Document:

Amended and Restated 2004 Stock Incentive Plan

 Exhibit 10.1 
 AMENDED AND RESTATED 
 PLAINS EXPLORATION & PRODUCTION COMPANY 
 2004 STOCK INCENTIVE PLAN 
 (As Amended October 31, 2007) 
  

 1. Purpose. 
 The purpose of this Plan is to strengthen Plains Exploration & Production Company, a Delaware corporation (the “Company”), by providing an incentive to its employees, officers,
consultants and directors and thereby encouraging them to devote their abilities and industry to the success of the Company’s business enterprise. It is intended that this purpose be achieved by extending to employees (including future
employees who have received a formal written offer of employment), officers, consultants and directors of the Company and its Subsidiaries and Affiliates an added long-term incentive for high levels of performance and unusual efforts through the
grant of Incentive Stock Options, Nonqualified Stock Options, SARs, Performance Units and Performance Shares, Share Awards, Restricted Stock and Restricted Stock Units (as each term is herein defined). 
 2. Definitions. 
 For
purposes of the Plan: 
 2.1 “Affiliate” means any entity, directly or indirectly, controlled by, controlling
or under common control with the Company or any corporation or other entity acquiring, directly or indirectly, all or substantially all the assets and business of the Company, whether by operation of law or otherwise. Notwithstanding the foregoing,
in the case of Options or SARs, “Affiliate” shall mean any corporation or other entity in a chain of corporations and/or other entities in which the Company has a “controlling interest” within the meaning of Treas. Reg. §
1.414(c)-2(b)(2)(i), but using the threshold of 50 percent ownership wherever 80 percent appears. 
 2.2
“Agreement” means the written agreement between the Company and an Optionee or Grantee evidencing the grant of an Option or Award and setting forth the terms and conditions thereof. 
 2.3 “Appreciation Value” means the appreciation in the Fair Market Value of a Share for purposes of determining payments
to be made to a Grantee, and shall be measured by determining the amount equal to the Fair Market Value of a Share on the exercise date minus the exercise price of the SAR being exercised (which “exercise price” shall not be less than 100%
of the Fair Market Value of a Share on the date the SAR is granted). 
 2.4 “Award” means a grant of SARs,
Restricted Stock or Restricted Stock Units, a Performance Award, a Share Award or any or all of them. 
 2.5
“Board” means the Board of Directors of the Company. 
 2.6 “Cause” means: 
 (a) for purposes of Section 6.4, the commission of an act of fraud or intentional misrepresentation or an act of embezzlement,
misappropriation or conversion of assets or opportunities of the Company or any of its Subsidiaries; and 
  

 (b) in the case of an Optionee or Grantee whose employment with the Company,
Subsidiary or Affiliate is subject to the terms of an employment agreement between such Optionee or Grantee and the Company, Subsidiary or Affiliate, which employment agreement includes a definition of “Cause”, the term “Cause”
as used in this Plan or any Agreement shall have the meaning set forth in such employment agreement during the period that such employment agreement remains in effect; and 
 (c) in all other cases, (i) intentional failure to perform reasonably assigned duties, (ii) dishonesty or willful
misconduct in the performance of duties, (iii) involvement in a transaction in connection with the performance of duties to the Company or any of its Subsidiaries or Affiliates which transaction is adverse to the interests of the Company or any
of its Subsidiaries or Affiliates and which is engaged in for personal profit or (iv) willful violation of any law, rule or regulation in connection with the performance of duties (other than traffic violations or similar minor offenses)
provided, however, that following a Change in Control clause (i) of this Section 2.8(c) shall not constitute “Cause.” 
 2.7 “Change in Capitalization” means any increase or reduction in the number of Shares, or any change (including, but not limited to, in the case of a spin-off, dividend or other distribution in respect of Shares, a
change in value) in the Shares or exchange of Shares for a different number or kind of shares or other securities of the Company or another corporation, by reason of a reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights or debentures, stock dividend, stock split or reverse stock split, extraordinary cash dividend, combination or exchange of shares, repurchase of shares, change in corporate structure or otherwise.

 2.8 A “Change in Control” shall mean the occurrence of any of the following: 
 (a) The acquisition by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)) of “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of any securities of the Company which generally entitles the holder
thereof to vote for the election of directors of the Company (the “Voting Securities”) which, when added to the Voting Securities then “Beneficially Owned” by such Person, would result in such Person either “Beneficially
Owning” fifty percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities or having the ability to elect fifty percent (50%) or more of the Company’s directors; provided, however,
that for purposes of this paragraph (a) of Section 2.10, a Person shall not be deemed to have made an acquisition of Voting Securities if such Person; (i) becomes the Beneficial Owner of more than the permitted percentage of Voting
Securities solely as a result of open market acquisition of Voting Securities by the Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by such Person; (ii) is
the Company or any corporation or other Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by the Company (a “Controlled Entity”); (iii) acquires Voting
Securities in connection with a “Non-Control Transaction” (as defined in paragraph (c) of this Section 2.10); or (iv) becomes the Beneficial Owner of more than the permitted percentage of Voting Securities as a result of a
transaction approved by a majority of the Incumbent Board (as defined in paragraph (b) below); or 
  

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 (b) The individuals who, as of the Effective Date, are members of the Board (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the Board; provided, however, that if either the election of any new director or the nomination for election of any new director by the Company’s
stockholders was approved by a vote of at least a majority of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent
Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
 (c) The consummation of a merger, consolidation or reorganization involving the Company (a “Business Combination”), unless
(i) the stockholders of the Company, immediately before the Business Combination, own, directly or indirectly immediately following the Business Combination, at least fifty percent (50%) of the combined voting power of the outstanding
voting securities of the corporation resulting from the Business Combination (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before the Business Combination, and
(ii) the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for the Business Combination constitute at least a majority of the members of the Board of Directors of the Surviving
Corporation, and (iii) no Person (other than (x) the Company or any Controlled Entity, (y) a trustee or other fiduciary holding securities under one or more employee benefit plans or arrangements (or any trust forming a part thereof)
maintained by the Company, the Surviving Corporation or any Controlled Entity, or (z) any Person who, immediately prior to the Business Combination, had Beneficial Ownership of fifty percent (50%) or more of the then outstanding Voting
Securities) has Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities (a Business Combination described in clauses (i), (ii) and
(iii) of this paragraph shall be referred to as a “Non-Control Transaction”); 
 (d) A complete
liquidation or dissolution of the Company; or 
 (e) The sale or other disposition of all or substantially all of the
assets of the Company to any Person (other than a transfer to a Controlled Entity). 
 Notwithstanding the foregoing, if
Optionee’s or Grantee’s employment is terminated and Optionee or Grantee reasonably demonstrates that such termination (x) was at the request of a third party who has indicated an intention or has taken steps reasonably calculated to
effect a Change in Control and who effectuates a Change in Control or (y) otherwise occurred in connection with, or in anticipation of, a Change in Control which actually occurs, then for all purposes hereof, the date of a Change in Control
with respect to Optionee or Grantee shall mean the date immediately prior to the date of such termination of employment. 
 A Change in
Control shall not be deemed to occur solely because (A) fifty percent (50%) or more of the then outstanding Voting Securities is Beneficially Owned by (x) a trustee or other fiduciary holding securities under one or more employee
benefit plans or arrangements (or any 

  

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trust forming a part thereof) maintained by the Company or any Controlled Entity or (y) any corporation which, immediately prior to its acquisition of such
interest, is owned directly or indirectly by the stockholders of the Company in substantially the same proportion as their ownership of stock in the Company immediately prior to such acquisition or (B) Plains Resources Inc. distributes to its
stockholders all of the capital stock of the Company then held by it. 
 2.9 “Code” means the Internal Revenue
Code of 1986, as amended. 
 2.10 “Committee” means a committee, as described in Section 3.1, appointed
by the Board from time to time to administer the Plan and to perform the functions set forth herein. 
 2.11
“Company” means Plains Exploration and Production Company. 
 2.12 “Director” means a director of
the Company. 
 2.13 “Disability” means: (a) in the case of an Optionee or Grantee whose employment with
the Company or a Subsidiary is subject to the terms of an employment agreement between such Optionee or Grantee and the Company or Subsidiary, which employment agreement includes a definition of “Disability”, the term
“Disability” as used in this Plan or any Agreement shall have the meaning set forth in such employment agreement (b) the term “Disability” as used in the Company’s long-term disability plan, if any; or (c) in all
other cases, the term “Disability” as used in this Plan or any Agreement shall mean a physical or mental infirmity which impairs the Optionee’s or Grantee’s ability to perform substantially his or her duties for a period of one
hundred eighty (180) consecutive days. 
 2.14 “Division” means any of the operating units or divisions
of the Company designated as a Division by the Committee. 
 2.15 “Eligible Individual” means any of the
following individuals who is designated by the Committee as eligible to receive Options or Awards subject to the conditions set forth herein: (a) any director, officer or employee of the Company, Subsidiary or Affiliate, (b) any individual
to whom the Company or Subsidiary or Affiliate has extended a formal, written offer of employment, or (c) any consultant or advisor of the Company, Subsidiary or Affiliate. 
 2.16 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 2.17 “Fair Market Value” on any date means the closing sales prices of the Shares (i) on the day before such date, or
(ii) on such date if an Agreement so provides, on the principal national securities exchange on which such Shares are listed or admitted to trading, or, if such Shares are not so listed or admitted to trading, the average of the per Share
closing bid price and per Share closing asked price on such date as quoted on the National Association of Securities Dealers Automated Quotation System or such other market in which such prices are regularly quoted, or, if there have been no
published bid or asked quotations with respect to Shares on such date, the Fair Market Value shall be the value established by the Board in good faith and, in the case of an Incentive Stock Option, in accordance with Section 422 of the Code.

  

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 2.18 “Grantee” means a person to whom an Award has been granted under the
Plan. 
 2.19 “Incentive Stock Option” means an Option satisfying the requirements of Section 422 of the
Code and designated by the Committee as an Incentive Stock Option. 
 2.20 “Nonemployee Director” means a
director of the Company who is a “nonemployee director” within the meaning of Rule 16b-3 promulgated under the Exchange Act. 
 2.21 “Nonqualified Stock Option” means an Option which is not an Incentive Stock Option. 
 2.22 “Option” means a Nonqualified Stock Option or an Incentive Stock Option. 
 2.23
“Optionee” means a person to whom an Option has been granted under the Plan. 
 2.24 “Outside
Director” means a director of the Company who is an “outside director” within the meaning of Section 162(m) of the Code and the regulations promulgated thereunder. 
 2.25 “Parent” means any corporation which is a parent corporation (within the meaning of Section 424(e) of the Code)
with respect to the Company. 
 2.26 “Performance Awards” means Performance Units, Performance Shares or
either or both of them. 
 2.27 “Performance-Based Compensation” means any Option or Award that is intended to
constitute “performance based compensation” within the meaning of Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder. 
 2.28 “Performance Cycle” means the time period specified by the Committee at the time Performance Awards are granted during which the performance of the Company, or a Subsidiary Affiliate or
Division will be measured. 
 2.29 “Performance Objectives” has the meaning set forth in Section 11.

 2.30 “Performance Shares” means Shares issued or transferred to an Eligible Individual under
Section 11. 
 2.31 “Performance Units” means Performance Units granted to an Eligible Individual under
Section 11. 
 2.32 “Plan” means the Plains Exploration & Production Company 2004 Stock
Incentive Plan, as amended and restated from time to time. 
  

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 2.33 “Retained Distribution” means any securities or other property
(other than regular cash dividends) distributed by the Company in respect of Restricted Stock during any Restricted Period. 
 2.34 “Restricted Period” means the period designated by the Committee during which Restricted Stock may not be sold, assigned, pledged or otherwise encumbered. 
 2.35 “Restricted Stock” means Shares issued or transferred to an Eligible Individual pursuant to Section 9.

 2.36 “Restricted Stock Unit” means a right to receive one Share or a cash amount equal to the Fair Market
Value of one Share or a combination thereof, as determined by the Committee in its sole discretion, subject to the terms of the Plan and the applicable Agreement. 
 2.37 “SAR” means a right to receive the Appreciation Value of a Share. 
 2.38 “Share Award” means an Award of Shares granted pursuant to Section 12. 
 2.39 “Shares” means the common stock, par value $.01 per share, of the Company and any other securities into which such
shares are changed or for which such shares are exchanged. 
 2.40 “Subsidiary” means (i) except as
provided in subsection (ii) below, any corporation which is a subsidiary corporation within the meaning of Section 424(f) of the Code with respect to the Company, and (ii) in relation to the eligibility to receive Options or Awards
other than Incentive Stock Options and continued employment for purposes of Options and Awards (unless the Committee determines otherwise), any entity, whether or not incorporated, in which the Company directly or indirectly owns 50% or more of the
outstanding equity or other ownership interests. Notwithstanding the foregoing, in the case of Options or SARs, “Subsidiary” shall mean any corporation or other entity in a chain of corporations and/or other entities in which the Company
has a “controlling interest” within the meaning of Treas. Reg. § 1.414(c)-2(b)-(2)(i), but using the threshold of 50 percent ownership wherever 80 percent appears. 
 2.41 “Ten-Percent Stockholder” means an Eligible Individual, who, at the time an Incentive Stock Option is to be granted
to him or her, owns (within the meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, or of a Parent, Subsidiary or Affiliate.

