Document:

Exhibit 10.2

 

UNITED STATES OF AMERICA

BEFORE FEDERAL TRADE COMMISSION

 

	
  COMMISSIONERS:

  	
  Timothy J. Muris, Chairman

  
	
   

  	
  Mozelle W. Thompson

  
	
   

  	
  Orson Swindle

  
	
   

  	
  Thomas B. Leary

  
	
   

  	
  Pamela Jones Harbour

  

 

 

	
   

  	
  )

  	
   

  
	
  In the
  Matter of

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  CEPHALON, INC,

  	
   

  	
  )

  	
   

  
	
    a
  corporation;

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
   

  
	
  And

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
  Docket No.

  
	
  CIMA LABS INC.,

  	
   

  	
  )

  	
  DECISION AND ORDER

  
	
    a
  corporation.

  	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  

 

The Federal Trade Commission (“Commission”)
having initiated an investigation of the proposed merger of Respondent
Cephalon, Inc. (“Cephalon”) and Respondent CIMA LABS INC. (“CIMA”), hereinafter
referred to as “Respondents,” and Respondents having been furnished thereafter
with a copy of a draft of Complaint that the Bureau of Competition proposed to
present to the Commission for its consideration and which, if issued by the
Commission, would charge Respondents with violations of Section 7 of the
Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal
Trade Commission Act, as amended, 15 U.S.C. § 45; and

 

Respondents, their attorneys, and counsel for
the Commission having thereafter executed an Agreement Containing Consent Order
(“Consent Agreement”), containing an admission by Respondents of all the
jurisdictional facts set forth in the aforesaid draft of Complaint, a statement
that the signing of said Consent Agreement is for settlement purposes only and
does not constitute an admission by Respondents that the law has been violated
as alleged in such Complaint, or that the facts as alleged in such Complaint,
other than jurisdictional facts, are true, and waivers and other provisions as
required by the Commission’s Rules; and

 

The Commission having thereafter considered
the matter and having determined that it had reason to believe that Respondents
have violated the said Acts, and that a Complaint should issue stating its
charges in that respect, and having accepted the executed Consent Agreement

 

 

and placed such Consent Agreement on the
public record for a period of thirty (30) days for the receipt and
consideration of public comments, now in further conformity with the procedure
described in Commission Rule 2.34, 16 C.F.R. § 2.34, the Commission hereby
makes the following jurisdictional findings and issues the following Decision
and Order (“Order”):

 

1.             Respondent
Cephalon is a corporation organized, existing and doing business under and by
virtue of the laws of the State of Delaware, with its offices and principal
place of business located at 145 Brandywine Parkway, West Chester, Pennsylvania
19380.

 

2.             Respondent
CIMA is a corporation organized, existing and doing business under and by
virtue of the laws of the State of Delaware, with its offices and principal
place of business located at 10000 Valley View Road, Eden Prairie, Minnesota
55344.

 

3.             The
Federal Trade Commission has jurisdiction over the subject matter of this
proceeding and of Respondents, and the proceeding is in the public interest.

 

ORDER

 

IT IS ORDERED that,
as used in this Order, the following definitions shall apply:

 

A.                 “Cephalon” means
Cephalon, Inc., its directors, officers, employees, agents, representatives,
predecessors, successors, and assigns; its joint ventures, subsidiaries,
divisions, groups and affiliates controlled by Cephalon, Inc. (including, but
not limited to, MergerCo), and the respective directors, officers, employees,
agents, representatives, successors, and assigns of each.  After the Effective Date, the term “Cephalon”
shall include CIMA.

 

B.                   “CIMA” means
CIMA LABS INC., its directors, officers, employees, agents, representatives,
predecessors, successors, and assigns; its joint ventures, subsidiaries,
divisions, groups and affiliates controlled by CIMA LABS, INC., and the
respective directors, officers, employees, agents, representatives, successors,
and assigns of each.

 

C.                   “Respondents”
means Cephalon and CIMA, individually and collectively.

 

D.                  “Commission”
means the Federal Trade Commission.

 

E.                    “Barr” means
Barr Laboratories, Inc., a corporation organized, existing, and doing business
under and by virtue of the laws of the State of Delaware, having its principal
place of business located at Two Quaker Road, P.O. Box 2900, Pomona, New York
10970.

 

F.                    “Acquisition”
means the acquisition contemplated by the “Agreement and Plan of Merger” dated
as of November 3, 2003, by and among Cephalon, CIMA and MergerCo (“Acquisition
Agreement”), whereby Cephalon agreed to acquire CIMA.

 

2

 

 

 

G.                   “Agency(ies)”
means any governmental regulatory authority or authorities in the world
responsible for granting approval(s), clearance(s), qualification(s),
license(s) or permit(s) for any aspect of the research, Development,
manufacture, marketing, distribution or sale of 
Oral Opioid Fentanyl.  The term
“Agency” includes, but is not limited to, the United States Food and Drug
Administration (“FDA”) and the United States Drug Enforcement Administration
(“DEA”).

 

H.                  “Application”,
“New Drug Application” (“NDA”), “Abbreviated New Drug Application” (“ANDA”),
“Supplemental New Drug Application” (“SNDA”), or “Marketing Authorization
Application” (“MAA”) mean the applications for a Product filed or to be filed
with the FDA pursuant to 21 C.F.R. Part 314, or its foreign Agency equivalent,
and all supplements, amendments, and revisions thereto, any preparatory work,
drafts and data necessary for the preparation thereof, and all correspondence
between Respondents and the FDA or other Agency relative thereto.

 

I.                       “Approvable
Letter” means a letter from the FDA that an Application is basically approvable
as described in 21 C.F.R. Part 314.110.

 

J.                      “Approval
Letter” means a letter from the FDA approving an Application as described in 21
C.F.R. Part 314.105.

 

K.                  “Closing Date”
means the date on which Respondents (or a Divestiture Trustee) and a
Commission-approved Acquirer consummate a transaction to grant, license,
deliver or otherwise convey relevant assets pursuant to this Order.  (Pursuant to Paragraph II.A. of this Order,
the Closing Date is required to occur not later than ten (10) Days after the
Effective Date.)

 

L.                    “Commission-approved
Acquirer” means the following:

 

1.         Barr, if Barr has not
been rejected by the Commission pursuant to Paragraph II.A. of this Order; or

 

2.               an entity approved
by the Commission to acquire particular assets that the Respondents are
required to grant, license, deliver or otherwise convey pursuant to this Order.

 

M.               “Confidential
Business Information” means all information owned by, or in the possession or
control of, Respondents that is not in the public domain and that is related to
the research, Development, manufacture, marketing, importation, exportation,
supply, sales, sales support, or use of Oral Opioid Fentanyl.

 

N.                  “Contract
Manufacture” means the manufacture of Oral Opioid Fentanyl to be supplied by
Respondents or a Designee specifically identified in this Order for sale to the
Commission-

 

3

 

approved
Acquirer.

 

O.                  “Day(s)” means
the period of time prescribed under this Order as computed pursuant to 16
C.F.R. § 4.3 (a).

 

P.                    “Designee”
means any entity other than the Respondent(s) that will manufacture Oral Opioid
Fentanyl for a Commission-approved Acquirer.

 

Q.                  “DD5” means the
Product in preclinical development by Respondent Cephalon as of the Effective
Date that is a buccal patch formulation comprising Fentanyl and is designated
“DD5.”

 

R.                   “Development”
means all preclinical and clinical drug development activities (including
formulation), including test method development and stability testing,
toxicology, bioequivalency, formulation, process development, manufacturing
scale-up, development-stage manufacturing, quality assurance/quality control
development, statistical analysis and report writing, conducting clinical
trials for the purpose of obtaining any and all approvals, licenses,
registrations or authorizations from any Agency necessary for the manufacture,
use, storage, import, export, transport, promotion, marketing and sale of a
Product (including any governmental price or reimbursement approvals), Product
approval and registration, and regulatory affairs related to the
foregoing.  “Develop” means to engage in
Development.

 

S.                    “Direct Cost”
means the cost of direct labor and direct material used to provide the relevant
assistance or service.

 

T.                   “Divestiture
Trustee” means a trustee appointed by the Commission pursuant to the relevant
provisions of this Order.

 

U.                  “Drug Master
Files” means the information submitted to the FDA as described in 21 C.F.R.
Part 314.420 related to a Product.

 

V.                   “Effective
Date” means the earlier of the following dates:

 

1. the date the Respondents close on
the Acquisition Agreement; or

 

2. the date the merger contemplated
by the Acquisition Agreement becomes effective by filing the certificate of
merger with the Secretary of State of the State of Delaware.

 

W.              “Fentanyl” means the
chemical substance known by the international non-proprietary name fentanyl
citrate and/or all pharmaceutically active derivatives thereof including,
without limitation, esters, salts, hydrates, solvates, polymorphs, prodrugs,
metabolites and isomers thereof and all hydrates, solvates, polymorphs,
prodrugs and isomers of such salts.

 

4

 

X.                  “Field” means
the prevention, treatment, diagnosis, or control of a particular medical
condition.

 

Y.                   “Final FDA
Approval” means approval of a Product by the FDA pursuant the Federal Food,
Drug, and Cosmetic Act § 505(b), 21 U.S.C. 355(b).

 

Z.                   “Final Finished
Form” means a Product packaged in final form and ready for sale by the
Commission-approved Acquirer to the Commission-approved Acquirer’s ultimate
customer (other than for the addition of the Commission-approved Acquirer’s
specific packaging and/or labeling).

