Document:

Blueprint

 

Exhibit 10.2

 

 

[Form
of Offer Letter]

 

[Date]

 

Kenneth E. Puzder

180 NE 4th
Avenue, Unit 201

Delray Beach, Florida 33483

 

RE:
LETTER OF OFFER OF EMPLOYMENT – Chief Financial
Officer

 

Dear
Mr. Puzder

 

Following
our recent discussions, we are delighted to offer you the position
of Chief Financial Officer with Exactus, Inc. If you join
Exactus, you will become part of a fast-paced and dedicated team
that works together to provide our customers, business partners and
employees with the highest possible level of service and
support.

 

As a
member of the Executive team, we would ask for your commitment to
deliver outstanding quality and results. In addition, we expect
your personal accountability in all the products, actions, advice
and results that you provide as a representative of Exactus. In
return, we are committed to providing you with every opportunity to
learn, grow and stretch to the highest level of your ability and
potential.

 

We are
confident you will find this new opportunity both challenging and
rewarding. The following points outline the terms and conditions we
are proposing.

 

Title: Chief Financial Officer

 

Start
date: July 15, 2019

 

Salary:
$120,000.00

 

Signing
Bonus (Payable within 90 days from the date of this agreement):
$20,000.00, to be deducted from future bonuses

 

Stock
Options: ______________________________________

 

Group
benefits: You will be eligible to participate in the
company’s Group Benefit Plans, in accordance with company
policy.

 

Reporting
relationship: You will be reporting to the Company’s Board of
Directors.

 

Vacation:
You will be eligible for paid time off in accordance with company
policy.

 

This arrangement may be terminated by either party within two weeks
of the date of this Offer Letter and upon notice in writing to
either party.

 

We look forward to the opportunity to work with you in an
atmosphere that is successful and mutually challenging and
rewarding.

Sincerely,

 

 

Philip
J. Young

Chief
Executive Officer

Exactus,
Inc.

 

With
the signature below, I accept this offer for
employment.

 

 

___________________________                                                                            

______________________

Name                                                                                      

DateExhibit 10.1

UNITED STATES   BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK   -------------------------------------------------------x : In re: : : : : : :   Chapter 11 Aegerion Pharmaceuticals, Inc., et al.,1 Case No. 19-11632 (MG)   Debtors. (Jointly Administered) -------------------------------------------------------x   DEBTORS’ FIRST AMENDED JOINT CHAPTER 11 PLAN Dated: New York, New York July   [_], 2019 WILLKIE FARR & GALLAGHER LLP Counsel for the Debtors and   Debtors in Possession 787 Seventh Avenue New York, New York 10019 (212)   728-8000 1 The Debtors in these chapter 11 cases and the last four digits of   each Debtor’s federal taxpayer identification number are Aegerion   Pharmaceuticals, Inc. (0116), and Aegerion Pharmaceuticals Holdings, Inc.   (1331). The Debtors’ executive headquarters are located at 245 First Street,   Riverview II, 18th Floor, Cambridge, MA 02142. 

    

 

TABLE OF   CONTENTS INTRODUCTION   ...........................................................................................................................1   ARTICLE I. DEFINITIONS AND   INTERPRETATION...............................................................1   ARTICLE II. CERTAIN INTER-CREDITOR AND INTER-DEBTOR   ISSUES......................19 2.1. 2.2. 2.3. Settlement of Certain   Inter-Creditor Issues.   ..........................................................19 Formation of   Debtor Group for Convenience Purposes.   .......................................19 Intercompany Claims and   Intercompany Interests. ...............................................20   ARTICLE III. DIP CLAIMS, ADMINISTRATIVE EXPENSE CLAIMS, FEE CLAIMS, U.S.   TRUSTEE FEES AND PRIORITY TAX CLAIMS ...............20 3.1. 3.2. 3.3. 3.4.   3.5. DIP   Claims.............................................................................................................21   Administrative Expense   Claims.............................................................................21   Fee Claims.   ............................................................................................................23   U.S. Trustee Fees.   ..................................................................................................24   Priority Tax   Claims................................................................................................24   ARTICLE IV. CLASSIFICATION OF CLAIMS AND INTERESTS   .......................................24 4.1. 4.2. 4.3. 4.4. Classification   of Claims and   Interests....................................................................24   Unimpaired Classes of Claims...............................................................................25   Impaired Classes of Claims.   ..................................................................................25   Separate Classification of Other Secured Claims.   .................................................26 ARTICLE V. TREATMENT OF   CLAIMS AND INTERESTS .................................................26 5.1.   5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 5.8. 5.9. Priority Non-Tax Claims (Class 1).   .......................................................................26   Other Secured Claims (Class 2).   ............................................................................26   Bridge Loan Claims (Class   3)................................................................................27   Novelion Intercompany Loan Claims (Class   4).....................................................28 Government   Settlement Claims (Class   5)..............................................................28 Ongoing   Trade Claims (Class 6A).........................................................................29   Other General Unsecured Claims (Class 6B).   .......................................................29 Existing Securities   Law Claims (Class   7)..............................................................30 Existing   Interests (Class 8).   ...................................................................................30   ARTICLE VI. ACCEPTANCE OR REJECTION OF THE PLAN; EFFECT OF REJECTION BY ONE   OR MORE CLASSES OF CLAIMS OR   INTERESTS......................................................................................................30   6.1. 6.2. Class Acceptance   Requirement..............................................................................30   Tabulation of Votes on a Non-Consolidated Basis................................................30   i 