 3. Administration. 
 3.1 The Plan shall be administered by the Committee, which shall hold meetings at such times as may be necessary for the proper administration of the Plan. The Committee shall keep minutes of its meetings.
A quorum shall be a majority of the members of the Committee and a majority of a quorum may authorize any action. Any decision or determination reduced to writing and signed by all of the members of the Committee shall be as fully effective as if
made by a vote at a meeting duly called and held. The Committee shall 

  

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consist of one (1) or more Directors and may consist of the entire Board. If the Committee consists of less than the entire Board, then with respect to any Option
or Award to an individual who is subject to Section 16 of the Exchange Act, the Committee shall consist of at least two (2) Directors each of whom shall be a Nonemployee Director and to the extent necessary for any award under the Plan to
qualify as performance-based compensation for the purposes of Section 162(m) of the Code, the Committee shall consist of at least two (2) Directors each of whom shall be an Outside Director. For purposes of the preceding sentence, if one
or more members of the Committee is not a Nonemployee Director and an Outside Director but recuses himself or herself or abstains from voting with respect to a particular action taken by the Committee, then the Committee, with respect to that
action, shall be deemed to consist only of the members of the Committee who have not recused themselves or abstained from voting. Subject to applicable law, the Committee may delegate its authority under the Plan to any other person or persons.
Notwithstanding the foregoing, the composition of the Committee, for purposes of all discretionary grants of Options and other Awards made to Nonemployee Directors, shall consist solely of Nonemployee Directors, without being subject to discretion
of any of the Company’s officers or management personnel. 
 3.2 No member of the Committee shall be liable for any
action, failure to act, determination or interpretation made in good faith with respect to this Plan or any transaction hereunder. The Company hereby agrees to indemnify each member of the Committee for all costs and expenses and, to the extent
permitted by applicable law, any liability incurred in connection with defending against, responding to, negotiating for the settlement of or otherwise dealing with any claim, cause of action or dispute of any kind arising in connection with any
actions in administering this Plan or in authorizing or denying authorization to any transaction hereunder. 
 3.3
Subject to the express terms and conditions set forth herein, the Committee shall have the power from time to time to: 
 (a) determine those Eligible Individuals to whom Options shall be granted under the Plan and the number of such Options to be granted and to prescribe the terms and conditions (which need not be identical) of each such Option, including the
exercise price per Share, the vesting schedule and the duration of each Option, and make any amendment or modification to any Option Agreement consistent with the terms of the Plan; 
 (b) select those Eligible Individuals to whom Awards shall be granted under the Plan and to determine the number of Shares in
respect of which each Award is granted, the terms and conditions (which need not be identical) of each such Award, and make any amendment or modification to any Award Agreement consistent with the terms of the Plan; 
 (c) to construe and interpret the Plan and the Options and Awards granted hereunder and to establish, amend and revoke rules and
regulations for the administration of the Plan, including, but not limited to, correcting any defect or supplying any omission, or reconciling any inconsistency in the Plan or in any Agreement, in the manner and to the extent it shall deem necessary
or advisable, including so that the Plan and the operation of the Plan complies with Rule 16b-3 under the Exchange Act, the Code to the extent applicable and other applicable law, and otherwise to make the Plan fully effective. All decisions and

  

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determinations by the Committee in the exercise of this power shall be final, binding and conclusive upon the Company, its Subsidiaries, the Optionees and Grantees,
and all other persons having any interest therein; 
 (d) to determine the duration and purposes for leaves of absence
which may be granted to an Optionee or Grantee on an individual basis without constituting a termination of employment or service for purposes of the Plan; 
 (e) to exercise its discretion with respect to the powers and rights granted to it as set forth in the Plan; and 
 (f) generally, to exercise such powers and to perform such acts as are deemed necessary or advisable to promote the best interests of the Company with respect to the Plan. 
 4. Stock Subject to the Plan; Grant Limitations. 
 4.1 The maximum number of Shares that may be made the subject of Options and Awards granted under the Plan is 8,400,000: provided, however, that in the aggregate, not more than 8,400,000 of the allotted
Shares may be made the subject of Restricted Stock awards or Restricted Stock Units under Section 9 and 10 of the Plan respectively (other than Shares of Restricted Stock made in settlement of Performance Units pursuant to Section 11.1(b))
and not more than 5% of the allotted Shares may be made the subject of Share Awards under Section 12. The maximum number of Shares that may be the subject of Options and Awards granted to an Eligible Individual in any one calendar year period
may not exceed 500,000 Shares; provided, however, that pursuant to currently existing agreements, in the event of a Change in Control the maximum number of Shares that may be the subject of Options and Awards granted to an Eligible Individual in the
year in which the Change in Control occurs may exceed 500,000 Shares, but may not in any event exceed 2,500,000 Shares. The maximum dollar amount of cash or the Fair Market Value of Shares that any Eligible Individual may receive in any calendar
year in respect of Performance Units denominated in dollars may not exceed $1,000,000. The Company shall reserve for the purposes of the Plan, out of its authorized but unissued Shares or out of Shares held in the Company’s treasury, or partly
out of each, such number of Shares as shall be determined by the Board. 
 4.2 In connection with the grant of an Option
or an Award (other than the grant of a Performance Unit denominated in dollars), the number of Shares shall be reduced by the number of Shares in respect of which the Option or Award is granted or denominated; provided, however, that if any Option
is exercised by tendering Shares, either actually or by attestation, as full or partial payment of the exercise price, the maximum number of Shares available under Section 4.1 shall be increased by the number of Shares so tendered. In
connection with the exercise of an Award of SARs, the maximum number of Shares available under Section 4.1 shall be increased by the number of Shares equal to the number of SARs being exercised minus the number of Shares that are issued upon
such exercise, provided that if the number of Shares issued is greater than the number of SARs being exercised, the amount equal to the difference between those numbers shall be subtracted from the maximum number of Shares available under the Plan.

  

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 4.3 Whenever any outstanding Option or Award or portion thereof expires, is
canceled, is settled in cash (including the settlement of tax withholding obligations using Shares) or is otherwise terminated for any reason without having been exercised or payment having been made in respect of the entire Option or Award, the
Shares allocable to the expired, canceled, settled or otherwise terminated portion of the Option or Award may again be the subject of Options or Awards granted hereunder. 
 4.4 In no event may more than 8,400,000 Shares be issued upon the exercise of Incentive Stock Options granted under the Plan.

 5. Option Grants for Eligible Individuals. 
 5.1 Authority of Committee. Subject to the provisions of the Plan, the Committee shall have full and final authority to
select those Eligible Individuals who will receive Options, and the terms and conditions of the grant to such Eligible Individuals shall be set forth in an Agreement. Subject to applicable law and regulations, Incentive Stock Options may be granted
only to Eligible Individuals who are employees of the Company or any Subsidiary or Affiliate. 
 5.2 Exercise
Price. The purchase price or the manner in which the exercise price is to be determined for Shares under each Option shall be determined by the Committee and set forth in the Agreement; provided, however, that the exercise price per Share under
each Option shall not be less than 100% of the Fair Market Value of a Share on the date the Option is granted (110% in the case of an Incentive Stock Option granted to a Ten-Percent Stockholder). 
 5.3 Maximum Duration. Options granted hereunder shall be for such term as the Committee shall determine, provided that an
Incentive Stock Option shall not be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Stock Option granted to a Ten-Percent Stockholder) and a Nonqualified Stock
Option shall after the expiration of ten (10) years from the date it is granted; provided, however, that unless the Committee provides otherwise an Option (other than an Incentive Stock Option) may, upon the death of the Optionee prior to the
expiration of the Option, be exercised for up to one (1) year following the date of the Optionee’s death but in no event shall the term as so extended exceed the maximum term of such Option. 
 5.4 Vesting. Subject to Section 7.4, each Option shall become exercisable in such installments (which need not be equal)
and at such times as may be designated by the Committee and set forth in the Agreement. To the extent not exercised, installments shall accumulate and be exercisable, in whole or in part, at any time after becoming exercisable, but not later than
the date the Option expires. The Committee may accelerate the exercisability of any Option or portion thereof at any time. 
 5.5 Limitations on Incentive Stock Options. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code, including but not limited to the requirement
that no Incentive Stock Option shall be granted more than ten years after the effective date of the Plan. An Option shall be treated as an Incentive Stock Option only to the extent that the aggregate Fair Market Value (determined at 

  

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the time the Option is granted) of the shares with respect to which all Incentive Stock Options held by an Optionee (under the Plan and all other plans of the Company,
its Parent or any Subsidiary), become exercisable for the first time during any calendar year does not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted. To the extent this
limitation is exceeded, an Option shall be treated as a Nonqualified Stock Option regardless of its designation as an Incentive Stock Option. Should any Incentive Stock Option remain exercisable after three months after employment terminates for any
reason other than Disability or death, or after one year if employment terminates due to Disability, the Option shall immediately be converted to a Nonqualified Stock Option. In order to obtain the benefits of an Incentive Stock Option under the
Code, no sale or other disposition may be made of any shares upon exercise of such Option until the later of one year from the date of issuance of the shares acquired pursuant to the exercise of the Option, or two years from the grant date of the
Option. The Company shall have no liability in the event it is determined that any Option intended to be an Incentive Stock Option fails to qualify as such, whether such failure is a result of a disqualifying disposition or the terms of this Plan or
any governing Agreement. 
 6. Grants for Nonemployee Directors and Outside Directors. 
 6.1 Grant. In its discretion, the Committee may elect to grant Options (and other Awards) to Nonemployee Directors or Outside
Directors under any terms or conditions it deems reasonable. 
 7. Terms and Conditions Applicable to All Options. 

7.1 Non-Transferability. No Option shall be transferable by the Optionee otherwise than by will or by the laws of descent
and distribution or, in the case of an Option other than an Incentive Stock Option, pursuant to a domestic relations order (within the meaning of Rule 16a-12 promulgated under the Exchange Act), and an Option shall be exercisable during the lifetime
of such Optionee only by the Optionee or his or her guardian or legal representative. Notwithstanding the foregoing, the Committee may set forth in the Agreement evidencing an Option (other than an Incentive Stock Option) at the time of grant or
thereafter, that the Option may be transferred to members of the Optionee’s immediate family, to trusts solely for the benefit of such immediate family members and to partnerships in which such family members and/or trusts are the only
partners, and for purposes of this Plan, a transferee of an Option shall be deemed to be the Optionee. For this purpose, immediate family means the Optionee’s spouse, parents, children, stepchildren and grandchildren and the spouses of such
parents, children, stepchildren and grandchildren. The terms of an Option shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the Optionee. 
 7.2 Method of Exercise. The exercise of an Option shall be made only by a written notice delivered in person or by mail or
telecopy to the Secretary of the Company at the Company’s principal executive office (or through such other notification method that the Committee may adopt), specifying the number of Shares to be exercised and, to the extent applicable,
accompanied by payment therefor and otherwise in accordance with the Agreement pursuant to which the Option was granted. The exercise price for any Shares purchased pursuant to the exercise of an Option shall be paid, in either of the following
forms (or any combination 

  

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thereof): (a) cash or (b) the transfer, either actually or by attestation, to the Company of Shares that have been held by the Optionee for at least six
(6) months (or such lesser period as may be permitted by the Committee) prior to the exercise of the Option, such transfer to be upon such terms and conditions as determined by the Committee or (c) a combination of cash and the transfer of
Shares; provided, however, that the Committee may determine that the exercise price shall be paid only in cash. In addition, Options may be exercised through a registered broker-dealer pursuant to such cashless exercise procedures which are, from
time to time, deemed acceptable by the Committee. Any Shares transferred to the Company as payment of the exercise price under an Option shall be valued at their Fair Market Value on the day preceding the date of exercise of such Option. If
requested by the Committee, the Optionee shall deliver the Agreement evidencing the Option to the Secretary of the Company who shall endorse thereon a notation of such exercise and return such Agreement to the Optionee. No fractional Shares (or cash
in lieu thereof) shall be issued upon exercise of an Option and the number of Shares that may be purchased upon exercise shall be rounded to the nearest number of whole Shares. Notwithstanding the foregoing, to the extent that the Committee
determines that a cashless exercise or other method of exercise hereunder by an Optionee would be deemed under applicable law, regulation or exchange requirement, to be an impermissible extension of credit or arrangement of credit by the Company for
the benefit of an officer, or to be prohibited for any other reason, such method of exercise shall not be permitted with respect to such Optionee. 
 7.3 Rights of Optionees. No Optionee shall be deemed for any purpose to be the owner of any Shares subject to any Option unless and until (a) the Option shall have been exercised pursuant to
the terms thereof, (b) the Company shall have issued and delivered Shares to the Optionee, and (c) the Optionee’s name shall have been entered as a stockholder of record on the books of the Company. Thereupon, the Optionee shall have
full voting, dividend and other ownership rights with respect to such Shares, subject to such terms and conditions as may be set forth in the applicable Agreement. 
 7.4 Effect of Change in Control. In the event of a Change in Control, all Options outstanding on the date of such Change in
Control shall become immediately and fully exercisable. In addition, to the extent set forth in an Agreement evidencing the grant of an Option, an Optionee will be permitted to surrender to the Company for cancellation within ninety (90) days
after such Change in Control any Option or portion of an Option to the extent not yet exercised and the Optionee will be entitled to receive a cash payment in an amount equal to the Fair Market Value, on the day preceding the date of surrender, of
the Shares subject to the Option or portion thereof surrendered, over (b) the aggregate exercise price for such Shares under the Option or portion thereof surrendered. In the event that the Committee requires exercise of Options at the time of
such Change in Control, they shall be cancelled effective as of the Change in Control. The Committee may require cancellation of Options in the Agreement evidencing the Options or by resolution at the time of a Change in Control. Notwithstanding any
other provision of this Plan or any Agreement, the Committee may require such cancellation without an Optionee’s consent even if the cancellation is a modification of the terms of an Option. In the event an Optionee’s employment or service
with the Company and its Subsidiaries terminates following a Change in Control, each Option held by the Optionee that remains outstanding after the Change in Control and that was exercisable as of the date of termination of the Optionee’s
employment or service shall, notwithstanding any shorter period set forth in the Agreement evidencing the Option, remain exercisable for a period ending not before the earlier 

  

 11 

 
of (x) the first anniversary of the termination of the Optionee’s employment or service or (y) the expiration of the stated term of the Option.

 8. SARs. 
 8.1 Grant. The Committee may in its discretion, either alone or in connection with the grant of an Option, grant SARs to Eligible Individuals in accordance with the Plan, the terms and conditions of which shall be set
forth in an Agreement. If granted in connection with an Option, a SAR shall cover the same Shares covered by the Option (or such lesser number of Shares as the Committee may determine) and shall, except as provided in this Section 8, be subject
to the same terms and conditions as the related Option. A SAR may be granted (i) at any time if unrelated to an Option, or (ii) if related to an Option, at the time of grant. 
 8.2 SAR Related to an Option. 
 (a) Exercise. A SAR granted in connection with an Option shall be exercisable at such time or times and only to the extent that the related Options are exercisable, and will not be transferable
except to the extent the related Option may be transferable. A SAR granted in connection with an Option shall be exercisable only if the Fair Market Value of a Share on the date of exercise exceeds the purchase price specified in the related Option
Agreement. 
 (b) Amount Payable. Upon the exercise of SARs related to an Option, the Grantee shall be entitled
to receive an amount determined by multiplying (A) the Appreciation Value of a Share, by (B) the number of SARs being exercised. Notwithstanding the foregoing, the Committee may limit in any manner the amount payable with respect to any
SAR by including such a limit in the Agreement evidencing the SAR at the time it is granted. 
 (c) Treatment of
Related Options and SARs Upon Exercise. Upon the exercise of a SAR granted in connection with an Option, the Option shall be canceled to the extent of the number of Shares as to which the SAR is exercised, and upon the exercise of an Option
granted in connection with a SAR, the SAR shall be canceled to the extent of the number of Shares as to which the Option is exercised or surrendered. 
 8.3 SAR Unrelated to an Option. The Committee may grant SARs unrelated to Options. SARs unrelated to Options shall contain such terms and conditions as to exercisability (subject to
Section 8.7), vesting and duration as the Committee shall determine, but in no event shall they have a term of greater than ten (10) years. Upon exercise of a SAR unrelated to an Option, the Grantee shall be entitled to receive an amount
determined by multiplying (A) the Appreciation Value of a Share, by (B) number of SARs being exercised. Notwithstanding the foregoing, the Committee may limit in any manner the amount payable with respect to any SAR by including such a
limit in the Agreement evidencing the SAR at the time it is granted. 
 8.4 Method of Exercise. The exercise of
an Award of SARs shall be made only by a written notice delivered in person or by mail or telecopy to the Secretary of the Company at the Company’s principal executive office (or through such other notification method that the Committee may
adopt), specifying the number of SARs with respect to which the Award is being exercised. If requested by the Committee, the Grantee shall deliver the Agreement 

  

