Document:

License and Supply Agreement

 Exhibit 10.18 
  

	 	***	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406. 

  
 LICENSE AND SUPPLY AGREEMENT 
  
 This Agreement dated this 31st day of March, 2003, by and between Cardinal Health P.R. 409 B.V. having its principal offices at Rd 925 Km 6.1, Bo. Junquito, Humacao PR 00791 (hereafter called “Cardinal
Health”), and SkinMedica, Inc. (hereafter called “Purchaser”), having its principal offices at 5909 Sea Lion Place, Suite H, Carlsbad, CA 92008. 
  
 BACKGROUND 
  
 A. Cardinal Health specializes in manufacture, packaging and related services for the pharmaceutical and cosmeceutical industries and has certain
technical and commercial information and know-how relating thereto. 
  
 B. Purchaser is a Delaware corporation engaged in the business of marketing dermatological products. 
  
 C. Purchaser desires to engage Cardinal Health to manufacture and supply certain of Purchaser’s products. 
  
 D. Cardinal Health is the owner of certain proprietary patented packaging
technology commonly referred to as the DelPouch, which can be used in the unit-dose packaging of topical pharmaceutical and cosmeceutical products as well as certain proprietary delivery technology commonly referred to as Microsponge. 
  
 E. Purchaser desires to acquire from Cardinal Health, and Cardinal Health
desires to grant to Purchaser, an exclusive right to purchase certain Products as set forth herein using the aforesaid proprietary patented technologies upon the terms and conditions set forth herein. 
  
 TERMS 
  
 In consideration of the mutual promises made by the parties hereto and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, intending to be legally bound, the parties hereto agree as follows: 
  
 1. DEFINITIONS 
  
 The following terms as used in this Agreement shall have the meanings set forth in this Article unless the context clearly indicates to the contrary:

  
 (a) “Affiliate(s)” with respect to Cardinal
Health, means Cardinal Health 400, Inc. (Sterile); Cardinal Health 402, Inc. (Development); Cardinal Health 403, Inc. (Oral); Cardinal Health 404, Inc. (Oral); Cardinal Health 405, Inc. (Development); Cardinal Health 407, Inc. and its subsidiaries
(Packaging); Cardinal Health 409, Inc. and its subsidiaries (Oral); Cardinal Health P.R. 409 B.V. (Sterile); Cardinal Health 410, Inc. (Sterile); Cardinal Health 411, Inc. (Commercialization); and any other subsidiary of Cardinal Health, Inc. as may
be designated by Cardinal Health, Inc. With respect to Purchaser, “Affiliate” means any corporation, firm, partnership or other entity which controls, is controlled by or is under common control with a party. For purposes of this
definition, “Control” shall mean the ownership of at least fifty percent (50%) of the voting share capital of such entity or any other comparable equity or ownership interest. 

 (b) “Agency” shall mean any governmental regulatory authority involved in regulating any
aspect of the development, Manufacturing, market approval, sale, distribution or use of the Product in the Territory. 
  
 (c) “Benzoyl Peroxide Products” shall mean collectively the trade and sample products to be Manufactured under this Agreement in three
(3) concentrations of benzoyl peroxide packaged both in a tube and DelPouch as requested by Purchaser in accordance with the terms and conditions of this Agreement, as described more completely on Attachment 2.  
  
 (d) “Calendar Quarter” shall mean each three (3) month
calendar period ending on the last day of March, June, September, or December of a given year. 
  
 (e) “Cardinal Health Materials” means all Cardinal Health Confidential Information, the Cardinal Health Patents, other intellectual property and developments (including all know-how, inventions,
designs, concepts, improvements, technical information, manuals, instructions or specifications), owned, licensed or used by Cardinal Health for drug delivery, or in developing or Manufacturing of Products and the packaging equipment, processes or
methods of Manufacturing, or any improvements to any of the foregoing, including any container, pouch, vial, ampoule or other form of container developed by Cardinal Health. 
  
 (f) “Cardinal Health Patent(s)” means the Patent(s) set forth in Attachment 1. 
  
 (g) “Certificate of Analysis” means a summary of the quality
control testing, as described in the Specifications, performed by the Cardinal Health for Products supplied under this Agreement. 
  
 (h) “cGMP” means current Good Manufacturing Practices of the U.S. Food and Drug Administration, as may be amended from time to time.

  
 (i) “Contract Year” means each twelve (12)
month period during the Term which begins on the Effective Date or anniversary of the Effective Date. 
  
 (j) “Delivery Date” shall mean the date set forth in the relevant Purchase Order on which Cardinal Health must supply Purchaser with
Products pursuant to Section 6(c). 
  
 (k)
“DelPouch” means certain proprietary patented packaging technology owned by Cardinal Health and described in U.S. Patent No. 6,007,264. 
  
 (l) “Effective Date” shall mean the date set forth on page 1 of this Agreement. 
  
 (m) “EpiQuin Product” shall mean the trade and sample
products to be Manufactured under this Agreement containing EpiQuin and packaged in a DelPouch in accordance with the terms and conditions of this Agreement, as described more completely on Attachment 2. 
  
 (n) “Facility” shall mean Cardinal Health’s facility at
Road 925 Km. 6.1 Bo. Junquito, Humacao, PR 00791 or facility at State Road #3 Km. 82.2 Humacao, P.R. 00791 or such other facility as agreed by the parties. 
  

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 (o) “Force Majeure” shall mean any of the following events or conditions, provided that
such event or condition did not exist as of the date of execution of this Agreement, was not reasonably foreseeable as of such date and is not reasonably within the control of either party and prevents as a whole or in material part, the performance
by a party of its obligations hereunder: acts of state, governmental or regulatory action, orders, legislation, regulations, restrictions, priorities or rationing, riots, disturbance, war (declared or undeclared), terrorism, strikes, lockouts,
slowdowns, prolonged shortage of energy supplies, interruption of transportation, embargo (inability to procure or shortage of supply materials, equipment or production facilities), delay of subcontractors or vendors, acts of God, fire, earthquake,
flood, hurricane, typhoon, explosion and accident. 
  
 (p)
“Manufacture/Manufactured/Manufacturing” shall mean the compounding, filling, packaging and testing of the Products as provided in this Agreement, the Development Plan (as defined in Section 2, below), applicable master batch
records and the Specifications, including the development, scale-up, validation, stability, formulation, finished product testing. 
  
 (q) “Microsponge” means certain proprietary patented technology owned or licensed by Cardinal Health and described in U.S. Patent Nos.
5,145,675 and 4,690,825. 
  
 (r) “Patent(s)”
shall mean (i) valid United States patents, reexaminations, reissues, renewals, extensions, term restorations, divisionals, continuations and continuations in part thereof, and foreign counterparts thereof, and (ii) pending applications for the
United States and foreign patents and foreign counterparts thereof. “Patent” also includes a Supplementary Certificate of Protection of a member state of the European Community and any other similar protective rights in any other
country. 
  
 (s) “Product(s)” shall mean each of
or any of the products set forth on Attachment 2 Manufactured pursuant to this Agreement and the Specifications which (i) in the absence of this Agreement, the use, sale or distribution of which would result in the infringement of one or more claims
in the Cardinal Health Patents; or (ii) utilize Cardinal Health Materials. 
  
 (t) “Purchase Order” shall mean a written document issued by Purchaser to Cardinal Health in accordance with Section 6(c) hereof, authorizing Cardinal Health’s performance of Manufacturing
and other related services pursuant to the terms of this Agreement. 
  
 (u) “Purchaser’s Materials” shall mean all Purchaser Confidential Information, intellectual property and developments owned, developed or provided by Purchaser, including, without limitation, Patents, patent
applications, know-how, inventions, designs, concepts, improvements, technical information, trademarks or trade names relating to such materials. 
  
 (v) “Raw Materials” means all raw materials, supplies, components and packaging necessary to manufacture the Product in accordance with
the Specifications. 
  
 (w) “Scope of
Work” shall mean the responsibilities of Cardinal Health and Purchaser as set forth in Attachment 4. 
  
 (x) “Specifications” shall mean the specifications and quality control testing for each Product mutually agreed upon by the parties
promptly after the completion of the formulation work in the Development Phase (as defined in Section 5(a)) for such Product. The Specifications may be amended or modified only upon the written agreement of both parties. 
  

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 (y) “Territory” shall mean the United States, its territories, commonwealths and
possessions. 
  
 (z) “Tube Agreement” shall mean
the Manufacturing and Supply Agreement between Enhanced Derm Technologies, Inc. and SkinMedica dated June 15, 2002. 
  
 2. DEVELOPMENT, SUPPLY, AND GRANT OF LICENSE 
  
 (a) Development Plan. Within *** following the execution of this Agreement, the parties shall execute a development plan for each Product
(“Development Plan”). The Development Plan shall set forth the responsibilities of the parties covering the activities and timing for the formulation and process development studies, package development and filling studies, pilot
scale compounding and filling studies, pre-validation compounding and filling studies, and validation and stability testing to support (i) transfer of the finalized EpiQuin formulation to Puerto Rico, (ii) transfer of the finalized Benzoyl Peroxide
formulation to Puerto Rico, and (iii) finalization of the DelPouch packaging. In the event of a conflict between the terms of this Agreement and the Development Plan, this Agreement shall control. 
  
 (b) *** The parties agree that they will meet within *** following the
execution of this Agreement to *** of *** to be *** under this Agreement. 
  
 (c) Supply. Cardinal Health shall supply, and Purchaser shall purchase and pay for the Products, subject to the terms and conditions of this Agreement, including the Scope of Work. Subject to the terms of
Section 5(d), Cardinal Health agrees that Purchaser shall have the following exclusive purchase rights during the Term of the Agreement: 
  
 (i) Purchaser shall have the exclusive right to purchase from Cardinal Health the EpiQuin Product (or any other product that contains hydroquinone as an
active ingredient) in the DelPouch, but solely for use in the field of pigmentation disorders in the Territory, and solely to the extent they are available by prescription, but not including any such product in a DelPouch that is sold to a consumer
without a prescription; and 
  
 (ii) Purchaser shall have the
exclusive right to purchase from Cardinal Health the Benzoyl Peroxide Products (or any other product that contains benzoyl peroxide as the sole active ingredient) in the DelPouch for use in the Territory to the extent they are available by
prescription, but not including any benzoyl peroxide product in a DelPouch that is sold to a consumer without a prescription. 
  
 (iii) Purchaser shall have the exclusive right to purchase from Cardinal Health the Benzoyl Peroxide Products as formulated with Microsponge in a tube for
use in the Territory to the extent they are available by prescription, but not including any benzoyl peroxide product in a DelPouch that is sold to a consumer without a prescription, provided, however, that Cardinal Health shall be entitled to
continue supplying two current customers (and their successors or assigns) of Cardinal 
  

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Health affiliates, who are currently purchasing benzoyl peroxide Microsponge entrapment from Cardinal Health affiliates. Cardinal Health and its Affiliates
agree not to supply benzoyl peroxide Microsponge entrapment, where benzoyl peroxide is the sole active ingredient, or the Microsponge to any third party (“Third Party Purchaser”) other than the two current customers unless the Third Party
Purchaser agrees in writing not to market, use, or distribute such material, or supply it to others to market, use, or distribute in a prescription product in the Territory where benzoyl peroxide is the sole active ingredient. 
  
