Document:

EXHIBIT 4.6

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [***] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

UNITED STATES TAX MATTERS AGREEMENT

 

BY AND BETWEEN

 

RECKITT BENCKISER GROUP PLC

 

AND

 

INDIVIOR PLC

 

DATED AS OF 23 DECEMBER 2014

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   DEFINITIONS
    	
2
    
	
 
    	
 
    
	
Section 1.01
    	
Definition of Terms
    	
2
    
	
Section 1.02
    	
General Interpretive   Principles
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE II SCOPE
    	
 
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE III   PAYMENT OF TAXES
    	
8
    
	
 
    	
 
    
	
Section 3.01
    	
Income Taxes
    	
8
    
	
Section 3.02
    	
Transaction Taxes
    	
8
    
	
Section 3.03
    	
Other Taxes
    	
9
    
	
Section 3.04
    	
Refunds
    	
10
    
	
Section 3.05
    	
Carrybacks
    	
10
    
	
Section 3.06
    	
Transfer Pricing
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   PREPARATION AND FILING OF TAX RETURNS
    	
11
    
	
 
    	
 
    
	
Section 4.01
    	
Parent Responsibility
    	
11
    
	
Section 4.02
    	
RB Pharma   Responsibility
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE V   TAX-FREE STATUS OF DISTRIBUTION
    	
12
    
	
 
    	
 
    
	
Section 5.01
    	
Representations
    	
12
    
	
Section 5.02
    	
Covenants
    	
12
    
	
Section 5.03
    	
Procedures Regarding   Opinions and Rulings
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   TAX CONTESTS; INDEMNIFICATION; COOPERATION
    	
15
    
	
 
    	
 
    
	
Section 6.01
    	
Notice
    	
15
    
	
Section 6.02
    	
Control of Tax Contests
    	
15
    
	
Section 6.03
    	
Indemnification   Payments
    	
16
    
	
Section 6.04
    	
Interest on Late   Payments
    	
17
    
	
Section 6.05
    	
Treatment of Payments
    	
17
    
	
Section 6.06
    	
Expenses
    	
17
    
	
Section 6.07
    	
Cooperation
    	
17
    
	
Section 6.08
    	
Confidentiality
    	
18
    
	
Section 6.09
    	
Retention of Tax   Records
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   RESOLUTION OF DISPUTES
    	
19
    
	
 
    	
 
    
	
Section 7.01
    	
Tax Disputes
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   MISCELLANEOUS PROVISIONS
    	
19
    
	
 
    	
 
    
	
Section 8.01
    	
Disposition of RB   Pharma Subsidiaries
    	
19
    

 

i

 

	
Section 8.02
    	
Complete Agreement;   Representations
    	
19
    
	
Section 8.03
    	
Costs and Expenses
    	
20
    
	
Section 8.04
    	
Governing Law
    	
20
    
	
Section 8.05
    	
Notices
    	
20
    
	
Section 8.06
    	
Amendment, Modification   or Waiver
    	
21
    
	
Section 8.07
    	
No Assignment: Binding   Effect; No Third Party Beneficiaries
    	
21
    
	
Section 8.08
    	
Counterparts
    	
21
    
	
Section 8.09
    	
Specific Performance
    	
21
    
	
Section 8.10
    	
New York Forum
    	
22
    
	
Section 8.11
    	
WAIVER OF JURY TRIAL
    	
22
    
	
Section 8.12
    	
Interpretation:   Conflict With Other Agreements
    	
22
    
	
Section 8.13
    	
Severability
    	
23
    
	
Section 8.14
    	
Survival
    	
23
    
	
Section 8.15
    	
Parent and RB Pharma   Obligations
    	
23
    

 

ii

 

UNITED STATES TAX MATTERS AGREEMENT dated as of 23 December 2014 this “Agreement”) by and between Reckitt Benckiser Group plc a corporation organized under the laws of England and Wales (“Parent”) and Indivior PLC, a corporation organized under the laws of England and Wales (“RB Pharma” and, together with Parent, each, a “Party” and collectively, the “Parties”).

 

WHEREAS, as of the date of this Agreement, the affiliated group of Parent includes RBP Global Holdings Limited (“RBP Global”), a corporation organized under the laws of England and Wales whose sole shareholder is Parent, and its Subsidiaries;

 

WHEREAS, Parent has effected the internal reorganization of its pharmaceutical business (which is referred to as the “Internal Reorganization,” and the steps and related transactions of which are described in Exhibit A-1 (as amended from time to time));

 

WHEREAS, the Parties believe that the Internal Reorganization qualifies as a “reorganization” under Section 368(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), with respect to which no gain or loss is recognized under Sections 361 and 355 of the Code;

 

WHEREAS, the Parties have entered into the Demerger Agreement, pursuant to which Parent will declare an in-specie dividend to the shareholders of Parent to be satisfied by Parent transferring its entire shareholding in RBP Global to RB Pharma in consideration for RB Pharma issuing common stock to the shareholders of Parent in the same proportion as they hold shares in Parent (which is referred to as the “Demerger” and the steps and related transactions of which are described in Exhibit A-2 (as amended from time to time));

 

WHEREAS, the Demerger will create two distinct groups of entities with different strategic, operational and economic characteristics, and with separate management teams, which the Parties believe will make the RB Pharma Business better placed to create value and pursue avenues for growth whilst allowing Parent to focus on its core businesses in the health, hygiene and home sectors;

 

WHEREAS, the Parties intend the Demerger to qualify as a “reorganization” under Section 368(a) of the Code, with respect to which no gain or loss is recognized under Sections 361 and 355 of the Code;

 

WHEREAS, the Parties will enter into an agreement to allocate the responsibilities, liabilities and benefits of transactions relating to all Taxes that are imposed (or may be imposed) by Governmental Authorities outside of the United States on, prior to and after the date on which the Demerger occurs (the “Demerger Date”) and to provide for and address certain other non-U.S. Tax matters (the “Demerger Tax Deed”) as of the date hereof; and

 

WHEREAS, the Parties desire to allocate the responsibilities, liabilities and benefits of transactions relating to all Taxes that are imposed (or may be imposed) by Governmental Authorities within the United States on, prior to and after the Demerger Date and to provide for and address certain other U.S. Tax matters.

 

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NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties (each on behalf of itself and each of its Affiliates) hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.01                             Definition of Terms. The following terms shall have the following meanings (such meanings to apply equally to both the singular and the plural forms of the terms defined). All Section and Exhibit references are to this Agreement unless otherwise stated.

 

“Action” means any claim, demand, action, cause of action, suit, countersuit, arbitration, litigation, inquiry, proceeding or investigation by or before any Governmental Authority or any arbitration or mediation tribunal or authority.

 

“Active Trade or Business” means the active conduct of the trade or business by the members of RB Pharma Group (determined in accordance with Section 355(b) of the Code) that is relied upon to satisfy the active trade or business requirement of Section 355(b) of the Code with respect to the Internal Reorganization or the Demerger.

 

“Adjustment Request” means any formal or informal claim or request filed with any Governmental Authority, for any Refund, underpayment or overpayment of Tax or any change in available Tax Attributes.

 

“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person; provided, however, that for purposes of this Agreement, no member of either Group shall be deemed to be an Affiliate of any member of the other Group. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise.

 

“Agreement” has the meaning set forth in the recitals.

 

“Balance Sheet” has the meaning set forth in Section 3.0l(a).

 

“Code” has the meaning set forth in the recitals.

 

“Demerger” has the meaning set forth in the recitals.

 

“Demerger Agreement” means the demerger agreement entered into between Parent and RB Pharma dated November 17, 2014.

 

“Demerger Date” has the meaning set forth in the recitals.

 

“Demerging Group” means RBP Global and each Person that will be a direct or indirect Subsidiary of RBP Global immediately prior to the Demerger.

 

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“Demerger Tax Deed” has the meaning set forth in the recitals.

 

“Demerger Transactions” means the Demerger and any other transfer of cash and other assets (whether by contribution, sale or otherwise) between any member of Parent Group and any member of RB Pharma Group in connection with the Demerger.

 

“Final Determination” means the final resolution of liability for any Tax for any taxable period by or as a result of (i) a final and unappealable decision, judgment, decree or other order by any court of competent jurisdiction; (ii) a final settlement with the IRS or any other Taxing Authority, a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable arrangement under the laws of another jurisdiction; (iii) any allowance of a Refund in respect of an overpayment of Tax, but only after the expiration of all periods during which such amount may be recovered by the Taxing Authority imposing the Tax; (iv) a final settlement resulting from a competent authority determination; or (v) any other final disposition, including by mutual agreement of the parties or by reason of the expiration of the applicable statute of limitations or period for the filing of claims for Refunds, amended Tax Returns or appeals from adverse determinations.

 

“first party” has the meaning set forth in Section 3.06.

 

“Governmental Authority” means any federal, state, local and foreign court, government, department, commission, board, bureau or agency, or any other regulatory, self-regulatory, administrative or governmental organization or authority.

 

“Group” means Parent Group and/or RB Pharma Group, as the context requires.

 

“Income Taxes” means all income or franchise Taxes or other Taxes based on income or net worth.

 

“Indemnifying Party” has the meaning set forth in Section 6.01.

 

“Indemnitee” has the meaning set forth in Section 6.01.

 

“Internal Reorganization” has the meaning set forth in the recitals.

 

“Internal Reorganization Transaction” means the Internal Reorganization and any other transfer of cash and other assets (whether by contribution, sale or otherwise) between any member of Parent Group and any member of RB Pharma Group or between any member of RB Pharma Group, in each case, in connection with the Internal Reorganization.

 

“IRS” means the United States Internal Revenue Service.

 

“Joint Return” means any Return that includes both a member of Parent Group and a member of RB Pharma Group.

 

“Law” means any applicable foreign, federal, national, state, provincial or local law (including common law), statute, ordinance, rule, regulation, code or other requirement enacted, promulgated, issued or entered into, or act taken, by a Governmental Authority.

 

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“Other Taxes” means all Taxes other than Income Taxes, including (but not limited to) transfer, sales, use, payroll, property, and unemployment Taxes.

 

“Parent” has the meaning set forth in the recitals.

 

“Parent Business” means all businesses and operations of Parent Group, other than the RB Pharma Business.

 

“Parent Group” means (i) Parent and each Person that will be a direct or indirect Subsidiary of Parent immediately after the Demerger and (ii) each Person that is or becomes a member of Parent Group after the Demerger.

 

“Parent Separate Return” means a Tax Return of any member of Parent Group (including any consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of RB Pharma Group.

 

“Person” means any natural person, corporation, general or limited partnership, limited liability company or partnership, joint stock company, joint venture, association, trust, bank, trust company, land trust, business trust or other organization, whether or not a legal entity, and any Governmental Authority.

 

“Post-Demerger Tax Period” means any taxable period (or portion thereof) beginning after the Demerger Date.

 

“Pre-Demerger Tax Period” means any taxable period (or portion thereof) ending on or before the Demerger Date.

 

“Proposed Acquisition Transaction” has the meaning set forth in Section 5.02(b)(i).

 

“RB Pharma” has the meaning set forth in the recitals.

 

“RB Pharma Asset” means any property, business, right in Business Information (as defined in the Demerger Agreement) or other asset (tangible or intangible and including rights pursuant to any contracts, arrangements and undertakings including any domain names and any Intellectual Property Rights (as defined in the Demerger Agreement), but excluding, for the avoidance of doubt, any RB Domain Names (as defined in the Demerger Agreement) or RB Trade Marks (as defined in the Demerger Agreement)), which were either used prior to the Demerger exclusively by any member of the RB Pharma Group in the RB Pharma Business or properly should be regarded as part of the RB Pharma Business.

 

“RB Pharma Business” means the pharmaceuticals business which, prior to the effective time of the Demerger, was carried on by Parent and its Subsidiaries including members of the Demerging Group, and which, after the effective time of the Demerger, will be carried on by one or more members of RB Pharma Group.

 

“RB Pharma Group” means (i) RB Pharma, (ii) the Demerging Group and (iii) each Person that is or becomes a member of RB Pharma Group after the Demerger.

 

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“RB Pharma Separate Return” means a Tax Return of any member of RB Pharma Group (including any consolidated, combined, affiliated or unitary Return) that does not include, for all or any portion of the relevant taxable period, any member of Parent Group.

