Document:

EX-10.1

 Exhibit 10.1 

FOIA CONFIDENTIAL TREATMENT REQUEST BY 

BIODELIVERY SCIENCES INTERNATIONAL, INC. 

IRS EMPLOYER IDENTIFICATION NUMBER 35-2089858 

 

***CONFIDENTIAL TREATMENT REQUESTED*** 

NOTE: THE PORTIONS HEREOF FOR WHICH CONFIDENTIAL TREATMENT ARE 

BEING REQUESTED ARE DENOTED WITH “***” 

LICENSE AGREEMENT 
 This
License Agreement (“Agreement”) is made as of July 12, 2017 (the “Effective Date”) by and between BioDelivery Sciences International, Inc., a Delaware corporation with its principal offices at 4131 Parklake Avenue,
Suite 225, Raleigh, North Carolina 27612 (“Parent”), its wholly-owned subsidiary Arius Pharmaceuticals, Inc., a Delaware corporation with an office at the same address (“Arius”, and together with Parent,
“BDSI”), and Purdue Pharma, an Ontario limited partnership with its principal office at 575 Granite Court, Pickering, ON Canada L1W 3W8 (“Purdue”). BDSI and Purdue are sometimes referred to collectively herein as
the “Parties” or singly as a “Party.” 
 R E C I T A L S 

WHEREAS, BDSI wishes to grant to Purdue, and Purdue wishes to obtain from BDSI, an exclusive license to develop, manufacture (or have
manufactured), market, advertise, promote, distribute, offer for sale, sell, and import the Licensed Product in the Territory on the terms and subject to the conditions set forth herein. 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and agreements contained herein, the Parties,
intending to be legally bound, do hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.01 Definitions. In addition to the capitalized terms defined elsewhere in this Agreement, the following terms
used in this Agreement shall have the meaning set forth below: 
 “AAA” shall have the meaning set forth in
Section 14.03(c). 
 “Acquired Entity” means, in the event BDSI or any Affiliate thereof acquires any Third
Party or all or substantially all of the stock, assets, or business of a Third Party or otherwise obtains control of a Third Party (with “control”, for purposes of this definition, having the meaning set forth below in the definition of
“Affiliate”), such Third Party or any Affiliate thereof. 

  
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 “Acquiring Entity” means any Third Party that acquires all or substantially
all of the stock, assets, or business of BDSI or any Affiliate thereof (or all or substantially all of the assets or business thereof related, in either case, to this Agreement) or otherwise obtains control of BDSI or any Affiliate thereof (with
“control”, for purposes of this definition, having the meaning set forth below in the definition of “Affiliate”), or any Affiliate of such Third Party. 

“ADE” means any Adverse Event associated with any Licensed Product or Demonstration Sample (including Adverse Drug
Reactions). 
 “Administrative NDS” shall have the meaning set forth in Section 2.01. 

“Adverse BDSI Acquirer” means a Third Party that is marketing, advertising, promoting, offering for sale, or selling, or has
granted exclusive rights to another Third Party to engage in any of the foregoing with respect to, a BDSI Competing Product in the Territory or a Purdue Competing Product in the Territory, provided that marketing, advertising, or promotional efforts
primarily intended for consumption outside the Territory that are nonetheless visible, audible, or otherwise accessible inside the Territory (e.g., via the internet, television or radio broadcast, or the like) shall not themselves be construed to
constitute any of the foregoing activities in the Territory. 
 “Adverse BDSI Acquisition” means the occurrence of any of
the following: (a) any consolidation or merger of Parent with or into any Adverse BDSI Acquirer, or any other corporate reorganization, acquisition or other transaction involving Parent and an Adverse BDSI Acquirer, in which those persons or
entities that are stockholders of Parent immediately prior to such consolidation, merger or reorganization own less than fifty percent (50%) of the surviving entity’s voting power immediately after such consolidation, merger or reorganization;
(b) a change in the legal or beneficial ownership of fifty percent (50%) or more of the voting securities of Parent (whether in a single transaction or series of related transactions) where, immediately after giving effect to such change, the
legal or beneficial owner of more than fifty percent (50%) of the voting securities of Parent is an Adverse BDSI Acquirer; or (c) the sale, transfer, lease, license or other disposition of all or substantially all of Parent’s assets or
business (or that portion thereof related to the subject matter of this Agreement, including the shares or assets of Arius or Arius Two) in one or a series of related transactions to an Adverse BDSI Acquirer. Notwithstanding the foregoing, an
Adverse BDSI Acquisition shall not include a bona fide financing transaction in which voting control of Parent transfers to one or more persons or entities who acquire Parent’s equity securities from Parent in exchange for either an investment
in Parent or the cancellation of indebtedness owed by Parent, or a combination thereof, unless the securities issued to a single Adverse BDSI Acquirer in such financing constitute more than fifty percent (50%) of the voting securities of Parent
outstanding immediately following such financing, in which case such transfer shall be deemed an Adverse BDSI Acquisition. 

“Adverse Event” or “AE” means any untoward medical occurrence in a patient or clinical investigation
subject administered Licensed Products or Demonstration Samples and which does not necessarily have to have a causal relationship with such treatment. 

  
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 “Adverse Reaction” or “Adverse Drug Reaction” or
“ADR” means a response to any Licensed Product or Demonstration Sample which is noxious and unintended and which occurs at doses normally used in man for prophylaxis, diagnosis or therapy of disease or for modification of
physiological function. 
 “Affiliate” means an individual, trust, business trust, joint venture, partnership, corporation,
association or any other entity which controls, is controlled by or is under common control with, a Party. For the purposes of this definition, the term “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”) as used with respect to any Party, shall mean the possession (directly or indirectly) of (a) more than fifty percent (50%) (or such lesser percentage which is the maximum allowed to
be owned by a foreign corporation in a particular jurisdiction) of the outstanding voting securities of a corporation or comparable equity interest in any other type of entity or (b) the power to direct or cause the direction of the management
or policies of any such Party (whether through ownership of securities or other ownership interests, by contract or otherwise). 

“Agreement” shall have the meaning set forth in the introduction. 

“API” means an active pharmaceutical ingredient. 

“Applicable Laws” means all applicable laws, rules, regulations and guidelines that may apply to the development, marketing,
manufacturing or sale of any Licensed Product or the performance of either Party’s obligations under this Agreement, including but not limited to all laws, regulations and guidelines governing the import, export, development, marketing,
distribution and sale of any Licensed Product in the Territory, to the extent relevant, all “current Good Manufacturing Practices” or “current Good Clinical Practices” standards or guidelines promulgated by Governmental
Authorities. 
 “Arius” shall have the meaning set forth in the introduction. 

“Arius Two” shall have the meaning set forth in Section 9.09. 

“Audited Party” shall have the meaning set forth in Section 14.11. 

“BDSI” shall have the meaning set forth in the introduction. 

“BDSI Acquisition” means the occurrence of any of the following: (a) any consolidation or merger of Parent with or into
any Third Party, or any other corporate reorganization, acquisition or other transaction involving a Third Party, in which those persons or entities that are stockholders of Parent immediately prior to such consolidation, merger or reorganization
own less than fifty percent (50%) of the surviving entity’s voting power immediately after such consolidation, merger or reorganization; (b) a change in the legal or beneficial ownership of fifty percent (50%) or more of the voting
securities of Parent (whether in a single transaction or series of related transactions) where, immediately after giving effect to such change, the legal or beneficial owner of more than fifty percent (50%) of the voting securities of Parent is a
Third Party; or (c) the sale, transfer, lease, license or other disposition of all or substantially all of Parent’s assets or business related to the subject matter of this Agreement in one or a series of related transactions to a Third
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not include a bona fide financing transaction in which voting control of Parent transfers to one or more persons or entities who acquire Parent’s equity securities from Parent in exchange
for either an investment in Parent or the cancellation of indebtedness owed by Parent, or a combination thereof, unless the securities issued to a single Third Party in such financing constitute more than fifty percent (50%) of the voting securities
of Parent outstanding immediately following such financing, in which case such transfer shall be deemed a BDSI Acquisition. 

“BDSI Competing Product” means ***. 

“BDSI Documentation” means all documentation, reports, case report forms, data, information and the like, including all
notes, summaries and analyses related thereto, in whatever form or media, in the possession or control of BDSI or any Affiliate thereof, which result from or otherwise describe (i) pre-clinical, clinical,
or other research and development activities directly related to any Licensed Product, including but not limited to clinical studies or manufacturing- or formulation-related activities, and/or any results thereof, (ii) information directly
concerning the use or administration of Licensed Products, including but not limited to AEs, ADRs, ADEs, and/or SAEs, or (iii) or other BDSI Know-How contained or referenced in any Governmental Approvals
or Regulatory Filings. 
 “BDSI Improvements” shall have the meaning set forth in Section 3.05. 

“BDSI Indemnitees” shall have the meaning set forth in Section 10.02. 

“BDSI TPMCXA” means: 

(i) for units of Licensed Product supplied by BDSI to Purdue under the Supply Agreement, the total prices paid by BDSI to all
Third Party manufacturers involved in manufacturing a unit of a particular dosage strength of such Licensed Product for such unit supplied to Purdue pursuant to the Supply Agreement (excluding analytical costs for
in-process and release testing performed by such Third Party manufacturers); or 

(ii) for units of Licensed Product not supplied by BDSI under the Supply Agreement, Purdue’s reasonable, documented direct
cost of procuring such Licensed Product (excluding analytical costs for in-process and release testing performed by such manufacturers). 

“BEMA” means the proprietary bioerodible, mucoadhesive multi-layer polymer film technology Controlled by BDSI, as embodied in
the Current Product as it exists as of the Effective Date, or described in or claimed in any Licensed Patents, and as such may be improved or enhanced by any Licensed Improvement. 

“BEMA-based Product” means any product that incorporates or is based directly on the use of the BEMA technology. 

  
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 “Books and Records” means, in whatever media, any and all books and records,
reports and accounts directly related to the Commercialization of the Licensed Product in the Territory or any other activities of the relevant Party (or Affiliate thereof) with respect to Licensed Products. 

“Calendar Quarter” means each of those three (3) calendar month periods of each Calendar Year ending March 31,
June 30, September 30 and December 31, provided, that the initial Calendar Quarter shall begin on the Effective Date and end September 30, 2017. 

“Calendar Year” means (a) for the first Calendar Year, the period commencing on the Effective Date and ending on
December 31 of the same year, (b) for the Calendar Year in which this Agreement expires or is terminated, the period beginning on January 1 of such Calendar Year and ending on the effective date of such expiration or termination, and
(c) for all other years, each successive twelve (12) consecutive month period beginning on January 1 and ending December 31. 

“CA$” refers to an amount expressed in Canadian dollars. 

“Claims” shall have the meaning set forth in Section 10.01. 

“Commercialization” means the marketing, promotion, advertising, offering for sale, selling and/or distribution of any
Licensed Product; and the term “Commercialize” has a corresponding meaning. 
 “Commercially Reasonable
Efforts” means, with respect to the efforts to be expended by a Party with respect to any objective hereunder, ***. 

“Competent Authorities” means, collectively, the Governmental Authorities in the Territory responsible for the regulation of
medicinal products intended for human use, including Health Canada. 
 “Confidential Information” means all information and
know-how and any tangible embodiments thereof provided by or on behalf of one Party to the other Party or an Affiliate thereof either in connection with the discussions and negotiations pertaining to this
Agreement or in the course of performing under this Agreement, which may include data, knowledge, practices, processes, ideas, research plans, formulation or manufacturing processes and techniques, scientific, manufacturing, marketing and business
plans, and financial and personnel matters relating to the disclosing Party or to its present or future products, sales, suppliers, customers, employees, investors or business; provided, that, information or
know-how of a Party will not be deemed Confidential Information of such Party for purposes of this Agreement if such information or know-how: (a) was already known
to the receiving Party, other than under an obligation of confidentiality or non-use, at the time of disclosure to such receiving Party, as can be shown by written records; (b) was generally available or
known to parties reasonably skilled in the field to which such information or know-how pertains, or was otherwise part of the public domain, at the time of its disclosure to such receiving Party;
(c) became generally available or known to parties reasonably skilled in the field to which such information or know-

  
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how pertains, or otherwise became part of the public domain, after its disclosure to such receiving Party through no fault of the receiving Party; (d) was disclosed to such receiving Party,
other than under an obligation of confidentiality or non-use, by a Third Party who had no obligation to the disclosing Party not to disclose such information or know-how
to others, as can be shown by written records; or (e) was independently discovered or developed by such receiving Party, as can be shown by its written records, without the use or benefit of, or reliance on, Confidential Information of the
disclosing Party. Notwithstanding anything to the contrary, and regardless of which Party or Affiliate thereof first discloses any information concerning Product Improvements to the other Party or any Affiliate thereof, any information related to
Product Improvements shall be the Confidential Information of BDSI, and BDSI shall be deemed the disclosing Party, and Purdue the receiving Party, with respect to such Confidential Information. 

“Control” means, with respect to any intellectual property right, regulatory documentation, clinical data, trademark or trade
name, the possession of the ability or right, whether by ownership, license or otherwise, to grant a license or sublicense as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing on the
Effective Date or, with respect to any intellectual property rights, regulatory documentation, clinical data, trademark or trade name acquired from a Third Party following the Effective Date, any agreements in effect at the time such rights are
acquired or licensed. For Know-How or Patents to which a Party obtains control pursuant to a written agreement executed between such Party or any Affiliate thereof and a Third Party after the Effective Date,
“Control” shall only be deemed to exist pursuant to the first sentence of this definition if the grant of a license or sublicense thereunder, or exercise of rights by the other Party or an Affiliate thereof under such a license or
sublicense, in accordance with this Agreement does not result in such Party or any Affiliate thereof owing payment to a Third Party, unless the other Party agrees to pay the resulting amounts due to the applicable Third Party as a condition of
receiving such grant of rights. 
 “Cover” means that the use, manufacture, sale, offer for sale, development,
commercialization or importation of the subject matter in question by an unlicensed entity would infringe a Valid Claim of a Patent. 

“Current Product” means that certain Licensed Product that is the subject of NDS Dossier ID: 183069 (the “Current
Product NDS”). 
 “Demonstration Samples” means a BEMA-based Product, lacking any API, that otherwise would
constitute a Licensed Product and is used to demonstrate the manner in which a Licensed Product is prepared and used, and labeled “demonstration samples, for demonstration purposes only.” 

“DINs” means the drug identification numbers assigned by Health Canada to the Licensed Product, which are 02465221, 02465248,
02465256, 02465264, 02465272, 02465280, and 02465299. 
 “Effective Date” shall have the meaning set forth in the
introduction. 

  
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 “Endo” means Endo Pharmaceuticals Inc. 

“Endo Health Canada Letter” means the letter from Endo, Paladin, and/or the appropriate affiliate thereof to Health Canada,
duly executed by Endo, Paladin, and/or the appropriate affiliate thereof and in substantially such form as attached hereto as Exhibit F, to be filed with Health Canada, in e-CTD format, to permit Health
Canada access to the buprenorphine (BELBUCA) files in respect of Purdue’s Administrative New Drug Submission for the transfer of the DINs from Paladin to Purdue. 

“Exchange Rate” means the rate of exchange quoted by the Royal Bank of Canada on the applicable date as its rate of exchange
for converting Canadian dollars into United States dollars. 
 “First Commercial Sale” means the first sale, or other
transfer, exchange, or disposition for value, of a Licensed Product in the Territory by Purdue, an Affiliate thereof, or a Sublicensee following the Effective Date, provided that, notwithstanding the foregoing, (i) except as set forth in clause
(ii) below, a sale in nominal amounts for purposes of ensuring the Licensed Product’s inclusion on a formulary shall not be considered a sale or other transfer, exchange, or disposition for value for purposes of this definition and,
notwithstanding the preceding clause (i), (ii) First Commercial Sale shall in any event be deemed to occur no later than upon CA$*** in gross sales of Licensed Products, including all such sales in nominal amounts described in clause (i) for
purposes of such calculation. 
 “Force Majeure” shall have the meaning set forth in Section 14.02. 

“Generic Product” means, with respect to a Licensed Product, a product sold by a Third Party in the Territory that
(a) contains buprenorphine as its sole API, (b) has been declared a bioequivalent of such Licensed Product pursuant to section C.08.004(4) of the Canadian Food and Drug Regulations or any successor legislation or regulation thereto,
as stated on the applicable Notice of Compliance, (c) is approved for use for one or more of the same clinical indications approved for such Licensed Product under an abbreviated new drug submission submitted pursuant to section C.08.002.1 of
the Canadian Food and Drug Regulations or any successor legislation or regulation thereto in which such Licensed Product is the reference listed drug, (d) is freely substitutable in the provinces of Ontario and Quebec by the pharmacist
for such Licensed Product when filling a prescription written for such Licensed Product without having to seek authorization to do so from the physician writing such prescription, and (e) is not sold pursuant to a sublicense granted under this
Agreement to such Third Party by Purdue, its Affiliates, or Sublicensees with respect to such Licensed Product (i.e., is not an “authorized generic”) or any rights related thereto. 

“Governmental Approval” means all permits, licenses and authorizations, including but not limited to, import permits and
Marketing Authorizations, required by any Competent Authority as a prerequisite to the manufacturing, marketing, or selling of a Licensed Product for human therapeutic use in the Territory. 

  
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 “Governmental Authority” means means any domestic or foreign government,
whether national, federal, state, provincial, territorial, local, municipal or other government, any governmental, regulatory or administrative authority, agency or commission, any self-regulatory organization, or any court, tribunal, commission,
judicial or arbitral body having adjudicative, regulatory, judicial, quasi-judicial, administrative or similar functions. 

“Improvements” means any and all developments, enhancements, inventions or discoveries directly relating to BEMA, the
Licensed Technology, any Licensed Product, or the manufacture or use of any of the foregoing that (i) is invented, conceived, developed or acquired by a Party, any Affiliate thereof, or any employees, agents, or other representatives of any of
the foregoing, solely or jointly with the other Party, any Affiliate thereof, any Third Party, or any employees, agents, or other representatives of any of the foregoing, or (ii) otherwise comes under the Control of a Party or an Affiliate
thereof, at any time during the Term, including any of the foregoing intended to enhance the safety and/or efficacy of a Licensed Product. 

“Initial BDSI TPMXCA” means, for each dosage strength of Licensed Product, the BDSI TPMXCA set forth on Exhibit A.

 “Initial Licensed Patents” means those Patents set forth on Exhibit C. 

“Initial NOC Fee Amount” shall have the meaning set forth in Section 2.01(d). 

“Joint Improvement” shall have the meaning set forth in Section 3.05. 

“Know-How” means all know-how, trade secrets,
inventions, data, processes, techniques, procedures, compositions, devices, methods, formulas, protocols and information, whether or not patentable, which are not generally publicly known, including, without limitation, all chemical, biochemical,
toxicological, and scientific research information, whether in written, graphic or video form or any other form or format. 

“Knowledge” of a Party means (a) actual knowledge of any executive or other senior officer of such Party or Affiliate
thereof or (b) any fact or matter known to an employee of such Party or an Affiliate thereof of which any such senior officer of such Party or Affiliate would reasonably be expected to discover or otherwise become aware of in the course of the
reasonable conduct of his or her duties. 
 “Licensed Improvement” means, to the extent Controlled by BDSI during the Term,
(i) any Improvement, including any Joint Improvement, directly concerning Licensed Products (or the manufacture or use thereof) that is invented, conceived, or developed in whole or in part by BDSI or any of its employees, agents, or other
representatives during the Term and (ii) any Product Improvement. 
 “Licensed
Know-How” means all Know-How that is (a) under the Control of BDSI or any of its Affiliates as of the Effective Date or comes under BDSI’s or any of
its Affiliates’ Control during the Term and (b) necessary or useful to manufacture or Commercialize Licensed Products in the Territory, including any such Know-How concerning Licensed Improvements,
provided that, notwithstanding anything to the contrary, Licensed Know-How shall not include any Know-How that is owned, licensed, or otherwise controlled at any time by
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Acquired Entity, except to the extent such Know-How was already included within the Licensed Know-How immediately
prior to the date of the transaction by which such Acquiring Entity or Acquired Entity, respectively, first became an Acquiring Entity or Acquired Entity, respectively. 

“Licensed Marks” means those logos, tradenames, trademarks, and associated registrations or applications therefor in
the Territory set forth on Exhibit B. 
 “Licensed Patents” means, with respect to the Territory, (a) the
Initial Licensed Patents; (b) any additions, divisionals, continuations, continuations-in-part, conversion, supplemental examinations, extensions, term
restorations, registrations, re-instatements, amendments, reissuances, corrections, substitutions, re-examinations, revalidations, supplementary protection certificates,
and renewals of the Initial Licensed Patents in the Territory; (c) all patents issuing in the Territory from any of the Patents mentioned in clause (a) or (b) above; and (d) all Patents Controlled by BDSI in the Territory Covering or
otherwise claiming any Licensed Improvement; provided that, notwithstanding anything to the contrary, Licensed Patents shall not include any patents or patent applications that are owned, licensed, or otherwise controlled at any time by any
Acquiring Entity or Acquired Entity, except to the extent that they were already included within the Licensed Patents immediately prior to the date of the transaction by which such Acquiring Entity or Acquired Entity, respectively, first became an
Acquiring Entity or Acquired Entity, respectively. 
 “Licensed Product” means the Current Product or any other BEMA-based
Product which contains buprenorphine as its sole API. 
 “Licensed Technology” means the Licensed Patents and the Licensed Know-How. 
 “Losses” shall have the meaning set forth in Section 10.01. 

