Document:

Unassociated Document

    Exhibit
10.9

     

    
 

    AMENDED AND
RESTATED

    EMPLOYMENT
AGREEMENT

     

    This
Amended and Restated Employment Agreement, dated as of November 25, 2009 (the
“Agreement”),
is by and between CorMedix Inc., a Delaware corporation with principal executive
offices at 86 Summit Avenue, Suite 301, Summit, NJ  07901-3647 (the
“Company”), and
John C. Houghton, residing at 18 Perry Road,
Annandale, NJ 08801 (the “Executive”).

     

    WITNESSETH:

     

    WHEREAS, the Company and
Executive are parties to that certain existing employment agreement, dated as of
December 22, 2006 (the “Existing Employment
Agreement”), pursuant to which Executive originally served as the
Company’s Chief Business Officer;

     

    WHEREAS, Executive was
promoted to President and Chief Executive Officer on May 29, 2009, and the
parties wish to amend and restate the Existing Employment Agreement to reflect
Executive’s employment by the Company as its President and Chief Executive
Officer, and the Executive desires to serve the Company in those capacities,
upon the terms and subject to the conditions contained in this
Agreement;

     

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby agree as follows:

     

    1.           Employment.

    

    (a)           Services.  The
Executive will be employed by the Company as its President and Chief Executive
Officer. The Executive will report to the Board of Directors of the Company (the
“Board”) and
shall perform such duties as are consistent with his position as President and
Chief Executive Officer (the “Services”).  Executive
agrees to carry out and abide by all lawful directions of the Board consistent
with his position as Chief Executive Officer and President.

     

    (b)           Acceptance.  The
Executive hereby accepts such employment and agrees to render the
Services.

    

    2.           Term. The Executive's
employment under this Agreement (as it may be extended, the “Term”) shall commence
on the date hereof (the “Commencement Date”)
and shall continue for a term of two (2) years, unless sooner terminated
pursuant to Section 9 of this Agreement; provided, however, that the Term shall
be extended automatically for additional one-year periods unless one party shall
advise the other in writing at least sixty (60) days before the initial
expiration of the Term or an anniversary date thereof that this Agreement shall
no longer be so extended.  Notwithstanding anything to the contrary
contained herein, the provisions of this Agreement specified in Sections 6, 7,
10, and 11 shall survive the expiration or termination hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.           Best Efforts; Place of
Performance.

    

    (a)           The
Executive shall devote substantially all of his business time, attention and
energies to the business and affairs of the Company and shall use his best
efforts to advance the best interests of the Company and shall not during the
Term be actively engaged in any other business activity, whether or not such
business activity is pursued for gain, profit or other pecuniary advantage, that
will interfere with the performance by the Executive of his duties hereunder or
the Executive’s availability to perform such duties or that the Executive knows,
or should reasonably know, will adversely affect, or negatively reflect upon,
the Company.

    

    (b)           The
duties to be performed by the Executive hereunder shall be performed primarily
at the executive offices of the Company in Summit, New Jersey, or wherever the
principal executive offices of the Company shall hereafter be located, subject
to reasonable travel requirements on behalf of the Company, or such other place
as the Board may reasonably designate.  Notwithstanding the foregoing,
the Executive’s primary place of business may not be relocated outside of the
New York metropolitan area without his written consent.

     

    4.           Directorship.  The
Company shall use its best efforts to cause the Executive to be elected as a
member of its Board throughout the Term and shall include him in the management
slate for election as a director at every stockholders meeting during the Term
at which his term as a director would otherwise expire.  The Executive
agrees to accept election, and to serve during the Term, as director of the
Company, without any compensation therefore other than as specified in this
Agreement.

    

    5.           Compensation.  As
full compensation for the performance by the Executive of his duties under this
Agreement, the Company shall pay the Executive as follows:

    

    (a)           Base
Salary.  The Company shall pay the Executive an annual salary
of Two Hundred Fifty Thousand Dollars ($250,000) (as it may be increased from
time to time, the “Base Salary”), less
applicable withholdings and deductions. Payment shall be made in accordance
with the Company’s normal payroll practices.  The Board shall annually
review the Base Salary to determine whether an increase in the amount thereof is
warranted.

    

    (b)           Discretionary
Bonus.  At the sole discretion of the Board, the Company shall
pay the Executive an additional cash bonus (the “Discretionary Bonus”)
in an amount equal to up to thirty percent (30%) of his Base Salary, based upon
the attainment by the Executive and the Company of certain financial, clinical
development and business milestones (the “Milestones”) as
established annually by the Board (or a committee thereof), after consultation
with the Executive.  No formal Milestones will be established unless
and until the Company consummates an equity financing sufficient in the good
faith determination of the Board to fund the Company’s clinical development
programs, and any bonus will be based on an assessment of overall contribution
and performance by the Board, after consultation with the Executive, as well as
the Company’s existing cash-on-hand.  Milestones for each calendar
year following the consummation of such financing shall be established by the
Board, after consultation with the Executive, not more than sixty (60) days
following the beginning of each calendar year.  The Discretionary
Bonus, if any, shall be payable in cash as a lump-sum payment no later than
seventy-five (75) days after the end of each calendar year.

    
      
         

      

      
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    (c)           IPO and Market
Capitalization Bonuses.

    

    (i)            Within
thirty (30) days after the closing of the Company’s initial public offering
(“IPO”), the
Company shall pay to the Executive a onetime cash bonus of Fifty Thousand
Dollars ($50,000).

    

    (ii)           The
first time that the Market Capitalization (as defined below) of the Company
shall exceed One Hundred Twenty-Five Million Dollars ($125,000,000) for a period
of thirty (30) consecutive trading days during the Term and the average trading
volume of the Common Stock during such period is at least Fifty Thousand
(50,000) shares per trading day (the “First Capitalization
Milestone”), then the Company shall pay to the Executive a onetime cash
bonus of Two Hundred Fifty Thousand Dollars ($250,000), payable within ten (10)
days of the occurrence of the First Capitalization Milestone.

    

    (iii)          The
first time that the Market Capitalization of the Company shall exceed Two
Hundred Fifty Million Dollars ($250,000,000) for a period of thirty (30)
consecutive trading days during the Term and the average trading volume of the
Common Stock during such period is at least One Hundred Thousand (100,000)
shares per trading day (the “Second Capitalization
Milestone”), then the Company shall pay to the Executive a onetime cash
bonus of Three Hundred Fifty Thousand Dollars ($350,000), payable within ten
(10) days of the occurrence of the Second Capitalization Milestone.

    

    (iv)          The
first time that the Market Capitalization of the Company shall exceed Five
Hundred Million Dollars ($500,000,000) for a period of thirty (30) consecutive
trading days during the Term and the average trading volume of the Common Stock
during such period is at least One Hundred Thousand (100,000) shares per trading
day (the “Third
Capitalization Milestone”), then the Company shall pay to the Executive a
onetime cash bonus of Five Hundred Thousand Dollars ($500,000), payable within
ten (10) days of the occurrence of the Third Capitalization
Milestone.

    

    (v)           The
first time that the Market Capitalization of the Company shall exceed One
Billion Dollars ($1,000,000,000) for a period of thirty (30) consecutive trading
days during the Term and the average trading volume of the Common Stock during
such period is at least one hundred thousand (100,000) shares per trading day
(the “Fourth
Capitalization Milestone” and together with the First Capitalization
Milestone, the Second Capitalization Milestone and the Third Capitalization
Milestone, collectively the “Market Capitalization
Milestones” and each individually, a “Market Capitalization
Milestone”), then the Company shall pay to the Executive a onetime cash
bonus of One Million Dollars ($1,000,000), payable within 10 days of the
occurrence of the Fourth Capitalization Milestone.

    

    (vi)           For
purposes of this Agreement, “Market
Capitalization” shall be determined by multiplying the total shares of
the Company’s Common Stock on a Fully-Diluted basis by the last reported closing
price of the Company’s Common Stock on a nationally recognized exchange, NASDAQ,
or in the over-the-counter market as reported by the National Quotation Bureau
or similar organization; and (“Fully-Diluted Basis”
shall mean the number of shares of Common Stock then outstanding, then issuable
directly or indirectly upon exercise of rights, options, or warrants, or then
issuable directly or indirectly upon conversion or exchange of convertible
securities or evidences of indebtedness, to the extent those derivative
securites are in-the-money, and calculated on a “treasury-basis”
method).

    
      
         

      

      
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    (vii)          The
Executive may qualify for more than one bonus for a Market Capitalization
Milestone based on the same trading period, but not more than one of each level
of Market Capitalization Milestone.

    

    (d)           Withholding.  The
Company shall withhold all applicable federal, state and local taxes and social
security and such other amounts as may be required by law from all amounts
payable to the Executive under this Section 5.

    

    (e)           Initial Option
Grant.  As additional compensation for the
Services to be rendered by the Employee pursuant to this Agreement, upon the
completion of the IPO, the Company shall grant to the Employee an option to
purchase a number of shares of common stock, par value $0.001 (the “Common Stock”), of
the Company representing five percent (5.0%) of the Common Stock of the Company
outstanding upon completion of the IPO on a fully diluted basis.  The
option shall be granted pursuant to the terms of the Company’s 2006 Stock
Incentive Plan, as it may be amended from time to time, with an exercise price
per share equal to the price at which shares of Common Stock of the Company are
sold in the IPO and shall vest in three equal annual installments with the first
installment vesting on the first anniversary of the grant date.

    

    (f)           Expenses.  The
Company shall reimburse the Executive for all normal, usual and necessary
expenses incurred by the Executive in furtherance of the business and affairs of
the Company, including reasonable travel and entertainment, upon timely receipt
by the Company of appropriate vouchers or other proof of the Executive’s
expenditures and otherwise in accordance with any expense reimbursement policy
as may from time to time be adopted by the Company.  To the extent
that any such reimbursement would be taxable, the amount of expenses eligible
for reimbursement may not affect the expenses eligible for reimbursement in any
other year; the reimbursement shall be made on or before the last day of the
Executive’s taxable year following the year on which the expense was incurred;
and the right to reimbursement is not subject to liquidation or exchange for
another benefit.

    

    (g)           Other
Benefits.  The Executive shall be entitled to all rights and
benefits for which he shall be eligible under any benefit or other plans
(including, without limitation, dental, medical, medical reimbursement and
hospital plans, pension plans, employee stock purchase plans, profit sharing
plans, bonus plans, prescription drug reimbursement plans, short and long term
disability plans, life insurance and other so-called "fringe" benefits) as the
Company shall make available to its senior executives from time to
time.  Executive shall be designated as a named insured on directors’
and officers’ liability insurance of the Company.

    

    (h)           Vacation.  The
Executive shall be entitled to a vacation of four (4) weeks per annum, of which
no more than two (2) weeks may be taken consecutively, in addition to holidays
observed by the Company and reasonable periods of paid personal and sick leave
in accordance with the Company’s policies for senior executives of the
Company.

    
      
         

      

      
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    6.           Confidential Information and
Inventions.

    

    (a)           The
Executive recognizes and acknowledges that in the course of his duties he is
likely to receive confidential or proprietary information of the Company, its
affiliates or third parties with whom the Company or any such affiliates has an
obligation of confidentiality.  Accordingly, during and after the
Term, the Executive agrees to keep confidential and not disclose or make
accessible to any other person or use for any other purpose other than in
connection with the fulfillment of his duties under this Agreement, any
Confidential and Proprietary Information owned by, or received by or on behalf
of the Company or any of its affiliates.  “Confidential and
Proprietary Information” shall include, but shall not be limited to,
confidential or proprietary scientific or technical information, data, formulas
and related concepts, business plans (both current and under development),
client lists, promotion and marketing programs, trade secrets, or any other
confidential or proprietary business information relating to development
programs, costs, revenues, marketing, investments, sales activities, promotions,
credit and financial data, manufacturing processes, financing methods, plans or
the business and affairs of the Company or of any affiliate or client of the
Company.  The Executive expressly acknowledges that the Confidential
and Proprietary Information constitutes a protectable business interest of the
Company.  The Executive agrees: (i) not to use any such Confidential
and Proprietary Information for himself or others; and (ii) not to take any
Company material or reproductions (including but not limited to writings,
correspondence, notes, drafts, records, invoices, technical and business
policies, computer programs or disks) thereof from the Company’s offices at any
time during his employment by the Company, except as required in the execution
of the Executive’s duties to the Company, unless and until such Confidential and
Proprietary Information has become public knowledge without fault by the
Executive.  The Executive agrees to return immediately all Company
material and reproductions (including but not limited, to writings,
correspondence, notes, drafts, records, invoices, technical and business
policies, computer programs or disks) thereof in his possession to the Company
upon request and in any event immediately upon termination of
employment.

