Document:

Guaranty, dated as of February 25, 2008

 Exhibit 10.10 
 EXECUTION COPY 
  
  
 GUARANTY 
 dated as of 
 February 25, 2008 
 among 
 AXCAN MIDCO INC., 
 AXCAN INTERMEDIATE
HOLDINGS INC., 
 AXCAN US PARTNERSHIP 1 LP, 
 CERTAIN OTHER SUBSIDIARIES OF 
 AXCAN INTERMEDIATE HOLDINGS INC. 
 IDENTIFIED HEREIN 
 and 
 BANK OF AMERICA, N.A., 
 as Administrative
Agent 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	PAGE
	 ARTICLE 1
 DEFINITIONS

			
	 Section 1.01.
	 	Credit Agreement	  	1
	 Section 1.02.
	 	Other Defined Terms	  	1
	
	ARTICLE 2
	GUARANTY
			
	 Section 2.01.
	 	Guaranty	  	2
	 Section 2.02.
	 	Guaranty of Payment	  	3
	 Section 2.03.
	 	No Limitations	  	3
	 Section 2.04.
	 	Reinstatement	  	4
	 Section 2.05.
	 	Agreement to Pay; Subrogation	  	4
	 Section 2.06.
	 	Information	  	4
	
	ARTICLE 3
	INDEMNITY, SUBROGATION AND SUBORDINATION
			
	 Section 3.01.
	 	Indemnity and Subrogation	  	5
	 Section 3.02.
	 	Contribution and Subrogation	  	5
	 Section 3.03.
	 	Subordination	  	5
	
	ARTICLE 4
	MISCELLANEOUS
			
	 Section 4.01.
	 	Notices	  	6
	 Section 4.02.
	 	Waivers; Amendment	  	6
	 Section 4.03.
	 	Administrative Agent’s Fees and Expenses, Indemnification	  	6
	 Section 4.04.
	 	Survival of Representations and Warranties	  	7
	 Section 4.05.
	 	Counterparts; Effectiveness; Successors and Assigns; Several Agreement	  	7
	 Section 4.06.
	 	Severability	  	8
	 Section 4.07.
	 	Right of Set-off	  	8
	 Section 4.08.
	 	Governing Law; Jurisdiction; Venue; Waiver of Jury Trial; Consent to Service of Process	  	8
	 Section 4.09.
	 	Headings	  	8
	 Section 4.10.
	 	Guaranty Absolute	  	8
	 Section 4.11.
	 	Termination or Release	  	9
	 Section 4.12.
	 	Additional Guarantors	  	9
	 Section 4.13.
	 	Limitation on Guaranteed Obligations	  	10

  

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 GUARANTY dated as of February 25, 2008, among AXCAN MIDCO INC., a Delaware corporation
(“Holdings”), AXCAN INTERMEDIATE HOLDINGS INC., a Delaware corporation (the “Parent Borrower”), AXCAN US PARTNERSHIP 1 LP, a Delaware limited partnership (the “Co-Borrower”), certain other
Subsidiaries of AXCAN INTERMEDIATE HOLDINGS INC. from time to time party hereto and BANK OF AMERICA, N.A., as Administrative Agent (as defined below). 
 Reference is made to the Credit Agreement dated as of February 25, 2008 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the
Parent Borrower, the Co-Borrower, Holdings, Bank of America, N.A., as Administrative Agent, Swing Line Lender, and L/C Issuer, and each lender from time to time party thereto (collectively, the “Lenders” and individually, a
“Lender”). The Lenders have agreed to extend credit to the Borrowers subject to the terms and conditions set forth in the Credit Agreement. The obligations of the Lenders to extend such credit are conditioned upon, among other
things, the execution and delivery of this Agreement. Holdings and the Subsidiary Guarantors party hereto are affiliates of the Borrowers and the Borrowers are affiliates of each other, and Holdings and the other Guarantors will derive substantial
benefits from the extension of credit to the Borrowers pursuant to the Credit Agreement and are willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto make the following
representations and warranties to the Administrative Agent for the benefit of the Secured Parties and hereby covenant and agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement. 
 (b) The rules of construction specified in Article 1 of the Credit Agreement also apply to this Agreement. 
 Section 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
 “Administrative Agent” means Bank of America, N.A., in its capacity as administrative agent and collateral agent under any of the Loan
Documents, or any successor administrative agent and collateral agent. 
 “Agreement” means this Guaranty. 

 “Bankruptcy Code” means Title 11 of the United States Code entitled
“Bankruptcy,” as now or hereafter in effect, or any successor thereto. 
 “Claiming Party” has the meaning
assigned to such term in Section 3.02. 
 “Contributing Party” has the meaning assigned to such term in
Section 3.02. 
 “Credit Agreement” has the meaning assigned to such term in the preliminary statement of this
Agreement. 
 “Guarantor” means Holdings, the Parent Borrower, the Co-Borrower, each other Person listed on Annex A hereto
and each party that becomes a party to this Agreement after the Closing Date. 
 “Guaranty Parties” means, collectively, the
Borrowers and each other Guarantor and “Guaranty Party” means any one of them. 
 “Guaranty Supplement”
means an instrument substantially in the form of Exhibit I hereto. 
 “Holdings” has the meaning assigned to such term in
the preliminary statement of this Agreement. 
 “Loan Documents” means (a) each Loan Document as defined under the
Credit Agreement, (b) each Secured Hedge Agreement entered into with a Hedge Bank and (c) each agreement governing Cash Management Services entered into with a Cash Management Bank. 
 “Subsidiary Guarantor” means each Guarantor other than Holdings and the Parent Borrower. 
 ARTICLE 2 
 GUARANTY 

Section 2.01. Guaranty. Holdings and each Subsidiary Guarantor irrevocably, absolutely and unconditionally guaranties, jointly with each
other and severally, the due and punctual payment of the Obligations of the Parent Borrower, and Holdings, the Parent Borrower and each Subsidiary Guarantor (other than the Co-Borrower) irrevocably, absolutely and unconditionally guaranties, jointly
with each other and severally, the due and punctual payment of the Obligations of the Co-Borrower, in each case, whether such Obligations are now existing or hereafter incurred under, arising out of any Loan Document whether at stated maturity or
earlier, by reason of acceleration, mandatory prepayment or otherwise in accordance herewith or with any other Loan Documents. Each of the Guarantors further agrees that the Obligations may be 

  

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extended, increased or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guaranty
notwithstanding any extension, increase or renewal, in whole or in part, of any Obligation. To the extent permitted by applicable law, each of the Guarantors waives presentment to, demand of payment from and protest to any Guaranty Party of any of
the Obligations, and also waives notice of acceptance of its guaranty and notice of protest for nonpayment. 
 Section 2.02. Guaranty
of Payment. Each of the Guarantors further agrees that its guaranty hereunder constitutes a guaranty of payment when due and not of collection, and, to the extent permitted by applicable law, waives any right to require that any resort be had by
the Administrative Agent or any other Secured Party to any security held for the payment of the Obligations, or to any balance of any deposit account or credit on the books of the Administrative Agent or any other Secured Party in favor of the
Parent Borrower, the Co-Borrower or any other Person. 
 Section 2.03. No Limitations. (a) Except for termination of a
Guarantor’s obligations hereunder as expressly provided in Section 4.11 and except as is otherwise provided under applicable law, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality
or unenforceability of the Obligations, or otherwise. Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of the
Administrative Agent or any other Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release
from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement; (iii) the release of any security held by the Administrative Agent or any other Secured Party
for the payment and performance of the Obligations; (iv) any default, failure or delay, willful or otherwise, in the performance of the Obligations; or (v) any other act or omission that may or might in any manner or to any extent vary the
risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the payment in full in cash of all the Obligations), except in each case as is otherwise provided under applicable law. Each
Guarantor expressly authorizes the Secured Parties to take and hold security for the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and
manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all in accordance with the Security Agreement and other Loan Documents and all
without affecting the obligations of any Guarantor hereunder. 
  

