
 In this schedule 3 the following
words have the following meanings, unless the context otherwise requires: 
  
 “Material Adverse Effect” means a material and adverse effect on the business, assets or condition (financial or otherwise) of the Business excluding any adverse effects out of or resulting from changes in the
general economy or the reaction of employees, suppliers or customers to the Sellers entering into this agreement or the Purchaser acquiring the Business; 
  

	1.	ASSETS 

  

	1.1	Title 

  
 There are no Encumbrances, nor has the Warrantor or the Sellers agreed to create any Encumbrances, over any of the Assets and each of the Assets (other than assets sold in the ordinary course of business or in
relation to any software which is licensed for use in the Business): 
  

	 	1.1.1	 is legally and beneficially owned by the Sellers; and: 

  

	 	1.1.2	 where capable of possession, in the possession of the Sellers. 

  

	2.	EFFECT OF SALE 

  

	2.1	Neither the execution nor performance of this agreement or any Transaction Document to be executed at or before Completion will so far as the Warrantor is aware:

  

	 	2.1.1 	conflict with or result in a material breach of the terms, provisions or conditions of any contracts or agreements, to which the Business is a party or any undertaking, judgment,
order, injunction or decree of any court; or 

  

	 	2.1.2	 make the Business liable to transfer or purchase any material assets, (including but not limited to shares held by it in other bodies corporate) under its or the Sellers'
articles of association or any agreement or arrangement; or 

  

	 	2.1.3 	entitle any person to terminate any material contractual obligation; or 

  

	 	2.1.4	be likely to result in any significant customer of or supplier to the Business ceasing to deal or substantially reducing the existing level of its dealings with the Business and the
Warrantor is not aware of any intention on the part of any such customer or supplier to cease so to deal or so to reduce the existing level of such dealings. 

  

	3.	PERMITS 

  

	3.1	The Company has obtained all material Permits for carrying on the Business lawfully in the places and in the manner in which such business is now carried on by the Company.

  

	3.2	All such Permits referred to in paragraph 3.1 above are valid and subsisting and so far as the Warrantor is aware there is no reason why such Permits should be suspended cancelled
or revoked, or validly transferred to the Purchaser without undue delay in connection with the transactions contemplated by this agreement. 

  

	4.	LITIGATION 

  

	4.1	Litigation 

  

	 	4.1.1 	Save with respect to collection of debts in the ordinary course of business, neither the Warrantor nor the Sellers during the two years ending on the date of this agreement have
been involved in any civil, criminal, arbitration, administrative or other proceeding in any jurisdiction which is material to the Business. So far as the Warrantor is aware as at the date hereof, no civil, criminal, arbitration, administrative or
other proceeding in any jurisdiction is pending or threatened by or against the Warrantor or the Sellers which is material to the Business. 

  

	 	4.1.2 	There is no outstanding judgment, arbitral award or decision of a court, tribunal, arbitrator or governmental agency in any jurisdiction against the Warrantor or the Sellers in
relation to the Business and neither the Warrantor nor the Sellers have given any undertaking to any court or to any third party arising out of any legal proceedings. 

  

	 	4.1.3 	Neither the Warrantor nor the Sellers have been notified of any injunction or order for specific performance against the Business. 

  

 49 

	4.2	Investigations 

  
 So far as the Warrantor is aware and save as disclosed in the Disclosure Letter, the Business is not and has not been subject to any investigation,
enquiry or disciplinary proceeding (whether judicial, quasi-judicial or otherwise) which is material to the operation of the Business. The Business has not received any request for information from, any court or governmental authority (including any
national competition authority and the Commission of the European Communities and the EFTA Surveillance Authority) under any anti-trust or similar legislation in any jurisdiction. So far as the Warrantor is aware no matter exists which might give
rise to such an investigation, enquiry, proceeding or request for information. 
  

	5.	WARRANTOR’S CAPACITY 

  

	5.1	Authorisations 

  
 The Warrantor and the Sellers have each obtained all corporate authorisations and all other applicable governmental, statutory, regulatory or other
consents, licences, waivers or exemptions required to empower them to enter into and to perform their respective obligations under this agreement and the Transaction Documents. 
  

