Document:

License Agreement

 EXHIBIT 10.1 
  
 EXECUTION 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions
are designated as **. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 
  
 LICENSE AGREEMENT 
  
 dated as of April 13, 2002 
  
 by and between 
  
 Unigene Laboratories, Inc. 
  
 and 
  
 SmithKline
Beecham Corporation 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE 1
	  	DEFINITIONS	  	1
			
	 ARTICLE 2
	  	LICENSE GRANTS	  	8
			
	 ARTICLE 3
	  	PAYMENTS	  	9
			
	 ARTICLE 4
	  	DEVELOPMENT AND COMMERCIALIZATION	  	17
			
	 ARTICLE 5
	  	SUPPLY AND MANUFACTURE	  	19
			
	 ARTICLE 6
	  	INTELLECTUAL PROPERTY	  	20
			
	 ARTICLE 7
	  	REPRESENTATIONS AND WARRANTIES	  	25
			
	 ARTICLE 8
	  	CONFIDENTIALITY AND EXCHANGE OF INFORMATION	  	27
			
	 ARTICLE 9
	  	INDEMNIFICATION	  	29
			
	 ARTICLE 10
	  	TERM AND TERMINATION	  	30
			
	 ARTICLE 11
	  	MISCELLANEOUS	  	35
			
	 APPENDIX A
	  	Unigene Patent Rights	  	40
			
	 APPENDIX B
	  	Work Plan of Unigene Activities and FTE Requirements	  	44
			
	 APPENDIX C
	  	Unigene Know-How and Technology Transfer	  	45
			
	 APPENDIX D
	  	Encumbrances to Licensed Technology as of Effective Date	  	47

  

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 LICENSE AGREEMENT 
  
 This License Agreement (the “Agreement”), dated April 13, 2002 is made by and between SmithKline Beecham
Corporation, a GlaxoSmithKline company (“GSK”), a Pennsylvania corporation, and Unigene Laboratories, Inc. (“Unigene”), a Delaware corporation (each a “Party” and collectively, the “Parties”). 
  
 R E C I T A L S 
  
 WHEREAS, Unigene has developed certain proprietary technology related
to oral PTH (as defined below); and 
  
 WHEREAS,
Unigene is the owner of all right, title and interest in, or otherwise controls, certain Unigene Patent Rights (as defined below) and Unigene Know-How (as defined below) relating to pharmaceutical compositions for oral delivery of an
active PTH peptide and the manufacture thereof; and 
  
 WHEREAS, Unigene desires to grant to GSK, and GSK desires to obtain, an exclusive license throughout the world under this Agreement to discover, develop, make, have made, market, sell and import certain Licensed Products (as
defined below) throughout the world under the aforesaid Unigene Patent Rights and Unigene Know-How; 
  
 NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement, GSK and Unigene hereby agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 1.1. “Acceptance” of an IND, NDA, or MAA or equivalent means the date of receipt by GSK of notice of acceptance from the FDA (or its equivalent in a country outside the U.S.) of an
IND, NDA, or MAA for a Licensed Product for substantive review. 
  
 1.2. “Affiliate” means any legal entity (such as a corporation, partnership, or limited liability company) that Controls, is Controlled by or is under common Control with a
Party to this Agreement. For the purposes of this definition, the term “Control” means: (i) beneficial ownership of at least fifty percent (50%) of the voting securities of a corporation or other business organization with voting
securities (or such lesser percentage which is the maximum allowed by a foreign corporation in a particular jurisdiction); (ii) a fifty percent (50%) or greater interest in the net assets or profits of a partnership or other business organization
without voting securities; or (iii) the ability to direct the affairs of any such entity. 
  
 1.3. “API” or “Active Pharmaceutical Ingredient” means PTH, in bulk active ingredient form meeting the specifications agreed to by the Parties pursuant to Article
5. 
  
 1.4. “** Patent” means US Patent
**. 

 1.5. “Approval” of an NDA in the United States means the FDA’s
approval of an NDA filed by or on behalf of GSK under this Agreement for marketing Licensed Product in the United States. With respect to an MAA, Approval means the approval by all appropriate regulatory authorities of an
MAA filed by or on behalf of GSK under this Agreement for a Licensed Product, (i) with respect to Europe, by the European Union, or other central authority; or in at least three (3) of the European Major Markets; and (ii) with
respect to Japan, in Japan. 
  
 1.6. “Calendar
Quarter” means a three (3) month period ending on March 31, June 30, September 30 or December 31. 
  
 1.7. “Commencement of Phase I Clinical Studies” means the date the first patient is enrolled by or on behalf of GSK in the first
Phase I clinical trial for a Licensed Product. 
  
 1.8. “Commencement of Phase II Clinical Studies” means the date the first patient is enrolled by or on behalf of GSK in the first Phase II clinical trial for a Licensed Product. 
  
 1.9. “Commencement of Phase III Clinical Studies”
means the date the first patient is enrolled by or on behalf of GSK in the first Phase III clinical trial for a Licensed Product. 
  
 1.10. Confidential Information” means (i) any proprietary or confidential information or material in tangible form disclosed hereunder
that is marked as “Confidential” at the time it is delivered to the receiving Party, (ii) proprietary or confidential information disclosed orally hereunder which is identified as confidential or proprietary when disclosed and such
disclosure of confidential information is confirmed in writing within a reasonable period of time thereafter by the disclosing Party, and/or (iii) any information or material subject to an obligation of confidentiality pursuant to that certain
Confidential Disclosure Agreement entered into by the Parties as of October 18, 2001. 
  
 1.11. “Control,” “Controls,” “Controlled,” or “Controlling” means (except with respect to “Affiliate” as
defined in Section 1.2) possession of the ability to grant the licenses or sublicenses as provided herein without violating the terms of any license agreement or other arrangement with any Third Party, or any government regulation or statute.

  
 1.12. “Cost of Goods” means the fully
allocated cost of manufacturing API which shall comprise all direct costs (including but not limited to labor, materials, energy, utilities, quality control or other costs incurred directly in the manufacture of API) and normal
production overhead (including but not limited to direct administrative labor costs, applicable manufacturing facility and equipment maintenance, relevant insurances, and applicable depreciation of manufacturing equipment and manufacturing
facility,) specifically allocable to the production of such API, excluding (i) any royalties owed to Third Parties and (ii) payments provided to Unigene for FTE manufacturing resources in accordance with Section 3.10. Cost of
Goods shall be determined in accordance with US generally accepted accounting principles. 
  
 1.13. “Effective Date” means the date on which this Agreement was executed by both Parties, as set forth above. 
  

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 1.14. “European Major Markets” means France, Germany, Italy, Spain, and the
United Kingdom. 
  
 1.15. “Equivalent
Product” means, as it pertains to a particular Licensed Product for which there are Net Sales, a product that contains an oral formulation of PTH where such formulation is (a) claimed by a Unigene Formulation
Patent and (b) includes the identical PTH molecule as in that particular Licensed Product. 
  
 1.16. “Field” means the use of the Licensed Product for the prophylactic and/or therapeutic treatment of human diseases
including, but not limited to, osteoporosis. 
  
 1.17.
“FDA” means, with respect to the United States, the United States Food and Drug Administration, any successor entity thereto, or any equivalent foreign regulatory authority(ies) in the particular country of the
Territory. 
  
 1.18. “First Commercial
Sale” means the first sale of Licensed Product to a Third Party by GSK or its Affiliate or sublicensee in a country in the Territory. 
  
 1.19. “Full-Time Equivalent” or “FTE” means the effort equivalent to one (1)
full-time employee of Unigene working on a specific project or task assigned under this Agreement, who, in Unigene’s determination, is qualified to perform such work, based on a total of ** (**) hours of work per year. 

 
 1.20. “GSK Patent Rights” means: (i) all patents
and patent applications arising from work conducted by GSK in the course of conducting its activities under this Agreement during the Term of this Agreement claiming generically or specifically the manufacture, use or sale of PTH,
API, or Licensed Product, including, without limitation, a process for manufacturing PTH, API, or Licensed Product, or an intermediate used in such process or a use of PTH, API, or Licensed
Product; and (ii) any divisions, continuations, continuations-in-part, reissues, reexaminations, patents of additions, extensions or other governmental actions which extend any of the subject matter of the patent applications or patents in
clause (i) above, and any substitutions, confirmations, registrations or revalidations of any of the foregoing, in each case which is owned or Controlled, in whole or part, by license, assignment or otherwise by GSK during the Term of
the Agreement, to the extent GSK has the right to license or sublicense such GSK Patent Rights, and also to the extent to which they do not pertain to any active component of Licensed Product other than PTH or API, and
subject to any limitations of any such license or sublicense. For the avoidance of doubt, GSK Patent Rights shall include GSK Inventions (as defined in Section 6.1.1) and Dependent GSK Improvements (as defined in Section 6.2.1), but shall not
include Joint Patent Rights. 
  
 1.21. “GSK
Know-How” means all ideas, inventions, data, instructions, processes, formulas, expert opinions and information, including, without limitation, biological, chemical, pharmacological, physical and analytical, clinical, safety,
manufacturing and quality control data and information arising from work conducted by GSK in the course of performing its activities under this Agreement, in each case, which are necessary or useful for the development, testing, 
  

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use, manufacture or sale of PTH, API, or Licensed Product, to the extent to which they do not pertain to any active component of
Licensed Product other than PTH or API, and which are in the possession of and owned or Controlled by GSK. GSK Know-How does not include (i) know-how related to mammalian cell culture or (ii) any GSK Inventions for
so long as such are included in the GSK Patent Rights. For the avoidance of doubt, GSK Know-How shall include GSK Inventions (as defined in Section 6.1.1) and Dependent GSK Improvements (as defined in Section 6.2.1). GSK
Know-How shall be Confidential Information of GSK as defined in Section 1.10. 
  
 1.22. “IND” means an investigational new drug application filed with the FDA prior to beginning clinical trials in humans or any comparable application filed with the regulatory
authorities of a country other than the United States, prior to beginning clinical trials in humans in that country; provided, however, that for purposes of this definition, an IND shall not include an investigational new drug application
regarding the testing of several closely related compounds to aid in the selection of a lead compound for further human clinical development. 
  
 1.23. “Joint Patent Rights” means (i) all patents and patent applications arising from Joint Inventions (as defined in Section
6.1.1), and (ii) and divisions, continuations, continuations-in-part, reissues, reexaminations, patents of additions, extensions or other governmental actions which extend any of the subject matter of the patent applications or patents in clause (i)
above, and any substitutions, confirmations, registrations or revalidations of any of the foregoing. 
  
 1.24. “Licensed Product” means a drug product in finished pharmaceutical form, in any formulation containing or incorporating
PTH, alone or in combination with any pharmacologically active ingredient which is a non-peptide or non-peptidomimetic or proprietary GSK peptide, which product incorporates Unigene Know-How and/or is covered by Unigene Patent
Rights and/or Joint Patent Rights; provided, that, in GSK’s discretion, it may request that the Parties enter into good faith negotiations regarding the grant of rights to GSK under Licensed Technology to commercialize a drug
product in a formulation containing or incorporating PTH in combination with a peptide or peptidomimetic compound that is not proprietary to GSK, and, in the event Unigene has not granted, or is not presently in discussions regarding the
grant of such rights to a Third Party, the Parties shall enter into such negotiations. 
  
 1.25. “Licensed Technology” means Unigene Know-How and Unigene Patent Rights and Joint Patent Rights. For avoidance of doubt, Licensed Technology shall include ** IP and UT Patent. 
  
 1.26. “MAA Pricing Approval” means with respect to a
Licensed Product in a country, any requisite pricing and reimbursement approval by the appropriate regulatory authorities, such approval being at a level which is acceptable to GSK with respect to commercial return such that it is
commercially reasonable for GSK to launch Licensed Product. 
  

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 1.27. “Marketing Approval Application” or “MAA” means a filing for
marketing approval (not including pricing or reimbursement approval) in a country other than the United States, in each case with respect to a Licensed Product in the Territory. 
  
 1.28. “Marketing Authorization” means an MAA and/or
NDA. 
  
 1.29. “Net Sales” means the gross
amount billed or invoiced on sales by GSK, its Affiliates and sublicensees of Licensed Product (the “Selling Party”), less the following: 
  

	 	(i)	customary trade, quantity, and cash discounts or rebates actually allowed on Licensed Product; 

  

	 	(ii)	credits or allowances given to customers for rejections or returns of Licensed Product or on account of retroactive price reductions affecting such Licensed Product;

  

	 	(iii)	sales and excise taxes and duties paid or allowed by the Selling Party and any other governmental charges levied on the production, importation, use or sale of a Licensed
Product; 

  

	 	(iv)	transportation charges to the extent that they are included in the price or otherwise paid by the purchaser, including insurance, for transporting Licensed Product; and

  

	 	(v)	Licensed Product rebates and Licensed Product chargebacks including those granted to managed-care entities and government agencies; and 

  

	 	(vi)	** percent (**%) of the sum of gross sales less the amounts set forth in clauses (i) through (v) above to reflect the actual uncollectable accounts. 

  
 Sales or transfers of Licensed Products among GSK, an Affiliate and/or a
sublicensee shall be excluded from the computation of Net Sales, and no royalties will be payable on such sales. 
  
 1.30. “NDA” means, with respect to the United States, a New Drug Application (as defined in 21 C.F.R. § 314.50 et.
seq. or any successor regulations), and all subsequent supplements to that NDA. 
  
 1.31. “**” means **, a corporation with offices at **. 
  
 1.32. “** IP “ means ** Patent **, ** Patent No. **, and any other patent and/or patent applications, including any future
divisionals, continuations, continuations-in-part, reissues and reexaminations, licensed to Unigene pursuant to the ** License Agreement. 
  
 1.33. “** License Agreement” means the license agreement between Unigene and ** relating to the ** IP,
**. 
  

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 1.34. “Phase I” means Phase I clinical trials, as prescribed by applicable
FDA regulations. 
  
 1.35. “Phase
II” means Phase II clinical trials, as prescribed by applicable FDA regulations. 
  
 1.36. “Phase III” means Phase III clinical trials, as prescribed by applicable FDA regulations. 
  
 1.37. “PTH” means all forms of parathyroid hormone
and any and all formulations thereof (including, but not limited to truncates, fusion proteins, muteins and chemical modifications of any or all of the aforementioned). 
  
 1.38. “Similar Product” means, as it pertains to a particular Licensed Product for which
there are Net Sales, a product that contains an oral formulation of PTH which is (a) not claimed by a Unigene Formulation Patent and/or (b) includes a PTH molecule other than the identical PTH molecule in that
particular Licensed Product or in an Equivalent Product to such particular Licensed Product. 
  
 1.39. “Term” means the term of this Agreement as set forth in Section 10.1. 
  
 1.40. “Territory” means all the countries and
territories of the world; provided that, should this Agreement expire as to any country or territory pursuant to Section 10.1, or should GSK terminate this Agreement as to any country or territory pursuant to Section 10.4, such country or territory
shall no longer be considered within the Territory. As used in this Agreement, “country” shall refer to country or territory, as appropriate. 
  

1.41. “Third Party(ies)” means any party(ies) other than Unigene, GSK, or an Affiliate of either of them. 
  
 1.42. “Unigene Formulation Patent Rights” means: (i)
all patents and patent applications in existence as of the Effective Date or arising during the Term of this Agreement claiming generically or specifically the formulation of PTH; and (ii) any divisions, continuations,
continuations-in-part, reissues, reexaminations, patents of additions, extensions or other governmental actions which extend any of the subject matter of the patent applications or patents in clause (i) above, and any substitutions, confirmations,
registrations or revalidations of any of the foregoing, in each case which is owned or Controlled, in whole or part, by license, assignment or otherwise by Unigene as of the Effective Date or during the Term of the Agreement, to
the extent Unigene has the right to license or sublicense such Unigene Formulation Patent Rights, and subject to any limitations of any such license or sublicense. The current list of patent applications and patents encompassed within
Unigene Formulation Patent Rights is set forth in Appendix A to this Agreement, attached hereto and incorporated herein. Appendix A shall be updated on a semi-annual basis during the Term of the Agreement. For the avoidance of doubt,
Unigene Formulation Patent Rights shall include Unigene Inventions (as defined in Section 6.1.1) and ** IP. 
  