 

“Refund” means any cash refund of Taxes or reduction of Taxes by means of credit, deduction, offset or otherwise, and all interest received with respect thereto.

 

“Reportable Transaction” means a reportable or listed transaction as defined in Section 6011 of the Code or the Treasury Regulations promulgated thereunder, other than a loss transaction as defined in Treasury Regulations Section 1.6011-4(b)(5).

 

“Restricted Period” means the period beginning on the date of this Agreement and ending on, and including, the last day of the two-year period following the Demerger Date.

 

“Ruling” means all private letter rulings granted by theirs or any other Taxing Authority relating to the Transactions (whether granted prior to, on or after the date hereof), requests for such rulings, including all supplemental ruling requests and information submissions, and any exhibit to any of the foregoing.

 

“Satisfactory Guidance” means, at the election of RB Pharma, either a ruling from theirs or an Unqualified Tax Opinion in either case reasonably satisfactory to Parent in both form and substance, including with respect to any underlying assumptions or representations. Satisfactory Guidance shall not include an Unqualified Tax Opinion with respect to which Parent’s counsel, of recognized national standing, provides an opinion to Parent that the conclusions in such Unqualified Tax Opinion are not free from doubt. For the avoidance of doubt, this definition, and its use in this Agreement are intended to allow Parent to prevent RB Pharma from taking the action that is the subject of a ruling from the IRS or an Unqualified Tax Opinion, if Parent determines in good faith that there is any Tax risk to it from such action based upon either (1) any uncertainty concerning any underlying assumptions or representations in such ruling or opinion or (2) any legal uncertainty referred to in advice it receives from its counsel.

 

“second party” has the meaning set forth in Section 3.06.

 

“Section 355 Entities” means the entities listed on Exhibit B.

 

“Separate Return” means (i) in the case of RB Pharma Group, a RB Pharma Separate Return and (ii) in the case of Parent Group, a Parent Separate Return.

 

“Straddle Period” means any taxable period beginning on or before the Demerger Date and ending after the Demerger Date.

 

“Subsidiary” means, with respect to any Person, any other Person of which such first Person (either alone or through or together with any other Subsidiary of such first Person) owns, directly or indirectly, a majority of the stock or other equity interests the holders of which are generally entitled to vote for the election of the board of directors or other governing body of such other Person.

 

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“Tax Advisor” means a Tax counsel or other Tax advisor that is, with respect to any opinion issued after the date hereof, is of recognized national standing reasonably acceptable to both Parties.

 

“Tax Attributes” means earnings and profits, Tax basis, net operating and capital loss carryovers or carrybacks, alternative minimum Tax credit carryovers or carrybacks, general business credit carryovers or carrybacks, Tax credits or credits against Tax, disqualified interest and excess limitation carryovers or carrybacks, overall domestic losses, overall foreign losses, research and experimentation credit base periods, all other items that are determined or computed on an affiliated group basis (as defined in Section 1504(a) of the Code determined without regard to the exclusion contained in Section 1504(b )(3) of the Code) or other consolidated, combined or unitary basis, and any other item of loss, deduction, or credit that could reduce a Tax liability.

 

“Tax Contest” means an audit, review, examination or any other administrative or judicial proceeding with the purpose or effect of determining or redetermining Taxes (including any administrative or judicial review of any Adjustment Request).

 

“Tax Dispute” means any dispute arising in connection with this Agreement.

 

“Taxes” means all forms of taxation or duties of the United States (including for this purpose the District of Columbia and any State or local jurisdiction 6 thereof or therein) only imposed, or required to be collected or withheld, including charges, together with any related interest, penalties or other additional amounts. For the avoidance of doubt, the term “Taxes” does not include amounts to be paid to any Governmental Authority pursuant to escheat law or to any Governmental Authority in any jurisdiction outside of the United States.

 

“Tax-Free Status” means (i) the qualification of the Internal Reorganization (A) as a “reorganization” described in Sections 355(a) and 368(a)(l)(D) of the Code, in which neither Parent Group nor RB Pharma Group recognized any income or gain for U.S. federal Income Tax purposes pursuant to Sections 355, 361 and 1032 of the Code, except to the extent described in Exhibit A-1, and (B) for tax-free treatment under comparable provisions of U.S. state and local law or (ii) the qualification of Demerger (A) as a “reorganization” described in Sections 355(a) and 368(a)(l)(D) of the Code, in which stock of the RB Pharma stock issued to the shareholders of Parent is “qualified property” for purposes of Sections 355(c) and 36l(c) of the Code and in which none of Parent, RB Pharma, RBP Global Holdings Limited and the shareholders of Parent recognize income or gain for U.S. federal Income Tax purposes pursuant to Sections 355, 361 and 1032 of the Code and (B) for tax-free treatment under comparable provisions of U.S. state and local law. For the avoidance of doubt, neither recognition of income or gain by Parent Group or RB Pharma Group that relates to items described in Sections 3.03(c)(i) nor recognition of gain by shareholders of Parent upon the Demerger under Section 367(a) of the Code shall cause the Internal Reorganization or the Demerger to fail to achieve Tax-Free Status.

 

“Taxing Authority” means any Governmental Authority imposing Taxes.

 

“Tax Item” means any item of income, gain, loss, deduction, credit, recapture of credit, or any other item (including the basis or adjusted basis of property) which increases or decreases Income Taxes paid or payable in any taxable period.

 

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“Tax Opinions/Rulings” means (i) any Ruling and (ii) the opinions of Tax Advisors relating to the Transactions including those issued either at the time of the Internal Reorganization or the Demerger, as applicable, or to allow a Party to take actions otherwise prohibited under this Agreement.

 

“Tax Return” means any return, filing, report, questionnaire, information statement, claim for Refund, or other document required or permitted to be filed, including any amendments that may be filed, for any taxable period with any Taxing Authority.

 

“Transactions” means the Internal Reorganization Transactions and the Demerger Transactions.

 

“Transaction Taxes” means all (i) Taxes of any member of Parent Group or RB Pharma Group resulting from, or arising in connection with, the failure of the Internal Reorganization to have Tax-Free Status, (ii) Taxes of any member of Parent Group or RB Pharma Group resulting from, or arising in connection with, the failure of 7 the Demerger to have Tax-Free Status, (iii) Taxes of the type described in clause (i) or (ii) of any third party for which any member of Parent Group or RB Pharma Group is or becomes liable, and (iv) reasonable out of pocket legal, accounting and other advisory and court fees in connection with liability for Taxes described in clauses (i), (ii) or (iii).

 

“Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor that permits reliance by Parent. The Tax Advisor, in issuing its opinion, shall be permitted to rely on the validity and correctness, as of the date given, of any previously issued Tax Opinions/Rulings, unless such reliance would be unreasonable under the circumstances.

 

Section 1.02                             General Interpretive Principles. (i) Words in the singular shall include the plural and vice versa, and words of one gender shall include the other gender, in each case, as the context requires, (ii) the words “hereof,” “herein,” “hereunder,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement and not to any particular provision of this Agreement, and references to Article, Section, paragraph and Schedule are references to the Articles, Sections, paragraphs and Schedules to this Agreement unless otherwise specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless otherwise specified, (iv) any reference to any statute or Law shall be deemed to also refer to all rules and regulations promulgated thereunder, in each case as amended from time to time, unless the context otherwise requires and (v) references to a Person also refer to its predecessors and permitted successors and assigns.

 

ARTICLE II

 

SCOPE

 

This Agreement shall control the allocation of the responsibilities, liabilities and benefits relating to Taxes of the Parties and certain other Tax matters to the extent that such Taxes are or may be imposed by Governmental Authorities within the United States. The

 

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Demerger Tax Deed shall control all other Tax matters of the Parties or their Affiliates not addressed herein.

 

ARTICLE III

 

PAYMENT OF TAXES

 

Section 3.01                             Income Taxes. Except as provided in sections 3.02:

 

(a)                                 Parent shall be responsible for (i) all Income Taxes of Parent Group (or any member or Affiliate thereof) for all taxable periods and (ii) all Income Taxes imposed under Treasury Regulation Section 1.1502-6 or under any comparable or similar provision of state or local laws or regulations on any member or Affiliate of RB Pharma Group solely as a result of such member or Affiliate being a member of a consolidated, combined, or unitary group with Parent or any Affiliate of Parent during any Tax period, to the extent in excess of amounts provided for in respect of such Income Taxes on the condensed combined balance sheet of RB Pharma Group, including the notes thereto, as of the end of December 22nd, 2014 (the “Balance Sheet”).

 

(b)                                 RB Pharma shall be responsible for all Income Taxes of RB Pharma Group (or any member or Affiliate thereof) for all taxable periods that are not the responsibility of Parent pursuant to Section 3.0l(a).

 

(c)                                  For purposes of this section, if for any taxable period any member or members of RB Pharma Group is included in a consolidated, combined or unitary group with any member of Parent Group under Treasury Regulation §1.1502-1 et seq. or similar provision of state or local laws or regulations, the amount of tax liabilities of RB Pharma Group will be determined as if such member were a stand-alone taxpayer or such members were members of a separate consolidated, combined or unitary group, of which no member of Parent Group was a member, with appropriate adjustments to reflect items, if any, determined on a consolidated, combined or unitary group basis.

 

(d)                                 Notwithstanding the foregoing, RB Pharma shall be liable, and shall indemnify Parent, for any Income Taxes incurred by any member of Parent Group for any Pre-Demerger Tax Period that are relating to RB Pharma Business, and Parent shall be liable, and shall indemnify RB Pharma, for any Income Taxes incurred by any member of the Demerging Group for any Pre-De merger Tax Period that are relating to business other than RB Pharma Business.

 

Section 3.02                             Transaction Taxes.

 

(a)                                 RB Pharma shall be liable, and shall indemnify Parent Group, for any Transaction Taxes incurred by Parent Group members that are attributable to (i) any inaccurate statement or representation of fact or intent (or omission to state a material fact) in Section 5.01 that relates to RB Pharma Group or (ii) any act or omission by RB Pharma Group after the date of this Agreement inconsistent with the covenants set forth in this Agreement regardless of whether such act or omission may be covered by a Ruling from the IRS, an Unqualified Tax Opinion or a waiver.

 

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(b)                                 Parent shall be liable, and shall indemnify RB Pharma Group, for any Transaction Taxes incurred by RB Pharma Group members that are attributable to: (i) any inaccurate statement or representation of fact or intent (or omission to state a material fact) made (x) in Section 5.01 that relates to Parent Group or (y) before the date hereof and that formed the basis for any Tax Opinions/Rulings or (ii) any act or omission by Parent Group after the date of this Agreement inconsistent with the covenants set forth in this Agreement.

 

(c)                                  Liability for any Transaction Taxes described in both paragraphs (a) and (b) shall be shared by Parent and RB Pharma according to relative fault.

 

(d)                                 Parent shall be liable, and shall indemnify RB Pharma Group against all liabilities for Taxes imposed on any member of RB Pharma Group as a 9 result of (i) the failure of any of the Internal Restructuring Transactions to achieve Tax Free Status and (ii) the failure of the Demerger to achieve Tax-Free Status, in each case, if such Taxes were not attributable to any inaccurate statement or representation of fact or intent or any act or omission described in Section 3.02(a).

 

(e)                                  RB Pharma shall be liable, and shall indemnify Parent Group against all liabilities, for Transaction Taxes imposed on any member of the Parent Group as a result of any act or omission by any shareholder of RB Pharma during the Restricted Period.

 

Section 3.03                             Other Taxes.

 

(a)                                 Parent shall be responsible for all Other Taxes (1) attributable to Parent Group (or any member or Affiliate thereof) and to its business activities or (2) resulting from the Transactions, in each case, for all taxable periods.

 

(b)                                 RB Pharma shall be responsible for all Other Taxes attributable to RB Pharma Group (or any member or Affiliate thereof), to the RB Pharma Business or to any RB Pharma Asset, without duplication, for all taxable periods, including (1) all Other Taxes to the extent relating to, arising out of or resulting from any terminated, divested or discontinued business or operations of the RB Pharma Business; and (2) all Other Taxes to the extent relating to, arising out of or resulting from actions, inactions, omissions, conditions, facts or circumstances occurring or existing prior to, at or after the Demerger Date, in each case to the extent such Other Taxes relate to, arise out of or result from (w) any RB Pharma Asset, (x) the RB Pharma Business, (y) any service or function used by RB Pharma Group at shared locations or (z) any service or function performed by any member of Parent Group for (but not exclusively for) the RB Pharma Business; provided that such Other Taxes are not resulting from the Transactions.

