Document:

Loan Sale and Assignment Agreement

  
 Exhibit 10.1

  
  

 

 

 LOAN SALE AND ASSIGNMENT AGREEMENT 

 
  

This LOAN SALE AND ASSIGNMENT AGREEMENT (this “Agreement”), dated as of September 24, 2010, is by
and between Bank of America, N.A., a national banking association (“Administrative Agent”), Regions Bank, an Alabama banking corporation (“Regions”; together with Administrative Agent, hereinafter collectively
referred to as “Assignor”) and 3630 Acquisition, Inc., a Georgia corporation (“Assignee”). 

RECITALS 
 A.    Administrative Agent, 3630 Peachtree Road Holdings Limited Partnership, a Georgia limited partnership (“ST Borrower”), and 3630 North Tower Residential, LLC, a
Georgia limited liability company (“NT Borrower”), entered into that certain Construction Loan Agreement dated as of July 3, 2007, as amended by that certain First Modification of Loan Agreement dated as of September 28,
2007, that certain Amendment to Construction Loan Agreement dated as of November 2007, and that certain Third Modification of Loan Agreement dated as of August 19, 2008 (collectively, the “Loan Agreement”; together with any and
all other documents evidencing, securing or pertaining to the Loans (as defined below), hereinafter collectively referred to as the “Loan Documents”, and each, a “Loan Document”), which Loan Agreement sets forth the
terms and conditions relating to (i) certain loans made by Assignor to ST Borrower in the maximum principal amount of $77,775,000.00 in connection with the ST Condo Project (the “ST Condo Loan”), (ii) certain loans made by
Assignor to NT Borrower in the maximum principal amount of $8,287,500.00 (the “NT Pad Loan”; together with the ST Condo Loan, hereinafter collectively referred to as the “Residential Loans”), and (iii) certain
loans made by Assignor to ST Borrower in the maximum principal amount of $101,065,000.00 in connection with the ST Office Project (the “ST Office Loan”; any and all documents evidencing, securing or pertaining to the ST Office Loan,
as may be amended from time to time, hereinafter collectively referred to as the “ST Office Loan Documents”; the Residential Loans and the ST Office Loan are collectively herein called the “Loans”). 

B.    The Residential Loans are guaranteed by Novare Group Holdings, LLC (“Novare”)
and Post Apartment Homes, L.P. (“Post”; together with Novare, hereinafter collectively referred to as “Guarantors”; Guarantors and Residential Borrowers (as defined below) are hereinafter collectively referred to as
“Obligors”). 
 C.    Administrative Agent is the administrative agent for
the Loans. 
 D.    NT Borrower, 3630 South Tower Residential, LLC (“Residential
Borrower”; NT Borrower and Residential Borrower are collectively herein called “Residential Borrowers”), Post, Novare, and Assignor contemplate executing breakout loan documents with respect to the Residential Loans, such
documents consisting of all applicable notes, deeds to secure debt, financing statements, guarantees and all documents and instruments related thereto listed on Schedule 1 attached hereto (collectively, the “Residential Loan
Documents”). 

  
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AGREEMENT 
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 E.
Assignee has offered to purchase from Assignor, and Assignor has agreed to sell to Assignee, all of Assignor’s right, title and interest in, to and under the Residential Loan Documents, subject to the terms and conditions contained herein.

 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises herein contained and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows: 
 1.    Purchase and Sale of the Residential
Loans.    Subject to the terms of this Agreement and in exchange for good and valuable consideration paid by Assignee, Assignee agrees to purchase, and Assignor agrees to sell, assign, transfer and set over to Assignee, all
the right, title and interest of Assignor in, to and under the Residential Loan Documents, without recourse, representation or warranty of any kind, express or implied, except as set forth herein. 

2.    LIMITATION ON ASSIGNOR’S REPRESENTATIONS AND
WARRANTIES.    EXCEPT AS PROVIDED HEREIN, ASSIGNOR MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO ASSIGNEE OR ANY OTHER PERSON WITH RESPECT TO THE RESIDENTIAL LOANS OR ANY RESIDENTIAL LOAN DOCUMENT, OR ANY
OTHER MATTER WITH RESPECT TO THE RESIDENTIAL LOANS OR ANY RESIDENTIAL LOAN DOCUMENT. SPECIFICALLY, AND NOT AS A LIMITATION OF ANY OTHER PROVISION HEREOF, ASSIGNOR MAKES NO REPRESENTATION OR WARRANTY OF ANY TYPE, KIND, CHARACTER OR NATURE, EXPRESS OR
IMPLIED, STATUTORY OR OTHERWISE, TO ASSIGNEE OR ANY OTHER PERSON WITH RESPECT TO THE CONDITION (FINANCIAL OR OTHERWISE) OF ANY OBLIGORS OR ANY OTHER PERSON; THE EXISTENCE OR NATURE OF ANY ASSET OR LIABILITY OF ANY OBLIGORS; THE PERFORMANCE OF THE
OBLIGATIONS OF ANY PARTY UNDER ANY OF THE RESIDENTIAL LOAN DOCUMENTS; THE ABILITY OF ANY OBLIGORS OR ANY OTHER PERSON TO PERFORM ITS OBLIGATIONS UNDER THE RESIDENTIAL LOAN DOCUMENTS; THE EXISTENCE, PERFECTION OR PRIORITY OF ANY LIEN SECURING
PERFORMANCE UNDER THE RESIDENTIAL LOAN DOCUMENTS; THE VALIDITY OR ENFORCEABILITY OF THE RESIDENTIAL LOANS OR ANY OF THE RESIDENTIAL LOAN DOCUMENTS; THE ADEQUACY OF THE COLLATERAL DESCRIBED IN THE RESIDENTIAL LOAN DOCUMENTS; THE COLLECTABILITY OR
VALUE OF THE RESIDENTIAL LOANS OR THE OTHER RESIDENTIAL LOAN DOCUMENTS; RIGHTS OF OFFSET, DEDUCTIONS, NEGOTIABILITY, OR HOLDER IN DUE COURSE STATUS, THE ACCURACY OR COMPLETENESS OF THE MATTERS DISCLOSED, REPRESENTED OR WARRANTED BY ANY PARTY TO ANY
OF THE RESIDENTIAL LOAN DOCUMENTS; THE EFFECT OF THIS AGREEMENT UPON THE RIGHTS OF ASSIGNEE OR ANY OTHER PERSON UNDER ANY RESIDENTIAL LOAN DOCUMENT; THE EXISTENCE OR NON-EXISTENCE OF ANY DEFAULT OR EVENT OF DEFAULT UNDER ANY OF THE RESIDENTIAL LOAN
DOCUMENTS; ANY CHARACTERISTIC OR OTHER MATTER AFFECTING THE PROPERTY (AS HEREINAFTER DEFINED), INCLUDING, WITHOUT LIMITATION, THE PRESENCE OF ANY TOXIC OR HAZARDOUS WASTE OR SUBSTANCE IN OR ON THE PROPERTY OR ANY OTHER ENVIRONMENTAL OR OTHER MATTERS
RELATED TO THE PHYSICAL CONDITION OF THE PROPERTY (BOTH SURFACE AND SUBSURFACE), WHETHER LATENT OR OBSERVABLE, ANY STRUCTURAL, ACCESS, LANDSCAPING, PARKING, SEWAGE OR UTILITY ELEMENTS OF THE COLLATERAL,

  
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AGREEMENT 
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THE QUALITY OF THE SOILS OR GROUND WATER, THE DEVELOPMENT POTENTIAL OF THE COLLATERAL, OR THE ACCURACY OF ANY PROPERTY DESCRIPTION OR ANY RECORDING INFORMATION RECITED HEREIN; THE EXISTENCE OF
ANY DEFENSE OR OFFSET RELATING TO THE RESIDENTIAL LOANS OR THE COMPLIANCE OF THE RESIDENTIAL LOANS WITH ANY LAWS; THE LEGAL CAPACITY OF ANY OBLIGOR, GUARANTOR OR MAKER; OR THE HABITABILITY OF THE COLLATERAL, ITS SUITABILITY FOR ANY PARTICULAR
PURPOSE, ITS ZONING OR COMPLIANCE WITH LAWS, OR ITS OPERATION OR MAINTENANCE FROM THE DATE HEREOF TO CLOSING. 
 SUBJECT
TO THE REPRESENTATIONS, WARRANTIES AND COVENANTS SET FORTH IN SECTION 4 OF THIS AGREEMENT, THE RESIDENTIAL LOAN DOCUMENTS ARE PURCHASED AND SOLD “AS IS, WHERE IS”, WITH ALL FAULTS AND WITHOUT RECOURSE. THE TERMS AND CONDITIONS SET
FORTH HEREIN ARE THE RESULT OF ARM’S-LENGTH BARGAINING BETWEEN PARTIES FAMILIAR WITH TRANSACTIONS OF THIS NATURE. THE PRICE, TERMS AND CONDITIONS REFLECT THE FACT THAT EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF ASSIGNOR, AS SET FORTH
BELOW, ASSIGNEE SHALL HAVE THE BENEFIT OF, AND IS RELYING UPON, NO STATEMENTS, REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, MADE BY OR ENFORCEABLE DIRECTLY AGAINST ASSIGNOR, ASSIGNOR’S AFFILIATES, OR ASSIGNOR’S EMPLOYEES,
CONSULTANTS, APPRAISERS, ATTORNEYS OR AGENTS. 
 3.    Assignee’s
Representations and Warranties. Assignee hereby represents and warrants to Assignor, and agrees, that: 

3.1    Assignee has all right, power, legal capacity and authority to execute and deliver this
Agreement and to perform hereunder and under each other agreement that Assignee may execute and deliver in connection herewith. 
 3.2    This Agreement constitutes the legal, valid and binding obligation of Assignee enforceable against Assignee in accordance with its terms and is entered into voluntarily by
Assignee. The transaction represented hereby is an arms-length transaction for fair value. 

3.3    The execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated by this Agreement do not and will not (i) violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Assignee or any property of
Assignee, (ii) result in a breach or constitute a default under any agreement to which Assignee is subject, or (iii) require any authorizations, consents, approvals, licenses, exemptions from or filings or registrations with any state,
commonwealth, federal, foreign, territorial, regulatory, or other governmental department, commission, board, bureau, agency or instrumentality. 
 3.4    Assignee has made such examination, review and investigation of Obligors and of the facts and circumstances necessary to evaluate Obligors, as Assignee has deemed necessary or
appropriate. 
 3.5    Assignee has received copies of each of the Loan Documents and has
made such examination, review and investigation of the Loans and the Loan Documents and of the related facts and circumstances necessary to evaluate the Loans and the Loan Documents as Assignee has deemed necessary or appropriate. 

  
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AGREEMENT 
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3.6    Assignee has not relied on any statement, representation or warranty, express or implied, of
Assignor or any of Assignor’s directors, officers, employees, attorneys or agents, regarding Obligors, Assignee having made its own independent evaluation of Obligors, the Residential Loans and each Loan Document. 