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 1.43. “Unigene General Patent Rights” means: (i) all patents and patent
applications in existence as of the Effective Date or during the Term of this Agreement claiming generically or specifically the manufacture, use or sale of PTH, API or Licensed Product including, without
limitation, a process for manufacturing PTH, API or Licensed Product, or an intermediate used in such process or a use of PTH, API or Licensed Product; and (ii) any divisions, continuations,
continuations-in-part, reissues, reexaminations, patents of additions, extensions or other governmental actions which extend any of the subject matter of the patent applications or patents in clause (i) above, and any substitutions, confirmations,
registrations or revalidations of any of the foregoing, in each case which is owned or Controlled, in whole or part, by license, assignment or otherwise by Unigene as of the Effective Date or during the Term of the Agreement, to
the extent Unigene has the right to license or sublicense such Unigene General Patent Rights, and subject to any limitations of any such license or sublicense. The current list of patent applications and patents encompassed within Unigene
General Patent Rights is set forth in Appendix A. Appendix A shall be updated by Unigene on a semi-annual basis during the Term of the Agreement. For the avoidance of doubt, Unigene General Patent Rights shall include Unigene
Inventions (as defined in Section 6.1.1) and the UT Patent (as defined below). 
  
 1.44. “Unigene Know-How” means all ideas, inventions, data, instructions, processes, formulas, expert opinions and information, including, without limitation, biological, chemical,
pharmacological, physical and analytical, clinical, safety, manufacturing and quality control data and information, in each case, which are necessary or useful for the development, testing, use, manufacture or sale of API, PTH or
Licensed Product and which is in the possession of and owned or Controlled by Unigene. Unigene Know-How does not include any Unigene Inventions for so long as such are included in the Unigene Patent Rights. For avoidance
of doubt, Unigene Know-How shall include Unigene Inventions (as defined in Section 6.1.1). Unigene Know-How shall be Confidential Information of Unigene as defined in Section 1.10. 
  
 1.45. “Unigene Patent Rights” means Unigene Formulation
Patent Rights and Unigene General Patent Rights. 
  
 1.46.
“UT Patent” means U.S. Patent No. 5,264,365. 
  
 1.47. “UT Patent License Agreement” means the license agreement between Unigene and the University of Texas relating to the UT Patent, which shall be executed no later than June 30, 2002. 
  
 1.48. “Valid Claim” means either: (i) a claim of an
issued patent within Unigene Formulation Patent Rights that has not been held unenforceable or invalid by an agency or a court of competent jurisdiction in any unappealable or unappealed decision or (ii) a claim of a pending
patent application within Unigene Formulation Patent Rights that has not been outstanding for more than three (3) years, nor abandoned or finally rejected without the possibility of appeal or refiling. 
  

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 1.49. “Work Plan” means the plan, as described in Section 4.2, and as set forth
in Appendix B to this Agreement, attached hereto and incorporated herein. 
  
 ARTICLE 2 
 LICENSE GRANTS 
  
 2.1. License Grant from Unigene to GSK. 
  
 2.1.1. Subject to the terms and conditions of this Agreement, Unigene hereby grants to GSK (i) an exclusive license, even as
to Unigene, under the Licensed Technology, to make, have made, use, sell, offer for sale and import Licensed Product in the Territory in the Field and (ii) an exclusive license, even as to Unigene, under the Licensed
Technology, to make, have made, use, and import API and PTH in the Territory. These licenses include the right to sublicense as to using, selling, offering for sale and importing Licensed Product, the right to
sublicense as to using and importing API and PTH and, subject to Section 2.1.2, the right to sublicense as to making and having made API, PTH and Licensed Product. 
  
 2.1.2. (a) GSK has the right to sublicense all aspects of secondary
manufacture of Licensed Product (i.e., the manufacture of Licensed Product other than manufacture of API and PTH) without further consent or approval of Unigene; 
  
 (b) If, during the Term, GSK elects not to manufacture API or
PTH itself for Licensed Product, and the Parties do not agree to a supply agreement pursuant to Section 5.2, GSK may select a Third Party manufacturer to produce API and/or PTH required by GSK; provided, however,
that prior to contracting with a Third Party manufacturer to produce API and/or PTH, GSK shall consult with Unigene to ensure that the Third Party manufacturer is acceptable to Unigene, and Unigene shall not unreasonably
withhold or delay its consent to the retention by GSK of the Third Party manufacturer. Should GSK contract with a Third Party for the manufacture of API and/or PTH pursuant to this Section, GSK shall ensure that such Third Party
agrees to keep confidential any Unigene Know-How provided to it, under confidentiality provisions no less stringent than those applicable to Unigene and GSK under Article 8. 
  
 2.1.3. Notwithstanding the grant of exclusive license to GSK in Sections 2.1.1 and 2.1.2, Unigene shall have the right to
manufacture PTH for a Third Party or for GSK in accordance with Article 5, but only to the extent that (i) such PTH is not the identical PTH molecule as is then being developed and/or commercialized by GSK anywhere in the
Territory in the Field; and (ii) Unigene has obtained a binding contractual commitment of the Third Party that such PTH shall not be used by the Third Party or any of its partners, agents, licensees for oral
delivery of PTH in the Field in the Territory. Any contract that Unigene enters into with a Third Party shall include the right of GSK to enforce such contract on behalf of Unigene against the Third Party.

  
 2.2. Sublicense of ** IP. Upon the
effective date of the ** License Agreement, Unigene exclusively sublicenses to GSK its rights under the ** License Agreement. In 

  

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exchange for such sublicense, upon Unigene’s written request, GSK shall promptly pay to ** the license fees and milestones due and owing under
the ** License Agreement to the extent set forth in Section 3.7. 
  
 2.3. UT Patent License Agreement. Upon the effective date of the UT Patent License Agreement, the UT Patent shall become part of Unigene Patent Rights. Unigene shall remain obligated for any and all
license fees and milestones due and owing under the UT Patent License Agreement. 
  
 2.4. License Grant from GSK to Unigene on Termination. In the event of termination by GSK under Section 10.4, or termination by Unigene under Section 10.2 or 10.3, and in accordance with Section 10.5.4, upon
such termination, GSK grants to Unigene the following license: 
  
 (a) an exclusive, world-wide, royalty-free, irrevocable, perpetual license, with the right to grant sublicenses, under GSK Patent Rights, GSK Know-How, Joint Patent Rights and Joint Inventions
(other than GSK Inventions and Joint Inventions licensed to Unigene pursuant to Section 6.2), solely to make, have made, use, sell, offer for sale and import an oral PTH product; 
  
 (b) the license granted to Unigene under this Section 2.4 shall not include any license to develop or
commercialize any drug product which does not include PTH, and any such license from GSK to Unigene for such drug product under GSK Patent Rights, GSK Know-How, Joint Patent Rights and Joint Inventions (other than GSK
Inventions and Joint Inventions licensed to Unigene pursuant to Section 6.2) shall be subject to good faith negotiation between the Parties, which negotiation may result in a grant of such license if GSK is not pursuing development of
commercialization of such drug product itself or with another company. 
  
 ARTICLE 3 
 PAYMENTS 
  
 3.1. Initial Fee to Unigene. In partial consideration for the license to Licensed Technology granted to GSK under Section 2.1 of this
Agreement, GSK shall pay to Unigene two million U.S. dollars (U.S. $2,000,000) within ** (**) business days after the Effective Date, which amount shall be non-refundable and not creditable against other amounts due Unigene under this
Agreement. 
  

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 3.2. Milestone Payments to Unigene. 
  
 (a) Licensed Product. In partial consideration for the license to Licensed Technology
granted to GSK under Section 2.1 of this Agreement, GSK shall pay Unigene the following amounts following the first achievement by Unigene, GSK, its Affiliates or sublicensees, as applicable, as the case may be, of each of the following
milestones with respect to the Licensed Product (“Milestones”): 
  

							
	 	 	 Milestone

	  	Amounts

	 
	1.	 	**	  	U.S. $	*	*
	2.	 	Execution of a binding letter of intent between Unigene and the University of Texas for the UT License Agreement and delivery of signed copy of such letter of intent to
GSK.	  	U.S. $	1,000,000	 
	3.	 	**	  	U.S. $	1,000,000	 
	4.	 	**	  	U.S. $	*	*
	5.	 	Commencement of Phase I Clinical Studies	  	U.S. $	*	*
	6.	 	**	  	U.S. $	*	*
	7.	 	**	  	U.S. $	*	*
	8.	 	**	  	U.S. $	*	*
	9.	 	**	  	U.S. $	*	*
	10.	 	**	  	U.S. $	*	*
	11.	 	**	  	U.S. $	*	*
	12.	 	**	  	U.S. $	*	*
	13.	 	**	  	U.S. $	*	*
	14.	 	**	  	U.S. $	*	*
	15.	 	**	  	U.S. $	*	*
	16.	 	**	  	U.S. $	*	*
	17.	 	**	  	U.S. $	*	*

  
 provided that: 
  
 (1) GSK shall provide written notice
of achievement of a Milestone to Unigene within ** (**) business days after such event. Unigene shall provide an invoice to GSK within ** (**) business days of receipt of the notification. Notwithstanding the foregoing, as to Milestones 1 and 2,
Unigene shall provide an invoice to GSK upon achievement of such Milestones. GSK shall pay Unigene the Milestone amount within ** (**) business days of receipt of an invoice from Unigene; 
  

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 (2) each such payment shall be made only one time, based upon the first Licensed Product to achieve a
particular Milestone, regardless of how many times such Milestone is achieved, and Milestone 4 shall be paid only after Milestone 3 has been achieved and paid; 
  

(3) payment shall not be owed for a Milestone that is not achieved, provided that (a) upon the achievement of any of Milestones 5 – 7, all prior
Milestones are deemed achieved as of that date, and payments for such prior Milestones are due and owing according to this Section 3.2, and (b) as to Milestones, 1,2, and 8 – 17, the Milestones may be achieved in any order, and achievement of
any Milestone shall be subject to payment under this Section 3.2 whenever achieved; 
  
 (4) each such payment shall be non-refundable and non-creditable to GSK against other amounts due to Unigene under this Agreement; and 
  
 (5) the achievement of “**”, “**” and “**” as used in this Section 3.2 shall be determined by
criteria established by the JDC (as defined in Section 4.3), but, in any case, should the JDC decide to progress toward Commencement of Phase I Clinical Trials (Milestone 5), if either of Milestone 3 and Milestone 4 has not yet been achieved,
it shall be deemed achieved as of the date of the achievement of Milestone 5, and payment for either or both such Milestones, if not previously made, shall be due and owing according to this Section 3.2; 
  
 (6) “annual worldwide Net Sales” as used in this Section
shall mean the aggregate Net Sales for all Licensed Product in a calendar year across all countries in the Territory. 
  
 3.3. Second Generation Licensed Product. In partial consideration for the license to Licensed Technology granted to GSK under Section
2.1 of this Agreement, should GSK, in its sole discretion and at its option, undertake development of a second generation Licensed Product and achieve ** for such second generation Licensed Product, GSK shall pay to Unigene **
U.S. dollars (U.S.$**), which amount shall be non-refundable and not creditable against other amounts due Unigene under this Agreement. For purposes of this Section 3.3, “second generation Licensed Product” shall mean a Licensed
Product which enters Phase I after First Commercial Sale of a different Licensed Product. GSK shall provide written notice to Unigene immediately upon such **, and pay Unigene within ** (**) days of receipt of an
invoice. Except for the fee set forth in this Section 3.3, there shall be no other milestone payments for each such second generation Licensed Product. 
  

3.4. Unigene Formulation Patent Rights Royalties. 
  
 3.4.1. Royalties on Net Sales where Valid Claim of Unigene Formulation Patent Rights Exists. In
partial consideration of the license and rights granted under Unigene 

  

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Formulation Patent Rights hereunder, GSK shall pay royalties to Unigene on Net Sales of all Licensed Products covered by a Valid
Claim of Unigene Formulation Patent Rights as follows: 
  
 (a) ** percent (**%) of annual Net Sales up to ** U.S. dollars (<U.S. $**); 
  
 (b) ** percent (**%) of annual Net Sales including and in excess of ** U.S. dollars (3US $**) up to ** U.S. dollars (<U.S. $**); 
  
 (c) ** percent (**%) of annual Net Sales including and in excess of ** U.S. dollars (3U.S. $**) up to ** U.S. dollars (<U.S. $**); and 
  
 (d) ** percent (**%) of annual Net Sales including and in excess of ** U.S. dollars (3U.S. $**); 
  
 provided that, for purposes of this Section, achievement of the Net Sales thresholds set forth shall be determined by adding the total annual Net Sales of all Licensed Products during each calendar year in all countries
of the Territory in which there is a Valid Claim of Unigene Formulation Patent Rights claiming the particular Licensed Product at the time such Net Sales of such Licensed Product occur. 
  
 By way of example, if the annual Net Sales were ** U.S. dollars (U.S. $**), then the
royalties due under this Section would be ** U.S. dollars (U.S. $**), calculated as (U.S. $** x **%) plus (U.S. $** x **%). 
  
 3.4.2. Payment of Royalties. Payment of royalties shall be made forty-five (45) days after the end of each Calendar Quarter on all Net
Sales in the preceding quarter (“Quarterly Payment”). Each Quarterly Payment shall be accompanied by a report detailing the total Net Sales by country in the Territory for the preceding Calendar Quarter, and, if
GSK is claiming a reduced royalty rate under Section 3.4.3 or 3.4.4, the sales volume of the Equivalent Product or Similar Product, as measured by IMS or an equivalent Third Party service acceptable to both Parties. In the event
that a Net Sales threshold as described in Section 3.4.1 is met during a Calendar Quarter, all subsequent Quarterly Payments in that calendar year shall be made at the higher applicable royalty rate. Included in the Quarterly Payment
for the fourth Calendar Quarter of each calendar year, GSK shall include any additional royalties owed for Net Sales in the calendar year to which the last Calendar Quarter relates, based on the annual Net Sales.

  
 3.4.3. Royalty where Substantial Competition of an
Equivalent Product Exists. Where substantial competition by an Equivalent Product exists in a country in which a Valid Claim within all Unigene Formulation Patent Rights exists, the applicable royalties set forth in
Section 3.4.1 on Net Sales in such country shall be reduced by ** percent (**%) for each Calendar Quarter in which substantial competition exists. By the term “substantial competition” as used in this Section 3.4.3 is meant
the situation where an Equivalent Product 

  

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achieves ** percent (**%) or more sales (by volume) of the Licensed Product, in such country, as measured by IMS or an equivalent Third Party
service acceptable to both Parties, on a monthly basis for each month of a Calendar Quarter. 
  
 3.4.4. Royalty where Substantial Competition of a Similar Product Exists. In the event Section 3.4.3 does not apply, where substantial
competition by a Similar Product exists in a country in which a Valid Claim within the Unigene Formulation Patent Rights exists, the applicable royalties set forth in Section 3.4.1 on Net Sales in such country shall be
reduced by ** percent (**%) for each Calendar Quarter in which substantial competition exists. By the term “substantial competition” as used in this Section 3.4.4 is meant the situation where a Similar Product achieves **
percent (**%) or more sales (by volume) of the Licensed Product in such country, as measured by IMS or an equivalent Third Party service acceptable to both Parties, on a monthly basis for each month of a Calendar Quarter.

  
 3.4.5. Single Royalty; Non-Royalty Sales. No royalty
shall be payable under Section 3.4.1 above with respect to sales of the Licensed Product among GSK, its Affiliates and sublicensees for resale to a Third Party. In no event shall more than one such royalty be due Unigene
hereunder with respect to the sale of each Licensed Product, even if such Licensed Product is covered by more than one Valid Claim within the Unigene Formulation Patent Rights. 
  