 

(c)                                  In each case the responsibilities of Section 3.03(a) and 3.03(b) shall be consistent with the principles described below:

 

(i)                                     Transfer Taxes. Parent Group shall be liable, and shall indemnify RB Pharma Group, for any stamp, sales, use, gross receipts, value-added, real estate transfer or other transfer Taxes imposed in connection with the Transactions.

 

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(ii)                                  Property Taxes. Each legal entity shall be responsible for all liabilities for real and property Taxes imposed with respect to any of its assets for all taxable periods, provided, that if property is transferred between legal entities, the transferee shall assume any and all liabilities for real and personal property Taxes associated with such transferred property and will have sole responsibility for satisfying such liabilities.

 

(iii)                               Payroll Taxes. Each employer shall be responsible for all employment-related Taxes in respect of its employees for all taxable periods, provided that if an employee moves from one employer to another, the “new” employer 10 shall assume any and all employment-related Taxes attributable to such transferred employee and will have sole responsibility for satisfying such liabilities.

 

Section 3.04                             Refunds. Except as provided in Section 3.05:

 

(a)                                 Parent shall be entitled to all Refunds with respect to any Tax for which Parent is responsible under Sections 3.01, 3.02 or 3.03. RB Pharma shall be entitled to all Refunds with respect to any Tax for which RB Pharma is responsible under Sections 3.01, 3.02 or 3.03.

 

(b)                                 RB Pharma and Parent shall each forward to the other Party, or reimburse such other Party for, any Refunds received by the first Party and due to such other Party pursuant to this Section (net of all contingent fees and Taxes payable by the first Party and related to such Refund). Where a Refund is received in the form of a deduction from, or credit or other offset against other or future Tax liabilities, reimbursement with respect to such Refund shall be due in each case on the due date for payment of the Tax from or against which such Refund has been deducted, credited or otherwise offset.

 

(c)                                  If one Party reasonably so requests, the other Party (at the first Party’s expense) shall file for and pursue any Refund to which the first Party is entitled under this Section; provided that the other Party need not pursue any Refund on behalf of the first Party unless the first Party provides the other Party a certification by an appropriate officer of the first Party setting forth the first Party’s belief (together with supporting analysis) that the Tax treatment of the Tax Items on which the entitlement to such Refund is based is more likely than not correct, and is not a Tax Item arising from a Reportable Transaction.

 

(d)                                 If the other Party pays any amount to the first Party under this Section 3.04 and, as a result of a subsequent Final Determination, the first Party is not entitled to some or all of such amount, the other Party shall notify the first Party of the amount to be repaid to the other Party, and the first Party shall then repay such amount to the other Party, together with any interest, fines, additions to Tax, penalties or any additional amounts imposed by a Taxing Authority relating thereto.

 

Section 3.05                             Carrybacks.

 

(a)                                 If a Tax Return of RB Pharma Group (or any member thereof) for any Post-Demerger Period reflects any Tax Attribute, then RB Pharma Group (or its applicable member) shall waive the right to carry back any such Tax Attribute to a Pre-Demerger Tax Period, with respect to which a Joint Return was filed, to the extent permissible under applicable

 

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Law. In the event that any member of RB Pharma Group carries back a Tax Attribute to a Pre-Demerger Tax Period, then (i) subject to Section 3.05(b ), no payment with respect to such carryback shall be due to RB Pharma Group from Parent Group and (ii) if any member of RB Pharma Group receives any Refund of any Taxes in connection with such carryback, RB Pharma shall promptly pay to Parent 11 the full amount of such Refund (including interest, but net of any Taxes imposed with respect to such refund).

 

(b)                                 Notwithstanding Section 3.05(a), if Parent determines, in its sole discretion, that it has received, either from RB Pharma under Section 3.05(a) or directly from a Taxing Authority, a Refund of Taxes that RB Pharma (or any member thereof) has actually paid to Parent Group or to any Taxing Authority pursuant to this Agreement in connection with a carry back by any member of RB Pharma Group of a Tax Attribute to a Pre-Demerger Tax Period, Parent shall pay (or repay) to RB Pharma the amount of such Refund (net of any Taxes imposed with respect to such Refund); provided, however, that RB Pharma agrees, upon Parent’s request, to repay such amount (plus any penalties, interest or other charges imposed by the relevant Taxing Authority) in the event Parent is required to repay such Refund.

 

Section 3.06                             Transfer Pricing. If (a) any transfer pricing adjustment is made under the provisions of any Tax Law in relation to an arrangement made on or before the Demerger Date between any member of RB Pharma Group and any member of the Parent Group and (b) the effect of that adjustment is to increase the Tax liability of one party (the “first party”) in relation to that arrangement and to decrease the Tax liability of the other party (the “second party”) or if the second party could, as a result of the adjustment having been made, make an election or claim which would have the effect of decreasing its Tax liability without cost to the second party, then the second party shall make such payment to the first party as it determines, acting reasonably, so that the second party will be in no better or worse position, after-Tax, than it would be if its Tax liability had not been decreased as a result of the relevant adjustment.

 

ARTICLE IV

 

PREPARATION AND FILING OF TAX RETURNS

 

Section 4.01                             Parent Responsibility. Parent shall make all determinations with respect to, have ultimate control over the preparation of and file all Joint Returns and Parent Separate Returns, in each case as it determines to be mandatory or advisable for all taxable periods.

 

Section 4.02                             RB Pharma Responsibility.

 

(a)                                 RB Pharma shall make all determinations with respect to, have ultimate control over the preparation of, and file, all Tax Returns (other than those described in Section 4.01) for RB Pharma Group, as it determines to be mandatory or advisable, for all taxable periods. RB Pharma shall provide to Parent all information related to members of RB Pharma Group that is reasonably requested by Parent and required to complete any Tax Return that is the responsibility of Parent pursuant to Section 4.01 in the format reasonably requested by Parent, at least 120 days prior to the due date (including extensions) with respect to all U.S. federal and state Income Tax Returns and at such times as are reasonably requested by Parent

 

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with respect to other Tax 12 Returns. The dates for submissions to Parent required in this section may be modified by mutual agreement of Parent and RB Pharma.

 

(b)                                 In the case of any Tax Return that is the responsibility of Parent pursuant to Section 4.0 I and that relates to an Income Tax that is provided for on the Balance Sheet, RB Pharma shall pay to Parent the amount of the provision for such Income Tax no later than 10 days prior to the due date (including extensions) for the filing of such Tax Return.

 

ARTICLE V

 

TAX-FREE STATUS OF DISTRIBUTION

 

Section 5.01                             Representations. Each of RB Pharma and Parent represents that (i) it knows of no fact that may cause the Internal Reorganization or the Demerger or both to fail to have Tax-Free Status and (ii) it has no plan or intention to take any action inconsistent with the Tax Opinions/Rulings or the covenants set forth in this Agreement.

 

Section 5.02                             Covenants.

 

(a)

 

(i)                                     Each of RB Pharma and Parent will not take or fail to take, or permit its Affiliates to take or fail to take, any action (which includes the undertaking of any transaction) where that action or omission would (A) violate, be inconsistent with or cause to be untrue, any covenant, representation or statement in any Tax Opinions/Rulings or a letter or certificate that forms the basis therefor, or (B) prevent, or be reasonably likely to prevent, or be inconsistent with, the Tax-Free Status.

 

(ii)                                  RB Pharma will not take, or fail to take, or permit its Affiliates to take or fail to take, any action any action where that action or omission would cause, or be reasonably likely to cause, the two-tiered voting structure of the RBP US Holdings Inc. Class A and Class B stock to be treated as anything other than a permanent part of the capital structure of RBP US Holdings Inc.

 

(b)                                 During the Restricted Period, except as provided in paragraph (c), RB Pharma shall not, and shall not permit its Affiliates to, in a single transaction or in a series of transactions:

 

(i)                                     subject to the last paragraph of this Section 5.02(b), permit any transaction or series of transactions (or any agreement, understanding or arrangement to enter into a transaction or series of transactions, whether any such transaction is to occur during or after the Restricted Period) as determined for purposes of Section 355(e) of the Code, in connection with which (A) any member of RB Pharma Group would merge or consolidate with any Person other than any other member of RB 13 Pharma Group, (B) any member of RB Pharma Group would form one or more joint ventures with any Person (other than RB Pharma or any other member of RB Pharma Group that is a direct or indirect wholly-owned subsidiary of RB Pharma) in which, in the aggregate, more than 10% of the gross assets of RB Pharma Group are transferred to such joint ventures or (C) one or more Persons would acquire, or have the right

 

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to acquire, directly or indirectly, from any other Person or Persons, an interest in the equity of any Section 355 Entity that, when combined with any other acquisitions of the equity of such Section 355 Entity (but excluding any other acquisition described in the final sentence of the last paragraph of this Section 5 .02(b)) comprises 10% or more of the value or the total combined voting power of all interests that are treated as outstanding equity in such Section 355 Entity for U.S. federal Income Tax purposes immediately after such transaction, or, in the case of a series of related transactions, immediately after any transaction in such series (each of (A), (B), and (C), a “Proposed Acquisition Transaction);

 

(ii)                                  liquidate or partially liquidate any member of RB Pharma Group, whether by merger, consolidation or otherwise;

 

(iii)                               cause or permit any member of RB Pharma Group to cease to engage in its Active Trade or Business;

 

(iv)                              sell or transfer assets, other than inventory sold or transferred in the ordinary course of business, constituting (A) 50% or more of the gross assets that are held by any member of RB Pharma Group and are used in the Active Trade or Business, (B) 50% or more of the consolidated gross assets of RB Pharma Group that are used in an Active Trade or Business (such percentages to be measured based on fair market value as of the Demerger Date) or (C) any lesser amount if that sale or transfer could reasonably be expected to result in a significant and material change to, or termination of, the Active Trade or Business immediately after the Demerger Date; or

 

(v)                                 redeem or otherwise repurchase (directly or indirectly) any capital stock of RB Pharma, except to the extent such redemptions or repurchases satisfy Section 4.05(l)(b) of Revenue Procedure 96-30 (as in effect prior to its amendment by Revenue Procedure 2003-48).

 

For purposes of Section 5.2(b)(i), any recapitalization, repurchase or redemption of equity in any Section 355 Entity shall be treated as an indirect acquisition of such stock by any non-exchanging shareholder to the extent such shareholder’s percentage interest in the issuer increases by vote or value. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (w) the adoption by RB Pharma of a shareholder rights plan that meets the requirements of IRS Revenue Ruling 90-11, (x) issuances of capital stock by RB Pharma pursuant to an employee stock purchase agreement or equity compensation plan that Parent has notified RB Pharma in writing as acceptable to Parent in its sole discretion (for the avoidance of doubt, (1) any modification or amendment to such agreement or plan is also subject to the prior written consent of Parent and (2) Parent’s approval is required for the underlying purchase agreement or plan but not for each issuance of stock pursuant thereto), (y) transfers on an 14 established market of capital stock of RB Pharma described in Safe Harbor VII of Treasury Regulation Section 1.355-?(d) or (z) issuances of capital stock by RB Pharma described in Safe Harbor VIII (relating to acquisitions in connection with a Person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d).

 

(c)                                  Notwithstanding paragraph (b):

 

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(i)                                     Subject to and without limiting its obligations under Section 3.02(a), RB Pharma shall be permitted to take, or permit any Affiliate to take, any action described in clauses (i) through (v) of paragraph (b) upon the prior written consent of Parent, which consent may not be withheld if Parent determines in good faith that RB Pharma has provided it with Satisfactory Guidance concluding that the proposed actions will not result in Transaction Taxes;

 

(ii)                                  for purposes of clause (i), if RB Pharma provides Parent an Unqualified Tax Opinion that is intended to be Satisfactory Guidance concerning a Proposed Acquisition Transaction, then such Opinion may be based on the assumption that Parent did not have any agreement, understanding, arrangement or substantial negotiations, within the meaning of Treasury Regulations Section 1.355-7(h), with the counterparty to the Proposed Acquisition Transaction within the two year period preceding the Demerger Date and such assumption shall not prevent such Unqualified Tax Opinion from being considered Satisfactory Guidance by the Parties, provided that (x) such assumption must be based on a certificate of such counterparty that such assumption is true to the best of its knowledge and belief, and (y) Parent may deem such Opinion not to be Satisfactory Guidance if, in its reasonable judgment, there is a risk that such assumption is not correct; and

 

(d)                                 Notwithstanding anything herein to the contrary, for purposes of paragraph (c), no Ruling shall be obtained from the IRS if Parent determines that there is a reasonable possibility that such an action could have a significant adverse impact on any member of Parent Group.