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 (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based on or
arising out of any defense of any Guaranty Party or the unenforceability of the Obligations, or any part thereof from any cause, or the cessation from any cause of the liability of any Guaranty Party, other than the payment in full in cash of all
the Obligations or other termination of such Guarantor’s obligations hereunder as provided in Section 4.11. The Administrative Agent and the other Secured Parties may, in accordance with the terms of the Collateral Documents and at their
election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other
accommodation with any Guaranty Party or exercise any other right or remedy available to them against any Guaranty Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have
been paid in full in cash. To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of such Guarantor against any Guaranty Party, as the case may be, or any security. 
 Section 2.04. Reinstatement. Each of the Guarantors agrees that its guaranty hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation, is
rescinded, invalidated or must otherwise be restored by the Administrative Agent or any other Secured Party upon the bankruptcy or reorganization of any Guaranty Party or otherwise. 
 Section 2.05. Agreement to Pay; Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Administrative
Agent or any other Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of any Guaranty Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice
of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the Secured Parties in cash the amount of such unpaid Obligation. Upon payment by any
Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against any Guaranty Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all
respects be subject to Article 3 herein. 
 Section 2.06. Information. Each Guarantor assumes all responsibility for being and
keeping itself informed of each Guaranty Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations, and the nature, scope and extent of the risks that such Guarantor 

  

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assumes and incurs hereunder, and agrees that none of the Administrative Agent or the other Secured Parties will have any duty to advise such Guarantor of
information known to it or any of them regarding such circumstances or risks. 
 ARTICLE 3 
 INDEMNITY, SUBROGATION AND SUBORDINATION 
 Section 3.01. Indemnity and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 3.03), each of the Borrowers agrees that in the event a payment of an obligation shall be made by any Guarantor under this Agreement, the applicable Borrower shall indemnify such Guarantor for the full
amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment. 
 Section 3.02. Contribution and Subrogation. Each Guarantor (a “Contributing Party”) agrees (subject to Section 3.03) that, in the event a payment shall be made by any other Guarantor
hereunder in respect of any Obligation and such other Guarantor (the “Claiming Party”) shall not have been fully indemnified by the applicable Borrower as provided in Section 3.01, the Contributing Party shall indemnify the
Claiming Party in an amount equal to the amount of such payment, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the aggregate net worth of
all the Contributing Parties together with the net worth of the Claiming Party on the date hereof (or, in the case of any Guarantor becoming a party hereto pursuant to Section 4.12, the date of the Guaranty Supplement hereto executed and
delivered by such Guarantor). Any Contributing Party making any payment to a Claiming Party pursuant to this Section 3.02 shall be subrogated to the rights of such Claiming Party to the extent of such payment. Each Guarantor recognizes and
acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution. In this connection, each Guarantor has the right to waive, to the fullest extent permitted by applicable
law, its contribution right against any other Guarantor to the extent that after giving effect to such waiver such Guarantor would remain solvent, in the determination of the Lenders. 
 Section 3.03. Subordination. (a) Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors under
Sections 3.01 and 3.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the payment in full in cash of the Obligations; provided that if any amount shall be paid
to such Guarantor on account of such subrogation rights at any time prior to the payment in full of the Obligations and an Event of Default shall be continuing, such amount shall be held in trust for the benefit of the Secured Parties and shall
forthwith be paid to the Administrative Agent to be credited and applied against 

  

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the Obligations, whether matured or unmatured, in accordance with Section 4.02 of the U.S. Security Agreement. No failure on the part of a Borrower or
any Guarantor to make the payments required by Sections 3.01 and 3.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect to its obligations
hereunder. 
 ARTICLE 4 
 MISCELLANEOUS 
 Section 4.01. Notices. All communications and notices hereunder shall (except as
otherwise expressly permitted herein) be in writing and given as provided in Section 10.02 of the Credit Agreement. All communications and notices hereunder to any Guarantor shall be given to it in care of the Borrowers as provided in
Section 10.02 of the Credit Agreement. 
 Section 4.02. Waivers; Amendment. (a) No failure or delay by the
Administrative Agent, any L/C Issuer or any other Secured Party in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the L/C Issuers and the
other Secured Parties hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any
Guaranty Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 4.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any L/C Issuer may
have had notice or knowledge of such Default at the time. No notice or demand on any Guaranty Party in any case shall entitle any Guaranty Party to any other or further notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Administrative Agent and the Guaranty Party or Guaranty Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 10.01 of the Credit Agreement.

 Section 4.03. Administrative Agent’s Fees and Expenses, Indemnification. (a) The parties hereto agree that the
Administrative Agent shall be entitled to 

  

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reimbursement of its expenses incurred in connection with this Agreement and to indemnification related hereto as provided in Sections 10.04 and 10.05 of the
Credit Agreement. 
 (b) Any such amounts payable as provided hereunder shall be additional Obligations guaranteed hereby and secured by the
other Collateral Documents. The provisions of this Section 4.03 shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated
hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Administrative Agent or any other Secured
Party. All amounts due under this Section 4.03 shall be payable within 20 Business Days of written demand therefor. 
 Section 4.04. Survival of Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or
therewith shall survive the execution and delivery hereof and thereof, and shall continue in full force and effect with respect to each Guarantor until such Guarantor is released from its obligations under this Agreement pursuant to
Section 4.11. 
 Section 4.05. Counterparts; Effectiveness; Successors and Assigns; Several Agreement. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery by facsimile or electronic transmission of an executed counterpart of a signature page
to this Agreement shall be effective as delivery of an original executed counterpart of this Agreement. The Administrative Agent may also require that any such documents and signatures delivered by facsimile or electronic transmission be confirmed
by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by facsimile or electronic transmission. This Agreement shall become effective
as to any Guaranty Party when a counterpart hereof executed on behalf of such Guaranty Party shall have been delivered to the Administrative Agent and a counterpart hereof shall have been executed on behalf of the Administrative Agent, and
thereafter shall be binding upon such Guaranty Party and the Administrative Agent and their respective successors and assigns permitted thereby, and shall inure to the benefit of such Guaranty Party, the Administrative Agent and the other Secured
Parties and their respective successors and assigns permitted thereby, except that no Guaranty Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein (and any such assignment or transfer shall be
void) except as expressly contemplated by this Agreement or the other Loan Documents. This Agreement shall be construed as a separate agreement with respect to each Guaranty Party and may be amended, modified, supplemented, waived or released with
respect to any Guaranty Party without the approval of any other Guaranty Party and without affecting the obligations of any other Guaranty Party hereunder. 
  