    

    (b)           Except
with prior written authorization by the Company, the Executive agrees that
during the Term and thereafter, he will not disclose or publish:

    

    (i)           any
of the Confidential and Proprietary Information; or

    

    (ii)          any
confidential, scientific, technical or business information of any other party
to whom the Executive knows, or should reasonably know, that the Company or any
of its affiliates owes an obligation of confidence.

    

    (c)           The
Executive agrees that all inventions, discoveries, improvements and patentable
or copyrightable works (“Inventions”)
initiated, conceived or made by him, either alone or in conjunction with others,
during the Term shall be the sole property of the Company to the maximum extent
permitted by applicable law and, to the extent permitted by law, shall be “works
made for hire” as that term is defined in the United States Copyright Act (17
U.S.C.A., Section 101).  The Company shall be the sole owner of all
patents, copyrights, trade secret rights, and other intellectual property or
other rights in connection therewith; provided, however that this Section 6(c)
shall not apply to Inventions which are not directly or indirectly related to
the business of the Company and which are made and conceived by the Executive
not during normal working hours, not on the Company’s premises and not using the
Company’s tools, devices, equipment or Confidential and Proprietary
Information.  Subject to the foregoing, the Executive hereby assigns
to the Company all right, title and interest he may have or acquire in all
Inventions; provided, however, that the Board may in its sole discretion agree
to waive the Company’s rights pursuant to this Section 6(c).

    
      
         

      

      
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    (d)           Executive
agrees to cooperate fully with the Company, both during and after his employment
with the Company, with respect to the procurement, maintenance and enforcement
of copyrights, patents, trademarks and other intellectual property rights (both
in the United States and foreign countries) relating to such Inventions. 
Executive shall sign all papers, including, without limitation, copyright
applications, patent applications, declarations, oaths, formal assignments,
assignments of priority rights and powers of attorney, which the Company may
deem necessary or desirable in order to protect its rights and interests in any
Inventions.  Executive further agrees that if the Company is unable, after
reasonable effort, to secure Executive’s signature on any such papers, any
officer of the Company shall be entitled to execute such papers as his agent and
attorney-in-fact and Executive hereby irrevocably designates and appoints each
officer of the Company as his agent and attorney-in-fact to execute any such
papers on his behalf and to take any and all actions as the Company may deem
necessary or desirable in order to protect its rights and interests in any
Inventions, under the conditions described in this paragraph.

    

    (e)           The
Executive acknowledges that while performing the Services, the Executive may
locate, identify and/or evaluate patented or patentable inventions having
commercial potential in the fields of pharmacy, pharmaceutical, biotechnology or
healthcare which the Executive knows or should reasonably know may be of
potential interest to the Company or one of its subsidiaries (the “Third Party
Inventions”).  The Executive understands, acknowledges and
agrees that all rights to, interests in or opportunities regarding, all
Third-Party Inventions identified by the Company, any of its affiliates or
either of the foregoing persons’ officers, directors, employees (including the
Executive), agents or consultants during the Term and thereafter shall be and
remain the sole and exclusive property of the Company or such affiliate and the
Executive shall have no rights whatsoever to such Third-Party Inventions and
will not pursue for himself or for others any transaction relating to the
Third-Party Inventions which is not on behalf of the Company unless the Company
has expressly abandoned its interest in such Third Party Inventions in
writing.

    

    (f)           Executive
will not assert any rights to any invention, discovery, idea or improvement
relating to the business of the Company or to his duties hereunder as having
been made or acquired by Executive prior to his work for the Company, except for
the matters, if any, described in Appendix A to this
Agreement.

    

    (g)           During
the Term, if Executive incorporates into a product or process of the Company or
any of its Affiliated Entities anything listed or described in Appendix A, the Company is hereby
granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual,
worldwide license (with the right to grant and authorize sublicenses) to make,
have made, modify, use, sell, offer to sell, import, reproduce, distribute,
publish, prepare derivative works of, display, perform publicly and by means of
digital audio transmission and otherwise exploit as part of or in connection
with any product, process or machine.

    

    (h)           The
Executive agrees that he will promptly disclose to the Company all Inventions
initiated, made or conceived or reduced to practice, either alone or jointly
with others, during the Term.

    
      
         

      

      
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    (i)      
     The provisions of this Section 6 shall survive any
termination of this Agreement.

    

    7.           Non-Competition,
Non-Solicitation and Non-Disparagement.

    

    (a)           The
Executive understands and recognizes that his services to the Company are
special and unique and that in the course of performing such services the
Executive will have access to and knowledge of Confidential and Proprietary
Information and the Executive agrees that, during the Term and the applicable
Termination Benefits Period (as defined hereinafter), he shall not in any
manner, directly or indirectly, on behalf of himself or any person, firm,
partnership, joint venture, corporation or other business entity (“Person”), enter into
or engage in any business which is engaged in any business directly or
indirectly competitive with the “Business of the Company” (as defined below),
either as an individual for his own account, or as a partner, joint venturer,
owner, executive, employee, independent contractor, principal, agent,
consultant, salesperson, officer, director or shareholder of a Person in such
competitive business within the geographic area in which the Company does
business, which is deemed by the parties hereto to be the United
States.  The Executive acknowledges that, due to the unique nature of
the Company’s business, the Company has a strong legitimate business interest in
protecting the continuity of its business interests and its Confidential and
Proprietary Information and the restriction herein agreed to by the Executive
narrowly and fairly serves such an important and critical business interest of
the Company.  For purposes of this Agreement, “Business of the
Company” shall mean any business relating to the development and
commercialization of therapeutics (including drugs, medical devices and
vaccines) for those indications in which the Company or any of its direct or
indirect subsidiaries is actively engaged or has taken reasonable steps to
become engaged at the time of the termination of the Executive’s employment or
during the two-year period prior thereto.  Notwithstanding the
foregoing, nothing contained in this Section 7(a) shall be deemed to prohibit
the Executive from acquiring or holding, solely for investment, publicly traded
securities of any corporation, some or all of the activities of which are
competitive with the business of the Company so long as such securities do not,
in the aggregate, constitute more than four percent (4%) of any class or series
of outstanding securities of such corporation; and further notwithstanding the
foregoing, nothing contained in this Section 7(a) shall preclude the Executive
from becoming an employee of, or from otherwise providing services to, a
separate division or operating unit of a multi-divisional business or enterprise
(a “Division”) if: (i) the Division by which the Executive is employed, or to
which the Executive provides services, is not engaged in the Business of the
Company, (ii) the Executive does not provide services, directly or indirectly,
to any other division or operating unit of such multi-divisional business or
enterprise which is competitive with the Business of the Company (individually,
a “Competitive Division” and collectively, the “Competitive Divisions”) and
(iii) the Competitive Divisions, in the aggregate, accounted for less than
one-third of the multi-divisional business or enterprise’s consolidated revenues
for the fiscal year, and each subsequent quarterly period, prior to the
Executive’s commencement of employment with or provision of services to the
Division.

    
      
         

      

      
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    (b)          The
Executive hereby acknowledges and agrees that the covenant against competition
provided for pursuant to Section 7(a) is reasonable with respect to its
duration, geographic area and scope. If, at the time of enforcement of this
Section 7, a court holds that the restrictions stated herein are unreasonable
under the circumstances then existing, the Parties hereto agree that the maximum
duration, scope or geographic area legally permissible under such circumstances
will be substituted for the duration, scope or area state herein.

    

    (c)          During
the Term and the applicable Termination Benefits Period (as defined
hereinafter), the Executive shall not, directly or indirectly, without the prior
written consent of the Company:

    

    (i)           solicit
or induce any employee of the Company or any of its affiliates to leave the
employ of the Company or any affiliate; or hire for any purpose any employee of
the Company; or hire any former employee who has left the employment of the
Company or any affiliate of the Company within twelve (12) months of the
termination of such employee’s employment with the Company or any such
affiliate; or hire any former employee of the Company in knowing violation of
such employee’s non-competition agreement with the Company or any such affiliate
(provided, that for purposes of this subsection (c)(i), the parties hereto agree
that “affiliates” shall not be deemed to include any portfolio companies of
Paramount Biosciences, LLC);

    

    (ii)          solicit,
divert or take away, or attempt to divert or take away, the business or
patronage of any agent, client or customer of the Company which was contacted,
solicited or served by the Company during the twelve-month period prior to the
termination of the Executive’s employment with the Company; or

    

    (iii)         without
the consent of the Board, which shall not be unreasonably withheld, solicit or
accept employment or be retained by any Person, who at any time during the
twelve-month period prior to the termination of the Executive’s employment with
the Company, was an agent, client or customer of the Company or any of its
subsidiaries where his position will be related to the business of the Company
or its subsidiaries.

    

    (d)          The
Executive agrees that both during the Term and for a period of five (5) years
thereafter, Executive shall not directly or indirectly disparage, whether or not
truthfully, the name or reputation of the Company or any of its affiliates,
including but not limited to, any officer, director, employee or shareholder of
the Company or any of its affiliates.  Notwithstanding this Section,
nothing contained herein shall apply to statements made by Executive (x) in the
course of his responsibility to evaluate the performance and/or participate in
any investigation of the conduct or behavior of officers, employees and/or
others or (y) as part of any judicial, administrative or other legal action or
proceeding, and nothing shall be construed to limit or impair the ability of
Executive to provide truthful testimony in response to any validly issued
subpoena or to file pleadings or respond to inquiries or legal proceedings by
any government agency to the extent required by applicable law.

    

    (e)          In
the event that the Executive breaches any provisions of Section 6 or this
Section 7 or there is a threatened breach, then, in addition to any other rights
which the Company may have, the Company shall be entitled, without the posting
of a bond or other security, to seek injunctive relief to enforce the
restrictions contained in such Sections.  The Company and the
Executive agree that any such action for injunctive or equitable relief shall be
heard in a state or federal court situated in Somerset County in the State of
New Jersey and each of the parties hereto agrees to accept service of process by
registered or certified mail and to otherwise consent to the jurisdiction of
such courts.

    
      
         

      

      
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    (f)      
     Each of the rights and remedies enumerated in
Section 7(e) shall be independent of the others and shall be in addition to and
not in lieu of any other rights and remedies available to the Company at law or
in equity.  If any of the covenants contained in this Section 7, or
any part of any of them, is hereafter construed or adjudicated to be invalid or
unenforceable, the same shall not affect the remainder of the covenant or
covenants or rights or remedies which shall be given full effect without regard
to the invalid portions.  If any of the covenants contained in this
Section 7 is held to be invalid or unenforceable because of the duration of such
provision or the area covered thereby, the parties agree that the court making
such determination shall have the power to reduce the duration and/or area of
such provision and in its reduced form such provision shall then be
enforceable.

    

    (g)           In
the event that an actual proceeding is brought in equity to enforce the
provisions of Section 6 or this Section 7, the Executive shall not urge as a
defense that there is an adequate remedy at law nor shall the Company be
prevented from seeking any other remedies which may be available.

    

    (h)           The
provisions of this Section 7 shall survive any termination of this
Agreement.

    

    8.           Representations and
Warranties. The Executive hereby represents and warrants to the Company
as follows:

    

    (a)           Neither
the execution or delivery of this Agreement nor the performance by the Executive
of his duties and other obligations hereunder conflict with or constitute a
default or breach of any covenant or obligation under (whether immediately, upon
the giving of notice or lapse of time or both) any prior employment agreement,
contract, or other instrument to which the Executive is a party or by which he
is bound.

    

    (b)           The
Executive has the full right, power and legal capacity to enter and deliver this
Agreement and to perform his duties and other obligations
hereunder.  This Agreement constitutes the legal, valid and binding
obligation of the Executive enforceable against him in accordance with its
terms.  No approvals or consents of any persons or entities are
required for the Executive to execute and deliver this Agreement or perform his
duties and other obligations hereunder.

    

    (c)           The
Executive will not use any confidential information or trade secrets of any
third party in his employment by the Company in violation of the terms of the
agreements under which he had access to or knowledge of such confidential
information or trade secrets.