    

 

6.3.   Confirmation Pursuant to Section 1129(b) of the Bankruptcy Code or   “Cramdown.”   .....................................................................................................30   Elimination of Vacant Classes.   ..............................................................................31   Voting Classes; Deemed Acceptance by Non-Voting Classes.   .............................31 Confirmation of All Cases.   ....................................................................................31   6.4. 6.5. 6.6. ARTICLE VII. MEANS FOR   IMPLEMENTATION.................................................................31   7.1. 7.2. 7.3. 7.4. 7.5. 7.6. Non-Substantive Consolidation.   ............................................................................31   Plan Funding Transaction.   .....................................................................................32   Rights Offering.   .....................................................................................................32   Plan Funding.   .........................................................................................................33   New Term Loan Facility; New Convertibles Notes.   .............................................33 Authorization, Issuance and   Delivery of Plan Securities by the Plan Investor.   .................................................................................................................33   Continued Corporate Existence and Vesting of Assets.   ........................................35 Cancellation of Existing   Securities and Agreements. ............................................36   Boards.   ...................................................................................................................37   Management...........................................................................................................37   Corporate   Action....................................................................................................37   Ad Hoc Group Fee Claim. .....................................................................................38   Payment of Convertible Notes Trustee   Fees..........................................................38   Comprehensive Settlement of Claims and Controversies......................................38   Additional Transactions Authorized Under This   Plan...........................................39 Shared Services   Agreements..................................................................................39   Acceptable..............................................................................................................39   7.7. 7.8. 7.9. 7.10. 7.11. 7.12. 7.13. 7.14. 7.15. 7.16. 7.17. ARTICLE VIII.   DISTRIBUTIONS.............................................................................................39   8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 8.7. 8.8. 8.9. 8.10. 8.11. 8.12. 8.13. 8.14.   8.15. 8.16. 8.17.   Distributions...........................................................................................................39   No Postpetition Interest on Claims.   .......................................................................39   Date of   Distributions..............................................................................................40   Distribution Record Date. ......................................................................................40   Disbursing Agent.   ..................................................................................................40   Delivery of Distributions in General......................................................................41   Delivery of Distributions on Convertible Notes   Claims........................................41 Unclaimed Property.   ..............................................................................................42   Satisfaction of Claims.   ...........................................................................................42   Manner of Payment Under   Plan.............................................................................43   Fractional Shares; De Minimis Cash Distributions.   ..............................................43 Distributions on Account of   Allowed Claims Only...............................................43 No   Distribution in Excess of Amount of Allowed   Claim......................................43 Exemption from Securities   Laws...........................................................................43   Setoffs and   Recoupments.......................................................................................44   Withholding and Reporting Requirements.   ...........................................................44 Hart-Scott   Rodino Antitrust Improvements Act.   ...................................................45 ii 

    

 