 

AA.       “Generic Entrant
Forbearance Date” means the earlier of the following dates:

 

1.  August 3, 2007; or

 

2.  one hundred eighty (180) Days
after the Marketing Licensing Date.

 

BB.           “Governmental Entity”
means any Federal, state, local or non-U.S. government or any court,
legislature, governmental agency or governmental commission or any judicial or
regulatory authority of any government.

 

CC.           “Interim Monitor” means
a monitor appointed by the Commission pursuant to Paragraph III of this Order.

 

DD.         “Law” means all laws,
statutes, rules, regulations, ordinances and other pronouncements having the
effect of law by any Governmental Entity.

 

EE.             “Marketing Licensing
Date” means the following dates:

 

1.     with respect to Substantially
Sugar-Free Formulations of Oral Opioid Fentanyl, the earliest of the following
dates:

 

a.     the date of Final FDA Approval of OVF;

 

b.     the date of notice of a withdrawal of
approval by the FDA of NDA No. 20-747; or

 

c.               the date of Final
FDA Approval of a Substantially Sugar-Free Formulation of Oral Opioid Fentanyl
(unless, at least sixty (60) Days
prior to the occurrence of the Marketing Licensing Date with respect to all
other formulations of Oral Opioid Fentanyl (as determined below), the FDA
determines such formulation is therapeutically equivalent to other formulations
of Oral Opioid Fentanyl already approved by the FDA, i.e., the FDA determines that any actual or potential
bioequivalence problems have been resolved with adequate evidence supporting bioequivalence);

 

5

 

 

 

provided, however,
that should Marketing Licensing Date with respect to Substantially Sugar-Free
Formulations of Oral Opioid Fentanyl (as determined above) occur prior to the
occurrence of the Marketing Licensing Date with respect to all other
formulations of Oral Opioid Fentanyl (as determined below), then the Marketing
Licensing Date for the Sugar-Free Formulations of Oral Opioid Fentanyl shall
instead be defined to be the same date as Marketing Licensing Date with respect
to all other formulations of Oral Opioid Fentanyl (as determined below); and

 

2.     with respect to all other
formulations of Oral Opioid Fentanyl the earliest of the following dates:

 

a.               the date of Final
FDA Approval of OVF;

 

b.              September 5, 2006,
if Respondents are not granted Pediatric Exclusivity with respect to
Oral Opioid Fentanyl; or

 

c.               February 3, 2007,
if Respondents are granted Pediatric Exclusivity with respect to Oral Opioid
Fentanyl,

 

provided, however,
if Respondents have not obtained Final FDA Approval of a Substantially
Sugar-Free Formulation of Oral Opioid Fentanyl on or before the later of the
following dates:  (1) July 1, 2005; or
(2) one hundred eighty (180) Days from the date of an Approvable Letter for a
Substantially Sugar-Free Formulation of Oral Opioid Fentanyl issued to the
Respondents (but only if such Approvable Letter is issued on or before July 1,
2005), then the Marketing Licensing Date with respect to Substantially Sugar
Free Formulations and all other formulations of Oral Opioid Fentanyl shall be
no later than September 5, 2006.

 

FF.             “Not Approvable
Letter” means a letter from the FDA that an Application may not be approved, as
described in 21 C.F.R. Part 314.120.

 

GG.           “Oral Opioid Fentanyl”
means all Products that contain the active pharmaceutical ingredient Fentanyl
and any dose form, presentation or line extension thereof existing as of the
Effective Date.  The term “Oral Opioid
Fentanyl” also includes all Products marketed or in Development by Respondent
Cephalon on or before the Effective Date that contain active pharmaceutical
ingredient Fentanyl and are planned to be marketed for use in the Field of pain
management.  This includes all sugar-free
versions of such Products (except
where this Order specifically differentiates between Substantially Sugar-Free
Formulation(s) and other formulations of the Products); provided, however, the term “Oral Opioid
Fentanyl” does not include the following: 
(1) Products that were owned or controlled by Respondent CIMA prior to
the Effective Date and that were not owned or controlled by Respondent Cephalon

 

6

 

prior to such
date; and (2) Respondent Cephalon’s Product DD5.

 

HH.         “Oral Opioid Fentanyl
Assets” means all of Respondent Cephalon’s rights in and to all Product
Intellectual Property and Product Manufacturing Technology related to
Respondent Cephalon’s business in the United States related to the Oral Opioid
Fentanyl to the extent legally transferable, including the research,
Development, manufacture, distribution, marketing or sale of Oral Opioid
Fentanyl, including, without limitation, the following:

 

1.               license(s) to all
Product Intellectual Property;

 

2.               Right of Reference
or Use to the Drug Master Files including, but not limited to, the pharmacology
and toxicology data contained in all Applications, NDAs, ANDAs, SNDAs and MAAs;

 

3.               Rights of Reference
or Use (if such rights exist) to information similar to the Drug Master Files
submitted to any Agency other than the FDA;

 

4.               copies of all
Product Scientific and Regulatory Material;

 

5.               licenses to all
Product Manufacturing Technology;

 

6.               copies of all
Respondents’ books, records and files related to the foregoing, including, but
not limited to, the following specified documents:

 

a.               the Product
Registrations;

 

b.              Drug Master Files,
including, but not limited to, the pharmacology and toxicology data contained
in all Applications, NDAs, ANDAs, SNDAs and MAAs; all data submitted to and all
correspondence with the FDA and other Agencies; all validation documents and
data; including, without limitation, clinical data, and quality control
histories pertaining to Oral Opioid Fentanyl owned by, or in the possession or
control of, Respondents, or to which Respondents have a right of access, in
each case such as is in existence as of the Closing Date;

 

provided, however,
the Oral Opioid Fentanyl Assets do not include the following:  (1) businesses and assets that were owned or
controlled by Respondent CIMA prior to the Effective Date and that were not
owned or controlled by Respondent Cephalon prior to such date; and (2) and
assets solely related to Respondent Cephalon’s Product DD5.

 

II.                   “Oral Opioid
Fentanyl Core Employees” means Product Manufacturing Employees, and Product
Research and Development Employees.

 

7

 

JJ.                 “Oral Opioid
Fentanyl License and Supply Agreement” means the “License and Supply Agreement”
by and between Cephalon Inc. and Barr Laboratories, Inc. dated July 7, 2004,
and all amendments, exhibits, attachments, agreements, and schedules thereto,
related to the Oral Opioid Fentanyl Assets to be granted, licensed, delivered,
or otherwise conveyed, that have been approved by the Commission to accomplish
the requirements of this Order.  The Oral
Opioid Fentanyl License and Supply Agreement is attached to this Order as
non-public Appendix I.

 

KK.         “Oral Opioid Fentanyl
Releasee(s)” means the Commission-approved Acquirer or any entity controlled by
or under common control with the Commission-approved Acquirer, or any
licensees, sublicensees, manufacturers, suppliers, distributors, and customers
of the Commission-approved Acquirer, or of such Commission-approved
Acquirer-affiliated entities.

 

LL.             “Oral Opioid Risk
Management Program” means a strategic safety program designed to decrease
product risk by using one or more interventions or tools beyond the package
insert, which program may be modified or amended from time to time and may be a
condition of Final FDA Approval.

 

MM.   “OVF” means the Product,
OraVescent® Fentanyl, under development by Respondent CIMA that contains
Fentanyl and is formulated with an effervescent agent and is the subject of an
IND No. 65,447 or any other IND subsequently filed by Respondents.

 

NN.         “Patents” means all
patents, patent applications and statutory invention registrations, in each
case existing as of the Effective Date (except where this Order specifies a
different time), and includes all reissues, divisions, continuations,
continuations-in-part, substitutions, reexaminations, restorations,
and /or patent term extensions thereof, all inventions disclosed therein, all
rights therein provided by international treaties and conventions, and all
rights to obtain and file for patents and registrations thereto in the United
States, related to a Product of or owned by Respondent Cephalon as of the
Effective Date.

 

OO.         “Pediatric Exclusivity”
means exclusivity obtained in accordance with the requirements of Federal Food,
Drug, and Cosmetic Act § 505a, 21 U.S.C. 355a.

 

PP.             “Product” means any
pharmaceutical, biological, or genetic composition containing any formulation
or dosage of a compound referenced as its pharmaceutically, biologically or
genetically active ingredient.

 

QQ.         “Product Employee
Information” means the following:

 

1.               a complete and
accurate list containing the name of each relevant employee as of the execution
date of the related Remedial Agreement. 
This list shall be organized by the relevant respective employee
categories defined in this Order, (i.e.,
“Product

 

8

 

Manufacturing Employees,” or
“Product Research and Development Employees,” as applicable);

 

2.               with respect to
each such employee the following information:

 

a.               job title or
position held;

 

b.              a specific
description of the employee’s responsibilities related to Oral Opioid Fentanyl;
provided, however, in lieu of
this description, Respondents may provide the employee’s most recent
performance appraisal.

 

RR.           “Product Intellectual
Property” means all of the following related to the Product(s):

 

1.               Patents;

 

2.               Product Trademarks;

 

3.               trade secrets, know-how,
techniques, data, inventions, practices, methods and other confidential or
proprietary technical, business, research, Development and other information;
and

 

4.               rights to obtain
and file for Patents and registrations thereof;

 

provided, however,
“Product Intellectual Property” does not include the names “CIMA”, “Cephalon,”
or the names of any other corporations or companies owned by Respondents or
related logos to the extent used on other of Respondent CIMA’s or Respondent
Cephalon’s Products;

 

provided further, however,
“Product Intellectual Property” does not include the trade name Actiq®.