 For purposes of clarity, Cardinal Health agrees that Cardinal Health and its
Affiliates shall not supply the Products, directly or indirectly, to any third party, including to its Affiliates, except (i) as set forth in subsection 2(c)(iii), or (ii) to the extent such Products are sold outside of the Territory, or (iii) to
the extent such Products are available without a prescription, or (iv) in the case of the Benzoyl Peroxide Products, to the extent such Products contain another active ingredient in addition to benzoyl peroxide, or (v) in the case of the EpiQuin
Products, to the extent such Products have an indication outside the field of treatment of pigmentation disorders. 
  
 (d) To the extent not prohibited by law, Purchaser shall not sell or distribute any Product to customers outside of the Territory or to any party whom
Purchaser knows, or has reason to believe, may export a Product outside the Territory. Purchaser shall obtain a representation and warranty from third party customers purchasing the Product from SkinMedica that such customers shall use, sell or
distribute the Products solely in the Territory. Purchaser shall take all reasonable actions within its legal rights and powers to cause such third parties to cease such exportation. 
  
 (g) Purchaser shall promote, market, and sell the Products only for use in the Territory. Purchaser shall use commercially
reasonable efforts and make reasonable expenditures to market and promote sales of the Products for use in the Territory. Purchaser’s good faith efforts and expenditures will be at least comparable to Purchaser’s efforts and expenditures
for other Purchaser products. Purchaser shall maintain a qualified sales organization sufficient to cover the Territory as accepted by industry standards, and Purchaser shall ensure that it gives proper coverage to the Products throughout the
Territory on a regular basis. During the term of this Agreement, Purchaser shall not, without Cardinal Health’s prior written consent, directly or indirectly, manufacture, promote or sell any product containing benzoyl peroxide or EpiQuin in
the concentrations identified in Attachment 2 other than those Products to be manufactured under this Agreement and the Tube Agreement. 
  
 (h) Trademark. 
  

	 	(i)	During the term of this Agreement, Cardinal Health grants to Purchaser a non-exclusive, royalty free license (without a right to sublicense) for the use of the trademarks identified
in Attachment 3 attached hereto (each, a “Trademark”) in connection with the Products and Purchaser agrees that the Trademark shall appear on the Products in a manner as generally depicted in Attachment 3 and subject to review and
approval by Cardinal Health. The Trademarks shall be used only in connection with, and subject to, the terms of this Agreement and only on the Products. Purchaser is further authorized to use, in connection with the foregoing, the Trademarks in
Product related marketing material including the use of the Trademarks in publicity, advertising, signs, product brochures, cartons and other forms of advertising (“Marketing Material”) subject to the terms and conditions of this
Agreement. 

  

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	 	(ii)	Purchaser acknowledges the ownership of the Trademarks by Cardinal Health, agrees that it will do nothing inconsistent with such ownership, and agrees that all use of the Trademarks
by Purchaser and all good will developed from such use shall inure to the benefit of and be on behalf of Cardinal Health. Purchaser agrees to maintain the integrity of the Trademarks, use the Trademarks in accordance with good customary trademark
practice, and avoid taking any action that would in any manner impair or detract from the value of the Trademarks or the goodwill and reputation of Cardinal Health. Purchaser shall not use the Trademarks other than as strictly provided for herein.

  

	 	(iii)	Purchaser shall cooperate with Cardinal Health in facilitating Cardinal Health’s control of the use of the Trademarks, including complying with the conditions set forth from
time-to-time by Cardinal Health with respect to the style, appearance and manner of use of the Trademarks. Purchaser shall, if requested by Cardinal Health, place a notice on the Products and/or Marketing Material to identify the licensed use and
the proprietary rights of Cardinal Health. Purchaser shall, prior to any application of a Trademark to any Product or use in Marketing Material, provide to Cardinal Health a sample of such proposed use for review and written approval. The proposed
use of a Trademark shall be deemed approved unless Cardinal Health provides Purchaser with a written objection to the proposed use within seven (7) days of receipt of the sample. Marketing Material review and approval may include, without
limitation, content, style, appearance, composition, timing and media. 

  

	 	(iv)	The trademark license shall terminate concurrently with the exclusive rights to purchase Product as set forth in Section 2 of this Agreement. 

  
 3. RAW MATERIALS AND ARTWORK 
  
 (a) Raw Material. Cardinal Health shall be responsible for procuring,
inspecting and releasing adequate Raw Materials to Manufacture the Products. If Customer insists on a specific supplier to be used for a Raw Material, Customer shall be responsible for the timeliness of supply, quantity of supply and quality of
supply of such Raw Materials. If Cardinal Health provides reasonable documentation indicating that the cost of any such Raw Material is greater than Cardinal Health’s costs for such Raw Material of equal quality from other vendors, Cardinal
Health shall add the difference between Cardinal Health’s cost of the Raw Material and Customer’s mandated supplier’s cost to the Price of the Product. Customer will be responsible for all direct costs associated with qualification of
a new supplier of a Raw Material not previously qualified by Cardinal Health. 
  
 (b) Artwork. Purchaser shall provide approved specifications for labeling and packaging and approved artwork, trade dress, advertising and packaging information (collectively “Artwork”) to be
used by Cardinal Health to Manufacture the Product or approve such items in writing prior to procurement of Raw Materials. Artwork shall be considered a part of the Specifications. 
  

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 (c) Reimbursement for Materials. Cardinal Health shall use reasonable commercial efforts to
maintain appropriate quantity of Raw Materials to meet the Firm Commitment. In the event of (i) a Specification change for any reason; or (ii) expiration or termination of this Agreement for any reason, Customer shall bear the cost of any unused Raw
Materials. 
  
 4. SHIPPING AND PAYMENT 
  
 (a) Shipping. Subject to the following provisions, all Product will
be delivered F.O.B. the Facility. The common carrier shall be selected by Purchaser and title and risk of loss of the Product shall pass to Purchaser upon delivery by Cardinal Health. Purchaser shall insure the Product in transit. 
  
 (b) Payment. Cardinal Health shall invoice Purchaser ***; provided,
however, that if Purchaser requests that Cardinal Health delay delivery beyond the delivery date specified in Purchaser’s Purchase Order, Cardinal Health shall invoice Purchaser on ***. Purchaser shall make full payment of each invoice to
Cardinal Health, at the address specified on the invoice, no later than *** from the date of receipt of such invoice. If Purchaser has not made payment in full by the expiration of such *** period, Cardinal Health may, at its option elect to: (i)
charge a late payment fee on such unpaid amount equal to *** per month of such unpaid amount; or (ii) suspend any further deliveries hereunder until such invoice is paid in full. 
  
 (c) Bill and Hold. If Purchaser fails to take delivery on any scheduled Delivery Date, Purchaser shall be invoiced on
the first day of each month for reasonable administration and storage costs. For each such lot of undelivered Product, Purchaser agrees that: (i) Purchaser has made a fixed commitment to purchase such Product, (ii) risk of ownership for such Product
passes to Purchaser, (iii) such Product shall be on a bill and hold basis for legitimate business purposes, (iv) if no delivery date is determined at the time of billing, Cardinal Health shall have the right to ship the Product to Purchaser within
four months after billing, and (v) Purchaser will be responsible for any decrease in market value of such Product that relates to factors and circumstances outside of Cardinal Health’s control. Within *** following a written request from
Cardinal Health, Purchaser shall provide Cardinal Health with a letter confirming items (i) through (v) of this Section for each batch of undelivered Product. 
  

(d) Advance Payment. If at any time, in Cardinal Health’s reasonable determination, Purchaser’s credit is materially impaired,
Cardinal Health shall have the right to require payment in advance before making any further shipment of the Product. If Purchaser shall fail, within a reasonable time, to make such payment in advance, or if Purchaser shall fail to make payment when
due, Cardinal Health shall have the right, at its option, to suspend any further deliveries hereunder until such default is corrected, without thereby releasing Purchaser from its obligations under this Agreement. 
  

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 5. DEVELOPMENT FEES, PRICING, AND MINIMUM VOLUMES 
  
 (a) Development Fees. Purchaser has previously paid Cardinal Health
the development fee for the EpiQuin Products under the Tube Agreement. Purchaser shall pay Cardinal Health a prototype development fee of *** for the Benzoyl Peroxide Products upon execution of this Agreement. Purchaser shall pay *** of the
prototype development fee for Benzoyl Peroxide Products on the Effective Date and the remaining *** upon completion of the development of three prototype formulations for the Benzoyl Peroxide Products. Cardinal Health agrees to use commercially
reasonable efforts to complete development of the three prototype formulations by June 30, 2003. 
  
 (b) Product Price. Purchaser shall pay to Cardinal Health the price for Manufacturing and supplying the Product, as set forth in Attachment 5
attached hereto (“Price”). Any tax (other than Cardinal Health’s income or franchise taxes), however denominated and measured, imposed upon the Product or upon its Manufacture, production, packaging, storage, inventory, sale,
distribution, transportation, delivery, use or consumption shall be paid by Purchaser. 
  
 (c) Price Adjustments. The Price is subject to adjustment *** per Contract Year, effective on each anniversary date of this Agreement, upon *** written notice from Cardinal Health to Purchaser in an amount up
to ***. In addition to the foregoing, Cardinal Health shall be entitled to pass through the actual amount of all price increases for Raw Materials beyond the *** that are reasonably documented by Cardinal Health to Purchaser. Upon request, Cardinal
Health shall provide reasonable supporting documentation for such increases. 
  
 (d) Minimum Requirement. 
  
 (i) Purchaser shall purchase the minimum volume of *** units of EpiQuin Product (“Minimum EpiQuin Requirement”) during each twelve (12) month period, the first of which shall begin upon first acceptance of a shipment of an
EpiQuin Product by Purchaser. A unit is a single DelPouch sample or single use trade size. One (1) trade size tube equals sixty (60) units of EpiQuin Product. The parties further agree that Purchaser’s purchase of EpiQuin Products from Enhanced
Derm Technologies, Inc. (“EDT”) under the Tube Agreement shall count towards the Minimum EpiQuin Requirement. If Purchaser does not submit purchase orders to Cardinal Health with delivery dates sufficient to meet such Minimum
EpiQuin Requirement during each applicable *** period, at least *** prior to end of such *** period, Cardinal Health shall provide Purchaser a written notice of its failure to satisfy the Minimum EpiQuin Requirement. If Purchaser does not respond to
such written notice within *** and ***, Cardinal Health may convert the exclusive purchase rights granted by Cardinal Health to Purchaser for the EpiQuin Products under Section 2(c)(i) to non-exclusive purchase rights for the EpiQuin Products.
 