 12 

 
evidencing the SARs being exercised and the Agreement evidencing any related Option to the Secretary of the Company who shall endorse thereon a notation of such
exercise and return such Agreement to the Grantee. 
 8.5 Form of Payment. Payment of the amount determined under
Sections 8.2(b) or 8.3 shall be made solely in cash. 
 8.6 Effect of Change in Control. In the event of a Change
in Control, all outstanding SARs shall become immediately and fully exercisable. In addition, to the extent set forth in an Agreement evidencing the grant of a SAR unrelated to an Option (including as such Agreement may be amended in the
Committee’s sole discretion prior the Change in Control), a Grantee will be entitled to receive a payment from the Company in cash (provided that the SARs have any Appreciation Value), as the Committee shall determine, with a value equal to the
aggregate Appreciation Value, on the date of exercise, of the unexercised SARs. In the event that the Committee requires exercise of SARs at the time of such Change in Control (even if they have no Appreciation Value), they shall be cancelled
effective as of the Change in Control. The Committee may require cancellation of SARs in the Agreement evidencing the SARs or by resolution at the time of a Change in Control. Notwithstanding any other provision of this Plan or any Agreement, the
Committee may require such cancellation without a Grantee’s consent even if the cancellation is a modification of the terms of the SARs. In the event a Grantee’s employment or other service with the Company terminates following a Change in
Control and any SARs remain outstanding after the Change in Control, each SAR held by the Grantee that was exercisable as of the date of termination of the Grantee’s employment or other service shall remain exercisable for a period ending not
before the earlier of the first anniversary of (A) the termination of the Grantee’s employment or (B) the expiration of the stated term of the SAR. 
 8.7 Non-Transferability. No SARs shall be transferable by the Grantee otherwise than by will or by the laws of descent and
distribution or pursuant to a domestic relations order (within the meaning of Rule 16a-12 promulgated under the Exchange Act), and SARs shall be exercisable during the lifetime of such Grantee only by the Grantee or his or her guardian or legal
representative. Notwithstanding the foregoing, the Committee may set forth in the Agreement evidencing an Award of SARs at the time of grant or thereafter, that the SARs may be transferred to members of the Grantee’s immediate family, to trusts
solely for the benefit of such immediate family members and to partnerships in which such family members and/or trusts are the only partners, and for purposes of this Plan, a transferee of an Award of SARs shall be deemed to be the Grantee. For this
purpose, immediate family means the Grantee’s spouse, parents, children, stepchildren and grandchildren and the spouses of such parents, children, stepchildren and grandchildren. The terms of an Award shall be final, binding and conclusive upon
the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
 9. Restricted Stock. 
 9.1 Grant. The Committee may grant Awards to Eligible Individuals of Restricted Stock, which shall be evidenced by an
Agreement between the Company and the Grantee. Each Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine; provided, however, that such Awards shall not have vesting provisions more
favorable than equal, annual, ratable vesting over a three-year period from the 

  

 13 

 
grant date of the Award, except in the case of death, Disability, retirement or a Change in Control. Without limiting the generality of the foregoing, such Agreements
may require that an appropriate legend be placed on Share certificates. Awards of Restricted Stock shall be subject to the terms and provisions set forth below in this Section 9. 
 9.2 Rights of Grantee. Shares of Restricted Stock granted pursuant to an Award hereunder shall be issued in the name of the
Grantee as soon as reasonably practicable after the Award is granted provided that the Grantee has executed an Agreement evidencing the Award, the appropriate blank stock powers and, in the discretion of the Committee, an escrow agreement and any
other documents which the Committee may require as a condition to the issuance of such Shares. If a Grantee shall fail to execute the Agreement evidencing a Restricted Stock Award, or any documents which the Committee may require within the time
period prescribed by the Committee at the time the Award is granted, the Award shall be null and void. At the discretion of the Committee, Shares issued in connection with a Restricted Stock Award shall be deposited together with the stock powers
with an escrow agent (which may be the Company) designated by the Committee. Unless the Committee determines otherwise and as set forth in the Agreement, upon delivery of the Shares to the escrow agent, the Grantee shall have all of the rights of a
stockholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other distributions paid or made with respect to the Shares. 
 9.3 Non-transferability. Until all restrictions upon the Shares of Restricted Stock awarded to a Grantee shall have lapsed in
the manner set forth in Section 9.4, such Shares and Retained Distribution shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
 9.4 Lapse of Restrictions. 
 (a) Generally. Restrictions upon Shares of Restricted Stock awarded hereunder shall lapse at such time or times and on such terms and conditions as the Committee may determine (the “Restricted
Period”). The Agreement evidencing the Award shall set forth any such restrictions. 
 (b) Effect of Change in
Control. Unless the Committee shall determine otherwise at the time of the grant of an Award of Restricted Stock, the restrictions upon Shares of Restricted Stock shall lapse upon a Change in Control. The Agreement evidencing the Award shall set
forth any such provisions. 
 9.5 Treatment of Dividends. At the time an Award of Shares of Restricted Stock is
granted, the Committee may, in its discretion, determine that the payment to the Grantee of dividends, or a specified portion thereof, declared or paid on such Shares by the Company shall be (a) deferred until the lapsing of the restrictions
imposed upon such Shares and (b) held by the Company for the account of the Grantee until such time. In the event that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in Shares (which
shall be held as additional Shares of Restricted Stock) or held in cash. If deferred dividends are to be held in cash, there may be credited at the end of each year (or portion thereof) interest on the amount of the account at the beginning of the
year at a rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends in respect of Shares 

  

 14 

 
of Restricted Stock (whether held in cash or as additional Shares of Restricted Stock), together with interest accrued thereon, if any, shall be made in a lump sum
within 2 1/2 months of the lapsing of restrictions imposed on the Shares in respect of which the deferred dividends were
paid, and any dividends deferred (together with any interest accrued thereon) in respect of any Shares of Restricted Stock shall be forfeited upon the forfeiture of such Shares. 
 9.6 Delivery of Shares. Upon the lapse of the restrictions on Shares of Restricted Stock, the Committee shall cause a stock
certificate to be delivered to the Grantee with respect to such Shares, free of all restrictions hereunder. 
 10. Restricted Stock
Units. 
 10.1 Grant. The Committee may grant Awards of Restricted Stock Units to Eligible Individuals, which
shall be evidenced by an Agreement between the Company and the Grantee. Each Agreement shall contain such restrictions, terms and conditions as the Committee may, in its discretion, determine, subject to the terms and provisions set forth below in
this Section 10. 
 10.2 Rights of Grantees. Until all restrictions upon the Restricted Stock Units awarded
to a Grantee shall have lapsed in the manner set forth in Section 10.5, the Grantee shall not be a shareholder of the Company, nor have any of the rights or privileges of a shareholder of the Company, including, without limitation, rights to
receive dividends and voting rights. 
 10.3 Restricted Stock Unit Account. The Company shall establish and
maintain a separate account (“Restricted Stock Unit Account”) for each Grantee who has received a grant of Restricted Stock Units, and such account shall be credited for the number of Restricted Stock Units granted to such Grantee. Unless
otherwise provided in an applicable Restricted Stock Unit Agreement, a Grantee’s Restricted Stock Unit Account shall be credited for any securities or other property (including regular cash dividends) distributed by the Company in respect of
its Shares. Any such property shall be subject to the same vesting schedule as the Restricted Stock Units to which they relate. 
 10.4 Non-transferability. Until all restrictions upon the Restricted Stock Units awarded to a Grantee shall have lapsed in the manner set forth in Section 10.5, such Restricted Stock Units and any related
securities, cash dividends or other property credited to a Restricted Stock Unit Account shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
 10.5 Vesting. 
 (a) Generally. Restricted Stock Units awarded hereunder and any related securities, cash dividends or other property credited to the Restricted Stock Unit Account shall vest at such time or times and on such terms and
conditions as the Committee may determine; provided, however, that such Awards shall not have vesting provisions more favorable than equal, annual, ratable vesting over a three-year period from the grant date of the Restricted Stock Unit, except in
the case of death, Disability, retirement or a Change in Control; and provided further, that such vesting complies with Code Section 409A substantial risk of 

  

 15 

 
forfeiture requirements. The Agreement evidencing the Award of Restricted Stock Units shall set forth any such terms and conditions. 
 (b) Effect of Change in Control. Unless the Committee shall determine otherwise at the time of the grant of an Award of
Restricted Stock Units, the Restricted Stock Units and any related securities, cash dividends or other property credited to the Restricted Stock Unit Account shall vest upon a Change in Control. The Agreement evidencing the Award of Restricted Stock
Units shall set forth any such provisions. 
 10.6 Payment or Delivery of Shares and Other Property. Within 2-1/2
months after each vesting date of an Award of Restricted Stock Units, full payment shall be made in Shares or in cash or in a combination thereof (based upon the Fair Market Value of the Shares on the day all restrictions lapse), as determined by
the Committee in its sole discretion. If payment is made in Shares, the Committee shall cause a stock certificate to be delivered to the Grantee with respect to such Shares free of all restrictions hereunder. Any securities, cash dividends or other
property credited to a Restricted Stock Unit Account other than Restricted Stock Units shall be paid in kind, or, in the discretion of the Committee, in cash. 
 11. Performance Awards. 
 11.1 Performance Units. The
Committee, in its discretion, may grant Awards of Performance Units to Eligible Individuals, the terms and conditions of which shall be set forth in an Agreement between the Company and the Grantee. Performance Units may be denominated in Shares or
a specified dollar amount and, contingent upon the attainment of specified Performance Objectives within the Performance Cycle, represent the right to receive payment as provided in Section 11.3(c) of (i) in the case of Share-denominated
Performance Units, the Fair Market Value of a Share on the date the Performance Unit was granted, the date the Performance Unit became vested or any other date specified by the Committee, (ii) in the case of dollar-denominated Performance
Units, the specified dollar amount or (iii) a percentage (which may be more than 100%) of the amount described in clause (i) or (ii) depending on the level of Performance Objective attainment; provided, however, that, the Committee
may at the time a Performance Unit is granted specify a maximum amount payable in respect of a vested Performance Unit. Each Agreement shall specify the number of Performance Units to which it relates, the Performance Objectives which must be
satisfied in order for the Performance Units to vest and the Performance Cycle within which such Performance Objectives must be satisfied. 
 (a) Vesting and Forfeiture. Subject to Sections 11.3(c) and 11.4, a Grantee shall become vested with respect to the Performance Units to the extent that the Performance Objectives set forth in the Agreement are satisfied
for the Performance Cycle; provided, however, that in no event shall such Awards vest in full prior to the expiration of one year from the grant date of the Award, except in the case of death, Disability, retirement or a Change in Control.

 (b) Payment of Awards. Subject to Section 11.3(c),
payment to Grantees in respect of vested Performance Units shall be made in full within 2 1/2 months after the last day of
the Performance Cycle to which such Award relates unless the Agreement evidencing the Award provides for the deferral of payment, in which event the terms and conditions of the 

  

 16 

 
deferral shall be set forth in the Agreement. Subject to Section 11.4, such payments may be made entirely in Shares valued at their Fair Market Value, entirely in
cash, or in such combination of Shares and cash as the Committee in its discretion shall determine at any time prior to such payment; provided, however, that if the Committee in its discretion determines to make such payment entirely or partially in
Shares of Restricted Stock, the Committee must determine the extent to which such payment will be in Shares of Restricted Stock and the terms of such Restricted Stock at the time the Award is granted. 
 11.2 Performance Shares. The Committee, in its discretion, may grant Awards of Performance Shares to Eligible Individuals,
the terms and conditions of which shall be set forth in an Agreement between the Company and the Grantee. Each Agreement may require that an appropriate legend be placed on Share certificates. Awards of Performance Shares shall be subject to the
following terms and provisions: 
 (a) Rights of Grantee. The Committee shall provide at the time an Award of
Performance Shares is made the time or times at which the actual Shares represented by such Award shall be issued in the name of the Grantee; provided, however, that no Performance Shares shall be issued until the Grantee has executed an Agreement
evidencing the Award, the appropriate blank stock powers and, in the discretion of the Committee, an escrow agreement and any other documents which the Committee may require as a condition to the issuance of such Performance Shares. If a Grantee
shall fail to execute the Agreement evidencing an Award of Performance Shares, the appropriate blank stock powers and, in the discretion of the Committee, an escrow agreement and any other documents which the Committee may require within the time
period prescribed by the Committee at the time the Award is granted, the Award shall be null and void. At the discretion of the Committee, Shares issued in connection with an Award of Performance Shares shall be deposited together with the stock
powers with an escrow agent (which may be the Company) designated by the Committee. Except as restricted by the terms of the Agreement, upon delivery of the Shares to the escrow agent, the Grantee shall have, in the discretion of the Committee, all
of the rights of a stockholder with respect to such Shares, including the right to vote the Shares and to receive all dividends or other distributions paid or made with respect to the Shares. 
 (b) Non-transferability. Until any restrictions upon the Performance Shares awarded to a Grantee shall have lapsed in the
manner set forth in Sections 11.2(c) or 11.4, such Performance Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated, nor shall they be delivered to the Grantee. The Committee may also
impose such other restrictions and conditions on the Performance Shares, if any, as it deems appropriate. 
 (c)
Lapse of Restrictions. Subject to Sections 11.3(c) and 11.4, restrictions upon Performance Shares awarded hereunder shall lapse and such Performance Shares shall become vested at such time or times and on such terms, conditions and
satisfaction of Performance Objectives as the Committee may, in its discretion, determine at the time an Award is granted; provided, however, that in no event shall such Awards vest in full prior to the expiration of one year from the grant date of
the Award, except in the case of death, Disability, retirement or a Change in Control. 
  

 17 

 (d) Treatment of
Dividends. At the time the Award of Performance Shares is granted, the Committee may, in its discretion, determine that the payment to the Grantee of dividends, or a specified portion thereof, declared or paid on Shares represented by such Award
which have been issued by the Company to the Grantee shall be (i) deferred until the lapsing of the restrictions imposed upon such Performance Shares and (ii) held by the Company for the account of the Grantee until such time. In the event
that dividends are to be deferred, the Committee shall determine whether such dividends are to be reinvested in shares of Stock (which shall be held as additional Performance Shares) or held in cash. If deferred dividends are to be held in cash,
there may be credited at the end of each year (or portion thereof) interest on the amount of the account at the beginning of the year at a rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends in respect of
Performance Shares (whether held in cash or in additional Performance Shares), together with interest accrued thereon, if any, shall be made in a lump sum within 2 1/2 months after the lapsing of restrictions imposed on the Performance Shares in respect of which the deferred dividends were paid, and any dividends deferred (together with any interest
accrued thereon) in respect of any Performance Shares shall be forfeited upon the forfeiture of such Performance Shares. 
 (e) Delivery of Shares. Upon the lapse of the restrictions on Performance Shares awarded hereunder, the Committee shall cause a stock certificate to be delivered to the Grantee with respect to such Shares, free of all
restrictions hereunder. 
 11.3 Performance Objectives. 
 (a) Establishment. Performance Objectives for Performance Awards may be expressed in terms of (i) revenue, (ii) net
income, (iii) operating income; (iv) earnings per Share, (v) Share price, (vi) pre-tax profits, (vii) net earnings, (viii) return on equity or assets, (ix) sales, (x) market share, (xi) total Shareholder
return, (xii) total Shareholder return relative to peers or (xiii) any combination of the foregoing. Performance Objectives may be in respect of the performance of the Company, any of its Subsidiaries or Affiliates, any of its Divisions or
segments or any combination thereof. Performance Objectives may be absolute or relative (to prior performance of the Company or to the performance of one or more other entities or external indices) and may be expressed in terms of a progression
within a specified range. The Performance Objectives with respect to a Performance Cycle shall be established in writing by the Committee by the earlier of (x) the date on which a quarter of the Performance Cycle has elapsed or (y) the
date which is ninety (90) days after the commencement of the Performance Cycle, and in any event while the performance relating to the Performance Objectives remain substantially uncertain. 
 (b) Effect of Certain Events. At the time of the granting of a Performance Award, or at any time thereafter, in either case
to the extent permitted under Section 162(m) of the Code and the regulations thereunder without adversely affecting the treatment of the Performance Award as Performance-Based Compensation, the Committee may provide for the manner in which
performance will be measured against the Performance Objectives (or may adjust the Performance Objectives), include or exclude items to measure specific objectives, such as losses from discontinued operations, extraordinary, unusual or nonrecurring
gains and losses, the cumulative effect of accounting changes, acquisitions or 

  