 

SS.             “Product
Manufacturing Employees” means all salaried employees of Respondent(s) who
directly participated (irrespective of the portion of working time involved) in
the manufacture of the Oral Opioid Fentanyl, including, but not limited to, the
Senior Director of Commercial Manufacturing, the Associate Director of
Production Planning, and the Manager of Commercial Manufacturing, and all those
involved in the quality assurance and quality control of the Oral Opioid
Fentanyl, within the eighteen (18) month period immediately prior to the
Closing Date.

 

TT.           “Product Manufacturing
Technology” means all technology, trade secrets, know-how, and
proprietary information (whether patented, patentable or otherwise) related to
the manufacture (including all equipment used to manufacture a Product in Final
Finished Form), validation, packaging, release testing, stability and shelf
life of Oral Opioid Fentanyl,

 

9

 

including all
product formulations, in existence and in the possession of Respondents as of
the Closing Date, product specifications, processes, product designs, plans,
trade secrets, ideas, concepts, manufacturing, engineering and other manuals
and drawings, standard operating procedures, flow diagrams, chemical,
pharmacological, toxicological, pharmaceutical, physical and analytical,
safety, efficacy, bioequivalency, quality assurance, quality control and clinical
data, research records, compositions, annual product reviews, process
validation reports, analytical method validation reports, specifications for
stability trending and process controls, testing and reference standards for
impurities in and degradation of products, technical data packages, chemical
and physical characterizations, dissolution test methods and results,
formulations for administration, clinical trial reports, regulatory
communications and labeling and all other information related to the manufacturing
process, and supplier lists.

 

UU.         “Product Research and
Development Employees” means all employees of Respondent(s) who directly
participated (irrespective of the portion of working time involved) in the
research, Development, regulatory approval process, or clinical studies of Oral
Opioid Fentanyl within the eighteen (18) month period immediately prior to the
Closing Date.

 

VV.           “Product Scientific and
Regulatory Material” means all technological, scientific, chemical, biological,
pharmacological, toxicological, regulatory and clinical trial materials and
information related to Oral Opioid Fentanyl, and full rights to use such
materials, in any and all jurisdictions.

 

WW.     “Product Trademark(s)” means
the following as related to Oral Opioid Fentanyl:

 

1.               the U.S. Trademark
Registration No. 2,622,734 as needed for a single dose entity of any generic
version of Oral Opioid Fentanyl;

 

2.               at the
Commission-approved Acquirer’s option, any trademark or trade dress covering
the size, shape and color of a single dose entity of any generic version of
Oral Opioid Fentanyl;

 

3.               the Oral Opioid
Risk Management Program; and

 

4.               the appearance,
structure, textual or graphical content and/or color scheme of any labeling,
dosing information, product inserts, storage containers and/or other materials,
to the extent that the FDA or and other Agency requires the Commission-approved
Acquirer to duplicate such appearance, structure, textual or graphical content
and/or color scheme of any labeling, dosing information, product inserts,
storage containers and/or other materials.

 

XX.         “Proposed Acquirer” means
an entity proposed by the Respondents (or a Divestiture Trustee) to the
Commission and submitted for the approval of the Commission as the acquirer for

 

10

 

particular
assets required to be granted, licensed, delivered or otherwise conveyed by
Respondents pursuant to this Order.

 

YY.           “Remedial Agreement”
means the following:

 

1.               the Oral Opioid
Fentanyl License and Supply Agreement, if such agreement has not been rejected
by the Commission pursuant to Paragraph II.A. of this Order; or

 

2.               any agreement
between a Respondent(s) and a Commission-approved Acquirer (or between a
Divestiture Trustee and a Commission-approved Acquirer) that has been approved
by the Commission to accomplish the requirements of this Order, and all
amendments, exhibits, attachments, agreements, and schedules thereto, related
to the relevant assets to be granted, licensed, delivered or otherwise conveyed
that have been approved by the Commission to accomplish the requirements of
this Order.

 

ZZ.           “Right of Reference or
Use” means the authority to rely upon, and otherwise use, an investigation for
the purpose of obtaining approval of an Application, including the ability to
make available the underlying raw data from the investigation for FDA audit.

 

AAA.               “Substantially
Sugar-Free Formulation(s)” means either of the following:

 

1.               a Product
containing less than one-half (0.5) grams of Sugar(s) per dosage; or

 

2.      a Product approved by the
FDA for labeling as “Sugar-Free.”

 

BBB.   “Sugar(s)” means the sum of all
free mono- and disaccharides (such as glucose, fructose, lactose, and sucrose)
as defined in 21 C.F.R. §101.9(c)(6)(ii).

 

CCC.   “Supply Cost” means the manufacturer’s
average direct per unit cost of manufacturing the Product plus costs of
manufacturing the Product that are directly attributable to FDA regulatory,
quality control and compliance.  “Supply
Cost” shall expressly exclude any intracompany business transfer profit.

 

DDD.    “Third Party(ies)” means any
private entity other than the following: 
(1) the Respondents, or (2) the Commission-approved Acquirer.

 

II.

 

IT IS FURTHER ORDERED
that:

 

A.                     Not later
than ten (10) Days after the Effective Date, Respondents shall grant
irrevocable, perpetual, fully paid-up and royalty-free license(s) in the United
States to the Oral Opioid

 

11

 

Fentanyl Assets and shall
grant, license, deliver or otherwise convey the Oral Opioid Fentanyl Assets,
absolutely and in good faith, on a non-exclusive basis to Barr pursuant to and
in accordance with the Oral Opioid Fentanyl License and Supply Agreement (which
agreement shall not vary or contradict, or be construed to vary or contradict,
the terms of this Order, it being understood that nothing in this Order shall
be construed to reduce any rights or benefits of Barr or to reduce any
obligations of Respondents under such agreement).  Such licenses shall be effective as follows:

 

1.               as of the Closing
Date, as to Barr’s rights to manufacture and Develop Oral Opioid Fentanyl using
the Oral Opioid Fentanyl Assets; and

 

2.               not later than the
Marketing Licensing Date, as to Barr’s rights to distribute, market or sell
Oral Opioid Fentanyl using the Oral Opioid Fentanyl Assets.

 

If Respondents
do not grant, license, deliver or otherwise convey the Oral Opioid Fentanyl
Assets to Barr within ten (10) Days after the Effective Date as provided above,
the Commission may, pursuant to Paragraph IV of this Order, appoint a
Divestiture Trustee to license, grant, deliver and otherwise convey the Oral
Opioid Fentanyl Assets;

 

provided, however, that, if Respondents have
granted, licensed, delivered or otherwise conveyed the Oral Opioid Fentanyl
Assets to Barr prior to the date this Order becomes final, and if, at the time
the Commission determines to make this Order final, the Commission notifies
Respondents that Barr is not an acceptable purchaser of the Oral Opioid
Fentanyl Assets, then Respondent shall immediately rescind the transaction with
Barr and shall grant, license, deliver or otherwise convey the Oral Opioid
Fentanyl Assets within six (6) months from the date the Order becomes final,
absolutely and in good faith, at no minimum price, to a Commission-approved
Acquirer and only in a manner that receives the prior approval of the
Commission;

 

provided further, however, that if the Respondents have
granted, licensed, delivered or otherwise conveyed the Oral Opioid Fentanyl
Assets to Barr prior to the date this Order becomes final, and if, at the time
the Commission determines to make this Order final, the Commission notifies the
Respondents that the manner in which the grant, license, delivery or conveyance
was accomplished is not acceptable, the Commission may direct the Respondents,
or appoint a Divestiture Trustee, pursuant to Paragraph IV of this Order, to
effect such modifications to the manner of granting, licensing, delivery or
conveyance of the Oral Opioid Fentanyl Assets to Barr (including, but not
limited to, entering into additional agreements or arrangements) as the
Commission may be necessary to satisfy the requirements of this Order.

 

B.                       Not later
than ten (10) Days after the Closing Date, Respondents shall begin to deliver
to the Commission-approved Acquirer, at Respondent’s expense, copies of all
Confidential Business Information related to the Product Manufacturing
Technology, Product Scientific and Regulatory Material, and Product Trademarks
related to Oral Opioid Fentanyl Assets.

 

12

 

Not later than one hundred
eighty (180) Days after the Closing Date, Respondents shall complete delivery
of all such Confidential Business Information to the Commission-approved
Acquirer and certify to the Commission that such delivery has occurred in
accordance with this Order.  Respondents
shall deliver such Confidential Business Information as follows:  (1) in good faith; (2) as soon as
practicable, avoiding any delays in transmission of the respective information;
and (3) in a manner that insures its completeness and accuracy and that fully
preserves its usefulness.  Pending
complete delivery of all such Confidential Business Information to the
Commission-approved Acquirer, Respondents shall provide the Commission-approved
Acquirer and the Interim Monitor (if any has been appointed) with access to all
such Confidential Business Information and employees that possess or are able
to locate such information for the purposes of identifying the books, records,
and files related to the Oral Opioid Fentanyl Assets that contain such
Confidential Business Information and facilitating the delivery in a manner
consistent with this Order.

 

C.                       Respondents
shall not enforce any agreement against a Third Party or the Commission-approved
Acquirer to the extent that such agreement may limit or otherwise impair the
ability of the Commission-approved Acquirer to acquire the Product
Manufacturing Technology or related equipment from the Third Party.  Such agreements include, but are not limited
to, agreements with respect to the disclosure of Confidential Business
Information related to the Product Manufacturing Technology.