3.7    Assignee acknowledges that (i) Assignor is not responsible for any statement,
representation or warranty of Obligors, of any person acting or purporting to act on behalf of Obligors, or contained in any Loan Document, (ii) Assignor has made available to Assignee copies or originals of the Loan Documents,
(iii) Assignee possesses such information as Assignee deems necessary or appropriate in order for Assignee to evaluate Obligors, and (iv) there may exist events of default under the Loan Documents. 

3.8    Assignee is acquiring the Residential Loans for its own account and not with a view to, or for
sale in connection with, any public distribution thereof, and Assignee has no present intention of making any distribution of the Residential Loans or any Residential Loan Document in a manner which would violate any applicable securities or banking
laws. 
 3.9    Assignee is not (i) an “employee benefit plan” as defined in
Section 3(3) of and governed by the Employee Retirement Income Security Act of 1974, as amended (ERISA), or (ii) engaging in this transaction directly on behalf of an employee benefit plan as defined therein. 

3.10    Assignee is an “Accredited Investor” as defined in Rule 501(a) of Regulation D
under the Securities Act of 1933, as amended, and is a sophisticated investor. 

3.11    Assignee is not a “Foreign Person” within the meaning of the Federal Foreign
Investment in Real Estate Tax Act, as amended. 
 3.12    ASSIGNEE UNDERSTANDS AND
ACKNOWLEDGES THAT THE PURCHASE OF THE RESIDENTIAL LOANS INVOLVES A HIGH DEGREE OF RISK AND MAY NOT BE SUITABLE FOR THE ASSIGNEE UNLESS THE ASSIGNEE IS OF SUBSTANTIAL MEANS AND CAN AFFORD THE LOSS OF THE CAPITAL. ASSIGNEE ACKNOWLEDGES AND AGREES THAT
ASSIGNEE HAS RELIED ON ITS OWN EXAMINATION OF THE RESIDENTIAL LOANS TO DETERMINE THE MERITS AND RISKS INVOLVED. ASSIGNEE ACKNOWLEDGES AND AGREES THAT IT HAS RELIED ON ITS OWN COUNSEL AS TO THE VALIDITY AND ENFORCEABILITY OF THIS AGREEMENT, THE
TRANSFER DOCUMENTS (AS HEREINAFTER DEFINED) AND THE RESIDENTIAL LOAN DOCUMENTS. ASSIGNEE ACKNOWLEDGES AND AGREES THAT IT HAS NOT RELIED ON ANY ANALYSIS OF THE RESIDENTIAL LOANS OR DOCUMENTATION CONCERNING THE RESIDENTIAL LOANS PREPARED BY ASSIGNOR,
AND HAS CONDUCTED ITS OWN INVESTIGATION OF THE RESIDENTIAL LOANS. 
 3.13    ASSIGNEE
ACKNOWLEDGES THAT IT HAS AGREED TO RECEIVE THE TRANSFER DOCUMENTS AS OF THE DATE OF CLOSING, AND, SUBJECT TO SECTION 7 BELOW, ASSIGNEE ASSUMES ANY AND ALL RISKS ARISING BECAUSE OF THE TRANSFER OF THOSE TRANSFER DOCUMENTS, AS OF CLOSING. 

4.    Assignor’s and Administrative Agent’s Representations and Warranties.

 4.1    Each Assignor for itself alone hereby represents and warrants to Assignee and
agrees that: 

  
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AGREEMENT 
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a.    Assignor is the sole legal and beneficial owner of its interest in the Loan Documents. Except
for the partial assignment of the Loan Documents from Administrative Agent to Regions Bank, Assignor has not assigned or otherwise transferred to any third party any rights with respect to its interest in the Loans or any rights to the indebtedness
represented by the Loan Documents or any rights to its interest in the collateral securing the Loans and has not released any collateral securing the Loans or modified or terminated its security interest in such collateral. 

b.    Assignor has all right, power, legal capacity and authority to execute and deliver this
Agreement and to perform hereunder and under each other agreement that Assignor may execute and deliver in connection herewith. 
 c.    The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated by this Agreement do not and will not (i) violate any law,
rule, regulation, order, writ, judgment, injunction, decree, determination or award presently in effect having applicability to Assignor or any property of Assignor, (ii) result in a breach or constitute a default under any agreement to which
Assignor is subject, or (iii) require any authorizations, consents, approvals, licenses, exemptions from or filings or registrations with any state, commonwealth, federal, foreign, territorial, regulatory, or other governmental department,
commission, board, bureau, agency or instrumentality. 
 d.    This Agreement constitutes
the legal, valid and binding obligation of Assignor enforceable against Assignor in accordance with its terms and is entered into voluntarily by all parties. The transaction represented hereby is an arms-length transaction for fair value.

 e.    Assignor is not a “Foreign Person” within the meaning of the Federal
Foreign Investment in Real Estate Tax Act, as amended, and consequently is not subject to withholding in this transaction. 
 4.2    Administrative Agent hereby represents and warrants to its actual knowledge to Assignee and agrees that: 

a.    According to Administrative Agent’s records, the unpaid principal balance of the ST Condo
Loan is $69,317,276.88, and accrued interest has been paid to, but not through or after, August 1, 2010. 

b.    As of September 22, 2010, the accrued but unpaid interest at the ST Condo Note’s
stated rate of interest is One Hundred Fifty-Nine Thousand Nine Hundred Ninety-Five and 58/100 Dollars ($159,995.58) and continues to accrue at a per diem rate of Three Thousand Ninety-Five and 21/100 Dollars ($3,095.21). 

c.    According to Administrative Agent’s records, the unpaid principal balance of NT Pad Loan
is $8,153,140.37, and accrued interest has been paid to, but not through or after, July 31, 2010. 

d.    As of September 22, 2010, the accrued but unpaid interest at the NT Pad Note’s
stated rate of interest is Nineteen Thousand Eighty-Five and 55/100 Dollars ($19,085.55) and continues to accrue at a per diem rate of Three Hundred Sixty-Four and 06/100 Dollars ($364.06). 

  
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AGREEMENT 
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5.    Closing. Assignor and Assignee shall consummate the purchase and sale of the Residential
Loans (the “Closing”) on the date of execution of this Agreement (the “Closing Date”), but in any event not later than September 23, 2010, upon satisfaction of all the conditions set forth in this
Section 5. The Closing shall occur either (i) through an escrow with a national title insurance company mutually agreed upon by the parties hereto, under which all monies and documents required to be delivered hereunder shall be
deposited in escrow in accordance with reasonable and customary escrow closing instructions delivered jointly or separately by the parties hereto, or (ii) at the offices of Assignor’s counsel, Troutman Sanders LLP, at 600 Peachtree Street,
N.E., Suite 5200, Atlanta, Georgia 30308-2216. 
 5.1    At the Closing, Administrative
Agent agrees to execute and deliver to Assignee the following: 
 a.    A fully executed
Assignment of Security Documents for the ST Condo Loan and the NT Pad Loan in the form attached hereto as Exhibit A (collectively, the “Assignment of Security Documents”); 

b.    A fully-executed Allonge from each Assignor for each of the ST Condo Loan and the NT Pad Loan
in the form attached hereto as Exhibit B with the original Notes; 
 c.    A
fully-executed Assignment of Loan Documents for the ST Condo Loan and the NT Pad Loan in the form attached hereto as Exhibit C (the “General Assignment”); 

d.    Originals of the Residential Loan Documents, if in Assignor’s possession, endorsed or
otherwise transferred by Administrative Agent, where appropriate, without any recourse, representation or warranty except as expressly provided in this Agreement; 

e.    Any UCC-3 form required to evidence the transfer to Assignee of any security interest held by
Assignor in the personalty included in the Property (as defined below) (the “UCC Assignments”; together with the Assignment of Security Documents and the General Assignment, hereinafter collectively referred to as the
“Transfer Documents”); and 
 f.    Letters to Residential Borrowers to
notify Residential Borrowers that the Residential Loans have been purchased by Assignee and directing that all sums due and payable on the Residential Loans from and after the Closing should be made to Assignee, which letters shall be substantially
in the form of Exhibit D, attached hereto and incorporated herein by this reference (collectively, the “Borrower Notice Letters”); 

g.    An incumbency certificate from an assistant secretary of Administrative Agent; and 

h.    Such other documents and instruments as may be legally necessary or otherwise reasonably
required to carry out the terms of this Agreement. 
 5.2    At the Closing, Assignee agrees
to (a) pay to Assignor $49,792,917.25 (the “Purchase Price”) by wire-transfer of immediately available funds, and (b) execute and deliver to Assignor any such documents and instruments as may be legally necessary or
otherwise reasonably required to carry out the terms of this Agreement. 
 5.3    The
Closing shall also be conditioned on the occurrence of the following: 

  
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AGREEMENT 
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a.    Execution and delivery of the Residential Loan Documents. 

b.    Recording of the Declaration of Condominium for 3630 Peachtree, a Master Condominium.

 6.    Rescinded, Avoided or Returned Payments.    (a) Upon the
Closing Date, Assignee agrees that, if any transfer or payment made to Assignor by either the Residential Borrower, the NT Borrower or any other Obligor prior to the Closing in respect of any obligation under the Residential Loan Documents is, in
whole or in part, rescinded, voided, or must otherwise be returned by Assignor in connection with any bankruptcy, reorganization, receivership, insolvency, or other similar proceedings with respect to any Obligor (each such rescinded, voided,
or otherwise returned amount of each such transfer or payment being referred to herein as the “Returned Payment Amount”), then, no later than ninety (90) days after Assignee’s receipt of notice in writing from Assignor
specifying such Returned Payment Amount and requesting Assignee to purchase Assignor’s claims against the Residential Borrower, the NT Borrower or any Obligor for such Returned Payment Amount, Assignee shall purchase from Assignor such claim
for such Returned Payment Amount for cash in an amount equal to one hundred percent (100%) of such Returned Payment Amount, together with interest, commencing on the date ninety (90) days after Assignee’s receipt of such notice
from Assignor and ending on the date of such purchase, at the prime rate in effect from time to time, with such amounts to be paid to Assignor by wire transfer of immediately available funds. Assignor shall assign such claim to Assignee
without recourse, representation or warranty of any kind (other than typical warranties of title as to such claim, to Assignor’s actual knowledge), against receipt of such funds from Assignee. Assignor agrees to provide Assignee with
notice of any Returned Payment Amount promptly after any officers responsible for this account obtain knowledge thereof. Assignor further agrees that Assignee reserves the right to defend, at its own cost and expense, the rescission of any such
transfer or payment during the ninety (90) day period referred to above. 