“Marketing Authorization” means all necessary and appropriate regulatory approvals, including variations thereto, to put a
Licensed Product on the market for sale for human therapeutic use in the Territory. 
 “Marketing Authorization Transfer”
means grant of a NOC to Purdue with respect to Licensed Product to transfer the DINs from Paladin to Purdue. 
 “NDS” means
a new drug submission filed pursuant to Section C.08.002 of Canada’s Food and Drugs Regulations, all amendments and supplements thereto, and all additional documentation required to be filed with any Governmental Authority in the Territory for
approval to commence commercial sale of a Licensed Product for human therapeutic use in the Territory. 
 “Negotiation
Notice” shall have the meaning set forth in Section 11.09. 
 “Negotiation Period” shall have the
meaning set forth in Section 11.09. 
 “Net Sales” means ***. 

  
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 If any such sales to Third Parties are made in transactions that are not at arm’s length
between the buyer and the seller, then the gross amount to be included in the calculation of Net Sales shall be the amount that would have been invoiced had the transaction been conducted at arm’s length, as reasonably determined in good faith
by Purdue, its Affiliate, or Sublicensee, as applicable, subject to deductions set forth above, and such amount that would have been invoiced shall be determined, wherever possible, by reference to the average selling price of the relevant Licensed
Product in arm’s-length transactions in the Territory. The gross amount of sales to be included in the calculation of Net Sales shall also include the fair market value of any non-cash consideration received by Purdue, its Affiliates or Sublicensees for the sale or other transfers of Licensed Products or any right, title or interest in Licensed Products, subject to the deductions set
forth in clauses (i), (ii), (iii), and (iv) above. Fair market value will be calculated reasonably and in good faith by Purdue as of the time of transfer of such non-cash consideration to Purdue, its
Affiliates or Sublicensees. Net Sales shall be determined, and Books and Records maintained, in accordance with normally accepted accounting principles, such as GAAP, IFRS or similar accounting principles, on a basis consistent with the audited
consolidated financial statements of Purdue, its Affiliates, or its Sublicensees, as applicable. Licensed Products shall be considered sold when billed out or invoiced, or, if not billed out or invoiced, when payment for such Licensed Products is
received. 
 “NOC” shall have the meaning set forth in Section 2.01. 

“NOC Fees” shall have the meaning set forth in Section 2.01. 

“NOC Filer” shall have the meaning set forth in Section 2.01. 

“On Average” means *** 

“Paid Party” shall have the meaning set forth in Section 4.03(e). 

“Paladin” means Paladin Labs Inc. 

“Parent” shall have the meaning set forth in the introduction. 

“Patents” means all rights under patents and patent applications, and any and all patents issuing therefrom (including
utility, model and design patents, and certificates of invention), together with any and all substitutions, extensions (including supplemental protection certificates), registrations, confirmations, reissues, divisionals, continuations, continuations-in-part, re-examinations, renewals and domestic and foreign counterparts of the foregoing, and all improvements,
supplements, modifications or additions. 
 “Paying Party” shall have the meaning set forth in Section 4.03(e). 

“Pharmacovigilance Agreement” shall have the meaning set forth in Section 6.05. 

  
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 “Prime Rate of Interest” means the prime rate of interest per annum quoted
by the Royal Bank of Canada from time to time as its reference rate of interest for Canadian Dollar demand loans made to its commercial customers in Canada and which the Royal Bank of Canada refers to as its “prime rate”, as such rate may
be changed from time to time. 
 “Product Improvement” means any Improvement directly concerning BEMA, any Licensed
Product, or the use or manufacture of either of the foregoing that is invented, conceived, or developed by or on behalf of Purdue, any of its Affiliates, or any of its or their employees, agents, or other representatives, whether alone or jointly
with BDSI, any Affiliate thereof, or any Third Party or any of its or their employees, agents, or other representatives, as a result of the exercise of the rights granted to Purdue with respect to any Licensed Product hereunder or as a result of
their access to, or use or knowledge of, BDSI’s Confidential Information, BEMA, or Licensed Products. 
 “Product
Recall” means any recall or market withdrawal of a Licensed Product from or in the Territory. 
 “Product-Related
Contracts” shall have the meaning set forth in Section 13.06. 
 “Product-Related Materials” means all
advertising and promotional materials (including but not limited to flyers, brochures, pamphlets and electronic media), labeling and packaging materials, and any materials or items similar to the foregoing to the extent, in each case, pertaining
exclusively to the Licensed Products and in the possession or control of Purdue or any Affiliate thereof, and, to the extent Controlled by Purdue or an Affiliate thereof, all copyright and similar rights to the contents thereof, provided that the
foregoing rights shall not include any rights to any trademark, logos, or the like other than Purdue Marks. 
 “Purdue”
shall have the meaning set forth in the introduction. 
 “Purdue Competing Product” means ***. 

“Purdue Documentation” means all documentation, reports, case report forms, data, information and the like, including
all notes, summaries and analyses related thereto, in whatever form or media, in the possession or control of Purdue or any Affiliate thereof, which result from or otherwise describe (i) pre-clinical,
clinical, or other research and development activities directly related to any Licensed Product conducted by or for Purdue, its Affiliates, or any Sublicensees in the Territory, including but not limited to clinical studies or manufacturing- or
formulation-related activities, and/or any results thereof, (ii) information obtained by or on behalf of Purdue or Affiliate thereof directly concerning the use or administration of Licensed Products, including but not limited to AEs, ADRs,
ADEs, and/or SAEs, or (iii) or other Purdue Know-How contained or referenced in any Governmental Approvals or Regulatory Filings, excluding for greater certainty any Purdue information not related to the
Licensed Product or its Commercialization, use, or manufacture. 
 “Purdue Improvement” shall have the meaning set forth in
Section 3.05. 
 “Purdue Indemnitees” shall have the meaning set forth in Section 10.01. 

  
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 “Purdue Know-How” means any Know-How generated by or on behalf of Purdue or any Affiliate thereof during the Term, or that otherwise comes under the Control of Purdue or any Affiliate thereof following the Effective Date and during the Term,
that results from, or directly and solely relates to, the manufacture or Commercialization of, or exercise of any rights granted under this Agreement with respect to, any Licensed Product by or on behalf of Purdue, its Affiliates, or any
Sublicensees, as applicable, or Purdue’s, its Affiliates’, or Sublicensees’ access to, or use or knowledge of, BDSI’s Confidential Information or BEMA, as applicable, including any Know-How
coming under the Control of Purdue or its Affiliates relating to any Purdue Improvement. 
 “Purdue Marks” means any
trademarks, service marks, trade dress, or logos under Control of Purdue or any Affiliate thereof that are used by Purdue, any Affiliate thereof, or any Sublicensee specifically for any Licensed Product at any time in connection with the use,
development, promotion, marketing, distribution, offer for sale, or sale of any Licensed Product in the Territory, other than (a) the Licensed Marks and (b) any trademarks, trade names, service marks, trade dress, or logos that are
generally representative of Purdue, any Affiliate thereof, or any Sublicensee as a business or any products of any of the foregoing other than any Licensed Products. 

“Purdue Patents” means any Patents under the Control of Purdue or any Affiliate thereof during the Term that Cover any
Purdue Know-How or any Purdue Improvement. 
 “Quality Agreement” shall have
the meaning set forth in Section 6.05. 
 “Reasonable Cross Border Efforts” means ***. 

“Regulatory Filing” means an application for Marketing Authorization, investigational new drug application, clinical trial
applications, preclinical and clinical studies and tests related to the Licensed Product, any drug master files or the like in the Territory, and any other filings or submissions required by or provided to Competent Authorities relating to the
research, development, use, manufacture, or Commercialization of any Licensed Product, including any supporting documentation, correspondence, meeting minutes, amendments, supplements, registrations, governmental licenses or permits, regulatory drug
lists, advertising and promotion documents, adverse event files, complaint files, and manufacturing, shipping, or storage records with respect to any of the foregoing. 

“Requesting Party” shall have the meaning set forth in Section 14.11. 

“ROFN Notice” shall have the meaning set forth in Section 11.09. 

“ROFN Notice Period” shall have the meaning set forth in Section 11.09. 

“ROFN Product” means ***. 

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*** 
 “Royalty
Statement” shall have the meaning set forth in Section 4.03(a). 
 “Rules” shall have the meaning set forth
in Section 14.03(c). 
 “Sensitive Information” shall have the meaning set forth in Section 5.02. 

“Serious Adverse Event” or “SAE” means an Adverse Event that at any dose (a) results in death,
(b) is life-threatening, (c) requires inpatient hospitalization or prolongation of existing hospitalization, (d) results in persistent or significant disability/incapacity, or (e) results in a congenital anomaly/birth defect. The
term “life-threatening” in this definition refers to an event in which the patient was at risk of death at the time of the event; it does not refer to an event which hypothetically might have caused death if it had been more severe.
Important medical events that may not be immediately life-threatening or result in death or hospitalization but may jeopardize the patient or require intervention to prevent one of the other outcomes listed above should also be included in this
definition to the extent reasonable medical and scientific judgement indicates that expedited reporting is appropriate under Applicable Laws.  

“Serious Adverse Reaction” or “SAR” means an Adverse Reaction that at any dose (a) results in death,
(b) is life-threatening, (c) requires inpatient hospitalization or prolongation of existing hospitalization, (d) results in persistent or significant disability/incapacity, or (e) results in a congenital anomaly/birth defect. The
term “life-threatening” in this definition refers to an event in which the patient was at risk of death at the time of the event; it does not refer to an event which hypothetically might have caused death if it had been more severe.
Important medical events that may not immediately result in death or hospitalization but may jeopardize the patient or require intervention to prevent one of the other outcomes listed above should also be included in this definition to the extent
reasonable medical and scientific judgement indicates that expedited reporting is appropriate under Applicable Laws.  

“Sublicensee” means any Third Party, other than an Affiliate of Purdue, to whom any of the rights granted to Purdue under
this Agreement have been sublicensed as permitted hereby. 
 “Supply Agreement” means that certain Supply Agreement between
Parent and Purdue dated as of the Effective Date. 
 “Term” shall have the meaning set forth in Section 13.01. 

“Territory” means Canada. 

“Third Party” means any entity other than: (a) BDSI, (b) Purdue, or (c) an Affiliate of BDSI or Purdue. 

“Third Party Claim” shall have the meaning set forth in Section 7.04. 

  
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 “Third Party License” shall have the meaning set forth in
Section 11.10. 
 “Third Party Offer” shall have the meaning set forth in Section 11.10. 

“Valid Claim” means a claim of any pending Patent application or issued and unexpired Patent that has not been disclaimed,
revoked, held unenforceable, unpatentable or invalid by a decision of a court or other Governmental Authority of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and that has not been admitted to be invalid or
unenforceable through re-examination, re-issue, disclaimer or otherwise, or lost in an interference proceeding. 

Section 1.02 Interpretation. The Section headings contained in this Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Agreement. Except where the context clearly requires to the contrary: (a) each reference in this Agreement to a designated “Section” or “Exhibit” is to the corresponding Section
or Exhibit of or to this Agreement; (b) instances of gender or entity-specific usage (e.g., “his” “her” “its” “person” or “individual”) shall not be interpreted to preclude the application of
any provision of this Agreement to any individual or entity; (c) “including” shall mean “including, without limitation”; (d) references to Applicable Laws shall mean such Applicable Laws in effect during the Term (taking into
account any amendments thereto effective at such time without regard to whether such amendments were enacted or adopted after the Effective Date); (e) references to “CA$”, “$” or “dollars” shall mean the lawful currency
of Canada unless otherwise explicitly indicated, on a case-by-case basis to refer to the lawful currency of the United States; (f) references to “Federal”
or “federal” shall be to laws, agencies or other attributes of the United States (and not to any State or locality thereof); (g) the meaning of the terms “domestic” and “foreign” shall be determined by reference to the
United States; (h) references to “days” shall mean calendar days; (i) references to months or years shall be to the actual calendar months or years at issue (taking into account the actual number of days in any such month or
year); and (j) days, business days and times of day shall be determined by reference to Raleigh, North Carolina. 
 ARTICLE II

 INITIAL APPROVAL 

Section 2.01 Initial Marketing Authorization. 

(a) The Parties acknowledge that a notice of compliance (“NOC”) with respect to the Current Product NDS was
issued to Paladin (the “NOC Filer”) on June 21, 2017. 
 (b) BDSI shall use its best efforts to cause a
transfer of such Marketing Authorization in the Territory to Purdue as soon as reasonably possible following the Effective Date, including, within *** business days of the Effective Date, causing the NOC Filer to submit the Endo Health Canada Letter
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Purdue of any correspondence it receives with respect to the Current Product NDS within *** business days following its receipt by BDSI. BDSI acknowledges and agrees that, subject to
Section 2.01(d), BDSI shall be responsible for all costs and expenses it incurs in connection with its performance of its obligations under this Section 2.01. 

(c) Purdue shall use its best efforts to file, with the Competent Authority, an administrative new drug submission for the
Licensed Product (an “Administrative NDS”) to transfer from the NOC Filer to Purdue the DINs as soon as reasonably possible after the NOC Filer’s submission of the Endo Health Canada Letter to Health Canada, and in any case
within *** days after the labeling information required to complete the Administrative NDS is prepared and approved by Purdue and BDSI, such approval in either case not to be unreasonably withheld, and Purdue shall thereafter use its best efforts to
cause, as soon as reasonably possible, the grant of a NOC, and transfer and re-assignment of the DINs, to Purdue. BDSI shall use (i) its best efforts to cause the NOC Filer to take all reasonable actions
necessary to initiate the transfer of the DINs to Purdue, including causing the NOC Filer to provide a letter to the Competent Authority in the appropriate form authorizing the Competent Authority to transfer the DINs issued to the NOC Filer, with
such transfer to take effect as soon as reasonably possible thereafter and (ii) Commercially Reasonable Efforts to provide reasonable assistance to Purdue to file at the Competent Authority its Administrative NDS. 

(d) Purdue shall reimburse BDSI ***. 

(e) In the event any Governmental Authority in the Territory explicitly requires, as evidenced by written communication
therefrom, ***. 
 Section 2.02 Purdue Development. Except in accordance with Section 2.01(e), Purdue
shall use Commercially Reasonable Efforts to comply with and, upon Marketing Authorization Transfer, maintain all Governmental Approvals in the Territory. Except as may explicitly be provided in the Supply Agreement, BDSI will have the right to
review and comment, and have such comments reasonably considered by Purdue, reasonably in advance with regard to all development-, manufacturing- and formulation-related activities proposed to be conducted by or on behalf of Purdue or any Affiliate
thereof in regards to any Licensed Product in the Territory. In addition, except as explicitly permitted by the Supply Agreement, Purdue shall not, without BDSI’s consent, develop, Commercialize, undertake any dosage-, manufacturing-, or
formulation-related changes to the Current Product or any other Licensed Product. Notwithstanding the foregoing, it is hereby acknowledged by BDSI that no such development- or formulation-related activities, including clinical studies, are planned
or contemplated by Purdue as of the Effective Date. 
 Section 2.03 Regulatory Submissions. At all times, the Party
preparing, filing, and/or maintaining applications for Governmental Approval, or any supplements thereto, in the Territory shall (a) inform the other Party of all material communications with the relevant Competent Authority(ies) concerning the
Licensed Product and (b) provide copies of proposed material submissions to the relevant Competent Authority(ies) concerning the Licensed Product to the other Party prior to their submission to such Competent Authority. To the extent either

  
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Party receives material written or material oral communication from any Governmental Authority in the Territory with respect to any Licensed Product, the Party receiving such communication shall
promptly notify the other Party and provide a copy of any written communication as soon as reasonably practicable. Except as expressly set forth in Section 2.01(c), each Party will be responsible for its own costs and expenses incurred in
connection with its performance of the activities set forth in this Section 2.03. 
 Section 2.04 Reporting. Once
per Calendar Quarter and at such other times as may be reasonably requested by Purdue, BDSI shall provide Purdue with summary updates regarding the progress of its activities with respect to its obligations under this Article II, provided that
BDSI’s obligations under this sentence shall terminate upon Marketing Authorization Transfer. During the first four (4) complete Calendar Quarters following the Effective Date, Purdue shall: (a) provide to BDSI its reasonably detailed
commercial launch plan for the Licensed Products in the Territory (to be provided in or about ***) and (b) upon BDSI’s request, from time-to-time, BDSI shall
have reasonable opportunities to discuss any of the foregoing or its other Commercialization plans and efforts with Purdue, which opportunities shall include, but not be limited to, two teleconferences, each to occur in separate Calendar Quarters of
BDSI’s choosing, at such dates and times as the Parties shall reasonably agree in good faith. Without limiting the foregoing and in conformity with standard pharmaceutical industry practices and the terms and conditions of this Agreement,
Purdue shall maintain complete and accurate Books and Records of its and its Affiliates’ research, development, manufacture, and Commercialization of the Licensed Products for a minimum of *** years following the end of the Calendar Year to
which they pertain. 
 Section 2.05 Ownership of Regulatory Documentation. Subject to the terms of this
Agreement, including Sections 3.06 and 13.06, and without affecting ownership or title to any BDSI Know-How or BDSI Documentation contained or referenced therein, Purdue shall, following the Marketing
Authorization Transfer, own all Marketing Authorizations, Governmental Approvals and all other Regulatory Filings related thereto in the Territory with respect to Licensed Product, except those filings that may be made by or on behalf of BDSI, any
Affiliate thereof, or any Third Party in relation to the exercise of BDSI’s retained rights with respect to Licensed Products in the Territory or performance of BDSI’s obligations under this Agreement or the Supply Agreement. 

ARTICLE III 
 LICENSES;
IMPROVEMENTS 
 Section 3.01 License Fee. In partial consideration for the licenses granted under
Section 3.02(a), Purdue shall pay to BDSI an initial one-time non-refundable license fee of ***, by wire transfer of immediately available funds to an account to be
designated by BDSI. Purdue shall pay such license fee within *** days of the Effective Date. 

  
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 Section 3.02 Licensed Technology. The terms and conditions of the license
granted to Purdue shall be as follows: 
 (a) Subject to the terms and conditions of this Agreement, BDSI hereby grants to Purdue an
exclusive (subject to BDSI’s retained rights under this Section 3.02(a)), royalty-bearing, license under the Licensed Technology to manufacture or have manufactured (subject to the terms of the Supply Agreement), import, and Commercialize
the Licensed Product(s) in the Territory, which license shall be sublicensable as set forth in the second paragraph of this clause (a). Notwithstanding anything to the contrary (including but not limited to the exclusivity of the rights granted
above or below), BDSI retains, on behalf of it, its Affiliates, and its or their contractors, licensees, or sublicensees, sublicensable rights, transferable in accordance with Section 14.01, under the Licensed Technology and Licensed Marks to
(i) perform BDSI’s obligations under Article II and such other obligations as are necessary to reflect the NOC Filer’s status as the initial holder of the Current Product NDS, but only during the period from the Effective Date until
the Marketing Authorization Transfer, and (ii) research, develop, manufacture, have manufactured, use or import Licensed Products or Demonstration Samples in the Territory but solely for purposes related to the export, distribution, use,
development, or commercialization thereof outside the Territory. For clarity, BDSI’s or its Affiliates’ purchase of Licensed Products or Demonstration Samples in the Territory and its or their subsequent sale and export of such Licensed
Products or Demonstration Samples to BDSI’s Affiliates or Third Parties located outside of the Territory for purposes of enabling the sale and/or use of such products outside the Territory are included within the scope of BDSI’s retained
rights set forth in clause (ii) above. Once per Calendar Quarter and at such other times as may be reasonably requested by Purdue, BDSI shall provide Purdue with summary updates regarding its research, development or manufacturing activities
(whether directly or through a Third Party) in respect of the Licensed Products or Demonstration Samples in the Territory if BDSI undertakes any such activities as allowed under this Section 3.02(a). 