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 Section 4.06. Severability. If any provision of this Agreement or the other Loan Documents is
held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 4.07. Right
of Set-off. Each Lender and its Affiliates and each L/C Issuer and its Affiliates shall have the set-off rights set forth in Section 10.09 of the Credit Agreement, without any requirement of prior notice to any Guarantor, any such notice
being waived by each Guarantor (on its own behalf and on behalf of its Subsidiaries). Such rights are in addition to other rights and remedies (including other rights of setoff) that such Persons may have. 
 Section 4.08. Governing Law; Jurisdiction; Venue; Waiver of Jury Trial; Consent to Service of Process. (a) The terms of Sections 10.15
and 10.16 of the Credit Agreement with respect to governing law, submission of jurisdiction, venue and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms. 
 (b) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 4.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 Section 4.09. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement. 
 Section 4.10. Guaranty Absolute. To the fullest extent permitted by applicable
law, all rights of the Administrative Agent hereunder and all obligations of each Guarantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan
Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document, or any other agreement or instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or departure from any guaranty securing or guaranteeing all or any of the Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or
a discharge of, any Guarantor in respect of the Obligations 

  

 8 

 
or this Agreement (other than payment in full in cash of all of the Obligations (other than obligations under Secured Hedge Agreements and Cash Management
Obligations) and termination of the Aggregate Commitments) or other termination of such Guarantor’s obligations hereunder as provided in Section 4.11. 
 Section 4.11. Termination or Release. (a) This Agreement and the Guaranties made herein shall terminate with respect to all of the Guarantors, and the Guarantors shall automatically be released from
their obligations hereunder, when (i) the Commitments have been terminated in full, (ii) all the outstanding Obligations (other than (x) obligations under Secured Hedge Agreements not yet due and payable, (y) Cash Management
Obligations not yet due and payable and (z) contingent indemnification obligations not yet accrued and payable) have been paid in full and (iii) no Letter of Credit remains outstanding (unless the Outstanding Amount of the L/C Obligations
related thereto has been Cash Collateralized or a backstop letter of credit reasonably satisfactory to the applicable L/C Issuer is in place). 
 (b) A Guarantor shall automatically be released from its obligations hereunder as provided in Section 9.11 of the Credit Agreement. 
 (c) In connection with any termination or release pursuant to paragraph (a) or (b) of this Section 4.11, the Administrative Agent shall promptly execute and deliver to any Guarantor, at such Guarantor’s expense, all
documents that such Guarantor shall reasonably request to evidence such termination or release, in each case in accordance with the terms of Section 9.11 of the Credit Agreement. Any execution and delivery of documents pursuant to this
Section 4.11 shall be without recourse to or warranty by the Administrative Agent. 
 (d) The Administrative Agent shall have no
liability whatsoever to any Guarantor as a result of any release of any Guarantor by it as permitted (or which the Administrative Agent in good faith believes to be permitted) by this Section 4.11. 
 (e) Notwithstanding anything to the contrary set forth in this Agreement, each Cash Management Bank and each Hedge Bank, by the acceptance of the
benefits under this Agreement hereby acknowledge and agree that (i) the Obligations of any Loan Party or any Restricted Subsidiary under any Secured Hedge Agreement and the Cash Management Obligations shall be guaranteed pursuant to this
Agreement only to the extent that, and for so long as, the other Obligations are so guaranteed and (ii) any release of a Guarantor effected in the manner permitted by this Agreement shall not require the consent of any Hedge Bank or Cash
Management Bank. 
 Section 4.12. Additional Guarantors. Each Material Domestic Subsidiary of the Parent Borrower that is
required to enter into this Agreement as a Guarantor pursuant to Section 6.11 of the Credit Agreement shall execute and deliver a Guaranty Supplement, and thereupon such Material Domestic Subsidiary shall 

  

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become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor herein. The execution and delivery of any such instrument
shall not require the consent of any other Guaranty Party hereunder. The rights and obligations of each Guaranty Party hereunder shall remain in full force and effect notwithstanding the addition of any new Guaranty Party as a party to this
Agreement. 
 Section 4.13. Limitation on Guaranteed Obligations. Each Guarantor and each Secured Party (by its acceptance of the
benefits of this Agreement) hereby confirms that it is its intention that this Agreement not constitute a fraudulent transfer or conveyance for purposes of any Debtor Relief Laws (including the Bankruptcy Code, the Uniform Fraudulent Conveyance Act
or any similar Federal, state or provincial law). To effectuate the foregoing intention, each Guarantor and each Secured Party (by its acceptance of the benefits of this Agreement) hereby irrevocably agrees that the Obligations owing by such
Guarantor under this Agreement shall be limited to such amount as will, after giving effect to such maximum amount and all other (contingent or otherwise) liabilities of such Guarantor that are relevant under such Debtor Relief Laws and after giving
effect to any rights to contribution and/or subrogation pursuant to any agreement providing for an equitable contribution and/or subrogation among such Guarantor and the other Guarantors, result in the Obligations of such Guarantor in respect of
such maximum amount not constituting a fraudulent transfer or conveyance. 
 [Signatures on following page] 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first
above written. 
  

			
	 AXCAN MIDCO INC.

	 as Holdings

		
	 By:
	 	 /s/ Steve Gannon

	 Name:
	 	Steve Gannon
	 Title:
	 	Senior Vice President – Finance, Chief Financial Officer and Treasurer
	
	 AXCAN INTERMEDIATE HOLDINGS INC.,
 as the Parent Borrower

		
	 By:
	 	 /s/ Steve Gannon

	 Name:
	 	Steve Gannon
	 Title:
	 	Senior Vice President – Finance, Chief Financial Officer and Treasurer

  

			
	 AXCAN US PARTNERSHIP 1 LP,

	 as the Co-Borrower

		
	By:	 	Axcan Nova Scotia 2 ULC
		 	its General Partner
		
	By:	 	 /s/ Steve Gannon

	Name:	 	Steve Gannon
	Title:	 	Senior Vice President – Finance, Chief Financial Officer and Treasurer

 Signature Page to Guaranty 

  

			
	 ACQUISITION CO. NO. 1

	 AXCAN PHARMA US, INC.

	 AXCAN PHARMA (U&V) INC.

	 AXCAN CANADA (INVEST) ULC

	 AXCAN PHARMA INC.

	 AXCAN NOVA SCOTIA 1 ULC

	 AXCAN NOVA SCOTIA 2 ULC

	 AXCAN NOVA SCOTIA 3 ULC

		
	 By:
	 	 /s/ Steve Gannon

	 Name:
	 	Steve Gannon
	 Title:
	 	Senior Vice President – Finance, Chief Financial Officer and Treasurer
	
	 AXCAN US LLC

		
	 By:
	 	Axcan Intermediate Holdings Inc.,
		 	its Sole Member
		
	 By:
	 	 /s/ Steve Gannon

	 Name:
	 	Steve Gannon
	 Title:
	 	Senior Vice President – Finance, Chief Financial Officer and Treasurer

 Signature Page to Guaranty – Guarantors 

			
	 ACQUISITION NO. 5 LLC

		
	 By
	 	 /s/ David Mims

	 Name:
	 	David Mims
	 Title:
	 	President
	
	 AXCAN COÖPERATIEVE U.A.

		
	 By:
	 	 /s/ David Mims

	 Name:
	 	David Mims
	 Title:
	 	Attorney-in-Writing
	
	 AXCAN LUXCO 1 S.ÀR.L.

		
	 By:
	 	 /s/ David Mims

	 Name:
	 	David Mims
	 Title:
	 	Authorized Signatory
	
	 AXCAN LUXCO 2 S.ÀR.L.

		
	 By:
	 	 /s/ David Mims

	 Name:
	 	David Mims
	 Title:
	 	Authorized Signatory

 Signature Page to Guaranty – Guarantors 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above
written. 
  