ARTICLE IX.   PROCEDURES FOR RESOLVING CLAIMS ...................................................45   9.1. 9.2. 9.3. 9.4. Claims Process.   ......................................................................................................45   Amendment to Claims.   ..........................................................................................45   Disputed   Claims.....................................................................................................46   Estimation of   Claims..............................................................................................46   ARTICLE X. EXECUTORY CONTRACTS AND UNEXPIRED LEASES   .............................46 10.1. 10.2. General Treatment.   ................................................................................................46   Claims Based on Rejection of Executory Contracts or Unexpired   Leases.....................................................................................................................47   Cure of Defaults for Assumed Executory Contracts and Unexpired   Leases.....................................................................................................................47   Effect of Confirmation Order on Assumption, Assumption and Assignment, and   Rejection.   ...................................................................................48   Modifications, Amendments, Supplements, Restatements, or Other Agreements.   ...........................................................................................................49   Compensation and Benefit Programs.....................................................................49   10.3. 10.4. 10.5. 10.6. ARTICLE XI. CONDITIONS PRECEDENT TO CONSUMMATION OF   THE PLAN...........50 11.1. 11.2. 11.3. Conditions Precedent to the Effective   Date. ..........................................................50   Satisfaction and Waiver of Conditions Precedent.   ................................................51 Effect of Failure of   Conditions.   .............................................................................51   ARTICLE XII. EFFECT OF CONFIRMATION   ........................................................................52   12.1. 12.2. 12.3. 12.4. 12.5. 12.6. 12.7. 12.8. 12.9. 12.10. Binding Effect.   .......................................................................................................52   Discharge of Claims Against and Interests in the Debtors.   ...................................52 Term of Pre-Confirmation Injunctions or   Stays. ...................................................52 Injunction   Against Interference with the Plan. ......................................................52   Injunction.   ..............................................................................................................53   Releases..................................................................................................................54   Exculpation and Limitation of Liability.   ...............................................................57 Injunction   Related to Releases and   Exculpation....................................................58 Retention   of Causes of Action/Reservation of Rights.   ..........................................58 Indemnification Obligations.   .................................................................................58   ARTICLE XIII. RETENTION OF JURISDICTION ..................................................................59   ARTICLE XIV. MISCELLANEOUS PROVISIONS   .................................................................60 14.1.   14.2. 14.3. 14.4. 14.5. Exemption from Certain Transfer Taxes.   ..............................................................60 Retiree   Benefits......................................................................................................61   Dissolution of Creditors’   Committee.....................................................................61   Termination of Professionals.   ................................................................................61   Amendments.   .........................................................................................................61   iii 

    

 

14.6. 14.7.   14.8. 14.9. 14.10. 14.11. 14.12. 14.13. 14.14. 14.15. 14.16. Revocation or   Withdrawal of this Plan.   .................................................................62   Allocation of Plan Distributions Between Principal and Interest. .........................62   Severability.   ...........................................................................................................62   Governing Law.   .....................................................................................................63   Section 1125(e) of the Bankruptcy   Code...............................................................63   Inconsistency..........................................................................................................63   Time. ......................................................................................................................63   Exhibits.   .................................................................................................................63   Notices. ..................................................................................................................64   Filing of Additional Documents.   ...........................................................................64   Reservation of Rights.............................................................................................64   iv 

    

 

INTRODUCTION2   Aegerion Pharmaceuticals, Inc. and Aegerion Pharmaceuticals Holdings, Inc.,   the debtors and debtors in possession in the above-captioned cases, propose   the following joint chapter 11 plan of reorganization for the resolution of   the Claims against and Interests in the Debtors. Reference is made to the   Disclosure Statement accompanying this Plan, including the exhibits and   supplements thereto, for a discussion of the Debtors’ history, business,   properties and operations, projections for those operations, risk factors, a   summary and analysis of this Plan, and certain related matters including   certain tax matters, and the securities and other consideration to be issued   and/or distributed under this Plan. Subject to certain restrictions and   requirements set forth in 11 U.S.C. § 1127, Fed. R. Bankr. P. 3019 and   Sections 14.5 and 14.6 of this Plan, the Debtors, subject to the parties’   rights under the RSA and the Plan Funding Agreement, reserve the right to   alter, amend, modify, revoke or withdraw this Plan prior to its substantial   consummation. The only Persons that are entitled to vote on this Plan are the   holders of Bridge Loan Claims, Novelion Intercompany Loan Claims, and Other   General Unsecured Claims. Such Persons are encouraged to read the Plan and   the Disclosure Statement and their respective exhibits and schedules in their   entirety before voting to accept or reject the Plan. No materials other than   the Disclosure Statement, the respective schedules, notices and exhibits   attached thereto and referenced therein have been authorized by the   Bankruptcy Court for use in soliciting acceptances or rejections of the Plan.   ARTICLE I. DEFINITIONS AND INTERPRETATION A. Definitions. The following terms   shall have the meanings set forth below (such meanings to be equally   applicable to both the singular and plural): 1.1. 503(b)(9) Claims means   Claims that have been timely and properly filed prior to the Bar Date and that   are granted administrative expense priority treatment pursuant to section   503(b)(9) of the Bankruptcy Code. 1.2. Acceptable shall have the meaning   given it in Section 7.17 hereof. 1.3. Ad Hoc Group means the ad hoc group of   certain Bridge Loan Lenders and/or Convertible Noteholders that are   signatories to the RSA and represented by Latham & Watkins, LLP and King   & Spalding, LLP. 2 Capitalized terms not defined herein have the meanings   given them in Article I herein. 1 