  
 (ii) Purchaser shall purchase the minimum
volume of *** units of the Benzoyl Peroxide Products in DelPouch (“Minimum BPO DelPouch Requirement”) and 
  

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*** of Benzoyl Peroxide Products (“Minimum BPO Tube Requirement”) during each *** period, the first *** period to begin upon first
acceptance of a shipment of a Benzoyl Peroxide Product by Purchaser. A unit is a single DelPouch sample or single use trade size. If Purchaser does not submit purchase orders to Cardinal Health with delivery dates sufficient to purchase the Minimum
BPO DelPouch Requirement or the Minimum BPO Tube Requirement during each applicable *** period, at least *** prior to end of such *** period, Cardinal Health shall provide Purchaser a written notice of its failure to satisfy such requirements and
the parties shall have the following options: 
  
 (a) If (i)
Purchaser submits purchase orders to Cardinal Health with delivery dates sufficient to purchase *** units of Benzoyl Peroxide Products in DelPouch, and (ii) Purchaser does not pay to Cardinal Health the difference between the total amount Purchaser
would have paid to Cardinal Health if Purchaser had purchased *** units of Benzoyl Peroxide Product in DelPouch and the sum of all purchases of Benzoyl Peroxide Product in DelPouch from Cardinal Health during such *** period, then Cardinal Health
may convert the exclusive purchase rights granted by Cardinal Health to Purchaser for the Benzoyl Peroxide Products under Section 2(c)(ii) to non-exclusive purchase rights for the Benzoyl Peroxide Products. 
  
 (b) If (i) Purchaser submits purchase orders to Cardinal Health with
delivery dates sufficient to purchase less than *** of Benzoyl Peroxide Products in DelPouch, and (ii) Purchaser does not pay to Cardinal Health the difference between the total amount Purchaser would have paid to Cardinal Health if Purchaser had
purchased *** units of Benzoyl Peroxide Product in DelPouch and the sum of all purchases of Benzoyl Peroxide Product in DelPouch from Cardinal Health during such *** period, then Cardinal Health shall have the right to terminate the exclusive
purchase rights in Section 2(c)(ii) and terminate its supply to Purchaser of the Benzoyl Peroxide Products in a DelPouch. 
  
 (c) If (i) Purchaser submits purchase orders to Cardinal Health with delivery dates sufficient to purchase *** units of Benzoyl Peroxide Products in a
tube, and (ii) Purchaser does not pay to Cardinal Health the difference between the total amount Purchaser would have paid to Cardinal Health if Purchaser had purchased *** units of Benzoyl Peroxide Product in a tube and the sum of all purchases of
Benzoyl Peroxide Product in a tube from Cardinal Health during such *** period, then Cardinal Health may convert the exclusive purchase rights granted by Cardinal Health to Purchaser for the Benzoyl Peroxide Products in a tube under Section
2(c)(iii) to non-exclusive purchase rights for the Benzoyl Peroxide Products. 
  
 6. FORECAST, PURCHASE AND SUPPLY 
  
 (a)
Purchase and Supply. During the Term of this Agreement and subject to subsection (d) of this Section 6, Purchaser shall purchase and Cardinal Health shall supply such quantities of Product as shall be set forth on Purchase Orders issued by
Purchaser to Cardinal Health under this Agreement. Cardinal Health agrees to use commercially reasonable efforts to accept all Purchase Orders submitted by Purchaser for the purchase of the Products. 
  
 (b) Forecasts. Within ten (10) days after the Effective Date, and
thereafter on the first day of each calendar month during the term of this Agreement, Purchaser will provide Cardinal Health with a written twelve (12) month rolling forecast (commencing with the 
  

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immediately following month) of the quantity of Product which Purchaser expects to require from Cardinal Health during each of the next twelve (12) months
(“Forecast”). The first *** of the rolling Forecast shall be firm and binding upon Purchaser (“Firm Commitment”). Further, with regards to the next *** of the rolling Forecast, Purchaser agrees to submit
Purchase Orders for at least *** of such rolling Forecast, and Cardinal Health agrees to accept all Purchase Orders up to *** of such rolling Forecast. Cardinal Health shall use commercially reasonable efforts to accept all Purchase Orders submitted
by Purchaser in excess of the *** of such rolling Forecast. The following *** of the rolling Forecast shall constitute non-binding good faith estimates. Purchaser’s Forecast shall include (i) the required Delivery Date for the binding portion
of the Forecast, (ii) the quantity of Product to be delivered and (iii) the lot numbers to be applied to such Product. 
  
 (c) Purchase Order. Purchaser shall submit Purchase Orders for the Firm Commitment portion of the Forecast at least *** prior to the requested
Delivery Date. Within *** of receipt of a Purchase Order, Cardinal Health shall notify Purchaser in writing whether Cardinal Health has accepted such Delivery Dates or if not, shall, specify alternate Delivery Dates. Cardinal Health shall make
reasonable commercial efforts to accept the requested Delivery Date. 
  
 (d) Orders Greater than Forecast. Cardinal Health shall use its commercially reasonable efforts within its existing capacity to supply the quantity of Product ordered as set forth on the relevant Purchase Order, regardless of the
quantity forecast by Purchaser subject to the capacity limitations of Cardinal Health’s Manufacturing equipment and the Facility. 
  
 (e) Amendment of Purchase Orders. Cardinal Health will use commercially reasonable efforts to accommodate a request by Purchaser to amend a
Purchase Order to increase or decrease the quantity of Product to be delivered, provided, however, that the foregoing shall not affect or diminish Purchaser’s liability under the Firm Commitment portion of the Forecast or the Minimum
Requirement. In the event such amendment causes an increase in Cardinal Health’s cost to perform the Manufacturing, the Price shall be increased to reflect such increased cost. Cardinal Health shall notify Purchaser of such cost increase
promptly after Cardinal Health’s receipt from Purchaser of the amended Purchase Order, and the increase in such prices shall be effective for the first lot of Product Manufactured after the implementation date of such amendment. 
  
 (f) Terms of Agreement Govern. No modification or amendment to this
Agreement shall be effected by or result from the receipt, acceptance, signing or acknowledgement of any party’s purchase orders, Cardinal Health quotations, invoices, shipping documents or other business forms containing terms or conditions in
addition to or different from the terms and conditions set forth in this Agreement, and the terms of this Agreement shall supersede any provision in any Purchase Order, Specification or other document that is in addition to or inconsistent with the
terms of this Agreement. 
  

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 7. SPECIFICATION CHANGES 
  
 The Product Specifications and the manufacturing process agreed to by the parties shall not be supplemented, modified or
amended in any respect without the prior written agreement of the Parties. If either party requests a change to the Product Specifications, including the Manufacturing process, and the other party agrees with such change, the parties shall agree in
writing to the exact changes, as well as any change in Price associated with such change. 
  
 8. COMPLIANCE WITH AGENCY REGULATIONS 
  
 The parties agree to comply in all material respects with all laws and regulations of any Agency. Cardinal Health has and shall maintain all necessary or required registrations, permits, licenses and authorizations to
Manufacture the Products at the Facility. Purchaser shall obtain and maintain all registrations, permits, licenses and authorizations from all Agencies necessary or required for the sale, distribution, shipping, marketing, use or entering into
commerce of any Product. Further, to the extent Purchaser must obtain any permits or licenses necessary to Manufacture the Products at the Facility, Purchaser shall obtain and maintain all such registrations, permits, licenses and authorizations and
Cardinal Health agrees to provide Purchaser all reasonable assistance required to obtain or maintain such registrations, permits, licenses, and authorizations. 
  

9. FACILITY 
  
 (a) Manufacturing/Manufacturing. Cardinal Health hereby agrees to perform the Manufacturing at its Facility and shall not subcontract any portion
of the Manufacture to any other location without the prior written consent of Purchaser. 
  
 (b) Compliance with Laws. Cardinal Health will comply, in all respects, with all local applicable laws, rules and regulations relating to the services to be provided by Cardinal Health under this Agreement.
Cardinal Health shall also be responsible for adopting and enforcing safety procedures for the handling and Manufacture of the Product at the Facility and the proper handling and disposal of any waste relating to the Product. 
  
 (c) Agency Inspection and Communications. Cardinal Health hereby
agrees to advise Purchaser promptly of (i) any proposed or unannounced inspection of the Product or Manufacturing process or procedures by any Agency and will, to the extent practicable, permit Purchaser to be present during any such inspection, and
(ii) any other communication it receives from an Agency relating to any of the Products. If Purchaser is not present during such an inspection, Cardinal Health shall promptly provide a report of the results of the inspection to Purchaser.

  
 (d) Purchaser Technical Representative. During the term
of this Agreement, Purchaser shall have the right to have one or more technical representatives present in the area of the Facility where the Manufacturing is being conducted (or at another mutually agreeable time) to (i) review the Manufacturing;
(ii) review any relevant records in connection with such Manufacturing and assess its compliance with cGMP and the Specifications; and (iii) discuss any related issues with Cardinal Health’s management personnel. Purchaser’s technical
representatives, when on-site (including during any inspection conducted pursuant to Section 9(c)), shall comply with Cardinal Health’s rules and regulations. Purchaser shall indemnify and hold Cardinal Health and its Affiliates harmless from
all liability, including claims for workers’ compensation, resulting from the presence of Purchaser’s technical representatives at the Facility. 
  

 -11- 

 (e) Audit. Purchaser shall have the right during normal business hours, and upon at least ***
written notice to Cardinal Health, to inspect and audit in a reasonable manner those portions of the Facility in which Manufacturing is conducted in order to ensure Cardinal Health’s compliance with its obligations under this Agreement.
Purchaser and its authorized representatives will have the right to conduct *** quality compliance audit. Additional audits shall only be permitted upon agreement of both parties. 
  
 (f) Product Information. Purchaser, at its expense, shall furnish Cardinal Health with all available health, safety
and environmental information in its possession necessary for the Manufacture of the Product by Cardinal Health hereunder, including without limitation, material safety data sheets. 
  
 10. QUALITY OF MANUFACTURING 
  
 (a) Sampling and Testing of Products. Cardinal Health is responsible for all sampling and testing of the Products to assure that the Products are
in conformity in all respects with the Specifications. Prior to each shipment of Product, Cardinal Health shall provide Purchaser a Certificate of Analysis in customary form attesting to the quality of each batch contained within the shipment,
including review and approval by the appropriate quality unit of all batch production and control records. Purchaser, upon receipt of Products from Cardinal Health, shall have *** to inspect such Products. Any Product that is not rejected by
Purchaser within *** of receipt of the Products from Cardinal Health shall be deemed to have been accepted by Purchaser. In the event Purchaser believes that the Products do not conform in all material respects to the Specifications, Purchaser shall
send to Cardinal Health, via overnight delivery service or certified mail, return receipt requested, within *** of discovery of the defect, a notice of rejection along with samples of the rejected Products. Products that Cardinal Health agrees are
defective or non-conforming will be replaced by Cardinal Health in accordance with Section 10(b). If Cardinal Health does not agree with Purchaser’s determination that the Products fail to meet the Specifications in all material respects, the
rejected Products shall be submitted to a mutually acceptable third party testing laboratory, which shall determine whether such Products conform in all material respects to the Specifications. The parties agree that such testing laboratory’s
determination shall be final and the costs of such testing will be paid by the non-prevailing party. 
  