			
	 BANK OF AMERICA, N.A.,

	     as Administrative Agent

		
	By:	 	 /s/ Mollie S. Canup

	Name:	 	Mollie S. Canup
	Title:	 	Vice President

 Signature Page to Guaranty 

 ANNEX A 
 OTHER GUARANTORS 
 Axcan Pharma Inc. 
 Axcan US LLC 
 Acquisition Co. No. 1 
 Axcan Pharma (U&V) Inc. 
 Axcan Pharma US, Inc. 
 Acquisition No. 5 LLC 
 Axcan Coöperatieve U.A. 
 Axcan Canada (Invest) ULC 
 Axcan LuxCo 1 S.àr.l. 
 Axcan LuxCo 2 S.àr.l. 
 Axcan Nova Scotia 1 ULC 
 Axcan Nova Scotia 2 ULC 
 Axcan Nova Scotia 3 ULC 

 EXHIBIT I 
 SUPPLEMENT NO.             dated as of [    ], to the Guaranty dated as of February 25, 2008 among AXCAN MIDCO INC.
(“Holdings”), AXCAN INTERMEDIATE HOLDINGS INC. (the “Parent Borrower”), AXCAN US PARTNERSHIP 1 LP, (the “Co-Borrower”), certain other Subsidiaries of AXCAN INTERMEDIATE HOLDINGS INC. from time to
time party thereto and BANK OF AMERICA, N.A., as Administrative Agent. 
 A. Reference is made to (i) the Credit Agreement dated as of
February 25, 2008 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Parent Borrower, the Co-Borrower, Holdings, Bank of America, N.A., as Administrative Agent, Swing Line
Lender and L/C Issuer, and each lender from time to time party thereto (collectively, the “Lenders” and individually, a “Lender”), (ii) each Secured Hedge Agreement (as defined in the Credit Agreement) and
(iii) the Cash Management Obligations (as defined in the Credit Agreement). 
 B. Capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
 C. The Guarantors have entered into the Guaranty in
order to induce (x) the Lenders to make Loans and the L/C Issuers to issue Letters of Credit, (y) the Hedge Banks to enter into and/or maintain Secured Hedge Agreements and (z) the Cash Management Banks to provide Cash Management
Services. Section 4.12 of the Guaranty provides that additional Material Domestic Subsidiaries of the Borrower may become Guarantors under the Guaranty by execution and delivery of an instrument in the form of this Supplement. The undersigned
Material Domestic Subsidiary (the “New Subsidiary”) is executing this Supplement in accordance with the requirements of the Credit Agreement to become a Guarantor under the Guaranty in order to induce (x) the Lenders to make
additional Loans and the L/C Issuers to issue additional Letters of Credit, (y) the Hedge Banks to enter into and/or maintain Secured Hedge Agreements and (z) the Cash Management Banks to provide Cash Management Services and as
consideration for (x) Loans previously made and Letters of Credit previously issued, (y) Secured Hedge Agreements previously entered into and/or maintained and (z) Cash Management Services previously provided. 
 Accordingly, the Administrative Agent and the New Subsidiary agree as follows: 
 SECTION 1. In accordance with Section 4.12 of the Guaranty, the New Subsidiary by its signature below becomes a Guarantor under the Guaranty with the
same force and effect as if originally named therein as a Guarantor and the New Subsidiary hereby (a) agrees to all the terms and provisions of the Guaranty 

  

 Exhibit I-1 

 
applicable to it as a Guarantor and Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a
Guarantor thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of the Obligations does hereby, for the benefit of the Secured Parties,
their successors and assigns, irrevocably, absolutely and unconditionally guaranty, jointly with the other Guarantors and severally, the due and punctual payment and performance of the Obligations. Each reference to a “Guarantor” in
the Guaranty shall be deemed to include the New Subsidiary. The Guaranty is hereby incorporated herein by reference. 
 SECTION 2. The New
Subsidiary represents and warrants to the Administrative Agent and the Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and by general principles of equity. 
 SECTION
3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement
shall become effective when the Administrative Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary, and the Administrative Agent has executed a counterpart hereof. Delivery of an executed
signature page to this Supplement by facsimile transmission or other electronic communication shall be as effective as delivery of a manually signed counterpart of this Supplement. 
 SECTION 4. Except as expressly supplemented hereby, the Guaranty shall remain in full force and effect. 
 SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 6. If any provision contained in this Supplement is held to be invalid, illegal or unenforceable, the legality, validity, and enforceability of
the remaining provisions contained herein and in the Guaranty shall not be affected or impaired thereby. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. 
 SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 4.01 of the
Guaranty. 
 SECTION 8. The New Subsidiary agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in
connection with the execution and delivery of this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent to the extent required by Section 4.03 of the Guaranty. 
  

 Exhibit I-2 

 IN WITNESS WHEREOF, the New Subsidiary and the Administrative Agent have duly executed this Supplement to
the Guaranty as of the day and year first above written. 
  

			
	[NAME OF NEW SUBSIDIARY]
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Jurisdiction of Formation:
	
	Address Of Chief Executive Office:
	
	 BANK OF AMERICA, N.A.,
 as Administrative
Agent

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Exhibit I-3Amendment and Restatement of Employment Agreement, Dr. Frank A.G.M. Verwiel

 Exhibit 10.11 
 Execution Copy 
 AMENDMENT AND RESTATEMENT OF EMPLOYMENT AGREEMENT 
 This AGREEMENT, dated as May 16th
, 2008 (the “Agreement”), between Axcan Pharma, Inc. (“Axcan”), Axcan Pharma US Inc. (“Axcan US”), Axcan Holdings Inc. (“Parent,” and
together with Axcan and Axcan US, the “Company”), and Dr. Frank A.G.M. Verwiel (the “Executive”). 
 WHEREAS, the Company desires that the Executive continue to serve the Company as President and Chief Executive Officer, on the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:

  

	 	1.	General. 

 The Employment Agreement between the Executive
and Axcan dated May 19, 2005, as amended by Addendum to the Employment Agreement dated December 7, 2005 and Second Addendum to Employment Agreement dated January 18, 2008, is hereby amended and restated in its entirety as provided
herein. The parties agree that, subject to the terms hereof, the Executive shall continue in his employment as President and Chief Executive Officer of Axcan, and shall also be President and Chief Executive Officer of Parent, after the effective
date hereof in accordance with the terms and conditions set out herein. 
 In connection with his employment, the Executive may, from time to
time, be called upon to serve as a director or officer of one or more direct or indirect subsidiaries of the Company. 
  

	 	2.	Employment, Duties and Agreements. 

 (a) The Company hereby
agrees to employ the Executive as its President and Chief Executive Officer, and the Executive hereby accepts such position and agrees to serve the Company in such capacity during the employment period fixed by Section 4 hereof (the
“Employment Period”). In addition, the Executive shall serve as a member of the Board of Directors of Parent (the “Board”). The Executive shall have such duties and responsibilities as are consistent with the
Executive’s position and as may be assigned by the Company from time to time. During the Employment Period, the Executive shall be subject to, and shall act in accordance with, all reasonable instructions and directions of the Board and all
applicable policies and rules of the Company. 
 (b) During the Employment Period, excluding any periods of vacation and sick leave to which
the Executive is entitled, the Executive shall devote his full working time, energy and attention to the performance of his duties and responsibilities hereunder and shall faithfully and diligently endeavor to promote the business and best interests
of the Company. 

 (c) During the Employment Period, the Executive may not, without the prior written consent of Parent,
directly or indirectly, operate, participate in the management, operations or control of, or act as an executive, officer, consultant, agent or representative of, any type of business or service (other than as an executive of the Company);
provided, that it shall not be a violation of the foregoing for the Executive to manage his personal, financial and legal affairs so long as such activities do not interfere with the performance of his duties and responsibilities to the
Company as provided hereunder; and provided, further, that Parent shall not unreasonably withhold consent to the Executive serving as a director on the board of a company whose activities are not in competition, directly or indirectly,
with those of the Company or any of its direct or indirect subsidiaries and the amount of time and attention required of the Executive to satisfy his obligations as such a director are not reasonably likely to detract from the execution of his
duties and responsibilities hereunder in any material respect. 
  