 

D.                      Not later
than ten (10) Days after the Effective Date, Respondents shall grant a release
to each Third Party that is subject to an agreement as described in Paragraph
II.C. that allows the Third Party to provide the relevant Product Manufacturing
Technology or related equipment to the Commission-approved Acquirer.  Within five (5) Days of the execution of each
such release, Respondents shall provide a copy of the release to the
Commission-approved Acquirer.

 

E.                        Any
Remedial Agreement that has been approved by the Commission between Respondents
(or a Divestiture Trustee) and a Commission-approved Acquirer of the Oral
Opioid Fentanyl Assets shall be deemed incorporated into this Order, and any
failure by Respondents to comply with any term of such Remedial Agreement
related to the Oral Opioid Fentanyl Assets shall constitute a failure to comply
with this Order.

 

F.                        Respondents
shall include in any Remedial Agreement related to the Oral Opioid Fentanyl
Assets the following provisions:

 

1.               At the
Commission-approved Acquirer’s Option, Respondents shall Contract Manufacture
and deliver to the Commission-approved Acquirer, in a timely manner and under
reasonable terms and conditions, a supply of Oral Opioid Fentanyl, including
such Product in Final Finished Form, at Respondents’ Supply Cost, for a period
of time sufficient to allow the Commission-approved Acquirer (or the Designee
of the Commission-approved Acquirer) to obtain all FDA approvals necessary to
manufacture

 

13

 

Oral Opioid
Fentanyl independently of Respondents; provided,
however, Respondents’ obligation to Contract Manufacture shall not
exceed six (6) years from the Closing Date.

 

2.               After the Closing
Date and continuing for the term of the Contract Manufacture related to Oral
Opioid Fentanyl, Respondents will make inventory of Oral Opioid Fentanyl
available for sale or resale only to the Commission-approved Acquirer (other
than for use in Respondents’ own business related to Oral Opioid Fentanyl).

 

3.               The Respondents’
obligation to supply Oral Opioid Fentanyl to the Commission-approved Acquirer
shall take priority over the manufacture and supply of Oral Opioid Fentanyl for
Respondents’ own use or sale.

 

4.               Respondents shall
make representations and warranties to the Commission-approved Acquirer that
the Oral Opioid Fentanyl supplied through Contract Manufacture pursuant to the
Remedial Agreement meets current good manufacturing practices of the FDA, as
set forth in 21 C.F.R. Parts 210 and 211. 
Respondents shall agree to indemnify, defend and hold the
Commission-approved Acquirer harmless from any and all suits, claims, actions,
demands, liabilities, expenses or losses alleged to result from the failure of
the Oral Opioid Fentanyl supplied to the Commission-approved Acquirer pursuant
to the Remedial Agreement by the Respondents to meet such specifications.  This obligation shall be contingent upon the
Commission-approved Acquirer giving Respondents prompt, adequate notice of such
claim and cooperating fully in the defense of such claim.  The Remedial Agreement shall be consistent
with the obligations assumed by Respondents under this Order; provided, however,
Respondents may reserve the right to control the defense of any such
litigation, including the right to settle the litigation, so long as such
settlement is consistent with the Respondents’ responsibilities to supply Oral
Opioid Fentanyl in the manner required by this Order; provided further, however,
this obligation shall not require Respondents to be liable for any negligent
act or omission of the Commission-approved Acquirer or for any representations
and warranties, express or implied, made by the Commission-approved Acquirer
that exceed the representations and warranties made by the Respondents to the
Commission-approved Acquirer.

 

5.               Respondents shall
make representations and warranties to the Commission-approved Acquirer that
Respondents will hold harmless and indemnify the Commission-approved Acquirer
for any liabilities including, but not limited to, indirect damages, special
damages, consequential damages, lost profits, legal fees and costs resulting from
the failure by Respondents to deliver Oral Opioid Fentanyl in a timely manner
as required by the Remedial Agreement unless Respondents can demonstrate that
their failure was entirely beyond the control of the Respondents and in no part
the result of negligence or willful misconduct by Respondents.

 

6.               During the term of
the Contract Manufacture between Respondents and the Commission-approved
Acquirer, upon request of the Commission-approved Acquirer or Interim

 

14

 

Monitor (if
applicable), Respondents shall make available to the Commission-approved
Acquirer or the Interim Monitor all records that relate to the manufacture of
Oral Opioid Fentanyl that are generated or created after the Closing Date.

 

7.               Upon reasonable
notice and request from the Commission-approved Acquirer to the Respondents,
Respondents shall provide in a timely manner at no greater than Direct Cost the
following:

 

a.               assistance and
advice to enable the Commission-approved Acquirer (or the Designee of the
Commission-approved Acquirer) to obtain all necessary permits and approvals
from any Agency or Governmental Entity to manufacture and sell Oral Opioid
Fentanyl;

 

b.              assistance to the
Commission-approved Acquirer (or the Designee of the Commission-approved
Acquirer) to manufacture Oral Opioid Fentanyl in substantially the same manner
and quality employed or achieved by Respondent Cephalon; and

 

c.               consultation with
knowledgeable employees of Respondents and training, at the request of the Commission-approved
Acquirer and at a facility chosen by the Commission-approved Acquirer, until
the Commission-approved Acquirer (or the Designee of the Commission-approved
Acquirer) obtains all FDA approvals necessary to manufacture Oral Opioid
Fentanyl independently of the Respondents and sufficient to satisfy management
of the Commission-approved Acquirer that its personnel (or the Designee’s
personnel) are adequately trained in the manufacture of Oral Opioid Fentanyl.

 

8.               Upon reasonable
notice and request from the Commission-approved Acquirer to the Respondents,
after the Marketing Licensing Date, Respondent shall provide in a timely
manner, at no greater than Direct Cost, assistance with knowledgeable employees
of the relevant Respondent to assist the Commission-approved Acquirer to defend
against, respond to, or otherwise participate in any litigation related to the
Product Intellectual Property related to Oral Opioid Fentanyl.

 

9.               Respondents shall
covenant to the Commission-approved Acquirer that, after the Marketing
Licensing Date (except for the manufacture and Development of Oral Opioid
Fentanyl, in which case, the covenant shall begin as of the Closing Date),
Respondents shall not join, or file, prosecute or maintain any suit, in Law or
equity, against the Commission-approved Acquirer or the Oral Opioid Fentanyl
Releasee(s) for the research, Development, manufacture, use, import,
distribution, or sale of Oral Opioid Fentanyl (but only as to those Products
that are commercialized or in Development as of the Closing Date) under Patents
that:

 

15

 

a.               are owned or
licensed by Respondent Cephalon as of immediately prior to the closing on the
acquisition of CIMA; or

 

b.              may be assigned,
granted, licensed, or otherwise conveyed to Respondents after the Effective
Date, if such suit would have the potential to interfere with the
Commission-approved Acquirer’s freedom to practice in the research,
Development, manufacture, use, import, sale, marketing or distribution of Oral
Opioid Fentanyl (but only as to those Products that are commercialized or in
Development as of the Closing Date) in the Field of pain management.

 

10.         Respondents shall
covenant to the Commission-approved Acquirer that, after the Marketing Licensing
Date (except for the manufacture
and Development of Oral Opioid Fentanyl, in which case, the covenant shall
begin as of the Closing Date):

 

a.               any Third Party
assignee or licensee of the above-described Patents shall agree to provide a
covenant not to sue the Oral Opioid Fentanyl Releasees, at least as protective
as those extended pursuant to the preceding Paragraph II.F.9, as a condition of
such assignment or license; and

 

b.              with respect to any
Third Party rights licensed to Respondents as of or after the Effective Date,
and as to which Respondents do not control the right of prosecution of any
suit, legal or other action, Respondents shall not actively induce, assist or
participate in any suit, legal or other action or proceeding relating to the Oral
Opioid Fentanyl Products (but only as to those Products that are commercialized
or in Development as of the Closing Date) against the Oral Opioid Releasees,
unless required by Law or contract (such contract not to be solicited or
entered into for the purpose of circumventing any of the requirements of this
Order).

 

provided, however,
that if the Oral Opioid Fentanyl License and Supply Agreement is the Remedial
Agreement for the Oral Opioid Fentanyl Assets, then Respondents shall be deemed
to have complied with any of the Supply Cost and Direct Cost requirements
described in this Paragraph II.F. by complying with the such cost provisions as
provided in the Oral Opioid Fentanyl License and Supply Agreement.

 

G.             For a period from the
Closing Date until August 3, 2007, (“the Oral Opioid Fentanyl Access Period”),
Respondents shall provide the Commission-approved Acquirer with the opportunity
to enter into employment contracts with the Oral Opioid Fentanyl Core
Employees.  Respondents shall remove any
impediments within the control of Respondents that may deter these employees
from accepting employment with the Commission-approved Acquirer, including, but
not limited to, any non-compete provisions of employment or other contracts
with Respondents that would affect the ability of those individuals to be
employed by the Commission-approved Acquirer.

 

16

 

H.            Not later than the
earlier of the following dates:  (1) ten
(10) Days after notice by staff of the Commission to the Respondents to provide
the Product Employee Information; or (2) ten (10) Days after the Closing Date,
Respondents shall provide the Commission-approved Acquirer or the Proposed
Acquirer the Product Employee Information related to the Oral Opioid Fentanyl
Core Employees.  Failure by Respondents
to provide the Product Employee Information for any relevant employee within
the time provided herein shall extend the Oral Opioid Fentanyl Access Period
with respect to that employee in an amount equal to the delay.

 

I.                 Prior to the
Closing Date, Respondents shall secure all consents and waivers from all Third
Parties that are necessary for the licensing of the Oral Opioid Fentanyl Assets
to the Commission-approved Acquirer, or for the continued research, Development,
manufacture, use, import, sale, marketing or distribution of Oral Opioid
Fentanyl by the Commission-approved Acquirer.