 (b) Replacement of Defective Products. Subject to subsection (a), Cardinal Health shall replace, at its sole expense, all Product that does not
conform to the Specifications with conforming Product. THE OBLIGATION OF CARDINAL HEALTH TO REPLACE DEFECTIVE PRODUCT AS PROVIDED IN THIS SECTION 10 SHALL BE PURCHASER’S EXCLUSIVE REMEDY UNDER THIS AGREEMENT AND IS IN LIEU OF ANY OTHER
WARRANTY, EXPRESS OR IMPLIED. 
  
 (c) Recalls. In the event
Cardinal Health believes a recall, field alert, Product withdrawal or field correction may be necessary for any Product provided under this Agreement, Cardinal Health shall immediately notify Customer in writing. Cardinal Health will not act to
initiate a recall, field alert, Product withdrawal or field correction without the express prior written approval of Customer, unless otherwise required by Applicable Laws. In the event Customer believes a recall, field alert, Product withdrawal or
field correction may be necessary for any 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -12- 

 
Product provided under this Agreement, Customer shall immediately notify Cardinal Health in writing and Cardinal Health shall provide all necessary
cooperation and assistance to Customer. The cost of any recall, field alert, Product withdrawal or field correction shall be borne by Cardinal Health solely to the extent such recall, field alert, or Product withdrawal or field correction is a
result of Cardinal Health’s breach of its obligations under this Agreement or Applicable Laws or its negligence or willful misconduct; otherwise, Purchaser shall bear the cost of such recall, field alert, Product withdrawal or field correction.
For purposes hereof, such cost shall be limited to reasonable, actual and documented administrative costs incurred by Customer for such recall, withdrawal or correction. Defective Product shall be replaced in accordance with the terms and conditions
set forth in Section 10(b). 
  
 (d) Quality Agreement.
Within three (3) months following the execution of this Agreement, the parties shall execute a quality agreement (“Quality Agreement”). The Quality Agreement shall in no way determine liability or financial responsibility of the
parties for the responsibilities set forth therein. In the event of a conflict between the terms of this Agreement and the Quality Agreement, this Agreement shall control. 
  
 11. MANUFACTURING REPRESENTATIONS AND WARRANTIES 
  
 Cardinal Health represents and warrants that, at the time of delivery, (i) the Products supplied to Purchaser and the
Manufacturing provided hereunder shall comply in all respects with the Specifications, cGMPs, and applicable laws, rules and regulations within each Territory, (ii) the Product shall not be adulterated or misbranded within the meaning of the Food
Drug and Cosmetic Act (“Act”) or be an article which may not, under the provisions of Sections 404 and 405 of the Act be introduced into interstate commerce, (iii) the Products are labeled and packaged in accordance with
Purchaser’s Specifications for labeling and packaging, (iv) the Products shall have a *** from the date of manufacture, and ***. THE WARRANTY SET FORTH IN THIS SECTION 11 IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY
WARRANTY OF MERCHANTABILITY AND ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR THE WARRANTIES EXPRESSED IN THIS SECTION 11, CARDINAL HEALTH MAKES NO OTHER WARRANTY, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE MANUFACTURE OF THE
PRODUCTS. 
  
 12. GENERAL REPRESENTATIONS AND WARRANTIES 

 
 (a) Existence and Power. Each Party hereby represents and warrants
to the other Party that such Party (i) is duly organized, validly existing and in good standing under the laws of the state in which it is organized, (ii) has the power and authority and the legal right to own and operate its property and assets,
and to carry on its business as it is now being conducted, and (iii) is in compliance with all requirements of applicable law, except to the extent that any noncompliance would not materially adversely affect such party’s ability to perform its
obligations under the Agreement. 
  
 (b) Authorization and
Enforcement of Obligations. Each Party hereby represents and warrants to the other Party that such Party (i) has the power and authority and the legal right to enter into the Agreement and to perform its obligations hereunder and (ii) has taken
all necessary action on its part to authorize the execution and delivery of the Agreement and the performance of its obligations hereunder. The Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid,
binding obligation, enforceable against such Party in accordance with its terms. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -13- 

 (c) No Consents. Each Party hereby represents and warrants to the other Party that all necessary
consents, approvals and authorizations of all Agencies and other persons required to be obtained by such Party in connection with the Agreement have been obtained. 
  
 (d) No Conflict. Each Party hereby represents and warrants to the other Party that the execution and delivery of the
Agreement and the performance of such party’s obligations hereunder and thereunder (i) do not conflict with or violate any requirement of applicable laws or regulations or any material contractual obligation of such Party and (ii) do not
materially conflict with, or constitute a material default or require any consent under, any material contractual obligation of such Party. 
  
 (e) Legal Authority For Sale of Product. Purchaser has (or will have, prior to delivery to Purchaser) obtained all permits, licenses or
authorizations from any applicable Agency necessary or required for the sale, marketing or entering into commerce of any Product. 
  
 (f) Ownership of Intellectual Property. Cardinal Health represents and warrants that it owns all rights, title, and interest in the Cardinal Health
Patents and related know-how and the Cardinal Health Materials, free of any liens and encumbrances. 
  
 13. INTELLECTUAL PROPERTY 
  
 (a) Ownership of Intellectual Property. 
  

	 	(i)	All Cardinal Health Materials, including without limitation, all improvements, developments, derivatives or modifications to the Cardinal Health Materials shall be owned exclusively
by Cardinal Health. 

  

	 	(ii)	All Purchaser Materials, including, without limitation, all improvements, developments, derivatives or modifications to the Purchaser Materials and Purchaser Confidential
Information shall be owned exclusively by Purchaser. 

  
 (b) Trademarks. Each Party acknowledges the validity of the title of the other Party to any and all trademarks that may be used in conjunction with such other party’s performance of its obligations hereunder. No right, title or
interest in and to such trademarks is granted by this Agreement other than the trademark license granted in Section 2(d) herein, and each party agrees not to use the other party’s trademarks other than in conjunction with such party’s
performance of its obligations hereunder. 
  
 14. INTELLECTUAL PROPERTY
ENFORCEMENT 
  
 (a) Notification of Infringement.
Each party shall promptly notify the other of any material infringement of, or attack upon, any Cardinal Health Patent or Trademark by a third party or parties, as soon as the notifying party learns of such infringement, and shall provide the other
party with any available evidence of such infringement or attack. 
  

 -14- 

 (b) Third Party Claims. Cardinal Health agrees to defend or settle any claim of infringement made
by others alleging that Cardinal Health’s Manufacture of the Products infringes any third party’s intellectual property rights. Cardinal Health shall keep Purchaser fully informed of the progress of such proceedings. Any such action shall
be at Cardinal Health’s expense. 
  
 (c) Enforcement.
Cardinal Health shall have the right, but not the obligation, to institute, prosecute and control at its own expense any action or proceeding with respect to infringement of any Cardinal Health Patents covering the manufacturing, use, importation,
sale or offer for sale of the Products by counsel of its own choice. Cardinal Health shall have the sole right to control such action and any damages or other monetary awards recovered pursuant to this Section 14 shall be for the account of Cardinal
Health. 
  
 15. CONFIDENTIALITY 
  
 (a) Confidentiality. Cardinal Health and Purchaser agree to keep
secret and confidential any and all information (“Confidential Information”) either disclosed hereunder or through any prior disclosure and not to disclose such Confidential Information to any person or entity, except (i) to
employees, Affiliates, agents or representatives of each party having a need to know the information in order to fulfill such party’s obligations hereunder; or (ii) as required by an applicable Agency. The parties shall use the Confidential
Information solely for the purpose of carrying out the obligations contained in the Agreement. The obligations imposed by this Section shall not apply to any Confidential Information: 
  

	 	(i)	which at the time of disclosure is in the public domain; 

  

	 	(ii)	which, after disclosure, becomes part of the public domain by publication or otherwise, through no fault of the receiving party; 

  

	 	(iii)	which at the time of disclosure is already in the receiving party’s possession, except through prior disclosure by Cardinal Health, Purchaser or an Affiliate of either of them,
and such possession can be properly documented by the receiving party in its written records, and was not made available to the receiving party by any person or party owing an obligation of confidentiality to the disclosing party;

  

	 	(iv)	which is rightfully made available to the receiving party from sources independent of the disclosing party; 

  

	 	(v)	which is required to be disclosed in the course of litigation or other legal or administrative proceedings; or 

  

	 	(vi)	which is required to be disclosed by law; 

  
 provided that in all cases the party receiving the Confidential Information shall, to the extent permitted, give the other party prompt notice of the pending disclosure
and shall cooperate in such other party’s attempts, at such other party’s sole expense, to seek an order maintaining the confidentiality of the Confidential Information. 
  

 -15- 

 (b) Term. The obligation of confidentiality and nonuse set forth in this Section 15 shall survive
for a period of five (5) years beyond the termination or expiration of this Agreement. 
  
 (c) Ownership of Confidential Information. Confidential Information shall remain the exclusive property of the disclosing party. In no event shall either party’s Confidential Information, technology,
know-how, intellectual property (or rights thereto) become the property of the other party. 
  
 16. TERM AND TERMINATION 
  
 (a) Term. The term of this Agreement, unless sooner terminated as provided below, shall begin on the Effective Date and shall continue to the tenth (10th) anniversary of the Effective Date. The Agreement may be renewed thereafter upon the mutual written agreement of the parties. 
  
 (b) Immediate Termination. Either party shall have the right to
immediately terminate this Agreement if (i) the other party files a petition in bankruptcy, or enters into an agreement with its creditors, or applies for or consents to the appointment of a receiver or trustee, or makes an assignment for the
benefit of creditors, or suffers or permits the entry of an order adjudicating it to be bankrupt or insolvent and such order is not discharged within ***; (ii) if either party materially breaches any of the provisions of this Agreement, and such
breach is not cured within *** after the giving of written notice, the party claiming the breach shall have the right to terminate this Agreement; or (iii) if any required license, permit or certificate required of the other party is not approved
and/or issued, or is revoked, by any applicable Agency; provided that such other party may no longer appeal such decision or reapply or otherwise pursue such permit, license or certificate. 
  