    

 

1.4. Ad Hoc Group   Fee Claim means any Claim, to the extent not previously paid, for the   reasonable and documented out-of-pocket fees, expenses, costs and other   charges incurred by the Ad Hoc Group (including those of Latham &   Watkins, LLP, King & Spalding LLP and Ducera Partners LLC), the Debtors’   payment of which is provided for in the DIP Order, the RSA or this Plan,   which Claim shall be Allowed on the Effective Date. 1.5. Administrative Bar   Date has the meaning set forth in Section 3.2(a) of this Plan. 1.6. Administrative   Expense Claim means any right to payment constituting a cost or expense of   administration of the Chapter 11 Cases of the kind specified in section   503(b) of the Bankruptcy Code and entitled to priority pursuant to sections   328, 330, 363, 364(c)(1), 365, 503(b), 507(a)(2), or 507(b) of the Bankruptcy   Code (other than a DIP Claim, Fee Claim or U.S. Trustee Fees) incurred during   the period from the Petition Date to the Effective Date, including: (a) any   actual and necessary costs and expenses of preserving the Estates, any actual   and necessary costs and expenses of operating the Debtors’ business, and any   indebtedness or obligations incurred or assumed by any of the Debtors during   the Chapter 11 Cases; (b) 503(b)(9) Claims; and (c) any payment to be made under   this Plan to cure a default under an assumed executory contract or unexpired   lease. 1.7. Aegerion means Aegerion Pharmaceuticals, Inc., a Delaware   corporation. 1.8. corporation. Aegerion Holdings means Aegerion   Pharmaceuticals Holdings, Inc., a Delaware 1.9. Allowed means, with respect   to a Claim under this Plan, a Claim that is an Allowed Claim or an Allowed   Claim. 1.10.Allowed Claim or Allowed Claim (with respect to a specific type   of Claim, if specified) means: (a) any Claim (or a portion thereof) as to   which no action to dispute, disallow, deny, equitably subordinate or   otherwise limit recovery with respect thereto, or alter the priority thereof   (including a claim objection), has been timely commenced within the   applicable period of limitation fixed by this Plan or applicable law, or, if   an action to dispute, disallow, deny, equitably subordinate or otherwise   limit recovery with respect thereto, or alter priority thereof, has been   timely commenced, to the extent such Claim has been allowed (whether in whole   or in part) by a Final Order of a court of competent jurisdiction with   respect to the subject matter; or (b) any Claim or portion thereof that is   allowed (i) in any contract, instrument, or other agreement entered into in   connection with this Plan, (ii) pursuant to the terms of this Plan, (iii) by   Final Order of the Bankruptcy Court, or (iv) with respect to an   Administrative Expense Claim only (x) that was incurred by a Debtor in the   ordinary course of business during the Chapter 11 Cases to the extent due and   owing without defense, offset, recoupment or counterclaim of any kind, and   (y) that is not otherwise disputed. 1.11.Amended Certificates of Formation   means the amended and restated certificates of formation or similar   constitutive document for the Reorganized Debtors (as may be amended,   modified or supplemented from time to time), on terms and conditions   reasonably satisfactory to the Debtors and the Required Parties. A form of   the Amended Certificate of Formation will be filed as part of the Plan   Supplement. 2 

    

 