 

J.                Upon reasonable
notice and request from the Commission-approved Acquirer to the Respondents,
Respondents shall provide (in a timely manner and at no greater than Direct
Cost) to the Commission-approved Acquirer consultation with, assistance,
training, and advice from, knowledgeable employees of Respondents with respect
to the Development and manufacture of Oral Opiod Fentanyl, that the
Commission-approved Acquirer might reasonably need in order to receive and use
the Oral Opioid Fentanyl Assets in a manner consistent with this Order, and
shall continue providing such consultation, assistance, training and advice, at
the request of the Commission-approved Acquirer, until the Commission-approved
Acquirer (or the Designee of the Commission-approved Acquirer) is fully
validated, qualified, and approved by the FDA, and able to manufacture Oral
Opioid Fentanyl independently of the Respondents.

 

K.            Pending the granting,
licensing, delivery or conveyance of the Oral Opioid Fentanyl Assets,
Respondents shall take such actions as are necessary to maintain the full
economic viability, marketability and competitiveness of the business
associated with the Oral Opioid Fentanyl Assets, to minimize any risk of loss
of competitive potential for the business associated with the Oral Opioid
Fentanyl Assets, and to prevent the destruction, removal, wasting,
deterioration, or impairment of any of the Oral Opioid Fentanyl Assets except
for ordinary wear and tear.

 

L.              After the Marketing
Licensing Date (except for the manufacture and Development of Oral Opioid
Fentanyl, in which case, this Paragraph shall apply as of the Closing Date),
Respondents shall not join, or file, prosecute or maintain any suit, in Law or
equity, against the Commission-approved Acquirer or the Oral Opioid Fentanyl
Releasee(s) for the research, Development, manufacture, use, import, sale,
marketing or distribution of Oral Opioid Fentanyl (but only as to those
Products that are commercialized or in Development as of the Closing Date)
under the following:

 

1.               any Patents owned
or licensed by Respondents as of the Effective Date or acquired after

 

17

 

the Effective
Date that claim the use of Oral Opioid Fentanyl in the Field of pain
management; or

 

2.               that claim any
aspect of the research, Development, manufacture, use, import, sale, marketing,
or distribution of Oral Opioid Fentanyl other than such Patents that claim
inventions conceived by and reduced to practice by Respondents’ employees after
the Effective Date.

 

M.         Respondents shall
maintain manufacturing facilities for the Oral Opioid Fentanyl finished drug
product, that are validated, qualified and approved by the FDA, and fully
capable of producing Oral Opioid Fentanyl finished drug product and shall
Contract Manufacture and supply such finished drug product to the
Commission-approved Acquirer until the Commission-approved Acquirer (or the Designee
of the Commission-approved Acquirer) is fully validated, qualified and approved
by the FDA and able to manufacture Oral Opioid Fentanyl finished drug product
in a facility that is independent of Respondents;

 

provided, however,
this obligation shall not exceed six (6) years from the Closing Date;

 

provided further, however,
the Commission may eliminate, or further limit the duration of, the
Respondent’s obligation under this provision should the Commission determine
that the Commission-approved Acquirer is not using commercially reasonable best
efforts to secure the FDA approvals necessary to manufacture Oral Opioid
Fentanyl finished drug product in a facility that is independent of
Respondents.

 

N.            At any time after the
Generic Entrant Forbearance Date, Respondents shall not seek to enforce any
Patent(s) related to Oral Opioid Fentanyl that is filed pursuant to 21 U.S.C.
§ 355(b)(1) as a part of the following:

 

1.               the NDA No. 20-747,
as supplemented, or amended; or

 

2.               any Application
filed by the Respondents for the purposes of obtaining an approval to label a
formulation of Oral Opioid Fentanyl as 
“Sugar-Free” or an equivalent labeling designation,

 

against any Third Party to the extent that such enforcement might
prohibit, limit, or otherwise impair the Third Party’s ability to commercialize
a Product under an ANDA filed by the Third Party that references such Patent(s)
and the Product listed under the above-referenced NDA; provided, however, that this Paragraph
shall not apply to Patents solely related to Substantially Sugar-Free
Formulations of Oral Opioid Fentanyl until Final FDA Approval of OVF.

 

O.            Not later than the Generic Entrant
Forbearance Date, Respondents shall make available to the public those patent
applications filed by Respondents, not already published, that are related

 

18

 

to Oral Opioid Fentanyl.

 

P.              The purpose of the grant, license,
delivery and conveyance of the Oral Opioid Fentanyl Assets to a
Commission-approved Acquirer is to create an independent, viable and effective
competitor in the relevant market in which the Oral Opioid Fentanyl Assets were
engaged at the time of the announcement of the Acquisition, and to remedy the
lessening of competition resulting from the Acquisition as alleged in the
Commission’s Complaint.

 

III.

 

IT IS FURTHER ORDERED
that:

 

A.           At any time after
Respondents sign the Consent Agreement in this matter, the Commission may
appoint a monitor (“Interim Monitor”) to assure that Respondents expeditiously
comply with all of their obligations and perform all of their responsibilities
as required by this Order, and the Remedial Agreements.

 

B.             The Commission shall
select the Interim Monitor, subject to the consent of Respondents, which
consent shall not be unreasonably withheld. 
If neither Respondent has opposed, in writing, including the reasons for
opposing, the selection of a proposed Interim Monitor within ten (10) Days
after notice by the staff of the Commission to Respondents of the identity of
any proposed Interim Monitor, Respondents shall be deemed to have consented to
the selection of the proposed Interim Monitor.

 

C.             Not later than ten
(10) Days after the appointment of the Interim Monitor, Respondents shall
execute an agreement that, subject to the prior approval of the Commission,
confers on the Interim Monitor all the rights and powers necessary to permit
the Interim Monitor to monitor Respondents’ compliance with the relevant
requirements of the Order in a manner consistent with the purposes of the
Order.

 

D.            If an Interim Monitors
is appointed, Respondents shall consent to the following terms and conditions
regarding the powers, duties, authorities, and responsibilities of the Interim
Monitor:

 

1.               The Interim Monitor
shall have the power and authority to monitor Respondents’ compliance with the
divestiture and asset maintenance obligations and related requirements of the
Order, and shall exercise such power and authority and carry out the duties and
responsibilities of the Interim Monitor in a manner consistent with the
purposes of the Order and in consultation with the Commission.

 

2.               The Interim Monitor
shall act in a fiduciary capacity for the benefit of the Commission.

 

3.               The Interim Monitor
shall serve until the later of:

 

19

 

a.               the completion by
Respondents of the divestiture of all relevant assets required to be granted,
licensed, delivered, or otherwise conveyed pursuant to this Order in a manner
that fully satisfies the requirements of the Order and notification by the
Commission-approved Acquirer to the Interim Monitor that it is fully capable of
producing the relevant Product(s) acquired pursuant to a Remedial Agreement
independently of Respondents; or

 

b.              the completion by
Respondents of the last obligation under the Order pertaining to the Interim
Monitor’s service;

 

provided, however,
that the Commission may extend or modify this period as may be necessary or
appropriate to accomplish the purposes of the Order.

 

4.               Subject to any
demonstrated legally recognized privilege, the Interim Monitor shall have full
and complete access to Respondents’ personnel, books, documents, records kept
in the normal course of business, facilities and technical information, and
such other relevant information as the Interim Monitor may reasonably request,
related to Respondents’ compliance with their obligations under the Order,
including, but not limited to, their obligations related to the relevant
assets.  Respondents shall cooperate with
any reasonable request of the Interim Monitor and shall take no action to
interfere with or impede the Interim Monitor’s ability to monitor Respondents’
compliance with the Order.

 

5.               The Interim Monitor
shall serve, without bond or other security, at the expense of Respondents on
such reasonable and customary terms and conditions as the Commission may
set.  The Interim Monitor shall have
authority to employ, at the expense of the Respondents, such consultants,
accountants, attorneys and other representatives and assistants as are
reasonably necessary to carry out the Interim Monitor’s duties and
responsibilities.

 

6.               Respondents shall
indemnify the Interim Monitor and hold the Interim Monitor harmless against any
losses, claims, damages, liabilities, or expenses arising out of, or in
connection with, the performance of the Interim Monitor’s duties, including all
reasonable fees of counsel and other reasonable expenses incurred in connection
with the preparations for, or defense of, any claim, whether or not resulting
in any liability, except to the extent that such losses, claims, damages,
liabilities, or expenses result from misfeasance, gross negligence, willful or
wanton acts, or bad faith by the Interim Monitor.

 

7.               Respondents shall
report to the Interim Monitor in accordance with the requirements of this Order
and/or as otherwise provided in any agreement approved by the Commission.  The Interim Monitor shall evaluate the
reports submitted to the Interim Monitor by Respondents, and any reports
submitted by the Commission-approved Acquirer with

 

20

 

respect to the
performance of Respondents’ obligations under the Order or the Remedial
Agreement.  Within thirty (30) Days from
the date the Interim Monitor receives these reports, the Interim Monitor shall
report in writing to the Commission concerning performance by Respondents of
their obligations under the Order.

 

8.               Respondents may
require the Interim Monitor and each of the Interim Monitor’s consultants,
accountants, attorneys and other representatives and assistants to sign a
customary confidentiality agreement; provided,
however, that such agreement shall not restrict the Interim Monitor
from providing any information to the Commission.