 (c) Duties Upon Termination. In the event of termination, Cardinal
Health shall promptly return (i) all Raw Materials paid for by Purchaser and (ii) any other Product or material being stored for Purchaser, to Purchaser at Purchaser’s expense. Cardinal Health shall have no obligation to return the foregoing
until all outstanding invoices sent by Cardinal Health to Purchaser have been paid in full. Purchaser shall also be required to pay, at the applicable price set forth in the relevant Purchase Order for completed but not yet shipped Products,
Products in process and Products shipped but not yet invoiced. Purchaser shall specify the location in the continental United States to which delivery, at Purchaser’s expense, of the foregoing is to be made. Confidential Information exchanged
between Purchaser and Cardinal Health shall be promptly returned upon any expiration or termination of the Agreement. 
  
 (d) License Termination. In the event of expiration of this Agreement or termination of this Agreement for any reason, the licenses granted
hereunder by Cardinal Health to Purchaser shall terminate, and shall revert to Cardinal Health, and Purchaser shall not thereafter make any use whatsoever of the Cardinal Health Trademarks. In the event of such termination of the licenses hereunder,
Cardinal Health shall, however, grant Purchaser sufficient time to sell off its existing inventory of the Products, provided that Purchaser shall continue to pay any Royalty payable thereon as provided in this Agreement. Purchaser shall promptly
return or provide to Cardinal Health all Confidential Information of Cardinal Health. 
  
 (e) Continuing Obligations. The rights and obligations of each of the parties hereto under any provision of this Agreement, which, by its terms, is intended to survive beyond the term of this Agreement, shall
continue notwithstanding the expiration or termination of this Agreement for any reason. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -16- 

 17. FORCE MAJEURE 
  

If either party shall be delayed in making any delivery in whole or in part, by reason of Force Majeure, such delay shall be excused during the
continuance of and to the extent of such Force Majeure; provided that if, as a consequence of any such Force Majeure, the total demands for Cardinal Health’s products or services cannot be supplied by Cardinal Health, Cardinal Health may, at
its option, allocate its available supply among Purchaser and its other Purchasers on such basis as Cardinal Health reasonably deems fair and practicable, without liability for any failure to perform this Agreement. Cardinal Health shall promptly
notify Purchaser of the termination of such event. Delivery shall be made and taken as soon as reasonably possible after the removal of such cause, and the time for performance of this Agreement shall be extended for a period equal to the duration
of such cause, provided that if such delay exceeds one hundred twenty (120) days, either party may terminate this Agreement, subject to the duties set forth in Section 16(c). 
  
 18. TECHNOLOGY TRANSFER 
  
 (a) Upon the completion of Development Phase for each Product, Cardinal Health shall assist Purchaser in qualifying a second source selected by Purchaser
(“Substitute Manufacturer”) to manufacture such Products in a tube presentation for Purchaser, providing technical assistance and documentation as necessary, at Purchaser’s expense. Such assistance shall include such
manufacturing technology and know-how so as to permit the Substitute Manufacturer to Manufacture such Product in the tube presentation. Cardinal Health agrees to cooperate with Purchaser to facilitate any technology transfer to the Substitute
Manufacturer required in furtherance of the foregoing. The Substitute Manufacturer shall be used to produce a Product for sale only in the circumstances as set forth in Section 18(b) below. For purposes of clarity, Cardinal Health shall not be
required to transfer technology related to the DelPouch or Microsponge, except to the extent necessary to fill Microsponge entrapped with active and inactive ingredients into a tube. Prior to such transfer, the Substitute Manufacturer shall be
required to sign a confidentiality and non-use agreement at least as restrictive as that set forth in Section 15 of this Agreement. 
  
 (b) If for any reason Cardinal Health is unable to supply any Product to Purchaser or provide sufficient quantity of Product to meet Purchaser’s
Minimum Purchase Requirements under this Agreement, after advance written notice to Cardinal Health from Purchaser and an opportunity to cure not to exceed an additional ***, Purchaser shall have the right to manufacture, or have manufactured by the
Substitute Manufacturer, the Product in a tube presentation, provided that such right shall not include the right to manufacture the Microsponge or DelPouch. Purchaser’s Minimum Purchase Requirements, and payment obligations to Cardinal Health
pursuant to this Agreement, shall be temporarily suspended until Cardinal Health can resume its manufacturing obligations or the expiration of any substitute manufacturing or supply agreement entered into by Purchaser with the substitute
manufacturer. Notwithstanding the foregoing, Cardinal Health shall have no obligation to transfer DelPouch packaging components, equipment or related technology to any third party. 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -17- 

 (c) Cardinal Health shall provide Purchaser with data on the chemical and physical properties, toxicity,
and handling, storing, and shipping information for any materials supplied to Purchaser by Cardinal Health and any other information available to Cardinal Health that is necessary for the safe conduct of the manufacturing of the applicable Product
by Purchaser or the Substitute Manufacturer. Cardinal Health shall supply Purchaser with pertinent information regarding health or safety hazards to workers relating to materials supplied to Purchaser by Cardinal Health. Cardinal Health shall update
all of such information provided to Purchaser as such information becomes available to Cardinal Health. 
  
 (d) In the event of any transfer of manufacturing responsibilities pursuant to this Article 18, Cardinal Health shall make available to Purchaser, and
Purchaser shall purchase, Purchaser’s minimum requirements of Microsponge components entrapped with the appropriate active and inactive ingredients, as the case may be. The Parties shall negotiate in good faith with respect to the appropriate
price for such Microsponge components, and, in any event, Cardinal Health shall offer such Microsponge components to Purchaser on terms no less favorable than the price attributable to the Microsponge components included in Product previously
supplied pursuant to this Agreement. Cardinal Health shall have no obligations with respect to sale of DelPouch components, equipment or related technology. 
  
 (e) At such time as Purchaser shall have the right to manufacture, or have manufactured, any Product in accordance with this Article 18, Cardinal Health
shall be deemed to have granted to Purchaser a license under all of Cardinal Health’s patents and related know-how (and any improvement or modification thereof) to make, have made, use, have used, offer for sale, and import such Product in the
Territory, but only for such period of time that Cardinal Health is unable to supply the Products in accordance with the terms of this Agreement, and (i) with respect to the EpiQuin Products, only for use in the field of pigmentation disorders, and
only to the extent such Product is available by prescription, and (ii) with respect to the Benzoyl Peroxide Products, only to the extent such Product is available by prescription. Such license shall bear no royalties, other than payments for
Microsponge components in accordance with Section 18(d) above. 
  
 19. INDEMNIFICATION 
  
 (a)
Indemnification by Purchaser. Purchaser agrees to defend, indemnify and hold Cardinal Health, its Affiliates, and their respective agents, employees, officers, directors and representatives harmless from and against any and all costs,
expenses, liabilities, claims, damages, demands, actions, judgments, losses and fees, including attorneys’ fees and costs (“Liability”) arising from any third party claim that is the result of: (1) the marketing, shipping,
sale, distribution, possession or use of any Product, (2) any breach of this Agreement by Purchaser, including, without limitation, any representation or warranty contained herein, (3) the negligence or willful misconduct of Purchaser, or (4) any
claim of infringement or alleged infringement of any third party rights as a result of the marketing, shipping, sale, distribution or use of any Product; provided, however, that Purchaser shall have no indemnity obligation to the extent that any
such Liability is due to the negligence or willful misconduct of Cardinal Health, its Affiliates, and their respective agents, employees, officers, directors and representatives. 
  
 (b) Indemnification by Cardinal Health. Cardinal Health agrees to defend, indemnify and hold Purchaser, its
Affiliates and their respective agents, employees, officers, directors and representatives harmless from and against any and all Liability arising from any third party claim that is the result of: (1) any breach of this Agreement by Cardinal Health,
including, without 

  

 -18- 

 
limitation, any representation or warranty contained herein, (2) the negligence or willful misconduct of Cardinal Health, or (3) any claim of infringement or
alleged infringement of any third party rights as a result of the Manufacture of the Product; provided, however, that Purchaser shall have no indemnity obligation to the extent that any such Liability is due to the negligence or willful misconduct
of Purchaser, its Affiliates, and their respective agents, employees, officers, directors and representatives. 
  
 (c) Procedure for Indemnification. Upon receiving notice of any claim for liability under this provision, the indemnified party shall promptly
notify the indemnifying party in writing; provided, however, that failure to give notice shall not limit or otherwise reduce the indemnification provided for in this Agreement. The indemnified party shall use commercially reasonable efforts to
mitigate the effects of such claim and shall reasonably cooperate with the indemnifying party in the defense of such claim. The indemnifying party may, in its sole discretion and at its sole cost, assume and conduct the legal defense of the
indemnified party in any suit that could result in claims under this provision, which such conduct shall include the authority to settle any such claim. 
  
 20. LIMITATION OF LIABILITY 
  
 (a) IN NO EVENT SHALL CARDINAL HEALTH’S TOTAL LIABILITY UNDER THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION ANY OF CARDINAL HEALTH’S INDEMNITY
OR OTHER FINANCIAL OBLIGATIONS UNDER SECTION 19 OR ANY OTHER PROVISION OF THIS AGREEMENT, EXCEED THE TOTAL FEES PAID BY PURCHASER TO CARDINAL HEALTH FOR THE PACKAGING OF THE PRODUCT WHICH WAS INVOLVED IN CAUSING ANY CLAIMS, DAMAGES, LOSSES, COSTS OR
EXPENSES. 
  
 (b) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES, DAMAGES, COSTS OR EXPENSES OF ANY NATURE WHATSOEVER, INCLUDING WITHOUT LIMITATION, LOSS OF REVENUES, PROFITS, DATA OR USE, WHETHER IN CONTRACT OR TORT OR BASED ON A WARRANTY, EVEN IF THE OTHER
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 21.
INSURANCE 
  
 (a) During the Term, Cardinal Health
will obtain and maintain comprehensive general liability insurance (including broad form general liability, completed operations and product liability, personal injury liability, blanket contractual liability and broad form property damage
liability) with limits of not less than *** combined single limit for bodily injury and property damage liability per occurrence and annual aggregate. During the Term, Cardinal Health will obtain and maintain worker’s compensation insurance as
required under applicable law and employer’s liability insurance with a limit of not less than ***. With respect to all insurance coverage required under this Section 21(a): 
  

	 	(i)	Cardinal Health will furnish Purchaser with certificates of insurance evidencing at least the required coverage as soon as practicable after the Effective Date and each anniversary
of the Effective Date during the Term); and 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -19- 

	 	(ii)	Cardinal Health will endeavor to have such policy include provisions for at least thirty (30) business days prior written notice of any materials change or cancellation (whether for
non-payment or otherwise). 