 

Section 5.03                             Procedures Regarding Opinions and Rulings.

 

(a)                                 Subject to Section 5.02(d), if RB Pharma may take certain actions conditioned upon the receipt of Satisfactory Guidance, Parent, at the request of RB Pharma, shall use commercially reasonable efforts to expeditiously obtain, or assist RB Pharma in obtaining, such Satisfactory Guidance. Parent shall not be required to take any action pursuant to this Section 5.03(a) if RB Pharma fails to certify, upon request, that all information and representations relating to any member of RB Pharma Group in the relevant documents are true, correct and complete. RB Pharma shall reimburse Parent for all reasonable out-of-pocket costs and expenses incurred by Parent Group in obtaining Satisfactory Guidance.

 

(b)                                 Parent shall have the right to obtain a Ruling from the IRS or an Unqualified Tax Opinion at any time in its sole discretion. Parent shall reimburse RB Pharma for all reasonable out-of-pocket costs and expenses incurred by RB Pharma Group in obtaining such a Ruling or Unqualified Tax Opinion.

 

(c)                                  Parent shall have exclusive control over the process of obtaining any Ruling relating to the Transactions and neither RB Pharma nor any of its Affiliates shall independently seek any guidance concerning the Transactions from the IRS at any time. In connection with any Ruling relating to the Transactions that can reasonably be expected to affect liabilities of RB Pharma Group under this Agreement, Parent shall (i) keep RB Pharma informed of all material actions taken or proposed to be taken by Parent. (ii) reasonably in advance of the submission of any Ruling request provide RB Pharma with a draft thereof, consider RB Pharma’

 

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s comments on such draft, and provide RB Pharma with a final copy, and (iii) provide RB Pharma with notice reasonably in advance of, and permit RB Pharma to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling.

 

ARTICLE VI

 

TAX CONTESTS; INDEMNIFICATION; COOPERATION

 

Section 6.01                             Notice.

 

(a)                                 Within 15 days after a Party (the “Indemnitee”) becomes aware of the existence of a Tax Contest that may give rise to an indemnification claim under this Agreement by it against the other Party (the “Indemnifying Party”), the Indemnitee shall notify the Indemnifying Party of the Tax Contest, and thereafter shall promptly forward or make available to the Indemnifying Party copies of notices and communications with a Taxing Authority relating to such Tax Contest.

 

(b)                                 The Indemnifying Party shall not be responsible for any increase in amounts to which the Indemnitee is otherwise entitled to the extent that such increase results solely from the failure of the Indemnitee to provide timely notice as required pursuant to Section 6.0l(a).

 

Section 6.02                             Control of Tax Contests.

 

(a)                                 Except as otherwise provided in paragraphs (b) and (c):

 

(i)                                     Parent shall control, and have sole discretion in handling, settling or contesting, any Tax Contest relating to any Joint Returns, as well as any Separate Returns or other Tax Return if any such Tax Return is related to Taxes for which Parent is responsible pursuant to Article III, or the Tax treatment of the Transactions, provided that (x) Parent shall act in good faith in connection with its control of any such Tax Contests and (y) RB Pharma shall have the right to participate in and advise on (including the opportunity to review and comment upon Parent’s communications with the Taxing Authority, which comments shall be incorporated upon the consent of Parent, not to be unreasonably withheld) such items for which RB Pharma could be liable under Article III as a result of such Tax Contest; and

 

(ii)                                  If RB Pharma disagrees with Parent’s decision to settle a Tax Contest that may reasonably be expected materially to affect amounts for which RB Pharma is liable under Article III, RB Pharma shall have the right to contest its liability to Parent under Article III notwithstanding the settlement. RB Pharma shall provide written notice to Parent of its intention to contest its liability as a result of any settlement (and its irrevocable election described below) prior to the time such settlement is entered into. Any such contest by RB Pharma shall be made under the procedures set forth in Article VII. Under those procedures, RB Pharma may irrevocably elect, in its sole discretion, to require the Tax Advisor or the arbitrator to determine either (x) the amount of a settlement with the relevant Taxing Authority that would most accurately reflect the litigation risk of the relevant issue, or (y) the most likely outcome of the issue if it were litigated without a settlement. In either such case, RB Pharma shall be liable to Parent, or Parent shall be liable to RB Pharma, based solely on the determination of the Tax

 

15

 

Advisor or the arbitrator as if a settlement or litigation implementing such determination had actually occurred, without regard to the actual settlement. For the avoidance of doubt, this clause (ii) shall not limit Parent’s ability to settle a Tax Contest.

 

(b)                                 RB Pharma shall control and have sole discretion in handling, settling or contesting, any Tax Contest for a Pre-Demerger Tax Period to the extent such Tax Contest relates solely to Taxes that are the responsibility of RB Pharma Group pursuant to Article Ill; provided that Parent shall have the right to participate in and advise on all aspects of such Tax Contests and may coordinate discussions with the relevant Taxing Authority with respect thereto.

 

(c)                                  Parent and RB Pharma shall jointly control Tax Contests relating to Tax liability arising from the failure of the Transactions to achieve Tax-Free Status, if there is a reasonable likelihood that RB Pharma Group would be liable to Parent Group under Article Ill as a result of such Tax Contest. Neither Party shall have the right to settle any such Tax Contest without the consent of the other Party; provided that Parent may settle any such Tax Contest without the consent of RB Pharma if Parent waives any claim for indemnification with respect thereto.

 

(d)                                 Except as otherwise provided in paragraph (a), (b) or (c), RB Pharma shall have sole control over any Tax Contest that relates to RB Pharma Separate Returns for all periods.

 

(e)                                  Any out-of-pocket costs incurred in handling, settling or contesting a Tax Contest shall be borne ratably by the Parties based on their ultimate liability under this Agreement for the Taxes to which the Tax Contest relates; provided, however, that if RB Pharma contests a settlement made by Parent as provided in clause (ii) of paragraph (a), Parent shall bear the costs relating to RB Pharma’s contest of such settlement unless Parent substantially prevails in such contest.

 

Section 6.03                             Indemnification Payments.

 

(a)                                 An Indemnitee shall be entitled to make a claim for payment pursuant to this Agreement when the Indemnitee determines that it is entitled to 17 such payment and the amount of such payment (including the finalization of a Tax Return before filing). The Indemnitee shall provide to the Indemnifying Party notice of such claim within 10 days of the date on which it first so becomes entitled to claim such payment, including a description of such claim and a detailed calculation of the amount of the indemnification payment that is claimed, provided, however, that no delay on the part of the Indemnitee in notifying the Indemnitor shall relieve the Indemnitor from any obligation hereunder unless (and then solely to the extent) the Indemnitor is actually and materially prejudiced thereby. Except as provided in paragraph (b), the Indemnifying Party shall make the claimed payment to the Indemnitee within 10 days after receiving such notice, unless the Indemnifying Party reasonably disputes its liability for, or the amount of, such payment.

 

(b)                                 If the Indemnitee will be obligated to make the payment described in paragraph (a) to a Taxing Authority or other third Party (including expenses reimbursable

 

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under this Agreement), the Indemnifying Party shall not be obligated to pay the Indemnitee more than 5 days before the Indemnitee incurs such expense or makes such payment. If the Indemnitee’ s claim for payment arises from a payment that the Indemnifying Party will receive from a third Party, such as a Refund, the Indemnifying Party shall not be obligated to pay the Indemnitee until 5 days after the Indemnifying Party receives such payment.

 

(c)           In the case of a claim under Article Ill where no payment will be made to or received from a Taxing Authority, paragraph (b) shall be applied to the payments that would be made to or from a Taxing Authority if RB Pharma Group was treated as a standalone group for all taxable periods.

 

Section 6.04          Interest on Late Payments. Payments due to be made under this Agreement shall, if not paid within 30 days of the due date and except to the extent that the liability giving rise to the payment compensates the recipient for the late payment by virtue of its extending to interest and penalties, carry interest at a rate of [***]% above the base lending rate from time to time of the Bank of England for the period from the date for the period from the date falling 30 days after the due date to the date of actual payment.

 

Section 6.05          Treatment of Payments.

 

(a)           The amount of all indemnification obligations under this Agreement shall be decreased to take into account the Tax benefits to the Indemnitee of the deductibility of any indemnified item (whether or not any Tax benefit is actually received for a deductible item and assuming the highest applicable taxable rate) and shall be increased where necessary so that, after all the required deductions (whether or not any Tax benefit is actually received for a deductible item and assuming the highest applicable taxable rate) have been made and Taxes imposed, the Indemnitee receives the amount it would have been entitled to receive under this Agreement in the absence of such deductions and Taxes.

 

(b)           Any payments made to one Party by another Party pursuant to this Agreement, the Demerger Tax Deed or the Demerger Agreement shall be treated by the Parties for all Tax purposes as a distribution by, or capital contribution to, RB Pharma, as the case may be, made immediately prior to the Demerger, except to the extent otherwise required by a Final Determination.

 

Section 6.06          Expenses. Except as otherwise provided herein, each Party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax Contests, and other matters under this Agreement.

 

Section 6.07          Cooperation. Each member of Parent Group and RB Pharma Group shall cooperate fully with all reasonable requests from the other Party in connection with the preparation and filing of Tax Returns and Adjustment Requests, Tax Contests and other matters covered by this Agreement.

 

(a)           Such cooperation shall include:

 

(i)            the retention until the expiration of the applicable statute of limitations, and the provision upon request, of Tax Returns, books, records (including

 

17

 

information regarding ownership and Tax basis of property), documentation and other information relating to the Tax Returns, including accompanying schedules, related workpapers, and documents relating to Rulings or other determinations by Taxing Authorities;

 

(ii)           the execution of any document that may be necessary or reasonably helpful in connection with any Tax Contest, the filing of a Tax Return or Adjustment Request by a member of Parent Group or RB Pharma Group, obtaining a Tax opinion or private letter ruling (except as otherwise provided in Section 5.02(d)), or other matters covered by this Agreement, including certification (provided in such form as may be required by applicable law or reasonably requested and made to the best of a Party’s knowledge) of the accuracy and completeness of the information it has supplied;

 

(iii)          the use of the Parties’ reasonable best efforts to obtain any documentation that may be necessary or reasonably helpful in connection with any of the foregoing;

 

(iv)          the use of the Parties’ reasonable best efforts to make the applicable Party’s current or former directors, officers, employees, agents and facilities available on a reasonable and mutually convenient basis in connection with the foregoing matters; and

 

(v)           making determinations with respect to actions described in Section 5.02(c) as promptly as practicable including making determinations within 10 days with respect to modifications and amendments of employee stock purchase agreements or equity compensation plans under subclause (x) in the last paragraph of Section 5.02(b).

 

(b)           If a Party fails to comply with any of its obligations set forth in this Section 6.07 upon reasonable request and notice by the other Party, and such failure results in the imposition of additional Taxes, the nonperforming Party shall be liable in full for such additional Taxes.

 

Section 6.08          Confidentiality. Any information or documents provided under this Agreement shall be kept confidential by the recipient-Party, except as may otherwise be necessary in connection with the filing of Tax Returns or with any Tax Contest. In addition, if Parent or RB Pharma determines that providing such information could be commercially detrimental, violate any law or agreement or waive any privilege, the Parties shall use reasonable best efforts to permit compliance with the obligations under this Agreement in a manner that avoids any such harm or consequence.

 

Section 6.09          Retention of Tax Records. RB Pharma may request from Parent and retain copies of (i) with respect to any Joint Return, all pro forma Tax Returns, supporting schedules and workpapers related to any member of RB Pharma Group and (ii) any Separate Returns of any member of RB Pharma Group, including supporting schedules and workpapers. If either Parent or RB Pharma intends to dispose of documentation with respect to any Pre-Demerger Tax Period, including books, records, Tax Returns and all supporting schedules and information relating thereto (after the expiration of the applicable statute of limitations), of any member of the other Group, or in the case of RB Pharma Group any member included in a Joint Return, such Party shall provide written notice to the other Party describing the documentation to

 

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be disposed of 30 days prior to taking such action. The other Party may arrange to take delivery of the documentation described in the notice at its own expense during the succeeding 30-day period.