	5.2	Binding Obligation 

  
 Each of this agreement and the Transaction Documents has been duly executed and delivered by the Warrantor and the Sellers, and assuming the due execution
and delivery by the other parties hereto and thereto, constitutes the legal, valid and binding obligation of the Warrantor and the Sellers enforceable against the Warrantor and the Sellers in accordance with its terms; 
  
 6. CHANGES SINCE THE ACCOUNTS DATE 
  

	6.1	General 

  
 Since the Accounts Date: 
  

	 	6.1.1 	the Sellers have carried on the Business in the ordinary and usual course and so as to maintain the business as a going concern; 

  

	 	6.1.2 	there has been no material adverse change in the financial position of the Business carried on by the Sellers and such Business has been carried on in the ordinary and usual course
and neither the Warrantor nor the Sellers have disposed of any material assets used in connection with the Business other than in the ordinary and usual course of business; and 

  

	 	6.1.3 	so far as the Warrantor is aware, no substantial customer or supplier of the Business has ceased purchasing from or supplying to the Sellers in connection with the Business and so
far as the Warrantor is aware there are no facts which are likely to give rise to such an effect. 

  

 50 

	7.	INSOLVENCY 

  

	7.1	Winding up 

  
 No order has been made, petition presented or resolution passed for the winding up of the Warrantor or the Sellers or for the appointment of a provisional
liquidator or liquidator the Warrantor or the Sellers. 
  

	7.2	Administration 

  
 No administration or examinership order has been made and no petition for an administration or examinership order has been presented in respect of the
Warrantor or the Sellers. 
  

	7.3	Receivership 

  
 No receiver, receiver and manager or administrative receiver or examiner has been appointed of the whole or part of the Business. 
  

	7.4	Compromises with creditors 

  
 No voluntary arrangement under Article 14 of the Insolvency (Northern Ireland) Order 1989 has been proposed or approved in respect of the Warrantor or the
Sellers. 
  
 No compromise or arrangement under Article 418 of
the Companies (Northern Ireland) Order 1986 has been proposed, agreed to or sanctioned in respect of any of the Warrantor or the Sellers. 
  
 Neither the Warrantor nor the Sellers have entered into any compromise or arrangement with their creditors or any class of their creditors generally.

  

	8.	OFFICERS AND EMPLOYEES 

  

	8.1	Remuneration and benefits 

  
 The particulars annexed to the Disclosure Letter are true and complete in all material respects and show all remuneration and other contractual benefits:

  

	 	8.1.1	actually provided; and 

  

	 	8.1.2	which the Sellers are bound to provide (whether now or in the future) to each of the Assumed Employees. 

  

	8.2	Terms and condition 

  
 There are no terms and conditions in any contract with any of the Assumed Employees pursuant to which such person will be entitled to receive any payment
or benefit for which either of the Sellers would be liable as a direct consequence of the transaction contemplated by this agreement. 
  

 51 

	8.3	Loans 

  
 There are no amounts owing or agreed to be loaned or advanced by either of the Sellers to any of the Assumed Employees (other than amounts representing
remuneration accrued due for the current pay period, accrued holiday pay for the current holiday year or for reimbursement of expenses). 
  

	8.4	Payment up to Completion 

  
 All salaries and wages and other contractual benefits of all of the Assumed Employees have, to the extent due, been paid or discharged in full as at or
with effect from Completion. 
  

	8.5	Industrial Dispute 

  
 Save as in the Disclosure Letter since the Accounts Date neither of the Sellers have been engaged or involved in any dispute with any of the Assumed
Employees, and no industrial action involving such employees, official or unofficial, exists at the date hereof which could reasonably be expected to have a Material Adverse Effect. 
  

	8.6	Liabilities and Payments 

  
 Save to the extent (if any) to which provision or allowance has been made in the Accounts: 
  

	 	8.6.1 	no liability (which remains outstanding at the date hereof) has been actually incurred by the Sellers for breach of any contract of employment or for services or for severance
payments or redundancy payments or for compensation for unfair dismissal or for failure to comply with any order for the reinstatement or re-engagement of any of the Assured Employees or for sex, religious, disability or race discrimination or for
any other liability accruing from the termination or variation of any contract of employment in respect of any of the Assumed Employees; and 

  

	 	8.6.2 	no gratuitous payment has been promised by either of the Sellers (which remains unpaid) in connection with the actual or proposed termination of any contract of employment of any of
the Assumed Employees. 