 

E.              The Commission may,
among other things, require the Interim Monitor and each of the Interim
Monitor’s consultants, accountants, attorneys and other representatives and
assistants to sign an appropriate confidentiality agreement related to
Commission materials and information received in connection with the
performance of the Interim Monitor’s duties.

 

F.              If the Commission
determines that the Interim Monitor has ceased to act or failed to act
diligently, the Commission may appoint a substitute Interim Monitor in the same
manner as provided in this Paragraph.

 

G.             The Commission may on
its own initiative, or at the request of the Interim Monitor, issue such
additional orders or directions as may be necessary or appropriate to assure
compliance with the requirements of the Order.

 

H.            The Interim Monitor
appointed pursuant to this Order may be the same person appointed as a
Divestiture Trustee pursuant to the relevant provisions of this Order.

 

IV.

 

IT IS FURTHER ORDERED
that:

 

A.           If Respondents have not
fully complied with the obligations to grant, license, deliver or otherwise
convey relevant assets as required by this Order, the Commission may appoint a
trustee (“Divestiture Trustee”) to grant, license, deliver or otherwise convey
the assets required to be granted, licensed, delivered or otherwise conveyed
pursuant to each of the relevant Paragraphs in a manner that satisfies the
requirements of each such Paragraph.  In
the event that the Commission or the Attorney General brings an action pursuant
to § 5(l) of the Federal
Trade Commission Act, 15 U.S.C. § 45(l),
or any other statute enforced by the Commission, Respondents shall consent to
the appointment of a Divestiture Trustee in such action to grant, license,
deliver or otherwise convey the relevant assets.  Neither the appointment of a Divestiture
Trustee nor a decision not to appoint a Divestiture Trustee under this
Paragraph shall preclude the Commission or the Attorney General from seeking
civil penalties or any other relief available to it, including a court-appointed
Divestiture Trustee, pursuant to § 5(l)
of the Federal Trade Commission Act, or any other statute enforced by the

 

21

 

Commission,
for any failure by Respondents to comply with this Order.

 

B.             The Commission shall
select the Divestiture Trustee, subject to the consent of Respondents, which
consent shall not be unreasonably withheld. 
The Divestiture Trustee shall be a person with experience and expertise
in acquisitions and divestitures.  If
Respondents have not opposed, in writing, including the reasons for opposing,
the selection of any proposed Divestiture Trustee within ten (10) Days after
notice by the staff of the Commission to Respondents of the identity of any
proposed Divestiture Trustee, Respondents shall be deemed to have consented to
the selection of the proposed Divestiture Trustee.

 

C.             Not later than ten
(10) Days after the appointment of a Divestiture Trustee, Respondents shall
execute a trust agreement that, subject to the prior approval of the
Commission, transfers to the Divestiture Trustee all rights and powers
necessary to permit the Divestiture Trustee to effect the divestiture required
by the Order.

 

D.            If a Divestiture
Trustee is appointed by the Commission or a court pursuant to this Paragraph,
Respondents shall consent to the following terms and conditions regarding the
Divestiture Trustee’s powers, duties, authority, and responsibilities:

 

1.               Subject to the
prior approval of the Commission, the Divestiture Trustee shall have the
exclusive power and authority to grant, license, deliver or otherwise convey
the assets that are required by this Order to be granted, licensed, delivered
or otherwise conveyed.

 

2.               The Divestiture
Trustee shall have one (1) year after the date the Commission approves the
trust agreement described herein to accomplish the divestiture, which shall be
subject to the prior approval of the Commission.  If, however, at the end of the one (1) year
period, the Divestiture Trustee has submitted a plan of divestiture or believes
that the divestiture can be achieved within a reasonable time, the divestiture
period may be extended by the Commission, or, in the case of a court-appointed
Divestiture Trustee, by the court; provided,
however, the Commission may extend the divestiture period only two
(2) times.

 

3.               Subject to any
demonstrated legally recognized privilege, the Divestiture Trustee shall have
full and complete access to the personnel, books, records and facilities
related to the relevant assets that are required to be assigned, granted, licensed,
divested, delivered or otherwise conveyed by this Order and to any other
relevant information, as the Divestiture Trustee may request.  Respondents shall develop such financial or
other information as the Divestiture Trustee may request and shall cooperate
with the Divestiture Trustee. 
Respondents shall take no action to interfere with or impede the
Divestiture Trustee’s accomplishment of the divestiture.  Any delays in divestiture caused by
Respondents shall extend the time for divestiture under this Paragraph in an
amount equal to the delay, as determined by the Commission or, for a court-appointed
Divestiture Trustee, by the court.

 

22

 

4.               The Divestiture
Trustee shall use commercially reasonable efforts to negotiate the most
favorable price and terms available in each contract that is submitted to the
Commission, subject to Respondents’ absolute and unconditional obligation to
divest expeditiously and at no minimum price. 
Each divestiture shall be made in the manner and to an acquirer as
required by this Order; provided, however,
if the Divestiture Trustee receives bona fide offers from more than one
acquiring entity, and if the Commission determines to approve more than one
such acquiring entity, the Divestiture Trustee shall divest to the acquiring
entity selected by Respondents from among those approved by the Commission; provided further,  however, that Respondents shall select
such entity within five (5) Days after receiving notification of the Commission’s
approval.

 

5.               The Divestiture
Trustee shall serve, without bond or other security, at the cost and expense of
Respondents, on such reasonable and customary terms and conditions as the
Commission or a court may set.  The
Divestiture Trustee shall have the authority to employ, at the cost and expense
of Respondents, such consultants, accountants, attorneys, investment bankers,
business brokers, appraisers, and other representatives and assistants as are
necessary to carry out the Divestiture Trustee’s duties and
responsibilities.  The Divestiture
Trustee shall account for all monies derived from the divestiture and all
expenses incurred.  After approval by the
Commission of the account of the Divestiture Trustee, including fees for the
Divestiture Trustee’s services, all remaining monies shall be paid at the
direction of the Respondents, and the Divestiture Trustee’s power shall be
terminated.  The compensation of the
Divestiture Trustee shall be based at least in significant part on a commission
arrangement contingent on the divestiture of all of the relevant assets that
are required to be divested by this Order.

 

6.               Respondents shall
indemnify the Divestiture Trustee and hold the Divestiture Trustee harmless
against any losses, claims, damages, liabilities, or expenses arising out of,
or in connection with, the performance of the Divestiture Trustee’s duties,
including all reasonable fees of counsel and other expenses incurred in
connection with the preparation for, or defense of, any claim, whether or not
resulting in any liability, except to the extent that such losses, claims,
damages, liabilities, or expenses result from misfeasance, gross negligence,
willful or wanton acts, or bad faith by the Divestiture Trustee.

 

7.               In the event that
the Divestiture Trustee determines that he or she is unable to grant, license,
deliver or otherwise convey the relevant assets required to be granted,
licensed,  delivered or otherwise
conveyed in a manner that preserves their marketability, viability and
competitiveness and ensures their continued use in the research, Development,
manufacture, import, distribution, marketing, promotion, sale, or after-sales
support of the relevant Product, the Divestiture Trustee may assign, grant,
license, transfer, divest, deliver or otherwise convey such additional assets
of Respondents and effect such arrangements as are necessary to satisfy the
purposes and requirements of this Order.

 

23

 

8.               The Divestiture
Trustee shall have no obligation or authority to operate or maintain the
relevant assets required to be granted, licensed, transferred, delivered or
otherwise conveyed by this Order.

 

9.               The Divestiture
Trustee shall report in writing to Respondents and to the Commission every sixty
(60) Days concerning the Divestiture Trustee’s efforts to accomplish the
divestiture.

 

10.               Respondents may
require the Divestiture Trustee and each of the Divestiture Trustee’s
consultants, accountants, attorneys and other representatives and assistants to
sign a customary confidentiality agreement; provided,
however, such agreement shall not restrict the Divestiture Trustee
from providing any information to the Commission.

 

E.              If the Commission
determines that a Divestiture Trustee has ceased to act or failed to act
diligently, the Commission may a appoint a substitute Divestiture Trustee in
the same manner as provided in this Paragraph.

 

F.              The Commission or,
in the case of a court-appointed Divestiture Trustee, the court, may on
its own initiative or at the request of the Divestiture Trustee issue such
additional orders or directions as may be necessary or appropriate to
accomplish the divestiture required by this Order.

 

G.             The Divestiture
Trustee appointed pursuant to this Paragraph may be the same person appointed
as Interim Monitor pursuant to the relevant provisions of this Order.

 

V.

 

IT IS FURTHER ORDERED that:

 

A.           Within five (5) Days of
the Acquisition, Respondents shall submit to the Commission a letter certifying
the date on which the Acquisition occurred.

 

B.             Within five (5) Days
of the occurrence of each of the following events, Respondent shall notify the
Commission, the Commission-approved Acquirer, and the Interim Monitor (if any
has been appointed) in writing of the occurrence of such event:

 

1.               the following
events related to an Application related to OVF:

 

a.               filing of an
Application;

 

b.              issuance of  an Approvable Letter; and

 

c.               issuance of an
Approval Letter; and

 

24

 

2.               the following events
related to an Application seeking pediatric exclusivity related to Oral Opioid
Fentanyl:

 

a.               receipt by
Respondents of a request from the FDA to submit a pediatric study to the FDA;

 

b.              submission by the
Respondents to the FDA of the protocol related to the pediatric study;

 

c.               submission by the
Respondents of the pediatric study to the FDA; and

 

d.              receipt by
Respondents of grant or denial of Pediatric Exclusivity from the FDA.