	 	3.	Compensation. 

 (a) As compensation for the agreements made
by the Executive herein and the performance by the Executive of his obligations hereunder, during the Employment Period, the Company shall pay the Executive, pursuant to the Company’s normal and customary payroll procedures, a base salary at
the rate of US$645,000 per annum (the “Base Salary”). 
 (b) In
addition to the Base Salary, during the Employment Period, the Executive shall be eligible to earn an annual bonus (the “Annual Bonus”) in each fiscal year during the Employment Period, with a target Annual Bonus of 60% of Base
Salary (“Target Annual Bonus”) up to a maximum of 120% of Base Salary, based on the achievement of annual individual and Company performance objectives established by the Board, subject to the Executive’s employment with the
Company through the applicable payment date for any such Annual Bonus. In addition to the Annual Bonus with respect to each fiscal year of the Employment Period, if any, the Executive shall be entitled to receive a matching benefit (the
“Match Payment”), equal to one-half ( 1/2) the Annual Bonus payable with respect to such year, which Match
Payment shall be paid on the same date that the Annual Bonus to which such Match Payment relates is otherwise paid. 
 (c) As soon as
practicable after the Effective Date (as defined below), the Executive will receive a one-time nonrecurring grant of 640,000 options (the “Options”) to purchase shares (the “Shares”) of Parent, at an exercise price
of $10.00 per Share (subject, with respect to the Premium Options, to increase as provided in the Option Agreements). With respect to the Options, 50% shall be Time-Based Options, as such term is defined in the Option Agreements, 25% shall be
Premium Options, as such term is defined in the Option Agreements, and 25% shall be Performance Based Options, as such term is defined in the Option Agreements. The specific terms and conditions governing all aspects of the Options shall be provided
in the Company’s management equity incentive plan and in the Option grant agreement (collectively, the “Option Agreements”). Notwithstanding the foregoing or anything to the contrary in the Plan, in the event the Company
terminates the Executive’s employment without Cause or the Executive terminates his employment for Good Reason (as defined below), any Performance Based Options that have not vested as of the Date of Termination (as defined below) shall remain
outstanding for the twelve-month period following such termination of employment, and, if a Liquidity Event occurs within such twelve-month period and the requisite MoM, as defined in the Plan, shall have been achieved, the 

  

 2 

 
Performance Based Options shall, as a result and to the extent not previously vested and exercisable, become vested and exercisable in accordance with the
provisions of the Plan; provided that any portion of the Performance Based Option that, at the end of such twelve-month period, has not become vested and exercisable shall be forfeited; and provided, further, that in the event
the Executive violates any of his obligations under this Agreement or the Option Agreements, the Performance-Based Option shall immediately be forfeited. 
 (d) In addition, the Executive shall receive during the Employment Period (1) an immediate grant of restricted stock units pursuant to an RSU grant agreement substantially in the form attached hereto as
Exhibit A (an “RSU Grant Agreement”) with respect to 77,834 Shares (the “RSUs”), which RSUs shall vest on the Effective Date, and (2) on August 25, 2009 a grant of RSUs pursuant to an RSU Grant Agreement
with respect to a further 155,666 Shares, which RSUs shall vest (subject to the provisions of the RSU Grant Agreement) 50% on August 25, 2009 and 50% on August 25, 2010. Vested RSUs shall be settled in Shares on the earlier to occur of
(i) the third anniversary of the date of grant, (ii) a Change in Control, as such term is defined in the RSU Grant Agreement, (iii) a Liquidity Event, as such term is defined in the RSU Grant Agreement, or (iv) a termination of
the Executive’s employment. To the extent of any inconsistency between the Option Agreements or the RSU Grant Agreement, as applicable, and this Agreement, the provisions of the Option Agreements or the RSU Grant Agreement, as applicable, will
prevail unless otherwise expressly provided. If, prior to August 25, 2010, the employment of the Executive is terminated by the Company without Cause or by the Executive for Good Reason, in each case as defined below, or a Change in Control or
a Liquidity Event occurs, in each case as defined in the RSU Grant Agreement, the Executive shall be deemed to have been granted all RSUs described in this Section 3(d), to the extent not previously granted, immediately before such termination
of employment or such Change in Control or Liquidity Event and all such RSUs shall vest immediately and be settled in accordance with the terms of the RSU Grant Agreement. 
 (e) The Executive shall purchase 75,000 Shares from Parent (the “Investment”) for an aggregate investment of seven hundred and fifty
thousand ($750,000), subject to the Executive executing a subscription agreement reasonably satisfactory to Parent (the “Subscription Agreement”) and the Management Stockholders’ Agreement (as defined below). 
 (f) The parties recognize that the purchase of any Shares upon the exercise of the Options, or any other purchase or issuance of Shares, including
pursuant to the RSUs and the Investment as provided above, will be subject to the Executive’s execution of a Management Stockholders’ Agreement for Parent in substantially the form attached hereto as Exhibit B (the
“Management Stockholders’ Agreement” and, together with the Option Agreements, the RSU Grant Agreement and the Subscription Agreement, the “Equity Agreements”). 
 (g) In addition to the rights set forth in Section 3(d) of the Management Stockholders’ Agreement, in the event the Company terminates the
Executive’s employment without Cause or the Executive terminates his employment for Good Reason, if, as a result of the first to occur of a Liquidity Event or a Change in Control, in either case on or before the first anniversary of the Date of
Termination, the price per Share received by the Majority Stockholders (as such term is defined in the Management Stockholders’ Agreement) (the “Tail Price”) is higher than the price per Share paid to the Executive as a result
of the Company’s exercise of its call 

  

 3 

 
right pursuant to Section 3(b) of the Management Stockholders’ Agreement (the “Call Price”), then the Company shall pay to the
Executive, within 30 days following such Liquidity Event or Change in Control, for each Share purchased from the Executive pursuant to the exercise of such rights, the excess of the Tail Price over the Call Price; provided, that this
Section 3(g) shall not apply in the event the Executive violates any of his obligations under this Agreement or the Option Agreements. 
 (h) During the Employment Period: (i) except as specifically provided herein, the Executive shall be entitled to participate in all savings and retirement plans, practices, policies and programs of the Company which are made available
generally to other executive officers of the Company, and (ii) except as specifically provided herein, the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive all benefits
under, all welfare benefit plans, practices, policies and programs (including the Company’s disability plan) provided by the Company which are made available generally to other executive officers of the Company (for the avoidance of doubt, such
plans, practices, policies or programs shall not include any plan, practice, policy or program which provides benefits in the nature of severance or continuation pay). 
 (i) The Company shall reimburse the Executive for all reasonable business expenses upon the presentation of statements of such expenses in accordance with the Company’s policies and procedures now in force or as
such policies and procedures may be modified with respect to all senior executive officers of the Company. If the Executive relocates from Montreal, Quebec to the United States for the purposes of his employment with the Company, the Company shall
bear all reasonable costs and expenses of moving the Executive, his family and his personal property. 
 (j) During the Employment Period,
the Company shall pay for the Executive’s tax planning and filing, financial planning and accounting expenses in accordance with past practice, not to exceed $50,000 in the aggregate on an annual basis. 
 (k) The Company shall, for so long as it continues to be a policy of the Company to provide a car to (or reimburse on the basis of mileage) its senior
executives, provide the Executive with a car or reimburse the Executive on the basis of mileage for the use of his car, whichever method is the most advantageous to both parties, and assume all costs related to the use and operation of the
Executive’s car. 
  