Purdue shall have the right to sublicense any rights granted to it under this clause (a) or Section 3.03(a) within the Territory,
provided that (i) Purdue shall provide BDSI with a copy of any executed sublicense agreement (subject to the last sentence of this Section 3.02(a)), (ii) Purdue shall not grant any Affiliate or Third Party any rights to Commercialize any
Licensed Products, nor utilize any Third Party, other than employees of Purdue, to Commercialize any Licensed Products unless, in any of the foregoing cases, consented to in writing by BDSI, such consent not to be unreasonably withheld, provided
that the foregoing shall not be construed to prohibit any assignment of this Agreement by Purdue pursuant to Section 14.01, (iii) Purdue shall secure all reasonably appropriate covenants, obligations and rights from each Sublicensee to ensure
that Purdue can comply with its obligations under this Agreement, (iv) Purdue shall be responsible and liable for each Sublicensee’s performance of Purdue’s obligations hereunder and compliance with the terms of this Agreement,
(v) all Sublicensees shall agree to be subject to the terms of this Agreement, and (vi) all sublicenses shall terminate upon the expiration or termination of this Agreement. The copy of any executed sublicense agreement provided by Purdue
to BDSI pursuant to this paragraph shall be redacted as determined by Purdue, in good faith, to be necessary to protect any of its or its Sublicensee’s confidential or proprietary information unrelated to Purdue’s compliance with its
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 (b) Purdue acknowledges that it shall have no right, title or interest in or to the Licensed
Technology, Licensed Products, or Licensed Marks except to the extent set forth in this Agreement, and BDSI reserves all rights to make, have made, use, sell, offer for sale, and import the Licensed Technology and Licensed Products except as
otherwise expressly granted to Purdue pursuant to this Agreement. Nothing in this Agreement shall be construed to grant Purdue any rights or license to any intellectual property of BDSI or any Affiliate thereof other than as expressly set forth
herein and nothing in this Agreement shall be construed to grant BDSI any rights or license to any intellectual property of Purdue or any Affiliate thereof other than as expressly set forth herein. 

(c) Purdue shall be fully responsible and liable for the acts and omissions of its Affiliates in the course of any such Affiliate exercising
any rights granted, or performing any obligations of Purdue, under this Agreement as if such acts or omissions had been those of Purdue, including but not limited to any breach of the provisions of this Agreement in connection therewith, and Purdue
shall ensure that (i) all Affiliates of Purdue granted rights, performing obligations hereunder, or exercising rights hereunder (“Purdue Affiliates”) shall comply with the terms of this Agreement and (ii) no
Affiliates other than Purdue Affiliates obtain access to, or know or use, BDSI’s Confidential Information, BEMA, or any Licensed Product. BDSI shall be fully responsible and liable for the acts and omissions of its Affiliates in the course of
any such Affiliate exercising any rights granted, or performing any obligations of BDSI, under this Agreement as if such acts or omissions had been those of BDSI, including but not limited to any breach of the provisions of this Agreement in
connection therewith, and BDSI shall ensure that all BDSI Affiliates granted rights, performing obligations hereunder, or exercising rights granted hereunder (“BDSI Affiliates”) shall comply with the terms of this Agreement. 

(d) BDSI shall, upon reasonable request of Purdue, use Commercially Reasonable Efforts to promptly provide Purdue with copies of any BDSI
Documentation, Licensed Know-How (to the extent material and in written form), or Licensed Patents, to the extent not prohibited by Applicable Law, not previously provided to Purdue, and Purdue has been
granted rights thereto pursuant to this Agreement, provided that the foregoing obligation shall only apply with respect to any manufacturing-related Licensed Know-How to the extent (i) necessary to enable
Purdue to satisfy any requirements under Applicable Law or (ii) requested upon a Supply Deficiency (as defined in the Supply Agreement) or Supply Failure (as defined in the Supply Agreement) and necessary to enable Purdue to manufacture or have
manufactured (by Third Parties) Licensed Products as permitted by Sections 4.10 or 4.11 of the Supply Agreement or following termination thereof. 

Section 3.03 Licensed Marks. 

(a) License. Subject to the terms and conditions of this Agreement and BDSI’s exercise of its retained rights under
Section 3.02 (with respect to which BDSI, its Affiliates, and Third Parties shall be entitled to use the Licensed Marks), BDSI hereby grants to Purdue an exclusive, paid-up,
sub-licensable (subject to the constraints on sublicensing described in Section 3.02 above), royalty-free license in the Territory to use the Licensed Marks during the Term solely in connection with the
manufacture and/or Commercialization of the Licensed Products in the Territory. Purdue acknowledges that it shall have no right, title or interest in or to the Licensed Marks except to the extent set forth in the license granted to Purdue under this
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granted herein. Notwithstanding anything to the contrary, Purdue shall be entitled to use any trademark other than the Licensed Marks, together with the Licensed Marks or otherwise, in connection
with the manufacture and/or Commercialization of the Licensed Products in the Territory. 
 (b) Use of Licensed Marks.
Purdue shall comply in all material respects with all Applicable Laws pertaining to the proper use and designation of the Licensed Marks. Additionally, Purdue shall: 

(i) ensure that the Licensed Marks are accompanied by words accurately describing the nature of the goods or services to which
it relates and that the Licensed Marks are displayed as set forth in Exhibit D; 
 (ii) to the extent reasonably
practicable after receipt of a written request from BDSI, comply with the reasonable requirements of BDSI as to the form, manner, scale and context of use of the Licensed Marks, the use of the statements to accompany them, as well as the appearance
of the Licensed Marks on containers, packaging and related marketing and promotional materials to be used for Licensed Product; 

(iii) display the proper form of trademark and service mark notice associated with each Licensed Mark in accordance with
instructions received from BDSI; 
 (iv) include, on any item which bears a Licensed Mark, a statement identifying BDSI as
the owner of such Licensed Mark and stating that Purdue is an authorized user of such Licensed Mark; 
 (v) not conduct,
without the written consent of BDSI, the whole or any part of its business under a business name or trading style which incorporates any of the Licensed Marks; 

(vi) neither use nor display any of the Licensed Marks in such relation to any other mark or marks owned by any Third Party,
Purdue, or an Affiliate of Purdue as to suggest that the multiple marks constitute a single or composite trademark, service mark, or are under the same proprietorship; and 

(vii) ensure the Licensed Marks are only used with Licensed Products that are used or Commercialized in compliance with
Applicable Laws and Governmental Approvals therefor. 
 (c) Additional Terms. Purdue shall not take any action
inconsistent with BDSI’s ownership of the Licensed Marks. Any benefits (including goodwill) accruing from Purdue’s use of the Licensed Marks shall automatically vest in BDSI. Purdue shall not form any combination trademarks or trade names
with the Licensed Marks. Purdue shall grant BDSI reasonable access to Purdue’s and its Affiliates’ facilities, labeling, packaging and promotional materials for the purpose of inspecting the use of the Licensed Marks pursuant to this
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 (d) Termination of License. BDSI shall be entitled to terminate the
rights to Licensed Marks granted above on written notice to Purdue if, after the date of First Commercial Sale, Purdue does not use the Licensed Marks with respect to the Licensed Product for any consecutive period of twelve (12) months or
more, unless the failure to use the Licensed Marks by Purdue is due to a failure or delay by BDSI in the performance of its obligations under this Agreement or the Supply Agreement, in which case the period described herein shall be extended by the
duration of such failure or delay by BDSI. 
 Section 3.04 Limitations Prior to Marketing Authorization Transfer.
Purdue shall ensure that neither Purdue, any Affiliate thereof, nor any Third Party acting on behalf of either of the foregoing shall engage in any activity with respect to Licensed Products prior to Marketing Authorization Transfer
except as permitted by this Agreement and except as may be performed in accordance with Applicable Law by a party that does not hold the Marketing Authorization for any Licensed Products in the Territory, provided that Purdue shall provide BDSI with
prior written notice describing in reasonable detail any proposed such activity and, unless (x) BDSI reasonably determines in good faith that such proposed activity has a material likelihood of adversely effecting (i) the status of the
Current Marketing Authorization or (ii) the Commercialization of Licensed Products in the Territory and (y) BDSI provides notice of such determination to Purdue within *** days of BDSI’s receipt of the above-referenced notice from
Purdue describing such proposed activity, Purdue shall be free to engage in such activity, subject to the terms of this Agreement. 

Section 3.05 Ownership of Improvements. Each Party will own all right, title and interest in and to any
Improvements conceived, developed, invented or otherwise generated solely by such Party, its Affiliates, or any officer, director, employee, agent, or other representative of either of the foregoing, other than Product Improvements, and all
intellectual property rights related thereto (such Improvements and intellectual property rights related thereto to be owned solely by Purdue or any Affiliate thereof pursuant to the foregoing, “Purdue Improvements”, and such
Improvements and intellectual property rights related thereto to be owned solely by BDSI or any Affiliate thereof pursuant to the foregoing, “BDSI Improvements”), and the Parties shall jointly own all right, title, and interest in
and to any Improvements conceived, developed, invented or otherwise generated jointly by (a) BDSI, any Affiliate thereof, or any officer, director, employee, agent, or other representative of either of the foregoing and (b) Purdue, any
Affiliate thereof, or any officer, director, employee, agent, or other representative of either of the foregoing, other than Product Improvements, and all intellectual property rights related thereto (such Improvements and intellectual property
rights to be owned jointly by the Parties pursuant to the foregoing, “Joint Improvements”), provided that, notwithstanding anything to the contrary, Parent shall own, and Purdue shall assign, and hereby assigns, to Parent all right,
title, and interest in and to any Product Improvements and all intellectual property rights related thereto, free and clear of all liens, claims, and encumbrances not set forth in this Agreement. Except as expressly provided in this Agreement and
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assign, mortgage or keep Joint Improvements, and otherwise undertake all activities a sole owner might undertake with respect to such inventions, discoveries and
know-how, without the consent of and without accounting to the other joint owner, provided that any assignment, license or other disposition or use (i) shall at all times be and remain subject to the
grants of rights and licenses and accompanying conditions and obligations with respect thereto under this Agreement, including under Sections 3.02(a), 3.06 and 13.06(a), and (ii) allow the Parties to exercise their rights and perform their
obligations under this Agreement, in particular to develop, manufacture, and commercialize Licensed Products in at least the same scope as prior to such assignment, license or other such disposition. Each Party shall take all actions and execute all
documents necessary to effect the purposes of the foregoing, as reasonably requested by, and at the sole expense (which shall be reasonable and documented) of, the other Party, and cause its respective Affiliates, and its and their officers,
directors, employees, agents, representatives, contractors, and other representatives to do the same. During the Term, each Party shall promptly notify the other Party in writing and in reasonable detail of any Improvements generated or Controlled
by such Party or any Affiliate thereof to which the other Party has any rights under this Agreement.  
 Section 3.06
Licenses to BDSI. Purdue hereby grants to BDSI an exclusive, royalty-free, fully-paid, freely sublicensable, worldwide, perpetual, irrevocable, exclusive license and right of reference, transferable with
this Agreement in accordance with Section 14.01, (X) under the Purdue Documentation (to the extent Controlled by Purdue or its Affiliates), Governmental Approvals, Regulatory Filings, and, to the extent contained or referenced in any of the
foregoing, Purdue Know-How, in each case solely to extent needed for BDSI, any Affiliate thereof, any licensee or sublicensee of either of the foregoing, or any contractor of any of the foregoing to comply
with any applicable law, rule, regulation, or guideline or order or request of any Governmental Authority with respect to any BEMA-based Products other than Licensed Products and (Y) under the Purdue Improvements (and any related Purdue Know-How and Purdue Patents), Purdue’s and its Affiliates’ rights in any Joint Improvements (and any related Purdue Know-How and Purdue Patents), Purdue
Documentation (to the extent Controlled by Purdue or its Affiliates), Governmental Approvals, Regulatory Filings, and, to the extent contained or referenced in any of the foregoing, Purdue Know-How to
(1) make, have made, use, import, research, and develop Licensed Products and Demonstration Samples anywhere in the world and (2) sell, offer for sale, and otherwise commercialize Licensed Products and Demonstration Samples outside the
Territory and, upon expiration or termination of this Agreement, inside the Territory, provided that the license granted under this clause (Y) with respect to Purdue Improvements directly and solely concerning buprenorphine shall only include
rights to such Purdue Improvements to the extent solely related to Licensed Products, BEMA, or any Licensed Technology. Purdue shall, upon reasonable request of BDSI, promptly provide BDSI with copies of any Purdue Documentation, Purdue Know-How, Purdue Patents, or other Patents Covering any Purdue Improvements or Joint Improvements to the extent not prohibited by Applicable Law, not previously provided to BDSI, and BDSI has been granted rights
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 ARTICLE IV 

ROYALTY AND MILESTONE PAYMENTS 

Section 4.01 Royalty Payments. 

(a) Base Royalty. Except as otherwise set forth in this Agreement, Purdue will make quarterly royalty payments to BDSI equaling *** of
Net Sales. 
 (b) ***. 
 (c)
Adjustment Upon Generic Competition. If, for any Calendar Quarter during the Term, total sales of Generic Product (in units) in the Territory equals or exceeds *** of total combined sales (in units) of Licensed Products and Generic Products
in the Territory, the royalty rate set out in Section 4.01(a), as it may be adjusted by Section 4.01(b), applicable to Net Sales during such Calendar Quarter shall be reduced by ***. 

(d) Minimum Royalties. Within *** days following the *** anniversary of the First Commercial Sale and each anniversary thereof
thereafter during the Term, Purdue shall pay BDSI an annual fee of CA$***, which amount shall be creditable against royalties due under Section 4.01(a), as adjusted pursuant to Sections 4.01(b) and 4.01(c), for the four (4) complete
Calendar Quarters following the Calendar Quarter during which such anniversary occurs, provided that, notwithstanding the foregoing, (i) Purdue shall not be obligated to make any payments under this Section 4.01(d) if, at the time any such
payment is due, a Generic Product has obtained Governmental Approval from the applicable Regulatory Authority in the Territory and been commercially sold by a Third Party in the Territory and (ii) ***. 

Section 4.02 Milestone Payments. Purdue shall pay to BDSI, as additional license fees, the following non-refundable, non-creditable milestone payments upon the occurrence of the specified milestone event: 

(a) CA$*** upon Marketing Authorization Transfer; 

(b) CA$*** upon First Commercial Sale of any Licensed Product; 

(c) an amount equal to the applicable Milestone Payment set forth on Exhibit E when Annual Net Sales first exceed
CA$***; and 
 (d) an amount equal to the applicable Milestone Payment set forth on Exhibit E upon the *** of First
Commercial Sale, provided that, if a Generic Product has been approved and commercially sold in the Territory by a Third Party prior to such anniversary, no amount shall be due under this clause (d). 

  
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 For the avoidance of doubt, each milestone payment referred to in this Section 4.02
shall be paid only once by Purdue, the first time the relevant milestone is achieved. Purdue shall provide BDSI written notice of the achievement of each milestone specified above, and Purdue shall pay BDSI the designated amount for such milestone,
within *** days of such achievement. 
 Section 4.03 Reports and Payments. 

(a) Purdue, on behalf of itself and its Affiliates, shall, beginning with the initial Calendar Quarter during which Net Sales first occur,
furnish to BDSI a quarterly written report (each, a “Royalty Statement”) showing in reasonably specific detail (i) Purdue’s, its Affiliates’, and Sublicensees’ inventory on hand of each stock keeping unit
(“SKU”) of Licensed Products, sales of Licensed Products per SKU and Net Sales per SKU; (ii) amounts payable under this Agreement based upon such Net Sales (which shall include a detailed accounting of all amounts and
calculations required to determine Net Sales and the amounts payable under this Agreement consistent with Sections 4.01 and 4.02); (iii) withholding taxes, if any, required by Applicable Law to be deducted with respect to any payments due BDSI under
this Agreement; and (v) the date of the first commercial sale of any Licensed Product in the Territory during the reporting period. Royalty Statements shall be due no later than *** days following the close of each Calendar Quarter. 

(b) All payments due BDSI under Section 4.01 with respect to a particular Calendar Quarter shall be due no later than *** days following
the end of each Calendar Quarter. All payments hereunder shall be made in United States dollars. Currency conversion for determining amounts payable in United States dollars shall be made at the Exchange Rate applicable on (i) the last business
day of the applicable Calendar Quarter (for payments due under Section 4.01 or otherwise made on a Calendar Quarterly basis), (ii) the business day on which the applicable payment is triggered (or, if not triggered on a business day, the
nearest business day preceding such date) (for payments due under Section 4.02 or any other payments triggered on a specific date), or (iii) for any other payments not covered by the preceding clause (i) or (ii), the last business day
of the calendar month preceding the calendar month in which such payment is made. All payments owed under this Agreement shall be made by wire transfer to one or more bank accounts (which may each be the account of such Party, any Affiliate thereof,
or any Third Party), in such allocation between such accounts, as shall be designated by the Party owed payment from time-to-time upon written notice, unless otherwise
specified in writing by such Party, with any such designated account(s) and/or allocation(s) to remain effective with respect to payments owed to such Party until it provides written notice to the other Party setting forth any changes to such
account(s) or allocation(s) for payment (in which case any changes specified in such notice shall become effective on the date specified therein). 

(c) In the event that any payment due hereunder is not made when due, such payment shall accrue interest from the date due at a rate equal to
the greater of (i) the Prime Rate of Interest plus *** or (ii) *** per month, or, if less, the maximum interest rate legally permissible in the Territory, calculated based on the number of days such payments are paid after the date such
payments are due. The payment of such interest shall not limit a Party from exercising any other rights it may have under this Agreement as a consequence of the lateness of any payment. 

  
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 (d) During the Term and for a period of *** thereafter, or longer if and as required in order
for Purdue to comply with Applicable Law, Purdue shall keep complete and accurate records in sufficient detail to permit BDSI to confirm the completeness and accuracy of (i) the information presented in each Royalty Statement and all payments
due hereunder and (ii) the calculation of Net Sales. BDSI and any designee thereof shall have the right to audit and inspect such Books and Records pursuant to the terms of Section 14.11 solely to confirm completeness and accuracy of the
information in the Royalty Statements and amounts of payments due under this Article IV. 
 (e) All taxes levied on account of the payments
accruing to a Party under this Agreement shall be paid by such Party for its own account, including taxes levied thereon as income to such Party. If provision is made in Applicable Law for withholding, such tax shall be deducted from the payment
made by a Party (the “Paying Party”) to the other Party (the “Paid Party”) hereunder, shall be paid to the proper taxing authority by the Paying Party, and a receipt of payment of such tax shall be secured and
promptly delivered to the Paid Party. Each Party agrees to reasonably assist the other Party, as reasonably requested thereby and at the Paid Party’s expense, in claiming exemption from such deductions or withholdings under any double taxation
or similar agreement or treaty from time to time in force or in otherwise seeking the return, refund, or credit of any such withheld amount as applicable. 

ARTICLE V 

COMMERCIALIZATION 

Section 5.01 Commercialization Obligations. 

(a) Purdue shall use Commercially Reasonable Efforts to cause the First Commercial Sale of Licensed Product to occur as soon as reasonably
practicable following Marketing Authorization Transfer, subject to, without limitation, BDSI’s ability to supply Licensed Product in a timely manner therefor under the Supply Agreement, and Purdue shall use Commercially Reasonable Efforts to
Commercialize Licensed Products in the Territory, *** and (ii) a Commercially Reasonable initial commercial and promotional launch of the Licensed Product and post-launch marketing and promotion thereof. As between the Parties, Purdue, at its
own expense, will be responsible for all of its Commercialization activities in the Territory. Except as otherwise explicitly provided in this Agreement, and without limitation of Purdue’s obligations above under this Section 5.01(a),
Purdue shall determine, in its sole discretion, all aspects of the Commercialization activities and be responsible for market access for Licensed Products in the Territory. 

(b) Purdue shall determine pricing for Licensed Products in the Territory in its sole discretion. Purdue will not, and will ensure that its
Affiliates and Sublicensees do not, ‘bundle’ any Licensed Product(s) with other products or services sold for separately stated prices, offer a discount on any Licensed Product as an enticement or in exchange for purchasing other products
or services, or otherwise engage in any ‘loss leader’ or similar behavior with respect to any Licensed Product without BDSI’s prior written consent. Purdue will determine all reimbursement and launch activities related to the Product
in the Territory. Purdue will apply for formulary listings of the Product with both public and private payors, as determined by Purdue. 