  
 (b) Purchaser.
During the Term, Purchaser will obtain and maintain comprehensive general liability insurance (including broad form general liability, completed operations and products liability, personal injury liability, blanket contractual liability and broad
form property damage liability) with limits of not less than *** combined single limit for bodily injury and property damage liability per occurrence and annual aggregate, containing a cross liability or severability of interests clause. During the
Term, Purchaser will obtain and maintain worker’s compensation insurance as required under applicable law and employer’s liability insurance with a limit of not less than ***. With respect to such insurance coverage required under this
Section 21(b): 
  

	 	(i)	Purchaser will furnish Cardinal Health with certificates of insurance evidencing at least the required coverage as soon as practicable after the Effective Date and each anniversary
of the Effective Date during the Term; and 

  

	 	(ii)	Purchaser will endeavor to have such policy include provisions for at least thirty (30) business days prior written notice of any materials change or cancellation (whether for
non-payment or otherwise); 

  

	 	(iii)	the comprehensive general liability policy shall name Cardinal Health as an additional insured and this provision shall be evidenced on the above referenced certificate of insurance
being provided to Cardinal Health. 

  
 22. NOTICES

  
 Notices or other communications required or permitted by
this Agreement shall be given in writing, and shall be deemed to have been given when deposited in the United States mail, return receipt requested and postage prepaid, or on the day following delivery of such notice to a major overnight delivery
service. All notices shall be addressed to the parties as follows: 
  
 To Cardinal Health: 
  
 Cardinal Health, STG Puerto Rico 
 Bo. Junquito 
 Road 925 Km. 6.1Humacao, Puerto Rico 00791 
 Attn: VP/GM 
 Fax: 787-852-7920 
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

 -20- 

 with copy to: 
  
 Cardinal Health, Inc. 
 7000 Cardinal Place 
 Dublin, OH 43017 
 Attn: General Counsel, Cardinal Health Pharmaceutical 
             Technologies & Services 
 Fax: 614-757-5051 
  
 To Purchaser: 
  
 SkinMedica, Inc. 
 5909 Sea Lion Place, Suite H 
 Carlsbad, CA 92008 
 Attn: President 
 Fax: (760) 448-3601 
  
 with copy to:

  
 Latham & Watkins LLP 
 12636 High Bluff Drive, Suite 300 
 San Diego, CA 92130 
 Attn: Scott N. Wolfe 
 Fax: 858-523-5450 
  
 23. CHOICE OF LAW/VENUE 
  
 The laws of the State of Delaware shall govern any dispute arising out of or under this Agreement, notwithstanding the conflict of laws principles of the
State of Delaware. 
  
 24. ASSIGNMENT 
  
 This Agreement shall not be assigned by either party, except with the
written consent of the other party; provided, however that either party may assign this Agreement to any of its Affiliates or to the Purchaser of all or substantially all of its assets, or to its successor entity or acquirer in the
event of a merger, consolidation or change in control of such party without the consent, written or otherwise, of the other party. 
  

 -21- 

 25. ARBITRATION 
  

If a dispute, controversy or disagreement (“Dispute”) arises between the parties in connection with this Agreement, then the Dispute
shall be presented to the respective presidents of Cardinal Health and Purchaser for their consideration and resolution. If the presidents cannot reach a resolution of the Dispute, then such Dispute shall be resolved by binding Alternative Dispute
Resolution (ADR) in accordance with the then existing commercial arbitration rules of The CPR Institute for Dispute Resolution (“CPR”), 366 Madison Avenue, New York, NY 10017. Arbitration shall be conducted in New York, NY. 

  
 26. RELATIONSHIP OF THE PARTIES 
  
 Nothing contained in this Agreement shall create a joint venture or
partnership between the parties. Cardinal Health shall be an independent contractor in performing its obligations. Neither party shall be liable for any of the debts or obligations of the other and neither party shall have any authority or right to
act for or incur any liability of any kind, express or implied, on the name of or on behalf of the other party. 
  
 27. PUBLICITY 
  
 Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the other
party’s express prior written consent, except as required under applicable law or by any governmental agency, in which case the party required to make the press release or public disclosure shall use commercially reasonable efforts to obtain
the approval of the other party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or making the public disclosure. 
  
 28. MISCELLANEOUS 
  
 (a) Entire Agreement. This Agreement and all Purchase Orders, Purchase Order notifications, Cardinal Health quotations, and Specifications issued
pursuant to this Agreement, constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties, and
there are no warranties, representations or other agreements between the parties except as specifically set forth herein. 
  
 (b) Counterparts, Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be one and
the same Agreement. Any facsimile signature of any party hereto shall constitute a legal, valid and binding execution hereof by such party. 
  
 (c) Setoff. Without limiting Cardinal Health’s rights under law or in equity, Cardinal Health and its Affiliates, parent or related entities,
collectively or individually, may exercise a right of set-off against any and all amounts due to Cardinal Health from Purchaser. For purposes of this Section 28(c), Cardinal Health, its Affiliates, parent or related entities shall be deemed to be a
single creditor. 
  

 -22- 

 (d) Titles. The headings appearing at the beginning of the numbered Articles and at the beginning
of paragraphs have been inserted for convenience only and do not constitute any part of this Agreement. 
  
 (e) Modifications. No changes, modifications or waivers of any provision of this Agreement shall be binding unless in writing and signed by a duly
authorized representative of each party. 
  
 (f)
Severability. In the event that any provision of this Agreement shall be determined to be illegal or unenforceable, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in
full force and effect and enforceable. 
  
 (g) Waiver. The
failure on the part of any party to exercise or enforce any rights conferred upon it hereunder shall not be deemed to be a waiver of any such rights nor operate to bar the exercise or enforcement thereof at any time or times thereafter. 

 
 (h) No Strict Construction. The language used in this Agreement
will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
  

IN WITNESS WHEREOF, Purchaser and Cardinal Health have executed this Agreement on the date first set forth above. 
  

							
	SkinMedica, Inc.	 	Cardinal Health P.R. 409 B.V.
				
	 By:
	 	 /s/ Rex Bright

	 	 By:
	 	 /s/ John Lowmy

	 Name:
	 	 Rex Bright
	 	 Name:
	 	 John Lowmy

	 Title:
	 	 President and CEO
	 	 Title:
	 	 President, O.T.

	 Date:
	 	 March 31, 2003
	 	 Date:
	 	 March 31, 2003

  

 -23-Contract Manufacturing /Packaging Agreement

 Exhibit 10.22 
  

	 	***	CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT (INDICATED BY ASTERISKS) HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT UNDER 17 C.F.R. SECTIONS 200.80(B)(4), 200.83 AND 230.406. 

  
 EXECUTION COPY 
  
 CONTRACT MANUFACTURING/PACKAGING AGREEMENT 
  
 THIS CONTRACT MANUFACTURING / PACKAGING AGREEMENT (this “Agreement”) made this 3rd day of November, 2003 (the “Effective Date”), by and between BRISTOL-MYERS SQUIBB COMPANY, a Delaware corporation with offices at 100 Forest Avenue, Buffalo, New York 14213 (“BMS”),
and SKINMEDICA INC., a Delaware corporation with offices at 5909 Sea Lion Place, Suite H, Carlsbad, California 92008 (“SkinMedica”). BMS and SkinMedica are each a “Party” under this Agreement and both of them are
referred to as “Parties” herein. 
  
 WITNESSETH

  
 WHEREAS, SkinMedica has developed an
investigational new drug candidate designated as Desonide Gel 0.05% (described in further detail on Attachment A) and has acquired rights to the formulation of Desonide Gel 0.05% (the “Drug Product”); 
  
 WHEREAS, SkinMedica desires BMS to perform certain manufacturing,
analytical and packaging services as set forth herein; 
  
 WHEREAS, SkinMedica also desires to have BMS validate the manufacture of the Drug Product, and to test and commercially supply said Drug Product to SkinMedica as set forth herein; and 
  
 WHEREAS, BMS has reviewed and is familiar with the manufacturing
and/or packaging services required by SkinMedica and has expressed its desire to perform such services for SkinMedica. 
  
 NOW THEREFORE, in consideration of the premises and mutual promises, the Parties agree as follows: 
  
 ARTICLE 1 
 BMS SERVICES 
  

	1.1	The Parties acknowledge and agree that upon review by FDA and other applicable regulatory foreign agencies, the specifications developed hereunder may need to be modified to meet
requirements of said regulatory filings. As soon as reasonably practicable after the Effective Date, SkinMedica shall provide approved specifications for labeling and packaging and approved artwork, trade dress, advertising and packaging information
to be used by BMS to manufacture the Drug Product. The specifications for labeling and packaging and approved artwork may be amended or modified only upon the written agreement of both Parties. 

  

	1.2	The Parties hereto agree that the Drug Product Specifications may be modified in writing from time to time by the Parties provided that such modifications shall be incorporated in
Attachment B, as the case may be, and each made part of this Agreement. In the event changes or modifications to the Drug Product Specifications the prices on Attachment C shall be adjusted accordingly by mutual agreement of the
Parties. 

  

	1.3	In addition to the foregoing, BMS shall, prior to the shipment of any Drug Product to SkinMedica, submit to and use its commercially reasonable efforts to have its Buffalo, New York
facility pass a Pre-Approval Inspection by the FDA and other such applicable foreign regulatory agencies, e.g. the TPP (Canada) and the MCA (Europe). 

  

	1.4	 SkinMedica hereby grants to BMS a non-exclusive, fully-paid up, royalty-free, transferable and sublicensable license under its rights, title and interest in, to and
under the intellectual property, 

  

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including, but not limited to, any patents or know-how related to the Drug Product either owned, licensed to, or controlled by SkinMedica (the
“SkinMedica IP”) to allow BMS to use the SkinMedica IP to make, use, offer for sale, sell, have used, made, offered for sale the Drug Product consistent with the terms and conditions herein. BMS covenants that it will use the
licensed rights solely in accordance with the preceding sentence. SkinMedica agrees that BMS and its affiliates may use the information and intellectual property in connection with: (i) the manufacture by BMS of the Drug Product; and (ii) for
internal research purposes relating to the Drug Product. 

  
 ARTICLE 2 
 COMMERCIAL SUPPLY 
  

	2.1	SkinMedica shall purchase all of its requirements for the Drug Product from BMS at the prices specified in Attachment C. 

  

	2.2	Actual quantities, delivery dates and shipping instructions for products covered by this Agreement will be specified by SkinMedica in its purchase orders which shall be issued at
least on a fourteen (14) month rolling forecast, updated monthly with a firm purchase order of seventy-five (75) days in advance of the date on which delivery is to be made. BMS shall use its commercially reasonable efforts to provide prompt advance
notification to SkinMedica of all scheduled manufacturing dates of the Drug Product pursuant to this Agreement. SkinMedica shall use its best efforts to order in quantities which facilitate production in the batch sizes described in the drug product
cost specifications included in Attachment C. Upon receipt of oral or written tentative approval by the FDA for the Drug Product, SkinMedica shall: (i) agree with BMS on an initial launch quantity and delivery schedule for such Drug Product;
and (ii) update its fourteen (14) month forecast and forward same to BMS. 

  

	2.3	Except as provided in Article 1, BMS shall not manufacture the Drug Product for itself, or for any other entity other than SkinMedica, except with the prior written consent of
SkinMedica. SkinMedica shall be free to manufacture Drug Product for itself, or to develop alternative sources for the Drug Product and to purchase Drug Product from such sources. 