	 	4.	Employment Period. 

 The Employment Period shall commence
on February 25, 2008 (the “Effective Date”) and shall terminate on the fifth anniversary of the Effective Date, provided that on the fifth anniversary of the Effective Date and on each anniversary thereafter, the Employment
Period shall automatically be extended for additional one-year periods unless either party provides the other party with notice of non-renewal at least sixty (60) days before any such anniversary (the anniversary date on which the Employment
Period terminates shall be referred to herein as the “Scheduled Termination Date”). A non-renewal notice given to the Executive by the Company as contemplated in this Section 4 shall be deemed a termination of employment by the
Company of the Executive’s 

  

 4 

 
employment without Cause, and the Executive will be entitled to receive the payments as set forth in Section 6(a). Notwithstanding the foregoing, the
Executive’s employment hereunder may be terminated during the Employment Period prior to the Scheduled Termination Date upon the earliest to occur of any one of the following events (at which time the Employment Period shall be terminated):

 (a) Death. The Executive’s employment hereunder shall terminate upon his death. 
 (b) Disability. The Company shall be entitled to terminate the Executive’s employment hereunder for “Disability” if, as a result of
the Executive’s incapacity due to physical or mental illness or injury, the Executive shall have been unable to perform his duties hereunder for a period of one hundred eighty (180) consecutive days. 
 (c) Cause. The Company may terminate the Executive’s employment hereunder for Cause. For purposes of this Agreement, the term
“Cause” shall mean: (i) gross negligence or willful misconduct of the Executive in connection with the performance of his duties hereunder; (ii) the Executive’s conviction of (or pleading guilty or pleading no contest
or nolo contendere to) a felony or comparable crime in any jurisdiction that does not classify crimes using “felony”, other than minor traffic offenses and other minor offenses that are not inconsistent with the Company’s
reasonable expectations of a person occupying the position of Chief Executive Officer; (iii) the Executive’s unauthorized removal, use or disclosure of the Company’s or any affiliate’s confidential information that could
reasonably be expected to cause harm to the Company; provided, that the Executive shall, to the extent an unauthorized removal is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after
written notice by the Company to the Executive to cure such removal of confidential information; (iv) the performance by the Executive of any act or acts of dishonesty in connection with or relating to the Company’s or its affiliates’
business or the misappropriation (or attempted misappropriation) of any of the Company’s or any of its affiliates’ funds or property; (v) a material breach of any of the Executive’s obligations under any agreement entered into
between the Executive and the Company or any of its affiliates that is material to the employment relationship between Company or any of its affiliates and the Executive or the relationship between the Company and the Executive as investor or
prospective investor in the Company; provided, that the Executive shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to
the Executive to cure such breach; or (vi) a breach of the Company’s policies or procedures, which breach causes or could reasonably be expected to cause harm to the Company or its business reputation; provided, that the Executive
shall, to the extent a breach is reasonably susceptible to cure, be given a reasonable opportunity, not to exceed thirty (30) days, after written notice by the Company to the Executive to cure such breach. 
 (d) Without Cause. The Company may terminate the Executive’s employment hereunder during the Employment Period without Cause. 
  

 5 

 (e) Voluntarily. The Executive may voluntarily terminate his employment hereunder, without Good Reason,
provided that the Executive provides the Company with notice of his intent to terminate his employment at least 60 days in advance of the Date of Termination (as defined in Section 5 below). 
 (f) For Good Reason. The Executive may terminate his employment hereunder for Good Reason, provided the Executive complies with all requirements of such
a termination as provided hereunder. 
 5. Termination Procedure. 
 (a) Notice of Termination. Any termination of the Executive’s employment by the Company or by the Executive during the Employment Period (other than
a termination on account of the death of Executive) shall be communicated by written “Notice of Termination” to the other party hereto in accordance with Section 1l(a). 
 (b) Date of Termination. “Date of Termination” shall mean (i) if the Executive’s employment is terminated by his death, the
date of his death, (ii) if the Executive’s employment is terminated pursuant to Section 4(b), on the date the Executive receives Notice of Termination from the Company, (iii) if the Executive voluntarily terminates his employment
(whether or not for Good Reason), the date specified in the notice given pursuant to Section 4(e) herein which shall not be less than 60 days after the Notice of Termination, and (iv) if the Executive’s employment is terminated for
any other reason, the date on which a Notice of Termination is given or any later date (within thirty (30) days, or any alternative time period agreed upon by the parties, after the giving of such notice) set forth in such Notice of
Termination. 
 6. Termination Payments. 
 (a) Without Cause. In the event the Employment Period terminates under this Agreement as a result of the Company terminating the Executive’s employment without Cause or the Executive terminating his employment for Good Reason, the
Company shall pay the Executive (A) within thirty (30) days following the Date of Termination, the Executive’s accrued but unused vacation and Base Salary through the Date of Termination (to the extent not theretofore paid) (the
“Accrued Benefits”) and (B) two (2) times the Executive’s Base Salary and Target Annual Bonus, payable in equal installments over a twenty four (24)-month period in accordance with the Company’s standard payroll
practices. For the twenty four (24)-month period commencing on the day after Executive’s Date of Termination, the Company shall continue to provide medical benefits to the Executive which are substantially similar to those provided generally to
executive officers of the Company (including any required contribution by such executive officers) pursuant to such medical plan as may be in effect from time to time as if the Executive’s employment had not been terminated (it being understood
that the Company may provide such coverage by paying the Executive’s COBRA premiums, less any contribution required by the Executive); provided, however, that if the Executive becomes re-employed with another employer and is
eligible to receive comparable medical or other welfare benefits under another employer provided plan, the corresponding medical and other welfare benefits described herein shall be terminated, but the Executive shall have the right to receive the
other payments provided herein unaffected by any duty to mitigate. The Executive shall promptly notify the Company of any changes in his medical 

  

 6 

 
benefits coverage. Coverage for the period after the end of the 18-month period following the Date of Termination shall be deemed to be in-kind payments of
the premiums or statutorily-required health contributions on the Executive’s behalf and will be taxable income to the Executive. The payments and benefits provided under this Section 6(a) are subject to and conditioned upon the Executive
executing a valid general release and waiver (in the form provided by the Company), waiving all claims the Executive may have against the Company, its successors, assigns, affiliates, executives, officers and directors, and such waiver becoming
effective, and the payments and benefits are subject to and conditioned upon the Executive’s compliance with the Restrictive Covenants provided in Sections 8 and 9 hereof. For the avoidance of doubt, upon a termination of the Employment Period
without Cause or as a result of Good Reason, the Executive shall not be entitled to any other compensation or benefits not expressly provided for in this section, regardless of the time that would otherwise remain in the Employment Period had the
Employment Period not been terminated without Cause or for Good Reason. Except as provided in this Section 6(a), or pursuant to the terms of the Option Agreements or the RSU Grant Agreement in accordance with Sections 3(c) or (d), as the case
may be, and except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance benefits on the terms and to the extent required by Section 4980B of the Internal Revenue Code of 1986, as
amended (the “Code”) and Section 601 of the Employee Retirement Income Security Act of 1974, as amended (which provisions are commonly known as “COBRA”) or such other analogous legislation as may be applicable to the
Executive, the Company shall have no additional obligations under this Agreement. For purposes of this Agreement, “Good Reason” shall mean, without the Executive’s consent: (i) any materially adverse change in the
Executive’s title, (ii) any material diminution in the Executive’s authority or responsibilities, (iii) any material reduction, either from one year to the next, or within the current year, in the Executive’s base salary or
bonus opportunity, other than, in the case of bonus opportunity, a decrease that applies to a similarly situated class of employees of the Company or its affiliates, or (iv) a change of the Executive’s principal place of business to a
location more than 75 kilometers from its present location, provided, that the transfer of the Executive’s employment to either Pennsylvania or New Jersey in the United States of America will not constitute Good Reason; and
provided, further, that Good Reason shall not occur unless the Executive shall have given a detailed written notice to the Company of any fact or circumstance believed by the Executive to constitute Good Reason within thirty
(30) days of the occurrence of such fact or circumstance, and the Company shall have thirty (30) days to cure such fact or circumstance and shall have failed to so cure. 
 (b) Change in Control. Subject to Section 1l(m), in the event the Employment Period terminates under this Agreement as a result of the Company
terminating the Executive without Cause or the Executive terminating his employment for Good Reason, within twelve (12) months following a transaction or event constituting a Change in Control (as such term is defined in the RSU Grant
Agreement, including the requirement that the Change in Control constitute a change in the ownership or effective control, or a change in the ownership of a substantial portion of the assets, of Parent within the meaning of
Section 409A(a)(2)(A)(v) of the Code and U.S. Treasury Regulation Section 1.409A-3(i)(5) (a “409A Change in Control”)), the Company shall provide the Executive with all payments and benefits described in Section 6(a) above,
except the amounts payable under clause (B) of the first sentence of Section 6(a) above shall be payable immediately rather than over a twenty-four (24) month period. Notwithstanding the foregoing, if, 