 

 

ARTICLE VII

 

RESOLUTION OF DISPUTES

 

Section 7.01          Tax Disputes. The Parties shall endeavor, and shall cause their respective Affiliates to endeavor, to resolve in an amicable manner all disputes arising in connection with this Agreement. The Parties shall negotiate in good faith to resolve any Tax Dispute for not less than 45 days. Upon written notice of either Party after 45 days, the matter will be referred to a Tax Advisor acceptable to both Parties. The Tax Advisor may, in its discretion, obtain the services of any third-party necessary to assist it in resolving the dispute. The Tax Advisor shall furnish written notice to the Parties of its resolution of the dispute as soon as practicable, but in any event no later than 45 days after its acceptance of the matter for resolution. Any such resolution by the Tax Advisor will be binding on the Parties and the Parties shall take, or cause to be taken, any action necessary to implement the resolution. All fees and expenses of the Tax Advisor shall be shared equally by Parent, on the one hand, and RB Pharma, on the other hand. If, having determined that the dispute must be referred to a Tax Advisor, after 45 days the Parties are unable to find a Tax Advisor willing to adjudicate the dispute in question and whom the Parties in good faith find acceptable, 20 then the dispute will be submitted for arbitration to the American Arbitrators Association, provided, however, that only an arbitrator that qualifies as a Tax Advisor shall be selected.

 

ARTICLE VIII

 

MISCELLANEOUS PROVISIONS

 

Section 8.01          Disposition of RB Pharma Subsidiaries. In the event that RB Pharma disposes of the stock of a Subsidiary that is not a Party to this Agreement (i) without receiving compensation equal to the fair market value of such Subsidiary, prior to the disposition, such Subsidiary shall deliver to Parent an executed agreement, in a form reasonably acceptable to Parent, agreeing to be bound by this Agreement as if it had been an original Party hereto or (ii) in an exchange intended to result in the receipt of compensation equal to the fair market value of such Subsidiary, prior to the disposition, such Subsidiary shall deliver to Parent an executed agreement, in a form reasonably acceptable to Parent, agreeing to be bound by Sections 6.07, 6.08, 6.09 and Article VIII of this Agreement as if it had been an original Party hereto.

 

Section 8.02          Complete Agreement; Representations.

 

(a)           Except as explicitly stated herein, this Agreement, together with the exhibits and schedules hereto constitutes the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter.

 

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(b)           Parent represents on behalf of itself and each other member of Parent Group, and RB Pharma represents on behalf of itself and each other member of RB Pharma Group as follows:

 

(i)            each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement; and

 

(ii)           this Agreement has been duly executed and delivered by such Person (if such Person is a Party) and constitutes a valid and binding agreement of it enforceable in accordance with the terms thereof (assuming the due execution and delivery thereof by the other Party), except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other Laws relating to creditors’ rights generally and by general equitable principles.

 

Section 8.03          Costs and Expenses. All costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated hereby shall be borne as provided in the Demerger Agreement.

 

Section 8.04          Governing Law. This Agreement and any dispute arising out of, in connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without giving effect to the conflicts of laws principles thereof.

 

Section 8.05          Notices. All notices, requests, claims, demands and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally or mailed (first-class postage-prepaid) to the Parties at the following addresses:

 

If to Parent or any member of Parent Group, to:

 

Reckitt Benckiser Group plc

103-105 Bath Road

Slough

Berkshire

SL13UH

UNITED KINGDOM

Attn: [***]

 

If to RB Pharma or any member of RB Pharma Group, to:

 

Indivior plc

10710 Midlothian Parkway, Suite 430

Richmond, VA 23235

UNITED STATES

Attn: [***]

 

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All such notices, requests and other communications will (i) if delivered personally to the address as provided in this section, be deemed given upon delivery, and (ii) if delivered by mail in the manner described above to the address as provided in this section, be deemed given upon receipt. Any party from time to time may change its address or other information for the purpose of notices to that party by giving notice specifying such change to the other party.

 

Section 8.06          Amendment, Modification or Waiver.

 

(a)           Prior to the Demerger, this Agreement may be amended, modified, waived, supplemented or superseded, in whole or in part, by Parent in its sole discretion by execution of a written amendment delivered to RB Pharma. Subsequent to the Demerger, this Agreement may be amended, modified, supplemented or superseded only by a written instrument signed by duly authorized signatories of both Parties.

 

(b)           Following the Demerger, any term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. No waiver by any Party of any term or condition of this Agreement, in any one or more instances, shall be deemed or construed as a waiver of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by Law or otherwise afforded, will be cumulative and not alternative.

 

Section 8.07          No Assignment: Binding Effect; No Third Party Beneficiaries.

 

(a)           Neither this Agreement nor any right, interest or obligation hereunder may be assigned by either Party hereto without the prior written consent of the other Party hereto and any attempt to do so will be void, except that following the Demerger Date each Party hereto may assign any or all of its rights, interests and obligations hereunder to an Affiliate; provided that any such Affiliate agrees in writing to be bound by all of the terms, conditions and provisions contained herein; provided, further, that any such assignment shall not relieve the assigning party of its obligations or liabilities hereunder. Subject to the preceding sentence, this Agreement is binding upon, inures to the benefit of and is enforceable by the Parties hereto and their respective successors and permitted assigns.

 

(b)           The terms and provisions of this Agreement are intended solely for the benefit of each Party hereto and their respective Affiliates, successors or permitted assigns, and it is not the intention of the Parties to confer third party beneficiary rights upon any other Person.

 

Section 8.08          Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Section 8.09          Specific Performance. From and after the Demerger, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party or Parties to this Agreement that are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable

 

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relief of its or their rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that, from and after the Demerger, the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any loss, that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

 

Section 8.10          New York Forum. Each of the Parties agrees that, except as otherwise provided in Section 7.01, all Actions arising out of or in connection with this Agreement, or for recognition and enforcement of any judgment arising out of or in connection with this Agreement, shall be tried and determined exclusively in the state or federal courts in the State of New York, County of New York, and each of the Parties hereby irrevocably submits with regard to any such Action for itself and in respect to its property, generally and unconditionally, to the exclusive jurisdiction of the aforesaid courts. Each of the Parties hereby expressly waives any right it may have to assert, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any such Action: (a) any claim that it is not subject to personal jurisdiction in the aforesaid courts for any reason; (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts; and (c) any claim that (i) any of the aforesaid courts is an inconvenient or inappropriate forum for such Action, (ii) venue is not proper in any of the aforesaid courts and (iii) this Agreement, or the subject matter hereof, may not be enforced in or by any of the aforesaid courts. Each of the Parties agrees that mailing of process or other papers in connection with any such Action in the manner provided in Section 8.05 or any other manner as may be permitted by Law shall be valid and sufficient service thereof.

 

Section 8.11          WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HA VB TO A TRIAL BY JURY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE WAIVER IN THIS SECTION, (B) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER, (C) SUCH PARTY MAKES SUCH WAIVER VOLUNTARILY AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS, AGREEMENTS AND CERTIFICATIONS HEREIN.

 

Section 8.12          Interpretation: Conflict With Other Agreements.  The Parties acknowledge and agree that (i) each Party reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision, (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement and (iii) the terms and provisions of this Agreement shall be construed fairly as to each of the Parties, regardless of which Party was generally responsible for the preparation of this Agreement. Notwithstanding the foregoing, the purposes of Article IV are to ensure the

 

22

 

Tax-Free Status and, accordingly, the Parties agree that the language thereof shall be interpreted in a manner that serves this purpose to the greatest extent possible. The Article and Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. If, and to the extent, the provisions of this Agreement conflict with the Demerger Agreement or the Demerger Tax Deed, the provisions of this Agreement shall control.

 

Section 8.13          Severability. If any provision or any portion of any provision of this Agreement shall be held invalid or unenforceable, the remaining portion of such provision and the remaining provisions of this Agreement shall not be affected thereby. If the application of any provision or any portion of any provision of this Agreement to any Person or circumstance shall be held invalid or unenforceable, the application of such provision or portion of such provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby.

 

Section 8.14          Survival. Except with respect to Sections 6.07, 6.08 and 6.09 which shall remain in effect without limitation as to time, the provisions in this Agreement shall be unconditional and absolute and shall remain in effect until the expiration of all applicable statutes of limitations (including all periods of extension, whether automatic or permissive) for all taxable periods that end before or include December 31 of the calendar year in which the Demerger occurs and the resolution of all disputes under this Agreement that arose during such periods.

 

Section 8.15          Parent and RB Pharma Obligations.  Notwithstanding any other provision of this Agreement:

 

(a)           Parent shall be under no obligation to make a payment under any provision of this Agreement to the extent that payment has been made by Parent so that the liability in respect of which such payment would otherwise be made has been made good without cost to RB Pharma; and

 

(b)           RB Pharma shall be under no obligation to make a payment under any provision of this Agreement to the extent that payment has been made by RB Pharma so that the liability in respect of which such payment would otherwise be made has been made good without cost to Parent.

 

[Remainder of page intentionally left blank]

 

23

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above written.

 

	
 
    	
RECKITT   BENCKISER GROUP PLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adrian Hennah
    
	
 
    	
 
    	
Name:
    	
Adrian   Hennah
    
	
 
    	
 
    	
Title:
    	
Mr
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INDIVIOR   PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shaun Thaxter
    
	
 
    	
 
    	
Name:
    	
Shaun   Thaxter
    
	
 
    	
 
    	
Title:
    	
CEO
    

 

 

Exhibit A-1

Internal Reorganization Steps

 

 

[***]

 

 

Exhibit A-2

Demerger Steps

 

 

Reckitt Benckiser plc

 

[***]EXHIBIT 4.7

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.  REDACTED MATERIAL IS MARKED WITH [***] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

DATED 17 November 2014

 

RECKITT BENCKISER HEALTHCARE (UK) LIMITED

 

and

 

RB PHARMACEUTICALS LIMITED

 

 

AMENDMENT DEED

 

relating to the

 

EXISTING SUPPLY AGREEMENT

 

 

Slaughter and May

One Bunhill Row

London, EC1Y 8YY

(RLC/GXZE)

 

 

CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Amendment   and restatement
    	
3
    
	
 
    	
 
    	
 
    
	
2.
    	
Counterparts
    	
3
    
	
 
    	
 
    	
 
    
	
3.
    	
Governing   Law and Jurisdiction
    	
3
    
	
 
    	
 
    	
 
    
	
Schedule Amended Existing Supply   Agreement
    	
4
    

 

2

 

THIS DEED is made 17 November 2014

 

BETWEEN:

 

1.                                      RECKITT BENCKISER HEALTHCARE (UK) LIMITED whose registered office is at 103-105 Bath Road, Slough, Berkshire, SL1 3UH (registered in England and Wales No. 00261312) (the “Provider”);

 

AND

 

2.                                      RB PHARMACEUTICALS LIMITED whose registered office is at 103-105 Bath Road, Slough, Berkshire, SL1 3UH (registered in England and Wales No. 07183451) (the “Recipient”).

 

WHEREAS The parties entered into a supply agreement dated 23 May 2012 (the “Existing Supply Agreement”) and the parties now wish to amend certain terms of that agreement as set out in this Deed with effect from the date of this Deed.

 

WHEREBY IT IS AGREED as follows:

 

1.                                      Amendment and restatement

 

1.1                               The parties agree that that the Existing Supply Agreement shall be amended to be in the form set out in the Schedule to this Deed, such amendments to take effect from the date of this Deed.

 

2.                                      Counterparts

 

2.1                               This Deed may be executed in any number of counterparts, and by the parties to it on separate counterparts, but shall not be effective until each party has executed at least one counterpart.

 

2.2                               Each counterpart shall constitute an original of this Deed, but all the counterparts shall together constitute but one and the same instrument.

 

3.                                      Governing Law and Jurisdiction

 

3.1                               This Deed shall be governed by and construed in accordance with English law. Any matter, claim or dispute arising out of or in connection with this Deed, whether contractual or non-contractual, is to be governed by and determined in accordance with English law.

 

3.2                               The courts of England are to have exclusive jurisdiction to settle any dispute whether contractual or non contractual arising out of or in connection with this Deed. Any proceedings may be brought in the English courts.