    

    9.           Termination.  The
Executive’s employment hereunder shall be terminated upon the Executive’s death
and may be terminated as follows:

    

    (a)           The
Executive’s employment hereunder may be terminated by the Board immediately for
Cause.  Any of the following actions by the Executive shall constitute
“Cause”:

    
      
         

      

      
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    (i)           The
willful failure, disregard or refusal by the Executive to perform his material
duties or obligations under this Agreement;

    

    (ii)          Any
willful, intentional or grossly negligent act by the Executive having the effect
of materially injuring (whether financial or otherwise and as determined
reasonably and in good-faith by a majority of the members of the Board) the
business or reputation of the Company or any of its affiliates (provided,
however, that this Section 9(a)(ii) shall not apply to any Company affiliate
that is engaged in a business competitive with the Business of the
Company);

    

    (iii)         Willful
misconduct by the Executive in respect of the material duties or obligations of
the Executive under this Agreement, including, without limitation, willful
insubordination with respect to lawful directions received by the Executive from
the Board;

    (iv)         The
Executive’s conviction of any felony involving moral turpitude (including entry
of a guilty or nolo contendere plea);

    

    (v)          The
determination by the Company, after a reasonable and good-faith investigation by
the Company following a written allegation by another employee of the Company,
that the Executive engaged in some form of harassment prohibited by law
(including, without limitation, harassment on the basis of age, sex or race)
unless the Executive’s actions were specifically directed by the
Board;

    

    (vi)         Any
material misappropriation or embezzlement of the property of the Company or its
affiliates (whether or not a misdemeanor or felony);

    

    (vii)        Breach
by the Executive of any of the provisions of Sections 6, 7 or 8 of this
Agreement which, if reasonably curable as determined in good faith by the Board,
is not cured by the Executive within five (5) business days after written notice
thereof is given to the Executive by the Company; and

    

    (viii)       Breach
by the Executive of any material provision of this Agreement other than those
contained in Sections 6, 7 or 8 which is not cured by the Executive within
thirty (30) days after written notice thereof is given to the Executive by the
Company.

    

    For
purposes of this Section 9(a), no act or omission by the Executive shall be
considered willful if reasonably and in good faith believed by the Executive to
be in, or not contrary to, the best interests of the Company.

    

    (b)          The
Executive’s employment hereunder may be terminated by the Board due to the
Executive’s Disability.  For purposes of this Agreement, a termination
for “Disability” shall
occur (i) when the Board has provided a written termination notice to the
Executive supported by a written statement from a reputable independent
physician satisfactory to both the Executive and the Company (provided that if the Executive
and the Company do not agree on a physician, the Executive and the Company shall
each select a physician and these two together shall select a third physician,
whose determination as to disability shall be binding on all parties) (“Reputable Independent
Physician”) to the effect that the Executive shall have become so
physically or mentally incapacitated as to be unable to resume (with or without
reasonable accommodation as that term is defined under applicable law) within
the ensuing six (6) months, his employment under this Agreement by reason of
physical or mental illness or injury or (ii) upon rendering of a written
termination notice by the Board after the Executive has been unable to
substantially perform his duties hereunder (with or without reasonable
accommodation as that term is defined under applicable law) for ninety (90)or
more consecutive days, or more than 120 days in any consecutive twelve month
period, by reason of any physical or mental illness or injury.  For
purposes of this Section 9(b), the Executive agrees to make himself available
and to cooperate in a reasonable examination by a Reputable Independent
Physician as set forth above.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    (c)          The
Executive’s employment hereunder may be terminated by the Board upon the
occurrence of a Change of Control.  For purposes of this Agreement,
“Change of
Control” means, following the Commencement Date:

    

    (i)           the
acquisition by an individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
beneficial ownership of any capital stock of the Company, if, after such
acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Exchange Act) 50% or more of the combined voting power of
the then-outstanding securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting
Securities”); or

    

    (ii)          the
consummation of a merger, consolidation, reorganization, recapitalization or
share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company (a “Business
Combination”), unless, immediately following such Business Combination,
all or substantially all of the individuals and entities who were the beneficial
owners of the Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the combined voting power of the then-outstanding securities entitled to vote
generally in the election of directors of the resulting or acquiring corporation
in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or
substantially all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership of the
Outstanding Company Voting Securities immediately prior to such Business
Combination.

    

    (d)          The
Executive’s employment hereunder may be terminated by the Executive for Good
Reason.  For purposes of this Agreement, “Good Reason” shall
mean:

    

    (i)           any
material breach of this Agreement by the Company if the Executive has provided
the Company with written notice of the breach and the Company has not cured such
breach within thirty (30) days from such notice;

    

    (ii)          without
the Executive’s express written consent, any material reduction by the Company
of the Executive's duties, responsibilities, or authority as President and Chief
Executive Officer of the Company which causes his position with the Company to
become of less responsibility or authority than his position as of immediately
following the Commencement Date;

    

    (iii)         a
relocation of the Company's principal place of business of the Executive outside
of the New York metropolitan area without the Executive's written consent;
or

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (iv)         the
Company’s failure to include the Executive in management’s slate for election as
provided in Section 4 above or, unless and until the earliest of (A) the Company
becoming a public company subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended; (B) the Company issuing securities
to the public in a transaction registered under the Securities Act of 1933, as
amended or (C) the first date of which the Common Stock trades on a national
exchange or on the NASDAQ, including the OTC Bulletin Board, his failure to be
re-elected to the Board or his removal from the Board (for reasons other than
Cause (as defined herein) or pursuant to his voluntary resignation therefrom) at
any time during the Term.

    

    (e)          The
Executive’s employment may be terminated by the Company or by the Executive for
any reason or no reason.

    

    (f)           The
Executive’s employment may terminate by expiration of the Term, as it may be
extended, by notice of non-renewal by either party in accordance with Section 2
hereof.

    

    10.           Compensation upon
Termination.

    

    In the
event the Executive’s employment is terminated pursuant to any of the
subsections within Section 9, the Company shall pay to the Executive the Base
Salary and benefits otherwise payable to him under Section 5 through the last
day of his actual employment by the Company, any reimbursable business expenses,
and any earned but unpaid bonuses (together, the “Accrued
Compensation”).  In addition to the Accrued
Compensation:

    

    (a)           If
the Executive’s employment is terminated as a result of his death or Disability,
the Company shall pay to the Executive or to the Executive’s estate, as
applicable, (i) his Base Salary through the date which is ninety (90) days after
his death or Disability and (ii) such other or additional benefits, if any, as
may be provided under applicable employee benefit plans, programs and/or
arrangements of the Company.  All shares of common stock of the
Company held by Executive that are subject to vesting (“Restricted Shares”)
and all options to purchase shares of common stock of the Company (“Stock Options”) that
are scheduled to vest on or before the next succeeding anniversary of the
Commencement Date shall be accelerated and deemed to have vested as of the
termination date.  All Restricted Shares and Stock Options that have
not vested (or been deemed pursuant to the immediately preceding sentence to
have vested) as of the date of termination shall be forfeited to the Company as
of such date.  Stock Options that have vested as of the Executive’s
termination shall remain exercisable for twelve (12) months following such
termination.  All payments, benefits and/or grants under this Section
10(a) shall be subject to Executive’s execution and delivery within 21 days of
separation from service of a general release of the Company, its parents,
subsidiaries and affiliates and each of its officers, directors, employees,
agents, successors and assigns in a form that is acceptable to the Company, with
such payments, benefits, and/or grants commencing within 30 days of the
Executive’s separation from service.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (b)           If
the Executive’s employment is terminated by the Board for Cause, then the
Company shall provide such other or additional benefits, if any, as may be
provided under applicable employee benefit plans, programs and/or arrangements
of the Company.  The Executive shall have no further entitlement
hereunder to any other compensation or benefits from the Company except to the
extent otherwise provided by law.  All Restricted Shares and Stock
Options that have not vested as of the date of termination shall be forfeited to
the Company as of such date.  Stock Options that have vested as of the
Executive’s termination shall remain exercisable for ninety (90) days following
such termination.

    

    (c)           If
the Executive’s employment is terminated by the Company other than as a result
of the Executive’s death or Disability and other than for Cause or under
circumstances specified in Section 10(d), or if the Executive’s employment is
terminated by the Executive for Good Reason, then the Company shall (i) continue
to pay to the Executive his Base Salary and benefits for a period of six (6)
months following the termination of the Term (such period of payment referred to
herein as the “Section 10(c) Termination Benefits Period”), or, in the case of
benefits, such time as the Executive receives equivalent coverage and benefits
under plans and programs of a subsequent employer; and (ii) provide such other
or additional benefits, if any, as may be provided under applicable employee
benefit plans, programs and/or arrangements of the Company.  In
addition, all Restricted Shares and Stock Options that are scheduled to vest
during the twelve (12) month period following such termination shall be
accelerated and deemed to have vested as of the termination date.  All
Stock Options that have vested (or been deemed pursuant to the immediately
preceding sentence to have vested) as of the date of the Executive’s termination
shall remain exercisable for a period of ninety (90)
days.  Notwithstanding anything to the contrary, if any of the
Executive’s benefits pursuant to Section 10(c)(i) hereof cannot be provided to
former employees, the Company shall provide the Executive, in a single lump sum
payment within ninety (90) days of separation from service, with payment in
whatever amount is necessary for the Executive to purchase the equivalent
benefit(s), with the payment grossed up as necessary to comport with the
tax-free nature of the Company’s direct provision of certain of those
benefits.  All payments, benefits and/or grants under this Section
10(c) shall be subject to Executive’s execution and delivery within 21 days of
separation from service of a general release of the Company, its parents,
subsidiaries and affiliates and each of its officers, directors, employees,
agents, successors and assigns in a form that is acceptable to the Company, with
such payments, benefits, and/or grants commencing within 30 days of the
Executive’s separation from service.

    

    (d)           If
the Executive’s employment is terminated by the Company (or its successor)
within two (2)
months prior to or six (6) months following the occurrence of a Change of
Control, and on the date of termination pursuant to this Section 10(d) the fair
market value of the Company’s Common Stock on a Fully-Diluted basis, in the
aggregate, as determined in good faith by the Board on the date of such Change
of Control, is more than $50,000,000, then the Company (or its successor, as
applicable) shall: (i) continue to pay to the Executive his Base Salary and
benefits for a period of six (6) months following the termination of the Term
(such period of payment is referred to herein as the “Section 10(d) Termination
Benefits Period”), or, in the case of benefits, such time as the Executive
receives equivalent coverage and benefits under plans and programs of a
subsequent employer; and (ii) provide such other or additional benefits, if any,
as may be provided under applicable employee benefit plans, programs and/or
arrangements of the Company.  In addition, all Restricted Shares and
Stock Options shall be accelerated and deemed to have vested as of the
termination date.  Stock Options that have vested as of the
Executive’s termination shall remain exercisable for ninety (90) days following
such termination.  Notwithstanding anything to the contrary, if any of
the Executive’s benefits pursuant to Section 10(d)(i) hereof cannot be provided
to former employees, the Company shall provide the Executive, in a single lump
sum payment within ninety (90) days of separation from service, with payment in
whatever amount is necessary for the Executive to purchase the equivalent
benefit(s), with the payment grossed up as necessary to comport with the
tax-free nature of the Company’s direct provision of certain of those
benefits.  All payments, benefits and/or grants under this Section
10(d) shall be subject to Executive’s execution and delivery within 21 days of
separation from service of a general release of the Company, its parents,
subsidiaries and affiliates and each of its officers, directors, employees,
agents, successors and assigns in a form that is acceptable to the Company, with
such payments, benefits, and/or grants commencing within 30 days of the
Executive’s separation from service.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    (e)          If
the Executive’s employment is terminated by the Executive pursuant to Section
9(e) or by expiration of the Term pursuant to Section 9(f), the Executive shall
not be entitled to receive any payments or benefits other than the Accrued
Compensation.

     

    (f)           If
the Executive’s employment is terminated by the Company other than for reasons
specified in Section 9(a) within ninety (90) days prior to the occurrence of a
Market Capitalization Milestone, then the Company shall pay to the Executive the
applicable cash bonus described in Section 5(c) of this Agreement as if the
Executive were employed by the Company on the date of such
occurrence.

    

    (g)          This
Section 10 sets forth the only obligations of the Company with respect to the
termination of the Executive’s employment with the Company, and the Executive
acknowledges that, upon the termination of his employment, he shall not be
entitled to any payments or benefits which are not explicitly provided in
Section 10, except as required by law or the terms of another employee plan,
program or arrangement covering him.

    

    (h)          Upon
termination of the Executive’s employment hereunder for any reason, the
Executive shall submit his resignation as director of the Company in writing,
effective as of the date of such termination.