 18 

 
divestitures or other corporate transactions, core process redesigns, structural changes/outsourcing, and foreign exchange impacts. 
 (c) Determination of Performance. Prior to the vesting, payment, settlement or lapsing of any restrictions with respect to
any Performance Award that is intended to constitute Performance-Based Compensation made to a Grantee who is subject to Section 162(m) of the Code, the Committee shall certify in writing that the applicable Performance Objectives have been
satisfied to the extent necessary for such Award to qualify as Performance Based Compensation. 
 11.4 Effect of
Change in Control. In the event of a Change in Control, unless otherwise determined by the Committee and set forth in the Agreement evidencing the Award: 
 (a) With respect to Performance Units, the Grantee shall (i) become vested in all outstanding Performance Units as if all Performance Objectives had been satisfied at the maximum level and
(ii) be entitled to receive in respect of all Performance Units which become vested as a result of a Change in Control a single sum cash payment within ten (10) days after such Change in Control. 
 (b) With respect to Performance Shares, all restrictions shall lapse immediately on all outstanding Performance Shares as if all
Performance Objectives had been satisfied at the maximum level. 
 (c) The Agreements evidencing Performance Shares and
Performance Units shall provide for the treatment of such Awards (or portions thereof), if any, which do not become vested as the result of a Change in Control, including, but not limited to, provisions for the adjustment of applicable Performance
Objectives. 
 11.5 Non-transferability. Until the vesting of Performance Units or the lapsing of any
restrictions on Performance Shares, as the case may be, such Performance Units or Performance Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated. 
 12. Other Share Based Awards. 
 The Committee may grant a Share Award to any Eligible Individual on such terms and conditions as the Committee may determine in its sole discretion. Share Awards may be made as additional compensation for services rendered by the Eligible
Individual or may be in lieu of cash or other compensation to which the Eligible Individual is entitled from the Company. 
 13.
Effect of a Termination of Employment. 
 Unless set forth in this Plan, the Agreement evidencing the grant of each Option and
each Award shall set forth the terms and conditions applicable to such Option or Award upon a termination or change in the status of the employment or other service of the Optionee or Grantee by the Company, or a Subsidiary, Affiliate or Division
(including a termination or 

  

 19 

 
change by reason of the sale of a Subsidiary, Affiliate or Division), which shall be as the Committee may, in its discretion, determine at the time the Option or Award
is granted or thereafter. Notwithstanding the foregoing, if the terms of any employment agreement require that Options or Awards granted to an individual receive a specific treatment upon termination of employment, such terms shall be deemed to have
been included in the Optionee’s or Grantee’s Agreement evidencing the Option or Award as of the date of grant of such Option or Award provided that such terms do not conflict with any of the terms of the Plan. 
 14. Adjustment Upon Changes in Capitalization. 
 (a) In the event of a Change in Capitalization, the aggregate number and class of securities available under the Plan and issued pursuant to any outstanding Options or Awards shall be equitably adjusted by
the Committee as necessary to ensure that after a Change in Capitalization the shares subject to the Plan and each Participant’s proportionate interest shall be maintained substantially as before the occurrence of such event. Subject to any
required action by the Board or the stockholders, the Committee shall, in such manner as it may deem equitable, adjust (i) the number and type of shares of common stock of the Company or any Affiliate with respect to which Options or Awards may
be granted under the Plan, (ii) the maximum number of shares that may be covered by Options or Awards granted under the Plan during any period, (iii) the maximum number of shares that may be covered by Options or Awards to any single
individual during any calendar year, (iv) the number of shares subject to outstanding Options or Awards, and (v) the grant or exercise price with respect to an Option or Award. Such adjustment in an outstanding Option shall be made
(i) without change in the total price applicable to the Option or any unexercised portion of the Option (except for any change in the aggregate price resulting from rounding-off of share quantities or prices) and (ii) with any necessary
corresponding adjustment in exercise price per share; provided, however, the Committee shall not take any action otherwise authorized under this Section 14(a) to the extent that such action would materially reduce the benefit or result in
adverse tax consequences to the Participant without the consent of the Participant. The Committee’s determinations shall be final, binding and conclusive with respect to the Company and all other interested persons. 
 (b) Any such adjustment in the Shares or other stock or securities subject to: (i) outstanding Options or Awards that are
intended to qualify as Performance-Based Compensation shall be made in such a manner as not to adversely affect the treatment of the Options or Awards as Performance-Based Compensation, or (ii) outstanding Incentive Stock Options (including any
adjustments in the exercise price) shall be made, to the extent possible, in such manner as not to constitute a modification as defined by Section 424(h)(3) of the Code and as permitted by Sections 422 and 424 of the Code. 
 (c) If, by reason of a Change in Capitalization, a Grantee of an Award shall be entitled to, or an Optionee shall be entitled to
exercise an Option with respect to, new, additional or different shares of stock or securities of the Company or any other corporation, such new, additional or different shares shall thereupon be subject to all of the conditions, restrictions and
performance criteria which were applicable to the Shares subject to the Award or Option, as the case may be, prior to such Change in Capitalization. 
  

 20 

 15. Effect of Certain Transactions. 
 Subject to Sections 7.4, 8.7, 9.4(b), 10.5(b) and 11.4 or as otherwise provided in an Agreement, in the event of (a) the liquidation or
dissolution of the Company or (b) a merger or consolidation of the Company (a “Transaction”), the Plan and the Options and Awards issued hereunder shall continue in effect in accordance with their respective terms, except that
following a Transaction either (i) each outstanding Option or Award shall be treated as provided for in the agreement entered into in connection with the Transaction or (ii) if not so provided in such agreement, each Optionee and Grantee
shall be entitled to receive in respect of each Share subject to any outstanding Options or Awards, as the case may be, upon exercise of any Option or payment or transfer in respect of any Award, the same number and kind of stock, securities, cash,
property or other consideration that each holder of a Share was entitled to receive in the Transaction in respect of a Share; provided, however, that such stock, securities, cash, property, or other consideration shall remain subject to all of the
conditions, restrictions and performance criteria which were applicable to the Options and Awards prior to such Transaction. The treatment of any Option or Award as provided in this Section 15 shall be conclusively presumed to be appropriate
for purposes of Section 11. 
 16. Interpretation. 
 Following the required registration of any equity security of the Company pursuant to Section 12 of the Exchange Act: 
 (a) The Plan is intended to comply with Rule 16b-3 promulgated under the Exchange Act and the Committee shall interpret and
administer the provisions of the Plan or any Agreement in a manner consistent therewith. Any provisions inconsistent with such Rule shall be inoperative and shall not affect the validity of the Plan. 
 (b) Unless otherwise expressly stated in the relevant Agreement, each Option, and Performance Award granted under the Plan is
intended to be Performance-Based Compensation. The Committee shall not be entitled to exercise any discretion otherwise authorized hereunder with respect to such Options or Awards if the ability to exercise such discretion or the exercise of such
discretion itself would cause the compensation attributable to such Options or Awards to fail to qualify as Performance-Based Compensation. 
 17. Termination and Amendment of the Plan or Modification of Options and Awards. 
 The Plan shall terminate on the day
preceding the tenth anniversary of the date of its adoption by the Board and no Option or Award may be granted thereafter. The Board may sooner terminate the Plan and the Board may at any time and from time to time amend, modify or suspend the Plan
or any Agreement hereunder; provided, however, that: 
 (a) no such amendment, modification, suspension or termination
shall: (i) impair or adversely alter any Options or Awards theretofore granted under the Plan, except with the consent of the Optionee or Grantee (unless expressly provided for and only to the extent provided for in Sections 7.4, 8.7,
14(b)(ii), or 15, (ii) deprive any Optionee or Grantee of any Shares which he or she may have acquired through or as a result of the Plan, (iii) constitute a repricing of any Option or substitute a new Option for a previous Option which
substitution 

  

 21 

 
would constitute a repricing, or (iv) accelerate the vesting provisions of any Agreement except in the case of death, Disability, retirement or Change in Control,
and 
 (b) to the extent necessary under any applicable law, regulation or exchange requirement, no amendment shall be
effective unless approved by the stockholders of the Company in accordance with applicable law, regulation or exchange requirement. 
 18. Non-Exclusivity of the Plan. 
 The adoption of the Plan by the Board shall not be construed as amending, modifying
or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options
otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 
 19. Limitation
of Liability. 
 As illustrative of the limitations of liability of the Company, but not intended to be exhaustive thereof, nothing
in the Plan shall be construed to: 
 (a) give any person any right to be granted an Option or Award other than at the
sole discretion of the Committee; 
 (b) give any person any rights whatsoever with respect to Shares except as
specifically provided in the Plan; 
 (c) limit in any way the right of the Company or any Subsidiary or Affiliate to
terminate the employment of any person at any time; or 
 (d) be evidence of any agreement or understanding, expressed
or implied, that the Company will employ any person at any particular rate of compensation or for any particular period of time. 
 20.
Regulations and Other Approvals; Governing Law. 
 20.1 Except as to matters of federal law, the Plan and the
rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of Delaware without giving effect to conflicts of laws principles thereof. 
 20.2 The obligation of the Company to sell or deliver Shares with respect to Options and Awards granted under the Plan shall be
subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee.

 20.3 The Board may make such changes as may be necessary or appropriate to comply with the rules and regulations of
any government authority, or to obtain for Eligible 

  

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Individuals granted Incentive Stock Options the tax benefits under the applicable provisions of the Code and regulations promulgated thereunder. 
 20.4 Each Option and Award is subject to the requirement that, if at any time the Committee determines, in its discretion, that the
listing, registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Option or Award or the issuance of Shares, no Options or Awards shall be granted or payment made or Shares issued, in whole or in part, unless listing, registration, qualification, consent or
approval has been effected or obtained free of any conditions as acceptable to the Committee. 
 20.5 Notwithstanding
anything contained in the Plan or any Agreement to the contrary, in the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities Act of 1933, as amended (the
“Securities Act”), and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required by the Securities Act and Rule 144 or other regulations thereunder. The Committee may require
any individual receiving Shares pursuant to an Option or Award granted under the Plan, as a condition precedent to receipt of such Shares, to represent and warrant to the Company in writing that the Shares acquired by such individual are acquired
without a view to any distribution thereof and will not be sold or transferred other than pursuant to an effective registration thereof under said Act or pursuant to an exemption applicable under the Securities Act or the rules and regulations
promulgated thereunder. The certificates evidencing any of such Shares shall be appropriately amended or have an appropriate legend placed thereon to reflect their status as restricted securities as aforesaid. 
 21. Miscellaneous. 
 21.1 Multiple Agreements. The terms of each Option or Award may differ from other Options or Awards granted under the Plan at the same time, or at some other time. The Committee may also grant more than one Option or
Award to a given Eligible Individual during the term of the Plan, either in addition to, or in substitution for, one or more Options or Awards previously granted to that Eligible Individual unless such substitution would constitute a repricing.

 21.2 Withholding of Taxes. 
 (a) At such times as an Optionee or Grantee recognizes taxable income in connection with the receipt of Shares or cash hereunder (a
“Taxable Event”), the Optionee or Grantee shall pay to the Company an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld by the Company in connection with the Taxable Event
(the “Withholding Taxes”) prior to the issuance, or release from escrow, of such Shares or the payment of such cash. The Company shall have the right to deduct from any payment of cash to an Optionee or Grantee an amount equal to the
Withholding Taxes in satisfaction of the obligation to pay Withholding Taxes. The Committee may provide in the Agreement at the time of grant, or at any time thereafter, that the Optionee or Grantee, in satisfaction of the obligation to pay
Withholding Taxes to the Company, may elect to have 

  

 23 

 
withheld a portion of the Shares then issuable to him or her having an aggregate Fair Market Value equal to the Withholding Taxes. 
 (b) If an Optionee makes a disposition, within the meaning of Section 424(c) of the Code and the regulations promulgated
thereunder, of any Share or Shares issued to such Optionee pursuant to the exercise of an Incentive Stock Option within the two-year period commencing on the day after the date of the grant or within the one-year period commencing on the day after
the date of transfer of such Share or Shares to the Optionee pursuant to such exercise, the Optionee shall, within ten (10) days of such disposition, notify the Company thereof, by delivery of written notice to the Company at its principal
executive office. 
 21.3 Substitute Options and Awards. The Committee shall have the authority to substitute
Options and Awards under this Plan for any options and awards that are transferred to the Company or an Affiliate whether such transfer occurs due to a Change in Control or any other corporate action or transaction that the Committee deems
appropriate for such substitution. The number of Shares covered by such substitute Options or Awards shall not reduce the aggregate number of Shares available for grant under the Plan; and shall not be subject to the other limitations set forth in
Section 4.1 unless required by applicable law. The date of grant of any replacement Option or Award shall relate back to the initial option or award being assumed or replaced, and service with the acquired business shall constitute service with
the Company or its Affiliates the date it was adopted. 
 21.4 Section 409A Compliance. To the extent
applicable, it is intended that this Plan and any Awards granted hereunder comply with the requirements of Section 409A of the Code and any related regulations or other guidance promulgated with respect to that section by the U.S. Department of
the Treasury or the Internal Revenue Service. Any provision that would cause the Plan or any Award granted under the Plan to fail to satisfy Section 409A of the Code will have no force or effect until amended to comply with Section 409A of
the Code, which amendment may be retroactive to the extent permitted by Section 409A of the Code. If the Grantee is a “key employee,” as defined in Section 416(i) of the Code (without regard to paragraph 5 thereof), except to the
extent permitted under Section 409A of the Code, no benefit or payment that is subject to Section 409A of the Code (after taking into account all applicable exceptions to Section 409A of the Code, including but not limited to the
exceptions for short-term deferrals and for “separation pay only upon an involuntary separation from service”) shall be made under this Plan on account of the Grantee’s “separation from service,” as defined in
Section 409A of the Code, with the Company until the later of the date prescribed for payment in this Plan and the first day of the seventh calendar month that begins after the date of the Grantee’s separation from service (or, if earlier,
the date of death of the Grantee). Any such amount(s) shall be aggregated and paid in a lump sum with interest based on the “prime rate” (as published in the Wall Street Journal) plus one (1) percent. 
 21.5 Effective Date. The effective date of this Plan shall be the date it was adopted by the Board; provided, however, that
any Options or Awards granted hereunder prior to the date that the Company’s stockholders approve the Plan shall be contingent on such approval, and no Incentive Stock Options may be granted hereunder unless approval by the Company’s
Stockholders occurs within twelve (12) months of adoption of the Plan by the Board. Unless the Company determines to submit Section 11 of the Plan and the definition of Performance 

  

 24 

 
Objectives to the Company’s stockholders at the first stockholder meeting that occurs in the fifth year following the year in which the Plan was last approved by
stockholders (or any earlier meeting designated by the Board), in accordance with the requirements of Section 162(m) of the Code, and such stockholder approval is obtained, then no further Performance Awards may be made to Grantees who are
subject to Section 162(m) of the Code under Section 11 after the date of such annual meeting, but the remainder of the Plan will continue in effect. 
  