  

 7 

 
notwithstanding that a Change in Control does not constitute a 409A Change in Control, the Company and Executive reasonably and in good faith determine,
based on the advice of outside counsel, that payment of the amount payable under clause (B) of the first sentence of Section 6(a) above could be made as provided in this Section 6(b) without the imposition of any penalty under
Section 409A of the Code, such amount shall be paid immediately rather than over a twenty-four (24) month period. 
 (c) Cause or
Voluntarily Other than for Good Reason. If the Executive’s employment is terminated during the Employment Period by the Company for Cause or voluntarily by the Executive other than for Good Reason, the Company shall pay the Executive within
thirty (30) days following the Date of Termination the Accrued Benefits. Except as provided in this Section 6(c), or pursuant to the terms of the Option Agreements or the RSU Grant Agreement in accordance with Sections 3(c) or (d), as the
case may be, and except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance benefits on the terms and to the extent required by COBRA or any other analogous legislation as may be
applicable to the Executive, the Company shall have no additional obligations under this Agreement. 
 (d) Disability or Death. If the
Executive’s employment is terminated during the Employment Period as a result of the Executive’s death or Disability, the Company shall pay the Executive or the Executive’s estate, as the case may be, within thirty (30) days
following the Date of Termination, the Accrued Benefits. Except as provided in this Section 6(d), or pursuant to the terms of the Option Agreements or the RSU Grant Agreement in accordance with Sections 3(c) or (d), as the case may be, and
except for any vested benefits under any tax qualified pension plans of the Company, and continuation of health insurance benefits on the terms and to the extent required by COBRA or any other analogous legislation as may be applicable to the
Executive, the Company shall have no additional obligations under this Agreement. 
  

	 	7.	Legal Fees; Officers’ Liability Insurance. 

 (a) In
the event of any contest or dispute between the Company and the Executive with respect to this Agreement or the Executive’s employment hereunder, each of the parties shall be responsible for its respective legal fees and expenses. 

(b) During the Employment Period and for a period of six years thereafter, the Executive shall be entitled to the same directors’ and
officers’ liability insurance coverage that the Company provides generally to its other directors and officers, as may be amended from time to time for such directors and officers. 
  

	 	8.	Non-Solicitation. 

 During the Employment Period and for
twenty-four (24) months thereafter, the Executive hereby agrees not to, directly or indirectly, solicit or assist any other person or entity in soliciting any employee of Parent, Axcan, Axcan US or any of their respective affiliates to perform
services for any entity (other than Parent, Axcan, Axcan US or their respective affiliates), or attempt to induce 

  

 8 

 
any such employee to leave the employ of Parent, Axcan, Axcan US or their respective affiliates, or interfere in any manner with any such employee’s
relationship with Parent, Axcan, Axcan US or their respective affiliates, or solicit, hire or engage on behalf of himself or any other Person (as defined below) anyone who was employed by Parent, Axcan, Axcan US or their respective affiliates during
the six-month period preceding such hiring or engagement. Nothing herein shall preclude the Executive or such other person or entity from using any public advertising of a nature not specifically directed to employees of Parent, Axcan, Axcan US or
any of their affiliates to solicit or hire employees of Axcan, Axcan US or Parent or their respective affiliates if such employees initiate contact with the Executive further to such advertising without specific solicitation. 
  

	 	9.	Confidentiality; Non-Compete; Non-Disclosure; Non-Disparagement. 

 (a) The Executive hereby agrees that, during the Employment Period and thereafter, he will hold in strict confidence any proprietary or Confidential Information related to Parent, Axcan, Axcan US or their respective affiliates. For purposes
of this Agreement, the term “Confidential Information” shall mean all information of Parent, Axcan, Axcan US or their respective affiliates (in whatever form) which is not generally known to the public, including without limitation
any inventions, processes, methods of distribution, customer lists or customers’ or trade secrets, but shall exclude information that: 
  

	 	(i)	is or becomes generally available to the public other than as a result of disclosure directly or indirectly by the Executive in breach of his or her obligations;

  

	 	(ii)	is or becomes available to the Executive on a non-confidential basis from a source other than the Executive unless the Executive knows after due inquiry that such source is
prohibited from disclosing the information to the Executive by a contractual, fiduciary or other legal obligation to the Company or any of its affiliates; or 

  

	 	(iii)	is or was independently acquired or developed by the Executive after the termination of his or her employment without violating the Executive’s obligations under this Agreement
or any other obligation of confidentiality the Executive may have to the Company or any of its affiliates. 

 (b) The Executive
and the Company agree that Parent, Axcan, Axcan US or their respective affiliates would likely suffer significant harm from the Executive’s competing with Parent, Axcan, Axcan US or their respective affiliates during the Employment Period and
for some period of time thereafter. Accordingly, the Executive agrees that he will not, during the Employment Period and for a period of eighteen months following the termination of the Employment Period, directly or indirectly, own, operate,
manage, consult with, control, participate in the management or control of, be employed by, maintain or continue any interest whatsoever in, any Person, in any jurisdiction in which the Company does business at the Date of Termination, that
(i) designs, manufactures, distributes, markets or promotes pharmaceutical products in the field of gastroenterology or (ii) is engaged in any other business in 

  

 9 

 
which the Company is engaged as of, or in which the Company is reasonably likely to become engaged (by reason of product development work undertaken by the
Company or negotiation of potential acquisitions prior to the Date of Termination, in each case that has received approval of the Board of Directors of the Company) within the 6 months following, the Date of Termination (each of (i) and (ii),
the “Restricted Field”), without the Company’s written consent. Notwithstanding the foregoing, the Executive shall have the right to seek employment with a Person engaged in the Restricted Field if (i) such Person’s
total activities and revenues in the Restricted Field represent less than twenty percent (20%) of such Person’s total activities and revenues (provided that, if the Restricted Field is a business in which the Company is not yet engaged as
of the Date of Termination, such percentage shall represent less than forty percent (40%) of such Person’s total activities and revenues) and (ii) the Executive is not hired to manage, oversee or be in any way associated with, and
does not manage, oversee or become associated with, the Restricted Field. The Executive shall, however, not be in default under this Section 5 (a) solely by virtue of the Executive holding, strictly for portfolio purposes and as a passive
investor, no more than one percent (1%) of the issued and outstanding shares of, or any other interest in, any body corporate or other entity whose shares are listed on any widely recognized stock exchange, the business of which is in the
Restricted Field or is otherwise in competition, in whole or in part, with the business of the Company. For purposes of this Agreement, the term “Person” shall mean any individual, partnership, corporation, limited liability
company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof. 
 (c) The Executive
hereby agrees that, upon the termination of the Employment Period, he shall not take, without the prior written consent of the Company, any drawing, blueprint, specification or other document (in whatever form) of the Company or any of its
affiliates, which is of a confidential nature relating to the Company or any of its affiliates, or, without limitation, relating to its or their methods of distribution, or any description of any formulas or secret processes and will return any such
information (in whatever form) then in his possession. 
 (d) The Executive hereby agrees not to defame or disparage Parent, Axcan, Axcan US
or any of their respective affiliates and any of the officers, directors, members or executives of the foregoing. The Executive hereby agrees to cooperate with Parent, Axcan, Axcan US or any of their respective affiliates in refuting any defamatory
or disparaging remarks by any third party made in respect of Parent, Axcan, Axcan US or any of their respective affiliates or any directors, members, officers or executives of the foregoing. 
  