  
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 (c) In the event Purdue sublicenses any of its rights in accordance with this Agreement, the
activities of Sublicensees may apply to the satisfaction of Purdue’s obligations under this Article V, provided, that, subject to the foregoing, Purdue’s obligations under this Agreement shall not be reduced or otherwise affected by any
sublicensing by Purdue of its rights under this Agreement. 
 (d) Upon the request of BDSI, but in no event more than once per Calendar
Year, concurrent with Purdue’s brand planning schedule for its own products, Purdue shall provide to BDSI in writing its proposed annual marketing, sales and distribution plan for the Licensed Products, including a high-level summary of
Purdue’s, its Affiliates’, and, to the extent available to, or in the possession of, Purdue and disclosable to BDSI without breach of any relevant agreement with the applicable Sublicensee, Sublicensees’ proposed marketing, sales and
distribution strategy and tactics for the sale and distribution of the Licensed Products in the Territory during the following Calendar Year; Purdue shall use Commercially Reasonable Efforts to obtain such information from its Sublicensees on terms
permitting the disclosure thereof to BDSI hereunder. 
 Section 5.02 Information Sharing. BDSI will, promptly following
the Effective Date, provide to Purdue all previous and current market research, training, marketing, sales and medical information materials for the Licensed Product in the Territory and in the U.S. available to and controlled by BDSI, except to the
extent constituting Sensitive Information. Notwithstanding anything to the contrary, the Parties shall not in any event be required under this Agreement to disclose any information or materials to other Party (i) subject to confidentiality
obligations to Third Parties or (ii) related to marketing plans, market research, pricing strategies, or similarly sensitive or strategic information related to any product other than the Licensed Product or any market other than the Territory
(the “Sensitive Information”). If BDSI is prohibited from disclosing certain information pertaining to the Licensed Product and otherwise required to be disclosed to Purdue under this Agreement due to confidentiality obligations to
any Third Parties, BDSI shall use Commercially Reasonable Efforts to seek the consent of such Third Parties to disclose any such information specifically requested by Purdue other than the Sensitive Information and, promptly following such consent,
provide such information to the extent permitted thereby. 
 ARTICLE VI 

REGULATORY COMPLIANCE 

Section 6.01 Marketing Authorization Holder. Subject to Purdue’s obligations upon expiration or termination of this
Agreement pursuant to Section 13.06, Purdue shall, upon Marketing Authorization Transfer, be the holder and owner of all Marketing Authorizations and Governmental Approvals in the Territory concerning Licensed Products and responsible for all
associated legal obligations with respect thereto. 

  
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 Section 6.02 Maintenance of Marketing Authorizations. Subject to its right
to terminate this Agreement as provided herein, with respect to the Licensed Products, upon Marketing Authorization Transfer, Purdue agrees, at its sole cost and expense, to comply with and maintain all Marketing Authorizations and Governmental
Approvals in the Territory throughout the Term, including submitting any supplemental applications, annual reports, variations or renewals thereof that are required by Applicable Law to be obtained in order to maintain the Marketing Authorizations
and Governmental Approvals. 
 Section 6.03 Interaction with Competent Authorities. This Section 6.03 shall only be
effective until such time as, and shall cease to apply once, the Pharmacovigilance Agreement is executed by the Parties. Each Party shall provide to the other Party a copy of any material correspondence or materials that it receives from a Competent
Authority in the Territory regarding any Licensed Product. Such correspondence or summary shall be provided within *** business days of receipt thereof by the relevant Party. Prior to Marketing Authorization Transfer, Purdue shall be
provided reasonable advance written notice of all material meetings, conferences, or calls with Competent Authorities in the Territory concerning any Licensed Product. Following Marketing Authorization Transfer, BDSI shall be provided reasonable
advance written notice of all material meetings, conferences, or calls with Competent Authorities in the Territory concerning any Licensed Product and BDSI shall be permitted to have one regulatory representative attend all such meetings,
conferences, or calls that could reasonably be anticipated to materially concern issues that are related or relevant to BEMA generally or any BEMA-based Products other than Licensed Products. With respect to any Licensed Product, Purdue shall
provide BDSI with copies of any materials relating to any material regulatory matter in the Territory and, when reasonably practicable, shall provide copies of any documents to be presented to any Competent Authority in respect of such matters prior
to their presentation thereto, so that BDSI, if practicable, shall have an opportunity to review in advance. The materials provided to BDSI under this Article VI with respect to material interactions with any Competent Authority will be considered
Purdue’s Confidential Information. 
 Section 6.04 Post-Marketing Surveillance Costs. Purdue shall notify BDSI in
writing if, at any time prior to the *** anniversary of the First Commercial Sale, it believes, in its reasonable, good faith judgment, that the total documented, direct costs to be incurred by Purdue during *** with respect to the conduct of any
post-marketing surveillance activities required by Applicable Law or the terms of any Governmental Approvals and/or Marketing Authorizations with respect to the Licensed Product in the Territory will exceed ***. Purdue and BDSI shall, within *** of
providing such notification to BDSI, engage in good faith discussions in respect of such required post-marketing surveillance activities and any potential amendments hereto with respect thereto to which the Parties may agree. If the Parties are
unable to reach written agreement on how to handle such requirement and/or any potential amendments hereto with respect thereto within *** days of the end of such *** period, either Party shall be entitled to terminate this Agreement upon written
notice to the other Party. 
 Section 6.05 Pharmacovigilance Agreement. The Parties shall use Commercially Reasonable
Efforts in good faith to negotiate and execute a customary and standard forms of pharmacovigilance agreement (the “Pharmacovigilance Agreement”) and quality agreement (with respect to the Supply Agreement) (the “Quality
Agreement”) as soon as reasonably possible following the Effective Date. 

  
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 Section 6.06 Compliance. Purdue and BDSI shall comply with all Applicable
Laws in exercising their rights and performing their obligations under this Agreement, including the provision of information by Purdue and BDSI, to the extent in its possession, to each other necessary for BDSI and Purdue to comply with any
mandatory reporting requirements. Each Party shall promptly notify the other Party of any comments, responses or notices received from, or inspections by, any applicable Competent Authorities, which relate to or may impact any Licensed Product or
the manufacture of any Licensed Product or the sales and marketing of any Licensed Product, and shall promptly inform the other Party of any responses to such comments, responses, notices or inspections and the resolution of any issue raised by any
Competent Authorities with respect to any Licensed Product. 
 ARTICLE VII 

PATENTS AND TRADEMARKS 

Section 7.01 Maintenance of Licensed Patents and Licensed Marks. BDSI shall control and, except as explicitly set forth in
this Article VII, have full discretion in the preparation, filing, prosecution, maintenance, and defense of the Licensed Patents and Licensed Marks in the Territory, including any ex parte reexamination proceedings, inter partes review
proceeding, post grant review proceeding, derivation proceeding, action for declaratory judgment, interference proceeding or other attack upon the validity, title or enforceability of any Licensed Patents in the Territory. Upon written request by
BDSI, Purdue shall provide such assistance as may be necessary to enable BDSI to prosecute and obtain new patents related to any Licensed Improvements or Product Improvements Controlled by BDSI, with the cost and expense of such assistance, other
than with respect to Joint Improvements, to be borne by BDSI. BDSI shall keep Purdue advised by forwarding to Purdue copies of all official correspondence (including, but not limited to, applications, office actions, responses, etc.) relating to the
prosecution and maintenance of the Licensed Patents, and shall provide Purdue an opportunity to comment on any proposed responses, voluntary amendments, submissions, or other actions of any kind to be made with respect to Licensed Patents. In the
event that BDSI desires to abandon any Licensed Patents and/or Licensed Marks in the Territory, BDSI shall provide reasonable prior written notice to Purdue of its intention to abandon and a reasonable opportunity to discuss BDSI’s rationale
supporting such abandonment. In the event that BDSI decides to abandon any Licensed Patent in the Territory that contains Valid Claims that are specific to buprenorphine and Cover any Licensed Product, but does not contain any Valid Claims that
Cover any BEMA-based products incorporating any API other than buprenorphine (such a Licensed Patent, a “Buprenorphine-Specific Patent”), (a) BDSI shall provide prompt written notice of such decision to Purdue and (b) Purdue
may elect by written notice to BDSI, given within *** business days of the aforementioned notice from BDSI, continue the maintenance, defense or prosecution of such Buprenorphine-Specific Patent at Purdue’s expense, and Purdue shall be entitled
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maintenance, defense or prosecution of such Buprenorphine-Specific Patent. If BDSI does provide a subsequent notice to Purdue electing to retain control of such maintenance, defense or
prosecution of a particular Licensed Patent, BDSI shall retain such control until such time as it later again elects to abandon such Buprenorphine-Specific Patent, in which case the rights and obligations of the Parties with respect thereto
hereunder shall again apply. In the event Purdue does actually assume maintenance, defense, and prosecution of a Buprenorphine-Specific Patent pursuant to the foregoing, the ownership of such Buprenorphine-Specific Patent shall be retained by BDSI.

 Section 7.02 Filing, Prosecution, and Maintenance of Patents Covering Purdue Improvements. Purdue shall control and,
except as explicitly set forth in this Section 7.02, have full discretion in the preparation, filing, prosecution, maintenance, and defense of any Patents owned or controlled by Purdue or any Affiliate thereof Covering any Purdue Improvement,
including any ex parte reexamination proceedings, inter partes review proceeding, post grant review proceeding, derivation proceeding, action for declaratory judgment, interference proceeding or other attack upon the validity, title or
enforceability of any such Patents in the Territory. Purdue shall keep BDSI advised with respect to the foregoing by forwarding to BDSI copies of all official correspondence (including, but not limited to, applications, office actions, responses,
etc.) relating to the prosecution and maintenance of such Patents, and shall provide BDSI a reasonable advance opportunity (to be no less than *** business days) to review and comment on any proposed patent applications, responses, voluntary
amendments, submissions, or other actions of any kind to be made with respect to any such Patents, and Purdue shall reasonably take into consideration any reasonable comments made by BDSI with respect thereto. In the event that Purdue desires to
abandon any such Patents Covering any Purdue Improvement, Purdue shall provide reasonable prior written notice to BDSI of Purdue’s intention to abandon and a reasonable opportunity to discuss Purdue’s rationale supporting such abandonment.

 Section 7.03 Prosecution of Infringement. During the Term, each Party shall give prompt written notice to the other
Party of any Third Party act in the Territory that (a) concerns any product(s) that contain buprenorphine as the sole API and (b) may infringe the Licensed Patents and/or the Licensed Marks in the Territory. BDSI shall, as between the
Parties, have the sole and exclusive right with respect to Licensed Marks and Licensed Patents, but not, in either case, the obligation, to bring and control any action or proceeding (i) concerning any potential or actual infringement of the
Licensed Patents or Licensed Marks or (ii) concerning any potential or actual misappropriation of any Licensed Know-How. If BDSI is unable to initiate or to prosecute such action solely in its own name or
it is otherwise Commercially Reasonable and reasonably advisable to obtain an effective or interim remedy, Purdue shall, if and as requested by BDSI and at BDSI’s sole expense (which shall be reasonable and documented), join such action and
take such other reasonable steps requested by BDSI as are necessary for BDSI to initiate litigation to prosecute and maintain such action, provided, that, under no circumstances will Purdue be obligated to, amend or alter any of the terms of this
Agreement in a manner adverse to Purdue’s interests in order to enable BDSI to initiate litigation to prosecute and maintain such action. Purdue shall provide, at BDSI’s sole expense (which shall be reasonable and documented), such other
assistance and cooperation to BDSI as may be necessary to prosecute any action against such Third Party. Any damages, monetary awards, or other 

  
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amounts recovered or received in settlement by BDSI shall be applied proportionately first to defray the unreimbursed reasonable, documented costs and expenses (including reasonable
attorneys’ fees) incurred by Purdue and BDSI in the action, with the remaining balance thereof (A) to be retained by BDSI if and to the extent that the amounts recovered or received by BDSI pertain to Licensed Patents other than any
Buprenorphine-Specific Patents or that pertain to Buprenorphine-Specific Patents but are recovered or received with respect to the manufacture, use, sale, or import of a product other than a Licensed Product or (B) to be split *** to Purdue and
*** to BDSI if and to the extent that the amounts recovered or received by BDSI directly pertain to any Buprenorphine-Specific Patents and the manufacture, use, sale, or import of a Licensed Product. 

Section 7.04 Infringement Claimed by Third Parties. In the event a Third Party commences a judicial or administrative
proceeding against a Party and such proceeding, other than a proceeding to which Section 7.01 applies, pertains to the manufacture, use, sale, marketing, or import of a Licensed Product in the Territory by or on behalf of Purdue, an Affiliate
thereof, or a Sublicensee (the “Third Party Claim”), or threatens to commence such a Third Party Claim, the Party against whom such proceeding is threatened or commenced shall give prompt notice to the other Party and the Parties
shall reasonably consult with each other with respect to possible strategies for addressing the alleged infringement. 
 Section 7.05
Payment of Costs and Expenses. Upon its receipt of a reasonably detailed invoice setting forth a Party’s reasonable, documented costs and expenses incurred pursuant to any provision of this Article VII relating to the Territory,
for which the other Party shall be liable in accordance with this Article VII, such other Party shall pay such costs and expenses within *** of receipt of an invoice therefor. 

ARTICLE VIII 

CONFIDENTIALITY 

Section 8.01 Confidentiality. The Parties agree that, for the Term and for *** thereafter, each Party will keep completely
confidential and will not publish, submit for publication or otherwise disclose, and will not use for any purpose except for the purposes contemplated by this Agreement or the Supply Agreement (including but not limited to the exercise or
enforcement of rights or performance of obligations under this Agreement or the Supply Agreement), any Confidential Information of the other Party. 

Section 8.02 Authorized Disclosure. Each Party may disclose Confidential Information of the other Party to the extent that
such disclosure is: 
 (a) made in response to a valid order of a court of competent jurisdiction; provided, however, that in each case such
disclosing Party will, to the extent reasonably practicable, (i) first have given written notice to the other Party and given such other Party a reasonable opportunity to take appropriate action and (ii) cooperate with such other Party as
necessary to obtain an appropriate protective order or other protective remedy or treatment; provided, further, that in each case, the Confidential Information disclosed in response to such 

  
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court or governmental order will be limited to that information which is legally required to be disclosed in response to such court or governmental order, as determined in good faith by the Party
that is obligated to disclose Confidential Information pursuant to such order; 
 (b) otherwise required to be disclosed by any applicable
law, rule, or regulation (including, without limitation, the U.S. federal securities laws and the rules and regulations promulgated thereunder) or the requirements of any stock exchange to which a Party or any Affiliate thereof is subject; provided,
however, that the Party that is so required will provide such other Party with written notice of such disclosure reasonably in advance thereof to the extent reasonably practicable and reasonable measures will be taken to assure confidential
treatment of such information, including such measures as may be reasonably requested by the disclosing Party with respect to such Confidential Information; 

(c) made by such Party, in connection with the performance of this Agreement or the Supply Agreement, to such Party’s Affiliates,
licensees, sublicensees, contractors, directors, officers, employees, consultants, representatives or agents, or to other Third Parties, in each case on a need to know basis and solely to use such information for business purposes relevant to and
permitted or required by this Agreement or the Supply Agreement, and provided that (i) each such party to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations substantially as protective as those set forth in this Agreement and (ii) the Party making such disclosure shall be liable for such Third Parties’ compliance with such
obligations; or 
 (d) made by such Party to: 

(i) actual or potential acquirers, licensees, licensors, investment bankers, investors, merger targets, lenders, or financial
institutions, specifically excluding, however, (a) non-governmental health care providers and (b) health care payors, except, in the case of (a) and (b), as required by applicable law, rule, or
regulation or order or request of any Governmental Authorities; or 
 (ii) any Third Party to the extent such Party or an
Affiliate thereof is contractually required, as of the Effective Date, to disclose any Confidential Information of the other Party to such Third Party in order to satisfy its obligations under an agreement with such Third Party as it relates to the
satisfaction of such Party’s obligations hereunder or under the Supply Agreement; 
 and provided in each case under this clause
(d) that (I) each individual and entity to whom such Confidential Information is disclosed is bound in writing to non-use and non-disclosure obligations
substantially as protective as those set forth in this Agreement and (II) the Party making such disclosure shall be liable for such Third Parties’ compliance with such obligations. 

Any Party making a disclosure permitted under clause (d)(i) of this Section 8.02 shall promptly notify the other Party of such
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rule, or regulation or the terms of any contractual obligation of confidentiality between such Party and any Third Party, in which case the Party making such disclosure shall instead use
Commercially Reasonable Efforts to minimize the amount of the other Party’s Confidential Information to be disclosed, or delay the disclosure of the other Party’s Confidential Information, to the extent reasonably possible without, as
determined in good faith by the Party making such disclosure, adversely affecting the negotiations, transaction (or terms thereof), or existing relationship in connection with which such disclosure is being made. 

Section 8.03 Disclosure of Agreement. Neither Party shall release to any Third Party or publish in any way any non-public information with respect to the terms of this Agreement or the terms of the Supply Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld;
provided, in each case with respect to such releases or disclosures requiring such consent pursuant to this Section 8.03, that (i) each individual and entity to whom such information is disclosed is bound in writing to non-use and non-disclosure obligations substantially as protective as those set forth in this Agreement and (ii) the Party making such disclosure shall be liable for such
Third Parties’ compliance with such obligations. Notwithstanding the foregoing, a Party may disclose the terms of this Agreement or the Supply Agreement to: 

(x) actual or potential acquirers, licensees, licensors, investment bankers, investors, merger targets, lenders, or financial
institutions, specifically excluding, however, (a) non-governmental health care providers and (b) health care payors, except, in the case of (a) and (b), as required by applicable law, rule, or
regulation or order or request of any Governmental Authorities; or 
 (y) any Third Party to the extent a Party or an
Affiliate thereof is contractually required, as of the Effective Date, to disclose any non-public portion of this Agreement, the Supply Agreement, or any terms hereof or thereof to such Third Party in order to
satisfy its obligations under an agreement with such Third Party as it relates to the satisfaction of such Party’s obligations hereunder or under the Supply Agreement; 

and provided in each case under this sentence that (I) each individual and entity to whom such Confidential Information is disclosed is
bound in writing to non-use and non-disclosure obligations substantially as protective as those set forth in this Agreement, (II) the Party making such disclosure
shall be liable for such Third Parties’ compliance with such obligations, and (III) any Party making a disclosure permitted under clause (x) of this sentence shall promptly notify the other Party of such disclosure, including the name
of the person or entity to which the disclosure was made, unless such notice is prohibited or limited by applicable law, rule, or regulation or the terms of any contractual obligation of confidentiality between such Party and any Third Party, in
which case the Party making such disclosure shall instead use Commercially Reasonable Efforts to minimize the nonpublic portion of this Agreement, the Supply Agreement, or terms hereof or thereof to be disclosed, or delay the disclosure of the
nonpublic portion of this Agreement, the Supply Agreement, or terms hereof or thereof, to the extent reasonably possible without, as determined in good faith by the Party making such disclosure, adversely affecting the negotiations, transaction (or
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 Nothing in this Section 8.03 shall prohibit either Party from filing this Agreement or the Supply
Agreement as required by any applicable, laws, rules, or regulations, including those of the Securities and Exchange Commission, national securities exchanges (including those located in countries outside of the United States) or the Nasdaq Stock
Market; provided the disclosing Party (1) discloses only such information required to be disclosed in order to comply with such requirements, as reasonably determined by such Party, including, to the extent reasonably available or applicable
requesting confidential treatment of this Agreement or the Supply Agreement (after providing a reasonable opportunity for consultation by the other Party) and filing this Agreement or the Supply Agreement in redacted form and (2) to the extent
reasonably practicable, reasonably in advance of such disclosure informs the other Party of the contents of the proposed disclosure. The Parties agree to cooperate with respect to requests for confidential treatment to be submitted to the Securities
and Exchange Commission or any similar foreign authority with respect to certain portions of this Agreement or Supply Agreement and any redactions thereof for such purposes. 

ARTICLE IX 

REPRESENTATIONS AND WARRANTIES 

Section 9.01 Corporate Power. As of the Effective Date, each Party hereby represents and warrants that such Party is duly
organized and validly existing under the laws of the jurisdiction of its organization and has full power and authority to enter into this Agreement and the transactions contemplated hereby and to carry out the provisions hereof. 

Section 9.02 Due Authorization. As of the Effective Date, each Party hereby represents and warrants that such Party is duly
authorized to execute and deliver this Agreement and to perform its obligations hereunder. 
 Section 9.03 Binding
Obligation. As of the Effective Date, each Party hereby represents and warrants that this Agreement is a legal and valid obligation binding upon it and is enforceable in accordance with its terms, except that the enforcement of the rights
and remedies created hereby is subject to bankruptcy, insolvency, reorganization and similar laws of general application affecting the rights and remedies of creditors and that the availability of the remedy of specific performance or of injunctive
relief is subject to the discretion of the court before which any proceeding therefor may be brought. As of the Effective Date, each Party represents and warrants that the execution, delivery and performance of this Agreement by such Party does not
conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over
it. 
 Section 9.04 Legal Proceedings. As of the Effective Date, each Party hereby represents and warrants to the other
Party that there is no action, suit or proceeding pending against or affecting, or, to the Knowledge of such Party, threatened against or affecting that Party, or any of its assets, before any Governmental Authority in the Territory that would, if
decided against such Party, have a material adverse impact on the Commercialization of the Licensed Product in the Territory or that Party’s ability to consummate the transactions and perform the obligations contemplated by this Agreement. 

  
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 Section 9.05 No Guarantee of Success. Purdue and BDSI acknowledge and
agree that nothing in this Agreement will be construed as representing any estimate or projection of (i) the successful Commercialization of any Licensed Product under this Agreement, (ii) the number of Licensed Products that will or may
be successfully Commercialized under this Agreement, or (iii) anticipated sales or the actual value of any Licensed Products that may be successfully Commercialized under this Agreement. Neither Party makes any warranties, express or implied,
or covenants concerning the success of the Commercialization of any Licensed Products. 
 Section 9.06 Sufficient Rights.
BDSI represents and warrants that (a) it has and shall maintain during the Term of this Agreement (i) an exclusive license to or ownership of, as applicable, the Licensed Technology, the Licensed Marks and any other intellectual property
rights which are the subject of Purdue’s licenses under this Agreement and (ii) the right to grant the licenses described in this Agreement and fulfill its obligations herein, and (b) the grant of such licenses by BDSI will not
conflict with or violate any of the terms of any agreement of BDSI concerning the Licensed Technology or the Licensed Marks. 