 25Development and Supply Agreement

 [ * ] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 EXHIBIT 10.16 
 DEVELOPMENT AND SUPPLY AGREEMENT 

THIS DEVELOPMENT AND SUPPLY AGREEMENT (this “Agreement”) is made as of this 14th day of November, 2006 (the “Effective
Date”) by and between Tercica, Inc., having a principal place of business at 2000 Sierra Point Parkway, Suite 400, Brisbane, CA (“Company”) and Hospira Worldwide, Inc., having a principal place of business at 275 North
Field Drive, Lake Forest, Illinois, 60045, (U.S.A.) (“Hospira”). 
 WITNESSETH: 
 WHEREAS, Company owns rights to the drug product marketed in the U.S. under the brand name IncrelexTM (mecasermin {rDNA origin} injection), which is
a recombinant human IGF-1 drug product for the long term treatment of growth failure in children with severe primary IGF-1 deficiency (Primary IGFD) and wishes to develop and market IncrelexTM in a 5mL flip top vial; 
 WHEREAS, Company has received marketing authorization from the U.S. Food and Drug Administration (the “FDA”) and/or is seeking or
intends to seek corresponding new drug approvals in selected international markets from appropriate Regulatory Authorities (as hereinafter defined) for the IncrelexTM (mecasermin {rDNA origin} injection) drug product; and 
 WHEREAS, Company and Hospira are parties to that certain IncrelexTM Letter Agreement of June 30, 2006 (the “Letter Agreement”)
pursuant to which Hospira has performed certain work in preparation for the development of a manufacturing process for the IncrelexTM (mecasermin {rDNA origin} injection) drug product by Hospira, and which Letter Agreement by its terms shall
terminate and be superseded by this Agreement as of the Effective Date; and 
 WHEREAS, Company and Hospira desire that Hospira assist
Company in the development and commercialization of the IncrelexTM (mecasermin {rDNA origin} injection) drug product; and 
 WHEREAS, the
parties desire that Hospira manufacture and sell to Company at least [ * ] of Company’s full requirements for the commercial distribution and sale of the IncrelexTM (mecasermin {rDNA origin} injection) drug product worldwide;

 NOW, THEREFORE, in consideration of the premises and the mutual promises and agreements contained herein, Company and Hospira agree as
follows: 
 Article 1. DEFINITIONS 
 The following words and phrases when used herein with capital letters shall have the meanings set forth or referenced below: 
 1.1 “Active Pharmaceutical Ingredient” or “API” shall mean the active pharmaceutical ingredient of the Drug (as
hereinafter defined) in formulated bulk form that Company shall deliver to Hospira for incorporation into Product (as hereinafter defined) and meeting the applicable Active Pharmaceutical Ingredient Specifications (as hereinafter defined).

 1.2 “Active Pharmaceutical Ingredient Specifications” shall mean the detailed
description and parameters of the API set forth on Exhibit 1.2. 
 1.3 “Affiliate” shall mean any corporation or
non-corporate business entity which controls, is controlled by, or is under common control with a party to this Agreement. A corporation or non-corporate business entity shall be regarded as in control of another corporation or non-corporate
business entity if it owns, or directly or indirectly controls, in excess of fifty percent (50%) of the voting stock of the other corporation, or (a) in the absence of the ownership of in excess of fifty percent (50%) of the voting
stock of a corporation or (b) in the case of a non-corporate business entity, if it possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such corporation or non-corporate business
entity, as applicable. 
 1.4 “cGMP” shall mean the current good manufacturing practices as set forth in 21 C.F.R. Part 210
and Part 211, as applicable. 
 1.5 “Confidential Information” shall mean all information disclosed hereunder in writing and
identified as being confidential or, if disclosed orally, visually or through some other media, is identified as confidential at the time of disclosure and is summarized in writing within thirty (30) days of such disclosure and identified as
being confidential, except any portion thereof which: 
  

	 	(a)	is known to the recipient at the time of the disclosure, as evidenced by its written records or other competent evidence; 

  

	 	(b)	is disclosed to the recipient by a third person lawfully in possession of such information and not under an obligation of nondisclosure; 

  

	 	(c)	is or becomes patented, published or otherwise part of the public domain through no fault of the recipient; or 

  

	 	(d)	is developed by or for the recipient independently of Confidential Information disclosed hereunder as evidenced by the recipient’s written records or other competent evidence.

 1.6 “Contract Year” shall mean a period of twelve (12) consecutive months which, for the first
Contract Year of this Agreement, shall commence on the first day of the month after the month of Company’s first bona fide sale of Product to a non-Affiliate customer after Company receives the First Regulatory Approval (as hereinafter
defined), and each Contract Year thereafter shall consist of twelve (12) consecutive months following the end of the preceding Contract Year. 
  

 2 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 1.7 “Drug” shall mean the human pharmaceutical recombinant human IGF-1. 
 1.8 “First Regulatory Approval” shall mean Regulatory Approval granted by the FDA or a Regulatory Approval granted by an appropriate
Regulatory Authority in a foreign country, whichever is earlier. 
 1.9 “Hospira Facility” shall mean Hospira’s
manufacturing plant located at 1776 North Centennial Drive McPherson, KS or such other Hospira location manufacturing the Product as may be mutually agreed by the Parties in writing. 
 1.10 “Hospira-Manufactured Product” shall mean the Product manufactured by Hospira under the terms of this Agreement. 
 1.11 “Hospira Proprietary Rights” shall mean proprietary technology, know-how or rights in Hospira’s possession as of the Effective
Date of this Agreement [ * ]. 
 1.12 “Product” shall mean the Drug in final dosage form, packaged in 5 mL flip top
vial, meeting the Product Specifications. 
 1.13 “Product Specifications” shall mean those product, labeling and
performance specifications for Product filed with the FDA or other appropriate Regulatory Authorities, including Product formula, labeling, and materials required for the manufacture of the Product that is to be purchased and supplied under this
Agreement, as such are set forth on Exhibit 1.9, which specifications may be amended from time to time by the written agreement of the parties. 
 1.14 “Product Supply Commitment” shall have the meaning provided in Section 7.1. 
 1.15 “Regulatory Approval” shall mean (i) approval from the FDA for amendment of the marketing authorization granting Company the right to sell Hospira-Manufactured Product for commercial distribution in the U.S.;
and/or (ii) approval from a corresponding Regulatory Authority granting Company the right to sell Hospira-Manufactured Product for commercial distribution in a foreign country. 
 1.16 “Regulatory Authority” shall mean any federal, state or local or international regulatory agency, department, bureau or other
governmental entity including the FDA which is responsible for issuing approvals, licenses, registrations or authorizations necessary for the manufacture, use, storage, import, transport or sale of Product in a regulatory jurisdiction. 

1.17 “Third Party” shall mean a party other than Hospira or the Company and their respective Affiliates. 
 1.18 “Waste” shall mean all rejects, improper goods, garbage, refuse, remainder, residue, waste water or other discarded material,
including solid, liquid, semisolid, or contained gaseous material that arises from the manufacture of Product, including but not limited to, rejected, excess or unsuitable materials, API and Products. 
  

 3 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Article 2. PROCESS DEVELOPMENT PROJECT

 2.1 General. Promptly following the Effective Date, the parties shall undertake a process development project (the
“Project”) consisting of the development activities set forth in Exhibit 2.1. The objective of the Project shall be for Hospira to assist in the development of the Product and to assist Company in obtaining Regulatory
Approval from the FDA (and/or Regulatory Approval(s) in foreign jurisdictions, as agreed in accordance with Section 4.2). Following the First Regulatory Approval, Hospira then shall manufacture and deliver Product to Company for sale by Company
as a human pharmaceutical product, as herein provided. 
 2.2 Commercially Reasonable Efforts. Each party shall use its commercially
reasonable efforts to successfully complete the Project. However, the parties agree and understand that neither party hereto guarantees that the Project will be successful, nor warrants or guarantees that a marketable product will result from the
Project. 
 Article 3. PAYMENT FOR HOSPIRA’S DEVELOPMENT
EFFORTS 
 3.1 Development Fee. To reimburse Hospira for its participation in the Project, Company
shall pay to Hospira a nonrefundable development fee of [ * ] (the “Development Fee”). The Development Fee is the aggregate of the costs triggered by the milestone events described under the headings “Milestone I”,
“Milestone II”, “Milestone IV”, “Milestone V”, and “Milestone VI” in Exhibit 2.1. The Development Fee shall be paid to Hospira in accordance with the payment schedule set forth in Exhibit 2.1.

 3.2 Changes in Project Scope. If changes occur in the Project or Product Specifications, or if technical difficulties require that
Hospira perform either additional work or repeat work, and such additional work or repeat work is not required due to Hospira’s fault or negligence, Hospira shall provide Company with cost estimates for such work. If Company approves such
costs, Hospira shall perform such work and Company shall pay Hospira’s costs for such work within thirty (30) days of completion of such work. Reimbursement for such additional work or repeat work shall be at the rate of [ * ] per
hour per person, plus out-of-pocket costs for reasonable travel and sustenance, materials and supplies. 
 3.3 Development Supplies.
The parties mutually agree to the final Product Specifications. Hospira may provide to Company development supplies at the prices set forth on Exhibit 2.1. Company shall issue a purchase order for any such development supplies at least [ *
] before the requested delivery date. Company and Hospira mutually agree to the formulation, concentration, fill volume and the components for each lot of development supplies. 
  

 4 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Article 4. COMPANY’S REGULATORY
SUBMISSIONS 
 4.1 Hospira’s Right to Review. Tercica shall exert reasonable efforts to file
regulatory submission(s) in order to obtain the First Regulatory Approval from the FDA. Hospira shall have the right to review and consult on those portions of Company’s proposed regulatory submissions relating to Hospira’s packaging or
manufacturing procedures before the submissions are filed with appropriate Regulatory Authorities. Any such portions of submissions in a language other than English shall be provided to Hospira by Company with an accompanying English translation.
Hospira shall complete its review of the submissions within sixty (30) days for submissions in English, or within ninety (60) days for submissions not in English, after receipt of a proposed regulatory submission. Hospira shall consult
with and advise Company in responding to questions from the Regulatory Authorities regarding such submission(s) to Regulatory Authorities. Company shall be the sole owner of any regulatory submission filed pursuant to this Agreement. Company shall
reimburse Hospira for Hospira’s review and consultation under this Section at the rate of [ * ] per hour. Company shall provide to Hospira for its files a final copy of the CMC section of any such regulatory submission(s). 
 4.2 Supplemental International Regulatory Filings. Hospira shall quote a price for supplemental international regulatory, packaging and
development work to support international filings (excluding the U.S.) separately and on a country-by-country basis. In addition, if inspections are requested or required for any supplemental foreign filing, Hospira shall be entitled to the
additional fee provided in Section 6.3 with respect to any such inspections by a foreign Regulatory Authority. 
 4.3 Access to Drug
Master Files. Hospira shall grant Company reference rights to all Drug Master Files (“DMFs”) necessary to support Company’s applications for and/or amendments of marketing authorizations of Product. To effect this, Hospira
shall execute certain documentation (“Letters of Authorization”) which shall be delivered to the appropriate Regulatory Authorities permitting such Regulatory Authorities to consult Hospira’s DMFs in their review of
Company’s Product marketing authorization applications and/or amendments to existing marketing authorizations for Product. Hospira shall send copies of such Authorization Letters to Company. Hospira shall update its DMFs annually, or otherwise,
as required by applicable regulations and shall inform Company prior to any modifications thereto in order to permit Company to amend or supplement any affected regulatory applications, marketing authorizations, and/or related filings for Product.

 4.4 User Fees. Company shall pay any FDA (or foreign equivalent) user fees which may become payable for Product. 
 Article 5. MANUFACTURE AND SUPPLY OF PRODUCT 

5.1 Purchase and Sale of Product. 
 (a) Pursuant to the terms and conditions of this Agreement and for the duration of this Agreement, Hospira shall manufacture, sell and deliver Product to Company, and Company shall purchase and take delivery of at
least [ * ] percent ([ * ]%) of its total worldwide requirements of Product (the “Contract Requirements”) exclusively from Hospira. Hospira shall manufacture Product in accordance with the Product Specifications.
The parties may alter from time to time the Product Specifications by written agreement without amending this Agreement. 
  

 5 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 (b) The parties agree that with respect to the purchase or supply of Product in addition
to the Contract Requirements hereunder, nothing in this Agreement shall be construed as preventing or otherwise inhibiting Company from (i) manufacturing such additional supply of Product (ii) having such additional supply of Product
manufactured for Company by one or more Third Parties and/or (iii) purchasing such additional supply of Product manufactured by one or more Third Parties. 
 5.2 Government Approvals. Notwithstanding any other provision of this Agreement, Hospira shall have no obligation to manufacture, sell or deliver Product to Company and Company shall have no obligation to
purchase and take delivery of Product for commercial sale in a specific territory until Company has obtained all necessary Regulatory Approval(s). However, Hospira agrees to manufacture and supply those quantities of Product requested in firm
purchase orders by Company that are necessary to build Company’s inventory in anticipation of commercial launch of the Product and Company shall be required to pay for such Products irrespective of whether the Product ultimately receives all
necessary Regulatory Approvals. 
 5.3 Manufacture of Product 
  

	 	(a)	 Active Pharmaceutical Ingredient Supply. Hospira shall manufacture Product for Company from API that Company shall supply to Hospira at no cost. Company
shall supply API to Hospira in quantities sufficient to satisfy Hospira’s gross manufacturing requirements of Product. Hospira’s use of API received from Company shall be limited to development contemplated by this Agreement and the
manufacture of Product for Company. Company shall deliver API FOB Destination for deliveries originating in the United States, and D.D.P. (Incoterms 2000) for deliveries originating outside the United States, the Hospira Facility, pursuant to
no-cost purchase orders that Hospira issues to Company. Within thirty (30) days of Hospira’s receipt of any API supplied by Company hereunder, Hospira shall (i) perform an identification test on the API and confirm the shipment
quantity, and (ii) notify Company of any inaccuracies with respect to quantity or of any claim that any portion of the shipment fails the identification test. In the event Hospira notifies Company of any deficiency in the quantity of API
received, Company shall promptly ship to Hospira, at Company’s own expense, the quantity of API necessary to complete the API shipment. In the event Hospira notifies Company that the API shipment does not conform to the Active Pharmaceutical
Ingredient Specifications, Company shall have the right to confirm such findings at Hospira’s manufacturing location. If Company determines that such shipment of API conformed to the Active Pharmaceutical Ingredient Specifications, the parties
shall submit samples of such shipment to a mutually acceptable independent laboratory for 

  

 6 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

	 	 
testing. If such independent laboratory determines that the shipment conformed to the Active Pharmaceutical Ingredient Specifications, Hospira shall bear all
expenses of shipping and testing such shipment samples. If Company or such independent laboratory confirms that such shipment did not meet the Active Pharmaceutical Ingredient Specifications, Company shall replace, at no cost to Hospira, the portion
of the API shipment which does not conform to the Active Pharmaceutical Ingredient Specifications and bear all expenses of shipping and testing the shipment samples. 

  

	 	(b)	API Title. Company shall retain title to the API while it is in the Hospira facility. Subject to the limitation in Section 5.3(c), Hospira shall assume
responsibility and risk for the safekeeping, storage and handling for all shipments of API delivered hereunder and accepted by Hospira. 

  

	 	(c)	Consumption and Replacement of API. The consumption of API for the manufacture of Product shall be in accordance with the maximum consumption factors that Hospira and Company
agree upon mutually in writing as promptly as practicable, which consumption factors are subject to change from time to time by mutual written agreement of the parties. If, during any twelve (12) month period, Hospira’s consumption of API
in the manufacture of a given quantity of Product exceeds that which should have been consumed (the “Maximum Quantity of API”) if Hospira’s performance had been in parity with the maximum agreed upon consumption factors for such
quantity of Product, Company shall supply to Hospira replacement API according to the terms set forth in Section 5.3(a), and Hospira shall promptly reimburse Company, for any API consumed in excess of the Maximum Quantity of API, at
Company’s total cost, as evidenced by Company’s invoices, for such excess amount of API consumed. In the event of any loss or damage of any API delivered hereunder or the failure of Product to meet Product Specifications, Company shall
supply to Hospira at no cost replacement API according to the terms set forth in Section 5.3(a). If the loss, damage or replacement of such API or the failure of Product to meet Product Specifications results from a grossly negligent act
or omission by Hospira in the manufacture, handling or storage of the API or the Product, Hospira shall reimburse Company for its cost of such API in an amount equal to Company’s purchase cost/kg (as evidenced by Company’s invoices to
Hospira). In no event shall Hospira’s aggregate liability for replacement of API exceed [ * ]. This section states Company’s sole remedy, and Hospira’s sole liability, for any loss, damage, excessive consumption or misuse of
API. 