 3.5. Royalties on Net Sales where No Valid Claim of
Unigene Formulation Patent Rights Exists. In the event that no royalty on certain Net Sales is paid under Section 3.4, as further consideration for the licenses granted to GSK under Section 2.1 of this Agreement, GSK shall pay to
Unigene ** percent (**%) of the otherwise applicable royalty rate set forth in Section 3.4.1 on such Net Sales. Where substantial competition exists in such country where there is no Valid Claim, the royalty rate outlined in
Section 3.4 on Net Sales in such country shall be reduced by ** percent (**%) for each Calendar Quarter in which substantial competition exists. By the term “substantial competition” as used in this Section 3.5 is meant the
situation where an Equivalent Product achieves ** percent (**%), or Similar Product achieves ** percent (**%) or more sales (by volume) of the Licensed Product, in such country, as measured by IMS or an equivalent Third
Party service acceptable to both Parties, on a monthly basis for each month of the Calendar Quarter. 
  
 3.6. Royalty Term. The obligation of GSK to pay royalties under Section 3.4 shall continue for each Licensed Product on a Licensed
Product-by-Licensed Product and country-by-country basis, until such time as there are no Valid Claims of Unigene Formulation Patent Rights covering the manufacture, sale or use of such Licensed Product in such
country. The obligation of GSK to pay royalties under Section 3.5 shall continue for each Licensed Product on a Licensed Product-by-Licensed Product basis and country-by-country basis until ** (**) years from the date of
First Commercial Sale of such Licensed Product in such country. In the event that the obligation of GSK to pay royalties under Section 3.4.1 as to a Licensed Product expires prior to ** (**) years from the date of First
Commercial Sale of such Licensed Product, upon such expiration, GSK shall be obliged to pay royalties under Section 3.5 as to such Licensed Product. 
  

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 3.7. ** License Fees and Milestones. In accordance with Unigene’s sub-license
to GSK of the ** License Agreement, GSK shall be fully responsible for the prompt payment to **, upon Unigene’s prompt notice and request, of those certain license fees and milestones due from Unigene to ** under the **
License Agreement and specified below, not to exceed the amounts set forth below: 
  

							
	 	 	 Milestone

	  	Amounts

	 
	1.	 	**	  	U.S. $	*	*
	2.	 	**	  	U.S. $	*	*
	3.	 	**	  	U.S. $	*	*
	4.	 	**	  	U.S. $	*	*
	5.	 	**	  	U.S. $	*	*
	6.	 	**	  	U.S. $	*	*

  
 provided that: 
  
 (1) each such payment shall be made
only one time to ** by GSK based upon the first Licensed Product to achieve a particular Milestone regardless of how many times such Milestone is achieved; 
  
 (2) the Milestone 2 payment shall not be made in the event Milestone 3 occurs prior to Milestone 2; 
  
 (3) payment shall not be owed for a Milestone that is not reached; and

  
 (4) as to Milestone 4, the option to pay the Milestone on
successful ** or ** shall be as specified in the ** License Agreement. 
  
 GSK shall pay the above amounts to ** upon Unigene’s notice and request and in accordance with the ** License Agreement; provided, however, that in the event that GSK fails to remit such payment to ** in a timely
fashion after receiving notice from Unigene that payment to ** is due from GSK, Unigene shall be entitled to remit payment directly to **. In such event, Unigene shall be entitled to seek reimbursement from GSK of any amounts paid to
**, or, at Unigene’s option, to deduct any such payments from future payments due GSK under this Agreement. Other than as set forth above, Unigene shall be fully responsible for any other royalties, license fees, Milestones and any and
all other payments due from Unigene to ** or any other entity under the ** License Agreement. 
  

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 3.8. Third Party Fees or Royalties. GSK shall be fully responsible for the payment of any
additional royalties, license fees, milestones and any and all other payments due to Third Parties other than those due under the ** License Agreement or in relation to the UT Patent that are required for GSK or its licensees to
develop, manufacture, use, market, sell or import ** or Licensed Product, until First Commercial Sale of Licensed Product. After First Commercial Sale, Unigene shall be responsible for ** percent (**%) of royalties
due Third Parties which are directly related to GSK or its licensees’ manufacture, use, sale or import of Licensed Technology, at GSK’s request and upon provision of sufficient documentation by GSK to show the existence of
such an obligation and its direct relation to the Licensed Technology. Unigene shall meet its responsibility for such payments solely in the form of deductions from Quarterly Payments, and in no event shall such deductions exceed ** percent
(**%) of any Quarterly Payment. GSK shall consult with Unigene before entering into any agreement which might subject Unigene to obligations under this Section 3.8; however, GSK shall retain the right of final decision. 
  
 3.9. Third Party Payments - ** Patent. 
  
 3.9.1. Unigene Notification Regarding ** Patent.
Notwithstanding Unigene’s obligations under Section 3.8 of this Agreement to reimburse part of certain Third Party payments, Unigene shall have no such obligation to make any such payments for use of technology claimed in the **
Patent in the event that: (i) Unigene notifies GSK in writing that it believes that the method of manufacture of the API and/or the Licensed Product is not within the scope of any claim of the ** Patent; and (ii) GSK
does not respond in writing to Unigene within forty-five (45) days of receipt of Unigene’s notice. In the event GSK provides written response to Unigene, GSK will notify Unigene of its election to have an outside patent expert (“Outside
Expert”) who is not affiliated with either Party determine whether the method of manufacturing the API and/or the Licensed Product is within one or more claims of the ** Patent, in accordance with Section 3.9.2 below.

  
 3.9.2. Outside Expert Opinion on Scope of **
Patent. In the event that GSK gives notice to Unigene under Section 3.9.1 that GSK elects an Outside Expert determination, the Parties shall promptly select a mutually acceptable objective patent expert to act as Outside Expert and shall
supply such Outside Expert with such materials and information as either Party may deem relevant, or as the Outside Expert may request. The Outside Expert will be asked to render a full and well reasoned, written opinion (“Opinion”) that
the Outside Expert believes that it is more likely than not that either: 
  
 (1) the manufacturing process for the API and/or Licensed Product is within the scope of the ** Patent; or 
  
 (2) the method of manufacturing the API and/or Licensed Product is outside the scope of the **
Patent. 
  
 The Outside Expert, in rendering this Opinion, shall utilize only
the facts and materials provided by the Parties and shall apply the body of law relevant to patent claim interpretation for 

  

 - 15 - 

 
infringement purposes (including doctrine of equivalents and file history estoppel analysis), as set forth in Title 35 of the United States Code and related
case law. The Opinion shall contain the Outside Expert’s explanation for his conclusions and shall be provided to both parties promptly after completion. 
  

3.9.3. Effect of Opinion. In the event that the Outside Expert determines that the method of manufacturing the API and/or Licensed
Product is not within the scope of the ** Patent, then Unigene shall not be required to reimburse GSK with respect to the ** Patent, and GSK shall reimburse Unigene for all deductions from Quarterly Payments related to use of
technology claimed in the ** Patent made after the date of notice provided under Section 3.9.1, such reimbursement to be made no later than the next Quarterly Payment after the date of the Opinion set forth in Section 3.9.2. In the event that
the Outside Expert determines that the method of manufacturing the API and/or the Licensed Product is within the scope of the ** Patent, then Unigene’s obligation of reimbursement under Section 3.7 with respect to the **
Patent shall continue uninterrupted. 
  
 3.9.4. Fees.
The fees paid to the Outside Expert shall be borne equally between the Parties. 
  
 3.9.5. Finality. The Opinion of the Outside Expert shall be final for the purposes of determining Unigene’s reimbursement obligations under Section 3.7 of this Agreement with respect only to the **
Patent, and shall not be appealable by either Party. However, the procedure set forth in Section 3.9 may be repeated upon the request of either Party in the event that the method of manufacturing the API and/or Licensed Product is
substantially changed and/or the ** Patent is reissued subsequent to the rendering of an Opinion by an Outside Expert. 
  
 3.10. Unigene FTE Payments. As consideration for work conducted by Unigene FTEs in accordance with the Work Plan and/or as
authorized by the JDC or Project Team, GSK shall pay Unigene ** U.S. dollars (U.S. $**) per year per Unigene FTE, which rate shall increase each calendar year upon the anniversary date of the Effective Date by a percentage equal to the
increase in the CPI, All Urban Consumers, in the previous calendar year, and shall reimburse Unigene for all preapproved out-of-pocket costs and expenses (including, but not limited to, reasonable travel and hotel costs) consistent with the Work
Plan and/or as authorized by the JDC or Project Team. Subject to further changes in the Work Plan at the mutual agreement of the Parties, the maximum payments payable to Unigene are set forth in Appendix B. GSK shall make payment to
Unigene on a monthly basis for work conducted by Unigene in accordance with the Work Plan within ** (**) days of receipt of an invoice from Unigene. Each invoice shall describe in detail the work performed by Unigene FTEs and a
breakdown of hours of work performed. 
  
 3.11. Currencies.
Payments under this Agreement shall be made in United States Dollars. Revenues and expenses for each country shall be converted into United States Dollars using the applicable exchange rate for converting such local currency to the United States
Dollar in accordance with the exchange rates used by GSK in producing its financial accounts at the time and detailed in its annual report. 
  

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 3.12. Manner of Payments. All sums due to Unigene or to ** under this Agreement shall be
payable in United States Dollars by bank wire transfer in immediately available funds to such bank account as Unigene shall designate. GSK shall notify Unigene as to the date and amount of any such wire transfer to Unigene at least two (2) business
days prior to such transfer. Interest for payments that are not paid within thirty (30) days of the date on which they were due shall accrue at **percent (**%) per month or portion thereof from the date payment was due. 
  
 3.13. Tax Withholding. Any tax, duty or other levy paid or required to
be withheld by GSK or its sublicensees on account of royalties or other payments payable to Unigene or ** under this Agreement shall be deducted from the amount of royalties or payments otherwise due, provided that GSK shall make such
deductions only to the minimum extent required by the relevant jurisdiction. GSK shall secure and send to Unigene and ** proof of any such taxes, duties or other levies withheld and paid by GSK or its sublicensees for the benefit of Unigene
and **, and cooperate at Unigene’s reasonable request to ensure that amounts withheld are reduced to the fullest extent permitted by the relevant jurisdiction. 
  
 3.14. Financial Records and Audits; Unigene’s Right to Audit. Unigene, at its own cost, through an independent
auditor reasonably acceptable to GSK, may inspect and audit the records of GSK pertaining to the sale of Licensed Product and any royalties due to Unigene under Section 3.4. GSK shall provide such auditors with access to the records during
reasonable business hours. Such access need not be given to any such set of records more often than once each year or more than three (3) years after the date of any report to be audited, and the auditors shall report to Unigene only the amount of
royalty due. Unigene shall provide GSK with written notice of its election to inspect and audit the records related to the royalty due hereunder not less than thirty (30) days prior to the proposed date of review of GSK’s records by
Unigene’s auditors. GSK shall maintain sufficient records to permit the inspection and auditing permitted hereunder for three (3) years after the date of each respective reporting period. GSK shall prepare its records and reports according to
generally accepted accounting principles of the United States. Should the auditor find any underpayment of royalties by GSK, GSK shall promptly pay Unigene the amount of such underpayment, plus interest at the rate of ** percent (**%) per month or
portion thereof on the amount of any underpayment from the date payment was due, and shall reimburse Unigene for the cost of the audit should such underpayment equal or exceed ** percent (**%) of royalties paid during the time period audited.

  
 ARTICLE 4 
 DEVELOPMENT AND COMMERCIALIZATION 
  
 4.1. Licensed Product Development by GSK. 
  
 4.1.1. GSK Responsibilities. Except as expressly provided otherwise in this Agreement, GSK shall undertake and resource all development of
Licensed Product(s) in the Field in the Territory so long as it retains full rights thereto under this Agreement, and shall bear all costs it incurs in conducting such development, including, without limitation, expenses
incurred in conducting clinical trials. GSK shall be responsible, at its sole expense on a country-by-country basis, for the commercialization and distribution of such Licensed Product(s) in the 

  

 - 17 - 

 
Field in the Territory so long as GSK retains rights, on a country-by-country basis, thereto under this Agreement. Subject to its obligations
in Section 4.1.2, GSK shall have the sole discretion, using its reasonable business judgment, to decide whether to commercialize a Licensed Product in a country in the Territory. 
  
 4.1.2. Diligent Efforts. GSK shall commit such efforts and resources
during development and commercialization of the Licensed Product throughout the Territory at a level commensurate to those efforts and resources committed by GSK to developing and commercializing its own compounds and products. Such
efforts shall be no less than the level of effort and resource standard in the pharmaceutical industry with respect to a product at a similar state in its development or product life in the context of a similar product portfolio. GSK shall keep the
Project Team (as defined below) and the Joint Development Committee (as defined below), as applicable, advised of its development and manufacturing plans and activities with respect to PTH, API and Licensed Product. 
  
 4.2. Unigene Development Responsibilities. The Work Plan which
outlines the initial responsibilities of Unigene to assist GSK in the manufacture of API, the transfer of Unigene Know-How, and otherwise as agreed by the Parties, is attached hereto as Appendix B. Subject to the Work Plan being
updated from time to time upon mutual agreement of both Parties, GSK shall not be obligated to fund any Unigene FTEs other than to the extent set forth in Appendix B. 
  
 4.3. The Joint Development Committee. 
  
 4.3.1. Within sixty (60) days after the Effective Date, the Parties shall establish a Joint Development
Committee (“JDC”). The JDC shall have responsibility to oversee, review, coordinate and expedite the development of Licensed Product and the progress of work being conducted under the Work Plan, and to update the Work
Plan from time to time. The JDC shall be comprised of GSK representatives and one representative from Unigene. At Unigene’s discretion, additional Unigene personnel, up to a maximum of three (3), may attend meetings of the JDC, but only the
designated Unigene representative shall vote on matters before the JDC. The JDC shall meet quarterly, or as more or less often as otherwise agreed by the Parties, at such locations as the Parties agree. Unigene shall be provided with a copy of all
reports to or by the JDC, including summaries of JDC meetings at the same time that such materials are provided to GSK members of the JDC. Any decision that cannot be made unanimously by the JDC shall be discussed by the appropriate representatives
of the Parties; provided that, in the event of continued disagreement, or otherwise, GSK shall make all final decisions regarding the conduct and progress of the development of Licensed Product. 
  
 4.3.2. After Approval in the United States for the Licensed
Product, the members of the JDC shall continue to meet on a quarterly basis or as necessary to oversee, review, coordinate and expedite the development and commercialization of the Licensed Product in countries outside the United States.
GSK shall continue to have final decision making authority over the development and commercialization of the Licensed Product in the Territory. 
  

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 4.4. Project Team. Promptly after the Effective Date, GSK shall form a project team to
coordinate the development of Licensed Product (the “Project Team”). The Project Team will be comprised of GSK personnel and where appropriate in GSK’s reasonable judgment, Unigene personnel who are responsible for conducting
and progressing the work outlined in the Work Plan. It is anticipated that Unigene personnel shall attend meetings of the Project Team at which the Work Plan is discussed. Such Project Team shall meet as often as agreed upon by the
Parties and shall report to the JDC. Unigene shall be promptly provided with a copy of all Project Team reports, including summaries of Project Team meetings, to the extent such reports and summaries relate to the development of the Licensed
Product, which materials shall be provided to Unigene at the same time that they are provided to GSK members of the Project Team. 
  
 4.5. Unigene Data Transfer. Immediately after the Effective Date, Unigene shall use its reasonable best efforts to promptly transfer, or
cause to be transferred to GSK, a copy of Unigene Know-How relating to PTH and the Licensed Product, including manufacture of API, to enable GSK to carry out its responsibilities under this Agreement. Such data shall
include, at a minimum, the information set forth in Appendix C to this Agreement, attached hereto and incorporated herein. 
  