Section 9.07 No Infringement. BDSI represents and warrants that, to BDSI’s Knowledge as of the Effective Date, no
valid claim of any issued patent owned by a Third Party will be infringed by the Commercialization of the Current Product in the Territory. 

Section 9.08 Intellectual Property. BDSI represents and warrants that there are no other intellectual property
rights owned or Controlled by BDSI or any of its Affiliates as of the Effective Date, other than the rights in the Licensed Technology, which cover the Current Product or would otherwise prevent Purdue from Commercializing the Current Product in the
Territory as set forth herein. 
 Section 9.09 Disqualification. Each Party represents and warrants to
the other that it has never been and is not currently under prosecution by Health Canada for behavior that would contravene Applicable Law, and each Party agrees that it will not obtain advice or assistance from any individual prosecuted by Health
Canada or another health Regulatory Authority, under Applicable Law, or disciplined for contravention of their professional code of ethics. Each Party represents and warrants to the other that it has no Knowledge of any circumstances that may
affect the accuracy of the foregoing warranties and representations, including, but not limited to, investigations of, or proceedings against, it or any person or entity with which it is associated or that provides services to such Party, and such
Party will immediately notify the other in writing if it becomes aware of any such circumstances during the term of this Agreement. 

Section 9.10 Arius. Parent represents and warrants that, as of the Effective Date, (i) it is the sole shareholder of
Arius Two, Inc. (“Arius Two”) and Arius, (ii) Arius Two owns title to those Licensed Patents relating to the Licensed Products for which Arius Two is identified as the assignee thereof on Exhibit C, and
(ii) Arius is the exclusive licensee of Arius Two with respect to such Licensed Patents.  

  
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 Section 9.11 Compliance with Laws. Each Party represents and warrants to
the other that it or its Affiliates have all permits, licenses and authorizations required by any Governmental Authority to be obtained by such Party in connection with this Agreement, or the grant of any intellectual property rights granted
hereunder, except for the matters contemplated by Section 2.01, to which this Section 9.11 does not apply. 
 Section 9.12
Disclaimer. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT (INCLUDING THOSE SET FORTH ABOVE IN THIS ARTICLE IX) AND THE SUPPLY AGREEMENT, AND WITHOUT LIMITATION OF THE CONTRACTUAL RIGHTS AND
OBLIGATIONS OF THE PARTIES IN THE QUALITY AGREEMENT, THE PARTIES MAKE NO REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, AND THE PARTIES EACH SPECIFICALLY DISCLAIM ANY
OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR USE OR PURPOSE. 

ARTICLE X 

INDEMNIFICATION; INSURANCE; LIMITATION OF LIABILITY 

Section 10.01 Indemnification by BDSI. Subject to Section 10.03, BDSI hereby agrees to defend, indemnify and
hold harmless Purdue, its Affiliates, and its and their respective officers, directors, employees, agents, other representatives, and successors and assigns (“Purdue Indemnitees”) from and against all suits, claims, proceedings or
causes of action brought by Third Parties (“Claims”) brought against any Purdue Indemnitee, and all associated damages, liabilities, expenses and/or losses, including reasonable legal expenses and reasonable attorneys’ fees
(collectively, “Losses”), arising out of BDSI’s, its Affiliates’, and its and their respective officers’, directors’, employees’, contractors’, agents’, other representatives’, and
successors’ and assigns’ ***. 
 Section 10.02 Indemnification by Purdue. Subject to Section 10.03,
Purdue hereby agrees to indemnify, defend and hold harmless BDSI, its Affiliates, and its and their respective officers, directors, employees, agents, other representatives, and successors and assigns
(collectively, “BDSI Indemnitees”) from and against all Claims brought against any BDSI Indemnitee, and any associated Losses, arising out of Purdue’s, its Affiliates’, and Sublicensees’, and its and their
respective officers’, directors’, employees’, contractors’, agents’, other representatives’, and successors’ and assigns’ ***. 

Section 10.03 Indemnification Procedures. Each Party’s agreement to indemnify, defend, and hold harmless under
Section 10.01 or 10.02, as applicable, is conditioned upon the indemnified Party (a) providing written notice to the indemnifying Party of any Claim or Loss arising out of the indemnified matter as soon as reasonably practicable, and in
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provided, however, that, if the Party entitled to indemnification fails to promptly notify the indemnifying Party pursuant to this subsection (a), the indemnifying Party will only be relieved of
its indemnification obligation under this Article X to the extent materially and adversely prejudiced by such failure or delay, (b) permitting the indemnifying Party to assume control over the investigation of, preparation and defense against,
and settlement or voluntary disposition of any Claim, (c) assisting the indemnifying Party, at the indemnifying Party’s reasonable expense, in the investigation, preparation, defense, and settlement or voluntary disposition of any such
Claim or Loss, and (d) not compromising, settling, or entering into any voluntary disposition of any such Claim without the indemnifying Party’s prior written consent, which consent shall not be unreasonably withheld. In no event may the
indemnifying Party compromise, settle, or enter into any voluntary disposition of any Claim in any manner that explicitly admits material fault or wrongdoing on the part of the indemnified party, incurs
non-indemnified liability (including any payment obligation) on the part of the indemnified party, would reasonably be anticipated to result in criminal liability on the part of the indemnified party, or would
reasonably be anticipated to have a material and adverse effect on the business of the indemnified party without the prior written consent of the indemnified party, and in no event may the indemnifying Party settle, compromise, or agree to any
voluntary disposition of any matter subject to indemnification hereunder in any manner which would, in the case of any settlement, compromise or voluntary disposition effected by Purdue pursuant to its rights or obligations under Section 10.02,
reasonably be anticipated to have a material likelihood of adversely affecting any portion of the Licensed Technology or the Licensed Marks, or BDSI’s, its Affiliates’, or any of their respective Third Party licensees’ or Third Party
sublicensees’ ability to manufacture, develop, or commercialize Licensed Products or any other BEMA-based Products anywhere in the world, without BDSI’s prior written consent. 

  
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 Section 10.04 Insurance. 

(a) Except as otherwise provided below, BDSI shall maintain insurance, including commercial general liability, product liability and, for
clinical trials it sponsors, clinical trials liability insurance (with such clinical trials coverage in such amounts as will be commercially reasonable to cover the conduct of the relevant studies including, without limitation, coverage as may be
required by local law or regulation in countries outside of the United States), and workers compensation and employer’s liability insurance with respect to its activities under this Agreement regarding Licensed Products in such amount as it
customarily maintains with respect to similar activities for its other products, but not less than (i) US$*** each occurrence and US$*** aggregate for commercial general liability, (ii) US$*** each occurrence and US$*** aggregate for
product liability, and (iii) such amount as is reasonable and customary in the Canadian pharmaceutical industry for workers compensation and employer’s liability. Such coverage shall be maintained for *** following expiration or
termination of this Agreement or if such coverage is of the “claims made” type, for *** following expiration or termination of this Agreement. Upon written request, BDSI shall provide Purdue with written evidence of the required coverage.
Coverage may be in the form of primary insurance or a combination of primary and excess insurance. 
 (b) Except as otherwise provided
below, Purdue shall maintain insurance, including commercial general liability, product liability, workers compensation and employer’s liability insurance, with respect to its activities under this Agreement regarding Licensed Products in such
amount as it customarily maintains with respect to similar activities for its other products, but not less than (i) US$*** each occurrence and US$*** aggregate for commercial general liability, (ii) US$*** each occurrence and US$***
aggregate for product liability and (iii) such amount as is reasonable and customary in the Canadian pharmaceutical industry for workers compensation and employer’s liability. Such coverage shall be maintained for *** following expiration
or termination of this Agreement or, if such coverage is of the “claims made” type, for *** following expiration or termination of this Agreement. Upon written request, Purdue shall provide BDSI with written evidence of the required
coverage. Coverage may be in the form of primary insurance or a combination of primary and excess insurance. In the event that Purdue, any Affiliate thereof, or any Sublicensee sponsors or conducts a clinical trial involving a Licensed Product in
the Territory, it shall make Commercially Reasonable additions to the insurance coverage described in this Section 10.04(b) with respect to such trial, including clinical trial insurance coverage. Notwithstanding the foregoing, it is hereby
acknowledged by BDSI that, as of the Effective Date, no such clinical trials are currently planned or contemplated by Purdue. 
 (c) Each
Party shall provide the other Party *** notice of any material change, cancellation or non-renewal of any required insurance under this Agreement. In the event of a material change, cancellation, or non-renewal in coverage, each Party shall replace such coverage to comply with this Agreement so that there is no lapse of coverage for any time period. It is understood that the above-required insurance shall not
be construed to create a limit of either Party’s liability, with respect to its indemnification obligations or otherwise, under this Agreement. 

  
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 Section 10.05 Limitation of Liability. IN NO EVENT WILL EITHER PARTY BE
LIABLE TO THE OTHER PARTY OR TO ANY AFFILIATE THEREOF OR TO ANY THIRD PARTY CLAIMING UNDER OR THROUGH SUCH PARTY OR ANY OF ITS AFFILIATES FOR LOST PROFITS, LOST REVENUE, LOST SAVINGS, LOSS OF USE, DAMAGE TO GOODWILL, OR FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, EXEMPLARY CONSEQUENTIAL OR PUNITIVE DAMAGES, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY (WHETHER BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE) AND WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, ARISING UNDER ANY CAUSE OF ACTION AND ARISING IN ANY WAY OUT OF THIS AGREEMENT, PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, THE FOREGOING LIMITATION WILL NOT LIMIT EITHER PARTY’S (A) INDEMNIFICATION OBLIGATIONS FOR CLAIMS OR
LOSSES UNDER ARTICLE 10.01 OR 10.02 OR (B) LIABILITY FOR PATENT INFRINGEMENT OR ANY BREACH OF ARTICLE VIII OR SECTION 11.10 OR 11.14. 

ARTICLE XI 
 COVENANTS

 Section 11.01 Books and Records. Except as otherwise explicitly provided herein, Purdue shall maintain complete
and accurate written records of all of its and its Affiliates’ activities with respect to the Licensed Products, or other exercise of rights or performance of obligations hereunder, for a minimum of *** following the end of the Calendar Year to
which they pertain, which records may be subject to audit and inspection by BDSI pursuant to Section 14.11. BDSI shall maintain complete and accurate written of all of its and its Affiliates’ activities with respect to the Licensed
Products, or other exercise of rights or performance of obligations hereunder for a minimum of *** following the end of the Calendar Year to which they pertain, which records may be subject to audit and inspection by Purdue pursuant to
Section 14.11. Each Party covenants and agrees that it shall permit representatives of the other Party (or any Third Party allowed to be granted such rights by the other Party under this Agreement) to exercise such inspection rights with
regards to such Party’s Books and Records solely as expressly set forth in Section 14.11. 
 Section 11.02 Marketing
Expenses. Purdue covenants and agrees that, as between Purdue and BDSI, Purdue shall be solely responsible for the cost and implementation of all of its own marketing, sales, promotional and related activities concerning the
Commercialization of the Licensed Products in the Territory. 
 Section 11.03 Affiliates. Without limitation of
Section 3.02(c), each of Purdue and BDSI shall cause its respective Affiliates who engage in the performance of any activities, exercise any rights, assume any obligations hereunder, or have access to, or know or use, the other Party’s
Confidential Information, to comply with all obligations applicable to such Affiliates in connection therewith under this Agreement. Each Party shall be responsible and liable for any performance of its obligations hereunder by any of its Affiliates
and their compliance with the terms of this Agreement in connection therewith, and any breach of the 

  
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terms of this Agreement by any Affiliate of a Party shall be deemed a breach of this Agreement by such Party. Notwithstanding anything to the contrary, however, no Affiliate of Purdue shall be
entitled to engage in any Commercialization of Licensed Product in the Territory without BDSI’s prior written consent, which consent shall not be unreasonably withheld. 

Section 11.04 Compliance. 

(a) Purdue covenants and agrees that it shall comply in all material respects with all Applicable Laws in connection with its
(i) Commercialization of, or other activities with respect to, the Licensed Products and Demonstration Samples in the Territory, and (ii) other exercise of rights or performance of obligations hereunder, and Purdue shall cause all of its
Affiliates, and shall use Commercially Reasonable Efforts to cause its Sublicensees and subcontractors, to comply with the foregoing obligation. Notwithstanding anything to the contrary, any failure of Purdue, any Affiliate thereof, or any
Sublicensee to adhere to any Applicable Laws in the Territory concerning the handling of narcotics which materially adversely affects BDSI’s, its Affiliates’, or any of its or their licensees’ or sublicensees’ future manufacture,
use, shipment, handling, sale, marketing, or distribution of buprenorphine (or any product incorporating buprenorphine) in connection with the Licensed Technology shall be deemed a material breach of this Agreement entitling BDSI, subject to prior
notice and, with respect solely to the first such failure, a right to cure in the same manner as provided in Section 13.02(b), to terminate this Agreement immediately pursuant to Section 13.02(b). For the avoidance of doubt, the foregoing
covenant does and shall not apply to, and BDSI acknowledges and agrees that Purdue is not assuming any responsibility or liability under any circumstances for, the use, possession, distribution, advertising or promotion of any Licensed Products or
Demonstration Samples or any failure to comply with Applicable Laws concerning the handling of any narcotics, including buprenorphine, by or on behalf of BDSI, any of its Affiliates or any Third Party on its or their behalf or for its or their
benefit prior to the Marketing Authorization Transfer. 
 (b) BDSI covenants and agrees that it shall comply in all material
respects with all Applicable Laws in connection with its (i) activities with respect to the Licensed Products and Demonstration Samples in the Territory and (ii) other exercise of rights or performance of obligations hereunder, and BDSI
shall cause all of its Affiliates and use Commercially Reasonable Efforts to cause its subcontractors to comply with the foregoing obligation. 

Section 11.05 Reports. Purdue covenants and agrees that, except as otherwise specified in this Agreement, Purdue shall,
following Marketing Authorization Transfer, have the obligation and responsibility for and shall make any and all necessary reports to each Competent Authority with respect to the Licensed Product in the Territory and shall provide BDSI with a
complete copy of any such report as soon as reasonably possible but in any event within *** of the date of its submission of the report to each Competent Authority. Purdue covenants and agrees that, except as otherwise specified in this Agreement,
Purdue shall, following Marketing Authorization Transfer, have the obligation and responsibility for and shall make any and all necessary reports in respect of the safe and lawful handling of the Licensed Products as a narcotic substance to each
Competent Authority, and shall provide BDSI with a complete copy of any such report as soon as reasonably possible but in any event within *** of the date of submission of the report to each Competent Authority. 

  
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 Section 11.06 Further Actions. Upon the terms and subject to the
conditions hereof, each of the Parties shall use its Commercially Reasonable Efforts to (a) take, or cause to be taken, all appropriate action and do, or cause to be done, all things necessary, proper or advisable under Applicable Law or
otherwise to consummate and make effective the transactions contemplated by this Agreement, (b) obtain from Competent Authorities any consents, licenses, permits, waivers, approvals, authorizations or orders required to be obtained or made by
the Parties in connection with the authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement, and (c) make all necessary filings, and thereafter make any other required
submissions, with respect to this transaction under (i) the United States’ Securities Exchange Act of 1934, as amended and the United States’ Securities Act of 1933, as amended, and the rules and regulations thereunder and any other
applicable securities laws and (ii) any other Applicable Law. The Parties shall cooperate with each other in connection with the making of all such filings, including by providing copies of all such documents to the other Party’s counsel
(subject to appropriate confidentiality restrictions) prior to filing and, if requested, by accepting all reasonable additions, deletions or changes suggested in connection therewith. 

Section 11.07 Equitable Relief. The Parties understand and agree that because of the difficulty of measuring economic
losses to the non-breaching Party as a result of a breach of the covenants set forth in Article VIII or in this Article XI, and because of the immediate and irreparable damage that may be caused to the non-breaching Party for which monetary damages may not be a sufficient remedy, the Parties agree that the non-breaching Party may be entitled to seek specific performance,
temporary and permanent injunctive relief, and such other equitable remedies to which it may then be entitled against the breaching Party. This Section 11.07 shall not limit any other legal or equitable remedies that the non-breaching Party may have against the breaching Party for violation of the covenants set forth in Article VIII or in this Article XI. The Parties agree that the
non-breaching Party shall have the right to seek relief for any violation or threatened violation of Article VIII or this Article XI by the breaching Party from any court of competent jurisdiction in any
jurisdiction authorized to grant the relief necessary to prohibit the violation or threatened violation of Article VIII or this Article XI. This Section 11.07 shall apply with equal force to the breaching Party’s Affiliates. 

Section 11.08 Competing Products. During the Term, ***, neither BDSI (or any Affiliate thereof) nor Purdue (or Affiliate
thereof) shall, directly or indirectly (including by way of acquisition or in license from a Third Party, but excluding by way of out license to a Third Party by an Affiliate of Purdue), register or apply for Governmental Approval, sell, offer for
sale, commercially distribute, or otherwise commercialize (defined in manner similar to that of Commercialize, but with respect to products other than Licensed Products) any BDSI Competing Product in the Territory, and each Party shall ensure that
its Affiliates comply with the foregoing obligations, ***. Each Party shall ensure that its Affiliates comply with the foregoing obligations. ***. 

  
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 Section 11.09 ***. 

Section 11.10 ***. 

Section 11.11 No Encumbrances. Except to the extent Purdue may assign this Agreement under
Section 14.01, Purdue shall not, without the prior written consent of BDSI, such consent not to be unreasonably withheld, sell, license or sublicense (except as permitted by Section 3.02(a)), encumber or otherwise transfer to
a Third Party any of Purdue’s rights in Governmental Approvals, Marketing Authorizations, or Regulatory Filings in respect to any Licensed Product. 

Section 11.12 Cross-Border Protections. It is understood that Purdue receives no rights with respect to any Licensed
Product or Licensed Technology or otherwise by virtue of this Agreement in any countries or territories other than the Territory. For greater certainty, but without limiting the generality of anything otherwise contained in this Agreement, it is
expressly understood and agreed that Purdue shall: 
 ***. 

Purdue shall maintain complete and accurate written records in respect of its shipments of Licensed Products to its and their Affiliates,
Sublicensees, distributors, and customers, and shall cause its Affiliates, Sublicensees, and distributors to maintain complete and accurate written records in respect of shipments of Licensed Products to customers, for a minimum of *** following the
end of the Calendar Year to which they pertain, which records other than distributors’ records may be subject to audit and inspection by BDSI pursuant to Section 14.11 once per Calendar Year, provided that Purdue shall, upon BDSI’s
request, promptly audit such records of any of its distributors pursuant to the terms of the applicable agreement(s) therewith and share the results of such audit with BDSI. 

ARTICLE XII 
 PRODUCT
RECALL 
 Section 12.01 Product Recall Determination. If at any time or from time to time, a Competent Authority
requests or requires Purdue to conduct a Product Recall of any Licensed Product Commercialized or otherwise distributed by or for Purdue, any Affiliate thereof, or any Sublicensee in the Territory or if a voluntary Product Recall of any such
Licensed Product in the Territory is contemplated by Purdue, any Affiliate thereof, or any Sublicensee, Purdue shall immediately notify BDSI in writing of the same. BDSI will notify Purdue of any voluntary or mandatory product recall of which BDSI
becomes aware in respect of the Licensed Product in any jurisdiction other than the Territory. 
 Section 12.02 Product Recall
Management. Purdue shall have the right to control and/or conduct any Product Recall of any Licensed Product Commercialized or otherwise distributed by or for Purdue, any Affiliate thereof, or any Sublicensee in the Territory, subject
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determined by Purdue in its sole discretion and in compliance with all Applicable Law. Purdue, its Affiliates or Sublicensees, as applicable, shall maintain records of all sales and distribution
of Licensed Products and customers in the Territory sufficient to reasonably adequately administer a Product Recall, for the period required by Applicable Law, and make such records available to BDSI or any designee thereof immediately upon request.
BDSI shall cooperate, at, except as otherwise set forth in the Supply Agreement, Purdue’s expense, in the conduct of any Product Recall for such Licensed Product in the Territory as reasonably requested by Purdue. In the event Purdue notifies
BDSI, or BDSI otherwise becomes aware, that Purdue, any Affiliate thereof, or any Sublicensee does not intend to undertake a Product Recall (i) in respect of any death or life-threatening Adverse Event associated with any Licensed Product or
(ii) to comply with any Applicable Law with respect to any Licensed Product within, in either case, a reasonable period of time, or is unreasonably delayed in undertaking any such Product Recall, BDSI shall be entitled to do so without
Purdue’s prior written consent, in which case Purdue shall cooperate (and cause its Affiliates and Sublicensees to cooperate) in the conduct of any such Product Recall as reasonably requested by BDSI. 