(b)    Assignee shall indemnify Assignor for all losses suffered by Assignor in the event Assignor
pays or disgorges all or any portion of the Purchase Price paid by Assignee to Assignor as a result of any allegation or claim arising under any law, including bankruptcy or insolvency law, on any theory, including fraudulent transfer or preference,
and whether by order of any court or by settlement in connection with a bankruptcy or insolvency proceeding of any Obligor; provided, however, that such liability to indemnify Assignor shall not exceed the Purchase Price. Assignor shall have a right
in any such proceeding to assert a claim in an amount equal to the Purchase Price. Subject to the cap set forth in this grammatical paragraph, Assignor’s indemnity claim shall include reasonable attorneys’ fees, costs and expenses actually
paid or incurred by Assignor in connection with any such event. The indemnity obligations of Assignee contained in this Section 6(b) shall terminate on the ninety-first (91st) day following the date of this Agreement, provided that
on such date a Bankruptcy Event (as defined below) has not occurred; notwithstanding the foregoing, if a Bankruptcy Event has occurred within ninety-one (91) days following the date of this Agreement, the indemnity obligations of Assignee
contained in this Section 6(b) shall terminate thirty (30) days after the expiration of any applicable statute of limitations applicable to the assertion of a claim demanding payment, disgorgement, turnover or avoidance against
Assignor on the basis of any applicable law pertaining to preferences, unless prior to such date, Assignor has asserted in writing against Assignee a claim for indemnity relating to any such preference claim. As used herein, the term
“Bankruptcy Event” means that any Obligor has filed a voluntary petition in bankruptcy or that an involuntary petition has been filed against any Obligor. 

7.    Further Assurances. For the period from and after the Closing until December 31,
2010, and at Assignee’s sole cost and expense, Assignor agrees to respond to reasonable inquiries related to the 

  
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AGREEMENT 
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Residential Loans, to deliver to Assignee any original loan documents relating to the Residential Loans that Assignor has in its possession, to execute and deliver such documents as might
reasonably be requested by Assignee to fully effectuate the transactions contemplated by this Agreement and to provide copies of non-privileged materials related to the Residential Loans that are in the possession of Assignor, subject, however, to
the limitations of any confidentiality or nondisclosure agreement to which Assignor may be bound, and provided that Assignor will not be required to deliver or make available to Assignee any appraisals, property condition reports, environmental
reports, strategic plans for the Property, internal analyses, attorney and accountant work product, attorney-client privileged documents, or other information in the possession or control of Assignor which Assignor reasonably deems confidential or
proprietary. With respect to any and all documentation and materials provided by Assignor pursuant to this Section 7, Assignee acknowledges and agrees that Assignor makes no representation or warranty of any nature whatsoever, express or
implied, with respect to the ownership, enforceability, accuracy, adequacy or completeness or otherwise of any of such records, evaluations, data, investigations, reports or other materials. 

8.    Governing Law. This Agreement and all documents executed in connection herewith shall be
deemed contracts made under the laws of the State of Georgia and shall be construed and enforced in accordance with and governed by such laws. 
 9.    Claims Against Assignor; Release; Covenant Not to Sue. (a) Assignee agrees that no claim may be made by Assignee against Assignor or its shareholders, directors,
officers, employees or agents for any special, indirect or consequential damages related to any breach or wrongful conduct (whether the claim therefore is based on contract, tort or duty imposed by law) in connection with, arising out of or in any
way related to the transactions contemplated and relationship established by this Agreement, any other document executed in connection herewith or any of the other loan documents, or any act, omission or event occurring in connection therewith.

 (b)    Subject to the last sentence of this Section 9(b), Assignee hereby
further RELEASES AND DISCHARGES BANK OF AMERICA, N.A., REGIONS BANK, and their predecessors, successors, assigns, officers, managers, directors, shareholders, employees, agents, attorneys, representatives, parent corporations, subsidiaries, and
affiliates (hereinafter all of the above collectively referred to herein as the “Released Parties”) from any and all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities,
accounts, offsets, rights, actions and causes of action of any nature whatsoever including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity (including without
limitation, claims of fraud, duress, mistake, tortuous interference, usury, control, violation of any consumer protection or truth-in-lending laws or regulations such as the Equal Credit Opportunity Act, and disclosure of confidential or proprietary
information), whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether presently accrued or to accrue hereafter, whether absolute or contingent, and whether or not heretofore asserted, for or because of
or as a result of any act, omission, communication, transaction, occurrence, representation, promise, damage, breach of contract, fraud, violation of any statute or law, commission of any tort, or any other matter whatsoever or thing done, omitted
or suffered to be done by the Released Parties which has occurred in whole or in part, or was initiated at any time up to and immediately preceding the moment of the conveyance and delivery of the Residential Loan Documents to Assignee (insofar as
the same arise out of or relate to the Loans, the Residential Loans, the Loan Documents, the Residential Loan Documents, the ST Office Loan and the ST Office Loan Documents). The foregoing release is not applicable to (i) any claim based on the
falseness or incorrectness in any material respect as of the date of Closing of any of the representations, warranties, covenants or other 

  
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AGREEMENT 
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agreements of Assignor contained in this Agreement and (ii) any claim based on Assignor’s failure to perform any covenant set forth in this Agreement. 

(c)    Subject to the last sentence of this Section 9(c), Assignee hereby covenants, not
to institute, file, perpetuate, join in or maintain any suit, claim, action or proceeding of any kind or nature, at law, in equity, in any administrative proceeding or otherwise, against any one or more of the Released Parties for any liability,
claim, demand, action or cause of action, based upon or arising out of the Loans, the Residential Loans, the Loan Documents, the Residential Loan Documents, the ST Office Loan or the ST Office Loan Documents. The foregoing release is not applicable
to (i) any claim based on the falseness or incorrectness in any material respect as of the date of Closing of any of the representations, warranties, covenants or other agreements of Assignor contained in this Agreement and (ii) any claim
based on Assignor’s failure to perform any covenant set forth in this Agreement. 

10.    WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT LEGALLY PERMISSIBLE, THE PARTIES HERETO
WAIVE TRIAL BY JURY IN RESPECT OF ANY “DISPUTE” AND ANY ACTION ON SUCH “DISPUTE”. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE AND EACH PARTY HEREBY REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE
BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT. EACH PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF
THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL. ASSIGNEE REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS
HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. “Dispute” means any controversy, claim or dispute between or among
the parties to this Agreement, including any controversy, claim or dispute arising out of or relating to (a) any related agreements or instruments, or (b) the transaction contemplated herein or therein (including any claim based on or
arising from an alleged personal injury or business tort). 
 11.    Indemnity.
Assignee and the Assignee’s successors and assigns hereby jointly and severally indemnify and hold the Assignor and any parent, subsidiary, participant, co-lender and affiliate of the Assignor, and their respective successors and assigns,
harmless from and against any and all liabilities, claims, actions or causes of action, assessments, losses, fines, penalties, costs, losses, damages and expenses, including attorney’s fees (including, without limitation, contingency or similar
fee arrangements) and expert witness fees, sustained or incurred by the Assignor, its parent, subsidiaries, participants, co-lenders or affiliates or their respective successors and assigns, as a result of, or arising out of, or by virtue of:
(a) the inaccuracy of any representation or warranty made by the Assignee to the Assignor herein; or (b) a breach by the Assignee of any of the covenants of this Agreement to be performed by the Assignee; or (c) any and all
liabilities arising out of any claim based upon breach of contract or the tortious or unlawful acts or omissions of the Assignee in regard to the Residential Loans; or (d) any and all liabilities arising out of any claim made by any person,
organization or association against Administrative Agent or Regions Bank in each of their capacities as a prior lender under the Residential Loans, if such claim arose from facts occurring after the Closing Date. The Assignee may defend any such
claim or cause of action brought or asserted against the Assignor arising out of any of the foregoing set forth in subsections (a)-(d) of this Section at the expense of the Assignee, with counsel reasonably approved by the Assignor.
Alternatively, the Assignee may call upon the Assignor to defend any such action at the Assignee’s sole cost and expense. 

  
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AGREEMENT 
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The Assignee may, with Assignor’s consent (which shall not be unreasonably withheld) adjust, settle, or compromise any such claim or cause of action made upon or brought against the
Assignor, and the Assignee shall indemnify the Assignor for any such amounts adjusted, settled or compromised, as well as all costs and expenses (including attorneys’ fees (including without limitation, contingency or similar fee arrangements))
incurred in connection therewith. The Assignee acknowledges and agrees that the Assignee’s liability and obligations hereunder are unconditional, unlimited and shall continue in full force and effect at all times hereafter, including, without
limitation, following any subsequent assignment by the Assignee of the Residential Loan Documents, or any of them, unless specifically terminated in writing by a duly authorized officer of the Assignor. 

12.    Intentionally Omitted. 

13.    Notices. Any notice pursuant to this Agreement shall be given in writing by
(a) personal delivery, or (b) expedited delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d) prepaid telegram, telex or telecopy
(provided that such telegram, telex or telecopy is confirmed by expedited delivery service or by mail in the manner previously described), sent to the intended addressee at the address set forth below, or to such other address or to the attention of
such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given either at the time of personal delivery, or, in the case of expedited delivery service or mail, as of the
date of first attempted delivery at the address and in the manner provided herein, or, in the case of telegram, telex or telecopy upon receipt. Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to
this Agreement shall be as set forth on the signature pages attached to this Agreement. 

14.    Environmental Matters. Assignee expressly acknowledges that there may be certain
environmental issues and/or risks with respect to the real property described in the Residential Loan Documents as securing the Residential Loans (together with all buildings, structures and improvements situated thereon, the
“Property”). Assignor has no information other than that found in the Loan files regarding the environmental condition of the Property. Assignee has been expressly advised by Assignor to conduct an independent investigation
and inspection of the Property utilizing such experts as Assignee deems to be necessary in order to make an independent assessment of all environmental liability and risk with respect to the Property. 

14.1    Assignor has no information and makes no representation as to whether the Property is
contaminated by hazardous materials as defined or as otherwise governed by applicable local, state and federal law, including common law (“Hazardous Materials”), or is otherwise environmentally impaired. 