  

	 	(d)	Product Labeling. Hospira shall label Product in accordance with label copy that Company provides. Such copy may be modified from time to time by agreement of the parties.
Company shall reimburse Hospira for Hospira’s actual costs of making any label copy changes and for the cost of any labeling that Hospira is unable to use due to such label copy changes 

  

 7 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

	 	(e)	Replacement of Nonconforming Shipment. Company shall have a period of thirty (30) days from the date of its receipt of a shipment of Product to inspect and reject such
shipment for nonconformance with the Product Specifications. If Company rejects such shipment, it shall promptly so notify Hospira and provide to Hospira samples of such shipment for testing. If Hospira tests such samples and determines that it did
conform to the Product Specifications, the parties shall submit samples of such shipment to a mutually acceptable independent laboratory for testing. If such independent laboratory determines that the shipment conformed to the Product
Specifications, Company shall bear all expenses of shipping and testing such shipment samples. If Hospira or such independent laboratory confirms that such shipment did not meet the Product Specifications, Hospira shall replace, at no cost to
Company, that portion of the Product shipment which does not conform to the Product Specifications, and shall bear all expenses of shipping and testing the shipment samples, provided that such failure to meet the Specifications was not due to
nonconforming API supplied by Company. Any nonconforming portion of any shipment shall be disposed of as directed by Hospira, at Hospira’s expense. Any Product that Company does not reject pursuant to this Section 5.3(e) shall be
deemed accepted, and all claims for replacement of Product not conforming with Product Specifications shall be deemed waived by Company, except as to latent defects which (i) are not reasonably discoverable, (ii) render the Product not
conforming to Product Specifications, and (iii) are solely caused by Hospira. 

 5.4 Dedicated Equipment Costs. If
non-standard, specialized equipment is required to manufacture Product for Company, Hospira shall pay the cost of such equipment, subject to Company’s prior approval of such costs, which approval shall not be unreasonably withheld. Hospira
shall advise Company of specialized equipment required and the estimated costs associated with the purchase, installation and validation of such equipment. After Company approves such costs, Hospira shall install and validate the equipment and bill
Company for the associated costs. Company shall make payment to Hospira no later than thirty (30) days after Company receives an invoice from Hospira. Title to the equipment shall be in Company’s name. If Hospira wishes to use the
specialized equipment for manufacture of a product other than Product for Company, Hospira and Company shall meet and discuss the technical and practical ramifications of such use and appropriate compensation to Company. 
 5.5 Off-Site Waste. If necessary, Hospira shall hire, direct and pay all costs for a waste contractor to remove all Waste from Hospira’s
manufacturing facility for Product consistent with the Product’s Material Safety Data Sheets (“MSDS”). 
  

 8 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 5.6 Delivery. Hospira shall deliver Product and samples (including, but not limited to post fill
or packaging samples prior to product release, non-batch record sample requests for additional QC testing) to Company, FOB origin, for deliveries within the United States, and EXW (Incoterms 2000), for deliveries outside of the United States, the
Hospira Facility. Title and risk of loss shall pass to Company at such point. Shipment shall be via a carrier designated by Company. Company shall be the exporter of record. Hospira shall make up to [ * ] shipments to Company of
Product per batch at no charge to Company other than shipping costs. Any other shipments requested shall be at a fee of [ * ] per shipment plus shipping costs, excluding any shipments of samples required for testing. 
 5.7 Price and Payment. 
  

	 	(a)	Price. Hospira shall invoice Company for Product delivered by Hospira at the prices set forth on Exhibit 5.7. Prices are firm through [ * ]. Beginning [ *
], prices may be increased by Hospira. Price increases shall be effective for deliveries beginning [ * ]. Such increases shall not exceed [ * ]. 

  

	 	(b)	Payment. Hospira shall invoice Company upon shipment of Product. Company shall make payment net thirty (30) days from the date of receipt of Hospira’s invoice.

  

	 	(c)	Taxes. Any federal, state, county or municipal sales or use tax, excise, customs charges, duties or similar charge, or any other tax assessment (other than that assessed
against income), license, fee or other charge lawfully assessed or charged on the manufacture, sale or transportation of Product sold pursuant to this Agreement, and all government license filing fees and Prescription Drug User (PDUFA) annual
establishment fees with respect to all Product shall be paid by Company. 

 Article 6.
QUALITY 
 6.1 Quality Control. Hospira shall apply its quality control procedures and in-plant
quality control checks on the manufacture of Product for Company in the same manner as Hospira applies such procedures and checks to products of similar nature manufactured for sale by Hospira. In addition, Hospira will test and release Product in
accordance with the test methods described in Exhibit 6.1 to ensure that Product conforms to the Product Specifications. The parties may change the test methods from time to time by mutual agreement. 
 6.2 Quality Agreement. The parties shall enter into a quality agreement substantially in the form of the agreement attached hereto as Exhibit
6.2 within [ * ] following the Effective Date. 
  

 9 
 [ * ]
= CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 6.3 Audit Right. Company shall have the right, upon sixty (60) days prior written notice to
Hospira, to conduct, at its sole expense and during normal business hours, a quality assurance audit and inspection of Hospira’s records and production facilities relating to the manufacturing, assembly and/or packaging of Product. Such audits
shall (a) be limited to not more than two (2) auditors appointed or representing Company, (b) last for not more than two (2) days and (c) may be conducted not more than one (1) time per calendar year. In the event such
audit discovers a problem or unsatisfactory condition, Company may conduct an additional audit to ensure such problem or condition is resolved. In addition, should Company discover and/or be advised of a quality issue at the Hospira Facility which
issue, if occurring, could impact the manufacture of the Product, Company may request an audit of the Hospira Facility to investigate such issue, which request Hospira shall not unreasonably deny. Any auditors that are not employees of Company shall
be required to enter into confidentiality agreements with Hospira and Company containing terms of confidentiality at least as stringent as those set forth in Article 11 hereof. Visits by Company to Hospira production facilities may involve
the transfer of Confidential Information, and any such Confidential Information shall be subject to the terms of Article 11 hereof. The results of such audits and inspections shall be considered Confidential Information under Article
11 and shall not be disclosed to Third Parties, including, but not limited to, the FDA, unless required by law and only then upon prior written notice to Hospira. Hospira also agrees to allow the FDA to conduct any audit which the FDA requires
and Hospira agrees to reasonably cooperate with the FDA in connection with such audit. However, if any additional inspections are requested or required by or for any other Regulatory Authority, Hospira shall be entitled to an additional fee of [
* ] per each such Regulatory Authority inspection. 
 6.4 Notification of Complaints. Company shall notify Hospira promptly of any
Product complaints involving Hospira’s manufacture or packaging in sufficient time to allow Hospira to evaluate the complaints and assist Company in responding to such complaints. 
 6.5 Product Recalls. In the event (a) any Regulatory Authority or other national government authority issues a request, directive or order
that Product be recalled, (b) a court of competent jurisdiction orders such a recall, or (c) Company or Hospira reasonably determines that Product should be recalled, the parties shall take all appropriate corrective actions, and shall
cooperate in any governmental investigations relating to the recall. In the event that such recall results from the breach of Hospira’s express warranties under Section 8.2(a) or (b) of this Agreement, Hospira shall only
be responsible for (i) [ * ] (ii) [ * ]. In the event that the recall does not result from the breach of Hospira’s express warranties under this Agreement, Company shall be responsible for the expenses of the recall. For
purposes of this Agreement, the expenses of the recall shall include, but not be limited to, the expenses of notification and destruction or return of the recalled Product, cost of the recalled Product, and any costs associated with the distribution
of the replacement Product, but shall not include lost profits of either party. 
  

 10 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Article 7. ORDERS AND FORECASTS

 7.1 [ * ] Product Supply Forecast. For capacity planning purposes, by [ * ], Company shall provide Hospira with a
written forecast of Company’s [ * ] requirements of Product for the [ * ] beginning on [ * ]. Thereafter, by [ * ] of each [ * ] Company shall update such rolling [ * ] forecast of its requirements of
Product for the period commencing on [ * ] of the next [ * ]. The forecast for the first [ * ] in any [ * ] forecast submitted to Hospira by Company under this Section 7.1 is referred to herein as the “[ *
] Forecast.” The [ * ]. Upon receipt of each rolling [ * ] estimate, Hospira shall within [ * ] days, provide Company a written acceptance of the estimate and accordingly plan to allocate its [ * ] capacity to
manufacture Product for Company, or provide a written rejection of the [ * ] forecast. Any such written acceptance shall constitute Hospira’s Product supply commitment (“Product Supply Commitment”) for [ * ]
covered by the forecast. If Company issues, and Hospira accepts, a subsequent [ * ] forecast covering one or more previously covered [ * ], such subsequent forecast shall constitute Hospira’s Product Supply Commitment for such
[ * ]. In the event Hospira rejects a [ * ] forecast, Hospira and Company shall meet as soon as possible to discuss in good faith the quantities of Product that Hospira could provide during each of the [ * ] covered by the
forecast. Any such amount shall be agreed to in writing. 
 7.2 First [ * ] Estimate. Company shall, within [ * ] days
after filing its first submission to FDA for amendment of the marketing authorization for Product to include Hospira as a source of manufacture of the Product for commercial distribution and sale in the U.S. (and/or foreign equivalent), provide
Hospira with a written estimate of Company’s [ * ] requirements of Product to be supplied by Hospira for the first [ * ]. Hospira acknowledges that such quantities are estimates only and are nonbinding. 
 7.3 First Order. Hospira and Company shall cooperate fully in estimating and scheduling production for the first commercial order of Product to be
placed by Company with Hospira in anticipation of the First Regulatory Approval. 
 7.4 First Firm Order. Company shall place its
first firm order approximately [ * ] in advance of the desired first delivery date of Product, but no later than the date of [ * ]. The first firm order shall cover a [ * ] time period (the “First Firm Order Period”).
At the same time, Company shall provide to Hospira Company’s estimate of its [ * ] requirements of Product to be supplied by Hospira for the next [ * ] following the First Firm Order Period. 
 7.5 Rolling Forecast. Thereafter, Company shall provide [ * ] to Hospira a rolling [ * ] projection of requirements of Product to be
supplied by Hospira, with the first [ * ] of such projection consisting of firm purchase orders and the remaining [ * ] of such projection consisting of Company’s best estimate forecast of its Product requirements, provided that
the firm purchase orders made in any such projection shall not alter any of the firm purchase orders made in the previous projection. 
 7.6
Minimum Purchase Requirement. Although Company covenants to purchase from Hospira the Contract Requirements, Company further covenants to purchase from Hospira not less than [ * ] percent ([ * ]%) of its [ * ] Forecast in
units of Product for each [ * ] (the 

  

 11 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 
“Minimum Purchase Requirement”). In lieu of Company taking delivery of each [ * ]’s Minimum Purchase Requirements of Product,
Company shall have the option to pay for its Minimum Purchase Requirement, or any portion thereof that Company has failed to purchase, at the prices set forth in Exhibit 5.7 and waive Hospira’s manufacture and delivery obligations for
such Product. In the latter event, Hospira shall invoice Company for the amount payable, and Company shall pay Hospira within thirty (30) days after receipt of Hospira’s invoice. 
 7.7 Purchase Order Acceptance. Within thirty (30) days after receipt of Company’s firm purchase orders for Product, Hospira shall
confirm to Company its acceptance or rejection of the purchase order, delivery date and quantity of Product ordered by Company. 
 7.8
Best Efforts to Supply. If Company submits a firm purchase order for quantities of Product for any [ * ] in excess of the amount estimated for such [ * ] in the previous rolling [ * ] projection, Hospira shall not be
obligated to supply said additional quantities; provided, however, that Hospira shall, until Company’s orders in the aggregate reach the applicable [ * ] Product Supply Commitment, use reasonable commercial efforts to produce and deliver
to Company said additional quantities within [ * ] of issuance of the firm purchase order for such additional quantities. 
 7.9
Firm Commercial Order Changes or Cancellations. If, due to significant unforeseen circumstances, Company requests changes to firm purchase orders of Product within the [ * ] firm purchase order timeframe, Hospira shall attempt to
accommodate the changes within reasonable manufacturing capabilities and efficiencies. If Hospira can accommodate such change, Hospira shall advise Company of the costs associated with making any such change and Company shall be deemed to have
accepted the obligation to pay Hospira for such costs if Company indicates in writing to Hospira that Hospira should proceed to make the change. Hospira shall charge Company the greater of [ * ] or the amount previously agreed upon in writing
by Company for making any such change. If Hospira cannot accommodate such change, Company shall be bound to the original firm purchase order. If Company cancels a firm purchase order, Hospira shall be relieved of its obligation relating to such
order but Company will not be relieved of its obligation of payment unless Hospira agrees to such cancellation in writing. If Company does not supply sufficient API to manufacture such order or acts in any other manner to effectively interfere with
Hospira’s ability to perform, which shall be deemed to be a breach of this Agreement, Company shall remain liable for the full amount of the firm purchase order regardless of whether such Product is manufactured by Hospira or whether Company
takes delivery of any such manufactured Product. Notwithstanding anything to the contrary contained herein, all Product paid for by Company shall count toward the Minimum Purchase Requirement of Product including, without limitation, any payments
made in the event of a cancellation. 
 7.10 Purchase Order Terms. Each purchase order or any acknowledgment thereof, whether printed,
stamped, typed, or written shall be governed by the terms of this Agreement and none of the provisions of such purchase order or acknowledgment shall be applicable except those specifying Product and quantity ordered, delivery dates, special
shipping instructions and invoice information. 
  

 12 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 7.11 Miscellaneous. 
  

	 	(a)	Process Rework. Process rework created as a result of Company’s changes shall be billed separately at a reasonable fee mutually agreed upon in writing.

  

	 	(b)	Sub-lots. Should Company desire Hospira to split a manufacturing lot of Product into several sub-lots during packaging, there will be a split fee of [ * ] for each
sub-lot packaged. 

  

	 	(c)	Cold Storage Fee. A cold storage fee shall be due and payable to Hospira if Company stores Product at Hospira’s plant after Product’s final release for more than
[ * ]. The fee shall be [ * ] per [ * ] per [ * ] or any part thereof. 

  

	 	(d)	Stability Studies. Company will perform all required stability studies. 

 Article 8. WARRANTIES; COVENANTS AND INDEMNIFICATION 
 8.1 Company’s Warranties. 
  

	 	(a)	Company represents and warrants to Hospira that all API delivered to Hospira pursuant to this Agreement shall, at the time of delivery, not be adulterated or misbranded within the
meaning of the Federal Food, Drug and Cosmetic Act, as amended, (the “Act”) or within the meaning of any applicable state or municipal law in which the definitions of adulteration and misbranding are substantially the same as those
contained in the Act, as the Act and such laws are constituted and effective at the time of delivery and will not be an article which may not under the provisions of Sections 404 and 505 of the Act be introduced into interstate commerce.

  

	 	(b)	Company further warrants to Hospira that API supplied to Hospira hereunder shall meet the API Specifications set forth on Exhibit 1.2. 

  

	 	(c)	Company further warrants that all specifications including Active Pharmaceutical Ingredient Specifications and Product Specifications Company provides to Hospira shall conform with
the applicable submissions Company files with the appropriate Regulatory Authorities, such submissions being appropriate for the purposes of this Agreement, any Regulatory Approvals Company receives, as well as any amended Regulatory Approvals.