Section 12.03 Product Recall Costs. Purdue shall, except to the extent set forth in the Supply Agreement, bear all costs
and expenses related to the conduct of any Product Recall of any Licensed Product Commercialized or otherwise distributed by or for Purdue, its Affiliates or Sublicensees in the Territory. 

Section 12.04 Notification of Relevant Events. Throughout the duration of this Agreement, the Parties shall keep each other
reasonably informed about any material adverse events, side effects, injury, toxicity or sensitivity reaction associated with the Licensed Products of which such Party becomes aware, whether or not any such effect is attributable to the Licensed
Products. Purdue shall be responsible for reporting relevant side effects to the appropriate Competent Authorities in the Territory in accordance with Applicable Laws. Each Party shall promptly inform the other Party by telephone and in writing in
the event any circumstances occur which may reasonably precipitate a possible or actual recall of any Licensed Products. Throughout the duration of this Agreement and with respect to all Licensed Products, the Parties shall immediately notify each
other of any information a Party receives regarding any threatened or pending action, inspection or communication by or from a concerned Governmental Authority which may affect the safety or efficacy claims of the Licensed Products or the continued
marketing of the Licensed Products. 
 ARTICLE XIII 

TERM AND TERMINATION 

Section 13.01 Term. This Agreement shall commence as of the Effective Date and expire on the later of (a) the first
date on which there is not at least one Valid Claim of the Licensed Patents in the Territory Covering any Licensed Product or (b) February 14th of the Calendar Year immediately following the
first complete Calendar Year following the tenth (10th) anniversary of First Commercial Sale in which Net Sales total less than CA$*** (such period, the “Term”). Licensee shall provide written notice to BDSI as soon as reasonably
possible, but in any event within ***, following the end of the first complete Calendar Year following the tenth (10th) anniversary of First Commercial Sale in which Net Sales total less than CA$***. 

  
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 Section 13.02 Termination by Either Party for Cause. Subject to
Section 13.06, a Party may terminate this Agreement prior to the expiration of this Agreement upon the occurrence of any of the following: 

(a) upon or after the permanent cessation of operations of the other Party without a successor, or the bankruptcy or judicially declared
insolvency of such Party, or the dissolution or winding up of the other Party (other than dissolution or winding up for the purposes or reconstruction or amalgamation) without a successor; or 

(b) upon or after the material breach of this Agreement or the Supply Agreement by the other Party (other than a failure to pay by Purdue
under this Agreement, which is addressed in Section 13.03(b)), if the breaching Party has not cured such breach, if capable of being cured within such time period, within *** after written notice thereof by the
non-breaching Party, provided that notwithstanding the foregoing, BDSI shall be entitled to terminate this Agreement pursuant to Section 13.03(b) without providing the aforementioned opportunity to cure.

 Section 13.03 Termination by BDSI. Subject to Section 13.07, BDSI may, by written notice to Purdue, terminate
this Agreement: 
 (a) upon the failure by Purdue to pay the license fee pursuant to Section 3.01 within the time period set forth
therein; 
 (b) upon the failure by Purdue on *** occasions to pay any amount overdue under this Agreement within *** from receipt of a
written notice thereof to Purdue from BDSI (with respect to any amounts due under this Agreement pursuant to an invoice to be sent by BDSI, the first such invoice shall not be deemed “notice” for purposes of this paragraph), provided that
any failure to pay resulting from any Third Party delays with respect to the transfer of funds from Purdue to BDSI that are out of the reasonable control of Purdue and its Affiliates (such as bank transfer delays) shall not constitute a
“failure to pay” for purposes of this clause (b); or 
 (c) in the event the First Commercial Sale of a Licensed Product hereunder
does not occur by the date nine (9) months from Marketing Authorization Transfer, provided that, to the extent that Purdue can reasonably demonstrate that manufacturing or supply delays outside of Purdue’s, its Affiliates’, and
Sublicensees’ reasonable control prevented the First Commercial Sale from occurring by such date, such date shall be automatically extended by an amount equal to the extent of such manufacturing or supply delays. 

Section 13.04 Discretionary Termination by Purdue. 

(a) Purdue shall have the right to terminate this Agreement upon *** written notice to BDSI if, as determined by Purdue in its
sole discretion, general market conditions indicate that the Licensed Product is not economically viable for Purdue in the Territory. 

  
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 (b) BDSI shall notify Purdue in writing at least *** in advance of any
Adverse BDSI Acquisition. Purdue shall have the right to terminate this Agreement on *** notice given by Purdue up to *** after the consummation of such Adverse BDSI Acquisition. 

Section 13.05 Remedies. All of a non-breaching Party’s remedies with respect
to a breach of this Agreement shall be cumulative, and the exercise of one remedy under this Agreement by the non-breaching Party shall not be deemed to be an election of remedies. These remedies shall include
the non-breaching Party’s right to sue for damages for such breach without terminating this Agreement and to seek such other remedies as may be available to such Party at law or in equity. 

Section 13.06 Effect of Termination. 

(a) Upon any expiration or termination of this Agreement, and subject to Section 13.06(b) and the exercise of the rights granted
thereunder, (i) the rights granted under Sections 3.02 and 3.03 with respect to the Licensed Marks and the Licensed Technology, and any sublicenses granted thereunder, shall terminate, (ii) Purdue and its Affiliates shall
(A) immediately transfer to BDSI all information in Purdue’s and its Affiliates’ possession concerning Licensed Products, Licensed Product inventory and
work-in-process, Purdue Know-How, Purdue Patents, Purdue Marks, Purdue Documentation, Product-Related Materials, Regulatory
Filings, Marketing Authorizations, and Governmental Approvals, including but not limited to any market research and competitive reports, marketing reports, and related data concerning Licensed Products or the Commercialization thereof in the
Territory, and, if and as subsequently requested by BDSI in writing, (B) transfer and assign to BDSI all right, title, and interest in all Regulatory Filings, Marketing Authorizations, DINs, and Governmental Approvals, and Product-Related
Materials (other than Purdue’s right, title or interest in or to any Purdue Know-How, Purdue Patents, Purdue Marks or any other Purdue intellectual property rights embodied in any of the foregoing), and
Purdue will take, without delay, the steps required to effect re-assignment of the DINs to BDSI or a designee thereof, including by communicating the change in ownership to the relevant Competent Authority,
(iii) Purdue shall, to the extent requested by BDSI, sell and deliver the inventory of Licensed Products and work-in-process to BDSI, and BDSI shall, within *** of
such delivery, pay Purdue an amount to be negotiated and agreed upon by the Parties that shall not exceed Purdue’s reasonable, documented, direct cost of procuring such inventory or work-in-process, provided that, if BDSI exercises such right, BDSI will, if requested by Purdue and agreed to in writing by BDSI, assume Purdue’s obligations to Third Parties in the Territory with
respect to the sale or distribution of such Licensed Product, subject to, and as shall be further detailed in, any such agreement between the Parties, (iv) Purdue hereby grants BDSI and its Affiliates the perpetual, irrevocable, royalty-free,
fully-paid, exclusive right and license, transferable with this Agreement under Section 14.01 and with rights of sublicense, under the Purdue Know-How and Purdue Patents, and a perpetual, irrevocable,
royalty-free, fully-paid license, transferable with this Agreement under Section 14.01 and with rights of sublicense, under the Purdue Marks, to develop, make, have made, use, sell, offer for 

  
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sale, import, and export, market and promote Licensed Products and Demonstration Samples in the Territory (including but not limited to all Licensed Products Commercialized or under development
by Purdue or any of its Affiliates or Sublicensees as of the effective date of termination), including the right to use all marketing, promotional and similar materials related solely to the Licensed Product that are in Purdue’s, its
Affiliates’, or its Sublicensees’ Control, and (v) Purdue shall provide BDSI all information requested by BDSI concerning any manufacturing, supplier, distributor, research, development, clinical study, or other contracts concerning
the Development, manufacture, or Commercialization of Licensed Products or Demonstration Samples entered into by Purdue or its Affiliates with Third Parties (“Product-Related Contracts”) and information related to any of the
foregoing to the extent permitted by the terms thereof (and, if not so permitted, Purdue shall use reasonable efforts to obtain such permission and thereafter disclose to the extent enabled by such permissions) and, if and as subsequently requested
by BDSI, (X) assign such Product-Related Contracts to BDSI (to the extent assignable in accordance with their terms or consent to such assignment is obtained by Purdue pursuant to the following clause (Y)), (Y) use Commercially Reasonable
Efforts to obtain Third Parties’ consent to such assignment to the extent not permitted by the terms of such agreements, in order to enable such assignment as contemplated by clause (X), or (Z) otherwise reasonably facilitate BDSI’s
establishment of similar relationships with such Third Parties. BDSI shall reimburse all of Purdue’s and its Affiliates’ reasonable, documented out-of-pocket
costs in performing its obligations under clause (ii)(B) (except in the case of a termination of this Agreement by BDSI pursuant to Section 13.02 or 13.03 or by Purdue under Section 2.01(d), 6.04, or 13.04, in which case BDSI shall not
have any such obligation) and clause (iv) above, provided that, in the case of clause (iv), (A) such costs shall only include reasonable, documented royalties or other licensing fees paid by Purdue and its Affiliates to Third Party licensors as
a direct and sole result of BDSI’s exercise of rights or sale of Licensed Product in the Territory under any applicable license to Purdue from a Third Party and (B) BDSI has been provided full and complete information regarding such costs
in advance with a reasonable opportunity to decline to be granted or terminate such a sublicense. 
 (b) Upon any expiration of this
Agreement or termination of this Agreement other than by BDSI pursuant to Section 13.02 or 13.03, or as permitted in writing by BDSI in the event of any termination by BDSI pursuant to Section 13.02 or 13.03, Purdue (and/or its Affiliates
and Sublicensees, if and as applicable) shall have the right, for a period of twelve (12) months from the date of termination to distribute and sell existing inventory of Licensed Products subject to the terms of this Agreement (including
Article IV hereof and the payment of royalties thereunder) to the extent such inventory is not purchased by BDSI pursuant to Section 13.06(a)). 

(c) Except as otherwise provided in this Agreement, expiration or termination of this Agreement shall not relieve the Parties of any
obligation accruing prior to such expiration or termination. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under Articles I and IV and Sections 3.02(c), 3.05, 3.06, 8.01, 8.02, 8.03, 9.12, 10.01,
10.02, 10.03. 10.04 (to the extent set forth therein), 10.05, 11.01, 11.03, 11.07, 11.11, 12.01, 12.02, 12.03, 13.05, 13.06, 13.08, 14.01, 14.02, 14.03, 14.04, 14.05, 14.06, 14.07, 14.08, 14.09, 14.10, 14.11, 14.12, 14.13, and 14.14 shall
survive expiration or termination of this Agreement. 

  
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 (d) Subject to the provisions of this Section 13.06, and except as necessary to enable
the exercise of any rights granted under this Agreement or perform any obligations under this Agreement following its expiration or termination, within *** following the expiration or termination of this Agreement, each Party shall return to the
other Party, or destroy, upon the written request of the other Party, any and all Confidential Information of the other Party in its possession and upon a Party’s request, such destruction (or delivery) shall be confirmed in writing to such
Party by a responsible officer of the other Party. 
 Section 13.07 Suspension of Cure Period Pending Dispute
Resolution. If a Party gives notice of breach under Section 13.02 or Section 13.03 and the other Party, acting in good faith, disputes in writing prior to the end of the applicable cure period whether such notice was proper,
then the issue of whether a material breach has occurred shall be resolved in accordance with Section 14.03. If as a result of such dispute resolution process it is determined that the notice of breach was proper, then such notice shall be
deemed to have been effective if the breaching Party fails thereafter to cure such breach in accordance with the determination made in the resolution process within the applicable cure period following such determination. If as a result of such
dispute resolution process it is determined that the notice of breach was improper, then no such notice shall be deemed to have been effective and this Agreement shall remain in effect. All of the terms and conditions of this Agreement, including
all of the licenses granted hereunder, shall remain in full force and effect during the pendency of such dispute resolution process. 

Section 13.08 Bankruptcy of BDSI. The rights granted to Purdue and BDSI in Article III and Section 13.06 are intended
by the Parties to be grants of a right to “intellectual property,” as defined under Section 101(35A) of the U.S. Bankruptcy Code. The Parties intend for the protections of section 365(n) of the U.S. Bankruptcy Code (and any
corresponding or similar protections under similar laws in the Territory) to apply to such licenses granted herein and nothing in the this Agreement limits a Party’s rights with respect thereto under section 365(n) of the U.S. Bankruptcy Code
or such similar laws in the Territory; and if a Party’s obligations under the license are terminated in bankruptcy, such Party shall receive a copy of all applicable intellectual property (and embodiments thereof). 

ARTICLE XIV 

MISCELLANEOUS 

Section 14.01 Assignment. Except as explicitly contemplated by this Agreement, neither this Agreement nor any rights or
obligations hereunder may be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld); provided, however, that, notwithstanding anything to the
contrary, either Party may assign this Agreement and its rights and obligations hereunder without the other Party’s consent (a) to any of the assigning Party’s Affiliates, including pursuant to a reorganization of such Party’s
organizational structure solely for tax purposes, (b) in connection with the transfer, sale, or other disposition of all or substantially all of the assets or business of 

  
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such assigning Party (or that portion thereof, or any portion of any product, to which this Agreement relates) to a Third Party, whether by merger, sale of stock, sale of assets or otherwise, or
(c) for the benefit of a creditor or, in the event of any exercise of any remedies by a creditor, to a purchaser in a foreclosure sale of collateral (subject to assumption by such purchaser of all obligations under this Agreement).
Notwithstanding the foregoing, any such assignment to an Affiliate shall not relieve the assigning Party of its responsibilities for performance of its obligations under this Agreement, so long as such Affiliate remains an Affiliate of the assigning
Party. Each Party shall promptly notify the other Party of any purported assignment of this Agreement. The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Parties. Any purported assignment not in accordance with this Agreement shall be void. 
 Section 14.02 Force
Majeure. Neither Party shall be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this Agreement to the extent such
failure or delay is caused directly by or results directly from causes beyond the reasonable control of the affected Party, including, but not limited to, fire, floods, embargoes, terrorism, war, acts of war (whether war be declared or not),
insurrections, riots, civil commotions, strikes, lockouts or other labor disturbances, acts of God or acts, omissions, delays, or actions by any Governmental Authority or for any other reason which is completely beyond the reasonable control of the
Party (other than by reason of such Party failing to comply with Applicable Law) (collectively a “Force Majeure”). The Party prevented from carrying out its obligations hereunder shall give written notice to the other Party of an
event of Force Majeure upon it being reasonably foreseen with reasonable certainty by, or becoming known to, the affected Party, such notice to describe the cause and estimated effect of the event of Force Majeure. If and to the extent that a Party
is delayed or prevented from performing its obligation under this Agreement, other than a payment of monetary obligations, due to a Force Majeure, such Party shall nonetheless use its Commercially Reasonable Efforts to mitigate, avoid or end such
delay or failure in performance to the extent and as soon as reasonably practicable. 
 Section 14.03 Governing Law;
Jurisdiction; Dispute Resolution. 
 (a) This Agreement shall be governed by and construed under the state laws of the
State of New York, without reference to its conflicts of laws principles. 
 (b) In the event that any controversy or claim shall arise
between the Parties under, out of, in connection with, or relating to this Agreement or the breach thereof, the Party initiating such controversy or making such claim shall provide to the other Party written notice containing a brief and concise
statement of the initiating Party’s claims, together with relevant facts supporting them. During a period of ***, or such longer period as may be mutually agreed upon in writing by the Parties, following the date of said notice, the Parties
shall make good faith efforts to settle the dispute. Such efforts may include, but shall not be limited to, full presentation of both Parties’ claims and responses, with or without the assistance of counsel, before the chief executive officers
(or their designees) of the Parties. If for whatever reason the Parties are unable to resolve the dispute within *** after the issuance of a notice of dispute, then either Party may, by written notice to the other Party, submit the dispute to
binding arbitration in accordance with the provisions of Section 14.03(c). 

  
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 (c) In the event that the Parties have been unable to reach accord using the procedures set
forth in Section 14.03(b), either Party may seek final resolution of the matter through binding arbitration upon written notice to the other Party. The failure of a Party to comply with the provisions of Section 14.03(b) with respect to
any controversy or claim shall, except as set forth in Section 14.03(d), constitute an absolute bar to the institution of any proceedings, by arbitration or otherwise, by such Party with respect to such controversy or claim. Any such
arbitration shall be held in a location that is mutually agreed upon by the Parties, which provides neither party an advantage (or, if the Parties are unable to agree on a location within *** of the initiation of arbitration hereunder, such location
shall be New York, New York), in the English language before a single independent, neutral arbitrator, who shall be selected by agreement of the Parties, or, if the Parties cannot agree within *** after commencement of arbitration, then by the
American Arbitration Association (“AAA”) in accordance with the then existing Commercial Arbitration Rules of the AAA (the “Rules”) and judgment upon the award rendered by the arbitrator may be entered or enforced
in any court having jurisdiction thereof. The arbitrator shall have at least *** experience in pharmaceutical patent licensing. The arbitrator shall permit the Parties to have discovery to the extent permitted by the Rules. The decision of the
arbitrator shall be final and binding on the Parties and shall be accompanied by a written opinion of the arbitrator explaining the arbitrator’s rationale for its decision. Except as may otherwise be determined by the arbitrator in its award to
be just and appropriate in light of the particular circumstances and outcome of the arbitration, the Party losing the arbitration shall pay all fees and costs of the arbitrator and the AAA and reimburse the prevailing Party for its reasonable
attorneys’ fees, costs, expenses, and disbursements (including, for example, expert witness fees and expenses, photocopy charges and travel expenses). The intent of the Parties is that, except for the entering of an arbitration order in a court
of competent jurisdiction or as set forth in Section 14.03(d), disputes shall be resolved finally in arbitration as provided above, without appeal, and without recourse to litigation in the courts. 

(d) Notwithstanding the foregoing provisions of this Section 14.03, (i) each Party shall be entitled to seek injunctive or equitable
relief to enforce the respective covenants and agreements of the Parties in this Agreement and (ii) either Party may initiate an action before any court having competent jurisdiction in order to obtain interim or conservatory relief, such as an
order to preserve the status quo and to avoid incurring irreparable harm pending the resolution of any dispute that is submitted to arbitration, to prevent or enjoin, without in either case complying with the procedures set forth in
Section 14.03(b) or 14.03(c). 
 Section 14.04 Waiver. No waiver of any term or condition of this Agreement shall be
effective unless set forth in a written instrument duly executed by or on behalf of the waiving Party. Except as specifically provided for herein, the waiver from time to time by either of the Parties of any of their rights or their failure to
exercise any remedy shall not operate or be construed as a continuing waiver of same or of any other of such Party’s rights or remedies provided in this Agreement. 

  
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 Section 14.05 Severability. In case any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Any provision of this Agreement held invalid or unenforceable in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable. 
 Section 14.06 Notices. All notices
and other communications provided for herein shall be dated and in writing and shall be deemed to have been duly given (a) on the date of delivery, if delivered personally, by e-mail or by facsimile
machine, receipt confirmed, (b) on the following business day, if delivered by a nationally recognized overnight courier service, with receipt acknowledgement requested, or (c) three (3) business days after mailing, if sent by registered
or certified mail, return receipt requested, postage prepaid, in each case, to the Party to whom it is directed at the following address (or at such other address as any Party shall hereafter specify by notice in writing to the other Parties): 

 

			
	If to BDSI:	  	BioDelivery Sciences International, Inc.
		  	4131 Parklake Avenue, Suite #225
		  	Raleigh, North Carolina 27612
		  	Attn: Mark Sirgo, Chief Executive Officer
		  	Telephone: 919-582-9050
		  	Facsimile: 919-582-9051

 Copies (which shall not constitute notice) to: 

Wyrick Robbins Yates & Ponton LLP 

4101 Lake Boone Trail, Suite 300 

Raleigh, North Carolina 27607 USA 

Attn: Jason S. Wood 
 Telephone:
(919) 781-4000 
 Facsimile: (919) 781-4865 

  
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	If to Purdue:	 	Purdue Pharma

 575 Granite Court 

Pickering, ON 
 L1W 3W8 

Attn: Dr. Craig Landau, President & CEO 

Telephone: 905-421-3356 

Facsimile: 905-420-4193 

Copies (which shall not constitute notice) to: 

Purdue Pharma 
 575 Granite
Court 
 Pickering, ON 
 L1W
3W8 
 Attn: Jacqueline LeSaux, Vice President, Legal 

Telephone: 905-420-4958 

Fax: 905-420-4193 

Section 14.07 Independent Contractors. It is expressly agreed that BDSI and Purdue shall be independent contractors and
that the relationship between the two Parties shall not constitute a partnership or agency of any kind. Neither BDSI nor Purdue shall have the authority to make any statements, representations or commitments of any kind, or to take any action, which
shall be binding on the other Party, without the prior written consent of the other Party. 
 Section 14.08 Rules of
Construction. The Parties agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any applicable law, regulation, holding or rule of construction
providing that ambiguities in an agreement or other document will be construed against the Party drafting such agreement or document. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include
the female gender and neuter, and vice versa. 
 Section 14.09 Publicity. Neither Purdue nor BDSI will make any public
announcement in respect of this Agreement or the matters contemplated hereby without the other Party’s prior written approval, such approval not to be unreasonably withheld, except as may be required by applicable law, rule, or regulation or
the rules and regulations of the Securities and Exchange Commission, any national securities exchange (including those located in countries outside of the United States) or the Nasdaq Stock Market, and provided that, notwithstanding anything to the
contrary, BDSI shall be entitled to announce or disclose that BDSI has earned any of the milestone payments described under Section 4.02 (which announcement may describe the triggering milestone event). Where a public announcement or disclosure
is required by required by applicable law, rule, or regulation or the rules and regulations of the Securities and Exchange Commission, any national securities exchange (including those located in countries outside of the United States) or the Nasdaq
Stock Market, or if BDSI is announcing or disclosing that BDSI has earned any of the milestone payments described under Section 4.02 (which announcement may describe the triggering milestone event), the Party required to make the announcement
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disclosure or BDSI, respectively, will, to the extent reasonably practicable, reasonably in advance of such announcement or disclosure (1) inform the other Party of the contents of the
proposed announcement and (2) afford the other Party a reasonable opportunity to comment on the announcement or disclosure in draft form. Notwithstanding the foregoing, no consent of any Party shall be required to release information which has
previously been made public. Notwithstanding, and without limitation of, the foregoing, both Parties shall use reasonable good faith efforts to agree on a press release to be issued promptly following the execution of this Agreement. Any notice to
or request for approval to be made pursuant to this Section 14.09 shall be made in accordance with Section 14.06, or by email to *** for Purdue or *** for BDSI, except that in the case of notices to or requests for approval from Purdue, a
copy of such notices or requests for approvals shall also be directed to, in addition to those persons named in Section 14.06, ***. 