14.2    Except as provided in this Agreement, Assignor makes no representations or warranties and
expressly disclaims all implied warranties regarding: the past, present or future environmental condition, impairment, or Hazardous Materials contamination of the Property and any real property adjacent to or in the vicinity of the Property and any
human health issues or concerns; any local, state, or federal government actions or proceedings regarding the Hazardous Materials contamination or environmental impairment of the Property or any real property adjacent to or in the vicinity of the
Property; the cost of remediating or otherwise removing or eliminating any Hazardous Materials or environmental impairment of the Property or any real property adjacent to or in the vicinity of the Property; whether any tenants of the Property or
owners, users or tenants of any real property adjacent to or in the vicinity of the Property have any claims or have suffered any damages, for personal injury or property damage, as a direct or indirect result of the Hazardous Materials
contamination and environmental impairment of the Property; 

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 10 

 
and, any existing building code violations present on the Property. IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT, SUBJECT TO THE REPRESENTATIONS, WARRANTIES AND COVENANTS SET FORTH IN SECTION
4 OF THIS AGREEMENT, ASSIGNEE IS PURCHASING THE RESIDENTIAL LOANS “AS IS, WHERE IS”, WITH ALL FAULTS AND WITHOUT RECOURSE, AND THAT ASSIGNOR IS MAKING NO REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, BY OPERATION OF LAW OR
OTHERWISE, WITH RESPECT TO ANY ENVIRONMENTAL MATTER OR CONDITION OF THE PROPERTY, WHETHER LATENT OR OBSERVABLE, THE QUALITY OF THE SOILS OR GROUND WATER AT THE PROPERTY, OR ANY APPLICABLE LOCAL, STATE AND FEDERAL LAW, INCLUDING COMMON LAW OR OTHER
LAWS OR REGULATIONS RELATED TO HAZARDOUS MATERIALS. 
 14.3    It is Assignee’s sole
responsibility to investigate, and before entering into this Agreement Assignee has, to its satisfaction, investigated the past, present and future environmental condition of the Property and any real property adjacent to or in the vicinity of the
Property. It is Assignee’s sole responsibility to take whatever action Assignee deems necessary to protect its interests both before and after the Closing Date with respect to Assignee’s potential liability for any present or future
Hazardous Materials contamination and environmental impairment of the Property and any real property adjacent to or in the vicinity of the Property or any claims for personal injury or property damage as a result thereof. 

15.    Tax Reporting. On the Closing Date, Assignor shall be relieved of, and Assignee shall
assume all responsibility for, any tax reporting required with respect to the Residential Loans, including, without limitation, any reporting which may be required with respect to debt forgiveness. 

16.    Assumption of Obligations. The Assignee agrees to be bound, after the Closing Date, by
the terms of the Residential Loan Documents and hereby assumes, as of the Closing Date, all obligations of the Assignor thereunder, including but not limited to all loan administration and servicing obligations. Without in any way limiting the
generality of the foregoing sentence, on and after the Closing Date, Assignee shall assume, and Assignee agrees that Assignor shall be released from, all obligations to make any further advances of proceeds of the Residential Loans and any and all
responsibility for any and all other unfunded commitments under the Residential Loans, as well as all servicing responsibilities, if any, for the Residential Loan Documents. Assignee shall assume all such responsibilities for servicing, including,
without limitation, giving any notices to any borrower, guarantor or any other person and maintaining or accounting for any escrow for and payment of any real estate taxes, insurance premiums, special assessments and any other amounts. Assignee
agrees that it shall not hold itself out as Bank of America at any time. 

17.    Reimbursement for Use of Assignor’s Agents. In the event of litigation with
respect to either of the Residential Loans in which the Assignor, or any of the Assignor’s employees, agents or attorneys, are requested or required, by subpoena, court order, or otherwise, to perform any acts, including but not limited to
testifying in litigation, preparing responses to subpoenas or other legal process or pleadings, and/or performing any review of public or private records such as tracing funds, whether said litigation is commenced by the Assignee, any Obligor, or
any other party, the Assignee shall indemnify and promptly reimburse the Assignor for all reasonable costs and expenses incurred in connection therewith; provided, however, that the foregoing shall not extend to attorney’s fees, costs or
expenses incurred by the Assignor in connection with any dispute arising out of or relating to this Agreement. 

18.    Transfer and Recordation Taxes; Responsibility for Recording. The Assignee shall
promptly and diligently record, at the Assignee’s sole expense, all assignments and notices, including, without limitation, the Assignment of Security Documents and the UCC Assignment, necessary to effect the

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 11 

 
transaction described in this Agreement. The Assignee shall be responsible for, and shall pay when due and payable, all transfer, filing and recording fees and taxes, costs and expenses, with
respect to the filing or recording of any document or instrument contemplated hereby. The Assignee shall bear sole responsibility for recording all assignments, instruments or other documents delivered to the Assignee pursuant to this Agreement. The
Assignee shall bear full responsibility for and shall pay all costs associated with transferring and obtaining any endorsements to any title insurance policy included in the Residential Loan Documents in connection with this transaction, if
available. The Assignee hereby indemnifies and holds the Assignor harmless from and against any and all claims, liability, costs, and expenses arising out of or in connection with the failure of the Assignee to record such assignments and notices,
and to pay any such amounts, on a timely basis. 
 19.    Broker. Assignee hereby
represents to Assignor that it has not discussed this Agreement or the subject matter thereof with any broker, agent, or salesman, so as to create any legal right in any such broker, agent, or salesman, to claim a commission, fee or other
compensation with respect to the conveyance of the Residential Loans. Assignor hereby represents to Assignee that it has not discussed this Agreement or the subject matter thereof with any broker, agent, or salesman. Assignor hereby agrees to
indemnify and hold Assignee harmless from and against any and all liability, loss, cost, damage and expense, including attorneys’ fees and costs of litigation, shall ever suffer or incur because of any claim by any agent or broker, whether or
not meritorious, for any fee, commission or other compensation with regard to this Agreement or the sale and purchase of the Residential Loans and arising out of any acts or agreements of Assignor. Likewise, Assignee hereby agrees to indemnify and
hold Assignor free and harmless from and against any and all liability, loss, cost, damage and expense, including attorneys’ fees and costs of litigation, Assignor shall ever suffer or incur because of any claim by any agent or broker, whether
or not meritorious, for any fee, commission or other compensation with respect to this Agreement or the sale and purchase of the Residential Loans and arising out of the acts or agreements of Assignee. The provisions of this Section shall survive
the Closing or any termination of this Agreement. 
 20.    Mandatory Arbitration.
Any controversy or claim between or among the parties hereto arising out of or relating to this Agreement or any related agreements or instruments, including any claim based on or arising from an alleged tort, shall be determined by binding
arbitration in accordance with the Federal Arbitration Act (or if not applicable, the applicable state law), Title 9 of the U.S. Code and the Arbitration Rules for Commercial Financial Disputes (the “Rules”) of the American
Arbitration Association (the “AAA”), and the “Special Rules” set forth below. In the event of any inconsistency, the Special Rules shall control. Judgment upon any arbitration award may be entered in any court having
jurisdiction. Any party to this Agreement may bring an action, including a summary or expedited proceeding, to compel arbitration of any controversy or claim to which this Agreement applies in any court having jurisdiction over such action.

 20.1    Special Rules. The arbitration shall be conducted in Fulton County,
Georgia, and administered by AAA who will appoint an arbitrator. All arbitration hearings will be commenced within five (5) days of the demand for arbitration; further, the arbitrator shall only, upon a showing of a cause, be permitted to
extend the commencement of such hearing for up to an additional thirty (30) days. 

20.2    Reservations of Rights. Nothing in this Agreement shall be deemed to (i) limit
the applicability of any otherwise applicable statutes of limitation or repose and any waivers contained in this Agreement; or (ii) limit the right of any party hereto (A) to exercise self-help remedies such as (but not limited to)
set-off, or (B) to foreclose against any real or personal property collateral, or (C) to obtain from a court provisional or ancillary remedies such as (but not limited to) injunctive relief or the appointment of a receiver. Any party may
exercise such self-help rights, foreclose upon such property, or obtain such 

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 12 

 
provisional or ancillary remedies before, during or after the pendency of any arbitration proceeding brought pursuant to this Agreement. Neither exercise of self-help remedies nor the institution
or maintenance of an action for foreclosure or provisional or ancillary remedies shall constitute a waiver of the right of any party, including the claimant in any such action, to arbitrate the merits of the controversy or claim occasioning resort
to such remedies. 
 21.    Assignment. Assignee shall not assign the Transfer
Documents, the Residential Loans or the Residential Loan Documents to any other party, other than an Affiliate (as defined in the Residential Loan Documents), for the term of each of said loans. Assignee agrees that any obligations or liabilities of
Assignor and Administrative Agent under this Agreement are not assignable, and neither Administrative Agent nor either Assignor shall have any obligation or liability to any post-closing assignee, and Assignee will indemnify Administrative Agent and
each Assignor from and against any claims made by such assignee. 

22.    Non-Merger. It is the intention of the parties hereto that the Residential Loan
Documents shall remain in full force and effect after the delivery of Transfer Documents and that the interest in the Residential Loans described herein created in Assignee pursuant to the Transfer Documents shall not be merged with the interest of
Obligors under the Residential Loan Documents, but that such interests shall remain separate and distinct and that the liens of the Assignee created by the Residential Loan Documents shall be and remain at all times a valid and continuous lien.
Nothing contained herein shall serve to release the lien and security interest created by the Residential Loan Documents. 
 23.    Miscellaneous Provisions. 

23.1    This Agreement may be signed in counterparts, each of which shall be an original and each of
which taken together shall constitute one agreement. 
 23.2    This Agreement may not be
changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

23.3    This Agreement shall be valid and binding when executed by the Assignee and the original or
facsimile thereof is received and accepted by the Assignor. The executed Agreement may be sent via facsimile to the facsimile numbers set forth in the signature blocks below. Facsimile signatures shall be deemed valid and binding to the same extent
as an original signature. 
 23.4    The agreements, representations and warranties of the
parties contained herein shall survive the consummation of the transactions contemplated hereby. 

23.5    This Agreement shall be binding upon, inure to the benefit of, and be enforceable by the
parties hereto, their respective successors and assigns. Except for the Released Parties, each of which are express third party beneficiaries with respect to the provisions in Section 9 of this Agreement, no other person or entity shall
be entitled to claim any right or benefit hereunder, including, without limitation, the status of a third party beneficiary hereunder. 
 23.6    Time is of the essence in the execution and performance of this Agreement and each provision hereof. 

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 13 

 23.8    The parties hereto acknowledge that each party
and its counsel have reviewed this Agreement and the parties hereby agree that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or any amendments or exhibits hereto. 
 23.9    This Agreement and any
assignments or other documents executed in connection with this Agreement, are intended by the parties as the final expression of their agreement and, therefore, incorporate all negotiations of the parties hereto and are the entire agreement of the
parties hereto. The parties hereto acknowledge that they are relying on no written or oral agreement, representation, warranty, or understanding of any kind. 
 23.10    In case any provision in this Agreement shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Agreement and the validity,
legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

23.11    Each of Assignor and Assignee shall bear their own costs and expenses, including reasonable
attorney’s fees actually incurred in negotiating, closing and carrying out the transactions contemplated by this Agreement. The Loan Documents shall govern with respect to Borrower’s obligations regarding costs and expenses. 

23.12    References to Articles, Sections and Exhibits are, unless specified otherwise, references to
articles, sections and exhibits of this Agreement. Words of any gender shall include each other gender. All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate
otherwise. Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined. References to “persons”
shall include both natural persons and legal entities, including public or governmental bodies, agencies or instrumentalities. Captions and headings in this Agreement are for convenience only and shall not affect the construction of this Agreement.