    

    (i)           Notwithstanding
anything in this Agreement or any other agreement between the Executive and the
Company to the contrary but subject to this Section 10(i), the Company will make
the payments and acceleration of benefits under this Agreement and other
compensatory arrangements without regard to whether Section 280G of the Internal
Revenue Code of 1986 (the "Code") would
limit or preclude the deductibility of such payments or
benefits.  However, if reducing, delaying, or eliminating any payment
and/or other benefit (including the vesting of his options or other equity
compensation) would increase the Total After-Tax Payments (as defined below),
then the amounts payable to the Executive will be reduced, delayed, or
eliminated as follows (or in such other manner as the Company may specify at the
applicable time) to the extent necessary to maximize such Total After-Tax
Payments:

    

    (i)           first,
by reducing or eliminating any cash payments or other benefits (other than the
vesting of any options or stock) and

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (ii)          second,
by reducing or eliminating the vesting of his options and stock that occurs as a
result of a Change of Control or other event covered by Section 280G of the
Code.

     

    The
Company's independent, certified public accounting firm will determine whether
and to what extent payments or vesting are required to be reduced in accordance
with the foregoing. If there is ultimately determined to be an underpayment of
or overpayment to the Executive under this provision, the amount of such
underpayment or overpayment will be immediately paid to the Executive or
refunded by him, as the case may be, with interest at the applicable federal
rate provided for in Section 7872(f)(2) of the Code. For purposes of this
Agreement, "Total
After-Tax Payments" means the total value of all "parachute payments" (as
that term is defined in Section 280G(b)(2) of the Code) made to the Executive or
for his benefit (whether made under the Agreement or otherwise), after reduction
for all applicable federal taxes (including, without limitation, the tax
described in Section 4999 of the Code).

     

    (j)           The
obligations of the Company that arise under this Section 10 shall survive the
expiration or earlier termination of this Agreement.

    

    11.           Indemnification.  The
Company shall defend and indemnify the Executive in his capacity as President
and Chief Executive Officer of the Company to the fullest extent permitted under
to the Delaware General Corporate Law (the “DGCL”).  The
Company shall also establish a policy for indemnifying its officers and
directors, including but not limited to the Executive, for all actions permitted
under the DGCL taken in good faith pursuit of their duties for the Company,
including but not limited to the obtaining of an appropriate level of Directors
and Officers Liability coverage and including such provisions in the Company’s
by-laws or certificate of incorporation, as applicable and
customary.  The rights to indemnification shall survive any
termination of this Agreement.

    

    12.           Compliance with Code Section
409A.

    

    (a)           If
any payment, compensation or other benefit provided to the Executive in
connection with his employment termination is determined, in whole or in part,
to constitute “nonqualified deferred compensation” within the meaning of Section
409A of the Code (“Section 409A”) and
the Executive is a specified employee as defined in Section 409A(2)(B)(i), no
part of such payments shall be paid before the day that is six (6) months plus
one (1) day after the termination date (the “New Payment
Date”).  The aggregate of any payments that otherwise would
have been paid to the Executive during the period between the termination date
and the New Payment Date shall be paid to the Executive in a lump sum on such
New Payment Date.  Thereafter, any payments that remain outstanding as
of the day immediately following the New Payment Date shall be paid without
delay over the time period originally scheduled, in accordance with the terms of
this Agreement.

    

    (b)           The
parties acknowledge and agree that the interpretation of Section 409A and its
application to the terms of this Agreement is uncertain and may be subject to
change as additional guidance and interpretations become
available.  Anything to the contrary herein notwithstanding, all
benefits or payments provided by the Company to the Executive that would be
deemed to constitute “nonqualified deferred compensation” within the meaning of
Section 409A are intended to comply with Section 409A.  If, however,
any such benefit or payment is deemed to not comply with Section 409A, the
Company and the Executive agree to renegotiate in good faith any such benefit or
payment (including, without limitation, as to the timing of any severance
payments payable hereof) so that either (i) Section 409A will not apply or (ii)
compliance with Section 409A will be achieved; provided, however, that any
resulting renegotiated terms shall provide to the Executive the after-tax
economic equivalent of what otherwise has been provided to the Executive
pursuant to the terms of this Agreement, and provided further, that any
deferral of payments or other benefits shall be only for such time period as may
be required to comply with Section 409A.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    

    (c)           For
purposes of the Agreement, a termination of employment will be determined
consistent with the rules relating to “separation from service” under Section
409A and the regulations thereunder.

    

    (d)           The
parties agree that all of the payments set forth in Section 5(c) qualify for the
short term deferral exemption under Section 409A.

    

    13.           Miscellaneous.

    

    (a)           This
Agreement shall be governed by, and construed and interpreted in accordance
with, the laws of the State of New Jersey, without giving effect to its
principles of conflicts of laws.

    

    (b)           Any
dispute arising out of, or relating to, this Agreement or the breach thereof
(other than Sections 6 or 7 hereof), or regarding the interpretation thereof,
shall be finally settled by arbitration conducted in Somerset County in the
State of New Jersey in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association then in effect
before a panel of three arbitrators appointed in accordance with such
rules.  Judgment upon any award rendered therein may be entered and
enforcement obtained thereon in any court having jurisdiction.  The
arbitrator shall have authority to grant any form of appropriate relief, whether
legal or equitable in nature, including specific performance.  For the
purpose of any judicial proceeding to enforce such award or incidental to such
arbitration or to compel arbitration and for purposes of Sections 6 and 7
hereof, the parties hereby submit to the exclusive jurisdiction of the state or
federal courts situated in Somerset County in the State of New Jersey, and agree
that service of process in such arbitration or court proceedings shall be
satisfactorily made upon it if sent by registered mail addressed to it at the
address referred to below in paragraph (g) of this Section 13.  The
costs of such arbitration shall be borne proportionate to the finding of fault
as determined by the panel of arbitrators.  Pending such resolution of
any claim, the Executive shall be entitled to continue to receive all payments
and benefits due under this Agreement or otherwise, unless the arbitration panel
determines otherwise.  Judgment on the arbitration award may be
entered by any court of competent jurisdiction.

    

    (c)           This
Agreement shall be binding upon and inure to the benefit of the parties hereto,
and their respective heirs, legal representatives, successors and
assigns.

    

    (d)           This
Agreement, and the Executive’s rights and obligations hereunder, may not be
assigned by the Executive.  The Company may assign its rights,
together with its obligations, hereunder in connection with any sale, transfer
or other disposition of all or substantially all of its business or
assets.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    (e)           This
Agreement cannot be amended orally, or by any course of conduct or dealing, but
only by a written agreement signed by the parties hereto.

    

    (f)    
       The failure of either party to insist
upon the strict performance of any of the terms, conditions and provisions of
this Agreement shall not be construed as a waiver or relinquishment of future
compliance therewith, and such terms, conditions and provisions shall remain in
full force and effect.  No waiver of any term or condition of this
Agreement on the part of either party shall be effective for any purpose
whatsoever unless such waiver is in writing and signed by such
party.

    

    (g)           All
notices, demands or other communications desired or required to be given by any
party to any other party hereto shall be in writing and shall be deemed
effectively given upon (i) personal delivery to the party to be notified, (ii)
upon confirmation of receipt of telecopy or other electronic facsimile
transmission, (iii) one business day after deposit with a reputable overnight
courier, prepaid for priority overnight delivery, or (iv) five days after
deposit with the United States Post Office, postage prepaid, in each case to
such party at the address set forth on the signature page hereto; or to such
other addresses and to the attention of such other individuals as any party
shall have designated to the other parties by notice given in the foregoing
manner.

    

    (h)           This
Agreement sets forth the entire agreement and understanding of the parties
relating to the subject matter hereof, and supersedes all prior agreements,
arrangements and understandings, written or oral between the parties, relating
to the subject matter hereof.  No representation, promise or
inducement has been made by either party that is not embodied in this Agreement,
and neither party shall be bound by or liable for any alleged representation,
promise or inducement not so set forth.

    

    (i)       
    As used in this Agreement, “affiliate” of a specified
Person shall mean and include any Person controlling, controlled by or under
common control with the specified Person.

    

    (j)   
        The section headings contained
herein are for reference purposes only and shall not in any way affect the
meaning or interpretation of this Agreement.

    

    (k)           This
Agreement may be executed in any number of counterparts, each of which shall
constitute an original, but all of which together shall constitute one and the
same instrument.

    

    (l)     
      As used in this Agreement, the masculine,
feminine or neutral gender, and the singular or plural, shall be deemed to
include the others whenever and wherever the context so
requires.  Additionally, unless the context requires otherwise, "or"
is not exclusive.

    

    [Remainder of Page Intentionally Left
Blank; Signature Page Follows]

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

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

    

    
      
        
          	
                  CORMEDIX,
      INC.

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Russell H. Ellison

                
	
                   
      

                	
                  
                    Name:  Russell
      H. Ellison

                  

                
	
                   
      

                	
                  
                    Title:    Chairman
      of the Board

                  

                
	 
      	 
      
	
                  EXECUTIVE

                
	 
      
	
                  /s/
      John
      C. Houghton

                
	
                  John
      C. Houghton

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
A

    

    None.Unassociated Document

    Exhibit
10.13

     

     

    
      	
              MANUFACTURER:

            	
              ■  NAVINTA,
      LLC

            
	
              MANUFACTURER
      CONTACT:

            	
              ■  CHRISTOPHER
      NEWTON,Ph.D.

            
	
              CUSTOMER
      CONTACT:

            	
              ■  JOHN
      C. HOUGHTON

            
	
              EFFECTIVE
      DATE:

            	
              ■  DECEMBER
      7, 2009

            

    

     

    TAUROLIDINE
SUPPLY AGREEMENT

    

    THIS  SUPPLY
AGREEMENT is made and entered into as of December 7th,
2009  (the “Effective Date”) by
and between CORMEDIX INC. 86 Summit Ave., Summit, NJ 07901,  (together
with its Affiliates, “Customer”) and NAVINTA, LLC, a  corporation
having an address at 1499 Lower Ferry Road, Ewing, NJ 08618 (“Manufacturer”).

    

    RECITALS:

    

    WHEREAS,
Customer desires to engage Manufacturer to perform certain Development or
Manufacturing Services (as those terms are defined below), on the terms and
conditions set forth below, and Manufacturer desires to perform such Services
for Customer.

    

    AGREEMENT:

    

    NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
of the parties set forth in this Agreement, the parties hereto agree as
follows:

    

    1.           Definitions.  Unless
this Agreement expressly provides to the contrary, the following terms, whether
used in the singular or plural, have the respective meanings set forth
below:

    

    1.1         “Affiliate” means,
with respect to a party, any person or entity which controls, is controlled by
or is under common control with such party.  As used in this
Agreement, “control” means (a) in
the case of corporate entities, direct or indirect ownership of at least fifty
percent (50%) of the stock or shares having the right to vote for the election
of directors, and (b) in the case of non-corporate entities, the direct or
indirect power to manage, direct or cause the direction of the management and
policies of the non-corporate entity or the power to elect at least fifty
percent (50%) of the members of the governing body of such non-corporate
entity.

    

    1.2         “Agreement” means
this  Supply Agreement, together with all Appendices attached hereto,
as amended from time to time by the parties in accordance with Section 15.6, and
all fully signed Work Orders entered into by the parties.

    

    1.3         “API/Drug Substance”
means the active pharmaceutical ingredient identified on the applicable Work
Order or any intermediate thereof.

    

    1.4         “Applicable Law” means
all applicable ordinances, rules, regulations, laws, guidelines, guidances,
requirements and court orders of any kind whatsoever of any Authority, as
amended from time to time, including without limitation, cGMP (if
applicable).

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 1 of
22

        
          

        

      

      
         

      

    

    

    1.5         “Authority” means any
government regulatory authority responsible for granting approvals for the
performance of Services under this Agreement or for issuing regulations
pertaining to the Manufacture and/or use of Product in the intended country of
use, including, without limitation, the FDA.

    

    1.6         “Batch” means a
specific quantity of Product that is intended to be of uniform character and
quality, within specified limits, and is produced during the same cycle of
Manufacture as defined by the applicable Batch Record.

    

    1.7         “Batch Documentation”
has the meaning set forth in Section 6.2.

    

    1.8         “Certificate of
Analysis” means a document, signed by an authorized representative of
Manufacturer, describing Specifications for, and testing methods applied to,
Product, and the results thereof.

    

    1.9         “Certificate of
Compliance” means a document, signed by an authorized representative of
Manufacturer, certifying that a particular Batch was manufactured in accordance
with cGMP (if applicable), all other Applicable Law, and the
Specifications.

    

    1.10       “cGMP” means current
good manufacturing practices applicable to the Manufacture of Product
promulgated by any Authority.