 

3

 

Schedule

 

Amended Existing Supply Agreement

 

4

 

SUPPLY AGREEMENT

 

BETWEEN

 

(1) RECKITT BENCKISER HEALTHCARE (UK) LIMITED

 

AND

 

(2) RB PHARMACEUTICALS LIMITED

 

5

 

THIS AGREEMENT is made on the date of last signature set out below: BETWEEN:

 

(1)                                 Reckitt Benckiser Healthcare (UK) Limited incorporated and registered in England and Wales with company number 261312 whose registered office is at 103-105 Bath Road, Slough, Berkshire, SL1 3UH, United Kingdom (“Supplier);

 

AND

 

(2)                                 RB Pharmaceuticals Limited incorporated and registered in England and Wales with company number 7183451 whose registered office is at 103-105 Bath Road, Slough, Berkshire, SL1 3UH, United Kingdom (“Buyer”).

 

WHEREAS the Buyer has purchased the Buprenorphine Pharmaceutical Business from the Supplier by means of the 2012 Asset Purchase Agreement (as defined below) and wishes to engage the Supplier to manufacture and supply the Products (as defined below) on the terms of this Agreement and the Supplier wishes to manufacture and supply the Products to the Buyer on the terms of this Agreement.

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS

 

1.1                               In this Agreement the following definitions shall apply, unless the context requires otherwise:

 

“2012 Asset Purchase Agreement” means the agreement dated the same day as this Agreement relating to the purchase of Buprenorphine Pharmaceutical Business by the Buyer from the Supplier.

 

“Affiliates” means in relation to a company, any entity controlled by that company or any entity which controls that company or any entity which is controlled by another entity, which also controls that company whether such control is direct or indirect. For the purpose of this definition, a particular company is:

 

(i)                                      directly controlled by another company or companies if the latter hold/holds in the aggregate fifty percent (50%) or more of (a) the shares carrying votes exercisable at a general meeting (or its equivalent) of the particular company if such company is a corporation issuing voting shares or (b) the control rights or interests if it is not a corporation; and

 

(ii)                                  indirectly controlled by a company or companies (“the parent company or companies”) if a series of companies can be specified, beginning with the parent company or companies and ending with the particular company, so related that each company or companies of the series, except the parent company or companies, directly controlled by one or more companies earlier in the series.

 

“Supplier’s Affiliates” and “Buyer’s Affiliates” shall be construed accordingly in relation to the Supplier and the Buyer respectively.

 

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“Agreement” means this agreement.

 

“Arising Intellectual Property Rights” means such Intellectual Property Rights as are created during the conduct of or as a result of the work undertaken under this Agreement.

 

“Buprenorphine API” has the meaning given to that term in Schedule Three.

 

“CAPA” means a corrective and preventative action taken pursuant to applicable quality procedures.

 

“Commencement Date” means the 1 January 2012. “Confidential Information” includes:

 

(i)                                     information concerning the existence of this Agreement and the fact that the Supplier is manufacturing the Products (as hereinafter defined) for the Buyer; and

 

(ii)                                  information related to Intellectual Property Rights generally, Arising Intellectual Property Rights, Existing Intellectual Property Rights, the Specifications and Technical Manual (all as defined herein), know how, and data and information of a technical, operational, administrative, financial or business nature, whether oral or in some tangible form, such as in documents, papers, drawings, diagrams, discs, articles, samples, prototypes or otherwise, that is disclosed (intentionally or unintentionally) by one party or their Affiliates to the other party.

 

“Control” means, in relation to a company, the ability of a person to ensure that the activities and business of that company are conducted in accordance with the wishes of that person, and a person shall be deemed to have Control of a company if it possesses or is entitled to acquire the majority of the issued share capital or the voting rights in that company or the right to receive the majority of the income of that company on any distribution by it of all of its income or the majority of its assets on a winding up, and “Controlled” shall be construed accordingly.

 

“Demerger” means the date on which the addiction pharmaceutical treatment business, the majority of which is currently carried on within the Reckitt Benckiser group by RBP Global Holdings Limited and its subsidiary undertakings, ceases to be directly or indirectly controlled by Reckitt Benckiser Group plc.

 

“Existing Intellectual Property Rights” means any Intellectual Property Rights owned by or licensed to the Buyer or the Supplier or their Affiliates prior to the date of this Agreement or created or resulting after the Effective Date otherwise than under or pursuant to this Agreement.

 

“FCP” means the Fine Chemical Plant at Dansom Lane, Hull, HU8 7DS.

 

“Finished Products” has the meaning given to that term in Schedule Two.

 

“Intellectual Property Rights” means patents, applications for patents, utility models, applications for utility models, trade marks or applications for trademarks or trading names (whether or not registered or registrable), rights in know how (including trade secrets, technology, methods of manufacture, specifications and other information), designs (registered or unregistered and including applications for registered designs), copyright (including rights in

 

7

 

computer software), topography rights and other rights in semi-conductor chips, rights in inventions, the right to claim damages for past infringements of any or all such rights and all rights having equivalent or similar effect wherever situated.

 

“Manufacturing IPR” shall have the meaning given in the 2012 Asset Purchase Agreement.

 

“Manufacturing Site” means the Supplier’s site of manufacture of Products as specified in the Supplier’s manufacturing licence and controlled substance licence in respect of such Products.

 

“Plant Day” means the date on which the Buyer takes operational control of the FCP in accordance with the Transitional Services Agreement.

 

“Prices” means the prices (described by reference to stock keeping units) specified in Schedule One to be charged by the Supplier to the Buyer in respect of any Products supplied pursuant to this Agreement;

 

“Products” means those products listed in Schedule Two or as otherwise agreed by the parties in writing, together with such additional, improved, modified or replacement products as shall be agreed between the parties from time to time as are manufactured by the Supplier and for supply to the Buyer under this Agreement and wherever “Products” is referred to in this Agreement it shall refer to the relevant Products or all Products as the case may be, as listed in Schedule Two.

 

“Protected Person” has the meaning set out in clause 3.5(C).

 

“Raw Materials” means, on a Product by Product basis, such raw materials and components as are used to manufacture such Product, including without limitation all packaging components.

 

“Restricted Person” means:

 

(i)                                     until any such time as Reckitt Benckiser Group plc becomes Controlled by a third party, each Supplier Affiliate; and

 

(ii)                                  from and including the date (if any) on which Reckitt Benckiser Group plc becomes Controlled by a third party, the body corporate (if different to the Supplier) that operates the Manufacturing Site, or possesses or has access to any information within limb (ii) of the definition of Confidential Information with respect to the manufacture of one or more Products.

 

“Specifications” means each of the specifications for the Products annexed in Schedule Three and as listed in the relevant Technical Manual signed for the purposes of identification by each party, as amended from time to time, and in accordance with which the Supplier shall manufacture and supply the Products.

 

“Technical Agreement” means the technical agreement between the Supplier and the Buyer regarding Good Manufacturing Practice responsibilities executed 3 December 2010 as updated from time to time

 

8

 

“Technical Manual” means the manual in respect of each of the Products containing the technical information for manufacture of the Products which is supplied by the Buyer to the Supplier and is recorded common Technical Document System (TDS) used by the parties.

 

“Termination Stock” has the meaning giver to that term in clause 14.1.2.

 

“Transitional Services Agreement” means the transitional services agreement to be entered into by Reckitt Benckiser plc and RB Pharmaceutical Holdings Limited in connection with the Demerger. 1.2 Unless otherwise indicated, references to clauses and schedules are references to clauses and schedules in this Agreement.

 

2.                                      TERM

 

2.1                               This Agreement shall be effective from the Commencement Date and, subject to applicable laws and the provisions of clause 13 (Termination), shall expire on and including the day immediately preceding Plant Day.

 

3.                                      SUPPLY

 

3.1                               During the term of this Agreement, the Supplier shall, at or from any manufacturing plant approved in writing by the Buyer manufacture and supply the Products on an exclusive basis subject to the terms and conditions of this Agreement.

 

3.2                               Unless the raw materials are supplied by the Buyer to the Supplier as provided in this clause 3, the Supplier shall only obtain raw materials and packaging components from sources approved in writing by the Buyer and shall ensure that such raw materials and other components are of the requisite standard to comply with the Specification and any applicable laws, codes of practice and regulations provided however the Buyer may at its sole discretion supply any raw material required for the Products to the Supplier to be delivered to the Supplier’s manufacturing plant as agreed between the parties hereto. The said raw materials will be solely used by the Supplier for the Products. The Supplier shall incorporate the cost as charged by the Buyer with no further charge into the Price of the Products.

 

3.3                               Unless otherwise agreed with the Buyer in writing, the Supplier shall operate on a full service basis (meaning that the Supplier shall be responsible for: (i) the purchase of all Raw Materials (but the Buyer shall provide reasonable support to the Supplier in relation to obtaining the necessary permits for the import of Thebaine) and (ii) packaging materials and the supply of the Products in finished form to the Buyer). The Buyer shall only be invoiced for finished Product Price inclusive of such costs and expenses.

 

3.4                               The Supplier shall maintain sufficient stock levels of raw and pack materials to provide flexibility, respond rapidly to increases in the Buyer’s demand and to restore the Buyer’s inventory holding such stock levels as reasonably required.

 

3.5                               Subject to clause 3.6, the Supplier (for itself and on behalf of each Restricted

 

9

 

Person) covenants with the Buyer that it will not, without the prior written consent of the Buyer whether directly or indirectly and whether alone or in conjunction with or on behalf of any other person and whether as principal, shareholder, director, employee, agent, consultant, partner or otherwise, during the Agreement:

 

(A)                               canvass, solicit or approach, or cause to be canvassed, solicited or approached, any person for orders or deal with or contract with any person, who at any time during such period is or was:

 

(a)                                 negotiating with the Buyer or any of its Affiliates for the supply by the Buyer or any of its Affiliates of one or more of the Products; or

 

(b)                                 was an actual customer of the Buyer or any of its Affiliates for one or more of the Products, where the above mentioned orders or contracts relate to products which are competitive with a Product supplied by the Supplier to the Buyer or any of its Affiliates at any time during such period;

 

(B)                               interfere, or seek to interfere, with the continuation of Raw Materials to the Buyer or any of its Affiliates from any supplier who has been supplying such Raw Materials to the Buyer or any of its Affiliates at any time during such period if such interference causes or would cause that supplier to cease supplying, or materially reduce its supply of those Raw Materials to the Buyer. For avoidance of doubt, if a third party supplier suffers a shortage of supply of Raw Materials which are used by the Supplier other than to manufacture any Products, then the Supplier’s negotiation with or attempts to obtain a supply of Raw Materials from such third party supplier under the terms of the Supplier’s agreed arrangements with such third party supplier shall not of itself constitute interference by the Supplier for the purpose of this clause.

 

(C)                               solicit or entice, or endeavour to solicit or entice, away from the Buyer or its Affiliates, any person employed in a managerial, supervisory, technical or sales capacity by, or who is or who was a consultant to, the Buyer or its Affiliates (each a “Protected Person”) at any time during such period unless such person responds to a bona fide recruitment advertisement or general solicitation that is not targeted at Protected Persons;

 

(D)                               subject to clause 3.5(F), engage in, or be concerned with, or interested in, any person that conducts a business competitive with all or a substantial part of the Products.

 

(E)                                subject to clause 3.5(F):

 

(i)                                     whether alone or with, or for the benefit of any other person; or

 

(ii)                                  assist (including without limitation by way of granting a licence to or providing information to) any other person to, research, develop, manufacture, market or sell in any manner any products that are

 

10

 

competitive with, or could be competitive with, one or more of the Products that are manufactured by the Supplier or any Supplier Affiliate during such period; and

 

(F)                                 unless expressly authorised by the Buyer in writing, for the purpose of commercial sale during the term of this Agreement supply (or directly or indirectly authorise the manufacture or supply of) the Products or any product which might reasonably be considered to compete with the Products to any person, firm or company other than the Buyer or an Affiliate of the Buyer.

 

3.6                               Clause 3.5 shall not apply to the extent that:

 

(A)                               the Supplier or any Restricted Person is the holder of securities in a company whose securities are listed on a recognised investment exchange (as defined in the Financial Services and Markets Acts 2000, as amended) and holds not more than five per cent. (5%) of the votes which could normally be cast at a general meeting of that company; or

 

(B)                               the Supplier or any Restricted Person acquires an interest in an entity which is directly or indirectly interested in carrying on any business which competes with the business of the Buyer as it was carried out at the date of this Agreement but the acquisition is not made with the sole or main purpose of acquiring a business which so competes.