 23.13    Assignor agrees that no claim may be made by Assignor against Assignee,
Residential Borrower, NT Borrower, Post or Novare, or any of their respective shareholders, directors, officers, employees or agents for any punitive damages related to any breach or wrongful conduct (whether the claim therefore is based on
contract, tort or duty imposed by law) in connection with, arising out of or in any way related to the transactions contemplated and relationship established by this Agreement, any other document executed in connection herewith. 

[NO FURTHER TEXT ON THIS PAGE] 

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 14 

  
 IN
WITNESS WHEREOF, the undersigned have duly executed this Loan Sale and Assignment Agreement as of the date first above written. 
  

			
	Assignor:
	
	BANK OF AMERICA, N.A., as Lender and Administrative Agent
		
	 By:
	 	 /s/ William Stone        

	 Name:
	 	 William Stone

	 Title:
	 	 Vice President

		
	 Address:
	 	 Bank of America Plaza
 7th
Floor
 600 Peachtree Street, N.E.

Atlanta, Georgia 30308

	Attention:	 	 Michael D. Stone

	 Phone:
	 	 (404) 607-4101

	Fax:	 	 (404) 607-4145

	
	REGIONS BANK
		
	 By:
	 	 /s/ Mary Hughes        

	 Name:
	 	 Mary Hughes

	 Title:
	 	 SVP

		
	 Address:
	 	 One Glen Parkway
 Suite 400
 Atlanta, Georgia 30328

	 Phone:
	 	 (770) 206-5776

	Fax:	 	 (770) 673-5863

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 15 

  
 
			
	Assignee:
	
	3630 ACQUISITION, INC., a Georgia corporation
		
	 By:
	 	 /s/ Sherry W. Cohen

	 Name:
	 	 Sherry W. Cohen

	 Title:
	 	 EVP

		
	 Address:
	 	 One Riverside, Suite 800
 4401 Northside Parkway
 Atlanta, GA 30327-3057

Attn: Sherry W. Cohen
 Phone:
(404) 846-5025
 Fax: (404) 504-9388

  
 LOAN SALE AND ASSIGNMENT
AGREEMENT 
 PAGE 16Settlement Agreement

  
 EXHIBIT 10.71

 Portions of this exhibit marked [*] are requested to be treated confidentially. 

EXECUTION VERSION 
 Dated August 27, 2010 
  

 
 Salix
Pharmaceuticals, Inc. 
 - and - 
 Norgine B.V. 
 Norgine Europe B.V. 

- and - 

Novel Laboratories, Inc. 
 - and - 
 Actavis Inc. 

 
  

SETTLEMENT AGREEMENT 
 (Moviprep®) 

 
  

  
 This Settlement
Agreement, dated as of August 27, 2010, is by and among: Salix Pharmaceuticals, Inc., a California corporation (“Salix”), Norgine B.V. and Norgine Europe B.V., both of which are companies organized and existing under the
laws of The Netherlands (together, “Norgine;” and collectively with Salix, the “Plaintiffs”); Novel Laboratories, Inc., a Delaware corporation (“Novel”); and Actavis Inc., a Delaware corporation
(“Actavis”). Salix, Norgine, Novel, and Actavis are each sometimes referred to herein individually as a “Party” and are referred to collectively as the “Parties.” 

WITNESSETH: 
 WHEREAS, Salix is the exclusive licensee in the United States (as defined below) of the ‘381 Patent (as defined below) with respect to the Approved MOVIPREP® Product (as defined below), a tolerable, low-volume purgative indicated for cleansing of the colon as a preparation
for a colonoscopy procedure in adults 18 years of age and older; and 
 WHEREAS, Salix markets MOVIPREP® in the United States pursuant to New Drug Application (“NDA”) No. 02-1881; and 

WHEREAS, the Plaintiffs and Novel (collectively, the “Litigation Parties”) are involved in
litigation, Civil Action No. 3:08-02311 (FLW) (TJB) (D.N.J.) (the “Action”) concerning, inter alia, the validity of the ‘381 Patent, as well as the infringement by Novel of the ‘381 Patent resulting from
Novel’s requesting approval from the United States Food and Drug Administration (“FDA”) for the distribution and sale of a generic version of Salix’s MOVIPREP® product prior to expiry of the ‘381 Patent pursuant to Abbreviated New Drug Application (“ANDA”) No. 90-154; and 

WHEREAS, in the Action, the Plaintiffs have asserted claims against Novel; and 

  
 2 

  
 WHEREAS, in the
Action, Novel has asserted defenses and counterclaims against the Plaintiffs challenging the validity and/or infringement of the ‘381 Patent; 
 WHEREAS, Novel and Actavis have entered into certain arrangements in respect of the subject matter of the Action that are sufficient to make Actavis a necessary party to any settlement arrangements in
respect of the Action; and 
 WHEREAS, the Parties now seek to resolve the Action without further litigation; 

NOW THEREFORE, for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Parties, intending
to be legally bound, do hereby agree as follows: 
 ARTICLE 1: DEFINITIONS; INTERPRETATION 

1.1. Capitalized terms used in this Settlement Agreement have the meanings defined in the text hereof. 

1.2. Unless the context requires otherwise, words referred to in the singular include the plural and vice-versa, the words
“include,” “includes” and “including” will be deemed to be followed by the phrase “without limitation” (unless already present), the words “herein,” “hereof” and “hereunder,” and
words of similar import, will be construed to refer to this Settlement Agreement in its entirety and not to any particular provision hereof, and the word “or” is used in the inclusive sense (i.e., and/or). 

1.3. All times referred to in this Settlement Agreement are local time in New York, New York. 

1.4. The term “Affiliate” means, with respect to a Person, any Person that Controls, is Controlled by or is under common
Control with such first Person. For purposes of this definition only, “Control” means (a) to possess, directly or indirectly, the power to direct the management or policies of a Person, whether through ownership of voting
securities, by contract 

  
 3 

 
relating to voting rights or corporate governance or otherwise, or (b) to own, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities, or other
voting ownership interest, of a Person. 
 1.5. The term “Ancillary Agreements” means the Sublicense Agreement
and the Supply Agreement. 
 1.6. The term “Approved MOVIPREP® Product” means any product that is approved for distribution under NDA No. 21-881. 

1.7. The term “Business Day” means a day other than a Saturday or Sunday on which the office of the clerk of the
District Court is open for the conduct of routine business. 
 1.8. The term “District Court” means the United
States District Court in which the Action is pending. 
 1.9. The term “Majority-Controlled Affiliate”
(a) means, with respect to a Person, any Person that owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities, or other voting ownership interest, of such Person; any Person of which the first Person
owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities, or other voting ownership interest, of such Person; or any Person of which a Person owning, directly or indirectly, more than fifty percent
(50%) of the outstanding voting securities, or other voting ownership interest, of the first Person owns, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities, or other voting ownership interest, of
such Person; and, (b) with respect to Novel, includes GAVIS Pharmaceuticals, LLC. 
 1.10. The term “Novel Proposed
Product” means a drug product comprising polyethylene glycol 3350, sodium sulphate, sodium chloride, potassium chloride, sodium 

  
 4 

 
ascorbate, and ascorbic acid that refers to the Approved MOVIPREP
® Product as the reference-listed drug in an ANDA or pursuant to an application under 21 U.S.C. §
355(b)(2). 
 1.11. The term “Person” means an individual, sole proprietorship, partnership, limited
partnership, limited liability partnership, corporation, limited liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization, including a government or political
subdivision, department or agency of a government. 
 1.12. The term “Settlement Documents” means this
Settlement Agreement, the Consent Judgment, and the Ancillary Agreements. 
 1.13. The term “Start Date” has
the meaning set forth in the Sublicense Agreement. 
 1.14. The term “Sublicense Agreement” means the
Sublicense Agreement, dated the Signing Date, between Salix, Norgine and Novel. 
 1.15. The term “Supply
Agreement’ means the Supply Agreement, dated the Signing Date, between Salix, Actavis and Novel. 
 1.16. The term
“Third Party” means any Person that is not a Party or an Affiliate of a Party. 
 1.17. The term
“‘381 Patent” means United States patent number 7,169,381. 
 1.18. The term “United
States” means the United States of America, its territories and possessions, including the Commonwealth of Puerto Rico. 

ARTICLE 2: CONSENT JUDGMENT 
 2.1. As soon as practicable but in any event no more than three (3) Business Days after the date of signature of the last Party to sign this Settlement Agreement (such date, the “Signing
Date”), and subject to the confidentiality provisions of Section 8.1, counsel for the 

  
 5 

 
Litigation Parties shall execute a “Consent Judgment” in the form attached hereto as Exhibit A and shall file it in the District Court. 

2.2. If for any reason the District Court raises an objection to the Consent Judgment as set forth in Exhibit A or requires that
the Litigation Parties modify the Consent Judgment before it will enter it as an order of the court, or if after ten (10) Business Days the District Court has otherwise failed to enter the Consent Judgment as an order of the court, the Parties
agree to confer promptly in good faith and to use commercially reasonable efforts to modify the Consent Judgment or take such other action consistent with this Settlement Agreement and the Ancillary Agreements as is required to secure entry of the
Consent Judgment as drafted or with agreed-upon modifications. If such commercially reasonable efforts have failed to secure entry of the Consent Judgment within the thirty (30) Business Days following the date on which the Consent Judgment is
filed with the District Court, then, notwithstanding anything herein to the contrary, this Settlement Agreement shall be null and void and have no legal effect, save for Section 6.1(a), (b), (c) and (d), Article 7, and all of Article 8
except Section 8.11, each of which provisions shall continue in full force and effect. 
 2.3. The date on which the
Consent Judgment is entered by the District Court, whether with or without modification as provided for in Section 2.2, shall be the “Consent Judgment Entry Date”. 

ARTICLE 3: MUTUAL RELEASES 
 3.1. In settlement of disputed claims in the Action, and in consideration of the representations, warranties and covenants contained in this Settlement Agreement, subject to and effective only upon entry
of the Consent Judgment (whether with or without modification as provided for in Section 2.2), the Plaintiffs, on behalf of themselves and their Affiliates and their and their Affiliates’ respective predecessors, successors, assigns,
agents, officers, employees and 

  
 6 

 
representatives (collectively, the “Plaintiff Releasees”), hereby fully, finally and irrevocably relinquish, release and discharge Novel and its Affiliates and its and their
respective predecessors, successors, assigns, agents, officers, employees and representatives (collectively the “Novel Releasees”) and Actavis and its Affiliates and its and their respective predecessors, successors, assigns,
agents, officers, employees and representatives (collectively the “Actavis Releasees”) from any and all claims, demands, damages, liabilities, obligations, and causes of action, known or unknown, suspected or unsuspected, in law or
at equity, that were asserted, or that could have been asserted, by the Plaintiffs or any of the other Plaintiff Releasees in connection with a Novel Proposed Product or the Action and arising before the Consent Judgment Entry Date. 