    

    1.11       “Change Order” has the
meaning set forth in Section 5.3.

    

    1.12       “Confidential
Information” has the meaning set forth in Section 10.

    

    1.13       “Develop” or “Development” means
the studies and other activities conducted by Manufacturer under this Agreement
to develop all or any part of a Manufacturing Process including, without
limitation, analytical tests and methods, formulations and dosage
forms.

    

    1.14       “Equipment” means any
equipment or machinery, including Customer Equipment, used by Manufacturer in
the Development and/or Manufacturing of Product, or the holding, processing,
testing, or release of Product.

    

    1.15       “Facility” means the
facilities of Manufacturer identified in the applicable Work Order.

    

    1.16       “FDA” means the United
States Food and Drug Administration, and any successor agency having
substantially the same functions.

    

    1.17       “FDCA” means the
United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §321 et seq., as
amended from time to time.

    

    1.18       “Forecast” means firm work orders for the first six months and
rolling forecast for the twelve months for each year for the product covered
under this agreement. Manufacturer will provide appropriate lead time
requirements to the Customer for firm work orders for the six month cycle for a
given year.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    1.19       “Customer Indemnitee”
has the meaning set forth in Section 12.1.

    

    1.20       “Customer Equipment”
means the Equipment, if any, identified on the applicable Work Order as being
provided by Customer or purchased or otherwise acquired by Manufacturer at
Customer’s expense.

    

    1.21       “Customer Materials”
means the materials, and any intermediates or derivatives thereof, identified in
the applicable Work Order as being provided by Customer including labels (if
any) for Product.

    

    1.22       “Customer Technology”
means (a) Customer Materials, (b) Product and any intermediates or derivatives
thereof, (c) Specifications, and (d) the Technology of Customer owned, developed
or obtained by or on behalf of Customer prior to the Effective Date, or
developed or obtained by or on behalf of Customer independent of this Agreement
and without reliance upon the Confidential Information of
Manufacturer.

    

    1.23       “force
majeure” has the meaning set forth in Section 15.3.

    

    1.24       “Improvements” means
all Technology and discoveries, inventions, developments, modifications,
innovations, updates, enhancements, improvements, writings or rights (whether or
not protectable under patent, trademark, copyright or similar laws) associated
with Product that are conceived, discovered, invented, developed, created, made
or reduced to practice in the performance of Services under this
Agreement.

    

    1.25       “IND” means an
Investigational New Drug application filed with the FDA in accordance with
Applicable Law.

    

    1.26       “Manufacture” and
“Manufacturing”
means any steps, processes and activities necessary to produce Product,
including without limitation, the manufacturing, processing, packaging,
labeling, quality control testing, release, storage or supply of
Product.

    

    1.27       “Manufacturer
Indemnitee” has the meaning set forth in Section 12.2.

    

    1.28       “Manufacturer
Technology” means the Technology of Manufacturer (a) existing prior to
the Effective Date, or (b) developed or obtained by or on behalf of Manufacturer
independent of this Agreement and without reliance upon Confidential Information
of Customer.

    

    1.29       “Manufacturing
Process” means any and all processes (or any step in any process) used or
planned to be used by Manufacturer to Manufacture Product, as evidenced in the
Batch Documentation or master Batch Documentation.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

    
      
         

      

      
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    1.30       “Net
Sales” shall mean the U.S. net sales for a Product as reported by Customer in
its U.S. financial statements under U.S. General Accepted Accounting Procedure
(GAAP) principles, and incorporates, to the extent related to the sale thereof,
discounts, charge backs, credits, returns, rebates and allowances actually
granted, which were imposed on the sales transactions under the ordinary course
of business (whether or not separately invoiced).

    

    1.31       “Product” means
Taurolidine API/Drug Substance, in each case as specified in the applicable Work
Order, including, if applicable, bulk packaging and/or labeling as provided in
such Work Order.

    

    1.32       “Quality Agreement”
has the meaning set forth in Section 2.2.

    

    1.33       “Records” has the
meaning set forth in Section 5.4(a).

    

    1.34       “Representative” has
the meaning set forth in Section 3.1.

    

    1.35       “Reprocess” and “Reprocessing” means
introducing a Product back into the process and repeating appropriate
manipulation steps that are part of the established Manufacturing
Process.  Continuation of a process step after an in-process control
test show the process to be incomplete is not considered
reprocessing.

    

    1.36       “Rework” and “Reworking” means
subjecting a Product to one or more processing steps that are different from the
established Manufacturing Process.

    

    1.37       “Services” means the
Development, Manufacturing and/or other services described in a Work Order
entered into by the parties.

    

    1.38       “Specifications” means
the list of tests, references to any analytical procedures and appropriate
acceptance criteria which are numerical limits, ranges or other criteria for
tests described in order to establish a set of criteria to which Product at any
stage of Manufacture should conform to be considered acceptable for its intended
use that are provided by or approved by Customer, as such specifications are
amended or supplemented from time to time by Customer in writing.

    

    1.39       “Technology” means all
methods, techniques, trade secrets, copyrights, know-how, data, documentation,
regulatory submissions, specifications and other intellectual property of any
kind (whether or not protectable under patent, trademark, copyright or similar
laws).

    

    1.40       “Work Order” means a
written binding work order, substantially in the form attached hereto as Appendix A, for the
performance of Services by Manufacturer under this Agreement.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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      2.           Engagement of
Manufacturer.

    

     

    2.1         Services and Work
Orders.   From time to time, Customer may wish to engage
Manufacturer to perform Services for Customer. Such Services will be set forth
in a Work Order. Each Work Order will be appended to this Agreement and will set
forth the material terms for the project, and may include the scope of work,
specified Services, Specifications, deliverables, timelines, milestones (if
any), quantity, budget, payment schedule and such other details and special
arrangements as are agreed to by the parties with respect to the activities to
be performed under such Work Order.  No Work Order will be effective
unless and until it has been agreed to and signed by authorized representatives
of both parties.  Documents relating to the relevant project,
including without limitation Specifications, proposals, quotations and any other
relevant documentation, will be attachments to the applicable Work Order and
incorporated in the Work Order by reference.  Each fully signed Work
Order will be subject to the terms of this Agreement and will be incorporated
herein and form part of this Agreement.  Manufacturer will perform the
Services specified in each fully signed Work Order, as amended by any applicable
Change Order(s), and in accordance with the terms and conditions of such Work
Order and this Agreement.  Notwithstanding the foregoing, nothing in
this Agreement will obligate either party to enter into any Work Order under
this Agreement.

    

    2.2         Quality Agreement. If
appropriate or if required by Applicable Law, the parties will also agree upon a
Quality Agreement containing quality assurance provisions for the Manufacture of
Product (“Quality
Agreement”), which agreement will also be attached to the applicable Work
Order and incorporated by reference in the Work Order.

    

    2.3         Conflict Between
Documents. If there is any conflict, discrepancy, or inconsistency
between the terms of this Agreement and any Work Order, Quality Agreement,
purchase order, or other form used by the parties, the terms of this Agreement
will control.

    

    2.4         Exclusivity.  Manufacturer
shall supply to Customer Product, described under
1.31, as per the terms of an executed Work Order, on an exclusive
worldwide basis in the field of the prevention and treatment of human infection
and/or dialysis (the “Exclusive
Field”).  For the avoidance of doubt, Manfuracturer shall not, during
the term of this Agreement, supply to any
third party the Product and/or taurolidine for use in the Exclusive
Field.  The exclusivity described in this section shall remain in effect so long as Customer purchases
certain Minimum Product Supply as described in the following
paragraph.

    

    2.5         Minimum Purchase
Requirement.  In order to maintain exclusivity in the Exclusive
Field (as defined in the preceding section), Customer shall be required to
purchase a minimum amount of Product and/or taurolidine: (i) by June 30th 2010;
and (ii) annually following the first commercial sale of a Product by Customer
(the “First Commercial Sale”).  The Minimum Purchase Requirement and
pricing for the Product and/or taurolidine is outlined as follows:

    

    (a)  Customer shall purchase
[*] of Product and/or taurolidine by December 30th 2010 at
a total cost of Three Hundred and Fifty Thousand Dollars ($350,000), [*] percent
([*]%) of which (or [*] Dollars, $[*]) shall be due and owing to Manufacturer
within [*] of the execution of this Agreement and an applicable Work
Order.  The remaining [*] percent ([*]%) of the purchase price for
such [*] quantity shall be due and owing to Manufacturer no later than [*]
following delivery of such Product to Customer, subject to the provisions of
this Agreement regarding conformance, acceptance and rejection;

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    (b)  [*]

    

    (c)  [*]

    

    2.6         Sales Milestone
Payments. Customer shall pay to Manufacturer the following
non-refundable, non-creditable one-time milestone payments within [*] following
the first achievement of the applicable milestone event with a Product as long
as the Customer or its assignee markets Product:

    

    (a)  [*];

    

    (b)  [*];

    

    (c)  [*];

    

    (d)  [*];
and

    

    (e)  [*].

    

    3.           Project
Performance.

    

    3.1         Representatives. Each
party will appoint a representative having primary responsibility for day-to-day
interactions with the other party for the Services (each, a “Representative”), who
will be identified in the applicable Work Order.  Each party may
change its Representative by providing written notice to the other party in
accordance with Section 15.3; provided that Manufacturer will use reasonable
efforts to provide Customer with at least forty-five (45) days prior written
notice of any change in its Representative for the Services.  Except
for notices or communications required or permitted under this Agreement, which
will be subject to Section 15.3, or unless otherwise mutually agreed by the
parties in writing, all communications between Manufacturer and Customer
regarding the conduct of the Services pursuant to such Work Order will be
addressed to or routed directly through the parties’ respective
Representatives.

    

    3.2         Communications.  The
parties will hold project team meetings via teleconference or in person, on a
periodic basis as agreed upon by the Representatives.  Manufacturer
will make written reports to Customer as specified in the applicable Work
Order.

    

    3.3         Subcontracting.  Manufacturer
may  subcontract with any third party to perform any of its
obligations under this Agreement with  prior
written  notification  to Customer.  Manufacturer
will be solely responsible for the performance of any permitted subcontractor,
and for costs, expenses, damages, or losses of any nature arising out of such
performance as if such performance had been provided by Manufacturer itself
under this Agreement.  Manufacturer will cause any such permitted
subcontractor to be bound by, and to comply with, the terms of this Agreement,
as applicable, including without limitation, all confidentiality, quality
assurance, regulatory and other obligations and requirements of Manufacturer set
forth in this Agreement.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    3.4         Duty to
Notify.  If Manufacturer, at any time during the term of this
Agreement, has reason to believe that it will be unable to perform or complete
the Services, Manufacturer will promptly notify Customer
thereof.  Compliance by Manufacturer with this Section 3.4 will not
relieve Manufacturer of any other obligation or liability under this
Agreement.

    

    4.           Materials and
Equipment.

    

    4.1         Supply of
Materials.  Unless the parties otherwise agree in a Work Order,
Manufacturer will supply, in accordance with  the relevant approved
raw material specifications, all materials to be used by Manufacturer in the
performance of Services under a Work Order other than the Customer Materials
specified in such Work Order.  Customer or its designees will provide
Manufacturer with the Customer Materials.  Manufacturer agrees (a) to
account for all Customer Materials,. (b) not to provide Customer Materials to any
third party without the express prior written consent of Customer, (c) not to
use Customer Materials for any purpose other than conducting the Services,
including, without limitation, not to analyze, characterize, modify or reverse
engineer any Customer Materials or take any action to determine the structure or
composition of any Customer Materials unless required pursuant to a signed Work
Order, and (d) to destroy or return to Customer all unused quantities of
Customer Materials according to Customer’s written directions.

    

    4.2         Ownership of
Materials.  Customer will at all times retain title to and
ownership of the Product, any intermediates (and components thereof), and any
work in process at each and every stage of the Manufacturing
Process.  Manufacturer will provide within the Facility an area or
areas where the Product, any intermediates (and components thereof), and any
work in process are segregated and stored in accordance with the Specifications
and cGMP (if applicable), and in such a way as to be able at all times to
clearly distinguish such materials from products and materials belonging to
Manufacturer, or held by it for a third party's account Manufacturer will ensure
that,  Product, any intermediates (and components thereof), and any
work in process are free and clear of any liens or encumbrances.