  

	 	(d)	Company further represents and warrants to Hospira that Company’s performance of its obligations under this Agreement will not result in a material violation or breach of any
agreement, contract, commitment or obligation to which Company is a party or by which it is bound and will not conflict with or constitute a default under its corporate charter or bylaws. 

  

 13 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

	 	(e)	Company further represents and warrants that (i) it will not sell Hospira-Manufactured Product in the United States unless and until such sale is authorized by the necessary
Regulatory Approval from the FDA; (ii) it will not sell Hospira-Manufactured Product into any jurisdiction other than the United States unless and until to the best of its knowledge such sale is authorized by the necessary Regulatory Approvals;
and (iii) Company further represents and warrants that any distributor, licensee or other entity representing the Company in a foreign jurisdiction is contractually obligated to ensure that the Hospira-Manufactured Product has all necessary
Regulatory Approvals prior to selling the Hospira-Manufactured Product in such country. 

 8.2 Hospira’s Warranties and
Covenants. 
  

	 	(a)	Hospira represents and warrants to Company that Product Hospira delivers to Company pursuant to this Agreement shall, at the time of delivery, not be adulterated or misbranded
within the meaning of the Act or within the meaning of any applicable state or municipal law in which the definitions of adulteration and misbranding are substantially the same as those contained in the Act, as the Act and such laws are constituted
and effective at the time of delivery and will not be an article which may not under the provisions of Sections 404 and 505 of the Act be introduced into interstate commerce. 

  

	 	(b)	Hospira further represents and warrants to Company that Product Hospira delivers to Company pursuant to this Agreement shall be free from defects in material and workmanship and
shall be manufactured: (a) in accordance and conformity with the Product Specifications; and (b) in compliance with all applicable U.S. statutes, laws, rules or regulations, including those relating to the environment, food or drugs and
occupational health and safety, including, without limitation, those enforced or promulgated by the FDA (including, without limitation, compliance with cGMPs). 

  

	 	(c)	Hospira further represents and warrants to Company that Hospira’s performance of its obligations under this Agreement will not result in a material violation or breach of any
agreement, contract, commitment or obligation to which Hospira is a party or by which it is bound and will not conflict with or constitute a default under its Certificate of Incorporation or corporate bylaws. 

  

	 	(d)	Hospira covenants that it shall apply its quality control procedures and in-plant quality control checks on the manufacture, assembly and/or packaging of Product for Company in the
same manner as Hospira applies such procedures and checks to products of a similar nature manufactured, assembled and/or packaged for sale by Hospira. 

  

 14 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

	 	(e)	The foregoing warranties shall not extend to any nonconformity or defect which relates to or is caused by API supplied by Company to Hospira. Subject to Section 8.3, the
liability and replacement provisions of Sections 5.3(a) and (e) shall be Company’s sole and exclusive remedy for nonconforming or defective Product. 

  

	 	(f)	HOSPIRA MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO PRODUCT. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED BY HOSPIRA. 

 8.3 Indemnification by
Hospira. Hospira shall indemnify and hold harmless Company, its Affiliates, officers, directors and employees (collectively, the “Company Indemnitees”) from and against all claims, causes of action, suits, costs and expenses (including
reasonable attorney’s fees), losses or liabilities of any kind related to this Agreement and asserted by Third Parties (collectively, “Liabilities”) to the extent such arise out of or are attributable to: (a) Hospira’s
breach of any representation or warranty set forth in Section 8.2(a), or (b); (b) any violation of any proprietary right of any Third Party relating to Hospira’s manufacturing processes used in the manufacture of Product
pursuant to this Agreement; or (c) any [ * ] on the part of Hospira, its employees, agents or representatives and which relate to Hospira’s performance hereunder; provided, however, Hospira shall not be obligated to indemnify
Company Indemnitees to the extent that any Liability arises from (i) Company’s breach of any representation or warranty set forth in Section 8.1(a), (b), (c) or (e), (ii) any violation of any
proprietary right of any Third Party relating to the Active Pharmaceutical Ingredient Specifications, Product Specifications, API, Drug or Product, (iii) the use of or lack of safety or efficacy of Product, except any such Liability caused by
or attributable to the fault of Hospira, its employees, agents or representatives, or (iv) any [ * ] on the part of any Company Indemnitee. 
 8.4 Indemnification by Company. Company shall indemnify and hold harmless Hospira, its Affiliates, officers, directors and employees (collectively, “Hospira Indemnitees”) from and against all
Liabilities to the extent such arise out of or are attributable to (a) Company’s breach of any representation or warranty set forth in Section 8.1(a), (b), (c) or (e); (b) any violation of any
proprietary right of any Third Party relating to the Active Pharmaceutical Ingredient Specifications, Product Specifications, API, Drug or Product; (c) the use of or lack of safety or efficacy of Drug or Product; (d) any [ * ] on
the part of Company, its employees, agents or representatives and which relate to Company’s performance hereunder, and (e) any sale of Product by Company or its licensee or distributor or agent in any country without Regulatory Approval;
provided, however, Company shall not be obligated to indemnify Hospira Indemnitees to the extent that any Liability arises from (i) Hospira’s breach of any representation or warranty set forth in Section 8.2(a) or (b),
(ii) any violation of any proprietary right of any Third Party relating to Hospira’s manufacturing processes used in the manufacture of Product pursuant to this Agreement, or (iii) any [ * ] on the part of any Hospira
Indemnitee. 
  

 15 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 8.5 Conditions of Indemnification. If the indemnified party seeks indemnification from the
indemnifying party hereunder, the indemnified party shall promptly give written notice to the indemnifying party as soon as practicable, but in any event within five (5) days of the indemnified party’s discovery of any such Liability or
claim or suit threatened, made or filed against the indemnified party which forms the basis for the indemnified party’s claim of indemnification. The indemnified party and shall cooperate fully with the indemnifying party in the investigation
and defense of all such claims or suits. The indemnifying party shall have the option to assume the indemnified party’s defense in any such claim or suit with counsel reasonably satisfactory to the indemnified party, and the indemnified party
may, at its option and expense, be separately represented in such action or proceeding. In the event that the indemnifying party assumes control of the defense of any such action or proceeding, the indemnifying party shall not be liable for any
litigation costs or expenses incurred by the indemnified party without the indemnifying party’s prior written authorization. No settlement or compromise shall be binding on a party hereto without its prior written consent, such consent not to
be unreasonably withheld. 
 8.6 No Consequential Damages. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR INDIRECT, INCIDENTAL,
SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY BREACH OF THIS AGREEMENT EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 8.7 No Waiver of Liability. Neither party transfers to the other party any of such first party’s liability for any harm (including without limitation bodily injury and death) to any Third Party caused by
such first party’s negligence or intentional misconduct. 
 Article 9. INTELLECTUAL PROPERTY
RIGHTS 
 9.1 Hospira’s Proprietary Rights. Hospira has granted no license, express or implied,
to Company to use Hospira Proprietary Rights. All proprietary technology, know-how and rights developed by Hospira in the course of this Agreement shall be the sole property of Hospira. [ * ] 
 9.2 [ * ] 
 9.3 [ * ]

 9.4 Company’s Proprietary Rights. Company has granted no license, express or implied, to Hospira to use Company’s
proprietary technology, know-how or rights relating to the Drug or Product, other than for the purposes of this Agreement. [ * ] 
 9.5 [ * ] 
  

 16 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Article 10. TERM AND TERMINATION

 10.1 Term. This Agreement shall commence on the Effective Date and, unless earlier terminated as provided below, shall expire at
the end of the fifth (5th) Contract Year (the “Initial Term”). Unless otherwise terminated in accordance with this Article 10, this Agreement shall be automatically extended. The period during which the Agreement is in
effect is referred to herein as the “Term.” On or after completion of the third Contract Year, this Agreement may be terminated at any time upon either party providing the other with at least [ * ] months’ prior written notice
of termination. 
 10.2 Termination of Process Development Project. Either party may terminate the Project upon sixty (60) days
prior written notice to the other party if the terminating party determines in good faith that the development of the Product is not technically feasible using commercially reasonable efforts. If the Project is terminated, Hospira shall advise
Company of Hospira’s actual development costs on the Project incurred prior to such termination. Company shall pay Hospira for all reasonable and documented development costs incurred to the date the termination notice is received. 

10.3 Failure to Obtain Regulatory Approval. Either party may terminate this Agreement by giving to the other party three (3) months’
prior written notice in the event that Regulatory Approval has not been granted by FDA by [ * ]. 
 10.4 General Termination
Rights. Either party may terminate this Agreement as follows: 
  

	 	(a)	Immediately by providing written notice upon the bankruptcy or the insolvency of the other party; or 

  

	 	(b)	By giving to the other party sixty (60) days’ prior written notice upon the material breach of any warranty or any other material breach of this Agreement by the other
party if the breach is not cured within sixty (60) days after written notice thereof to the party in default. However, if the party alleged to be in breach of this Agreement disputes such breach by written notice to the other party within the
period allowed for cure, the nonbreaching party shall not have the right to terminate this Agreement unless it has been determined by decision in arbitration pursuant to the alternative dispute resolution provisions of Exhibit 12.4 hereto or by a
court of competent jurisdiction that this Agreement was materially breached in accordance with this Section 10.4(b), and the breaching party fails to comply with its obligations within ninety (90) days after such decision.

 10.5 Hospira Termination. If in any two (2) consecutive [ * ] Company waives Hospira’s manufacturing
and delivery obligations in full pursuant to Section 7.6, Hospira may, terminate this Agreement upon ninety (90) days prior written notice to Company. 
 10.6 Accrued Payment Obligations. Upon termination pursuant to this Article 10, Company shall reimburse Hospira for Hospira’s cost of all supplies purchased and on hand or on order, if such supplies
were ordered by Hospira based on firm purchase orders or Company’s 

  

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 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 
estimates of its requirements of Product, and such supplies cannot be reasonably used by Hospira for other purposes. Hospira shall invoice Company for all
amounts due hereunder. Payment shall be made pursuant to Section 5.7. 
 10.7 Return of Inventory. In the event of any
termination, Hospira shall return any remaining inventory of API and Product to Company at Company’s expense, unless such termination shall have been as a result of a breach of this Agreement by Hospira, in which case such inventory shall be
returned at Hospira’s expense. 
 10.8 Survival. Expiration or early termination of this Agreement shall not relieve either party
of any obligations that it may have incurred prior to expiration or early termination and all covenants and agreements contained in this Agreement, which by their terms or context are intended to survive, will continue in full force and effect
unless otherwise indicated in this Agreement, notwithstanding any termination or expiration of this Agreement. For clarity, pursuant to this Section 10.8 the terms and conditions of Section 6.5 and Articles 8, 9, 10, 11, and 12 shall
survive any termination or expiration of this Agreement. 
 Article 11. CONFIDENTIAL
INFORMATION 
 11.1 Nondisclosure. It is contemplated that in the course of the performance of this
Agreement each party may, from time to time, disclose Confidential Information to the other. Hospira agrees that, except as expressly provided herein, it shall not disclose Confidential Information received from Company, and shall not use
Confidential Information disclosed to it by Company, for any purpose other than to fulfill Hospira’s obligations hereunder. Company agrees that, except as expressly provided herein, it shall not disclose Confidential Information received from
Hospira, and shall not use Confidential Information disclosed to it by Hospira, for any purpose other than to fulfill Company’s obligations hereunder. 
 11.2 Exceptions to Duty of Nondisclosure. Notwithstanding the above, nothing contained in this Agreement shall preclude Company or Hospira from utilizing Confidential Information as may be necessary in
prosecuting patent rights of either party pursuant to Article 9, obtaining governmental marketing approvals, manufacturing Product pursuant to the terms and conditions of this Agreement, or complying with other governmental laws and
regulations or court orders (provided that the party disclosing such information uses reasonable efforts to seek confidential treatment of such information, except as required to file and prosecute such patent applications). Hospira shall be
permitted to disclose Confidential Information of Company to Third Party developmental and analytical services providers in connection with performance of Hospira’s obligations hereunder provided such providers shall be subject to
confidentiality agreements with provisions at least as protective as the terms and conditions set forth herein. Company shall be permitted to disclose Confidential Information of Hospira [ * ] provided such Third Parties shall be subject to
confidentiality agreements with provisions at least as protective as the terms and conditions set forth herein. The obligations of the parties relating to Confidential Information shall expire ten (10) years after the termination of this
Agreement. 
  

 18 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 11.3 Disclosure Required by Law. Either party may disclose Confidential Information of the other
party hereunder to the extent such disclosure is required by law to be disclosed by the recipient, provided that the recipient gives the other party hereto prompt notice of such legal requirement such that such other party shall have the opportunity
to apply for confidential treatment of such Confidential Information. 
 11.4 Government Disclosure for Purposes of Obtaining Regulatory
Approval. Each party may disclose Confidential Information of the other party hereunder to the extent such disclosure is necessary to comply with applicable governmental laws and/or regulations in order to obtain Regulatory Approval, provided
that if a party is required by law and/or regulation to make any such disclosure of the other party’s Confidential Information it will give reasonable advance notice to the other party of such disclosure requirement and will use good faith
efforts to assist such other party in securing a protective order or confidential treatment of such Confidential Information required to be disclosed, except where such notice is impractical, for example in the event of a medical emergency, in which
case such party shall give notice to the other party as soon as is reasonably practical. 
 11.5 Public Announcements and SEC Filings.
Except as otherwise set forth in this Article 11, neither party shall make public the terms of this Agreement or the transactions contemplated herein, or make any public statement which includes the name of the other party or any of its Affiliates,
or otherwise use the name of the other party or any of its Affiliates in any public statement or document without the prior written consent of the other party. Any such public announcement proposed by a party that names the other party shall first
be provided in draft to the other party. Each party agrees that it shall cooperate fully and in a timely manner with the other with respect to all required disclosures to the Securities and Exchange Commission and any other governmental or
regulatory agencies, including requests for confidential treatment of Confidential Information of either party included in any such disclosure. If either party determines that applicable securities laws require it to file this Agreement, such party
shall (a) provide to the other party a copy of the redacted version it intends to file, (b) provide the other party reasonable opportunity to comment thereon, and (c) redact such additional information as requested by the other party,
unless disclosure thereof is required by law and compelled by the Securities and Exchange Commission. 
 11.6 Injunctive Relief. The
parties acknowledge that either party’s breach of this Article 11 may cause the other party irreparable injury for which it would not have an adequate remedy at law. In the event of a breach, the non-breaching Party may be entitled to
injunctive relief in addition to any other remedies it may have at law or in equity 
  

 19 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Article 12. MISCELLANEOUS 
 12.1 Force Majeure and Failure of Suppliers. 
  

	 	(a)	Excusable Delay. Any delay in the performance of any of the duties or obligations of either party hereto (except the payment of money) shall not be considered a breach of
this Agreement and the time required for performance shall be extended for a period equal to the period of such delay, provided that such delay has been caused by or is the result of any acts of God, acts of the public enemy, insurrections, riots,
embargoes, labor disputes, including strikes, lockouts, job actions, boycotts, fires, explosions, floods, shortages of material or energy, or other unforeseeable causes beyond the control and without the fault or negligence of the party so affected.
The affected party shall give prompt notice to the other party of such cause, and shall take promptly whatever reasonable steps are necessary to relieve the effect of such cause. 

  

	 	(b)	Transfer of Production. If Hospira becomes subject to an event of force majeure which interferes with production of Product at Hospira’s McPherson, KS plant, the parties
shall mutually agree on implementation of an agreed-upon action plan to transfer production of Product to another Hospira plant. The parties shall, after the execution of this Agreement and at the request of either party, meet to discuss and define
such an action plan. 