 

3.               the following
events related to an Application seeking approval of a Substantially Sugar-Free
Formulation(s) of Oral Opioid Fentanyl:

 

a.               filing of an
Application;

 

b.              issuance of an
Approvable Letter;

 

c.               issuance of a Not
Approvable Letter; and

 

d.              issuance of an
Approval Letter.

 

C.              Within thirty (30) Days after the date this
Order becomes final, and every sixty (60) Days thereafter until Respondents
have fully complied with Paragraphs II.A. (i.e.
has granted, licensed, delivered or otherwise conveyed all relevant assets to
the Commission-approved Acquirer in a manner that fully satisfies the
requirements of the Order), II.B., II.D., and all its responsibilities to
render transitional services to the Commission-approved Acquirer as provided in
the Remedial Agreement(s), Respondents shall submit to the Commission a verified
written report setting forth in detail the manner and form in which they
intends to comply, are complying, and have complied with this Order.  Respondents shall submit at the same time a
copy of its report concerning compliance with this Order to the Interim
Monitor, if any Interim Monitor has been appointed.  Respondents shall include in their reports,
among other things that are required from time to time:

 

1.               a full description
of the efforts being made to comply with the relevant Paragraphs of the Order;

 

2.               if Barr is rejected
by the Commission pursuant to Paragraph II.A., a description of all substantive
contacts or negotiations related to the licensing of the Oral Opioid Fentanyl
Assets and the identity of all parties contacted and copies of all written
communications

 

25

 

to and from such parties, all
internal memoranda, and all reports and recommendations concerning completing
its obligations to license the Oral Opioid Fentanyl Assets;

 

3.               a detailed plan to
deliver all Confidential Business Information required to be delivered to the
Commission-approved Acquirer pursuant to Paragraph II.B, and agreed upon by the
Commission-approved Acquirer and the Interim Monitor (if applicable) and any
updates or changes to such plan;

 

4.               a description of
all Confidential Business Information delivered to the Commission-approved
Acquirer, including the type of information delivered, method of delivery, and
date(s) of delivery;

 

5.               a description of
the Confidential Business Information currently remaining to be delivered and a
projected date(s) of delivery; and

 

6.               a description of
all technical assistance provided to the Commission-approved Acquirer during
the reporting period.

 

D.            One (1) year after the
date this Order becomes final, annually for the next nine (9) years on the
anniversary of the date this Order becomes final, and at other times as the
Commission may require, Respondents shall file a verified written report with
the Commission setting forth in detail the manner and form in which they have
complied and are complying with this Order.

 

VI.

 

IT IS FURTHER ORDERED
that Respondents shall notify the Commission at least thirty (30) Days prior to
any proposed (1) dissolution of the Respondents, (2) acquisition, merger or
consolidation of Respondents, or (3) any other change in the Respondents that
may affect compliance obligations arising out of the order, including, but not
limited to, assignment, the creation or dissolution of subsidiaries, or any
other change in Respondents.

 

VII.

 

IT IS FURTHER ORDERED
that, for the purpose of determining or securing compliance with this Order,
and subject to any legally recognized privilege, and upon written request with
reasonable notice to Respondents made to their principal United States offices,
Respondents shall permit any duly authorized representative of the Commission:

 

A.           Access, during office
hours of Respondents and in the presence of counsel, to all facilities and
access to inspect and copy all books, ledgers, accounts, correspondence,
memoranda and all other records and documents in the possession or under the
control of Respondents related to compliance with this Order; and

 

26

 

B.             Upon five (5) Days’
notice to Respondents and without restraint or interference from Respondents,
to interview officers, directors, or employees of Respondents, who may have
counsel present, regarding such matters.

 

VII.

 

IT IS FURTHER ORDERED
that this Order shall terminate twenty (20) years from the date on which the
Order becomes final.

 

By the Commission.

 

 

	
   

  	
  Donald S.
  Clark

  
	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  SEAL

  	
   

  
	
  ISSUED:

  	
   

  

 

27

 

APPENDIX I

NON-PUBLIC

ORAL OPIOID FENTANYL LICENSE AND SUPPLY
AGREEMENTEXHIBIT 10.3(a)

 

2000 EQUITY COMPENSATION PLAN

EMPLOYEE

NON-QUALIFIED STOCK OPTION

GRANT AGREEMENT

 

THIS AGREEMENT is made as of the Grant Date by and between Cephalon,
Inc. (“Company”) and Grantee.

 

RECITALS

 

A.            The
Grantee has been granted an option to purchase shares of the common stock of
the Company under the Cephalon, Inc. 2000 Equity Compensation Plan for
Employees and Key Advisors (“Plan”).

 

B.            The
option granted to the Grantee is intended to be a non-qualified stock option (“NQSO”),
which does not satisfy Section 422 of the Internal Revenue Code of 1986, as
amended.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.             Grant of
Option.

 

Subject to the terms and conditions set forth in this
Agreement and the Plan, the Company hereby grants to the Grantee, as of the
Grant Date, a NQSO to purchase the number of shares of the common stock of the
Company (“Option Shares”) specified on the attached Notice of Grant of Stock
Options (“Notice”), at the exercise price per share set forth in the Notice.

 

This option shall become null and void unless the
Grantee accepts this Agreement by executing this Agreement in the space
provided on the last page of the Agreement and returning it to the Company.

 

2.             Option
Term.

 

Unless sooner terminated in accordance with the
provisions of the Plan or this Agreement, this option will terminate at the
close of business on the date specified on the Notice, but in no event shall
the option terminate later than ten years from the Grant Date, (“Expiration
Date”).

 

1

 

3.             Option
Nontransferable.

 

This option is not transferable or assignable by the
Grantee other than by will or by the laws of descent and distribution, and
during the lifetime of the Grantee, this option is exercisable only by the
Grantee.

 

4.             Dates of
Exercise.

 

The option will become exercisable with respect to the
Option Shares covered by the option according to the following four year
exercisability schedule, provided that the Grantee is employed by the Company
on the applicable dates:

 

	
  Date

  	
   

  	
  Option Shares Becoming Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1st anniversary
  of Grant Date

  	
   

  	
  25

  	
  %

  
	
  2nd anniversary
  of Grant Date

  	
   

  	
  25

  	
  %

  
	
  3rd anniversary
  of Grant Date

  	
   

  	
  25

  	
  %

  
	
  4th anniversary
  of Grant Date

  	
   

  	
  25

  	
  %

  

 

Exercisable installments may be exercised in whole or
in part, and, to the extent not exercised, will accumulate and be exercisable
at any time on or before the Expiration Date, unless the option terminates
earlier in accordance with the terms of this Agreement or the Plan.  The exercisability of the option is
cumulative, but shall not exceed 100% of the Option Shares.  If the foregoing schedule would produce
fractional Option Shares, the number of Option Shares for which the option
becomes exercisable shall be rounded down to the nearest whole Option Share.

 

5.             Termination
of Employment.

 

(a)           Should the
Grantee cease to be an employee of the Company or one of its subsidiaries
(other than by reason of death, permanent disability or termination for cause),
this option will, solely to the extent that it is exercisable immediately prior
to such cessation of employee status, remain exercisable during the three-month
period following the date of such cessation of employee status.  If, at the time of the Grantee’s termination,
he is unable to sell Option Shares (i) without liability under Section 16(b) of
the Securities Exchange Act of 1934, as amended (or any successor provision) (“Section
16(b)”) or (ii) because he is in possession of material

 

2

 

non-public information about the Company (“Non-public
Information”), then the three-month period referred to in the preceding
sentence shall not commence until the later of the first day that the Grantee
may sell Option Shares without liability under Section 16(b) or the first day
that the Grantee is not in possession of Non-public Information; provided,
however, that in no event will this option be exercisable at any time after the
Expiration Date.

 

(b)           Should the
Grantee become permanently disabled and cease by reason thereof to be an
employee of the Company or one of its subsidiaries, this option will, solely to
the extent that it is exercisable immediately prior to such cessation of
employee status, remain exercisable during the one-year period following the date
of such cessation of employee status; provided, however, in no event will this
option be exercisable at any time after the Expiration Date.  The Grantee will be deemed to be permanently
disabled if the Grantee is, by reason of any medically determinable physical or
mental impairment expected to result in death or to be of continuous duration
of not less than one year, unable to engage in any substantial gainful
employment.

 

(c)           Should the
Grantee die while still an employee of the Company or one of its subsidiaries,
this stock option, to the extent it is at the time outstanding under this Plan,
shall automatically accelerate and become fully exercisable as to all Option
Shares subject to this option and shall remain exercisable until the Expiration
Date or earlier surrender of this option. 
In addition, if the Grantee dies during the three-month period referred
to in subparagraph (a) or during the one-year period referred to in
subparagraph (b), the option shall remain exercisable until the Expiration Date
or earlier surrender of this option.  The
executors or administrators of estate or heirs or legatees (as the case may be)
will have the right to exercise this option, during the remainder of the option
term.

 

(d)           Should the
Grantee’s employment be terminated for cause (including, but not limited to,
any act of dishonesty, unethical conduct, willful misconduct, fraud or
embezzlement, or any unauthorized disclosure of confidential information or
trade secrets), this option will immediately terminate and cease to be
exercisable when notice of termination of employment is given.

 

3

 

6.             Privilege
of Stock Ownership.

 

The holder of this option will have none of the rights
of a stockholder with respect to the Option Shares until such individual has
exercised the option and has been issued a stock certificate for the Option
Shares.