     

    5.           Development and Manufacture
of Product.

    

    5.1         Resources; Applicable
Law.  Manufacturer will comply with all Applicable Law in
performing Services.

    

    5.2         Facility.

    

    (a)  Performance of
Services.  Manufacturer will perform all Services at the
Facility; provide all staff necessary to perform the Services in accordance with
the terms of the applicable Work Order and this
Agreement.  Manufacturer will not change the location of such Facility
or use any additional facility for the performance of Services under this
Agreement without at least one hundred and fifty (150) days prior written notice
to, and prior written consent from, Customer, which consent will not be
unreasonably withheld or delayed (it being understood and agreed that Customer
may withhold consent pending satisfactory completion of a quality assurance
audit and/or regulatory impact assessment of the new location or additional
facility, as the case may be).

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    (b)  Validation.  Manufacturer
will be responsible for performing all validation of the Facility, Equipment and
cleaning and maintenance processes employed in the Manufacturing Process in
accordance with cGMP, Manufacturer’s SOPs, the applicable Quality Agreement,
Applicable Law, and in accordance with any other validation procedures
established by  Manufacturer or their designated third
party.  Manufacturer will also be responsible for ensuring that all
such validated processes are carried out in accordance with their
terms.

    

    (c)   Licenses and
Permits.  Manufacturer will be responsible for obtaining, at
its expense, any Facility or other licenses or permits, and any regulatory and
government approvals necessary for the performance of Services by Manufacturer
under this Agreement.  At Customer’s request, Manufacturer will
provide Customer with copies of all such approvals and submissions to
Authorities, and Customer will have the right to use any and all information
contained in such approvals or submissions in connection with regulatory
approval and/or commercial development of Customer’s Product.

    

    (d)   Access to
Facility.  Manufacturer will permit Customer or its duly
authorized representatives to observe and consult with Manufacturer during the
performance of Services under this Agreement, including without limitation the
Manufacturing of any Batch of Product.  Manufacturer also agrees that
Customer and its duly authorized agents will have continuous access, during
operational hours and during active Manufacturing, to inspect the Facility and
Manufacturing Process to ascertain compliance by Manufacturer with the terms of
this Agreement, including, without limitation, inspection of (i) the Equipment
and materials used in the performance of Services, (ii) the holding facilities
for such materials and Equipment, and (iii) all Records relating to such
Services and the Facility.  Customer will also have the right, at its
expense, to conduct “mock” pre-approval audits upon reasonable notice to
Manufacturer, and Manufacturer agrees to cooperate with Customer in such “mock
audits.”

    

    5.3         Changes to Work Orders,
Manufacturing Process and Specifications.

    

    (a)    Changes to Work
Orders.  If the scope of work of a Work Order changes, then the
applicable Work Order may be amended as provided in this Section 5.3(a). If a
required modification to a Work Order is identified by Customer, or by
Manufacturer, the identifying party will notify the other party in writing as
soon as reasonably possible.  Manufacturer will provide Customer with
a change order containing a description of the required modifications and their
effect on the scope, fees and timelines specified in the Work Order (“Change Order”) and
will use reasonable efforts to do so within ten (10) business days of receiving
or providing such notice, as the case may be. No Change Order will be effective
unless and until it has been signed by authorized representatives of both
parties.  If Customer does not approve such Change Order, and has not
terminated the Work Order, but requests the Work Order to be amended to take
into account the modification, then the parties will use reasonable efforts to
agree on a Change Order that is mutually acceptable.  If practicable,
Manufacturer will continue to work on the existing Work Order during any such
negotiations, provided such efforts would facilitate the completion of the work
envisioned in the proposed Change Order, but will not commence work in
accordance with the Change Order until it is authorized in writing by
Customer.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    (b)    Process/Specifications
Changes.  Any change or modification to the Manufacturing
Process or Specifications for any Product must be in accordance with applicable
regulatory procedures and with prior notification to the  Customer and
their written consensus.  Any changes will be made in accordance with
the change control provisions of the applicable Quality Agreement.

    

    5.4         
Record and Sample
Retention.

    

    (a)     Records.  Manufacturer
will keep complete and accurate records (including without limitation reports,
accounts, notes, data, and records of all information and results obtained from
performance of Services) of all work done by it under this Agreement, in form
and substance as specified in the applicable Work Order, the applicable Quality
Agreement, and this Agreement (collectively, the “Records”).  Records
will be available at reasonable times for inspection, examination and copying by
or on behalf of Customer.  All original Records of the Development and
Manufacture of Product under this Agreement will be retained and archived by
Manufacturer in accordance with cGMP (if applicable) and Applicable Law, but in
no case for less than a period of five (5) years following completion of the
applicable Work Order.  Upon Customer’s request, Manufacturer will
promptly provide Customer with copies of such Records  Five (5) years after completion of a
Work Order, all of the aforementioned records will be sent to Customer or
Customer’s designee; provided, however, that
Customer may elect to have such records retained in Manufacturer’s archives for
an additional period of time at a reasonable charge to Customer.

    

    (b)    Sample
Retention.  Manufacturer will take and retain, for such period
and in such quantities as may be required by cGMP (if applicable) and the
applicable Quality Agreement, samples of Product from the Manufacturing Process
produced under this Agreement.  Further, Manufacturer will submit such
samples to Customer, upon Customer’s written request.

    

    5.5          Regulatory
Matters.

    

    (a)     Regulatory
Approvals.  Customer will be responsible for obtaining, at its
expense, all regulatory and governmental approvals and permits necessary for
Customer’s use of the Product under this
Agreement, including, without limitation, IND submissions and any analogous
submissions filed with the appropriate Authority of a country other than the
United States.  Manufacturer will be responsible for providing
Customer with all supporting data and information relating to the Product for obtaining such approvals,
including, without limitation, all Records, raw data, reports, authorizations,
certificates, methodologies, Batch Documentation, raw material specifications,
SOPs, standard test methods, Certificates of Analysis, Certificates of
Compliance and other documentation in the possession or under the control of
Manufacturer.  Manufacturer shall be responsible for production and
filing of the Drug Master File for the Product with the FDA on a timely,
competent and professional basis.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    (b)    Regulatory
Inspections.  Manufacturer will permit Customer or its agents
to be present and participate in any visit or inspection by any Authority of the
Facility (to the extent it relates the
Product) or the Manufacturing Process.  Manufacturer will give
as much advance notice as possible to Customer of any such visit or
inspection.  Manufacturer will provide to Customer a copy of any
report or other written communication received from such Authority in connection
with such visit or inspection, and any written communication received from any
Authority relating to any Product, the Facility (if it relates to or affects the
Development and/or Manufacture of Product) or the Manufacturing Process, within
three (3) business days  or sooner after receipt thereof, and will
consult with Customer before responding to each such
communication.  Manufacturer will provide Customer with a copy of its
final responses within five (5) business days after submission
thereof.

    

    5.6          Waste
Disposal.  The generation, collection, storage, handling,
transportation, movement and release of hazardous materials and waste generated
in connection with the Services will be the responsibility of Manufacturer at
Manufacturer’s sole cost and expense.  Without limiting other
applicable requirements, Manufacturer will prepare, execute and maintain, as the
generator of waste, all licenses, registrations, approvals, authorizations,
notices, shipping documents and waste manifests required under Applicable
Law.

    

    5.7          Safety
Procedures.  Manufacturer will be solely responsible for
implementing and maintaining health and safety procedures for the performance of
Services and for the handling of any materials or hazardous waste used in or
generated by the Services.  Manufacturer, in consultation with
Customer, will develop safety and handling procedures for API/Drug Substance and
Product; provided, however, that
Customer will have no responsibility for Manufacturer’s health and safety
program.

     

    5.8          Technology
Transfer.  Within ninety
(90) days of a Supply Failure by Manufacturer (as defined hereinafter),
or in any event if such Supply Failure is not fully cured within ninety (90) days of the occurrence of the Supply
Failure, then Customers’s minimum purchase obligations (as outlined in Section
2.5) and sales milestone payment obligations (as outlined in Section 2.6) will
terminate altogether and Manufacturer shall provide to Customer, or its
designee, all Manufacturing information, including, without limitation,
documentation, technical assistance, materials and cooperation by appropriate
employees of Manufacturer as Customer or its designee may reasonably require in
order to Manufacture Product.  A “Supply Failure” shall include any
inability on the part of Manufacturer to meet Customers supply demands with
respect to quantity or quality based on a firm six
(6) month and twelve (12) months rolling forecasts and ordering
provisions.  In the event Customer requests technology transfer
pursuant to this Section 5.8 (based on an uncured Supply Failure), Customer
shall be obligated to pay to Manufacturer royalties on the Net Sales of Product
manufactured using the Manufacturer Technology or the Manufacturer
Process.  Specifically, Customer shall be required to pay to
Manufacturer as long as Customer or its assignee markets Product:

    

    (a)   [*];

    

    (b)   [*];
and

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    (c)    [*].

    

    
      	
              6.

            	
              Testing and Acceptance
      Process.

            

    

    

    6.1          Testing by
Manufacturer.  The Product to be supplied under this Agreement will be
Manufactured in accordance with cGMP, unless otherwise stated in the Work Order,
and the Manufacturing Process approved by the Customer.  Each Batch of
Product will be sampled and tested by Manufacturer against the Specifications,
and the quality assurance department of Manufacturer will review the records
relating to the Manufacture of the Batch and will assess if the Manufacture has
taken place in compliance with cGMP (if applicable) and the Manufacturing
Process.

    

    6.2          Provision of
Records.  If, based upon such tests, a Batch of Product
conforms to the Specifications and was Manufactured according to cGMP (if
applicable) and the Manufacturing Process, and then a Certificate of Compliance
will be completed and approved by the quality assurance department of
Manufacturer. This Certificate of Compliance, a Certificate of Analysis, the
Specifications, and a complete and accurate copy of the Batch records
(collectively, the “Batch Documentation”)
for each Batch of Product will be delivered to Customer by a reputable overnight
courier or by registered or certified mail, postage prepaid, return receipt
required to verify delivery date. Upon request, Manufacturer will also deliver
to Customer all raw data, reports, authorizations, certificates, methodologies,
raw material specifications, SOPs, standard test methods, and other
documentation in the possession or under the control of Manufacturer relating to
the Manufacture of each Batch of Product.  If Customer has not
received all such Batch Documentation at the time of receipt of the Batch,
Customer will notify Manufacturer in writing.  If Customer requires
additional copies of such Batch Documentation, these will be provided by
Manufacturer to Customer at cost.

    

    6.3          Review of Batch
Documentation; Acceptance. Customer will review the Batch Documentation
for each Batch of Product and may test samples of the Batch of Product against
the Specifications.  Customer will notify Manufacturer in writing of
its acceptance or rejection of such Batch within thirty (30) business days of
receipt of the complete Batch Documentation relating to such Batch. During this
review period, the parties agree to respond promptly, but in any event within
ten (10) days, to any reasonable inquiry by the other party with respect to such
Batch Documentation.  Customer has no obligation to accept a Batch if
such Batch does not comply with the Specifications and/or was not Manufactured
in compliance with cGMP (if applicable) and the Manufacturing
Process.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    6.4          Disputes.  In
case of any disagreement between the parties as to whether Product conforms to
the applicable Specifications or cGMP (if applicable), the quality assurance
representatives of the parties will attempt in good faith to resolve any such
disagreement and Customer and Manufacturer will follow their respective SOPs to
determine the conformity of the Product to the Specifications and cGMP (if
applicable).  If the foregoing discussions do not resolve the
disagreement in a reasonable time (which will not exceed thirty (30) days), a
representative sample of such Product will be submitted to an independent
testing laboratory mutually agreed upon by the parties for tests and final
determination of whether such Product conforms with such
Specifications.  The laboratory must meet cGMP (if applicable), be of
recognized standing in the industry, and consent to the appointment of such
laboratory will not be unreasonably withheld or delayed by either
party.  Such laboratory will use the test methods contained in the
applicable Specifications.  The determination of conformance by such
laboratory with respect to all or part of such Product will be final and binding
on the parties.  The fees and expenses of the laboratory incurred in
making such determination will be paid by the party against whom the
determination is made.

    

    6.5          Product Non-Compliance and
Remedies. If a Batch of Product fails to conform to the Specifications or
was not Manufactured in compliance with cGMP (if applicable) and the
Manufacturing Process, then Manufacturer will, at Customer’s sole
option:

    

    (a)   refund
in full the fees and expenses paid by Customer for such Batch; or

    

    (b)   at
Manufacturer’s cost and expense, produce a new Batch of Product as soon as
reasonably possible; or

    

    (c)    Rework
or Reprocess the Product, at Manufacturer’s cost and expense, so that the Batch
can be deemed to have been Manufactured in compliance with cGMP (if applicable)
and the Manufacturing Process, and to conform to Specifications.