1.12.Amended   Memorandum of Association means the amended and restated memorandum of   association for the Plan Investor (as may be amended, modified or   supplemented from time to time), on terms and conditions Acceptable to the   Debtors and the Required Parties. A form of the Amended Memorandum of   Association shall be included in the Plan Supplement. 1.13.Applicable   Interest Rate means interest accruing at the Federal Judgment Rate or such   other rate of interest required to render such Claim unimpaired as may be   determined at the Confirmation Hearing. 1.14.Athyrium means Athyrium Capital   Management, LP and its affiliates and the investment funds managed or advised   by any of the foregoing. 1.15.Backstop Commitment means the commitment of the   Backstop Parties to purchase Unsubscribed Shares as set forth in the Backstop   Commitment Agreement. 1.16.Backstop Commitment Agreement means that certain   Backstop Subscription Agreement, by and among the Plan Investor and the   Backstop Parties as required pursuant to the terms of the RSA (as amended,   modified and/or supplemented from time to time in accordance with the terms   therein). 1.17.Backstop Commitment Fee means a commitment fee, pursuant to   and as consideration for the obligations of the Backstop Parties under the   Backstop Commitment Agreement, equal to 5% of the Rights Offering Amount and   the Plan Investor Equity Raise Amount, in the aggregate, earned immediately   upon the Subscription Commencement Date and payable by the Plan Investor on   the Effective Date as set forth in, and subject to the terms and conditions   of the Backstop Commitment Agreement. 1.18.Backstop Parties means the   entities party to the Backstop Commitment Agreement. 1.19.Ballot means the   form distributed by the Debtors or the Claims Agent to holders of impaired   Claims entitled to vote on this Plan on which the acceptance or rejection of   this Plan is to be indicated. 1.20.Bankruptcy Code means title 11 of the   United States Code, as amended from time to time, as applicable to the   Chapter 11 Cases. 1.21.Bankruptcy Court means the United States Bankruptcy   Court for the Southern District of New York, or any other court exercising   competent jurisdiction over the Chapter 11 Cases or any proceeding therein.   1.22.Bankruptcy Rules means the Federal Rules of Bankruptcy Procedure, as   promulgated by the Supreme Court of the United States under section 2075 of   title 28 of the United States Code, as amended from time to time, as   applicable to the Chapter 11 Cases, and any local rules of the Bankruptcy   Court. 3 

    

 

1.23.Bar Date   means any deadline for filing proofs of Claim, including Claims arising prior   to the Petition Date (including 503(b)(9) Claims) and Administrative Expense   Claims, as established by an order of the Bankruptcy Court or under the Plan.   1.24.Bridge Loan means the New Money Bridge Loan and the Roll Up Loan.   1.25.Bridge Loan Administrative Agent means Cantor Fitzgerald Securities, or   its successors and assigns, in its capacity as collateral agent and   administrative agent for the Bridge Loan Lenders under the Bridge Loan Credit   Agreement. 1.26.Bridge Loan Claim means the New Money Bridge Loan Claim and   the Roll Up Claim. 1.27.Bridge Loan Credit Agreement means that certain   Bridge Credit Agreement, dated as of November 8, 2018 (as amended, modified or   supplemented from time to time), among Aegerion, as borrower, Aegerion   Holdings, as guarantor, the Bridge Loan Administrative Agent, as   administrative agent and collateral agent, and the Bridge Loan Lenders,   including all agreements, documents, notes, instruments and any other   agreements delivered pursuant thereto or in connection therewith (in each   case, as amended, modified or supplemented from time to time). 1.28.Bridge   Loan Lender means any lender, in its capacity as such, in connection with the   Bridge Loan under the Bridge Loan Credit Agreement, and its successors and   assigns. 1.29.Business Day means any day other than a Saturday, Sunday, a   “legal holiday,” as defined in Bankruptcy Rule 9006(a), or a day on which   banks are not open for general business in New York, New York. 1.30.Cash   means the legal currency of the United States and equivalents thereof.   1.31.Causes of Action means any and all actions, causes of action (including   causes of action under sections 510, 541, 544, 545, 546, 547, 548, 549, 550   and 553 of the Bankruptcy Code), suits, accounts, controversies, obligations,   judgments, damages, demands, debts, rights, agreements, promises, rights to   legal remedies, rights to equitable remedies, rights to payment, and claims   (as defined in section 101(5) of the Bankruptcy Code), whether known or   unknown, reduced to judgment, not reduced to judgment, liquidated,   unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,   secured, unsecured and whether asserted or assertable directly or derivatively,   whether arising before, on, or after the Petition Date, in contract or tort,   arising in law, equity or otherwise. 1.32.Chapter 11 Cases means the   jointly-administered cases under chapter 11 of the Bankruptcy Code commenced   by the Debtors on the Petition Date in the Bankruptcy Court and captioned In   re Aegerion Pharmaceuticals, Inc., et al., Case No. 19-11632 (MG). 1.33.Claim   means any “claim” as defined in section 101(5) of the Bankruptcy Code against   any Debtor or property of any Debtor, including any Claim arising after the   Petition Date. 4 