 

7.             Manner of
Exercising Option.

 

In order to exercise this option with respect to all
or any part of the Option Shares for which this option is at the time
exercisable, the Grantee (or in the case of exercise after the Grantee’s death,
the Grantee’s executor, administrator, heir or legatee, as the case may be)
must take the following actions:

 

(a)         Execute
and deliver to the Senior Vice President of Human Resources of the Company a
stock purchase agreement in substantially the form of Exhibit A to this
Agreement (the “Purchase Agreement”), specifying the number of Option Shares
with respect to which the option is being exercised;

 

(b)         Pay
the aggregate exercise price for the Option Shares in one or more of the
following alternative forms:  (i) full
payment, in cash or by check payable to the Company’s order, in the amount of
the exercise price for the Option Shares being purchased; (ii) full payment in
shares of common stock of the Company held for at least six months and having
an aggregate fair market value on the day of exercise (as determined under the
terms of the Plan) equal to the exercise price for the Option Shares being
purchased; (iii) a combination of shares of common stock of the Company held
for at least six months and valued at fair market value on the day of exercise
(as determined under the terms of the Plan) and cash or check payable to the
Company’s order, equal, in the aggregate, to the exercise price for the Option
Shares being purchased; or (iv) to the extent permitted by applicable law, such
other method as the Committee may approve; and

 

(c)         Furnish
the Company with appropriate documentation that the person or persons exercising
the option, if other than the Grantee, have the right to exercise this option.

 

4

 

8.             Certain
Company Transactions.

 

(a)           “Change
of Control” shall mean a change in ownership or control of the Company effected
through either of the following transactions: (i) the direct or indirect
acquisition by any person or related group of persons (other than the Company
or a person that directly or indirectly controls, is controlled by, or is under
common control with, the Company) of beneficial ownership (within the meaning
of Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of securities
possessing more than thirty percent (30%) of the combined voting power of the
Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s stockholders which the Board of Directors (“Board”)
does not recommend such stockholders to accept; or (ii)  a change in the composition of the Board over
a period of twenty-four (24) months or less such that a majority of the Board
members ceases, by reason of one or more contested elections for Board
membership, to be comprised of individuals who either: (1) have been Board
members continuously since the beginning of such period, or (2) have been
elected or nominated for election as Board members during such period by at
least a majority of the Board members described in clause (1) who were still in
office at the time such election or nomination was approved by the Board.

 

(b)           “Corporate
Transaction”     shall mean either of the
following stockholder-approved transactions to which the Company is a
party:  (i) a merger or consolidation in
which securities possessing more than fifty percent (50%) of the combined
voting power of the Company’s outstanding securities are transferred to a
person or persons different from the persons holding those securities
immediately prior to such transaction, or (ii) the sale, transfer or other
disposition of more than 75% of the Company’s assets in a single or related
series of transactions.

 

(c)           “Involuntary Termination” shall mean the
termination of the service of the Grantee which occurs by reason of (i) such
individual’s involuntary dismissal or discharge by the Company or the successor
thereto for reasons other than Misconduct (as defined below), or (ii) such
individual’s voluntary resignation, in either case following: (a) a change in
the Grantee’s position with the Company or the successor thereto which
materially reduces the Grantee’s level of responsibility, (b) a reduction in
the Grantee’s level of

 

5

 

compensation (including base salary, significant fringe benefits or any
non-discretionary and objective-standard incentive payment or bonus award) by
more than ten percent (10%) in the aggregate or (c) a relocation of the Grantee’s
place of employment by more than fifty (50) miles, only if such change,
reduction or relocation is effected by the Company or the successor thereto
without the Grantee’s consent.  For purposes
of this definition, the term “Misconduct” means the commission of any
act of fraud, embezzlement or dishonesty by the Grantee, any unauthorized use
or disclosure by such individual of confidential information or trade secrets
of the Company or its successor, or any other intentional misconduct by such
individual adversely affecting the business or affairs of the Company or its
successor in a material manner.  The
foregoing definition shall not be deemed to be inclusive of all the acts or
omissions which the Company or its successor may consider as grounds for the
dismissal or discharge of the Grantee.

 

(d)           Except as
described below, in the event of any Corporate Transaction, this option, to the
extent it is at the time outstanding under the Plan, shall automatically
accelerate so that this option shall, immediately prior to the specified
effective date for such Corporate Transaction, become fully exercisable with
respect to the total number of Option Shares subject to the option and may be
exercised for all or any portion of such shares as fully-exercisable
shares.  However, the exercisability
shall not so accelerate if and to the extent: 
(i) such option is, in connection with such Corporate Transaction,
either to be assumed by the successor corporation or parent thereof or replaced
with a stock option for shares of the capital stock of the successor
corporation or parent thereof having comparable value and  terms, (ii) such option is to be replaced
with a cash incentive option or award of the successor corporation which
preserves the option spread value existing at the time of such Corporate
Transaction and provides for subsequent payout in accordance with the same
terms and conditions of the option, (iii) such option is to be replaced by a
grant under another incentive program which the Committee determines is
reasonably equivalent in value, or (iv) the acceleration of the exercisability
period under the option is subject to other limitations imposed by the
Committee at the time of the Grant.  The
determination of comparability under clauses (i), (ii) or (iii) above shall be
made by the Committee, and its determination shall be final, binding and
conclusive.

 

6

 

(e)           Upon the
Grantee’s cessation of service by reason of an Involuntary Termination within
thirty-six (36) months after a Corporate Transaction in which the Grantee’s
outstanding options are assumed or replaced pursuant to clauses (d) (i), (ii)
or (iii) above, each such option under clause (i) shall automatically
accelerate and become fully exercisable and all restrictions applicable to such
grants shall lapse, with respect to the total number of shares of stock at the
time subject to such option and the cash incentive program under clause (ii) or
other incentive program under clause (iii) shall become fully vested.  In addition, upon the Grantee’s cessation of
service by reason of an Involuntary Termination within 36 months after a Change
of Control, the option will automatically accelerate and become fully
exercisable with respect to the total number of Option Shares at the time
subject to the option.  The option as so
accelerated shall remain exercisable until the earlier of the Expiration
Date or the expiration of the one (1)-year period measured from the date of
such Involuntary Termination.

 

(f)            Immediately
following the consummation of a Corporate Transaction, this option shall
terminate and cease to remain outstanding, except to the extent assumed by the
successor corporation or its parent company.

 

9.             Compliance
with Laws and Regulations.

 

(a)           The
exercise of this option and the issuance of Option Shares upon such exercise is
subject to compliance by the Company and the Grantee with all applicable
requirements of law relating thereto and with all applicable regulations of any
stock exchange on which shares of the Company’s common stock may be listed at
the time of such exercise and issuance.

 

(b)           In
connection with the exercise of this option, the Grantee will execute and
deliver to the Company such representations in writing as may be requested by
the Company so that it may comply with the applicable requirements of federal
and state securities laws.

 

10.           Liability
of Company.

 

(a)           If the
Option Shares exceed, as of the Grant Date, the number of shares that may
without shareholder approval be issued under the Plan, then this option will be
void with respect to such excess shares unless

 

7

 

shareholder approval of an amendment sufficiently
increasing the number of shares issuable under the Plan is obtained in
accordance with the provisions of the Plan.

 

(b)           The
inability of the Company to obtain approval from any regulatory body having
authority deemed by the Company to be necessary to the lawful issuance and sale
of any common stock pursuant to this option will relieve the Company of any
liability with respect to the non-issuance or sale of the common stock as to
which such approval is not obtained.

 

11.           No
Employment Contract.

 

Nothing in this Agreement, the Notice or in the Plan
confers upon the Grantee any right to continue in the employ of the Company (or
any subsidiary) or interferes with or restricts in any way the rights of the
Company (or any subsidiary), which are hereby expressly reserved, to discharge
the Grantee at any time for any reason or no reason, with or without
cause.  Except to the extent the terms of
any employment contract between the Company (or any subsidiary) and the Grantee
may expressly provide otherwise, neither the Company nor any of its
subsidiaries is under any obligation to continue the employment of the Grantee
for any period of specified duration.

 

12.           Notices.

 

Any notice required to be given or delivered to the
Company under the terms of this Agreement will be in writing and addressed to
the Company in care of its Senior Vice President, Human Resources at its
corporate office at 145 Brandywine Parkway, West Chester, Pennsylvania,
19380.  Any notice required to be given
or delivered to the Grantee will be in writing and addressed to the Grantee at
the address provided on the notice of grant or such other address provided in
writing by the Grantee to the Company. 
All notices will be deemed to have been given or delivered upon personal
delivery or upon deposit in the U.S. mail, postage prepaid and properly
addressed to the party to be notified.

 

8

 

13.           Construction.

 

This Agreement, the
Notice and the option evidenced hereby are made and granted pursuant to the
Plan and are in all respects limited by and subject to the express terms and
provisions of the Plan.

 

Capitalized terms not
otherwise defined herein that are defined in the Plan shall have the meaning
specified in the Plan.  All decisions of
the Committee with respect to any question or issue arising under the Plan or
this Agreement will be conclusive and binding on all persons having an interest
in this option.

 

14.           Governing
Law.

 

The interpretation, performance and enforcement of
this Agreement will be governed by the laws of the Commonwealth of
Pennsylvania.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

9

 

IN WITNESS WHEREOF, Cephalon  has
caused this Agreement to be executed in duplicate on its behalf by its duly
authorized officer and the Grantee has also executed this Agreement in
duplicate.

 

	
   

  	
  For Cephalon, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  

 

I hereby accept the option described in this Agreement and the Notice,
and I agree to be bound by the terms of the Plan, this Agreement and the
Notice.  I hereby further agree that all
of the decisions and determinations of the Committee shall be final and
binding.

 

	
   

  	
  Grantee:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]