 

4.                                      INSPECTION TESTING AND SAMPLES

 

4.1                               If so required by the Buyer the Supplier shall, forthwith, at its own cost, submit samples of the Products for the Buyer’s approval before the Products are delivered. Such samples shall be marked by the Supplier for identification.

 

4.2                               On reasonable notice in writing the Buyer shall be entitled to inspect and test the Products during manufacture, processing and storage and the Supplier shall at its own cost provide or shall procure the provision of all such facilities as may reasonably be required by the Buyer including access to the Suppliers premises.

 

4.3                               The exercise by the Buyer of its rights pursuant to clauses 4.1 or 4.2 shall not prejudice the Buyer’s right to reject or revoke acceptance of, pursuant to the terms of any legislative or contractual rights or otherwise, any Products which are defective or which do not comply with the Specification or the provisions of this Agreement, or represent the Buyer’s assumption of liability in any manner whatsoever with respect to such defective or non-compliant Products.

 

4.4                               The Supplier shall supply Buyer with such Health and Safety data sheets (MSDS) and other available information as shall detail the compliance of the Supplier with its obligations under this Agreement and the condition necessary to ensure that the Products can be safely handled and used by Buyer’s personnel and by any subsequent purchaser or user thereof, for such purpose as shall have been notified to the Supplier in writing.

 

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4.5                               The Supplier shall, if requested by the Buyer (a) upon reasonable prior notice, once per calendar year; (b) if the Buyer receives any notice from any regulatory authority of competent jurisdiction with respect to the manufacture or packaging of any Product, during the term of this Agreement and up to seven years after the last delivery of Products has been made by the Supplier to the Buyer; (c) in the event of a breach, or the Buyer’s reasonable suspicion of a breach of clause 8.1 or (d) following implementation by the Supplier of a CAPA in response to a previous audit or incident give the Buyer or its authorised representatives access (such access to be limited to during normal working hours unless immediate access is required under local law) to the Supplier’s premises (including without limitation the Manufacturing Site), Products, reference samples, manufacturing records and books (including without limitation records relating to manufacturing processes, work in progress, operating procedures, sampling records, testing and packaging procedures), in each case with respect to Products, for the purpose of auditing the Supplier’s quality control and procedures with respect to Products (such audit to be at the Buyer’s cost). The Supplier shall use reasonable endeavours to ensure that its employees, its Affiliates and their employees and its subcontractors cooperate with and provide reasonable assistance to the Buyer during such audit. The Supplier shall retain manufacturing records and books (as referred to in this clause 4.5) for seven (7) years after the last delivery of Products under this Agreement or as otherwise required under local laws. Such records and books shall, in so far as they are applicable, be maintained in accordance with applicable law and regulation. At the end of that period the Supplier shall notify the Buyer in writing and offer to transfer the relevant records and books to the Buyer for retention at the Buyer’s cost (as to reasonable expenses, properly incurred). If the Buyer does not notify the Supplier of its acceptance within two (2) months, then the Supplier can destroy such manufacturing records and books securely, in accordance with the Supplier’s normal document retention and destruction procedures

 

5.                                      DELIVERY

 

5.1                               The Buyer shall, on a regular basis, provide a forecast of its requirements for the Products for the next twelve (12) months. The Buyer or any of its Affiliates may at any time issue to the Supplier a purchase order (“Order”) for the Products to be delivered to the Buyer as provided in clause 5.2. The Order shall constitute a firm order for Products and shall be binding on the Supplier. The Supplier will also ensure that it will have on hand at its manufacturing plant as of the date of receipt of each of Buyer’s forecasts sufficient raw materials, packaging components and other materials necessary to manufacture Buyer’s requirements for Products as set forth for weeks 5 through 8 of each such forecast.

 

5.2                               Following receipt of an order from the Buyer, the Supplier shall, at its own expense, deliver, or procure the delivery, of the Products EXW (Incoterms 2010) and the time specified in the order for delivery of the Products shall be of the essence,

 

5.3                               The Supplier recognises that late delivery of the Products will have a significant impact on the Buyer’s obligations to its customers. The Buyer requires as a condition of this Agreement deliveries to be on time. Accordingly, without prejudice to the Buyer’s other rights whether hereunder or at law, if the Products are not delivered on the due date

 

12

 

(“Late Products”) the Buyer shall be entitled to deduct from the Price or to claim from the Supplier by way of liquidated damages for delay, [***] per cent of the price for every week’s or part week’s delay up to a maximum of [***] per cent. To the extent Late Products are contained in packaging (e.g. promotional packs) that is not suitable for sale in the ordinary course of business and late delivery means that the Buyer can not reasonably make use thereof, Supplier shall be liable for the cost of repackaging such Late Products into standard packaging and the write off costs of any promotional packaging, which cannot be utilised. The Supplier agrees that these provisions are a reasonable estimate of the Buyer’s loss and shall not constitute a penalty.

 

5.4                               The Supplier shall manage any agreed changes to the Specification for the Products, whilst maintaining the supply and delivery performance as set out herein. Changes to the Products shall be made with maximum speed of implementation, and meet the agreed launch timings. The Buyer has the right to charge the Supplier in the event of a launch opportunity failing wholly due to the Supplier’s failure to meet the launch requirements. Inventory levels of raw and pack materials and finished Product are to be communicated prior to the change and usage agreed with the Buyer before the change is implemented.

 

6.                                      TOOLING

 

6.1                               The Parties acknowledge that any tooling particular and exclusive to the manufacture of the Products is the sole and exclusive property of Buyer, and Supplier shall take all such actions as Buyer may reasonably request, including, without limitation, the execution and delivery to Buyer of documents of title and other instruments confirming Buyer’s exclusive right, title and interest therein. Notwithstanding the foregoing, Supplier acknowledges and agrees that all designs, drawings, samples, prototypes and all Intellectual Property Rights related thereto, with respect to the Tooling and the Products are the exclusive property of Buyer. Where the Tooling is provided by the Buyer, ownership, title and interest in the Tooling shall at all times belong to the Buyer.

 

7.                                      PRICE AND PAYMENT

 

7.1                               The price (the “Price”) for the Products shall be as set out in Schedule One as may be updated from time to time only on the mutual written agreement of both parties.

 

7.2                               For the duration of this Agreement, the Supplier shall use its best endeavours to be technically and commercially competitive taking into account the market for the supply and the cost from other suppliers of product(s) similar to the Products, and shall promptly effect all cost reductions and engage in all such technical innovation in respect of the Products which is reasonably possible. The Price shall be decreased to reflect such cost reductions and innovation to an amount determined by the Buyer acting reasonably.

 

7.3                               The Buyer shall pay the Price for Products delivered to it pursuant to clause 5 together with any other invoices submitted to it pursuant to this Agreement within [***] of receipt by the Buyer from the Supplier of a valid VAT (or other applicable similar taxes) invoice therefore or as otherwise agreed between the parties.

 

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8.                                      QUALITY

 

8.1                               The Supplier shall manufacture the Products strictly in accordance with this Agreement and in particular with the Specifications, the Technical Manual, the Technical Agreement, any relevant good manufacturing practice and any legislation applicable to the manufacture of the Products including legislation and standards applicable to environmental protection such as waste disposal.

 

8.2                               Prior to commencement of manufacture of the Products the Supplier shall satisfy itself that the know-how contained in the Technical Manual (and any other information provided by the Buyer to the Supplier) is sufficient to enable it to efficiently perform its obligations under this Agreement. If the Supplier concludes that further information is necessary it shall notify the Buyer and obtain such information prior to the commencement of manufacture.

 

8.3                               If the Supplier shall become aware that any aspect of a Specification is liable to result in the manufacture of a defective Product which may lead to a liability being incurred, the Supplier shall, as soon as reasonably practicable, notify the Buyer in writing.

 

8.4                               Upon request by the Buyer the Supplier shall provide the production and quality records in respect of any or all of the Products.

 

8.5                               The Supplier will provide the Buyer with certificates of analysis of all batches of the Products manufactured by it. Such certificates shall comply with, and be in the form set out in, the quality assurance requirements included in the Specifications and the Technical Manual. The Supplier shall not release the Products from its warehouse for sale until the certificates of analysis relating to such Products demonstrate that the Products meet the Specifications.

 

8.6                               The Supplier shall establish and maintain a batch-tracking system to enable it to identify and procure the recall (if necessary) of Products which may be affected in any way by manufacturing and production problems. The Supplier shall provide details to the Buyer of its batch-tracking system upon request to do so.

 

9.                                      WARRANTIES

 

9.1                               Supplier hereby warrants that

 

9.1.1                     any Products manufactured pursuant to this Agreement shall comply with all provisions as to Quality set out in clause 8 hereof;

 

9.1.2                     the Products manufactured pursuant to this Agreement will: 9.1.2.1 be free from all defects:

 

9.1.2.1           be fit for their purpose and of satisfactory quality;

 

9.1.2.2           comply with all applicable statutes and regulations relating to the Products;

 

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9.1.2.3           conform in all respects with the Specifications and the Technical Manual;

 

9.1.3                     so far as the Supplier is aware the manufacture of the Products will not impinge any third party rights.

 

9.2                               Supplier further warrants that:

 

9.2.1                     it will meet all Orders from the Buyer for the Product;

 

9.2.2                     it will supply the Products within the periods set out in clause 5;

 

9.2.3                     it will manufacture the Products using processes and technology which in the Buyer’s reasonable discretion are appropriate or are suitable;

 

9.2.4                     it or its Affiliates has taken or will take all action as may be required or necessary to obtain and maintain, comply and keep current any governmental licences, permits, approvals and/or registrations that are necessary for the Supplier and/or its Affiliates to manufacture the Products and to carry out and perform its obligations under this Agreement.

 

9.3                               Without prejudice to any other remedy (and the Buyer’s rights generally under this Agreement) if any Products are not supplied in accordance with this Agreement, then the Buyer at its sole option shall be entitled to require the Supplier at Supplier’s cost within 7 days or such other reasonable time as is required by the Buyer in writing:

 

9.3.1                     to repair Products if such Products are capable of repair; or

 

9.3.2                     to supply replacement Products conforming with this Agreement

 

10.                               TITLE AND RISK

 

10.1                                        Title to the Products shall pass to the Buyer upon delivery.

 

10.2                        The Supplier shall fully insure the Products for so long as they remain at the Supplier’s risk.

 

11.                               CONFIDENTIAL INFORMATION AND INTELLECTUAL PROPERTY RIGHTS

 

11.1                        The Supplier acknowledges that the Confidential Information may be disclosed to it by the Buyer or its Affiliates in connection with the Products and potentially in connection with other possible contract manufacturing. The Supplier shall keep such information strictly confidential (both during the subsistence and after the termination or expiry of this Agreement), shall not disclose it to any third party and shall only disclose it to those of its employees who need to know it for the purposes of this Agreement and who have agreed to be bound by similar duties of confidentiality as the Supplier. in particular the Supplier shall not disclose to any third party any information contained in the Specification except to the extent that such information is or becomes public knowledge

 

15

 

through no fault of the Supplier or as may be required by applicable laws or order of the court or other competent authority.

 

11.2                        The Supplier agrees to use the Confidential Information only for the purpose of manufacturing and supplying the Products for the Buyer or its Affiliates on the terms of this Agreement and for no other purpose or for its or any third party’s benefit.

 

11.3                        The Buyer or as the case may be any Affiliate of the Buyer retains the ownership of the product formulation for the Manufacturing IPR for the duration of and at any time after the termination of this Agreement. For the avoidance of doubt, this information constitutes Confidential Information.

 

11.4                        All copyright and other Intellectual Property Rights in any artwork and origination work supplied by the Buyer or its nominee for the labelling, packaging and, where applicable, package inserts for the Products is and shall remain the property of the Buyer or its nominee absolutely.

 

11.5                        If during the Term of this Agreement the Supplier (or any agent or authorised sub-contractor of it) develops or creates (whether with or without others and whether jointly with the Buyer or rot) any Arising Intellectual Property Rights (including without limitation any modification, development or improvement to the Manufacturing IPR or the Products), such Arising Intellectual Property Rights shall, from the time of their creation and to the extent legally possible, vest in the Buyer and the Supplier shall forthwith disclose any such Arising Intellectual Property Rights to the Buyer and the Supplier shall promptly upon request by the Buyer execute such documents as are required (including the event so required any assignment) to record the Buyer’s entire right, title and interest to any and all such Arising Intellectual Property Rights.