    

 

1.34.Claims   Agent means Prime Clerk LLC or any other entity approved by the Bankruptcy   Court to act as the Debtors’ claims and noticing agent pursuant to 28 U.S.C.   §156(c). 1.35.Class means each category of Claims or Interests established   under Article IV of this Plan pursuant to sections 1122 and 1123(a)(1) of the   Bankruptcy Code. 1.36.Class 4 New Common Stock Distribution means the shares   of New Common Stock available for distribution under the Plan to Class 4,   which shall equal 16.5% of the New Common Stock Distribution (including any   New Common Stock issuable upon exercise of the New Warrants), subject to the   Prepetition Shared Services Adjustment and the Prepetition Transaction Proceeds   Adjustment which shall, in each case, result in a reduction of the New Common   Stock Distribution to be distributed under the Plan to Class 4 in an amount   equal to the ratable reduction of the Allowed Novelion Intercompany Loan   Claim. 1.37.Class 6B New Common Stock Distribution means the shares of New   Common Stock available for distribution under the Plan to Class 6B, which   shall equal 83.5% of the New Common Stock Distribution (including any New   Common Stock issuable upon exercise of the New Warrants), subject to the   Prepetition Shared Services Adjustment and the Prepetition Transaction   Proceeds Adjustment which shall, in each case, result in an increase of the   New Common Stock Distribution to be distributed under the Plan to Class 6B in   an amount equal to the reduction of the New Common Stock Distribution to be   distributed under the Plan to Class 4. 1.38.Collateral means any property,   wherever located, or interest in property of the Estates subject to a Lien to   secure the payment or performance of a Claim. 1.39.Competition Laws means the   Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and any   other competition or merger control law. 1.40.Confirmation Date means the   date on which the Clerk of the Bankruptcy Court enters the Confirmation Order   on the docket of the Bankruptcy Court. 1.41.Confirmation Hearing means a   hearing to be held by the Bankruptcy Court regarding confirmation of this   Plan, as such hearing may be adjourned or continued from time to time.   1.42.Confirmation Order means the order of the Bankruptcy Court confirming   this Plan pursuant to section 1129 of the Bankruptcy Code, the form and   substance of which shall be Acceptable to the Debtors and the Required   Parties, as may be amended, modified, or supplemented from time to time with   the consent of the Debtors and each of the Required Parties. 1.43.Consenting   Lenders means, as of the relevant time, Novelion, the Bridge Loan Lenders and   the Convertible Noteholders that are party to the RSA. 1.44.Convertible   Noteholder means any holder, in its capacity as such, of the Convertible   Notes pursuant to the Convertible Notes Indenture. 5 

    

 

1.45.Convertible   Notes means the 2.00% convertible senior unsecured notes due 2019 issued   pursuant to the Convertible Notes Indenture in the aggregate outstanding   principal amount of $302,500,000. 1.46.Convertible Notes Claim means all   Claims against any Debtor, related to, arising under, on in connection with,   the Convertible Notes Indenture and the Convertible Notes. 1.47.Convertible   Notes Indenture means that certain Indenture, dated as of August 15, 2014,   governing the issuance of the Convertible Notes, by and between Aegerion, as   issuer, and the Convertible Notes Trustee, as trustee, including all   agreements, documents, notes, instruments and any other agreements delivered   pursuant thereto or in connection therewith (in each case, as amended,   modified or supplemented from time to time). 1.48.Convertible Notes Trustee   means The Bank of New York Mellon Trust Company, N.A., or its successors and   assigns, in its capacity as trustee for the Convertible Noteholders under the   Convertible Notes Indenture. 1.49.Convertible Notes Trustee Fees means all   outstanding reasonable and documented fees, expenses and compensation of the   Convertible Notes Trustee (including the fees and expenses of its outside   counsel and other professionals), whether prior to or after the Effective   Date, to the extent provided under the Convertible Notes Indenture.   1.50.Committee means the official committee of unsecured creditors appointed   in the Chapter 11 Cases pursuant to the Notice of Appointment of Committee of   Unsecured Creditors [Docket No. 56], as may be reconstituted from time to   time. 1.51. Cure Amount has the meaning set forth in Section 10.3(a) of this   Plan. 1.52. Cure Dispute has the meaning set forth in Section 10.3(c) of this   Plan. 1.53. Cure Schedule has the meaning set forth in Section 10.3(b) of   this Plan. 1.54. Debtor(s) means, individually or collectively, as the   context requires, (a) Aegerion, and (b) Aegerion Holdings, which commenced   the Chapter 11 Cases on the Petition Date. 1.55.DIP Administrative Agent   means Cantor Fitzgerald Securities, solely in its capacity as administrative   agent and collateral agent under the DIP Financing Agreement, or any other   administrative agent appointed pursuant to the terms therein. 1.56.DIP Claims   means all Claims of the DIP Administrative Agent and/or the DIP Lenders   related to, arising under, or in connection with a DIP Order and the DIP   Financing Documents, including Claims for all principal amounts outstanding,   interest, fees, reasonable and documented expenses (including the reasonable   and documented expenses of counsel as set forth in the DIP Financing   Agreement), costs and other charges of the DIP Administrative Agent and the   DIP Lenders in respect of the obligations of the Debtors arising under the   DIP Financing Agreement. 6 