Section 14.10 Entire Agreement; Amendment. This Agreement (including the Exhibits attached hereto), the Supply Agreement
and, upon execution thereof by the Parties, the Quality Agreement and the Pharmacovigilance Agreement sets forth all of the covenants, promises, agreements, warranties, representations, conditions and understandings between the Parties with respect
to the subject matter hereof and supersedes and terminates all prior agreements and understandings between the Parties. There are no covenants, promises, agreements, warranties, representations conditions or understandings, either oral or written,
between the Parties other than as set forth herein. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced to writing and signed by the respective authorized officers of the
Parties. 
 Section 14.11 Audit and Inspection Rights. Upon *** prior written notice from either Party (the
“Requesting Party”), the Party receiving such notice (the “Audited Party”) shall permit an independent certified public accountant selected by the Requesting Party (or any designee thereof) and reasonably acceptable
to the Audited Party (with respect to inspections or audits directly concerning financial matters) or any designee selected by the Requesting Party and reasonably acceptable to the Audited Party (with respect to inspections or audits not directly
concerning financial matters) to audit and/or inspect only those Books and Records (including but not limited to financial records) as may be necessary pursuant to the terms of the applicable Section of this Agreement granting the applicable audit
and/or inspection rights to the Requesting Party pursuant to this Section 14.11. For greater certainty, the Audited Party shall not disclose, nor be required to disclose, to the independent accounting firm, and the independent accounting firm
shall not audit, inspect or disclose to the Requesting Party, any competitively sensitive or strategic information of the Audited Party to the extent directly and solely related to any product other than the Licensed Product and/or any
jurisdiction other than the Territory. Any such independent accounting firm or designee shall be subject to the confidentiality provisions of this Agreement. In the case of any audit and/or inspection directly concerning financial matters, a copy of
any report provided to a Party by the accountant shall be given concurrently to the other Party and shall be considered the Audited Party’s Confidential Information. Subject to the terms of this paragraph, any such inspection or audit shall be
conducted (a) at the sole cost of the Requesting Party and (b) during the Audited Party’s normal business hours. If the applicable audit involves payments made and/or to be made by one Party

  
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to the other Party and such accounting firm concludes that there was an overpayment or underpayment by one Party to the other Party with respect thereto, within *** of the date of delivery of
such accounting firm’s report concluding that an overpayment or underpayment occurred, the amount overpaid shall be promptly repaid by the overpaid Party or the amount underpaid shall be promptly augmented by the underpaying Party as necessary
to correct the underpayment, and if there was an underpayment, the underpaying Party shall pay interest on the unpaid amount at the rate set forth in Section 4.03(c). If the amount of such underpayment for any particular Calendar Quarter was
equal to or greater than *** of the proper amount payable with respect to such Calendar Quarter, the Audited Party shall promptly reimburse the Requesting Party for the reasonable, documented costs associated with the audit. 

Section 14.12 Headings. The captions contained in this Agreement are not a part of this Agreement, but are merely guides or
labels to assist in locating and reading the several Articles hereof. 
 Section 14.13 Counterparts. This Agreement may
be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures to this Agreement may be transmitted via email or facsimile and such signatures
shall be deemed to be originals. 
 Section 14.14 CREATE Act This Agreement includes a joint research agreement as
defined in 35 U.S.C. § 103(c)(3). 
 [Signature page to follow.] 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in duplicate by
their duly authorized officers as of the Effective Date. 
  
 ARIUS
PHARMACEUTICALS, INC. 
  

			
		
	By:	 	/s/ Mark A. Sirgo
	Name:	 	Mark. A Sirgo
	Title:	 	President

 BIODELIVERY SCIENCES INTERNATIONAL, INC. 

 

			
		
	By:	 	/s/ Mark A. Sirgo
	Name:	 	Mark A. Sirgo
	Title:	 	President and CEO

 PURDUE PHARMA 
 By its general
partner, PURDUE PHARMA INC. 
  

			
	By:	 	/s/ Craig Landau
	Name:	 	Craig Landau
	Title:	 	President and CEO

 Signature page to License Agreement 

  

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 EXHIBIT A 

INITIAL BDSI TPMCXA 
  

			
	 Dosage Strength of Licensed
Product
	  	 Initial BDSI TPMCXA

	 *** mcg
	  	US$***
	 *** mcg
	  	US$***
	 *** mcg
	  	US$***
	 *** mcg
	  	US$***
	 *** mcg
	  	US$***
	 *** mcg
	  	US$***
	 *** mcg
	  	US$***

  

 EXHIBIT B 

LICENSED MARKS 
  

									
	Mark	  	Application No./Date	  	Registration No./Date	  	Renewal Date	  	Goods
	 BELBUCA
	  	 1,694,096

09/16/2014
	  	 TMA932,689

03/29/2016
	  	03/29/2031	  	Pharmaceutical preparations, namely analgesics.

  

 EXHIBIT C 

LICENSED PATENTS 
  

													
	 Appln. No.
	  	 Status
	  	 Filing Date
	  	 Patent No.
	  	 Issue Date
	  	 Exp. Date
	  	 Assignee

	 2268187
	  	Granted	  	16-Oct-1997	  	2268187	  	05-Jun-2007	  	16-Oct-2017	  	Arius Two, Inc.
							
	 2658585
	  	Granted	  	20-Jan-2009	  	2658585	  	01-Mar-2011	  	23-Jul-2027	  	BioDelivery Sciences International, Inc.
							
	 2859859
	  	Pending	  	18-Jun-2014	  		  		  		  	BioDelivery Sciences International, Inc.

  

 EXHIBIT D 

LICENSED MARK GUIDELINES 

1. The Licensed Marks must only be used in accordance with the applicable registrations set forth in Exhibit B of this Agreement.

2. Each Licensed Mark should always be used in its entirety. Do not dissect any Licensed Mark into separate parts.

3. Each Licensed Mark must never be confused or blurred by printing it over additional design elements as distracting color overlays,
ornamentation, textures or photographs in such a manner that a reasonable person would be unable to read or distinguish the Licensed Mark. 

4. All goods displaying a Licensed Mark must maintain the highest possible quality. Do not use the Licensed Mark in connection with
products or services inferior to the quality of other products and services bearing the Licensed Mark.
 5. Do not use a Licensed Mark in
any manner that will reflect adversely upon the goodwill and reputation associated with such Licensed Mark, any Licensed Product, or BDSI. 

6. Each Licensed Mark is a noun and should not be used in print or verbally as an adjective, a verb or other part of speech. 

7. The ® symbol should be displayed next to a Licensed Mark if the Licensed Mark is
registered. Otherwise, the TM symbol should be used. 
 8. Each Licensed Marks should only be used to refer to the Licensed
Product. 
 9. The Licensed Marks should never be used in a way that is misleading or may imply association of unrelated products or
companies. 
 10. Where typically included, use of any Licensed Mark should be accompanied by the following statement: “[Licensed Mark]
is a registered trademark of BioDelivery Sciences International, Inc., used with permission by Purdue Pharma.” 

  

 EXHIBIT E 

*** 

  

 EXHIBIT F 

ENDO HEALTH CANADA LETTER 

*** 

  

 SCHEDULE 2.01(D) 

INITIAL NOC FEE AMOUNT 
 ***

  

 SCHEDULE 5.01(A) 

COMMERCIALIZATION EFFORTS 

***EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (this “Agreement”) is made this 3rd day of November, 2017 (the “Effective Date”),
by and between Frankly Co., a Delaware corporation (the “Employer” or “Company”), and Steve
Chung, an individual residing at 3921 Durand Drive, San Mateo, CA 94403 (the “Employee”), collectively (the
“Parties”).

 

WHEREAS
the Employee has been a senior executive of Frankly Co.

 

AND
WHEREAS the Company is extending a new term Employment Agreement “Agreement”;

 

NOW
THEREFORE in consideration of the Consideration and premises and mutual covenants herein contained and other good and valuable
consideration, the receipt and sufficiency of which is acknowledged by the parties hereto, the Company and the Employee hereby
covenant and agree as follows:

 

1.
DEFINITIONS

 

For
the purposes of this Agreement, the following terms have the meanings specified or referred to in this Section 1:

 

“Agreement”
— this Employment Agreement, including the Schedules and Exhibits, if any, attached hereto, as amended from time to time.

 

“Board
of Directors” — the board of directors of Frankly Inc.

 

“Change
in Control” – means

 

	 	(1)	A
    successful “take-over bid” (as defined in the Securities Act (British Columbia), as amended, or any successor
    legislation thereto) pursuant to which the “offeror” beneficially owns in excess of 50% of the issued and outstanding
    common shares of the Company;
	 	(2)	The
    issuance to or acquisition by any person, or group of persons acting jointly or in concert, directly or indirectly, including
    through an arrangement or other form of reorganization, of common shares of the company which in the aggregate total 50% or
    more of the then issued and outstanding common shares of the Company;
	 	(3)	An
    arrangement, merger or other form of reorganization of the Company where the holder of the outstanding voting securities or
    interests of Company immediately prior to the completion of the reorganization will hold 50% or less of the outstanding voting
    securities or interests of the continuing entity upon completion of the arrangement, merger or reorganization; the sale of
    all or substantially all of the assets of the Company; or
	 	(4)	The
    liquidation, winding-up or dissolution of the Company.

 

    	1

    	 

    

 

“Confidential
Information” — any and all:

 

(a)  trade
secrets concerning the business and affairs of Frankly (including any and all Confidential Information of Employee’s
former employer), product specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs,
graphs, drawings, samples, inventions and ideas, past, current, and planned research and development, current and planned
manufacturing or distribution methods and processes, customer lists, current and anticipated customer requirements, price
lists, market studies, business plans, computer software and programs (including object code and source code), computer
software and database technologies, systems, structures, and architectures (and related formulae, compositions, processes,
improvements, devices, know-how, inventions, discoveries, concepts, ideas, designs, methods and information); and

 

(b)
  proprietary information concerning the business and affairs of Frankly (which includes historical financial
statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and
backgrounds of key personnel, personnel training and techniques and materials), however documented; and

 

(c) notes,
analysis, compilations, studies, summaries, and other material prepared by or for Employer containing or based, in whole or
in part, on any information included in the foregoing.

 

“Effective
Date” — the date stated in the first paragraph of the Agreement.

 

“Employer”
— defined as Frankly Co.

 

“Employee
Invention” — any idea, invention, technique, modification, process, or improvement (whether patentable or not),
any industrial design (whether registrable or not), any mask work, however fixed or encoded, that is suitable to be fixed, embedded
or programmed in a product (whether recordable or not), and any work of authorship (whether or not copyright protection may be
obtained for it) created, conceived, or developed by Employee, either solely or in conjunction with others, during the Employment
Period, or a period that includes a portion of the Employment Period, that relates in any way to, or is useful in any manner in,
the business then being conducted or proposed publicly to be conducted by Employer, and any such item created by Employee, either
solely or in conjunction with others, following termination of Employee’s employment with Employer, that is based upon or
uses Confidential Information. The term “Employee Invention” includes but is not limited to the inventions,
techniques, and specially commissioned works described in Schedule 5.2(b).

 

“Employment
Period” — the term of Employee’s employment under this Agreement.

 

“Fiscal
Year” — Employer’s fiscal year, as it exists on the Effective Date or as changed from time to time.

 

“Frankly”
– refers collectively to Frankly Inc., Frankly Media LLC and Frankly Co.

 

“Person”
— any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, or governmental body.

 

“Proprietary
Items” — as defined in Section 5.2(a)(iv).

 

“Salary”— as defined in Section 3.1(a).

 

    	2

    	 

    

 

2.
EMPLOYMENT TERMS AND DUTIES

 

2.1
EMPLOYMENT

 

Employer
hereby employs Employee, and Employee hereby accepts employment by Employer, upon the terms and conditions set forth in this Agreement.

 

2.2
TERM

 

Subject
to the provisions of Section 4, the term of Employee’s employment under this Agreement will be two (2) years (the “Employment
Period”), beginning on the Effective Date and ending on the second anniversary of the Effective Date. Subject to the
provisions of Sections 3 and 4 below, this Agreement shall be automatically renewed for subsequent periods of one (1) year unless
either party provides written notice at least one hundred twenty (120) days prior to the expiration of the current period of its
intention not to renew the Agreement.

 

2.3
DUTIES

 

Subject
to the terms set forth herein, the Employee will serve as Chief Executive Officer (CEO) of Frankly and shall have the ordinary
and customary duties attendant with such title. The Employee will report to the Board of Directors and the Employee shall serve
in an executive capacity and shall perform such duties and shall devote all of the Employee’s business time, attention and
ability during normal corporate business hours to the discharge of the duties hereunder and to the faithful and diligent performance
of such duties and the exercise of such powers as may be assigned to or vested in the Employee by the Board of Directors, such
duties to be consistent with his position.

 

2.4
LOCATION

 

During
the Employment Period, the Employee shall render his services in San Francisco, California, or such other place as mutually agreed
upon with the Company.

 

3.
EMPLOYMENT COMPENSATION

 

3.1
COMPENSATION PACKAGE

 

Employee’s
compensation and any and all other rights of Employee under this Agreement are included in the following compensation package
(the “Compensation Package”). This Compensation Package shall contain certain financial terms outlined in Schedule
A and conditions addressed below (salary, health care, Company benefits and life and disability insurance, etc.).

 

(a) 
Salary. Employee will be paid an annual base salary at the rate set forth in Schedule A, subject to adjustments as
provided below (the “Salary”), payable in the same manner and on the same payroll schedule in which the
Company’s employees receive payment. The Salary will be reviewed by Frankly Inc.’s Compensation Committee not
less frequently than annually, and may be adjusted upward from time to time by Frankly Inc.’s Compensation Committee
commensurate with Employee’s performance and duties.

 

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(b)  Annual
Performance Bonus. Commencing on January 1, 2018, the Employee will be entitled to participate in Frankly’s Annual
Performance Bonus plan. The Board of Directors will establish certain performance measures each fiscal year that the Employee
and Company will need to achieve and payment will be subject to Frankly Inc. Board approval.

 

(c)
 Employee Retention Plan.
Employee will be entitled to participate in the Frankly’s 2017 Employee Retention Program, subject to Frankly Inc.
Board approval.

 

(d) Employee
Incentive Plans. Employee will be entitled to participate in such other equity, bonus and incentive plans as are
generally made available to Frankly’s other employees, subject to Frankly Inc. Board approval.

 

(e)
Benefits. During the Employment Period,
the Employee shall be entitled to the following benefits, programs and arrangements of the Employer in effect during the Employment
Period which are generally available to the executive employees of Frankly, subject to and on a basis consistent with terms, conditions
and overall administration of such plans, programs and arrangements.

 

(i) 
Insurance. Employee shall be entitled to participate in all fringe benefit programs, including health insurance, vision
insurance, dental insurance, life insurance, accident insurance and short and long term disability insurance, as well as any
other similar insurance programs offered by Frankly to individuals employed in executive positions. It is specifically
acknowledged by the Parties that the premiums for the family health and medical insurance to be provided to Employee shall be
paid for in full by the Employer.

 

(ii) Business
Expenses. The Employer shall reimburse the Employee, or provide him with a Company credit card, for the reasonable
amount of hotel, travel, entertainment and other expenses necessarily incurred by the Employee in the discharge of his duties
for the Employer, subject to the Company’s expense reimbursement policies.

 

(iii) Idemnification;
Insurance Against Liability. Employer will indemnify, save harmless, and defend Employee, and all of Employee’s heirs
and assigns, (collectively “indemnified parties”) from and against any and all claims, damages, losses, liabilities,
suits, actions, demands, proceedings (whether legal or administrative) and expenses (including but not limited to reasonable attorneys’
fees and costs) (collectively, “Losses”) arising out of, resulting from, or relating to the services Employee provides
Employer under this Agreement, including, without limitation, any claims from or by third parties to the extent permitted by applicable
law of the state of incorporation of Employer (Delaware at the date hereof) and Employer’s organizational documents; provided
that if it is determined by a non- appealable judicial ruling that Employee committed any criminal or unlawful acts, Employer
will be entitled to recover from Employee all costs, fees and expenses relating to Losses directly resulting from Employee’s
criminal or unlawful acts. Such claims shall include, but shall not be limited to, claims based upon trademark, service mark,
trade name, copyright and patent infringement, trademark dilution, tortious interference with contract or prospective business
relations, unfair competition, defamation or injury to reputation, or other injuries or damage to business. In addition, the Employer
shall promptly pay in advance of final disposition of any action, suit or proceeding all reasonable expenses incurred by the Employee
in connection with any matter as to which it could reasonably be expected to be entitled to indemnification hereunder. The Employee
hereby undertakes and agrees to repay to the Employer any advances made pursuant to this Section 3.1(e)(iii) if and to the extent
that it shall ultimately be found that the Employee is not entitled to be indemnified by the Company for such amounts. The Agreement
shall not affect any indemnification or other rights and benefits afforded to the Employee by the Employer’s certificate
of incorporation or by-laws. The Employer shall secure an officer’s and director’s liability insurance policy for
the Employee designed to insulate and protect the Employee from personal liability for claims arising against him through the
proper execution of his duties for the Employer.

 

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(iv)   Car
Allowance. During the Term of this Agreement, Company will provide Employee with a car allowance reimbursement of up to
$1,500 per month.

 

 4. TERMINATION

 

(a)  This
Agreement may be terminated by either Party at any time, but if so terminated for any of the reasons below, the
appropriate provisions of subsection (b) of this Section 4 shall apply.

 

(i)
Mutual written agreement between the Employee and the Company at any time;

 

 (ii) Employee’s death;

 

(iii)
Employee’s disability which renders Employee unable to perform the essential functions of his job even with reasonable
accommodation;

 

 (iv) By non-renewal of the existing agreement per section 2.2

 

(v)
For Cause. For Cause shall mean a termination by the Company because of any one of the following events:

 

(A)
Employee’s breach of fiduciary duty to Frankly;

 

(B)
Any wrongful act or omission by Employee which causes material injury to Frankly, including material injury to the business
reputation of the Frankly;

 

 (C) Employee’s fraud;

 

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(D)
Employee’s material misconduct involving objectively demonstrable dishonesty;

 

(E)
Employee’s refusal to abide by the published policies, procedures, and rules of Frankly; or

 

(F)
Employee’s indictment for, conviction of, or entry of a plea of guilty or no contest to, (1) a felony, or (2)
crime involving moral turpitude;

 

(vi)
Employee’s Resignation Without “Good Reason”. “Good Reason”
shall mean:

 

(A)
when any Frankly entity, without Employee’s written consent does one or more of the following: (1) reduces Employee’s
total compensation by more than 10%; (2) changes Employee’s title and level of authority or responsibilities (for avoidance
of doubt, in the case where Frankly remains a separate and independent operating entity, title change is permissible as long as
the position has an equivalent level of authority or responsibility); (3) relocates Employee’s principal workplace by more
than 30 miles from San Francisco, California without mutual agreement; or (4) enters into a Change of Control and thereafter Frankly
(or any successor) fails to provide Employee with employee benefits that are similar to those provided to Employee as of the date
hereof, (B) Employee provides written notice to the Company of any such action within sixty (60) days of the date on which such
action and provides the Company with thirty (30) days to remedy such action (the “Cure Period”); (C) the Company
or applicable Frankly entity fails to remedy such action within the Cure Period; and (D) Employee resigns within ten (10) days
of the expiration of the Cure Period. Good Reason shall not include any insubstantial action that (1) is not taken in bad faith,
and (2) is remedied by the Company or applicable Frankly entity within the Cure Period.