  

	 	(c)	Failure of Suppliers. The parties understand and agree that the Company has chosen the excipient and primary container packaging component suppliers listed in the Product
Specifications. Under no circumstances shall Hospira have any liability to Company, nor shall Hospira be deemed to be in breach of this Agreement, if Hospira is unable to supply Product to Company due to a failure of such suppliers to provide such
excipients and/or primary container packaging components to Hospira. 

 12.2 Notices. All notices hereunder shall be
delivered as follows: (a) personally; (b) by facsimile and confirmed by first class mail (postage prepaid); (c) by registered or certified mail (postage prepaid); or (d) by overnight courier service, to the following addresses of
the respective parties: 
  

			
	If to Company:	  	
		  	If to Hospira:
	 Tercica, Inc.
	  	
	 2000 Sierra Point Parkway, Suite 400
	  	Hospira, Inc.
	 Brisbane, CA 94005
	  	275 North Field Drive
		  	Lake Forest, Illinois 60045
	 With a copy to:
	  	
		  	With copy to:
	 Tercica, Inc.
	  	
	 Attention: General Counsel
	  	Hospira, Inc.
	 2000 Sierra Point Parkway, Suite 400
	  	Attention: General Counsel
	 Brisbane, CA 94005
	  	Building H1; Department NLEG
	 Attention: (650) 624-4990
	  	275 N. Field Drive
	Facsimile: (650) 238-1520	  	Lake Forest, IL 60045
		  	Fax: 224-212-2086

  

 20 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Notices shall be effective upon receipt if personally delivered or delivered by facsimile and confirmed
by first class mail, on the third business day following the date of registered or certified mailing or on the first business day following the date of or delivery to the overnight courier. A party may change its address listed above by written
notice to the other party. 
 12.3 Choice of Law. This Agreement shall be construed, interpreted and governed by the laws of the State
of Delaware, excluding its choice of law provisions. The United Nations Convention on the International Sale of Goods is hereby expressly excluded. 
 12.4 Alternative Dispute Resolution. The parties recognize that bona fide disputes may arise which relate to the parties’ rights and obligations under this Agreement. The parties agree that except as provided in
Section 11.4, any such dispute shall be resolved by alternative dispute resolution in accordance with the procedure set forth in Exhibit 12.4. 
 12.5 Assignment. Neither party shall assign this Agreement nor any part thereof without the prior written consent of the other party; provided, however: (a) either party may assign this Agreement to one of
its wholly-owned subsidiaries or its parent corporation without such consent; and (b) either party, without such consent, may assign this Agreement in connection with the transfer, sale or divestiture of substantially all of its business to
which this Agreement pertains or in the event of its merger or consolidation with another company. Any permitted assignee shall assume all obligations of its assignor under this Agreement. No assignment shall relieve any party of responsibility for
the performance of any accrued obligation which such party then has hereunder. 
 12.6 Entire Agreement. This Agreement, together with
the Exhibits referenced and incorporated herein, constitute the entire agreement between the parties concerning the subject matter hereof and supersede all written or oral prior agreements or understandings with respect thereto, including without
limitation the Letter Agreement, provided that certain Mutual Nondisclosure Agreement between Company and Hospira effective February 10, 2006 (the “Confidentiality Agreement”) shall remain in full force and effect and continue to
govern the confidential information exchanged by the parties thereunder, except that the term of the obligations of non-use and non-disclosure set forth in the Confidentiality Agreement shall be extended to expire on the same date as the term of the
obligations of non-use and non-disclosure set forth in Section 11.2 of this Agreement. 
 12.7 Severability. This Agreement is
subject to the restrictions, limitations, terms and conditions of all applicable governmental regulations, approvals and clearances. If any term or provision of this Agreement shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other term or provision hereof, and this Agreement shall be interpreted and construed as if such term or provision, to the extent the same shall have been held to be
invalid, illegal or unenforceable, had never been contained herein. 
  

 21 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 12.8 Waiver-Modification of Agreement. No waiver or modification of any of the terms of this
Agreement shall be valid unless in writing and signed by authorized representatives of both parties. Failure by either party to enforce any such rights under this Agreement shall not be construed as a waiver of such rights, nor shall a waiver by
either party in one or more instances be construed as constituting a continuing waiver or as a waiver in other instances. 
 12.9
Insurance Clause. Each party will procure and maintain, at its own expense, for the duration of the Agreement, and for five (5) years thereafter if written on a claims made or occurrence reported form, the types of insurance specified
below with carriers rated A- VII or better with A. M. Best or like rating agencies: 
  

	 	a.	Workers’ Compensation in accordance with applicable statutory requirements and shall provide a waiver of subrogation in favor of the other party; 

  

	 	b.	Employer’s Liability with a limit of liability in an amount of not less than [ * ]; 

  

	 	c.	Commercial General Liability including premises operations, & completed operations, blanket contractual liability, personal injury and advertising injury including fire
legal liability for bodily injury and property damage in an amount not less than [ * ] per occurrence and [ * ] in the aggregate; 

  

	 	d.	Product Liability in an amount not less than [ * ] per occurrence and [ * ] in the aggregate; and 

 Hospira, Inc. and its subsidiaries, affiliates, directors, officers, employees, and agents shall be an additional insured with respect to Commercial General Liability
and Product Liability. Prior to commencement of services, and annually thereafter, each party shall, upon request, furnish to the other party certificates of insurance evidencing the insurance coverages stated above and shall provide at least thirty
(30) days’ written notice to the other party prior to any cancellation, non-renewal or material change in said coverage. In the case of cancellation, non-renewal or material change in said coverage, each party shall promptly provide to the
other party a new certificate of insurance evidencing that the coverage meets the requirements in this Section. Hospira may, at its option, satisfy, in whole or in part, its obligation under this Section 12.9 through its self-insurance program.

 12.10 Exhibits. All Exhibits referred to herein are hereby incorporated by reference. 
 12.11 Debarment Warranty. Hospira and Company represent and warrant that neither party uses nor will use in the future use in any capacity the
services of any person debarred under Section (a) or (b) of 21 U.S.C. Section 335a. 
 IN WITNESS WHEREOF, the parties
intending to be bound by the terms and conditions hereof have caused this Agreement to be signed by their duly authorized representatives as of the date first above written. 
  

 22 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

									
	HOSPIRA WORLDWIDE, INC.	 		 	COMPANY
					
	By:	 	/s/ John Arnott	 		 	By:	 	/s/ Andrew Grethlein
	Name:	 	John Arnott	 		 	Name:	 	Andrew Grethlein
	Title:	 	Senior Vice President, Global Commercial Operations	 		 	Title:	 	Senior Vice President, Pharmaceutical Operations

  

 23 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 1.2 
 Active Pharmaceutical Ingredient Specifications 
  

					
	[ * ]	  	[ * ]	  	

  

			
	[ * ]	  	[ * ]
	[ * ]	  	[ * ]

  

 24 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 1.9 
 Product Specifications 
  

	
	 Specifications

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

  

 25 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 2.1 
 Project Development Activities and Payment Schedule 
 ATTACHMENT 1: Development Fees Structure 
 Milestone I: Project Initiation 
 [ * ]

 Milestone II: Process Development 
 [ * ] 
 [ * ] 
 Milestone III:
Engineering and Registration Batch Production 
 [ * ] 
 [ * ] 
 MILESTONE IV: PROCESS VALIDATION AND
REVIEW 
 [ * ] 
 MILESTONE V: REGULATORY SUBMISSION 
 [ * ] 
  

 26 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 MILESTONE VI: COMMERCIAL PACKAGE
PREPARATION 
 [ * ] 
 Estimated Dedicated Equipment Costs 
 [ * ] 
 Total Cost:     [ * ] 
  

 27 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 5.7 
 Product Prices 
 [ * ] 
  

 28 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 6.1 
 Product Test Methods 
  

	
	 Test Method

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

	 [ * ]

  

 29 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 6.2 
 Quality Agreement 
 Per Section 6.2 of this Development and Supply Agreement a definitive Quality Agreement will
be executed within [ * ] following the effective date. 
 This Quality Agreement will cover the quality responsibilities of each party. 
 {No Exhibit 6.2 was executed and delivered as part of the Development and Supply Agreement.} 
  

 30 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 Exhibit 12.4 
 Alternative Dispute Resolution 
 The parties recognize that bona fide disputes as to certain matters
may arise from time to time during the term of this Agreement which relate to either party’s rights and/or obligations. To have such a dispute resolved by this Alternative Dispute Resolution (“ADR”) provision, a party first
must send written notice of the dispute to the other party for attempted resolution by good faith negotiations between their respective presidents (or their designees) of the affected subsidiaries, divisions, or business units within twenty-eight
(28) days after such notice is received (all references to “days” in this ADR provision are to calendar days). 
 If
the matter has not been resolved within twenty-eight (28) days of the notice of dispute, or if the parties fail to meet within such twenty-eight (28) days, either party may initiate an ADR proceeding as provided herein. The parties shall
have the right to be represented by counsel in such a proceeding. 
 1. To begin an ADR proceeding, a party shall provide written notice to the other party
of the issues to be resolved by ADR. Within fourteen (14) days after its receipt of such notice, the other party may, by written notice to the party initiating the ADR, add additional issues to be resolved within the same ADR. 
 2. Within twenty-one (21) days following receipt of the original ADR notice, the parties shall select a mutually acceptable neutral to preside in the resolution of
any disputes in this ADR proceeding. If the parties are unable to agree on a mutually acceptable neutral within such period, either party may request the President of the CPR Institute for Dispute Resolution (“CPR”), 366 Madison
Avenue, 14th Floor, New York, New York 10017, to select a neutral pursuant to the following procedures: 
 (a) The CPR shall submit to the
parties a list of not less than five (5) candidates within fourteen (14) days after receipt of the request, along with a Curriculum Vitae for each candidate. No candidate shall be an employee, director, or shareholder of either party or
any of their subsidiaries or Affiliates. 
 (b) Such list shall include a statement of disclosure by each candidate of any circumstances
likely to affect his or her impartiality. 
 (c) Each party shall number the candidates in order of preference (with the number one
(1) signifying the greatest preference) and shall deliver the list to the CPR within seven (7) days following receipt of the list of candidates. If a party believes a conflict of interest exists regarding any of the candidates, that party
shall provide a written explanation of the conflict to the CPR along with its list showing its order of preference for the candidates. Any party failing to return a list of preferences on time shall be deemed to have no order of preference.

  

 31 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 (d) If the parties collectively have identified fewer than three (3) candidates deemed to have
conflicts, the CPR immediately shall designate as the neutral the candidate for whom the parties collectively have indicated the greatest preference. If a tie should result between two candidates, the CPR may designate either candidate. If the
parties collectively have identified three (3) or more candidates deemed to have conflicts, the CPR shall review the explanations regarding conflicts and, in its sole discretion, may either (i) immediately designate as the neutral the
candidate for whom the parties collectively have indicated the greatest preference, or (ii) issue a new list of not less than five (5) candidates, in which case the procedures set forth in subparagraphs 2(a)-2(d) shall be repeated.

 3. No earlier than twenty-eight (28) days or later than fifty-six (56) days after selection, the neutral shall hold a hearing to resolve each of
the issues identified by the parties. The ADR proceeding shall take place at a location agreed upon by the parties. If the parties cannot agree, the neutral shall designate a location other than the principal place of business of either party or any
of their subsidiaries or Affiliates. 
 4. At least seven (7) days prior to the hearing, each party shall submit the following to the other party and
the neutral: 
 (a) a copy of all exhibits on which such party intends to rely in any oral or written presentation to the neutral;

 (b) a list of any witnesses such party intends to call at the hearing, and a short summary of the anticipated testimony of each witness;

 (c) a proposed ruling on each issue to be resolved, together with a request for a specific damage award or other remedy for each issue.
The proposed rulings and remedies shall not contain any recitation of the facts or any legal arguments and shall not exceed one (1) page per issue. 
 (d) a brief in support of such party’s proposed rulings and remedies, provided that the brief shall not exceed twenty (20) pages. This page limitation shall apply regardless of the number of issues raised in
the ADR proceeding. 
 Except as expressly set forth in subparagraphs 4(a)-4(d), no discovery shall be required or permitted by any means, including
depositions, interrogatories, requests for admissions, or production of documents. 
 5. The hearing shall be conducted on two (2) consecutive days and
shall be governed by the following rules: 
 (a) Each party shall be entitled to five (5) hours of hearing time to present its case. The
neutral shall determine whether each party has had the five (5) hours to which it is entitled. 
  

 32 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 (b) Each party shall be entitled, but not required, to make an opening statement, to present regular and
rebuttal testimony, documents or other evidence, to cross-examine witnesses, and to make a closing argument. Cross-examination of witnesses shall occur immediately after their direct testimony, and cross-examination time shall be charged against the
party conducting the cross-examination. 
 (c) The party initiating the ADR shall begin the hearing and, if it chooses to make an opening
statement, shall address not only issues it raised but also any issues raised by the responding party. The responding party, if it chooses to make an opening statement, also shall address all issues raised in the ADR. Thereafter, the presentation of
regular and rebuttal testimony and documents, other evidence, and closing arguments shall proceed in the same sequence. 
 (d) Except when
testifying, witnesses shall be excluded from the hearing until closing arguments. 
 (e) Settlement negotiations, including any statements
made therein, shall not be admissible under any circumstances. Affidavits prepared for purposes of the ADR hearing also shall not be admissible. As to all other matters, the neutral shall have sole discretion regarding the admissibility of any
evidence. 
 6. Within seven (7) days following completion of the hearing, each party may submit to the other party and the neutral a post-hearing brief
in support of its proposed rulings and remedies, provided that such brief shall not contain or discuss any new evidence and shall not exceed ten (10) pages. This page limitation shall apply regardless of the number of issues raised in the ADR
proceeding. 
 7. The neutral shall rule on each disputed issue within fourteen (14) days following completion of the hearing. Such ruling shall adopt
in its entirety the proposed ruling and remedy of one of the parties on each disputed issue but may adopt one party’s proposed rulings and remedies on some issues and the other party’s proposed rulings and remedies on other issues. The
neutral shall not issue any written opinion or otherwise explain the basis of the ruling. 
 8. The neutral shall be paid a reasonable fee plus expenses.
These fees and expenses, along with the reasonable legal fees and expenses of the prevailing party (including all expert witness fees and expenses), the fees and expenses of a court reporter, and any expenses for a hearing room, shall be paid as
follows: 
 (a) If the neutral rules in favor of one party on all disputed issues in the ADR, the losing party shall pay 100% of such fees
and expenses. 
 (b) If the neutral rules in favor of one party on some issues and the other party on other issues, the neutral shall issue
with the rulings a written determination as to how such fees and expenses shall be allocated between the parties. The neutral shall allocate fees and expenses in a way that bears a reasonable relationship to the outcome of the ADR, with the party
prevailing on more issues, or on issues of greater value or gravity, recovering a relatively larger share of its legal fees and expenses. 
  

 33 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 

 9. The rulings of the neutral and the allocation of fees and expenses shall be binding, non-reviewable, and
non-appealable, and may be entered as a final judgment in any court having jurisdiction. 
 10. Except as provided in paragraph 9 or as required by law, the
existence of the dispute, any settlement negotiations, the ADR hearing, any submissions (including exhibits, testimony, proposed rulings, and briefs), and the rulings shall be deemed Confidential Information. The neutral shall have the authority to
impose sanctions for unauthorized disclosure of Confidential Information. 
 12. The neutral may not award punitive damages. The parties hereby waive the
right to punitive damages. 
 13. The hearings shall be conducted in the English language. 
  

 34 
 [ *
] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS,
HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED.

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