    

 

1.57.DIP   Financing Agreement means the Senior Secured Super-Priority Debtor in   Possession Financing Agreement, dated as of May 20, 2019, by and among the   Debtors, the DIP Administrative Agent, and the DIP Lenders, as the same may   be modified, amended or supplemented from time to time, in accordance with   the terms thereof. 1.58.DIP Financing Documents means the DIP Financing   Agreement and all other agreements, documents and instruments entered into in   connection with the DIP Financing Agreement. 1.59.DIP Lenders means,   collectively, and as of the relevant time, those lenders that are party to   the DIP Financing Agreement. 1.60.DIP Order means the order or orders of the   Bankruptcy Court authorizing and approving the Debtors’ entry into the DIP   Financing Agreement or the Debtors’ use of cash collateral. 1.61.Disallowed   means a finding or conclusion of law of the Bankruptcy Court in a Final   Order, or provision in this Plan or the Confirmation Order, disallowing a   Claim or Interest. 1.62.Disbursing Agent means the applicable Reorganized   Debtor, or the entity designated by such Reorganized Debtor, to distribute   the Plan Consideration. 1.63.Disclosure Statement means the disclosure   statement that relates to this Plan, including all exhibits and schedules   annexed thereto or referred to therein (in each case, as it or they may be   amended, modified, or supplemented from time to time), which shall be in form   and substance Acceptable to the Debtors and each of the Required Parties.   1.64.Disclosure Statement Hearing means a hearing held by the Bankruptcy   Court to consider approval of the Disclosure Statement as containing adequate   information as required by section 1125 of the Bankruptcy Code, as the same   may be adjourned or continued from time to time. 1.65.Disclosure Statement   Order means an order of the Bankruptcy Court approving the Disclosure   Statement as having adequate information in accordance with section 1125 of   the Bankruptcy Code 1.66.Disputed Claim means, with respect to a Claim or   Interest, that portion (including, when appropriate, the whole) of such Claim   or Interest that: (a) (i) has not been scheduled by the Debtors in their   Schedules, or has been scheduled in a lesser amount or priority than the   amount or priority asserted by the holder of such Claim or Interest, or (ii)   has been scheduled as contingent, unliquidated or disputed and for which no   proof of claim has been timely filed; (b) is the subject of an objection or   request for estimation filed in the Bankruptcy Court which has not been   withdrawn or overruled by a Final Order; and/or (c) is otherwise disputed by   any of the Debtors or Reorganized Debtors in accordance with applicable law   or contract, which dispute has not been withdrawn, resolved, or overruled by   Final Order. 1.67.Distribution Date means: (a) with respect to DIP Claims,   Bridge Loan Claims, and Novelion Intercompany Loan Claims, the Effective Date   (or as soon thereafter as reasonably 7 

    