 ARTICLE 5 
 SUPPLY AND MANUFACTURE

  
 5.1. Preclinical and Phase I Clinical Supply of
API. Within ninety (90) days after the Effective Date, the Parties shall negotiate the terms of supply for preclinical and Phase I clinical supply of API (the “Phase I Supply Agreement”). The Phase
I Supply Agreement will include, but not be limited to terms covering the, quality, specifications, quantity (which at a minimum shall be ** (**) ** of research grade API and ** (**) ** of GMP grade API), payment, batch failure,
change control, regulatory/audits, audit rights for GSK consistent with the rights granted to Unigene in Section 3.14, information related to manufacture of API, QA release and testing and shipping requirements. All supply of API under
the Phase I Supply Agreement shall be at **. For avoidance of doubt, GSK shall be responsible for conversion of API into Licensed Product for use in preclinical work and in Phase I. 
  
 5.2. Additional API Supply. At the appropriate time, the
Parties shall negotiate in good faith the terms of supply for API for further GSK clinical development or commercialization of Licensed Product, such terms to include a supply price for API set at **. Notwithstanding this
Section 5.2, GSK shall reserve the right to supply its requirements of API and/or Licensed Product (which Licensed Product can be supplied either alone or from a contract manufacturer, subject to Section 2.1.2(b)) in order to
develop and commercialize Licensed Product for GSK and/or its Affiliates and sublicensees. 
  
 5.3. Transfer of Manufacturing Technology from Unigene. At the appropriate time, the Parties shall coordinate the transfer of manufacturing
technology not previously transferred pursuant to Section 4.5 to enable GSK to procure its own supply of API and/or Licensed Product. The Unigene FTEs required for the transfer of manufacturing technology are outlined in
the Work Plan and shall be included in the Project Team in accordance with Section 4.4. 
  

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 ARTICLE 6 
 INTELLECTUAL PROPERTY 
  
 6.1. Ownership of Inventions. 
  
 6.1.1.
Inventions. With respect to inventions and intellectual property relating to Licensed Product or work performed under this Agreement arising during the Term: (i) title to all inventions and intellectual property made solely by
Unigene employees or its agents without inventive contribution by GSK employees or its agents shall be owned by Unigene (each, a “Unigene Invention”); (ii) title to all inventions and intellectual property made solely by GSK employees or
its agents hereunder without inventive contribution by Unigene employees or its agents shall be owned by GSK (each, an “GSK Invention”); and (iii) title to all inventions and intellectual property made jointly by employees or the agents of
GSK and Unigene (each a “Joint Invention”) shall be jointly owned by Unigene and GSK. 
  
 6.1.2. Inventorship. Inventorship and rights of ownership of inventions and other intellectual property rights conceived and/or reduced to practice
in connection with the development activities hereunder shall be determined in accordance with the patent laws of the United States. It is understood that (i) except with respect to the rights granted and reserved pursuant to Section 6.2 and (ii) as
to all Joint Inventions other than Joint Patent Rights in the Field which are subject to the license granted in Section 2.1 and for the duration of such license, neither Party shall have any obligation to account to the other for
profits, or to obtain any approval of the other Party to license, assign, mortgage or exploit a Joint Invention by reason of joint ownership of any such intellectual property, and may otherwise undertake all activities a sole owner might undertake
with respect to such inventions without the consent and without accounting to the other joint owner, except as otherwise provided in this Agreement or as the Parties may otherwise agree in writing. 
  
 6.2. License to Unigene. 
  
 6.2.1. GSK hereby grants to Unigene an exclusive (even as to GSK), world
wide, perpetual, irrevocable license, with the right to grant sublicenses, under GSK Inventions and GSK’s interest in Joint Inventions developed with the use of Unigene Know-How (other than Unigene Inventions) and which GSK Inventions
and Joint Inventions constitute improvements, modifications and/or enhancements of such Unigene Know-How (“Dependent GSK Improvements”) for all purposes, including, but not limited to, making, having made, using, selling, offering
to sell, developing, marketing, and distributing drug product, all subject to the reservation of rights in Section 6.2.2, and the license grants in Section 2.1. 
  

6.2.2. Notwithstanding anything in this Article 6 to the contrary, and subject to the licenses granted in Section 2.1, GSK reserves the right, under
all Dependent GSK Improvements and otherwise under all GSK Inventions and GSK’s interest in Joint Inventions, to 

  

 - 20 - 

 
make, have made, use, sell, offer for sale and import Licensed Products in the Territory in the Field. The Parties further agree that
upon GSK’s request that the Parties enter into good faith negotiations regarding the grant of royalty-bearing rights back to GSK under the GSK Inventions and GSK’s interest in Joint Inventions to commercialize drug product other than
Licensed Product in the Territory in the Field, in the event Unigene has not granted, or is not presently in discussions regarding the grant of, such rights to a Third Party, the Parties shall enter into such negotiations
which shall recognize the contributions of each Party to such invention. 
  
 6.3. Disclosure of Unigene Patent Rights. Unigene warrants and represents that it has disclosed to GSK the complete texts of all patent applications filed by Unigene as of the Effective Date which
relate to Licensed Product as well as all information received as of the Effective Date concerning the institution or possible institution of any interference, opposition, re-examination, reissue, revocation, nullification or any
official proceeding involving a Unigene Patent Right anywhere in the Territory. Unigene further warrants and represents that it will disclose to GSK the complete texts of all patent applications filed by Unigene after the Effective
Date which relate to Licensed Product as well as all information received after the Effective Date concerning the institution or possible institution of any interference, opposition, re-examination, reissue, revocation,
nullification or any official proceeding involving a Unigene Patent Right anywhere in the Territory. GSK shall have the right to review all such pending applications and other proceedings and make recommendations to Unigene concerning
them and their conduct. Unigene agrees to keep GSK promptly and fully informed of the course of patent prosecution or other proceedings by means that include providing GSK with copies of substantive communications, search reports and Third
Party observations submitted to or received from patent offices throughout the Territory. GSK shall provide such patent consultation to Unigene at no cost to Unigene and shall treat all information disclosed to it under this Section as
confidential and subject to the provisions of this Agreement. 
  
 6.4. Filing, Prosecution, Maintenance. Each Party shall promptly notify the other, and each shall likewise inform the JDC on at least a quarterly basis, upon the making, conceiving or reducing to practice of any intellectual
property, invention or discovery referred to in Section 6.1.1. With respect to any such invention: 
  
 (a) GSK shall have the first right, using in-house or outside legal counsel selected at GSK’s sole discretion, to prepare, file,
prosecute, maintain and extend patent applications and patents concerning all such inventions and discoveries owned in whole by GSK or jointly by GSK and Unigene in countries of GSK’s choice throughout the Territory with appropriate
credit to Unigene representatives, including the naming of such Parties as inventors where appropriate and in accordance with the relevant legal requirements, for which GSK shall bear the costs relating to such activities which occur at GSK’s
request or direction. GSK shall solicit Unigene’s advice and review of the nature and text of any such patent applications to the extent such are related to Licensed Products and important prosecution matters related thereto in
reasonably sufficient time prior to filing thereof, and GSK shall take into account Unigene’s reasonable comments related thereto. 
  

 - 21 - 

 (b) Unigene shall have the first right, using in-house or outside legal counsel selected
at Unigene’s sole discretion, to prepare, file, prosecute, maintain and extend patent applications and patents concerning all such inventions and discoveries owned in whole by Unigene, as well as all other Unigene Patent Rights, in
countries of Unigene’s choice throughout the Territory, for which Unigene shall bear the costs. Unigene shall solicit GSK’s advice and review of the nature and text of such patent applications to the extent such are related to
Licensed Products and important prosecution matters related thereto in reasonably sufficient time prior to filing thereof, and Unigene shall take into account GSK’s reasonable comments related thereto. 
  
 (c) If GSK, prior or subsequent to filing patent
applications on any GSK Inventions or a Joint Invention in the Territory elects not to file, prosecute or maintain such patent applications or ensuing patents or claims encompassed by such patent applications or ensuing patents in any country
of the Territory, as the case may be, GSK shall give Unigene notice thereof within a reasonable period prior to allowing such patent applications or patents or such claims encompassed by such patent applications or patents to lapse or become
abandoned or unenforceable, and Unigene shall thereafter have the right, at its sole expense, to prepare, file, prosecute and maintain patent applications and patents or divisional applications related to such claims encompassed by such patent
applications or patents concerning all such inventions and discoveries in countries of its choice throughout the world. 
  
 (d) If Unigene, prior or subsequent to filing patent applications on any Unigene Patent Rights including Unigene Inventions which
are owned in whole by Unigene and Unigene elects not to file, prosecute or maintain such patent applications or ensuing patents or claims encompassed by such patent applications or ensuing patents in any country of the Territory, Unigene
shall give GSK notice thereof within a reasonable period prior to allowing such patent applications or patents or such claims encompassed by such patent applications or patents to lapse or become abandoned or unenforceable, and GSK shall thereafter
have the right, at its sole expense, to prepare, file, prosecute and maintain patent applications and patents or divisional applications related to such claims encompassed by such patent applications or patents concerning all such inventions and
discoveries in countries of its choice throughout the world. 
  
 (e) The Party filing patent applications for jointly owned inventions and discoveries shall do so in the name of and on behalf of both GSK and Unigene. Each of Unigene and GSK shall hold all information it presently
knows or acquires under this Section that is related to all such patents and patent applications as confidential subject to the provisions of this Agreement. 
  

(f) Each Party shall cooperate with the other as reasonably requested to effect the provisions of this Section 6.4. 
  

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 6.5. Enforcement. 
  
 6.5.1. Unigene Patent Rights. Subject to Section 6.5.2 below, in the event that a Party learns that any
Unigene Patent Rights necessary for the manufacture, use and/or sale of a Licensed Product are infringed or misappropriated by activities in the Field related to Licensed Product by a Third Party in any country in
the Territory, or is subject to a declaratory judgment action arising from such infringement in such country, such Party shall promptly notify the other Party hereto. GSK shall have the initial right (but not the obligation) to enforce such
Unigene Patent Rights, or defend any declaratory judgment action with respect thereto, at its expense, and to use Unigene’s name in connection therewith; provided that such use without Unigene’s written consent may only occur where
required by law for GSK to bring such action. In the event that GSK fails to initiate a suit to enforce such Unigene Patent Rights against such a Third Party in any jurisdiction in the Territory within ninety (90) days after
notification of such infringement, Unigene may initiate such suit in the name of the Unigene with regard to the applicable Unigene Patent Rights against such infringement, at the expense of Unigene, and to use GSK’s name in connection
therewith. The Party involved in any such claim, suit or proceeding (the “Enforcing Party”), shall keep the other Party hereto reasonably informed of the progress of any such claim, suit or proceeding. Unigene and GSK shall recover their
respective actual out-of-pocket expenses, or equitable proportions thereof, associated with any litigation or settlement thereof from any recovery made by any Party. Any excess amount shall be distributed between the Enforcing Party and the other
party in the ratio equivalent to the profit GSK derives from Licensed Product in the Territory relative to the royalty Unigene derives from Licensed Product in the Territory, with the Enforcing Party receiving the larger
proportion of the excess amount, provided that in no event shall a Party receive a proportion of the excess amount less than the proportion of the total out-of-pocket expenses paid by such Party. 
  
 6.5.2. Jointly Owned Patents. Notwithstanding Section 6.5.1 above, in
the event that any patent that is jointly owned by Unigene and GSK under Section 6.1 of this Agreement is infringed or misappropriated by a Third Party, GSK and Unigene shall discuss whether, and, if so, how, to enforce such jointly owned
patent or defend such jointly owned patent in an infringement action, declaratory judgment or other proceeding. In the event only one Party wishes to participate in such proceeding, it shall have the right to proceed alone, at its expense, and may
retain any recovery; provided, at the request and expense of the participating Party, the other Party agrees to cooperate and join in any proceedings in the event that a Third Party asserts that the co-owner of such Joint Invention is
necessary or indispensable to such proceedings. 
  
 6.6.
Infringement Claims. If the manufacture, sale or use of any Licensed Product in the Territory pursuant to this Agreement results in any claim, suit or proceeding alleging patent infringement against Unigene or GSK, such Party
shall promptly notify the other Party hereto. If GSK is not named as a Party in such a claim, suit or proceeding, GSK may, at its own expense and through counsel of its own choice, seek leave to intervene in such claim, suit or proceeding. Unigene
agrees not to oppose such intervention. If GSK, and not Unigene, is named as a Party 

  

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to such claim, suit or proceeding, GSK shall have the right to control the defense and settlement of such claim, suit or proceeding, at its own expense,
using counsel of its own choice, however Unigene, at its own expense and through counsel of its own choice, may seek to intervene if the claim, suit or proceeding relates to the commercialization of the Licensed Product in the Field, and in
such event, GSK agrees not to oppose such intervention. If GSK is named as a Party and Unigene shall, at any time, tender its defense to GSK, then GSK shall defend Unigene in such claim, suit or proceeding, at GSK’s own expense and through
counsel of its own choice, and GSK shall control the defense and settlement of any such claim, suit or proceeding; provided, GSK shall not enter into any agreement which (i) extends or purports to exercise GSK’s rights under Unigene’s
Licensed Technology beyond the rights granted pursuant to this Agreement, (ii) makes any admission regarding (a) wrongdoing on the part of Unigene, or (b) the invalidity, unenforceability or absence of infringement of any Unigene Patent
Rights or patent claiming a Joint Invention, without the prior written consent of Unigene, which consent shall not be unreasonably withheld. The Parties shall cooperate with each other in connection with any such claim, suit or proceeding and
shall keep each other reasonably informed of all material developments in connection with any such claim, suit or proceeding. Nothing in this Section 6.5 shall limit or modify the provisions of Article 9, which may apply to such infringement claims
as discussed herein. 
  
 6.7. Litigation Activities Update.
The Parties shall keep one another informed of the status of and of their respective activities regarding any litigation or settlement thereof concerning Licensed Product, provided however that no settlement or consent judgment or other
voluntary final disposition of any suit defended or action brought by a Party pursuant to this Article 6 may be entered into without the written consent of the other Party, which consent shall not be unreasonably withheld or delayed. 
  
 6.8. GSK’s Extensions of Unigene Patent Rights, Pipeline
Protection and Supplementary Patent Certificates (“SPCs”). 
  
 6.8.1. Patent Extensions. GSK shall have the right but not the obligation to seek extensions of the terms of Unigene Patent Rights. At GSK’s request, Unigene shall either authorize GSK to act as
Unigene’s agent for the purpose of making any application for any extensions of the term of Unigene Patent Rights and provide reasonable assistance therefor to GSK or shall diligently seek to obtain such extensions, in either event, at
GSK’s expense. 
  
 6.8.2. SPCs. At GSK’s request
and expense, Unigene shall seek to obtain SPCs based on Unigene Patent Rights or authorize GSK to obtain SPCs based on Unigene Patent Rights on Unigene’s behalf. Where GSK holds a relevant Marketing Authorization, GSK shall
at its sole discretion provide to Unigene a copy of said Marketing Authorization and any information necessary for the purpose of obtaining an SPC based on a Unigene Patent Right. 
  
 6.8.3. Pipeline Protection At GSK’s request and expense,
Unigene shall cooperate with GSK to obtain “pipeline” protection for Unigene Patent Rights which may be available under the patent laws of countries in the Territory in which the patent laws thereof are amended
to provide improved protection for Licensed Product. 
  

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 6.9. Unigene’s Additional Patent Protection. Notwithstanding Sections 6.8.1 and 6.8.2,
Unigene shall have the right, but not the obligation, to seek extensions of the terms of Unigene Patent Rights and to seek to obtain SPCs based on Unigene Patent Rights at its own expense. At Unigene’s request, GSK shall
provide to Unigene a copy of any requested NDA or MAA where GSK holds such NDA or MAA, and any information necessary for the purpose of seeking such extensions of Unigene Patent Rights and obtaining SPCs.