3.2. In settlement of disputed claims in the Action, and in consideration of the representations, warranties and
covenants contained in this Settlement Agreement, subject to and effective only upon entry of the Consent Judgment (whether with or without the modification provided for in Section 2.2), Novel, on behalf of itself and the other Novel Releasees,
and Actavis, on behalf of itself and the other Actavis Releasees, hereby fully, finally and irrevocably relinquish, release and discharge the Plaintiff Releasees from any and all claims, demands, damages, liabilities, obligations, and causes of
action, known or unknown, suspected or unsuspected, in law or at equity, that were asserted, or that could have been asserted, by Novel or any of the other Novel Releasees or Actavis or any of the other Actavis Releasees in connection with an
Approved MOVIPREP® Product, a Novel Proposed Product, the ‘381 Patent or the Action and arising before the
Consent Judgment Entry Date. 
 3.3. For the avoidance of ambiguity, the releases set forth in this Article 3 do not apply to
actions to enforce any requirements or provisions of this Settlement Agreement or the other Settlement Documents. 

  
 7 

  
 ARTICLE 4: PATENT
VALIDITY 
 4.1. Novel, for itself and the other Novel Releasees, and Actavis, for itself and the other Actavis Releasees,
acknowledge and agree that the ‘381 Patent (a) is valid and enforceable in the Action and in any other or future cause of action, litigation or proceeding, (b) would be currently infringed (and after the Start Date would, in the
absence of the grants set forth in Sections 2.1 and 2.2 of the Sublicense Agreement, be then infringed) by the making, having made, use, sale, offer to sell, or importation of any Novel Proposed Product in or for the United States by or on behalf of
Novel or the other Novel Releasees, and (c) would be infringed by the making, having made, use, sale, offer to sell, or importation of any Novel Proposed Product in or for the United States by or on behalf of Actavis or the other Actavis
Releasees. 
 4.2. Novel, for itself and the other Novel Releasees, and Actavis, for itself and the other Actavis Releasees,
agree not to challenge or otherwise dispute or contest, and not to assist others, whether directly or indirectly, in challenging or otherwise disputing or contesting, in any litigation or other proceeding, (a) the validity, enforceability or
patentability of the ‘381 Patent or (b) the infringement of the ‘381 Patent by the making, having made, use, sale, offer to sell, or importation of any Novel Proposed Product in or for the United States. 

4.3. Nothing in Section 4.2 shall prohibit Novel or any other Novel Releasees or Actavis or any other Actavis Releasees from making
any disclosure required to be made by it in response to a Third Party-initiated order of a court of competent jurisdiction or other governmental body of a country or any political subdivision thereof of competent jurisdiction. In respect of any such
disclosure that in the absence of this Section 4.3 would be prohibited or restricted by Section 4.2, the disclosing Person shall, if permitted by law, first have given notice to Salix and Norgine and have given Salix and Norgine a
reasonable opportunity to quash such order or to obtain a protective order requiring that information the disclosure of 

  
 8 

 
which would in the absence of this Section 4.3 be prohibited or restricted by Section 4.2 be held in confidence by such court or governmental body or, if disclosed, be used only for the
purposes for which the order was issued. If a disclosure order is not quashed or a protective order is not obtained, information the disclosure of which would in the absence of this Section 4.3 be prohibited or restricted by Section 4.2
that is disclosed in response to such court or governmental order shall be limited to that information that is legally required to be disclosed in such response to such court or governmental order. 

ARTICLE 5: COVENANTS 
 5.1. Novel, for itself and the other Novel Releasees, and Actavis, for itself and the other Actavis Releasees, hereby covenant not to sue, not to assign to any other entity a right to sue, and not to
authorize any other entity to sue, any Plaintiff Releasee for any claim, counterclaim, demand, cause of action, suit, damages, debt, liability, obligation, right, or set-off of any kind or description whatsoever, including costs, expenses, and
attorneys’ fees related thereto or arising therefrom (collectively, “Losses”), known or unknown, suspected or unsuspected, in law or at equity, that were asserted or that could have been asserted by Novel or any other Novel
Releasee or Actavis or any other Actavis Releasee in connection with an Approved MOVIPREP® Product, a Novel
Proposed Product, the ‘381 Patent or the Action and arising before the Consent Judgment Entry Date. 
 5.2. Novel, for
itself and the other Novel Releasees, hereby covenants that neither it nor any other Novel Releasee will, and Actavis, for itself and the other Actavis Releasees, hereby covenants that neither it nor any other Actavis Releasee will, directly or
indirectly, (a) at any time beginning with the Consent Judgment Entry Date and ending at 12:01 a.m. on the Start Date, make, have made, use, sell, offer to sell, import or distribute in or for the United States, or (b) at any time
beginning with the Signing Date and ending at 12:01 a.m. on the 

  
 9 

 
Start Date, authorize or encourage others to make, have made, use, sell, offer to sell, import or distribute in or for the United States, or indemnify others regarding or participate in the
profits of others arising from the sale in or for the United States of, in the case of both clauses (a) and (b), any Novel Proposed Product, provided that Novel may make commercially reasonable preparations to sell Product (as defined in
the Sublicense Agreement) as of the Start Date by (i) initiating manufacture of Product not more than [*] ([*]) days before the date on which the Start Date can be reasonably anticipated by Novel to occur and (ii) initiating offers for
sale of Product not more than [*] ([*]) days before the date on which the Start Date can be reasonably anticipated by Novel to occur. 
 5.3. The Plaintiffs, for themselves and the other Plaintiff Releasees, hereby covenant, severally and not jointly, not to sue, not to assign to any other entity a right to sue, and not to authorize any
other entity to sue, any Novel Releasee or Actavis Releasee for Losses, known or unknown, suspected or unsuspected, in law or at equity, that were asserted or that could have been asserted by the Plaintiffs or any of the other Plaintiff Releasees in
connection with a Novel Proposed Product or the Action and arising before the Consent Judgment Entry Date. 
 5.4. For the
avoidance of ambiguity, the covenants set forth in this Article 5 do not apply to actions to enforce any requirements or provisions of this Settlement Agreement or the other Settlement Documents. 

ARTICLE 6: REPRESENTATIONS AND WARRANTIES 
 6.1. Each Party represents and warrants to the other Parties that: 
 [*] Confidential treatment
requested; certain information omitted and filed separately with the SEC. 

  
 10 

 (a) Such Party (i) is duly formed and in good standing under the laws of the
jurisdiction of its formation, (ii) has the power and authority and the legal right to enter into this Settlement Agreement and perform its obligations hereunder, and (iii) has taken all necessary action on its part required to authorize
the execution and delivery of this Settlement Agreement and the performance of its obligations hereunder. 
 (b) This
Settlement Agreement has been duly executed and delivered on behalf of such Party and constitutes a legal, valid and binding obligation of such Party and is enforceable against it in accordance with its terms, subject to the effects of bankruptcy,
insolvency or other similar laws of general application affecting the enforcement of creditor rights and judicial principles affecting the availability of specific performance and general principles of equity, whether enforceability is considered in
a proceeding at law or equity. 
 (c) All necessary consents, approvals and authorizations of all regulatory and governmental
authorities and other Persons required to be obtained by such Party in connection with the execution and delivery of this Settlement Agreement and the performance of its obligations hereunder have been obtained. 

(d) The execution and delivery of this Settlement Agreement and the performance of such Party’s obligations hereunder, (i) to
the knowledge of such Party, do not and will not conflict with or violate any requirement of Applicable Law, (ii) do not and will not conflict with or violate any provision of the articles of incorporation or bylaws of such Party, and
(iii) do not and will not conflict with, violate, or breach, or constitute a default or require any consent under, any contractual obligation or court or administrative order by which such Party is bound. 

(e) Such Party is duly authorized to act for and to bind all Persons on behalf of which it purports to be acting in respect of the
provisions of Articles 3, 4 and 5. 

  
 11 

  
 6.2. Novel represents
and warrants to the Plaintiffs that Novel owns all right, title and interest in and to ANDA No. 90-145, no other person or entity has any rights under ANDA No. 90-145, and Novel has not transferred or assigned (a) any of its rights
under ANDA No. 90-145 to any other Person or (b) any of its claims, rights, causes of action, counterclaims or defenses that are covered by the releases granted by it hereunder to any other Person. The Parties hereby acknowledge and agree
that the arrangement between Novel and Actavis, a copy of which was produced to Salix and Norgine’s litigation counsel, pursuant to which Novel “shall grant to Actavis . . . an exclusive license to the Product, with the right to promote,
distribute, market and sell such Product in the Territory”, constitutes a distributor relationship for the Product as contemplated by Section 2.3(b) of the Sublicense Agreement and does not constitute a breach of the representation and
warranty made by Novel under the first sentence of this Section 6.2. For the avoidance of doubt, the provisions of the preceding sentence (a) do not constitute the consent of Salix and Norgine to anything other than the distributor
relationship for the Product between Novel and Actavis contemplated by Section 2.3(b) of the Sublicense Agreement and (b) shall not operate to expand the rights of Novel or Actavis in any respect beyond the right to put into place the
distributor relationship for the Product between Novel and Actavis contemplated by Section 2.3(b) of the Sublicense Agreement. 
 6.3. Novel and Actavis represent and warrant to the Plaintiffs that neither Novel nor Actavis nor any of their Affiliates has discussed with any Third Party (other than Novel’s or Actavis’s
respective attorneys and other licensed professional advisors) any aspect of the negotiations of this Settlement Agreement or the other Settlement Documents or any of the terms or conditions hereof or thereof. 

  
 12 

  
 6.4. No Party makes
any express or implied warranties that any product or process can be made, used, sold, offered for sale, imported or distributed without infringing intellectual property rights owned or controlled by Third Parties. 