  

	2.4	Pricing during the *** of this Agreement shall be as specified in Attachment C. Thereafter, pricing may be adjusted ***. BMS shall give written notice to SkinMedica at least
*** prior to the effective date of any price adjustment. ***. The *** restriction on price adjustments notwithstanding, *** price adjustment will be permitted within *** period, provided that: 

  

	 	(i)	*** raw material and component costs have increased or decreased by more than *** since the *** or from *** of ***, whichever is later; 

  

	 	(ii)	the *** in the raw material and component costs are ***; and 

  

	 	(iii)	the amount of the *** price adjustment is *** and *** pursuant to Section *** 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 Notwithstanding anything to the contrary herein, BMS may adjust the price of the Drug Product in the
event of a process or manufacturing change relating to the Drug Product that is mandated by a governmental entity. 
  

	2.5	Terms of payment shall be net *** from date of receipt by SkinMedica of the released Drug Product and an appropriate invoice, unless the shipment is rejected by SkinMedica pursuant
to Section 4.2 hereof. In addition to the foregoing, upon BMS receipt from SkinMedica of an order for raw materials and/or packaging components for the Drug Product, BMS shall issue SkinMedica an invoice for such raw materials and/or packaging
components (including any up-front charges incurred by BMS). 

  

	2.6	BMS shall deliver Drug Product F.O.B. BMS Buffalo, New York facility during the term of this Agreement. Freight and insurance shall be for the account of SkinMedica, and the risk of
loss, delay or damage in transit shall be with SkinMedica from and after delivery to SkinMedica’s designated common carrier. BMS shall use its commercially reasonable efforts to assist SkinMedica in arranging any desired insurance. BMS shall
package the Drug Product for shipment in accordance with its customary practices therefor, unless otherwise specified in writing by SkinMedica at least *** prior to the scheduled shipment, in which event any extra cost incurred by BMS on account of
changes requested by SkinMedica shall be reimbursed by SkinMedica. BMS shall include the following for each shipment of the Finished Product: (a) the purchase order number; (b) the lot and batch numbers; (c) the quantity of the Finished Product; and
(d) the certificate of analysis and/or certificate of conformance. 

  

	2.7	Title to and risk of loss of the Drug Product shall pass to SkinMedica or its designee at the time of delivery to the common carrier. 

  

	2.8	BMS represents that it has sufficient capacity to manufacture and/or package the “Estimated Annual Requirements” of SkinMedica for the Drug Product set out in
Attachment D and SkinMedica represents and warrants that its has the financial resources to pay for the “Estimated Annual Requirements” set out in Attachment D. No obligation, express or implied, to manufacture or purchase
based on such estimate exists for either BMS or SkinMedica, as the case maybe. 

  
 ARTICLE 3 
 REGULATORY REQUIREMENTS 
  

	3.1	Once per calendar year, BMS shall permit, upon request by SkinMedica, with at least *** prior written notice, one or more employees (but no more than three), or a designee,
the right to conduct an audit of BMS’ facilities and records exclusively relating to the manufacture and packaging of the Drug Product, provided that such employee(s) or designee has entered into a confidentiality agreement with BMS consistent
with the confidentiality terms herein. 

  

	3.2	BMS shall notify SkinMedica within *** of notice to BMS of any inspections of BMS’ facilities exclusively relating to the Drug Product, whether pre-scheduled or unannounced, by
regulatory authorities, including, but not limited to, the FDA, EPA, OSHA, DEA and ATF, or the equivalent foreign regulatory authorities. The findings of these inspections shall be provided by BMS to SkinMedica in a manner which protects the
confidential information of third parties and any unrelated products, only to the extent they relate to or impact the manufacture, testing, packaging, storage or handling of the Drug Product for SkinMedica. 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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	3.3	SkinMedica shall be promptly notified in writing by BMS of any facility modification or equipment change that would be considered a major change requiring notification of regulatory
authorities for the manufacture, testing, packaging, storage or handling of the Drug Product for SkinMedica. 

  

	3.4	SkinMedica will be notified promptly and be supplied with copies of, any questions, correspondence or responses between BMS and regulatory authorities solely to the extent related
to the manufacture, handling, storage, testing, packaging and supply of the Drug Product for SkinMedica BMS shall review verbally or in writing with SkinMedica all proposed responses to said questions or correspondence to allow SkinMedica Inc. to
provide comments regarding the same prior to submission of a response by BMS. For the sake of clarity, the copies provided by BMS hereunder may be redacted at BMS’ discretion to preserve the privacy and identity of third parties and/or
unrelated products. 

  
 ARTICLE 4 

QUALITY ASSURANCE 
  

	4.1	BMS shall obtain the written consent of SkinMedica prior to making any changes to the Drug Product Specifications or any changes to the process, procedures, testing, packaging, or
labeling that exclusively relates to the Drug Product. A list of approved suppliers of raw materials and other components to be used in the manufacture of the Drug Product is in Attachment E. BMS shall not deviate from these approved
suppliers without the prior written approval of SkinMedica. 

  

	4.2	Products manufactured and/or packaged under this Agreement shall be subject to final release by the SkinMedica Quality Assurance Department. Prior to each shipment of the Drug
Product, BMS shall provide SkinMedica a Certificate of Analysis in customary form attesting to the quality of each lot contained within the shipment, including review and approval by the appropriate quality unit of all batch production and control
records. If any products fail to conform to the Drug Product Specifications, BMS shall rework or replace the non-conforming Drug Products at its own expense so as to conform to the Drug Product Specifications. In the event that any such
non-conforming Drug Products cannot be made to conform, they shall be destroyed or disposed of as SkinMedica shall direct, and SkinMedica ***. 

  

	4.3	In the event of dispute between the Parties over the validity of a rejection due to analytical test results, the Parties agree to submit a representative sample of the rejected lot
to a qualified independent cGMP test facility to be agreed upon by the Parties, and to accept the results of the testing performed by that facility as binding with regard to such lot. The testing procedures utilized must be formerly transferred and
qualified at the independent test facility prior to performing the testing. The expense of such testing shall be borne by the losing Party. 

  

	4.4	Any third party or contract laboratory used for the testing of the Drug Product pursuant to Section 4.3 must: (i) be approved by SkinMedica in advance; (ii) have signed a
confidentiality agreement with SkinMedica and BMS; and (iii) have completed a successful qualification/validation between SkinMedica and the BMS. 

  

	4.5	BMS shall perform all manufacturing, storage, handling, packaging and testing of the Drug Product at its facilities in Buffalo, New York, and further agrees that it will not,
directly or 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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indirectly, subcontract any of these tasks or procedures to any third party unless prior written approval to do so is obtained from SkinMedica. Further, BMS
shall ensure that documents required to be retained, according to cGMPs, are stored in a manner to maintain their integrity and protection from fire and other hazards, for the required length of storage. All other documents related to the
manufacture, testing and packaging of the Drug Product shall be stored in a manner consistent with BMS’ normal business practices. 

  

	4.6	BMS shall conduct the validation packaging, storage and specified testing of the Drug Product for SkinMedica, including the disposal of all wastes generated thereby, in conformance
with BMS’ waste handling procedures for the State of New York and Federal environmental regulations. BMS will pay for any incidental costs of disposing of small amounts of waste related to the packaging of the Drug Product. SkinMedica shall
provide BMS with any information required for the environmental assessment, such as toxicity, disposal requirements etc. 

  

	4.7	In the event BMS believes a recall, field alert, Drug Product withdrawal or field correction may be necessary for Drug Product provided under this Agreement, BMS shall immediately
notify SkinMedica in writing. BMS will not act to initiate a recall, field alert, Drug Product withdrawal or field correction without the express prior written approval of SkinMedica, unless otherwise required by applicable laws. In the event
SkinMedica believes a recall, field alert, Drug Product withdrawal or field correction may by necessary for any Drug Product provided under this Agreement, SkinMedica shall immediately notify BMS in writing and BMS shall provide reasonable
cooperation and assistance to SkinMedica. The cost of any recall, field alert, Drug Product withdrawal or field correction shall be borne by *** if such recall, field alert, or Drug Product withdrawal or field correction is a direct result of ***
breach of its obligations under the Agreement or applicable laws or willful misconduct; otherwise, *** shall bear the cost of such recall, field alert, Drug Product withdrawal or field correction. Defective Drug Product shall be replaced in
accordance with the terms and conditions set forth in Section 4.2. 

  
 ARTICLE 5 
 REPRESENTATION AND WARRANTIES 
  

	5.1	Each Party represents and warrants to the other that it has the full power and authority to enter into this Agreement and to carry out the transactions contemplated hereby. Each
Party shall maintain in full force and effect all necessary license, permits and other authorizations required by law to carry out its duties and obligations under this Agreement. Each Party shall comply with all laws applicable to its activities
under this Agreement, including any requirements of any product license applicable to the Drug Product. SkinMedica shall store, market, promote, advertise and sell the Drug Product sold to it by BMS in compliance with all applicable laws, including
the Prescription Drug Marketing Act. BMS and SkinMedica each shall keep all records and reports required to be kept by applicable laws. The Parties shall reasonably cooperate with one another with the goal of ensuring full compliance with applicable
laws. Each Party shall cooperate with the other to provide such letters, documentation, and other information on a timely basis as the other Party may reasonably require to fulfill its reporting and other obligations under applicable laws to
applicable regulatory authorities. 

  

	5.2	BMS and SkinMedica each hereby agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or
proper to make effective the transactions contemplated by this Agreement, including such actions as may be reasonably necessary to obtain approvals and consents of governmental person and other persons; provided, that no Party shall be required to
(i) pay money (other than as expressly 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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required pursuant to the terms and conditions of this Agreement); or (ii) assume any other material obligation not otherwise required to be assumed by this
Agreement. 

  

	5.3	BMS represents and warrants to SkinMedica that the Drug Product manufactured by BMS and sold to SkinMedica under this Agreement will, except to the extent such non-compliance is
attributable to specific instructions received from SkinMedica: 

  

	 	(i)	Not be adulterated or misbranded within the meaning of the Federal, Food, Drug and Cosmetics Act (the “FD&C Act”) and will not be an article that may not be
introduced into interstate commerce under the provisions of Sections 404, 505, or 512 of the FD&C Act, at the time it is tendered to the common carrier for delivery to SkinMedica; 

  

	 	(ii)	Meet the Drug Product Specifications therefor at the time the same is sold to SkinMedica and tendered to the common carrier for delivery to SkinMedica; and 

 

	 	(iii)	Be manufactured, tested, labeled, packaged, stored and shipped in compliance in all material respects with any other applicable laws including all applicable cGMP and all applicable
U.S. federal, state and local environmental health and safety laws in effect at the time and place of manufacture of the Drug Product as well as with any agreement, judgment, order or decree to which BMS is a Party at the time it is tendered to the
common carrier for delivery to SkinMedica. 