  
 6.10. Trademarks. GSK, its Affiliates, and its
sublicensees shall have the right to market Licensed Product under their own labels, tradenames, and trademark(s) (collectively, the “GSK Marks”) and GSK shall solely own such trademarks, labels and tradenames. GSK shall be
responsible for the selection of all GSK Marks that it employs in connection with Licensed Product in the Territory and shall own and control such GSK Marks and retain ownership upon termination or expiration of this Agreement, except
as provided in Section 10.5.6. GSK shall be responsible for filing, registering and maintaining all GSK Marks throughout the Territory. 
  
 ARTICLE 7 
 REPRESENTATIONS AND
WARRANTIES 
  
 7.1. Warranties. 
  
 7.1.1. Unigene. Unigene warrants and represents to GSK that:

  

	 	(i)	as of the Effective Date, and except as otherwise disclosed to GSK, it has full Control of the Licensed Technology to grant the rights and licenses granted
hereunder, and that it otherwise has the full right and authority to enter into this Agreement; 

  

	 	(ii)	as of the Effective Date, there are no existing or threatened actions, suits or claims pending against it with respect to the Licensed Technology or its right to enter
into and perform its obligations under this Agreement; 

  

	 	(iii)	as of the Effective Date, it has not granted, and will not grant during the Term of this Agreement, any right, license or interest in or to the Licensed
Technology that is in conflict with the rights or licenses granted under this Agreement, nor as of the Effective Date, has it encumbered any Unigene Know-How and/or Unigene Patent Rights, except as set forth on Appendix D,
attached hereto and incorporated herein; 

  

	 	(iv)	there is nothing in any Third Party agreement Unigene has entered into as of the Effective Date, and, with respect to the ** License Agreement and the UT
License Agreement, after the Effective Date, which, in any way, will limit Unigene’s ability to perform all of the obligations undertaken by Unigene hereunder, and that it will not enter into any agreement after the Effective
Date under which Unigene would incur any such limitations; 

  

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	 	(v)	as of the Effective Date, and subject to its obligation to grant a sublicense to GSK to ** IP and the UT Patent, it has no knowledge from which it concludes
that the Unigene Patent Rights are invalid or that their exercise would infringe patent rights of Third Parties, and it has no knowledge, as of the Effective Date, from which it concludes that the process by which it
manufactures API or Licensed Product, or anticipated components thereof, and all intermediates of such process, would infringe patent rights of Third Parties in any country in which the API or Licensed Product, or
anticipated components thereof, is produced as well as in all countries of the Territory; 

  

	 	(vi)	as of the Effective Date, other than with respect to a certain preclinical study performed by a Third Party which compared the activity of various PTH molecules
completed within the last six (6) months, which study Unigene has disclosed to GSK, Unigene has not intentionally omitted to furnish GSK with any information requested by GSK, nor intentionally concealed from GSK, any information in its possession
concerning PTH or Licensed Product, or anticipated components thereof, or the transactions contemplated by this Agreement, which would be material to GSK’s decision to enter into this Agreement and to undertake the commitments and
obligations set forth herein; 

  

	 	(vii)	it has not intentionally concealed from GSK the existence of any pre-clinical or clinical data or information concerning PTH or the Licensed Product, or anticipated
components thereof, which suggests that there may exist quality, toxicity, safety and/or efficacy concerns which may materially impair the utility and/or safety of PTH or the Licensed Product, or anticipated components thereof;

  

	 	(viii)	it will perform all of its obligations under the ** License Agreement and UT License Agreement, will maintain such agreements in full force and effect, and will not
terminate or amend the ** License Agreement and UT License Agreement without GSK’s written approval; and 

  
 7.1.2. GSK. GSK warrants and represents to Unigene that: 
  

	 	(i)	as of the Effective Date, it has the full right and authority to enter into this Agreement; 

  

	 	(ii)	as of the Effective Date, there are no existing or threatened actions, suits or claims pending against it with respect to its right to enter into and perform its obligations
under this Agreement; 

  

	 	(iii)	as of the Effective Date, it has not granted, and it will not grant during the Term of this Agreement, any right, license or interest in or to the Licensed
Technology, GSK Patent Rights, GSK Know-How, Joint Patent Rights, and/or Joint Inventions which is in conflict with the rights or licenses granted to Unigene under this Agreement; 

  

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	 	(iv)	there is nothing in any Third Party agreement GSK has entered into as of the Effective Date, which, in any way, will limit GSK’s ability to perform all of the
obligations undertaken by GSK hereunder, and that it will not enter into any agreement after the Effective Date under which GSK would incur any such limitations; 

  

	 	(v)	as of the Effective Date, to the best of its knowledge, it has no knowledge of any matter which would allow GSK to terminate the Agreement pursuant to Article 10.4, nor has
it intentionally omitted to furnish Unigene with any information requested by GSK, nor has it intentionally concealed from Unigene any information in its possession concerning PTH or Licensed Product, or anticipated components thereof,
or the transactions contemplated by this Agreement, which would be material to Unigene’s decision to enter into this Agreement and to undertake the commitments and obligations set forth herein; and 

  

	 	(vi)	it is not a party to any agreement or arrangement with any Third Party or under any obligation or restriction which in any way limits or conflicts with its ability to fulfill
any of its obligations under this Agreement, and shall not enter into any such agreement or arrangement during the Term of this Agreement. 

  

7.2. Covenant of Unigene Regarding ** License Agreement and UT License Agreement. Unigene covenants that it shall use its
reasonable best efforts to execute the ** and UT License Agreement by June 30, 2002. 
  
 7.3. Limits on Competition. Each Party warrants and represents to the other that, during the Term, it will not enter into any agreement with
any Third Party relating to the development of a drug product for oral administration containing or incorporating PTH. In the event that GSK is considering the development of a drug product other than Licensed Product, using the
identical PTH molecule as is used in a License Product, before GSK begins development, GSK will provide notice to Unigene of the contemplated development, and the parties shall enter into good faith discussions regarding the
development of such product, and the use of Unigene technology therein. This Section 7.3 does not limit in any way the scope or exclusivity of the license grants in Section 2. 
  
 ARTICLE 8 
 CONFIDENTIALITY AND EXCHANGE OF INFORMATION 
  
 8.1. Confidential Information. Except as expressly provided herein, the Parties agree that, for the Term of this Agreement and for five (5) years thereafter, the receiving Party shall keep completely confidential and shall not
publish or otherwise disclose and shall not use for any purpose except for the purposes contemplated by this Agreement any Confidential 

  

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Information furnished to it by the disclosing Party hereto pursuant to this Agreement, except that to the extent that it can be established by the
receiving Party by competent proof that such Confidential Information: 
  
 (1) was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure; 
  
 (2) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; 
  
 (3) became generally available to the public or otherwise part of the public
domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; 
  
 (4) was independently developed by the receiving Party without reference to any information or materials disclosed by the disclosing Party; or 

 
 (5) was subsequently disclosed to the receiving Party by a person other
than a Party without breach of any legal obligation to the disclosing Party. 
  
 8.2. Permitted Disclosures. Each Party hereto may disclose the other’s Confidential Information to the extent such disclosure is reasonably necessary in connection with the conduct of the
development activities to be conducted hereunder, in filing or prosecuting patent applications, prosecuting or defending litigation, complying with applicable governmental regulations or otherwise submitting information to tax or other governmental
authorities, conducting clinical trials, or making a permitted sublicense or otherwise exercising its rights hereunder, provided that if a Party is required to make any such disclosure of another Party’s Confidential Information, other
than pursuant to a confidentiality agreement, it will give reasonable advance notice to the latter Party of such disclosure and, save to the extent inappropriate in the case of patent applications, will use its best efforts to secure confidential
treatment of such information prior to its disclosure (whether through protective orders or otherwise). 
  
 8.3. Public Announcements. No public announcement or other disclosure to Third Parties concerning the existence of, terms, or subject matter
of this Agreement shall be made, either directly or indirectly, by any Party to this Agreement, except as may be legally required or as may be required for recording purposed, without first obtaining the approval of the other Party and agreement
upon the nature and text of such announcement or disclosure. The Party desiring to make any such public announcement or other disclosure (including those which are legally required or may be required for recording purposes) shall inform the other
Party of the proposed announcement or disclosure in reasonably sufficient time prior to public release, which shall be at least five (5) business days prior to release of such proposed announcement or disclosure, and shall provide the other Party
with a written copy thereof, in order to allow such other Party to comment upon such announcement or disclosure. Each Party agrees that it shall cooperate fully with the other with respect to all disclosures regarding this Agreement to the
Securities Exchange 

  

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Commission and any other governmental or regulatory agencies, including requests for confidential treatment of proprietary information of either Party
included in any such disclosure. Notwithstanding the foregoing, the Parties shall agree upon a press release to announce the execution of this Agreement, together with a corresponding Q&A outline for use in responding to inquiries about the
Agreement; thereafter, Unigene and GSK may each disclose to Third Parties the information contained in such press release and Q&A without the need for further approval by the other. 
  
 8.4. Publications. Nothing herein shall be construed to prevent GSK
from disclosing any information received from Unigene hereunder to an Affiliate, sublicensee, distributor, Third Party research or clinical contractor of GSK, provided, in the case of a sublicensee, distributor or Third Party
research or clinical contractor of GSK, such sublicensee, distributor, or Third Party research or clinical contractor of GSK has undertaken a similar obligation of confidentiality with respect to the Confidential Information. Neither
Party shall not submit for written or oral publication any manuscript, abstract or the like which includes data or other information pertaining to Licensed Product without first obtaining the prior written consent of the other Party, which
consent shall not be unreasonably withheld, and shall be promptly given or refused. 
  
 8.5. Bankruptcy. All Confidential Information disclosed by one Party to the other shall remain the intellectual property of the disclosing Party. In the event that a court or other legal or
administrative tribunal, directly or through an appointed master, trustee or receiver, assumes partial or complete control over the assets of a Party to this Agreement based on the insolvency or bankruptcy of such Party, the bankrupt or insolvent
Party shall promptly notify the court or other tribunal (i) that Confidential Information received from the other Party under this Agreement remains the property of the other Party, and (ii) of the confidentiality obligations under this
Agreement. In addition, the bankrupt or insolvent party shall, to the extent permitted by law, take all steps necessary or desirable to maintain the confidentiality of the other party’s Confidential Information and to ensure that the
court, other tribunal or appointee maintains such information in confidence in accordance with the terms of this Agreement. 
  
 ARTICLE 9 
 INDEMNIFICATION

  
 9.1. Indemnification of GSK. Unigene shall
indemnify and hold harmless GSK and its Affiliates, and their respective directors, officers, employees, agents and counsel, and the successors and assigns of the foregoing (the “GSK Indemnitees”), from and against any and all
liabilities, damages, losses, costs or expenses (including reasonable attorneys’ and professional fees and other expenses of litigation and/or arbitration) resulting from a claim, suit or proceeding brought by a Third Party against a GSK
Indemnitee, arising from or occurring as a result of: (i) the failure of API manufactured and supplied by Unigene to meet on delivery the Specifications agreed by the Parties, or (ii) the failure by Unigene to obtain or maintain rights
under Unigene Patent Rights sufficient to grant GSK an exclusive license in accordance with Article 2 of this Agreement; or (iii) Unigene’s material breach of any representation or warranty 

  

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set forth in Section 7.1.1, except, in each case, to the extent caused by the negligence or willful misconduct of GSK or to the extent that GSK is obligated
to indemnify Unigene under Section 9.2 below. It is understood that the foregoing indemnity under Section 9.1 shall not include any lost profits or consequential damages. 
  
 9.2. Indemnification of Unigene. GSK and its Affiliates and sublicensees shall indemnify and hold harmless
Unigene and its Affiliates and their respective directors, officers, employees, agents and counsel and the successors and assigns of the foregoing (the “Unigene Indemnitees”), from and against any and all liabilities, damages, costs
or expenses (including reasonable attorneys’ and professional fees and other expenses of litigation and/or arbitration) resulting from a claim, suit or proceeding brought by a Third Party against a Unigene Indemnitee, arising from or
occurring as a result of: (i) the conduct of clinical trials and development activities hereunder by GSK or its Affiliates or sublicensees, or (ii) the development, manufacture, marketing and/or commercialization of any Licensed
Product by GSK or its Affiliates or sublicensees (including without limitation, Licensed Product liability claims); or (iii) GSK’s material breach of any representation or warranty set forth in Section 7.1.2 except, in each
case, to the extent caused by the negligence or willful misconduct of Unigene or to the extent that Unigene is obligated to indemnify GSK under Section 9.1. It is understood that the foregoing indemnity under Section 9.2 shall not include any lost
profits or consequential damages. 
  
 9.3. Procedure. A
Party (the “Indemnitee”) that intends to claim indemnification under this Article 9 shall promptly notify the other Party (the “Indemnitor”) in writing of any loss, claim, damage, liability or action in respect of which the
Indemnitee or any of its Affiliates, sublicensees or their directors, officers, employees, agents or counsel intend to claim such indemnification, and the Indemnitor shall have the right to participate in, and, to the extent the Indemnitor so
desires, to assume the defense thereof with counsel mutually satisfactory to the Parties. The indemnity agreement in this Article 9 shall not apply to amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is
made without the consent of the Indemnitor, which consent shall not be withheld unreasonably. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any such action, if prejudicial to its ability
to defend such action, shall relieve such Indemnitor of any liability to the Indemnitee under this Article 9. At the Indemnitor’s request, the Indemnitee under this Article 9, and its employees and agents, shall cooperate fully with the
Indemnitor and its legal representatives in the investigation and defense of any action, claim or liability covered by this indemnification and provide full information with respect thereto. 
  
 ARTICLE 10 
 TERM AND TERMINATION 
  
 10.1. Term and Early Termination by GSK. This Agreement shall be effective as of the Effective Date. If Unigene fails to ** a copy of the fully executed UT License Agreement to GSK
by June 30, 2002, GSK, in its sole discretion, may, by written notice to Unigene, immediately terminate this Agreement. After the Effective Date, unless this Agreement is 

  

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otherwise terminated earlier pursuant to this Section 10.1 or pursuant to the other provisions of this Article 10, this Agreement shall continue in full
force and effect on a Licensed Product-by-Licensed Product and country-by-country basis until the date GSK and its Affiliates and sublicensees have no remaining royalty obligations in such country in accordance with
Sections 10.1.1, 10.1.2 and 10.1.3. 
  
 10.1.1. Royalty
Expiration where Valid Claim Exists. Royalty obligations under Section 3.4 in each country of the Territory shall expire upon the expiration or invalidation of the last remaining issued Unigene Formulation Patent
Right in such country, which claims the Licensed Product sold. Expiration of GSK’s royalty obligations under Section 3.4 for a particular Licensed Product under this provision shall not preclude GSK from continuing to market
such Licensed Product and to use Unigene Patent Rights and Unigene Know-How in such country without further royalty payments or any other remuneration to Unigene, except to the extent that Section 3.5 is still applicable to the
Net Sales of the particular Licensed Product in the particular country. 
  
 10.1.2. Royalty Expiration where No Valid Claim Exists. Royalty obligations under Section 3.5 in each country shall expire upon the ** (**) anniversary of the date of First Commercial Sale in such
country. Expiration of GSK’s royalty obligations for a particular Licensed Product under this provision shall not preclude GSK from continuing to market such Licensed Product and to use Unigene Know-How in such country
without further royalty payments or any other remuneration to Unigene. 
  
 10.1.3. Royalty Expiration. Upon expiration of GSK’s royalty obligations under Sections 10.1.1 and 10.1.2, GSK shall have a fully paid up, royalty free, perpetual, irrevocable, non-exclusive, world wide license, with the right
to sublicense subject to this Section 10.1.3, and GSK shall be free to make, have made, use and sell Licensed Product and to use Unigene Know-How in the Territory, without further royalty payments or any other remuneration to
Unigene. GSK’s right to sublicense as to making and having made API shall be subject to Section 2.1 for any new subcontracts to manufacture API or PTH entered into by GSK after expiration of GSK’s royalty obligations
under Sections 10.1.1 and 10.1.2., but only with respect to a Third Party with which GSK had not subcontracted prior to the expiration of its royalty obligations, which Third Party shall continue to be subject to confidentiality
obligations no less stringent than those set forth in Article 8. 
  