    

    Moreover,
the parties will meet to discuss, evaluate and analyze the reasons for and
implications of the failure to comply with cGMP (if applicable) and/or the
Manufacturing Process and will decide whether to proceed with or to amend the
applicable Work Order, or to terminate such Work Order.

    

    6.6          Disposition of
Non-Conforming Product.  The ultimate disposition of
non-conforming Product will be the responsibility of
Manufacturer’s  quality assurance department and
Manufacturer’s  expense, in due consultation with the
Customer.

    

    7.           Shipping and
Delivery.

    

    7.1          Shipping;
Delivery.  Manufacturer agrees not to ship Product to Customer
or its designee until it has received a written approval to release and ship
from Customer.  Manufacturer will ensure that each Batch will be
delivered to Customer’s designee, (a) on the delivery date and to the
destination designated by Customer in writing, and (b) in accordance with the
instructions for shipping and packaging specified by Customer in the applicable
Work Order or as otherwise agreed to by the parties in writing. Delivery terms
will be FCA the Facility (Incoterms 2000).  A bill of lading will be
furnished to Customer with respect to each shipment.

    

    8.           Price and
Payments.

    

    8.1          Price.  The
price of Product and/or the fees for the performance of Services will be set
forth in the applicable Work Order.

     

    
      [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

    

    
      
         

      

      
        Page 12
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    8.2          Invoice.  Manufacturer
will invoice Customer according to the payment schedule in the applicable Work
Order.  Payment of undisputed invoices will be due [*] after receipt
of the invoice by Customer.

    

    8.3          Payments.  Customer
will make all payments pursuant to this Agreement by check or wire transfer to a
bank account designated in writing by Manufacturer.  All payments
under this Agreement will be made in United States Dollars.

    

    8.4          Financial
Records.  Manufacturer will keep accurate records of all
Services performed and invoice calculations, and, upon the request of Customer,
will permit Customer or its duly authorized agents to examine such records
during normal business hours for the purpose of verifying the correctness of all
such calculations. Such audit shall not be more than once in a calander
year.

    

    8.5          Taxes.  Duty,
sales, use or excise taxes imposed by any governmental entity that apply to the
provision of Services will be borne by Customer (other than taxes based upon the
income of Manufacturer).

    

    9.           Intellectual Property
Rights.

    

    9.1          Customer
Technology.  All rights to and interests in Customer Technology
will remain solely in Customer and no right or interest therein is transferred
or granted to Manufacturer.  Manufacturer acknowledges and agrees that
it does not acquire a license or any other right to Customer Technology except
for the limited purpose of carrying out its duties and obligations under this
Agreement and that such limited, non-exclusive, license will expire upon the
completion of such duties and obligations or the termination or expiration of
this Agreement, whichever is the first to occur.

    

    9.2          Manufacturer
Technology.  All rights to and interests in Manufacturer
Technology will remain solely in Manufacturer as it relates to Product and no
right or interest therein is transferred or granted to
Customer.  Customer acknowledges and agrees that it will not acquire a
license or any other right to Manufacturer Technology except as otherwise set
forth in this Agreement.

    

    9.3          Improvements.  The
parties agree that it will be owned on the
basis of inventorship (i.e., whoever invents, owns) To the extent any such
Improvements are useful or necessary in the Manufacturing of the Product, then
Manufacturer shall make available such Improvements for use in connection with
the Manufacturing of the Product for no additional fees or royalties other than
those outlined herein.

     

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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                  10.

                	
                  Confidentiality.

                

        

      

       

    

    10.1          Definition.  As
used in this Agreement, “Confidential
Information” means any scientific, technical, trade or business
information which is given by one party to the other and which is treated by the
disclosing party as confidential or proprietary or is developed by one party for
the other under the terms of this Agreement.  The disclosing party
will, to the extent practical, use reasonable efforts to label or identify as
confidential, at the time of disclosure all such Confidential Information that
is disclosed in writing or other tangible form.  Confidential
Information of Manufacturer includes, but is not limited to, Manufacturer
Technology, whether or
not labeled confidential. Confidential Information of Customer includes, but is
not limited to, Customer Technology whether or not labeled
confidential.

    

    10.2          Obligations.  Each
party agrees (a) to keep confidential the Confidential Information of the other
party, (b) not to disclose the other party’s Confidential Information to any
third party without the prior written consent of such other party, and (c) to
use such Confidential Information only as necessary to fulfill its obligations
or in the reasonable exercise of rights granted to it under this Agreement;
provided, however, that the foregoing obligations shall not apply to
Confidential Information that is (i) in possession of the receiving party at the
time of disclosure, as reasonably demonstrated by written records and without
obligation of confidentiality, (ii) later becomes part of the public domain
through no fault of the receiving party, (iii) received by the receiving party
from a third party without obligation of confidentiality, or (iv) developed
independently by the receiving party without use of, reference to, or reliance
upon the disclosing party’s Confidential Information by individuals who did not
have access to Confidential Information. Notwithstanding the foregoing, a party
may disclose (y) Confidential Information of the other party to its Affiliates,
and to its and their directors, employees, consultants, and agents in each case
who have a specific need to know such Confidential Information and who are bound
by a like obligation of confidentiality and restriction on use, and (z)
Confidential Information of the other party to the extent such disclosure is
required to comply with Applicable Law or the rules of any stock exchange or
listing entity, or to defend or prosecute litigation; provided, however, that
the receiving party provides prior written notice of such disclosure to the
disclosing party and takes reasonable and lawful actions to avoid or minimize
the degree of such disclosure.  Moreover, Customer may disclose
Confidential Information of Manufacturer relating to the Development and/or
Manufacture of Product to entities with whom Customer has (or may have) a
marketing and/or development collaboration and who have a specific need to know
such Confidential Information and who are bound by a like obligation of
confidentiality and restrictions on use.

    

    10.3          Public Statements.
Except to the extent required by Applicable Law or the rules of any stock
exchange or listing entity, neither party will make any public statements or
releases concerning this Agreement or the transactions contemplated by this
Agreement, or use the other party’s name in any form of advertising, promotion
or publicity, without obtaining the prior written consent of the other party,
which consent will not be unreasonably withheld or delayed.

    

    11.           Representations and
Warranties.

    

    11.1          Manufacturer’s
Representations and Warranties.  Manufacturer represents and
warrants to Customer that:

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 14
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    (a)  it
has the full power and right to enter into this Agreement and that there are no
outstanding agreements, assignments, licenses, encumbrances or rights of any
kind held by other parties, private or public, inconsistent with the provisions
of this Agreement;

    

    (b)  the
Services will be performed with requisite care, skill and diligence, in
accordance with Applicable Law and industry standards, and by individuals who
are appropriately trained and qualified;

    

    (c)   to
the best of its knowledge, the Services will not infringe the intellectual
property rights of any third party and it will promptly notify Customer in
writing should it become aware of any claims asserting such
infringement;

    

    (d)   at
the time of delivery to Customer, the Product Manufactured under this Agreement
(i) will have been Manufactured in accordance with cGMP (if applicable) and all
other Applicable Law, the Manufacturing Process, the applicable Quality
Agreement, and Specifications, and (ii) will not be adulterated or misbranded
under the FDCA or other Applicable Law; and

    

    (e)    it
has not been debarred, nor is it subject to a pending debarment, and that it
will not use in any capacity in connection with the Services any person who has
been debarred pursuant to section 306 of the FDCA, 21 U.S.C. § 335a, or who is
the subject of a conviction described in such section.  Manufacturer
agrees to notify Customer in writing immediately if Manufacturer or any person
who is performing Services is debarred or is the subject of a conviction
described in section 306, or if any action, suit, claim, investigation, or
proceeding is pending, or to the best of Manufacturer’s knowledge, is
threatened, relating to the debarment or conviction of Manufacturer or any
person performing Services.

    

    11.2          Customer Representations and
Warranties.  Customer represents and warrants to Manufacturer
that:

    

    (a)   it
has the full power and right to enter into this Agreement and that there are no
outstanding agreements, assignments, licenses, encumbrances or rights held by
other parties, private or public, inconsistent with the provisions of this
Agreement, and

    

    (b)   to
the best of its knowledge, the use of Customer Technology as described in any
work order will not infringe the intellectual property rights of any third party
and that it will promptly notify Manufacturer in writing should it become aware
of any claims asserting such infringement.

    

    11.3          Disclaimer of Other
Representations and Warranties.  EXCEPT AS EXPRESSLY SET FORTH
IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY
WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED
TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR
NON-INFRINGEMENT.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 15
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    12.           Indemnification.

    

    12.1         Indemnification by
Manufacturer.  Manufacturer will indemnify, defend and hold
harmless Customer, its Affiliates and their respective officers, directors,
employees and agents (each a “Customer Indemnitee”)
from and against any and all losses, damages, liabilities or expenses (including
reasonable attorneys fees and other costs of defense) (collectively, “Losses”) in
connection with any and all actions, suits, claims or demands that may be
brought or instituted against any Customer Indemnitee by any third party based
on, arising out of, or resulting directly from (a) any breach by Manufacturer of
its representations, warranties or covenants under this Agreement, or (b) any
negligent act or omission or the willful misconduct of any Manufacturer
Indemnitees in performing obligations under this Agreement that results in a
claim for damages.

    

    12.2         Indemnification by
Customer.  Customer will indemnify, defend and hold harmless
Manufacturer, its Affiliates and their respective officers, directors, employees
and agents (each a “ Manufacturer
Indemnitee”) from and against any and all Losses in connection with any
and all actions, suits, claims or demands that may be brought or instituted
against any Manufacturer Indemnitee by any third party based on, or arising out
of, or resulting directly from (a) the use of the Product, except to the extent
that such Losses are within the scope of the indemnification obligation of
Manufacturer under Section 12.1, (b) any breach by Customer of its
representations, warranties or covenants under this Agreement, or (c) any
negligent act or omission or the willful misconduct of any Customer Indemnitees
in performing obligations under this Agreement that results in a claim for
damages.

    

    12.3         Procedures.  Each
party agrees to notify the other party within thirty (30) days of receipt of any
claims made for which the other party might be liable under Section 12.1 or
12.2, as the case may be. Subject to Section 12.4, the indemnifying party will
have the right to defend, negotiate, and settle such claims.  The
party seeking indemnification will provide the indemnifying party with such
information and assistance as the indemnifying party may reasonably request, at
the expense of the indemnifying party.  The parties understand that no
insurance deductible will be credited against losses for which a party is
responsible under this Section 12.

    

    12.4         Settlement.  Neither
party will be responsible or bound by any settlement of any claim or suit made
without its prior written consent; provided, however, that the indemnified party
will not unreasonably withhold or delay such consent.  If a settlement
contains an absolute waiver of liability for the indemnified party, and each
party has acted in compliance with the requirements of Section 12.3, then the
indemnified party’s consent will be deemed given. Notwithstanding the foregoing,
Manufacturer will not agree to settle any claim on such terms or conditions as
would impair Customer’s ability or right to Manufacture, market, sell or
otherwise use Product, or as would impair Manufacturer’s ability, right or
obligation to perform its obligations under this Agreement.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 16
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    12.5         Limitation of
Liability.  NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED
AND ON ANY THEORY OF LIABILITY. THIS LIMITATION WILL APPLY EVEN IF THE OTHER
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE; PROVIDED, HOWEVER, THAT THIS
LIMITATION WILL NOT APPLY TO DAMAGES RESULTING FROM BREACHES BY A PARTY OF ITS
DUTY OF CONFIDENTIALITY AND NON-USE IMPOSED UNDER SECTION 10 OR ITS
INDEMNIFICATION OBLIGATIONS UNDER THIS SECTION 12.

    

    13.           Insurance.

    

    13.1         Insurance.  Manufacturer
and Customer shall maintain during the term of this Agreement and for at least
five (5) years thereafter (for claims made coverage) policies of insurance in
the amounts and of the types reasonably appropriate for the conduct of their
respective business.  Manufacturer and Customer shall maintain the
following minimum insurance coverage with financially-sound and
nationally-reputable insurers:  Comprehensive Liability with
contractual and product liability insurance.

    

    13.2         Evidence of Manufacturer’s
Insurance.  Manufacturer will furnish to Customer a certificate
from an insurance carrier (having a minimum AM Best rating of A) demonstrating
the insurance requirements set forth above. The insurance certificate will
confirm each of the following:

    

    (a)           excluding
Manufacturer’s Worker’s Compensation policy, Customer is named as an additional
insured with respect to matters arising from this Agreement;

    

    (b)           such
insurance is primary and non-contributing to any liability insurance carried by
Customer; and

    

    (c)           thirty
(30) days prior written notice will be given to Customer of cancellation or any
material change in the policies.