 

 (vii) Employee’s resignation with Good Reason; or

 

(viii)
“Without Cause”. “Without Cause” shall mean any termination of employment by the
Company which is not defined in subsections (i) through

(vi)
above.

 

(b) 
Company’s Post-Termination Obligations

 

(i)
If this Agreement terminates for any of the reasons set forth in Sections 4(a)(v) and 4(a)(vi) above, then the Company will
pay Employee all accrued but unpaid wages, based on Employee’s then current Salary, through the termination date. All
of Employee’s unvested Frankly equity awards shall forfeit.

 

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(ii)
If this Agreement terminates for any of the reasons set forth in Sections 4(a)(vii) or (viii), then the Company will pay
Employee: (A) all accrued but unpaid wages through the termination date, based on Employee’s then current Salary
(B) separation pay equal to eighteen (18) months of Employee’s then current Salary, divided and paid in separate
equal monthly installments over a period of eighteen (18) months, and (C) an amount sufficient to cover the COBRA
premiums necessary for Employee to continue coverage under the Company’s group health plan for the eighteen (18) month
period immediately following Employee’s termination date; provided, that the Employee is then eligible to continue
participation under the Company’s group health plan pursuant to a timely made COBRA election made by Employee to
continue such coverage; provided further, that, the Company shall not be required to make more than the maximum number of
payments allowed under COBRA, (D) (i) In the event this Agreement is terminated Without Cause or for Good Reason:
Pro-rata vesting will apply to all of Employee’s outstanding Frankly equity awards through the end of the 18-month
severance period, provided that any equity awards with performance conditions will be prorated for active employment, with
final payment to be made consistent with the terms of the performance plan and the value to be adjusted for actual
performance, (ii) In the event there is a Change of Control and, within twelve (12) months thereafter, this Agreement is
terminated Without Cause or For Good Reason: Accelerated vesting will apply to all of Employee’s outstanding Frankly
equity awards, provided that performance based awards to vest 100%, although final payout to be made in line with the terms
of the performance plan design; (E) Payments due under subsections 4(b)(ii)(B) and (C) are collectively referred to as
the “Separation Payment”. Each installment of the Separation Payment shall be paid on the first
business day of each month for the applicable number of months specified above, beginning with the first such date that is at
least thirty (30) days after the date of Employee’s termination.

 

(c)
 Compliance with Section 409A

 

(i) General.
It is the intention of both the Company and the Employee that the benefits and rights to which the Employee could be
entitled pursuant to this Agreement comply with Section 409A of the Code and the Treasury Regulations and other guidance
promulgated or issued thereunder (“Section 409A”), to the extent that the requirements of Section 409A are
applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If
the Employee or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not
comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Section 409A (with the most limited possible economic effect on the Employee
and on the Company). Notwithstanding the foregoing, the Company does not make any representation to the Employee that the
payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and the
Company shall have no liability or other obligation to indemnify or hold harmless the Employee or any beneficiary of the
Employee for any tax, additional tax, interest or penalties that the Employee or any beneficiary of the Employee may incur in
the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with
respect thereto, is deemed to violate any of the requirements of Section 409A.

 

    	7

    	 

    

 

(ii) Distributions
on Account of Separation from Service. If and to the extent required to comply with Section 409A, no payment or benefit
required to be paid under this Agreement on account of termination of the Employee’s services hereunder shall be made
unless and until the Employee incurs a “separation from service” within the meaning of Section 409A.

 

 (iii) 6 Month Delay for Specified Employee.

 

(A)
If the Employee is a “specified employee”, then no payment or benefit that is payable on account of the
“separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date
that is six months after the Employee’s “separation from service” (or, if earlier, the date of the
Employee’s death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be
nonqualified deferred compensation) under Section 409A and such deferral is required to comply with the requirements of
Section 409A. Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump
sum at the end of such required delay period in order to catch up to the original payment schedule.

 

(B)
For purposes of this provision, the Employee shall be considered to be a “specified employee” if, at the time of
his separation from service, the Employee is a “key employee”, within the meaning of Section 416(i) of the Code,
of the Company (or any person or entity with whom the Company would be considered a single employer under Section 414(b) or
Section 414(c) of the Code) any stock in which is publicly traded on an established securities market or
otherwise.

 

(iv) No
Acceleration of Payments. Neither the Company nor the Employee, individually or in combination, may accelerate any
payment or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this
Agreement, and no amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid
without violating Section 409A.

 

(v) Treatment
of Each Installment as a Separate Payment and Timing of Payments. For purposes of applying the provisions of Section 409A
to this Agreement, each separately identified amount to which the Employee is entitled under this Agreement shall be treated
as a separate payment. In addition, to the extent permissible under Section 409A, any series of installment payments under
this Agreement shall be treated as a right to a series of separate payments. Whenever a payment under this
Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified
period shall be within the sole discretion of the Company.

 

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 (vi) Taxable Reimbursements and In-Kind Benefits.

 

(A)
Any reimbursements by the Company to the Employee of any eligible expenses under this Agreement that are not excludable from
the Employee’s income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made
by no later than the earlier of the date on which they would be paid under the Company’s normal policies and the last
day of the taxable year of the Employee following the year in which the expense was incurred.

 

(B)
The amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to the Employee, during any
taxable year of the Employee shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in
any other taxable year of the Employee (except for any life-term or other aggregate limitation applicable to medical
expenses).

 

(C)
The right to Taxable Reimbursement, or in-kind benefits, shall not be subject to liquidation or exchange for another
benefit.

 

5.
NON-DISCLOSURE COVENANT; EMPLOYEE INVENTIONS

 

 5.1 ACKNOWLEDGMENTS BY THE EMPLOYEE

 

The
Employee acknowledges that (a) during the Employment Period and as a part of his employment, Employee will be afforded access
to Confidential Information; (b) public disclosure of such Confidential Information could have an adverse effect on Frankly and
its business; (c) because Employee possesses substantial technical and business expertise and skill with respect to Frankly’s
business, Employer desires to obtain exclusive ownership of each Employee Invention, Employee trade secrets, and the Parties agree
that Employer will be at a substantial competitive disadvantage if it fails to acquire exclusive ownership of each Employee Invention;
(d) Employer has required that Employee make the covenants in this Section 5 as a condition of Employee’s employment with
the Company; and (e) the provisions of this Section 5 are reasonable and necessary to prevent the improper use or disclosure of
Confidential Information and to provide Employer with exclusive ownership of all Employee Inventions.

 

 5.2 AGREEMENTS OF THE EMPLOYEE

 

In
consideration of the compensation and benefits to be paid or provided to Employee by Employer under this Agreement, Employee covenants
as follows:

 

(a) Confidentiality

 

(i)
During and following the Employment Period, Employee will hold in confidence all Confidential Information and will not
disclose it to any person except with the specific prior written consent of Frankly or except as otherwise expressly
permitted by the terms of this Agreement.

 

    	9

    	 

    

 

(ii)
Any trade secrets of Frankly will be entitled to all of the protections and benefits under applicable law. If any
information that Frankly deems to be a trade secret is found by a court of competent jurisdiction not to be a trade secret
for purposes of this Agreement, such information will, nevertheless, be considered Confidential Information for purposes of
this Agreement. The Employee hereby waives any requirement that Employer submits proof of the economic value of any trade
secret or posts a bond or other security.

 

(iii)
None of the foregoing obligations and restrictions applies to any part of the Confidential Information that Employee
demonstrates was or became generally available to the public other than as a result of a disclosure by Employee.

 

(iv)
Employee will not remove from Employer’s premises (except to the extent such removal is for purposes of the performance
of Employee’s duties at home or while traveling, or except as otherwise specifically authorized by Employer) any
document, record, notebook, plan, model, component, device, or computer software or code, whether embodied in a disk or in
any other form (collectively, the “Proprietary Items”). Employee recognizes that, as between Frankly and
Employee, all of the Proprietary Items, whether or not developed by Employee, are the exclusive property of Frankly. Upon
termination of this Agreement by either party, or upon the request of Employer during the Employment Period, Employee will
return to Employer all of the Proprietary Items in Employee’s possession or subject to Employee’s control, and
Employee shall not retain any copies, abstracts, sketches, or other physical embodiment of any of the Proprietary
Items.

 

(b) Employee
Inventions. Subject to the provisions of California Labor Code Section 2870, each Employee Invention will belong
exclusively to Employer. The Employee acknowledges that all of Employee’s writing, works of authorship, specially
commissioned works listed in Schedule 5.2(b), and other Employee Inventions are works made for hire and the property of
Employer, including any copyrights, patents, or other intellectual property rights pertaining thereto. If it is determined
that any such works are not works made for hire, Employee hereby assigns to Employer all of Employee’s right, title,
and interest, including all rights of copyright, patent, and other intellectual property rights, to or in such Employee
Inventions. The Employee covenants that he will promptly:

 

(i)
disclose to Employer in writing any Employee Invention;

 

(ii)
assign to Employer or to a party designated by Employer, at Employer’s request and without additional compensation, all
of Employee’s rights to Employee Inventions for the United States and all foreign jurisdictions;

 

(iii)
execute and deliver to Employer such applications, assignments, and other documents as Employer may request in order to apply
for and obtain patents or other registrations with respect to any Employee Invention in the United States and any foreign
jurisdictions;

 

    	10

    	 

    

 

(iv)
sign all other papers necessary to carry out the above obligations;and

 

(v)
give testimony and render any other assistance but without expenset o Employee in support of Employer’s rights to any
Employee Invention.

 

 5.3 DISPUTES OR CONTROVERSIES

 

The
Employee recognizes that should a dispute or controversy arising from or relating to this Agreement be submitted for adjudication
to any court, the preservation of the secrecy of Confidential Information may be jeopardized. All pleadings, documents, testimony,
and records relating to any such adjudication will be maintained in secrecy and will be available for inspection by Employer,
Employee, and their respective attorneys and experts, who will agree, in advance and in writing, to receive and maintain all such
information in secrecy, except as may be limited by them in writing.

 

6.
NON-COMPETITION AND NON-INTERFERENCE

 

 6.1 ACKNOWLEDGMENTS BY THE EMPLOYEE

 

The
Employee acknowledges that: (a) the services to be performed by him under this Agreement are of a special, unique, unusual, extraordinary,
and intellectual in character; (b) Employer competes with other businesses in the digital content management for local broadcaster
space; and (c) the provisions of this Section 6 are reasonable and necessary to protect Employer’s business and will not
result in any undue hardship to Employee.

 

 6.2 COVENANTS OF THE EMPLOYEE

 

In
consideration of the acknowledgments by Employee, and in consideration of the compensation and benefits to be paid or provided
to Employee by Employer, Employee covenants that he will not, directly or indirectly:

 

(a) during
the Employment Period and for a period of two (2) years after termination of the Agreement engage or invest in, own,
manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of, be
employed by, associated with, or in any manner connected with, lend Employee’s name or any similar name to, lend
Employee’s credit to or render services or advice to, any business whose products or activities directly compete in
whole or in material part with the products or activities of Frankly;

 

(b)  whether
for Employee’s own account or for the account of any other person, at any time during the Employment Period and for two
(2) years following termination of the Agreement, solicit business of the same or similar type being carried on by Frankly,
from any person known by Employee to have been a customer, client, prime contractor, subcontractor or strategic partner of
Frankly during the Employment Period, where the Employee had personal contact with such person or entity, or learned of such
person or entity, during and by reason of Employee’s employment with Employer;

 

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(c)   whether
for Employee’s own account or the account of any other person (i) at
any time during the Employment Period and for two (2) years following termination of the Agreement, solicit, employ, or
otherwise engage as an employee, independent contractor, or otherwise, any person who is or was an employee or contractor of
Frankly at any time during the Employment Period or in any manner induce or attempt to induce any employee or contractor of
Frankly to terminate his employment or consultancy with Frankly; or (ii) at any time during the Employment Period and for two2
years following termination of the Agreement, interfere with Frankly’s relationship with any person, including any
person who at any time during the Employment Period was an employee, contractor (prime or sub-), supplier, or customer of
Frankly; or

 

(d)  at
any time during or after the Employment Period, disparage Frankly or any of its shareholders, directors, officers,
employees, or agents. Similarly, at no time during or after the Employment Period will Frankly disparage the
Employee.

 

If
any covenant in this Section 6.2 is held to be unreasonable, arbitrary, or against public policy, such covenant will be considered
to be divisible with respect to scope, time, and geographic area, and such lesser scope, time, or geographic area, or all of them,
as a court of competent jurisdiction may determine to be reasonable, not arbitrary, and not against public policy, will be effective,
binding, and enforceable against Employee.

 

The
period of time applicable to any covenant in this Section 6.2 will be extended by the duration of any violation by Employee of
such covenant.

 

7.
GENERAL PROVISIONS

 

7.1
INJUNCTIVE RELIEF AND ADDITIONAL REMEDY

 

Employee
acknowledges that the injury that would be suffered by Frankly as a result of a breach of the provisions of this Agreement (including
any provision of Sections 5 and 6) would be irreparable and that an award of monetary damages to Frankly for such a breach would
be an inadequate remedy. Consequently, Frankly will have the right, in addition to any other rights it may have, to seek injunctive
relief to restrain any breach or threatened breach or otherwise to specifically enforce any provision of this Agreement, and Frankly
will not be obligated to post bond or other security in seeking such relief. Without limiting Frankly’s rights under
this Section 7 or any other remedies of Frankly, if Employee breaches any of the provisions of Section 5 or 6, Frankly will have
the right to cease making any payments otherwise due to Employee under this Agreement until such breach has been remedied or cured.

 

7.2
COVENANTS OF SECTIONS 5 AND 6 ARE ESSENTIAL AND INDEPENDENT COVENANTS

 

The
covenants by Employee in Sections 5 and 6 are essential elements of this Agreement, and without Employee’s agreement to
comply with such covenants, Employer would not have entered into this Agreement or employed the Employee. Employer and Employee
have independently consulted their respective counsel and have been advised in all respects concerning the reasonableness and
propriety of such covenants, with specific regard to the nature of the business conducted by Employer.

 

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The
Employee’s covenants in Sections 5 and 6 are independent covenants and the existence of any claim by Employee against Employer
under this Agreement or otherwise or against Employer will not excuse Employee’s breach of any covenant in Section 5 or
6.

 

If
Employee’s employment hereunder expires or is terminated, this Agreement will continue in full force and effect as is necessary
or appropriate to enforce the covenants and agreements of Employee in Sections 5 and 6.

 

 7.3 REPRESENTATIONS AND WARRANTIES BY THE EMPLOYEE

 

Employee
represents and warrants to Employer that the execution and delivery by Employee of this Agreement do not, and the performance
by Employee of Employee’s obligations hereunder will not, with or without the giving of notice or the passage of time, or
both: (a) violate any judgment, writ, injunction, or order of any court, arbitrator, or governmental agency applicable to Frankly;
or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement
to which Employee is a party or by which Employee is or may be bound.

 

 7.4 WAIVER

 

The
rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay by
either party in exercising any right, power, or privilege under this Agreement will operate as a waiver of such right, power,
or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise
of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by
applicable law, (a) no claim or right arising out of this Agreement can be discharged by one party, in whole or in part, by a
waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that may be given by a
party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will
be deemed to be a waiver of any obligation of such party or of the right of the party giving such notice or demand to take further
action without notice or demand as provided in this Agreement.

 

 7.5 BINDING EFFECT; DELEGATION OF DUTIES PROHIBITED

 

This
Agreement shall inure to the benefit of, and shall be binding upon (without any further action by Employee required), the parties
hereto and their respective successors, assigns, heirs, and legal representatives, including any entity with which Employer may
merge or consolidate or to which all or substantially all of its assets may be transferred. The duties and covenants of Employee
under this Agreement, being personal, may not be delegated.

 

 7.6 NOTICES

 

All
notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly
given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt),
provided that a copy is mailed by certified or registered mail, return receipt requested, or (c) when received by the addressee,
if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and
facsimile numbers or to such other addresses and facsimile numbers as a party may designate by notice to the other parties.

 

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 7.7 ENTIRE AGREEMENT; AMENDMENTS

 

This
Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral or written, between the Parties hereto. This Agreement may not be amended orally, but only
by an agreement in writing signed by the Parties hereto.

 

 7.8 CHOICE OF LAW; FORUM; LEGAL FEES

 

This
Agreement shall be construed according to the laws of the United States of America and the State of California, without regard
to its conflicts of laws principles. Both Parties hereby expressly consent to the personal jurisdiction of the State and Federal
Courts located in the City of San Francisco in any legal action filed by either party arising from or related to this Agreement.
In any legal action brought by either party to enforce the terms of this Agreement, the prevailing party shall be entitled to
recover from the non-prevailing party the cost of such action, including reasonable attorneys’ fees.

 

 7.9 SECTION HEADINGS; CONSTRUCTION

 

The
headings of Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation.
All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement
unless otherwise specified. All words used in this Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

7.10 SEVERABILITY

 

If
any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in
part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

 7.11 COUNTERPARTS

 

This
Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one and the same agreement.

 

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 7.12 TAXES

 

Anything
in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Employee or
his estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably
determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in
part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholding as required by law,
provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.

 

 7.13 RIGHT TO CONSULT WITH COUNSEL; NO DRAFTING PARTY

 

The
Employee acknowledges having read and considered all of the provisions of this Agreement carefully, and having had the opportunity
to consult with counsel of his own choosing, and, given this, the Employee agrees that the obligations created hereby are not
unreasonable. The Employee acknowledges that he has had an opportunity to negotiate any and all of these provisions and no rule
of construction shall be used that would interpret any provision in favor of or against a party on the basis of who drafted the
Agreement.

 

 7.14 DAMAGES

 

Nothing
contained herein shall be construed to prevent the Company or the Employee from seeking and recovering from the other damages
sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement.

 

 7.15 WAIVER OF JURY TRIAL

 

The
Employee hereby knowingly, voluntarily and intentionally waives any right that the Employee may have to a trial by jury in respect
of any litigation based hereon, or arising out of, under or in connection with this Agreement and any agreement, document or instrument
contemplated to be executed in connection herewith, or any course of conduct, course of dealing statements (whether verbal or
written) or actions of any party hereto.

 

 7.16 NO THIRD PARTY BENEFICIARY

 

Nothing
expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person other than the Company,
the parties hereto and their respective heirs, personal representatives, legal representatives, successors and permitted assigns,
any rights or remedies under or by reason of this Agreement.

 

    	15

    	 

    

 

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

 

	 	FRANKLY
    CO.
	 	 	 
	 	By:	/s/
    Michael Munoz
	 	Name:	Michael
    Munoz
	 	Title:	Controller

 

	 	EMPLOYEE

	 	 
	 	/s/
    Steve Chung
	 	Steve
    Chung

 

    	16

    	 

    

 

SHEDULE
A COMPENSATION TERMS

 

The
following schedule outlines the compensation opportunities for the Employee as defined in Article 3 of the Agreement. This schedule
forms part of the entire Agreement.

 

	Employment
    Agreement Compensation Terms for the CEO 
	 	 
	3.1
    (a) Base Salary	US$360,000
    per year, increasing to $400,000 per year upon the completion of a sale, merger or third-party investment in Frankly Inc.
    in excess of $5 million, subject to adjustments as provided in the Agreement (the “Salary”).
	 	 
	3.1
    (b) Annual Performance Bonus	0%
    of Base Salary in 2017 to account for participation in Employee Retention Plan. Commencing January 1, 2018, Employee will
    be entitled to participate in Frankly’s Annual Performance Bonus plan. The Employee may earn a Performance Bonus at
    Target of 50% of Base Salary to a maximum of 100% of Employee’s Salary, with performance measures to be established
    by Frankly Inc.’s Board of Directors.
	 	 
	3.1
    (c) Employee Retention Plan	Employee
                                         will be entitled to participate in Frankly’s 2017 Employee Retention Program, subject
                                         to Frankly Inc. Board approval.

         

        The
        CEO Target is from 54% of Base Salary to a Maximum of 100% of Base Salary.

         

        The
        Employee Retention Plan (ERP) will be evaluated based on 3 performance categories, including completion of a strategic
        investment or acquisition, business performance and Employee remaining with the company through the completion of the
        strategic review process.

         

        Employee
        will receive the ERP award in Frankly Inc. RSUs valued at $CAD 2.52 each or cash, at Company’s discretion.

	 	 
	3.1
    (d) Employee Incentive Plans	Employee
    eligible to participate in the equity plan (Stock Options, RSUs, PSUs, DSUs).

 

    	17

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