 10.2. Termination for Material Breach. Either Party may terminate this Agreement in the event the other Party has materially breached or defaulted in the performance of any of its obligations hereunder, and if such default is not
corrected within sixty (60) days after receiving written notice from the other Party with respect to such default, such other Party shall have the right to terminate this Agreement by giving written notice to the Party in default, provided the
notice of termination is given within one (1) year of when the Party giving notice knew or should have known of the default and prior to correction of the default; provided that the time period for providing such notice of termination shall be
extended for so long as the Parties are engaged in good faith negotiations to resolve the situation. Notwithstanding the above, in the case of a 

  

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failure of GSK to pay any royalty due hereunder, the period for cure of any such failure to pay following notice from Unigene thereof shall be thirty (30)
days and, unless payment is made by GSK within such period or unless GSK has notified Unigene that a good faith dispute exists regarding GSK’s failure to pay, the termination shall become effective at the end of such thirty (30) day period.

  
 10.3. Termination for Insolvency; Retention of License.
If voluntary or involuntary proceedings by or against a Party are instituted in bankruptcy under any insolvency law, or a receiver or custodian is appointed for such Party, or proceedings are instituted by or against such Party for corporate
reorganization or the dissolution of such Party, which proceedings, if involuntary, shall not have been dismissed within sixty (60) days after the date of filing, or if such Party makes an assignment for the benefit of creditors, or substantially
all of the assets of such Party are seized or attached and not released within sixty (60) days thereafter, the other Party may immediately terminate this Agreement effective upon notice of such termination. Notwithstanding the bankruptcy of a Party,
or the impairment of performance by a Party of its obligations under this Agreement as a result of bankruptcy or insolvency of such Party, and subject to such Party’s rights to terminate this Agreement for reasons other than bankruptcy or
insolvency as expressly provided in this Agreement, the other Party shall be entitled to retain the licenses under the terms and conditions granted herein. 
  
 10.4. Termination by GSK. At any time after one (1) year after the Effective Date, GSK may terminate this Agreement in its sole discretion
on a country-by-country basis, or in its entirety, by giving Unigene at least ninety (90) days written notice (with such written notice to include a reasonably detailed explanation of the reasons for the termination, including the applicable
provision of this Section 10.4 and the supporting evidence therefore) thereof at any time for any of the reasons set forth below based on a reasonable determination by GSK, using the same standards GSK would use in assessing whether or not to
continue development or commercialization of a product of its own making in its own portfolio, that: 
  
 (i) the Licensed Product has: 
  
 (1) safety concerns which do not justify continued development or commercialization, would significantly disadvantage the Licensed Product with
respect to other compounds or products and/or would significantly reduce the value of the opportunity, all in GSK’s reasonable business determination; or 
  

(2) efficacy concerns which do not justify continued development or commercialization, or would significantly disadvantage the Licensed Product
with respect to other compounds or products and/or would significantly reduce the value of the opportunity, all in GSK’s reasonable business determination; or 
  
 (3) substantial difficulty in meeting developmental timelines; or 
  
 (4) substantial increases in development costs from current projections;

  

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	 	(ii)	the cost of goods for commercial supply of Licensed Product would significantly reduce the value of the opportunity; 

  

	 	(iii)	changes to the osteoporosis market and/or the competitive environment reduce the sales forecast below a commercially viable threshold normally applied by GSK within its own
portfolio; 

  

	 	(iv)	government, regulatory or another recognized institution imposes a new law or requirement, or establishes guidelines or a pattern of practice, which means: 

 
 (1) the continued development or commercialization of the Licensed
Product violates such a law or requirement, or 
  
 (2) the
value of the opportunity is significantly reduced, or 
  
 (3) the
pricing and/or reimbursement environment has changed in such a way as to significantly reduce the projected value of the opportunity, or 
  
 (4) a condition in (i) or (iii) above becomes applicable. 
  
 10.5. General Effect of Termination. 
  
 10.5.1. Accrued Obligations. Termination of this Agreement for any reason shall not release any Party hereto from any liability which, at the time
of such termination, has already accrued to the other Party or which is attributable to a period prior to such termination, nor preclude either Party from pursuing any rights and remedies it may have hereunder or at law or in equity which accrued or
are based upon any event occurring prior to such termination. 
  
 10.5.2. Return of Materials. Upon any termination of this Agreement, GSK and Unigene shall promptly return to the other Party all materials and tangible Confidential Information received from the other Party (except one copy
of which may be retained by legal counsel for archival purposes). 
  
 10.5.3. Stock on Hand. In the event this Agreement is terminated for any reason after commencement of commercial sales of Licensed Product by GSK and/or its Affiliates and sublicensees, GSK and its Affiliates and
sublicensees shall have the right to sell (as to Licensed Product only) or otherwise dispose of the stock of any API, PTH and Licensed Products then on hand for a period of six (6) months after the date of termination,
subject to Article 3 and the other applicable terms of this Agreement, including, but not limited to, royalty obligations. 
  
 10.5.4. Licenses. In the event of termination by GSK pursuant to Section 10.1, 10.3 or 10.4 or termination by Unigene under Section 10.2 due to
GSK’s material breach, the licenses granted to GSK under Section 2.1 shall terminate. In the event of termination by GSK pursuant to Section 10.2 due to Unigene’s material breach, all licenses granted by Unigene to GSK under Section 2.1
shall survive and continue in full force, and GSK shall be obligated to 

  

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continue to make payments under Article 3 to Unigene to the extent GSK continues to develop, use, market, sell or import PTH or Licensed
Product in the Field in the Territory. In the event of termination by GSK under Section 10.4, or by Unigene under Section 10.2 or Section 10.4, the licenses granted by GSK to Unigene under Section 2.3 shall take effect. 

 
 10.5.5. Regulatory Filings/Approvals. In the event of termination
by GSK pursuant to Section 10.4, or by Unigene pursuant to Section 10.2 or 10.3, GSK shall ensure that all regulatory filings and approvals relating to the Licensed Product are assigned to Unigene (to the extent legally permissible in the
relevant country) within a reasonable time after any termination of GSK’s rights under this Agreement. Any costs incurred by GSK for such assignment or transfer shall be at GSK’s expense. In the event that no such assignment and/or
transfer pursuant to this Section may legally be made, then GSK shall surrender such regulatory approvals or applications for cancellation. To the extent that such are related to Licensed Product, all such data, files, materials, information,
filings and approvals shall thereafter be deemed to be Unigene’s Confidential Information and subject to the confidentiality provisions of this Agreement, and shall be transferred to the possession of Unigene. 
  
 10.5.6. Trademarks. In the event of termination by GSK pursuant to
Section 10.3 or 10.4, or by Unigene pursuant to Section 10.2 of 10.3, the parties shall negotiate in good faith for an assignment by GSK of GSK Marks which have been used commercially at or prior to said time and are specifically related to
Licensed Product to Unigene (to the extent legally permissible in the relevant country) within a reasonable time after any termination of GSK’s rights under this Agreement. In the event of termination by Unigene pursuant to Section 10.2,
GSK shall assign the GSK Marks specifically related to Licensed Product to Unigene within a reasonable time after termination of GSK’s rights under this Agreement at no cost or expense to Unigene. 
  
 10.6. Bankruptcy Provisions. All rights and distribution rights
granted under or pursuant to the Agreement by Unigene to GSK are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section
101(52) of the U.S. Bankruptcy Code. The Parties agree that GSK, as licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code, subject to performance by GSK of
its preexisting obligations under the Agreement. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Unigene under the U.S. Bankruptcy Code, GSK shall be entitled to a complete duplicate of (or
complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and same, if not already in its possession, shall be promptly delivered to GSK (a) upon any such commencement of a bankruptcy
proceeding upon written request therefore by GSK, unless Unigene elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under (a) above, upon the rejection of this Agreement by or on behalf of Unigene upon
written request therefore by GSK, provided, however, that upon Unigene’s (or its successor’s) written notification to GSK that it is again willing and able to perform all of its obligations under this Agreement, Unigene shall promptly
return all such tangible materials to GSK, but only to the extent that Unigene does not require continued access to such materials to enable GSK to perform its obligations under this Agreement. 
  
  

 - 34 - 

 10.7. Survival. Sections 2.4; 3.2, 3.3, 3.4, 3.5, 3.7 and 3.10 (all to the extent owed or unpaid), 3.8
and 3.9 (both to the extent owed or unpaid, but only with respect to activities which occur during the Term), 3.11, 3.12, 3.13, 3.14; 6.1, 6.2, 6.3 (with respect to the representations and warranties therein); 6.5 and 6.6 (both only with respect to
infringements which occur during the Term), 6.7 (as applied to any matters surviving under Sections 6.5 and 6.6); 7.1; 8.1 (for the time period provided therein), 8.2, 8.3, 8.5; and Articles 1, 9, 10 and 11 shall survive the expiration or
termination of this Agreement for any reason. In addition, any other provision required to interpret and enforce the Parties’ rights and obligations under this Agreement shall also survive, but only to the extent required for the observation
and performance of the aforementioned surviving portions of this Agreement. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 11.1. Governing Law. This Agreement shall be deemed to have been made in the Commonwealth of Pennsylvania, U.S.A.,
and its form, execution, validity, construction and effect shall be determined in accordance with, and any dispute arising from the performance or breach hereof shall be governed by and construed in accordance with, the laws of the Commonwealth of
Pennsylvania, without reference to conflicts of laws principles. 
  
 11.2. Waiver. Neither Party may waive or release any of its rights or interests in this Agreement except in writing. The failure of either Party to assert a right hereunder or to insist upon compliance with any term or condition of
this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition. No waiver by either Party of any condition or term in any one or more instances shall be construed as a further
or continuing waiver of such condition or term or of another condition or term 
  
 11.3. Assignment. This Agreement shall not be assignable by either Party to any Third Party without the written consent of the other Party hereto; except either Party may assign this Agreement, without
such consent, to (i) an Affiliate of such Party; or (ii) an entity that acquires all or substantially all of the business or assets of such Party to which this Agreement pertains, (whether by merger, reorganization, acquisition, sale, or
otherwise) and agrees in writing to be bound by the terms and conditions of this Agreement. The terms and conditions of this Agreement shall be binding on and inure to the benefit of the permitted successors and assigns of the Parties. 

 
 11.4. Notices. Any notices, requests and other communications
hereunder shall be in writing and shall be personally delivered or sent by international express delivery service, registered or certified air mail, return receipt requested, postage prepaid, or by facsimile (confirmed by prepaid registered or
certified air mail letter or by international express delivery mail) (e.g., FedEx)), and shall be deemed to have been properly served to the addressee upon 

  

 - 35 - 

 
receipt of such written communication, to the following addresses of the Parties, or such other address as may be specified in writing to the other Parties
hereto: 
  

					
	 if to GSK:
	  	 GlaxoSmithKline
 709 Swedeland
Road
 King of Prussia, PA 19406
 Attention: Senior Vice
President, Business Development
 Telephone: **
 Telecopy:
**

		
	 with copies to:
	  	 Glaxo SmithKline
 Corporate Legal
Department
 One Franklin Plaza
 200 N. 16th Street/FP 2360
 Philadelphia, PA
19101

	 	  	Attention:	 	 Senior Vice President and Assistant General
 Counsel – R&D Legal Operations

	 	  	Telephone:	 	 215-751-4000

	 	  	Telecopy:	 	 215-751-3935

		
	 if to Unigene:
	  	 Unigene Laboratories, Inc.
 110 Little Falls
Road
 Fairfield, NJ 07004

	 	  	Attention:	 	 President

	 	  	Telephone:	 	 973-882-0860

	 	  	Telecopy:	 	 973-227-6088

		
	 with a copy to:
	  	 Dechert
 Princeton Pike Corporate
Center
 P.O. Box 5218
 Lawrenceville, New Jersey
08648-5218
  
 For deliveries:
 997 Lenox Drive
 Building 3, Suite 210
 Lawrenceville, New Jersey 08648-5218
 Attention: Allen Bloom,
Esq.

	 	  	Telephone:	 	 **

	 	  	Telecopy:	 	 **

  
 11.5. Force
Majeure. Neither Party shall be liable to the other for failure or delay in the performance of any of its obligations under this Agreement for the time and to the extent such failure or delay is caused by earthquake, riot, civil commotion,
terrorism, war, hostilities between nations, governmental law, order or regulation, embargo, action by the government or any agency thereof, act of God, storm, fire, accident, labor dispute or strike, sabotage, explosion or 

  

 - 36 - 

 
other similar or different contingencies, in each case, beyond the reasonable control of the respective Party. The Party affected by force majeure shall
provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the interference with its activities), and will use its best endeavors to overcome the
difficulties created thereby and to resume performance of its obligations as soon as practicable. If the performance of any obligation under this Agreement is delayed owing to a force majeure for any continuous period of more than six (6) months,
the Parties hereto shall consult with respect to an equitable solution including the possible termination of this Agreement. 
  
 11.6. Independent Contractors. Nothing contained in this Agreement is intended implicitly, or is to be construed, to constitute GSK or Unigene as
partners or joint venturers in the legal sense. No Party hereto shall have any express or implied right or authority to assume or create any obligations on behalf of or in the name of any other Party or to bind any other Party to any contract,
agreement or undertaking with any Third Party. 
  
 11.7.
Other Obligations. Except as expressly provided in this Agreement or as separately agreed upon in writing between Unigene and GSK, each Party shall bear its own costs incurred in connection with the implementation of the obligations under
this Agreement. 
  
 11.8. Severability. If any of the terms
or provisions of this Agreement are in conflict with any applicable statute or rule of law, then such terms or provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed to be modified to conform with
such statute or rule of law. In the event that the terms and conditions of this Agreement are materially altered as a result of the above, the Parties will renegotiate the terms and conditions of this Agreement to resolve any inequities 

 
 11.9. Further Assurances. At any time or from time to time on and
after the date of this Agreement, either Party shall at the request of the other Party (i) deliver to the requesting Party such records, data or other documents consistent with the provisions of this Agreement, (ii) execute, and deliver or cause to
be delivered, all such consents, documents or further instruments of assignment, transfer or license, and (iii) take or cause to be taken all such actions, as the requesting Party may reasonably deem necessary or desirable in order for the
requesting Party to obtain the full benefits of this Agreement and the transactions contemplated hereby. 
  
 11.10. Entire Agreement. This Agreement constitutes the entire agreement, both written or oral, with respect to the subject matter hereof, and
supersedes and terminates all prior or contemporaneous understandings or agreements, whether written or oral, between GSK and Unigene with respect to such subject matter, including, but not limited to, that Confidential Disclosure Agreement dated
October 18, 2001. No terms or provisions of this Agreement shall be varied or modified by any prior or subsequent statement, conduct or act of either of the Parties, except that the Parties may amend this Agreement by written instruments
specifically referring to and executed in the same manner as this Agreement. 
  

 - 37 - 

 11.11. Headings. The captions to the Articles and Sections hereof are not a part of this
Agreement, but are included merely for convenience of reference only and shall not affect its meaning or interpretation. 
  
 11.12. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument. 
  
 [THIS
SECTION LEFT INTENTIONALLY BLANK] 
  

 - 38 - 

 IN WITNESS WHEREOF, the Parties hereto have caused this License Agreement to be duly executed by
their authorized representatives as of the Effective Date. 
  