  

	5.4	In addition to the other representations and warranties included herein, SkinMedica represents and warrants to BMS that SkinMedica, its affiliates, licensees and contractors shall
adhere in all material respects to all applicable laws relating to the handling, storage, sale, distribution and disposal by any of them of the Drug Product. 

  

	5.5	In addition to the foregoing, SkinMedica represents and warrants to BMS that to the extent that any Drug Product is manufactured by or for SkinMedica (other than by BMS for
SkinMedica hereunder), the Drug Product will: 

  

	 	(i)	Not be adulterated or misbranded within the meaning of the FD&C Act and will not be an article that may not be introduced into interstate commerce under the provisions of
Sections 404, 505 or 512 of the FD&C Act, at the time it is tendered by SkinMedica to the common carrier for delivery; 

  

	 	(ii)	Meet the Drug Product Specifications therefor at the time the same is sold by SkinMedica and tendered by SkinMedica to the common carrier for delivery; and 

 

	 	(iii)	Be manufactured, tested, labeled, packaged, stored and shipped in compliance in all material respects with any other applicable laws including all applicable cGMP and all applicable
U.S. federal, state and local environmental health and safety laws in effect at the time and place of manufacture of the Drug Product as well as with any agreement, judgment, order or decree to which SkinMedica is a Party. 

 

	5.6	 SkinMedica represents and warrants to BMS that: (i) SkinMedica is the sole owner of all rights, title and interest in, to and under the SkinMedica IP; (ii) all
SkinMedica IP is valid, enforceable and in full force and effect; (iii) SkinMedica has not assigned, transferred, licensed, pledged, or otherwise encumbered any of the SkinMedica IP; (iv) no Third Party has a superior right to SkinMedica to use any
of the SkinMedica IP; (v) no Third Party has questioned or challenged the scope or validity of the SkinMedica IP; (vi) none of the SkinMedica IP is subject to any 

  

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contractual obligation restricting SkinMedica’s use thereof or entitling others to use the same or in any way obligating SkinMedica to make payments to
others. 

  

	5.7	BMS hereby agrees, and if requested by SkinMedica will give a written certification, that, to its knowledge, it has not used, and will not use, in any capacity the services of any
person debarred under subsections 306(a) or 306(b) of the FD&C Act in connection with this Agreement. 

  

	5.8	THE WARRANTIES PROVIDED BY BMS IN THIS ARTICLE 5 ARE THE SOLE WARRANTIES GIVEN WITH RESPECT TO THE BMS SERVICES AND THE FINISHED PRODUCT AND ARE MADE IN LIEU OF ANY AND ALL OTHER
WARRANTIES EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. BMS MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OTHER THAN THOSE SET FORTH IN THIS ARTICLE 5.

  
 ARTICLE 6 
 INDEMNIFICATION 
  

	6.1	BMS shall indemnify and hold harmless SkinMedica, its affiliates, subsidiaries, officers, directors and agents from any and all liability for any and all third party claims arising
from process development and manufacturing of the Drug Product performed in an intentionally wrongful manner by BMS, including costs and attorney fees, if any, provided that SkinMedica provides timely written notice to BMS of any claim a rising
hereunder and allows BMS, at its cost, to defend and control any such third party claim. 

  

	6.2	SkinMedica shall indemnify and hold harmless BMS, its affiliates, subsidiaries, officers, directors and agents from (a) any and all liability in connection with any claim made
against the BMS in connection with infringement (including threatened claims) of patent rights of all claims relating to the Drug Product, including, but not limited to, any infringement claims brought by a third party in connection with the license
granted under Section 1.4 or the SkinMedica IP; and (b) any and all liability which may attach to or flow from the promotion, distribution, sale or use of the Drug Product by SkinMedica or any designee, as the case may be, including the costs and
attorney fees, if any, as long as the Drug Product meets or exceeds the Drug Product Specifications provided herein provided that BMS provides timely written notice to SkinMedica of any claim arising hereunder and allows SkinMedica, at its cost, to
defend and control any such third party claim. 

  

	6.3	Notwithstanding any other provision of this Agreement, neither Party shall in any event be liable to the other Party or its affiliates, officers, directors, employees, stockholders,
agents or representatives on account of any breach hereof or of any indemnity obligation set forth herein for any indirect, consequential or punitive damages (including, without limitation, lost profits, loss of use, damage to goodwill or loss of
business). 

  
 ARTICLE 7 
 TERM/TERMINATION 
  

	7.1	 The term of this Agreement shall commence upon the Effective Date and shall expire on the fifth (5th) anniversary of the First Commercial Sale (as defined below) of the Drug Product by BMS to SkinMedica, unless terminated sooner pursuant to this Article 7. As
soon as reasonably 

  

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practicable after the first commercial sale of the Drug Product by BMS to SkinMedica, the Parties shall amend Attachment C and insert the date of such
sale in the space provided thereto (the “First Commercial Sale”). This Agreement shall automatically renew for successive one (1) year periods unless six (6) months prior to the expiration of the initial term or any renewal term
written notice is given by one of the Parties to the other Party. 

  

	7.2	If either Party shall at any time materially breach any of the provisions of this Agreement, the other Party shall have the right to terminate this Agreement and any outstanding
purchase orders hereunder. Upon *** notice to the defaulting Party specifying the default complained of, provided, however, if said defaulting Party cures the default complained of within the ninety days following said notice the
Agreement shall continue in full force and effect as if no default had occurred. The right of either Party to terminate this Agreement, as herein above provided, shall not be affected in any way by its waiver of, or failure to take action with
respect to, any previous default. 

  

	7.3	Either Party may terminate this Agreement without cause on eighteen (18) months prior written notice, which notice cannot be given earlier than six (6) months after the First
Commercial Sale. 

  

	7.4	Upon any termination or expiration of this Agreement, BMS shall be entitled to recoup any and all costs and expenses incurred by BMS for work-in-progress, including, without
limitation raw materials or other components purchased by BMS for the Drug Product. 

  
 ARTICLE 8 
 CONFIDENTIALITY 
  

	8.1	BMS acknowledges that SkinMedica owns the proprietary rights to the Drug Product, including the SkinMedica IP and confidential information related to the Drug Product, and that
these and all other proprietary rights shall remain confidential and the sole property of SkinMedica. 

  

	8.2	Except for purposes of this Agreement, neither Party shall use or disclose any confidential or proprietary information, which may be supplied by a disclosing Party in the course of
this Agreement, including information regarding the business relationship between BMS and SkinMedica. The foregoing obligations shall not apply when and to the extent such information (1) was lawfully available to the public prior to receipt of such
information by a receiving Party from a disclosing Party, (2) through no act on the part of a receiving Party, thereafter becomes lawfully available to the public, (3) was known, as shown by written records, to a receiving Party at the time of
receiving the information, provided such knowledge was not obtained from third parties through binder of secrecy, (4) is subsequently disclosed to a receiving Party by a third party having no obligation of confidentiality with respect to the
information, (5) is developed by a receiving Party, as shown by their written records, independently of information received from a disclosing Party, (6) is required to be disclosed by a receiving Party to a third party by law or legal process,
provided that, should the receiving Party be required to make such disclosure, they will take all reasonable steps to inform the disclosing Party of such disclosure in sufficient time for the disclosing Party to oppose such disclosure before it
takes place, or (7) is approved by a disclosing Party for disclosure by a receiving Party. The obligations imposed in this Article will run for a period of five (5) years commencing from the date of this Agreement or until the approval of a U.S. New
Drug Application (NDA) for the Drug Product, whichever is later; provided, however, that in no event shall said obligations run for a period longer than ten (10) years from the date hereof. 

  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  

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 ARTICLES 9 
 MISCELLANEOUS 
  

	9.1	Force Majeure. BMS’ obligations to deliver hereunder shall be subject to strikes, riots, war, terrorism, acts of God, invasion, fire, explosions, floods, delays of
carrier, shortage or failure in the supply of materials, acts of government or governmental agencies or instrumentalities, and other contingencies beyond BMS’ control. In the event deliveries are prevented by any of the aforesaid causes,
SkinMedica shall be relieved of the obligations contained in outstanding purchase orders. 

  

	9.2	Assignment. Neither Party shall assign this Agreement without the prior written consent of the other Party, however, either Party may, without such written consent, assign
this Agreement, and its rights and objections hereunder, in connection with the transfer or sale of all or substantially all of its business, in the case of BMS, the acquirer of the manufacturing facilities of the Drug Product, or in the event of
its merger or consolidation or change in control or similar transaction. In the event of any assignment, the assignee shall assume all obligations of the assign or under this Agreement. 

  

	9.3	Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the permitted successors or permitted assigns of BMS and SkinMedica respectively.

  

	9.4	Entire Agreement. This Agreement, and the Attachments hereunder, shall constitute the entire agreement between SkinMedica and BMS and the provisions of this Agreement and
such Purchase Orders shall prevail over any inconsistent oral statements or provisions contained in any other documents passing between us. In the event of any conflict in terms between this Agreement and any Purchase Order issued hereunder, this
Agreement shall prevail. No changes or modifications of this Agreement shall be binding on either Party hereto unless such change or modification is made in writing and accepted by both Parties, and attached to this Agreement.

  

	9.5	Notice. Any and all notices provided for shall be sent to the respective Parties at the following addresses by certified or registered mail or sent by nationally recognized
overnight courier service: 

  

			
	 If to BMS:
	  	 BRISTOL-MYERS SQUIBB COMPANY
 Buffalo Technical
Operations
 100 Forest Avenue
 Buffalo, NY 14213
 Attention: Director of Operations

		
	 If to SkinMedica:
	  	 SkinMedica Inc.
 5909 Sea Lion Place, Suite
H
 Carlsbad, CA 92008
 Attention: President,
CEO

  

	9.6	Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of New York. 

  

	9.7	 Severability. In the event that any one or more of the provisions contained in this Agreement, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the Parties shall negotiate in good faith with a view to the substitution 

  

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therefor of a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid
provision; provided, however, that the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained in this Agreement shall not be in any way impaired thereby, it being
intended that all of the rights and privileges of the Parties hereto shall be enforceable to the fullest extent permitted by law. 

  

	9.8	Counterparts. This Agreement may be executed in one or more counterparts, both of which shall be considered one and the same agreement, and shall become effective when one or
more such counterparts have been signed by each of the Parties and delivered to the other Party. 

  
 [The next page is the signature page.] 
  

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 IN WITNESS WHEREOF representatives of the Parties hereto have signed this Agreement as of the date first
above mentioned. 
  

									
	 BRISTOL-MYERS SQUIBB COMPANY
	 	 	 	 SKINMEDICA INC.

					
	By:	 	/s/    John N. Seager        	 	 	 	By:	 	/s/    Rex Bright        
	 Title:
	 	DIRECTOR OPERATIONS	 	 	 	 Title:
	 	President & CEO

  

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