	 	10.	Injunctive Relief. 

 It is impossible to measure in money
the damages that will accrue to Parent, Axcan, Axcan US or any of their respective affiliates in the event that the Executive breaches any of the restrictive covenants provided in Sections 8 and 9 hereof. In the event that the Executive breaches any
such restrictive covenant, Parent, Axcan, Axcan US or any of their respective affiliates shall be entitled to an injunction restraining the Executive from violating such restrictive covenant (without posting any bond). If Parent, Axcan, Axcan US or
any of their respective affiliates shall institute any action or proceeding to enforce any such restrictive covenant, the Executive hereby waives the claim or defense that Parent, Axcan, Axcan US or any of their respective affiliates has an adequate

  

 10 

 
remedy at law and agrees not to assert in any such action or proceeding the claim or defense that Parent, Axcan, Axcan US or any of their respective
affiliates has an adequate remedy at law. The foregoing shall not prejudice Parent’s, Axcan’s, Axcan US’s or any of their respective affiliates’ right to require the Executive to account for and pay over to Parent, Axcan, Axcan
US or any of their respective affiliates, and the Executive hereby agrees to account for and pay over, the compensation, profits, monies, accruals or other benefits derived or received by the Executive as a result of any transaction constituting a
breach of any of the restrictive covenants provided in Sections 8 and 9 hereof. 
  

	 	11.	Miscellaneous. 

 (a) Any notice or other communication
required or permitted under this Agreement shall be effective only if it is in writing and shall be deemed to be given when delivered personally or four days after it is mailed by registered or certified mail, postage prepaid, return receipt
requested or one day after it is sent by a reputable overnight courier service and, in each case, addressed as follows (or if it is sent through any other method agreed upon by the parties): 
 If to the Company: 
 Axcan Pharma, Inc.

 597 Laurier Boulevard 
 Mont
Saint-Hilaire, Quebec 
 J3H 6C4 Canada 
 Attn: General Counsel 
 If to Parent: 
 Axcan Holdings Inc. 
 345 California Street 
 Suite 3300 
 San Francisco, CA 94104

 Attn: General Counsel 
 If to
the Executive: 
 Dr. Frank A.G.M. Verwiel 
 48 Russell Avenue 
 Montreal, Quebec 
 H3P 1A8 
 or to such other address as any party hereto may
designate by notice to the others or, in the case of the Executive, to such other address as is his current principal residence according to the employment records of the Company. 
  

 11 

 (b) This Agreement and the agreements or arrangements expressly referenced herein, including without
limitation the benefits as set forth in Section 3 hereof, shall constitute the entire agreement among the parties hereto with respect to the Executive’s employment hereunder, and supersede and are in full substitution for any and all prior
understandings or agreements with respect to the Executive’s employment. 
 (c) This Agreement may be amended only by an instrument in
writing signed by the parties hereto, and any provision hereof may be waived only by an instrument in writing signed by the party or parties against whom or which enforcement of such waiver is sought. The failure of any party hereto at any time to
require the performance by any other party hereto of any provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by any party hereto of a breach of any provision hereof be taken
or held to be a waiver of any succeeding breach of such provision or a waiver of the provision itself or a waiver of any other provision of this Agreement. 
 (d) The parties hereto acknowledge and agree that each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of
construction to the effect that ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement. Rather, the terms of this Agreement shall be construed fairly as to both parties hereto and not in
favor or against either party. 
 (e) The parties hereto hereby represent that they each have the authority to enter into this Agreement, and
the Executive hereby represents to the Company that the execution of, and performance of duties under, this Agreement shall not constitute a breach of or otherwise violate any other agreement to which the Executive is a party. The Executive hereby
further represents to the Company that he will not utilize or disclose any confidential information obtained by the Executive in connection with any former employment with respect to his duties and responsibilities hereunder. 
 (f) This Agreement is binding on and is for the benefit of the parties hereto and their respective successors, assigns, heirs, executors, administrators
and other legal representatives. Neither this Agreement nor any right or obligation hereunder may be assigned by the Executive. 
 (g) The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such succession had taken place. As used in the Agreement, “the Company” shall mean both the Company as defined above and any such successor that assumes this Agreement,
by operation of law or otherwise. 
 (h) Any provision of this Agreement (or portion thereof) which is deemed invalid, illegal or
unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this Section, be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions thereof in such
jurisdiction or rendering that or any other 

  

 12 

 
provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal or unenforceable
because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable. No waiver of any provision or
violation of this Agreement by the Company shall be implied by the Company’s forbearance or failure to take action. 
 (i) The Company
may withhold from any amounts payable to the Executive hereunder all federal, state, provincial, city or other taxes that the Company may reasonably determine are required to be withheld pursuant to any applicable law or regulation, (it being
understood, that the Executive shall be responsible for payment of all taxes in respect of the payments and benefits provided herein). 
 (j)
This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to its principles of conflicts of law. 
 (k) This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A facsimile of a signature shall be deemed to be
and have the effect of an original signature. 
 (1) The headings in this Agreement are inserted for convenience of reference only and shall
not be a part of or control or affect the meaning of any provision hereof. 
 (m) Notwithstanding anything to the contrary herein, in the
event any payment hereunder would result in the imposition of an excise tax pursuant to Section 409A of the Internal Revenue Code of 1986-or the regulations thereunder, as amended (the “409A Excise Tax”), the Executive agrees
that such payment shall be postponed to the date that is the earliest date upon which such payment would no longer result in the imposition of a 409A Excise Tax. 
 (n) Language. The parties hereto confirm their express wish that this Agreement, as well as all other documents related to it, including notices, be drawn up in the English language only and declare themselves
satisfied therewith; les parties aux présentes confirment leur volonté expresse de voir la présente convention de même que tous les documents, y compris tous avis, s’y rattachant, rédigés en langue
anglaise seulement et s’en déclarent satisfaits. 
 *    *    *    *    * 
  

 13 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 
  

			
	Dr. Frank A.G.M. Verwiel
	
	 /s/ Frank A.G.M. Verwiel

	Name:	 	Frank A.G.M. Verwiel
	
	Axcan Pharma, Inc.
	
	 /s/ Richard Tarte

	Name:	 	Richard Tarte
	Title:	 	General Counsel
	
	Axcan Pharma US Inc.
	
	 /s/ Richard Tarte

	Name:	 	Richard Tarte
	Title:	 	General Counsel
	
	Axcan Holdings Inc.
	
	 /s/ Richard Tarte

	Name:	 	Richard Tarte
	Title:	 	General Counsel

  

 14 

 EXHIBIT A 
 [Form of Restricted Stock Unit Grant Agreement 
 between Axcan Holdings Inc. and U.S. Grantee] 

 EXHIBIT B 
 [Form of Axcan Holdings Inc. Management Stockholders’ Agreement]

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