							
	UNIGENE LABORATORIES, INC.	 	 SMITHKLINE BEECHAM
 CORPORATION, a
GlaxoSmithKline
 Company

				
	 By:
	 	  

	 	 By:
	 	  

	 Name:
	 	  

	 	 Name:
	 	  

	 Title:
	 	  

	 	 Title:
	 	  

  

 - 39 - 

 APPENDIX A 
  
 UNIGENE PATENT RIGHTS 
  
 ** 
  

													
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	**	 	**	 	**	 	**	 	**	 	**	 	**
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	**	 	 	 	 	 	 	 	 	 	 	 	 

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	**

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	**	 	**	 	**	 	**	 	**	 	**	 	**
							
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
							
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
							
	**	 	**	 	**	 	**	 	**	 	**	 	**

													
	**

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	**	 	**	 	**	 	**	 	**	 	**	 	**
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	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
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	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
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	**	 	**	 	**	 	**	 	**	 	**	 	**
							
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
	**	 	**	 	**	 	**	 	**	 	**	 	**
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	**	 	**	 	**	 	**	 	**	 	**	 	**

 APPENDIX B 
  
 WORKPLAN OF UNIGENE ACTIVITIES AND FTE REQUIREMENTS 
  

									
	 ACTIVITY DESCRIPTION

	  	ESTIMATED
PERIOD

	 	DURATION

	 	UNIGENE
STAFF

	 	MAXIMUM
COST
($,000)

	 **
	  	 	 	 	 	 	 	 
	 **
	  	**	 	**	 	**	 	**
	 **
	  	**	 	**	 	**	 	**
	 **
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	 **
	  	**	 	**	 	**	 	**
	 	  	 	 	
	 	 	 	

	 **
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	 **
	  	 	 	 	 	 	 	 
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	 **
	  	**	 	**	 	**	 	**
	 **
	  	**	 	**	 	**	 	**

 APPENDIX C  
  
 UNIGENE KNOW-HOW AND TECHNOLOGY TRANSFER 
  

	
	 1.      **

	 2.      **

	 3.      **

	 4.      **

	 5.      **

	 6.      **

	 7.      **

	 8.      **

	 9.      **

	 10.    **

	 11.    **

	 12.    **

	 13.    **

	 14.    **

	 15.    **

	 16.    **

	 17.    **

	 18.    **

	 19.    **

	 20.    **

	 21.    **

	 22.    **

	 23.    **

	 24.    **

	 25.    **

	 26.    **

  
 ** 
  
 ** 

	•	 	** 

  

	•	 	** 

  

	•	 	** 

 APPENDIX D 
  
 ENCUMBRANCES TO LICENSED TECHNOLOGY AS OF EFFECTIVE DATE 
  
 Patent Security Agreement between Unigene Laboratories and Jay Levy dated March 13, 2001.Exhibit -10.3

 EXHIBIT 10.3 
  
 TRI-PARTY AGREEMENT 
  
 THIS TRI-PARTY AGREEMENT (this “Agreement”) is made and entered into as of February 3, 2005 by and among EMERGYSTAT, INC., a
Mississippi corporation, EMERGYSTAT OF SULLIGENT, INC., an Alabama corporation, EXTENDED EMERGENCY MEDICAL SERVICES, INC., an Alabama corporation, MED EXPRESS OF MISSISSIPPI, LLC, a Mississippi limited liability company (collectively,
“Borrower”), BAD TOYS HOLDINGS, INC., a Nevada corporation (“Purchaser”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (“Lender”). 
  
 RECITALS 
  

	FIRST:	Borrower and Lender are parties to that certain Loan And Security Agreement dated as of April 30, 2003 (as amended, modified, and/or restated from time to time, the “Loan
Agreement”), as modified by the Forbearance Agreements. 

  

	SECOND:	Borrower has been in default under the Loan Agreement for an extensive period of time pursuant to Existing Defaults and other matters stated in the Forbearance Agreements. During
that time, Borrower has made multiple requests asking Lender to continue to forbear from exercising its collection and other rights, and to make further advances under the Loan Agreement. Lender has agreed to those requests by Borrower under the
terms and conditions of the Forbearance Agreements. 

  

	THIRD:	The last day of the current forbearance period is January 31, 2005. Borrower has represented to Lender that (a) the shareholders of Emergystat, Inc. have entered into an agreement
dated February 12, 2005, to transfer ninety percent (90%) of the issued and outstanding capital stock of Emergystat, Inc. to Southland Health Services, Inc. (“Southland Health Services”), (b) the shareholders of
Emergystat of Sulligent, Inc. have entered into an agreement dated February 12, 2005, to transfer ninety percent (90%) of the issued and outstanding capital stock of Emergystat of Sulligent, Inc. to Southland Health Services (the
agreements described in subsections (a) and (b) shall be referred to collectively in this Agreement as the, “Emergystat Purchase Agreement”, and the stock purchases described in subsections (a) and (b) shall be referred to
collectively in this Agreement as the “Emergystat Stock Purchase”), and (c) Southland Health Services has entered into a Capital Stock Purchase Agreement, dated on or about December 27, 2004 (the “Southland
Purchase Agreement”) with the Purchaser, whereby the Purchaser is to acquire all of the equity interests of Southland Health Services, and thereby indirectly acquire the entities comprising Borrower (the “Southland Stock
Purchase”). Borrower and Purchaser also have represented to Lender that the Emergystat Stock Purchase, together with the Southland Stock Purchase, will result in Borrower’s indefeasible payment in full of all Obligations owing to
Lender. 

  

	FOURTH:	Without Lender’s prior written consent, a change in the legal ownership of the capital stock of Borrower would be a breach of the negative covenant set forth in Section 7.14 of
the Loan Agreement. Accordingly, Borrower and Purchaser have requested that Lender consent to the Emergystat Stock Purchase and extend the forbearance period until March 18, 2005. 

	FIFTH:	Lender is willing (i) only upon the terms and conditions set forth in this Agreement, to consent to the Emergystat Stock Purchase, and (ii) only upon the terms and conditions set
forth in that certain letter agreement dated of even date herewith between Borrower and Lender (the “2/1/05 Forbearance Agreement”), to extend the forbearance period. 

  
 ACCORDINGLY, for good and valuable consideration, the parties hereby agree as
follows: 
  
 1. Definitions. Unless otherwise defined in this
Agreement or in the above Recitals, all capitalized terms used herein shall have the meanings ascribed to them in the “Forbearance Agreements” as that term is defined in the 2/1/05 Forbearance Agreement. In addition, the
following capitalized terms shall have the meanings set forth below: 
  
 1.1 “Emergystat Closing Date” means the date on which the legal ownership of certain stock of Emergystat, Inc. and of Emergystat of Sulligent, Inc. is transferred to Southland Health Services pursuant to the
Emergystat Purchase Agreement. 
  
 1.2 “Event of
Default” has the meaning given to it in Section 11 below. 
  
 1.3 “GE Healthcare”. means GE Healthcare Financial Services and/or its affiliates, GE Healthcare itself being affiliated with Lender. 
  
 1.4 “Governmental Authority” means and includes any
federal, state, District of Columbia, county, municipal, or other government and any department, commission, board, bureau, agency or instrumentality thereof, whether domestic or foreign. 
  
 1.5 “Material Adverse Effect” means any fact, event or circumstance that, alone or when taken with
other events or conditions occurring or existing concurrently with such event or condition (i) has or is reasonably expected to have a material adverse effect on the business, operations, condition (financial or otherwise), assets, liabilities,
prospects, or properties of Purchaser; (ii) has or is reasonably expected to have any material adverse effect on the validity or enforceability of this Agreement; (iii) materially impairs or is reasonably expected to materially impair the ability of
Purchaser to perform under this Agreement; (iv) materially impairs or is reasonably expected to materially impair the ability of Lender to enforce its rights and remedies under this Agreement; or (v) has or is reasonably expected to have any
material adverse effect on Lender’s Collateral. 
  
 1.6
“paid in full” or “payment in full, means the receipt of cash or cash equivalents equal to the full amount of the required payment, including, without limitation, the principal amount, all interest thereon,
and all fees and costs actually and reasonably incurred, to the date of such payment; provided, however, that any such payment in full to Lender shall be indefeasible and any such cash or cash equivalents that Lender may be
required to return or disgorge for any reason shall not be deemed to have been paid to Lender for the purposes of determining whether Lender has been “paid in full”, or received “payment in full”. 
  

 - 2 - 

 1.7 “Person” means an individual, partnership, corporation, trust, joint venture,
joint stock company, limited liability company, association, unincorporated organization, Governmental Authority, or any other entity. 
  
 1.8 “Southland Closing Date” means the date on which the legal ownership of Southland Health Services is transferred to the
Purchaser pursuant to the Southland Purchase Agreement. 
  
 2. Recitals.
By this reference the above Recitals are incorporated into and made a part of the body of this Agreement. 
  
 3. Payment of Borrower’s Obligations 
  
 3.1 $500,000 Payment. On the earlier to occur of: (i) the fifteenth day following the Emergystat Closing Date, or (ii) February 15, 2005, Borrower shall pay to Lender, and Purchaser shall cause Borrower
to pay to Lender, and Lender shall have received payment in full, in immediately available funds, of an amount equal to Five Hundred Thousand Dollars ($500,000.00) (the “$500,000 Paydown”). 
  
 3.2 Payment In Full. On or before March 15, 2005, Borrower
shall pay to Lender, and Purchaser shall cause Borrower to pay to Lender, and Lender shall have received payment in full, in immediately available funds, of the entire amount of the Obligations owing to Lender, as determined by Lender in accordance
with the Loan Agreement, the Other Loan Documents, and the Forbearance Agreements. 
  
 4. Payment of GE Healthcare Obligations. On or before March 30, 2005, Borrower shall pay to GE Healthcare, and Purchaser shall cause Borrower to pay to GE Healthcare, and GE Healthcare shall have
received payment in full of, in immediately available funds, either: (i) the entire amount of the GE Healthcare Obligations (as that term, not the amount, is defined in that certain forbearance letter agreement dated January 21, 2005 between
Borrower and Lender), or (ii) an amount equal to Two Hundred Fifty Thousand Dollars ($250,000.00). In the event of a payment to GE Healthcare under subdivision (ii) of this Section 4 and not a payment under subdivision (i) hereof, then on or
before April 29, 2005, Borrower shall pay to GE Healthcare, and Purchaser shall cause Borrower to pay to GE Healthcare, and GE Healthcare shall have received payment in full, in immediately available funds, of the entire amount of the GE Healthcare
Obligations. Borrower shall continue to make regularly scheduled payments when due to GE Healthcare with respect to the GE Healthcare Obligations until such time when GE Healthcare shall have received payment in full of the entire amount of the GE
Healthcare Obligations, and nothing contained in this Agreement shall be construed to excuse or extend the time or times when such regularly scheduled payments are due. 
  
 5. Obligation Amounts. Each of Borrower and Lender acknowledges and agrees that Schedule “1” attached hereto
(and incorporated herein by this reference) accurately and correctly states the amount of the Obligations due and owing from Borrower to Lender as of February 1, 2005. Each of Borrower and Lender acknowledges and agrees that Schedule
“2” attached hereto (and incorporated herein by this reference) accurately and correctly states the amount of the GE Healthcare Obligations due and owing from Borrower to GE Healthcare as of February 1, 2005. Each of Purchaser and
Borrower understands and acknowledges that: (i) the 
  

 - 3 - 

 amount of the Obligations may increase between February 1, 2005, and the date of any payment in full of the Obligations,
(ii) the amount of the GE Healthcare Obligations may increase between February 1, 2005, and the date of any payment in full of the GE Healthcare Obligations, and (iii) Borrower, and pursuant to Sections 11.1 through 11.7 of this Agreement,
Purchaser, shall be obligated to pay the entire amount of the Obligations and the GE Healthcare Obligations as of the actual date of any payment in full of the Obligations and the GE Healthcare Obligations. 
  
 6. Consent. Lender’s consent to the Emergystat Stock Purchase and the
Southland Stock Purchase is subject to the full satisfaction of the following conditions: (i) Borrower and Purchaser have executed and delivered this Agreement to Lender, (ii) Borrower has executed and delivered to Lender the 2/1/05 Forbearance
Agreement, (iii) both the Emergystat Closing Date and the Southland Closing Date occur not later than three (3) business days after the execution and delivery of this Agreement, (iv) prior to the Emergystat Closing Date, there is no modification or
amendment to the Purchase Agreement which would change the nature of the purchase from a stock sale to sale of any of Borrower’s assets constituting Lender’s Collateral, and none of the transactions contemplated by the Emergystat Purchase
Agreement or the Southland Purchase Agreement in any way affects the current legal ownership of any of Borrower’s assets, Lender’s Collateral, or the perfection or priority of Lender’s security interests therein.

  
 7. Purchase Agreement; Stock Purchase. Each of Borrower and
Purchaser acknowledges and agrees that Lender has not been privy to or had any involvement with respect to either the Emergystat Purchase Agreement or the Southland Purchase Agreement, the terms thereof, the initiation thereof, or the negotiations
relating thereto. 
  
 8. GE Healthcare Forbearance
Documents. The Emergystat Stock Purchase constitutes a default under the GE Healthcare Documents. As consideration for the request by Borrower and Purchaser for GE Healthcare’s forbearance from exercising its rights and remedies on
account of the Emergystat Stock Purchase, Borrower shall, and Purchaser shall cause Borrower to, execute and deliver to GE Healthcare each and all of the GE Healthcare Forbearance Documents, all in form, content, and detail acceptable to GE
Healthcare in its sole discretion, upon GE Healthcare’s request, including, but not limited to, documents listed in subsections (i), (ii), and (iii) of Paragraph 4(B) set forth in the Twentieth Forbearance Agreement dated January 21, 2005. By
this express reference, the text of such subsections (i), (ii), and (iii) are incorporated into and made a part of this Section 8 of this Agreement. Each of Borrower and Purchaser understands and acknowledges that notwithstanding any
provision set forth in this Agreement, GE Healthcare does and shall reserve all of its rights and remedies under the GE Healthcare Documents with respect to the Emergystat Stock Purchaser and otherwise. 
  
 9. Resolution of Enforcement Notice. Purchaser shall cause Borrower to perform
fully and timely the requirements set forth in Paragraph C.2 of the 2/1/05 Forbearance Agreement. In addition, in the event Purchaser has any communications (whether electronic, telephonic, or otherwise) with the IRS with respect to the Enforcement
Notice, Purchaser shall immediately notify Lender of such communications and provide to Lender true and complete copies of all such documented communications, including both communications received by Purchaser and communications transmitted by
Purchaser. 
  

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 10. Representations; Warranties. The representations and warranties made in this Section 10 by
Purchaser are being made to induce Lender to enter into this Agreement and into the 2/1/05 Forbearance Agreement, and Lender has relied, and will continue to rely, upon such representations and warranties from and after the execution and delivery of
this Agreement. Such representations and warranties shall survive until all of the Obligations owed to Lender by Borrower are indefeasibly paid in full. Purchaser represents and warrants to Lender as follows: 
  
 10.1 Due Diligence. Purchaser is a sophisticated buyer with
respect to the Emergystat Stock Purchase, the Emergystat Purchase Agreement, the Southland Stock Purchase, and the Southland Purchase Agreement and has adequate information concerning the status of the Borrower’s Obligations to Lender and the
GE Healthcare Obligations, in order to make an informed decision regarding Purchaser’s undertaking the obligations set forth in this Agreement. Purchaser has not relied upon statements from Lender or Lender’s counsel (other than any
expressly stated in this Agreement) but instead has performed and relied upon Purchaser’s own independent investigations, inquiries, and evaluations, including, without limitation, meetings with Borrower, all of which were in such depth as
Purchaser deemed appropriate under the circumstances. Purchaser has not sought nor received any information, financial or otherwise, from Lender regarding Borrower. 
  
 10.2 Capital Stock Sale. The transaction contemplated by the Emergystat Purchase Agreement is a purchase of no
less than ninety percent (90%) of the issued and outstanding capital stock of Emergystat, Inc. and Emergystat of Sulligent, Inc., and the transaction contemplated by the Southland Purchase Agreement is the purchase of 100% of the issued and
outstanding capital stock of Southland Health Services. Neither the Emergystat Purchase Agreement nor the Southland Purchase Agreement provides for the purchase of any assets of Borrower or any assets constituting Lender’s Collateral securing
the Obligations. The Purchase Agreement does not provide for the purchase of any assets of Borrower or any assets constituting Lender’s Collateral securing the Obligations and does not in any way affect the perfection or priority of
Lender’s security interests therein. 
  