  

	9.	INSURANCE 

  

	9.1	All the Assets of the Business which are of an insurable nature are insured with a well established and reputable insurer against fire and all other risks normally insured against
by companies carrying on a business similar to the Business. 

  

	9.2	All premiums due on policies of insurance relating to the Business have been duly paid and all such policies are to the best of the knowledge of the Warrantor valid and in force.
There is no material claim outstanding under any such policies. 

  

 52 

	10.	BUSINESS CONTRACTS 

  
 For the purposes of this paragraph 10, reference to “material contracts” shall mean Contracts in relation to which the
revenues generated are material to the Business. 
  

	10.1	Nature of the Business Contracts 

  
 Neither the Warrantor nor the Sellers are a party to any material contract or agreement or transaction which: 
  

	 	10.1.1 	was entered into otherwise than in the ordinary and usual course of the Business; 

  

	 	10.1.2 	is of an unusual or abnormal nature; or 

  

	 	10.1.3 	is not on an arm’s length basis. 

  

	10.2	Performance of Business Contracts 

  

	 	10.2.1 	All material contracts in respect of the Business have been disclosed and the terms of all contracts of the Business have been complied with by the Sellers in all material respects
and there are no circumstances likely to give rise to a default by the Business under any such material contracts. 

  

	 	10.2.2 	The Business has received no written notice of claims of material amounts which are outstanding against the Business from customers or other parties in respect of defects in quality
or delays in delivery or completion of Contracts or deficiencies of performance of otherwise relating to liability for services supplied by the Business and so far as the Warrantor is aware no such claims are threatened or pending and so far as the
Warrantor is aware there is no matter or fact in existence in relation to services currently supplied by the Business which are likely to give rise to the same. 

  

	 	10.2.3 	Neither the Warrantor nor the Sellers have received written notice of any intention to terminate, repudiate or disclaim any material agreement or transaction to which the Company is
a party. 

  

	11.	LEGISLATION 

  
 Neither the Warrantor nor the Sellers have received notice that they are in material breach of any legislation applicable to the Business. 
  

	12.	INTELLECTUAL PROPERTY 

  

	12.1	General 

  
 The Disclosure Letter contains details of all registered Intellectual Property used by the Sellers in the Business. So far as the Warrantor is aware all
such Intellectual Property is free from Encumbrances. 
  

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	12.2	Renewals/Maintenance 

  
 All due registration and renewal fees have been paid in relation to the Business Intellectual Property and the Trademarks and, so far as the Warrantor is
aware there is no reason why such registrations should be revoked or declared invalid. 
  

	12.3	Licences 

  

	 	12.3.1 	Details of all written licences which have been granted by the Warrantor or the Sellers relating to the Business Intellectual Property or the Trademarks which are material to the
Business are set out in the Disclosure Letter. The Warrantor is not aware of any material breach of such licences. 

  

	 	12.3.2 	Details of all licences granted to the Business or relating to the Intellectual Property used in the Business are set out in the Disclosure Letter. The Warrantor is not aware of any
material breach nor of any fact or matter which, so far as the Warrantor is aware, would or may create a material breach of such licences. 

  

	12.4	Infringement 

  

	 	12.4.1 	The use of any Intellectual Property used in the Business so far as the Warrantor are aware does not and is not likely to infringe the Intellectual Property of any other person.

  

	 	12.4.2 	So far as the Warrantor is aware, no third party is infringing or misusing, or threatening to infringe or misuse, the Business Intellectual Property or the Trademarks.

  

	12.5	Confidential agreements 

  
 So far as the Warrantor is aware none of the operations of the Business involve the unauthorised use of confidential information disclosed in
circumstances which might entitle a third party to make a claim against the operator of the Business. 
  

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	Signed by	  	Illegible
	For and on behalf of	  
	GALEN LIMITED	  
	In the presence of:	  
	Illegible	  
	Solicitor	  
		
	Signed by	  	Illegible
	For and on behalf of	  
	GALEN CHEMICALS LIMITED	  
	In the presence of:	  
	Illegible	  
	Solicitor	  
		
	Signed by	  	Illegible
	For and on behalf of	  
	NELAG LIMITED	  
	In the presence of:	  
	Illegible	  
	Solicitor	  
		
	Signed by	  	Illegible
	For and on behalf of	  
	GALEN HOLDINGS PLC	  
	In the presence of:	  
	Illegible	  
	Solicitor	  

  

 55

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