    

    13.3         Evidence of
Customer’s
Insurance.  Customer will furnish to Manufacturer a certificate
from an insurance carrier (having a minimum AM Best rating of A) demonstrating
the insurance requirements set forth above. The insurance certificate will
confirm each of the following:

    (a)           excluding
Customer’s Worker’s Compensation policy, Manufacturer is named as an additional
insured with respect to matters arising from this Agreement;

    

    (b)           such
insurance is primary and non-contributing to any liability insurance carried by
Customer; and

    

    (c)           thirty
(30) days prior written notice will be given to Manufacturer of cancellation or
any material change in the policies.

    

    13.4         Insurance
Information.  Manufacturer will comply, at Customer’s expense,
with reasonable requests for information made by Customer’s insurance provider
representative(s), including permitting such representative(s) to inspect the
Facility during operational hours and upon reasonable notice to Manufacturer. In
regard to such inspections, the representative(s) will adhere to such guidelines
and policies pertaining to safety and non-disclosure as Manufacturer may
reasonably require.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 17
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    14.           Term and
Termination.

    

    14.1          Term.  This
Agreement will take effect as of the Effective Date and, unless earlier
terminated pursuant to this Section 14, will expire on the later of (a) five (5)
years from the Effective Date, or (b) the completion of Services under the last
Work Order executed by the parties prior to the 5th
anniversary of the Effective Date.  The term of this Agreement may be
extended by Customer continuously for additional two (2) year periods upon
written notice to Manufacturer at least thirty (30) days prior to the expiration
of the then current term under existing terms and conditions.

    

    14.2          Termination by
Customer.  Customer will have the right, in its sole
discretion, to terminate this Agreement and/or any Work Order (a) upon thirty
(30) days prior written notice to Manufacturer, or (b) immediately upon written
notice if (i) in Customer’s reasonable judgment, Manufacturer is or will be
unable to perform the Services in accordance with the agreed upon timeframe and
budget set forth in the applicable Work Order, or (ii) Manufacturer fails to
obtain or maintain any material governmental licenses or approvals required in
connection with the Services.

    

    14.3          Termination by
Manufacturer.  Manufacturer will have the right, in its sole
discretion, to terminate this Agreement and/or any Work Order (upon written
thirty (30) days prior notice if (i) in Manufacturer’s reasonable judgment,
Customer is or will be unable to purchase the Product as expected and per
schedule in accordance with the agreed upon timeframe and budget set forth in
the applicable Work Order, or (ii) Customer fails to obtain or maintain any
material governmental licenses or approvals required in connection with the
Product.

    

    14.4          Termination by Either
Party.  Either party will have the right to terminate this
Agreement or any signed Work Orders that are pending by written notice to the
other party, upon the occurrence of any of the following:

    

    (a)   the
other party files a petition in bankruptcy, or enters into an agreement with its
creditors, or applies for or consents to the appointment of a receiver or
trustee, or makes an assignment for the benefit of creditors, or becomes subject
to involuntary proceedings under any bankruptcy or insolvency law (which
proceedings remain undismissed for sixty (60) days);

    

    (b)   the
other party fails to start and diligently pursue the cure of a material breach
of this Agreement within thirty (30) days after receiving written notice from
the other party of such breach; or

    

    (c)    a  force majeure event that
will, or continues to, prevent performance (in whole or substantial part) of
this Agreement or any pending Work Order for a period of at least ninety (90)
days.  In the case of a force majeure event relating
to a pending Work Order, the right to terminate will be limited to such Work
Order.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
        Page 18
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    14.5          Effect of
Termination.  Manufacturer will, upon receipt of a termination
notice from Customer, promptly cease performance of the applicable Services and
will take all reasonable steps to mitigate the out-of-pocket expenses incurred
in connection therewith.  In particular, Manufacturer will use its
best efforts to:

    

    (a)   immediately
cancel, to the greatest extent possible, any third party
obligations;

    

    (b)   promptly
inform Customer of any irrevocable commitments made in connection with any
pending Work Order(s) prior to termination;

    

    (c)    promptly
return to the vendor for a refund all unused, unopened materials in
Manufacturer’s possession that are related to any pending Work Order; provided
that Customer will have the option, but not the obligation, to take possession
of any such materials;

    

    (d)    promptly
inform Customer of the cost of any remaining unused, unreturnable materials
ordered pursuant to any pending Work Order(s), and either deliver such materials
to Customer (or its designee) or properly dispose of them, as instructed by
Customer; and

    

    (e)     perform
only those services and activities mutually agreed upon by Customer and
Manufacturer as being necessary or advisable in connection with the close-out of
any pending Work Order(s).

    

    14.6          Return of
Materials/Confidential Information.  Upon the expiration or
termination of this Agreement, each party will promptly return all Confidential
Information of the other party that it has received pursuant to this
Agreement.

    

    14.7          Inventories.  Upon
expiration or termination of this Agreement or a pending Work Order, Customer
(a) will purchase from Manufacturer any existing inventories of Product
conforming to the Specifications and Manufactured in accordance with cGMP (if
applicable) and the Manufacturing Process, at the price for such Product set
forth in the applicable Work Order, and (b) may either (i) purchase any Product
in process held by Manufacturer as of the date of the termination, at a price to
be mutually agreed (it being understood that such price will reflect, on a pro
rata basis, work performed and non-cancelable out-of-pocket expenses actually
incurred by Manufacturer with respect to the Manufacture of such in-process
Product), or (ii) direct Manufacturer to dispose of such material at Customer’s
cost.

    

    14.8          Payment
Reconciliation.  Within thirty (30) days after the close-out of
a Work Order, Manufacturer will provide to Customer a written itemized statement
of all work performed by it in connection with the terminated Work Order, an
itemized breakdown of the costs associated with that work, and a final invoice
for that Work Order.  If Customer has pre-paid to Manufacturer more
than the amount in a final invoice then Manufacturer agrees to promptly refund
that money to Customer, or to credit the excess payment toward another existing
or future Work Order, at the election of Customer.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    14.9          Survival.  Expiration
or termination of this Agreement for any reason will not relieve either party of
any obligation accruing prior to such expiration or termination or of any rights
and obligations of the parties that by their terms survive termination or
expiration of this Agreement or of any Work Order, including, without
limitation, Sections 1, 4, 5.2(c), 5.2(d), 5.4, 5.5, 5.8, 9 through 13, 14.4,
14.5, 14.6, 14.7, 14.8 and 15, and the provisions of the applicable Quality
Agreement.

    

    15.           Miscellaneous.

    

    15.1         Independent
Contractor.  All Services will be rendered by Manufacturer as
an independent contractor and this Agreement does not create an
employer-employee relationship between   Customer and
Manufacturer. Manufacturer will not in any way represent itself to be a partner
or joint venturer of or with Customer.

    

    15.2         Force
Majeure.  Except as
otherwise expressly set forth in this Agreement, neither party will have
breached this Agreement for failure or delay in fulfilling or performing any
term of this Agreement when such failure or delay is caused by or results from
causes beyond the reasonable control of the affected party, including, without
limitation, fire, floods, embargoes, shortages, epidemics, quarantines, war,
acts of war (whether war be declared or not), insurrections, riots, civil
commotion, strikes, acts of God or acts, omissions, or delays in acting, by any
governmental authority (“force
majeure”).  The party affected by any event of force majeure will promptly
notify the other party, explaining the nature, details and expected duration
thereof.  Such party will also notify the other party from time to
time as to when the affected party reasonably expects to resume performance in
whole or in part of its obligations under this Agreement, and to notify the
other party of the cessation of any such event.  A party affected by
an event of force
majeure will use its reasonable efforts to remedy, remove, or mitigate
such event and the effects thereof with all reasonable dispatch.  If a
party anticipates that an event of force majeure may occur, such
party will notify the other party of the nature, details and expected duration
thereof. Upon termination of the event of force majeure, the
performance of any suspended obligation or duty will promptly
recommence.

    

    15.3         Notices.  All
notices must be written and sent to the address or facsimile number identified
below or in a subsequent notice.  All notices must be given (a) by
personal delivery, with receipt acknowledged, (b) by facsimile followed by hard
copy delivered by the methods under (c) or (d), (c) by prepaid certified or
registered mail, return receipt requested, or (d) by prepaid recognized next
business day delivery service.  Notices will be effective upon receipt
or at a later date stated in the notice.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    If to
Manufacturer, to:

     

    Navinta,
LLC

     

    ATTN.  Christopher
Newton, Ph.D.

     

    1499
Lower Ferry Road

     

    Ewing, NJ
08619

     

     

     

    If to
Customer, to:

    

    CorMedix
Inc.

    ATTN.
John C. Houghton

    86 Summit
Ave.

    Summit,
NJ 07901

    

    15.4        Assignment.  This
Agreement may not be assigned or otherwise transferred by either party without
the prior written consent of the other party; provided, however, that
Customer may, without such consent, but with notice to the Manufacturer, assign
this Agreement, in whole or in part, (a) in connection with the transfer or sale
of all or substantially all of its assets or the line of business or Product to
which this Agreement relates, (b) to a successor entity or acquirer in the event
of a merger, consolidation or change of control, or (c) to any Affiliate. Any
purported assignment in violation of the preceding sentence will be
void.  Any permitted assignee will assume the rights and obligations
of its assignor under this Agreement.

    

    15.5        Entire
Agreement.  This Agreement, including the attached Appendices
and any fully-signed Work Orders, each of which are incorporated herein,
constitute the entire agreement between the parties with respect to the specific
subject matter hereof and all prior agreements including but not limited to the
Confidentality Agreement entered into by the Parties, effective October 2nd
2006 with respect
thereto are superseded.  Each party hereto confirms that it is not
relying on any representations or warranties of the other party except as
specifically set forth herein.

    

    15.6        No Modification. This
Agreement and and/or any Work Order or Quality Agreement may be changed only by
a writing signed by authorized representatives of both parties.

    

    15.7        Severability;
Reformation.  Each provision in this Agreement is independent
and severable from the others, and no restriction will be rendered unenforceable
because any other provision may be invalid or unenforceable in whole or in
part.  If the scope of any restrictive provision in this Agreement is
too broad to permit enforcement to its full extent, then such restriction will
be reformed to the maximum extent permitted by law.

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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    15.8          Governing
Law.  This Agreement will be construed and interpreted and its
performance governed by the laws of the state of New Jersey, U.S.A, without regard to any choice
of law principle that would dictate the application of the law of another
jurisdiction. The application of the 1980 United Nations Convention on Contracts
for the International Sale of Goods is hereby specifically
excluded.

    

    15.9          Waiver.  No
waiver of any term, provision or condition of this Agreement in any one or more
instances will be deemed to be or construed as a further or continuing waiver of
any other term, provision or condition of this Agreement.  Any such
waiver, extension or amendment will be evidenced by an instrument in writing
executed by an officer authorized to execute waivers, extensions or
amendments.

    

    15.10        Counterparts.  This
Agreement may be executed in any number of counterparts, each of which will be
deemed an original and all of which together will constitute one and the same
instrument.

    

    15.11        Headings.  This
Agreement contains headings only for convenience and the headings do not
constitute or form a part of this Agreement, and should not be used in the
construction of this Agreement.

    

    15.12        No Benefit to Third
Parties.  The representations, warranties, covenants and
agreements set forth in this Agreement are for the sole benefit of the parties
hereto and their successors and permitted assigns, and they will not be
construed as conferring any rights on any other persons.

    

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

    

    
      
        
          
            
              	
                      CORMEDIX
      INC.

                    	 
      	
                      NAVINTA,
      LLC

                    
	 
      	 
      	 
      	 
      	 
      
	
                      By

                    	
                      /s/ John C. Houghton

                    	 
      	
                      By

                    	
                      /s/ Pankaj Dave

                    
	 
      	 
      	 
      	 
      	 
      
	
                      Print
      Name

                    	
                      John C. Houghton

                    	 
      	
                      Print
      Name

                    	
                      Pankaj Dave

                    
	 
      	 
      	 
      	 
      	 
      
	
                      Title

                    	
                      President and CEO

                    	 
      	
                      Title

                    	
                      Vice President

                    
	 
      	 
      	 
      	 
      	 
      
	
                      Date

                    	
                      12/7/09

                    	 
      	
                      Date

                    	
                      12/4/09

                    

            

          

        

      

    

    

    [*]
Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission.  Confidential treatment has
been requested with respect to the omitted portions.

     

    
      
         

      

      
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