 

11.6                        During the Term of this Agreement, the Supplier shall not assign or license any of the Supplier Existing Intellectual Property Rights to other parties for use in relation to the Products or similar to the products (the “Product Field”)

 

11.7                        During the Term of this Agreement, and whether in isolation or for or with others, the Supplier shall not carry out research or research and development work in the Product Field, or in fields closely connected to the Product Field, which is other than pursuant to this Agreement.

 

11.8                        11.8        To the extent that the Buyer requires or desires a licence from the Supplier of any Supplier Existing Intellectual Property Rights in order to use and exploit any Arising intellectual Property Rights, the Supplier hereby grants to the Buyer a non exclusive irrevocable, perpetual, world-wide, royalty-free, transferable and sub-licensable licence in respect thereof. For the avoidance of doubt, this licence shall survive the termination or expiry of this Agreement.

 

11.9                        Notwithstanding termination or expiry of this Agreement, in the event that the Supplier shall decide that it no longer wishes to apply for, prosecute or maintain any registered protection for any of the Supplier Existing Intellectual Property Rights in relation to the Product Field for any country it shall forthwith notify the Buyer in writing (and in any

 

16

 

event at least 90 days before the date upon which any payment or step would be required to be taken to continue prosecuting or maintaining any such protection). If within 60 days of receipt of such notice from the Supplier, the Buyer indicates to the Supplier that it wishes to take an assignment of such Existing Intellectual Property Rights, it shall so notify the Supplier who immediately shall assign,   with full title guarantee, the entire right, title and interest to such Existing Intellectual Property Rights to the Buyer for a nominal consideration. For the avoidance of doubt, this includes any registered protection which the company is entitled to claim priority from an earlier application at the end of the Paris Convention priority period,

 

11.10                 For any Existing Intellectual Property Rights and Arising Intellectual Property Rights owned by or to be owned by the Buyer, the Supplier shall provide all necessary assistance, free of charge, required by the Buyer to complete the registration of such rights with the competent authorities in anywhere designated by the Buyer.

 

11.11                 Without prejudice to a party’s right to challenge the validity of any registrations of Intellectual Property Rights owned by the other party, each party undertakes that it shall not at any time during the continuance of this Agreement do or suffer to be done any act or thing which would impair the rights of the other party in its Intellectual Property Rights relevant to this Agreement and further undertakes that it shall not represent that it has any title to or right of ownership in such Intellectual Property Rights of the other party.

 

11.12                 The Supplier shall at the request of the Buyer execute such registered user agreement in respect of the use of the trade marks of the Buyer or its Affiliates as the Buyer may reasonably require.

 

12.                               FORCE MAJEURE

 

12.1                        If either party is prevented or delayed in the performance of any of its obligations under this Agreement as a result of civil commotion, embargo, governmental legislation or regulation, riot, invasion, war, threat of or preparation for war, fire, explosion, storm, flood, earthquake, subsidence, epidemic or other natural physical disaster or other event beyond the reasonable control of a party that has not occurred as a result of its negligence or other act or omission and which was not reasonably foreseeable (“Force Majeure Event”), it shall notify the other party, in writing, of the same as soon as practicable, fully detailing the background to, and all relevant matters connected with, such Force Majeure Event, together with such evidence thereof that it reasonably can give and specifying the period for which such prevention or delay can reasonably be expected to continue. The affected party shall use its reasonable endeavours to remove or overcome such Force Majeure Event as quickly as possible and shall also use its reasonable endeavours to mitigate the impact of such Force Majeure Event of the other party. Subject to clause 12.2, if a party shall have fully complied with its obligations under this clause 12.1, it shall be excused from performance of its unfulfilled obligations under this Agreement from the date of such notice until such Force Majeure Event no longer pertains.

 

17

 

12.2                        If a Force Majeure Event prevents performance by a party of any obligations hereunder for a continuous period in excess of 8 weeks, the other party shall be entitled to terminate this Agreement by written notice at any time after such 8 week period provided the relevant Force Majeure Event remains subsisting at the time such notice is given.

 

13.                               TERMINATION

 

13.1                        This Agreement may be terminated at any time upon either party giving to the other 3 months notice in writing if the other party commits a material breach of the terms of this Agreement and (where such breach is capable of remedy) fails to remedy such breach within 30 days of receiving written notice from the other party specifying the breach and requiring its remedy.

 

13.2                        This Agreement may be terminated by either party immediately on written notice to the other, if;

 

13.2.1              the other party shall go into liquidation whether voluntary or compulsory or is dissolved or becomes insolvent or if a petition shall be presented or an order made for the appointment of an administrator or if a receiver, administrative receiver or manager shall be appointed over any part of its assets or undertaking which appointment is not dismissed within thirty (30) days of having been made, or

 

13.2.2              any distress, execution, sequestration or other process is levied or enforced upon or sued out against the property of the other party which is not discharged within thirty (30) days, or

 

13.2.3              the other is unable to pay its debts in the normal course of business.

 

14.                               CONSEQUENCES OF TERMINATION

 

14.1                        Upon termination or expiry of this Agreement for whatever reason: 14.1.1 the Supplier shall, at the request of the Buyer, use its reasonable endeavours to novate those contracts that provide for the supply of all raw materials, packaging components and other materials used exclusively in the production of the Buprenorphine API to the Buyer, or as the Buyer may direct and to meet any reasonable request from any competent authority and the Buyer required to transfer production or any registrations or licences or approvals to the Buyer, its Affiliates or any third party approved in writing by the Buyer; and 14.1.2 the Supplier shall, at the request of the Buyer release and make available for immediate collection by or on behalf of the Buyer (i) any raw materials and products which are stored at the FCP but have not yet been processed into Buprenorphine API, (ii) any raw materials or products which are in the process of being manufactured to make Buprenorphine API and (iii) all Naloxone ((i), (ii) and (iii) together the ‘Termination Stock”), the cost of each of (i), (ii) and (iii) to be calculated at the prices set out in Schedule One or the relevant raw materials at cost price and the Buyer shall pay the Supplier in accordance with clause

 

14.2                        The Buyer shall transfer such amounts due and payable for the Termination Stock to the Supplier’s nominated bank account (as specified by the Supplier at the time such

 

18

 

Termination Stock is to be transferred) within 30 days of the completion of the transfer of that Termination Stock.

 

14.3                        The terms and conditions relating to Finished Products which are ordered during the term of this Agreement but falling due for delivery after its expiry, will be governed (including as to cost) by the terms and conditions of the Copacker Supply Agreement between the Buyer and the Supplier which is to come into effect on Plant Day.

 

15.                               ASSIGNMENT AND THIRD PARTY RIGHTS

 

15.1                        Subject to clause 15.2, save that the Supplier may assign the benefit and burden of this Agreement to a new entity created within the group (and still under the ultimate control of the Supplier’s ultimate parent company, Reckitt Benckiser Group Plc) as part of a group reorganisation, neither the benefit nor the obligations of this Agreement or of any provision of it may be assigned or transferred by either party without the prior written consent of the other.

 

15.2                        Neither party shall exercise its right to assign this Agreement after the Demerger becomes effective.

 

15.3                        Any Affiliate of the Buyer may place orders under this Agreement and may accordingly in their own right enforce the provisions of this Agreement, as though it were the Buyer.

 

16.                               MISCELLANEOUS

 

16.1                        If there are any inconsistencies between the terms and conditions set forth in this Agreement and the terms and conditions set forth in any quotation, order, acknowledgement or invoice, the terms and conditions of this Agreement shall prevail.

 

16.2                        This Agreement, the Specification or any order may only be amended, modified or varied by the parties by an instrument in writing signed on behalf of each of the parties.

 

16.3                        The waiver by either party of any right under this Agreement or of any failure to perform or breach hereof by the other party shall not constitute or be deemed to be a waiver of any other or future right hereunder or of any other failure to perform or breach hereof by such other party, whether of a similar or dissimilar nature.

 

16.4                        All notices, consents, approvals or other communications hereunder shall be in writing and shall be delivered personally or by registered or certified mail, postage prepaid, or sent by fax, addressed to the authorised personnel at relevant party and at such address as each party shall from time to time notify to the other in writing. Any such notice, consent, approval and other communication shall be deemed given, in the case of personal delivery, on the date of delivery, in the case of mailing, on the fifth day following its deposit in the mail and in the case of a fax, on the next business day after the day of transmission provided the sender’s facsimile machine produces a report showing complete and successful transmission to the correct facsimile number.

 

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16.5                        The expiration or earlier termination of this Agreement will not operate to release either party hereto from its obligations under clauses 3.5, 9, 11 or 14 which obligations will survive such expiration or termination, or from any liability which has already accrued to the other party as of the date of expiration or termination or which may thereafter accrue in respect of any act, omission or default occurring prior to expiration or termination.

 

16.6                        Nothing in this Agreement shall constitute or be deemed to constitute the creation of a partnership, agency, or employer/employee relationship between the parties.

 

16.7                        This Agreement, together with the Specifications Technical Manual and the Schedules attached hereto, constitutes the entire agreement and understanding of the parties and supersedes any previous agreement between the Buyer and the Supplier and their Affiliates in relation to the subject matter of this Agreement.

 

16.8                        If any provision of this Agreement is held by any court or other competent authority to be invalid or unenforceable in whole or in part it shall be deemed severed from this Agreement and the validity of the other provisions and the remainder of the provision in question shall not be affected.

 

17.                               LAW AND JURISDICTION

 

17.1                        This Agreement shall be governed by and construed in accordance with the laws of England and Wales, save as to conflict of law provisions. If any dispute is not resolved between the parties, the matter may then be referred exclusively to the Courts of England and Wales who shall have exclusive jurisdiction over any such dispute.

 

20

 

The parties have executed two copies of this Agreement on the date of last signature set out below, each of which shall be considered an original

 

	
Signed:
    	
 
    	
 
    	
Signed:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Position:
    	
 
    	
 
    	
Position:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    
	
for and on behalf of
    	
 
    	
for   and on behalf of
    
	
 
    	
 
    	
 
    
	
Reckitt Benckiser Healthcare (UK) Ltd
    	
 
    	
 
    	
RB   Pharmaceuticals Ltd
    

 

21

 

SCHEDULE ONE

THE PRICES

 

The Price of the products shall be [***]

 

22

 

SCHEDULE TWO

THE PRODUCTS

 

Buprenorphine API meaning the buprenorphine active pharmaceutical ingredient (including without limitation, Base Buprenorphine and Buprenorphine Hydrochloride, each as identified in the common Technical Document System (TDS) used by the parties).

 

All formulations of the chemical compound Buprenorphine marketed and sold for use in humans including without limitation all products sold under the brand names BUPRENEX, SUBUTEX, SUBOXONE and TEMGESIC globally and any products sold pursuant to the non-exhaustive list of marketing authorisations as set out below (the “Finished Products”):

 

[***]

 

23

 

SCHEDULE THREE

THE SPECIFICATION

 

[***]

 

24

 

EXECUTION VERSION

 

IN WITNESS whereof the parties hereto have signed this Deed on the day and year first before written.

 

	
EXECUTED AS A DEED BY
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
RECKITT BENCKISER HEALTHCARE   (UK LIMITED
    	
)
    	
 
    	
/s/ W R Mordan
    
	
 
    	
 
    	
 
    	
 
    
	
acting by a director in   the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
/s/ Michelle Mordan
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
Michelle Mordan
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
Homemaker
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
[***]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
RB PHARMACEUTICALS LIMITED
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
acting by a director in   the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    

 

 

EXECUTION VERSION

 

IN WITNESS whereof the parties hereto have signed this Deed on the day and year first before written.

 

	
EXECUTED AS A DEED BY
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
RECKITT BENCKISER HEALTHCARE   (UK LIMITED
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
acting by a director in   the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EXECUTED AS A DEED BY
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
RB PHARMACEUTICALS LIMITED
    	
)
    	
 
    	
/s/ Richard Jameson
    
	
 
    	
 
    	
 
    	
 
    
	
acting by a director in   the presence of:
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
Director
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
/s/ Jean Jameson
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
Jean Jameson
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
Registered Nurse
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
[***]

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