ARTICLE 7: NOTIFICATION OF SETTLEMENT AGREEMENT 
 TO THE FEDERAL TRADE COMMISSION AND DEPARTMENT OF JUSTICE 
 7.1. Within ten
(10) Business Days following the Signing Date, the Parties shall comply with the requirements of Title XI, Subtitle B of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Pub. L. No. 108-173 (the
“Act”) in respect of this Settlement Agreement and the transactions contemplated hereby by filing or causing to be filed all necessary documents with the U.S. Federal Trade Commission (“FTC”) and the Antitrust
Division of the U.S. Department of Justice (“DOJ;” and together with the FTC, the “Agencies”). 
 7.2. The Parties shall use all commercially reasonable efforts to coordinate the filings contemplated by Section 7.1 and any responses thereto, to make such filings promptly and to respond promptly
to any requests for additional information made by either of the Agencies, and to coordinate any necessary or desirable joint presentations. Each Party reserves the right to communicate with the Agencies regarding such filings as it believes
appropriate. Each Party shall keep the other informed of such communications (unless otherwise directed by either of the Agencies). 
 7.3. The provisions of this Article 7 are in all respects subject to the provisions of Article 8. 
 ARTICLE 8: GENERAL PROVISIONS 
 8.1. Confidentiality. Except as
(a) required by statute, ordinance or regulation, (b) required pursuant to compulsory legal process, (c) necessary for the exercise of the rights granted to the Parties under this Settlement Agreement or the other Settlement
Documents, or (d) as expressly permitted under this Section 8.1, none of the Parties nor their 

  
 13 

 
Affiliates shall publicly announce or otherwise disclose to Third Parties any of the terms of this Settlement Agreement or the Ancillary Agreements without the prior written approval of the other
Parties, not to be unreasonably withheld or delayed. Except as otherwise provided in this Section 8.1, the Parties shall only release public announcements of the execution of this Settlement Agreement and the other Settlement Documents in forms
to be mutually agreed by the Parties. If a Party is disclosing information relating to this Settlement Agreement or the Ancillary Agreements because it is required to do so to comply with a statute, ordinance or regulation or compulsory legal
process, including its reporting requirements under the Securities Exchange Act of 1934, as amended, or as contemplated by Article 7, such Party intending to make such disclosure shall give the other Parties at least [*] ([*]) Business
Days’ prior notice in writing of the text of the intended disclosure, unless such statute, ordinance, regulation or compulsory legal process would require earlier disclosure, in which event the notice shall be provided as early as practicable.
A Party that determines that it is required to file this Settlement Agreement or the Ancillary Agreements with the Securities and Exchange Commission or any other governmental authority, except the Agencies pursuant to Section 7.1, shall
request confidential treatment with respect to the terms of this Settlement Agreement and the Ancillary Agreements, shall consult in good faith with the other Parties regarding such confidential treatment and shall use commercially reasonable
efforts to have redacted from any publicly available version such provisions as the Parties may agree. Notwithstanding anything to the contrary above, (a) the Plaintiffs or any of them may disclose the terms of this Settlement Agreement and the
other Settlement Documents to Third Parties in connection with patent litigation involving the ‘381 Patent or in connection with settlement discussions and agreements with alleged infringers of the ‘381 Patent, subject to such Third
Parties undertaking to keep the 
  
 [*] Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  
 14 

 
terms of this Settlement Agreement and the Ancillary Agreements strictly confidential in accordance with the terms hereof, and (b) each Party may disclose the terms of this Settlement
Agreement and the other Settlement Documents to its respective Affiliates, and its and their respective insurers, lenders, attorneys and accountants and prospective and actual acquirers, subject to such Affiliates, insurers, lenders, attorneys and
accountants and acquirers being bound by reasonable confidentiality obligations. 
 8.2. Assignment.
This Settlement Agreement, including the obligations of the Parties under the Consent Judgment, shall be binding upon and shall inure to the benefit of each Party hereto, and each of its successors and permitted assigns. Except as otherwise provided
herein, no Party shall have the power to assign or otherwise transfer this Settlement Agreement or any interest herein or right hereunder without the prior written consent of the other Parties, and any such purported assignment, transfer or attempt
to assign or transfer any interest herein or right hereunder shall be void and of no effect. Notwithstanding the foregoing, any Party may, upon written notice to the other Parties but without obtaining the other Parties’ consent, assign its
rights and obligations under this Settlement Agreement to any of its Majority-Controlled Affiliates, to any lender providing financing to that Party or its Affiliates for collateral security purposes, or to any successor in interest to that
Party’s entire business or to its Approved MOVIPREP® Product or Novel Proposed Product business, as the
case may be, provided that (a) notwithstanding any such assignment, such Party shall remain liable for its and its assignee’s performance under this Settlement Agreement; (b) no such assignment shall in any manner limit or
impair the obligations of that Party hereunder; and (c) following a transfer by a Party to its Majority-Controlled Affiliate, any subsequent transaction (other than one that would result in the transfer of this Settlement Agreement back to the
assigning Party) that would cause 

  
 15 

 
such Majority-Controlled Affiliate to cease to be a Majority-Controlled Affiliate of such Party shall be deemed to be an assignment of this Settlement Agreement requiring consent hereunder.

 8.3. Governing Law and Jurisdiction. This Settlement Agreement and the rights and obligations of the Parties under
this Settlement Agreement shall be governed and construed in accordance with the laws of the State of New York, without regard to its choice of law or conflicts of law principles that might otherwise refer construction or interpretation of this
Settlement Agreement to the substantive law of another jurisdiction. Actavis submits to the jurisdiction of the District Court for the purposes of enforcement of this Settlement Agreement against it and hereby waives any and all defenses based on
personal jurisdiction or venue to the maintenance of any such action in the District Court. 
 8.4. Relief in the Event of
Breach. Novel and Actavis, for themselves and their Affiliates, acknowledge and agree that the restrictions set forth herein on the manufacture, use, sale, offer to sell, importation and distribution of any Novel Proposed Product are reasonable
and necessary to protect the legitimate interests of the Plaintiffs, that the Plaintiffs would not have entered into this Settlement Agreement in the absence of such restrictions, and that any breach or threatened breach of those restrictions will
result in irreparable injury to the Plaintiffs for which there will be no adequate remedy at law. Accordingly, if either Novel or Actavis breaches its undertakings in Sections 4.2, 5.1 or 5.2 of this Settlement Agreement, in addition to any other
remedy the Plaintiffs may have at law or in equity, the Plaintiffs or either of them, upon a showing of such breach, shall be entitled to a preliminary and permanent injunction to prevent the continuance of such breach. In the event that either
Novel or Actavis breaches its undertakings in Sections 4.2, 5.1 or 5.2, the Plaintiffs reserve, and Novel and Actavis and their Affiliates so acknowledge, the right to seek damages, including enhanced damages, and other remedies for patent
infringement to the full extent of the law. In the event of such breach, the 

  
 16 

 
Plaintiffs shall not be obligated to post any bonds as a condition to securing injunctive relief, and shall not be required to demonstrate that the balance of hardships supports the entry of
injunctive relief. 
 8.5. Waiver. No waiver of a breach or failure of a condition contained in or granted by the
provisions of this Settlement Agreement shall be effective unless it is in writing and signed by the Party waiving the breach or failure. No waiver of any breach or failure shall be deemed a waiver of any other breach or failure, whether or not
similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 
 8.6. Legal Advice. Each
Party and its counsel have participated fully in the review and revision of this Settlement Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in interpreting this
Settlement Agreement. 
 8.7. Enforceability. If a court of competent jurisdiction holds any provision of this Settlement
Agreement to be illegal, unenforceable, or invalid, in whole or in part for any reason, the Parties agree to use commercially reasonable efforts to negotiate a provision, in replacement of the provision held illegal, unenforceable, or invalid, that
is consistent with applicable law and accomplishes, as nearly as possible, the original intention of the Parties with respect thereto. 
 8.8. Admissibility. Until the Consent Judgment Entry Date and after a Settlement Termination Event (as hereinafter defined) occurs, (a) neither the provisions of this Settlement Agreement or
any other Settlement Document nor this Settlement Agreement or the other Settlement Documents themselves may be offered into evidence, or be referred to in any testimonial or other evidence, by any Party or any of its Affiliates at any trial, action
or other proceeding pertaining to the subject matter hereof, except (in respect of the period after a 

  
 17 

 
Settlement Termination Event occurs) as may be reasonably necessary to correct any record of such disclosures that was created before the Settlement Termination Event occurred and
(b) nothing herein shall be construed as an admission or waiver by any Party or any of its Affiliates as to any factual or legal matter. The foregoing restrictions in this Section 8.8 shall apply outside the United States. For the
avoidance of ambiguity, (a) in the event there is no Consent Judgment Entry Date, then the provisions of this Section 8.8 shall apply forever; and (b) once a Settlement Termination Event occurs, then the provisions of this
Section 8.8 shall apply forever thereafter. The provisions of this Section 8.8 do not apply to actions brought solely (a) to enforce the performance, prior to this Settlement Agreement becoming null and void pursuant to the provisions
of Section 2.2, of any requirements or provisions set forth in Article 2 or Section 5.2 or (b) to enforce the performance of Section 6.1(a), (b), (c) and (d), Article 7, and all of Article 8 except Section 8.11.

 8.9. Entire Agreement. This Settlement Agreement and Exhibit A, together with the other Settlement Documents,
constitutes the final, complete, and exclusive statement of the terms of the agreement between the Plaintiffs, on the one hand, and Novel and Actavis, on the other hand, pertaining to the subject matter thereof and supersede all prior and
contemporaneous understandings or agreements of the Plaintiffs, on the one hand, and Novel and Actavis, on the other hand. The Plaintiffs, on the one hand, and Novel and Actavis, on the other hand, confirm that they are not relying on any
representations, warranties or undertakings of the other except as set forth in this Settlement Agreement and the other Settlement Documents. 
 8.10. Modification. No terms or conditions of this Settlement Agreement shall be varied or modified by any prior or subsequent statement, conduct or act of any Party, except that the Parties may
supplement, amend, or modify this Settlement Agreement by a subsequent written agreement executed by the Parties through their authorized representatives. 

  
 18 

  
 8.11. Return of
Confidential Documents. The Parties hereby agree that, within fourteen (14) days after the Consent Judgment Entry Date, they shall return to the producing party all “Confidential” and “Attorneys’ Eyes Only” material
as designated under the Stipulated Discovery Confidentiality Order governing the Action, or shall certify in writing that any such materials have been destroyed, provided, however, that counsel may retain complete copies of all transcripts
and pleadings including any exhibits attached thereto for archival purposes. 
 8.12. Limitation of Rights Granted.
Except for the rights, agreements and covenants specifically granted pursuant to this Settlement Agreement and the Ancillary Agreements, no other rights, agreements or covenants are granted or implied by this Settlement Agreement. 

8.13. Notices. All notices, requests, demands, or other communications under this Settlement Agreement shall be in writing. Notice
shall be sufficiently given (and shall be deemed to be duly given upon receipt) by delivery in person, by facsimile or by overnight delivery service maintaining records of receipt to the respective Party at the address(es) specified for it below, or
in each case such other address(es) as such Party may hereafter specify by notice to the other Parties. Addresses for purpose of giving notice are as follows: 
 If to Salix: 
 Salix Pharmaceuticals, Inc. 

1700 Perimeter Park Dr. 
 Morrisville, NC 27560-8404 
 U.S.A. 

Attention: General Counsel 
 Facsimile: (919) 862-1095 
 If to Norgine: 

  
 19 

  
 If to Norgine B.V.:

 Norgine B.V. 
 Hogehilweg 7 
 1101 CA Amsterdam ZO 

The Netherlands 

Attention: Managing Director 
 If to Norgine Europe B.V. 
 Norgine Europe B.V. 

Hogehilweg 7 

1101 CA Amsterdam ZO 
 The Netherlands 
 Attention: Managing Director 

In both cases with a copy to: 
 Norgine Limited 
 Norgine House 

Widewater Place 

Moorhall Road 

Harefield, Middlesex UB9 6NS 
 United Kingdom 
 Attention: General Counsel 

If to Novel: 
 Novel Laboratories, Inc. 
 400 Campus Dr. 