 10.3 Financial
Resources. Purchaser has sufficient assets and financial resources to perform its obligations under this Agreement, including, but not limited to, a Twelve Million Dollar equity line with Cornell Capital Partners, LP (the “Equity
Line”). No event of default under the Equity Line, or event that, with the giving of notice or lapse of time or both, could become an event of default thereunder, has occurred and is continuing. 
  
 10.4 No Default. Except as disclosed in the Quarterly Report
Under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2004 (a true and complete copy of the such disclosures is attached hereto as Schedule 3 and by this reference made a part hereof),
Purchaser is not in default under or with respect to any obligation or agreement in any respect, and no event that, with the giving of notice or lapse of time or both, could become an event of default thereunder, has occurred and is continuing,
which would have a Material Adverse Effect. 
  
 10.5
Organization; Good Standing. Purchaser (i) is a corporation duly organized, validly existing, and in good standing under the laws of the state of Nevada, (ii) is in good standing as a foreign corporation in each jurisdiction in which
the character of the properties owned or leased by it or the nature of its business makes such qualification necessary, (iii) has 
  

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 the corporate power and authority to own its assets and transact the business in which it is engaged, and (iv) has
obtained all certificates, licenses and qualifications required under the laws, regulations, ordinances, or orders of public authorities necessary for the ownership and operation of all of its properties and transaction of all of its business, all
of which are in the name of Purchaser. Purchaser’s organizational identification number is 94-3371514. 
  
 10.6 Authority. Purchaser has full corporate power and authority to enter into, execute, and deliver this Agreement and to perform its
obligations under this Agreement, and to incur and perform the obligations hereunder, all of which have been duly authorized by all necessary corporate action. No consent or approval of shareholders of Purchaser and no consent, approval, filing or
registration with any Governmental Authority is required as a condition to the validity of this Agreement or the performance by Purchaser of its obligations hereunder. 
  
 10.7 No Conflicts. Purchaser’s execution and delivery of this Agreement and of the Purchase Agreement do
not, and the performance of its obligations hereunder and thereunder will not, violate, conflict with, or constitute a default under: (i) any provision of Purchaser’s articles of incorporation or bylaws, (ii) any provision of any law, rule, or
regulation applicable to Purchaser, (iii) any indenture or other agreement or instrument to which Purchaser is a party or by which Purchaser or its property is bound, or (iv) any judgment, order or decree of any court, arbitration tribunal, or
Governmental Authority having jurisdiction over Purchaser which is applicable to Purchaser. 
  
 10.8 Compliance with Laws. Purchaser has obtained and maintains all governmental consents, franchises, certificates, licenses, authorizations, approvals and permits, the lack of which would have a
Material Adverse Effect. Purchaser is in compliance in all material respects with all applicable federal, state, local and foreign statutes, orders, regulations, rules and ordinances. 
  
 10.9 Name; Address. Purchaser’s exact legal name is as set forth in the Preamble to this Agreement.
Purchaser has not conducted business under or used any other name other than as set forth in the Preamble to this Agreement. The chief executive office and principal place of business for Purchaser is located at 2344 Woodridge Avenue, Kingsport,
Tennessee 37664. 
  
 10.10 Litigation. Except as
disclosed in the Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2004 (a true and complete copy of the such disclosures is attached hereto as Schedule 3 and by
this reference made a part hereof), there are no actions, suits, proceedings or investigations pending or threatened against Purchaser before any court or arbitrator or before or by any Governmental Authority which, in any one case or in the
aggregate, if determined adversely to the interests of Purchaser, could have a Material Adverse Effect. Purchaser is not in default with respect to any order of any court, arbitrator, or Governmental Authority applicable to Purchaser or its
properties. 
  
 10.11 Taxes. Purchaser has filed all
federal, state and other tax returns which are required to be filed, and has paid all taxes shown as due on those returns and all assessments, fees and other amounts due as of the date of this Agreement. All tax liabilities of Purchaser are
adequately provided for such Purchaser’s books. No tax liability has been asserted by the Internal Revenue Service or other taxing authority against Purchaser for taxes in excess of those already paid. 
  

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 10.12 Benefit to Purchaser. Purchaser acknowledges and agrees that following the Emergystat
Closing Date and the Southland Closing Date, the entities comprising Borrower will be indirect subsidiaries of Purchaser, and Purchaser will own, indirectly, no less than ninety percent (90%) of Emergystat, Inc. and ninety percent (90%) of
Emergystat of Sulligent, Inc. Because of the business relations between Purchaser and Borrower, it will be of direct benefit to Purchaser that it enter into this Agreement and undertake its obligations set forth herein and to assure the payment and
performance of Borrower’s obligations under this Agreement, and such entry into this Agreement will inure to the financial benefit of Purchaser. 
  
 10.13 2/1/05 Forbearance Agreement. Purchaser: (i) has received a true and complete copy of the 2/1/05 Forbearance Agreement, (ii) has read
the same, and (iii) fully understands the obligations of Borrower thereunder. 
  
 10.14 Acknowledgement. Purchaser acknowledges and agrees that: (i) all amounts asserted to be due by Lender under the Loan Agreement, the Other Loan Documents, and the Forbearance Agreements, and all
amounts asserted to be due by GE Healthcare under its installment agreements, are justly due and owing to Lender and to GE Healthcare, respectively (including, but not limited to, all amounts stated in Schedules “1” and
“2” attached hereto), without any defense of Borrower or any right of Borrower to set off, recoup, or counterclaim (and, upon acceptance of any advance(s), including, but not limited to, each Twentieth Overline Funding, (ii) the Loan
Agreement, the Other Loan Documents, the Forbearance Agreements, and the GE Healthcare Documents are valid and enforceable against each entity comprising Borrower in accordance with their respective terms, and are not subject to avoidance under
applicable state law or federal law; and (iii) the liens and security interests granted to Lender in the Collateral pursuant to the Loan Agreement and the Other Loan Documents are valid, enforceable, and properly perfected, and are not subject to
avoidance under applicable state law or federal law. 
  
 11. Purchaser’s Guaranty of Borrower’s Performance 
  
 11.1 To induce Lender to consent to the Emergystat Stock Purchase, subject to the terms and conditions of this Agreement, to enter into the 2/1/05 Forbearance Agreement, and in consideration thereof, Purchaser hereby
unconditionally and irrevocably guarantees to Lender, and to its successors, endorsees, transferees, affiliates, and assigns (collectively encompassed, for purposes of this guaranty by Purchaser set forth in Sections 11.1 through 10.7 hereof,
by references to “Lender”), Borrowers’ prompt and complete payment of the amounts set forth in Sections 3.1, 3.2, and 4 above, when due. 
  

11.2 The obligations of Purchaser under this Agreement shall be an unconditional obligation to make prompt payment and performance to Lender regardless
of the genuineness, validity, regularity or enforceability of any indebtedness or evidence of indebtedness of Borrower to Lender or of other circumstances that might otherwise under the laws of any jurisdiction constitute a legal or equitable
discharge of a surety or a guarantor or a bar (in the nature of a moratorium or otherwise) to the enforcement of Lender’s rights either (i) against Borrower on all or any part of its Obligations or (ii) under this Agreement 
  

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 11.3 Notwithstanding any payment or payments made by Purchaser under this Agreement or any setoff or
application of funds of Purchaser by Lender, Purchaser shall not be entitled to be subrogated to any of the rights of Lender against Borrower or any collateral security or guarantee or right of offset held by Lender for the payment or performance of
the Obligations, nor shall Purchaser seek any reimbursement from Borrower in respect of payments made by Purchaser under this Agreement, until all amounts then owing and any other performance then due to Lender by Borrower for or on account of the
Obligations are paid in full and satisfied in full indefeasibly. 
  
 11.4 Any indebtedness of Borrower now or hereafter owed to or held by Purchaser is hereby subordinated to the indebtedness of Borrower to Lender; and such indebtedness of Borrower to Purchaser to Lender so requests shall be collected,
enforced and received by Purchaser as trustee for Lender and be paid over to Lender on account of the indebtedness of Borrower to Lender but without reducing or affecting in any manner the liability of Purchaser under the other provisions of this
Agreement. 
  
 11.5 The undertaking by Purchaser set forth in this
Agreement is intended to be and shall be construed as a continuing guarantee and shall remain in full force and effect and shall be binding in accordance with and to the extent of its terms upon Purchaser and Purchaser’s successors, and shall
inure to the benefit of Lender, and its successors, endorsees, transferees, and assigns. 
  
 11.6 If all or any part of the Obligations of Borrower to Lender are not paid when due as set forth in this Agreement, Purchaser hereby guarantees that it will pay the same to Lender, upon demand, without set-off or
counterclaim and without reduction by reason of any taxes, levies, imposts, charges and withholdings, restrictions or conditions of any nature that are now or may hereafter be imposed, levied or assessed by any country, political subdivision or
taxing authority, all of which will be for the account of and paid by Purchaser, and Lender need not first proceed to preserve, utilize or exhaust any other right or remedy against Borrower or any other guarantor or any security that Lender may have
to obtain payment. The payment shall be made in immediately available funds to Lender’s office at 2 Bethesda Metro Center, Suite 600, Bethesda, Maryland 20814, Attention: Michael Gardullo, or at such other place as Lender may designate in
writing. 
  
 11.7 In addition, Purchaser hereby covenants that it
will not commence any type of action or proceeding, including, but not limited to, any counterclaim, against either Lender or GE Healthcare with respect to the Obligations, the GE Healthcare Obligations, or the documents evidencing such obligations,
or Sections 11.1 through 11.7 of this Agreement. 
  
 12. Default and
Remedies. (i) Any failure by Purchaser or Borrower, or both, to perform timely under this Agreement, or (ii) any representation or warranty made by Purchaser in this Agreement, any financial statement, or any statement or representation made
in any other certificate, report or opinion delivered to Lender by Purchaser in connection with this Agreement proves to have been incorrect or misleading in any material respect when made, shall constitute an event of default (“Event of
Default”) hereunder. In the event of an Event of Default hereunder, Lender may exercise any and all remedies available to it under this Agreement, the 2/1/05 Forbearance Agreement, at law, and in equity. 
  

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 13. Indemnity. Purchaser hereby indemnifies and agrees to defend (with counsel acceptable to Lender) and
hold harmless Lender, its officers, agents and employees (collectively, “Indemnitee”) from and against any liability, loss, cost, expense (including reasonable attorneys’ fees and expenses), claim, damage, suit, action or proceeding
ever suffered or incurred by Lender or in which Lender may ever be or become involved (whether as a party, witness or otherwise) (i) arising from Purchaser’s failure to observe, perform or discharge any of its covenants, obligations, agreements
or duties under this Agreement, (ii) arising from the breach of any of the representations, warranties, or covenants contained in this Agreement, (iii) by reason of this Agreement or the transactions contemplated hereby, or (iv) relating to claims
of any Person with respect to the Emergystat Purchase Agreement, the Emergystat Stock Purchase, the Southland Purchase Agreement, or the Southland Stock Purchase. Notwithstanding any contrary provision in this Agreement, the obligation of Purchaser
under this Section 12 shall survive the payment in full of the Obligations and the termination of this Agreement. 
  
 14. Miscellaneous. 
  
 14.1 Amendment. This Agreement can be amended or terminated only explicitly in a writing signed by all parties to this Agreement.

  
 14.2 Waiver; Remedies Cumulative. A waiver
signed by Lender shall be effective only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of Lender’s rights or remedies. All rights and remedies of
Lender shall be cumulative and may be exercised singularly or concurrently, at Lender’s option, and the exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other.

  
 14.3 Successors and Assigns. This Agreement
shall be binding upon Purchaser and Borrower and their respective successors and assigns, except that neither Purchaser nor Borrower may assign any of their rights or duties under this Agreement without the prior written consent of Lender. This
Agreement shall be binding upon and inure to the benefit of Lender and its successors and assigns. All representations and warranties contained in this Agreement shall survive the execution, delivery and performance of this Agreement and the payment
in full of the Obligations. 
  
 15. Governing Law. This Agreement
shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of Maryland. 
  
 16. Severability. If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability
shall not affect other provisions or applications which can be given effect and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained in this Agreement or prescribed by this
Agreement. 
  
 17. Interpretation; Headings. No provision of this
Agreement shall be interpreted or construed against any party because that party or its legal representative drafted that provision. Each of the parties hereto shall be deemed to have drafted this Agreement. The rule of law that provides that
ambiguities, inconsistencies and the like shall be construed against the author of a document or contract shall not apply to this Agreement. The titles of the Sections of this 
  

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 Agreement are for convenience of reference only and are not to be considered in construing this Agreement. Any pronoun
used in this Agreement shall be deemed to include singular and plural and masculine, feminine and neuter gender as the case may be. The words “herein,” “hereinabove,” “hereof,” and “hereunder” shall be deemed
to refer to this entire Agreement, except as the context otherwise requires. 
  
 18. Authorized. This Agreement has been duly and validly authorized by all necessary action on the part of all parties hereto. 
  
 19. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but which counterparts together
shall constitute but one and the same instrument. 
  
 THE PARTIES HERETO HEREBY (I) CONSENT TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF MARYLAND IN CONNECTION WITH ANY CONTROVERSY RELATED TO THIS AGREEMENT; (II) WAIVE ANY ARGUMENT THAT VENUE IN ANY
SUCH FORUM IS NOT CONVENIENT; AND (III) AGREE THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 

 
 EACH PURCHASER AND BORROWER WAIVES ITS RIGHT TO A JURY TRIAL WITH
RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS, REMEDIES, OBLIGATIONS, OR DUTIES HEREUNDER, OR THE PERFORMANCE OR ENFORCEMENT HEREOF OR THEREOF. Except as prohibited by law, each of
Purchaser and Borrower waives any right which it may have to claim or recover in any litigation referred to in the preceding sentence any special, exemplary, punitive or consequential damages or any damages other than, or in addition to, actual
damages. Each Purchaser and Borrower certifies that neither Lender nor any representative, agent or attorney of Lender has represented, expressly or otherwise, that Lender would not, in event of litigation, seek to enforce the foregoing waivers or
other waivers contained in this Agreement. 
  
 IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date and year first above written. 
  

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	“LENDER”	  	“BORROWER”
		
	GENERAL ELECTRIC CAPITAL CORPORATION, A DELAWARE CORPORATION	  	EMERGYSTAT, INC, A MISSISSIPPI CORPORATION
		
	 By: /s/ Michael G. Gordullo

	  	 By: /s/ Glenn Crawford

	Its Senior Vice President	  	Title President
		
	 	  	EMERGYSTAT OF SULLIGENT, INC., AN ALABAMA CORPORATION
		
	 	  	 By /s/ Glenn Crawford

	 	  	Title President
		
	 	  	EXTENDED EMERGENCY SERVICES, INC., AN ALABAMA CORPORATION
		
	 	  	MED EXPRESS OF MISSISSIPPI, LLC, A MISSISSIPPI LIMITED LIABILITY COMPANY
		
	 	  	 By /s/ Glenn Crawford

	 	  	Title President
		
	 	  	“PURCHASER”
		
	 	  	BAD TOYS HOLDINGS, INC., A NEVADA CORPORATION
	 	  	 By: /s/ Larry N. Lunan

	 	  	Title: President

  
 CONSENT AND
AGREEMENT OF GUARANTOR 
  
 This Consent and Agreement of Guarantor is
executed by the undersigned Johnny Glenn Crawford (the “Guarantor”) with respect to the foregoing Tri-Party Agreement. Guarantor acknowledges receiving and reading the foregoing Tri-Party Agreement. Guarantor hereby consents
to the Tri-Party Agreement and to Borrower’s entering into and performing under the foregoing Tri-Party Agreement. Guarantor further acknowledges and agrees that the Tri-Party Agreement has no affect upon the Guaranty Documents which documents
shall continue in full force and effect. 
  

			
	Dated as of the foregoing Tri-Party Agreement.	 	 /s/ Johnny Glenn Crawford

	 	 	JOHNNY GLENN CRAWFORD
	 	 	GUARANTOR

  

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