Somerset, NJ 08873 
 U.S.A. 
 Attention: President 

Fax: (908) 603-6060 
 If to Actavis: 
 Actavis Inc. 

60 Columbia Road 

Building B 

Morristown, NJ 07960 
 U.S.A. 
 Attention: Legal Department 

  
 20 

  
 8.14. Certain
Events. 
 (a) Novel and Actavis may, by notice to Salix, terminate Sections 3.2, 4.1, 4.2, 5.1 and 5.2
of this Settlement Agreement and paragraphs 5, 6, 7 and 8 of the Consent Judgment (any such termination, a “Settlement Termination Event”) in the event that any one of the following circumstances has occurred and is at the time of
such notice continuing: (i) any permanent and full withdrawal of the Approved MOVIPREP® Product from the
United States market; (ii) any termination of the Supply Agreement by Salix pursuant to Section 6.2(a)(i) or (c)(i) thereof or by Novel and Actavis pursuant to Section 6.2(b) or by Novel or Actavis pursuant to Section 6.2(c)(i)
thereof; (iii) from and after [*], any failure to have achieved qualification of Novel to supply product to Salix as contemplated by Section 2.1 of the Supply Agreement, so long as such failure is not attributable to any material extent to
the failure of Novel to have fulfilled its obligations under Section 2.1 of the Supply Agreement, it being explicitly agreed, for the avoidance of doubt, that this clause (iii) does not extend to or include any failure to have achieved
qualification of Actavis (or any third party supplier proposed by Actavis and approved by Salix) to supply product to Salix pursuant to the Supply Agreement following Actavis’s succeeding to the obligations of Novel under the Supply Agreement
pursuant to the provisions of Section 6.4(b) of the said agreement; or (iv) any breach by Salix or Norgine of any of their respective obligations under Section 2 or Section 3.5 of the Sublicense Agreement that has not been cured
in all material respects within [*] ([*]) days (or, if the breach is not reasonably curable within such [*] ([*]) day period, such period as may be reasonably required to permit an appropriate cure so long as the breaching Party is at all times

  
 [*] Confidential
treatment requested; certain information omitted and filed separately with the SEC. 

  
 21 

  
 during such period using its best
efforts to effect such cure) following notice by Novel or Actavis to Salix and Norgine of such breach. 
 (b) Upon a Settlement
Termination Event, the provisions of Sections 3.1 and 5.3 shall be automatically terminated without further action by any Party. 
 (c) For the avoidance of doubt, following a Settlement Termination Event, the provisions of Sections 3.1, 3.2, 4.1, 4.2, 5.1, 5.2 and 5.3 of this Settlement Agreement and paragraphs 5, 6, 7 and 8 of the
Consent Judgment shall be deemed terminated and without effect ab initio and shall not after the Settlement Termination Event be enforceable by any Party hereto, including in respect of matters occurring prior to the Settlement Termination
Event. 
 8.15. Counterparts. This Settlement Agreement may be executed in any number of counterparts, and each
counterpart shall be deemed an original instrument, but all counterparts together shall constitute but one agreement. An executed signature page of this Settlement Agreement delivered by facsimile transmission or by electronic mail in “portable
document format” (“.pdf”) shall be as effective as an original executed signature page. 
 [Remainder of this
page intentionally left blank.] 

  
 22 

  
 IN WITNESS WHEREOF,
the Parties, through their authorized officers, have executed this Settlement Agreement to be effective as of the Signing Date. 
  

									
	Salix Pharmaceuticals, Inc.	 		 	Novel Laboratories, Inc.
					
	By:	 	 /s/ Carolyn J. Logan
	 		 	By:	 	 /s/ Veerappan S. Subramanian

					
	Name:	 	 Carolyn J. Logan
	 		 	Name:	 	 Veerappan S. Subramanian

					
	Title:	 	 President and CEO
	 		 	Title:	 	 President and CEO

					
	Date:	 	 August 27, 2010
	 		 	Date:	 	 August 27, 2010

			
	Norgine B.V.	 		 	Actavis Inc.
					
	By:	 	 /s/ Frank P. Nooteboom
	 		 	By:	 	 /s/ Douglas Boothe

					
	Name:	 	 Frank P. Nooteboom
	 		 	Name:	 	 Douglas Boothe

					
	Title:	 	 Director
	 		 	Title:	 	 CEO

					
	Date:	 	 August 27, 2010
	 		 	Date:	 	 August 27, 2010

				
	Norgine Europe B.V.	 		 		 	
					
	By:	 	 /s/ Peter Stein
	 		 		 	
					
	Name:	 	 Peter Stein
	 		 		 	
					
	Title:	 	 Director
	 		 		 	
					
	Date:	 	 August 27, 2010
	 		 		 	

 [Signature page to Settlement Agreement] 

  
 23 

  
 EXHIBIT A: CONSENT
JUDGMENT 
 IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF NEW JERSEY 
  

							
	  
	  	 	X	  	  	
	SALIX	  	 	:	  	  	
	PHARMACEUTICALS, INC., NORGINE	  	 	:	  	  	
	B.V. and NORGINE EUROPE B.V.,	  	 	:	  	  	
			
	Plaintiffs,	  	 	:	  	  	
		  	 	:	  	  	
	 v.
	  	 	:	  	  	 Civil Action No. 3:08-02311 (FLW) (TJB)

	 NOVEL LABORATORIES, INC.,
	  	 	:	  	  	
		  	 	:	  	  	
	Defendant.	  	 	:	  	  	
	  
	  	 	X	  	  	

 CONSENT JUDGMENT 
 Plaintiffs Salix Pharmaceuticals, Inc. (hereinafter “Salix”) and Norgine B.V. and Norgine Europe B.V. (hereinafter collectively “Norgine”) and defendant Novel Laboratories, Inc.
(hereinafter “Novel”) have agreed to terms and conditions representing a negotiated settlement of this action and have set forth those terms and conditions in a Settlement Agreement among Salix, Norgine, Novel and Actavis Inc., a
Sublicense Agreement among Salix, Norgine and Novel, and a Supply Agreement between Salix, Novel and Actavis Inc. Accordingly, Salix, Norgine and Novel, by their respective undersigned attorneys, hereby stipulate and consent to the entry of a
judgment and an injunction in this action pursuant to Fed. R. Civ. P. 41(a)(2) as follows: 
 The Court HEREBY ORDERS, ADJUDGES
AND DECREES: 
 1. This Court has jurisdiction over the subject matter of this action and personal jurisdiction over the
parties. 
 2. The term “Affiliate” means with respect to a Person, any Person that Controls, is Controlled by or is
under common Control with such first Person. For purposes of this 

 
definition only, “Control” means (a) to possess, directly or indirectly, the power to direct the management or policies of a Person, whether through ownership of voting securities,
by contract relating to voting rights or corporate governance or otherwise, or (b) to own, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities or other ownership interest of a Person. 

3. The term “Approved MOVIPREP® Product” means any product that is approved for distribution in the United States under New Drug Application No. 21-881. 

4. The term “Person” means an individual, sole proprietorship, partnership, limited partnership, limited liability partnership,
corporation, limited liability company, business trust, joint stock company, trust, incorporated association, joint venture or similar entity or organization, including a government or political subdivision, department or agency of a government.

 5. Novel, for itself and its Affiliates and its and their respective predecessors, successors, assigns, agents, officers,
employees and representatives (collectively the “Novel Releasees”), has acknowledged and agreed that United States patent number 7,169,381 (the “‘381 Patent”) is valid and enforceable. 

6. In any other or future cause of action or litigation, Novel shall not dispute that the ‘381 Patent is enforceable and valid.

 7. Novel, for itself and the other Novel Releasees, has acknowledged and agreed that (absent a valid
license granting rights thereunder) the ‘381 Patent would be infringed by the making, having made, use, sale, offer to sell, or importation of a drug product that refers to the Approved MOVIPREP® Product as the reference-listed drug in an Abbreviated New Drug

  
 A-2

 
Application or pursuant to an application under 21 U.S.C. § 355(b)(2) (an “Infringing Product”) in or for the United States. 

8. Novel, including any of its successors and assigns, is enjoined, either directly or indirectly, on its own part or through any
Affiliate, officer, agent, servant, employee or attorney, or through any person in concert or coordination with Novel, from making, having made, using, selling, offering to sell, or importing any Infringing Product in or for the United States,
except solely as and to the extent specifically authorized by the Sublicense Agreement. 
 9. The provisions of paragraphs 5, 6,
7 and 8 of this Consent Judgment may be terminated by Novel in accordance with the provisions of Section 8.14(a) of the Settlement Agreement, and, in such instance, those provisions of this Consent Judgment shall not have any res judicata
effect. 
 10. The provisions of paragraphs 5, 6, 7 and 8 of this Consent Judgment notwithstanding, Salix and Norgine have
agreed that (a) Novel may continue to maintain its paragraph IV certification for its pending Abbreviated New Drug Application No. 90-145 (the “Pending ANDA”), (b) Novel may continue to pursue and obtain final FDA approval
of the Pending ANDA at the expiration of the thirty (30) month period prescribed by 21 U.S.C. § 355(c)(3)(C), and (c) they will not in any way interfere with or oppose the approval of the Pending ANDA. 

11. In the event of breach or violation of the terms of this Consent Judgment, jurisdiction and venue for an action for preliminary and
permanent injunctions against the breaching conduct exists in this court, and all parties hereby waive any and all defenses based on personal jurisdiction and venue. 
 12. All claims and counterclaims in this action are dismissed, without prejudice. 

  
 A-3

  
 13. Compliance with
this Consent Judgment may be enforced by the parties and their respective successors in interest or assigns. 
 14. This Court
retains jurisdiction to enforce or supervise performance under this Consent Judgment and the aforesaid Settlement Agreement, Sublicense Agreement and Supply Agreement. 
 15. Each party shall bear its own costs and attorneys’ fees. 
  

	
	
                        
                                         
                                      

	Hon. Freda L. Wolfson, U.S.D.J.

 We
consent to the form and entry of the foregoing Consent Judgment. 
  

									
	Dated:	  		  		  	Dated:	  	
					
	By:	  	  
	  		  	By:	  	  

					
		  	[Insert appropriate signature block]	  		  		  	[Insert appropriate signature block]
					
		  	 Attorneys for plaintiff
 Salix Pharmaceuticals, Inc.
	  		  		  	 Attorneys for defendant
 Novel Laboratories, Inc.

					
	Dated:	  		  		  		  	
					
	By:	  	  
	  		  		  	
					
		  	[Insert appropriate signature block]	  		  		  	
					
		  	 Attorneys for plaintiffs
 Norgine B.V. and Norgine Europe B.V.
	  		  		  	

  
 A-4

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