 

practicable),   (b) with respect to Administrative Expense Claims, Priority Non-Tax Claims,   U.S. Trustee Fees, Priority Tax Claims, Other Secured Claims, Other General   Unsecured Claims and Ongoing Trade Claims, the date that is the latest of:   (i) the Effective Date (or any date within fifteen (15) days thereafter);   (ii) the date such Claim would be due and payable in the ordinary course of   business; and (iii) the date that is fifteen (15) days after such Claim   becomes an Allowed Claim or otherwise becomes payable under the Plan (or, if   such date is not a Business Day, on the next Business Day thereafter), and   (c) with respect to Fee Claims, the date (or as soon thereafter as reasonably   practicable) that such Claims are allowed by Final Order. 1.68. Distribution   Record Date means with respect to all Classes, the Effective Date. 1.69. DTC   means The Depository Trust Company. 1.70. Effective Date means the date   specified by the Debtors (such date being Acceptable to the Required Parties)   in a notice filed with the Bankruptcy Court as the date on which this Plan   shall take effect, which date shall be the first Business Day on which all of   the conditions set forth in Section 11.1 of this Plan have been satisfied or   waived and no stay of the Confirmation Order is in effect. 1.71.Eligible   Holders means any holder of a Claim in Class 4 and Class 6B as of the record   date set forth in the Rights Offering Procedures. 1.72.Estate means each   estate created in the Chapter 11 Cases pursuant to section 541 of the   Bankruptcy Code. 1.73.Estimation Order means an order or orders of the   Bankruptcy Court estimating for voting and/or distribution purposes (under   section 502(c) of the Bankruptcy Code) the allowed amount of any Claim. The   defined term Estimation Order includes the Confirmation Order if the   Confirmation Order grants the same relief that would have been granted in a   separate Estimation Order. 1.74.Existing Interests means all existing   Interests (other than Intercompany Interests) in the Debtors that are   outstanding immediately prior to the Effective Date. 1.75.Existing Plan   Investor Debt means the principal amount of indebtedness owing by the Plan   Investor plus all accrued and unpaid fees and accrued interest, in the   aggregate amount as of the Effective Date. 1.76.Existing Securities Law Claim   means any Claim, whether or not the subject of an existing lawsuit: (a)   arising from rescission of a purchase or sale of any debt or equity   securities of any Debtor or an affiliate of any Debtor; (b) for damages   arising from the purchase or sale of any such security; (c) for violations of   the securities laws, misrepresentations, or any similar Claims, including, to   the extent related to the foregoing or otherwise subject to subordination   under section 510(b) of the Bankruptcy Code, any attorneys’ fees, other   charges, or costs incurred on account of the foregoing Claims; or (d)   reimbursement, contribution, or indemnification on account of any such Claim.   8 

    

 

1.77.Federal   Judgment Rate means the interest rate applicable to a judgment entered on the   Petition Date that is subject to 28 U.S.C. § 1961, as determined in   accordance with that statute. 1.78.Fee Claim means a Claim by a Professional   Person for compensation, indemnification or reimbursement of expenses   pursuant to sections 327, 328, 330, 331, 503(b) or 1103(a) of the Bankruptcy   Code in connection with the Chapter 11 Cases, including in connection with   final fee applications of such Professional Persons. 1.79.Final Order means   an order, ruling or judgment of the Bankruptcy Court (or other court of   competent jurisdiction) entered by the Clerk of the Bankruptcy Court on the   docket in the Chapter 11 Cases (or by the clerk of such other court of   competent jurisdiction on the docket of such court), which has not been reversed,   vacated, or stayed and as to which (a) the time to appeal, petition for   certiorari, or move for a new trial, reargument, or rehearing has expired and   as to which no appeal, petition for certiorari, or other proceeding for a new   trial, reargument, or rehearing shall then be pending, or (b) if an appeal,   writ of certiorari, new trial, reargument, or rehearing thereof has been   sought, such order or judgment of the Bankruptcy Court shall have been   affirmed by the highest court to which such order was appealed, or certiorari   shall have been denied, or a new trial, reargument, or rehearing shall have   been denied or resulted in no modification of such order, and the time to   take any further appeal, petition for certiorari, or move for a new trial,   reargument, or rehearing shall have expired; provided, that no order or   judgment shall fail to be a Final Order solely because of the possibility   that a motion under Rule 60 of the Federal Rules of Civil Procedure has been   or may be filed with respect to such order or judgment; provided, further,   that no order or judgment shall fail to be a Final Order solely because of   the susceptibility of a Claim to a challenge under section 502(j) of the   Bankruptcy Code. 1.80.General Unsecured Claim means any Claim against a Debtor   other than: (a) Bridge Loan Claim; (b) a Novelion Intercompany Loan Claim;   (c) an Other Secured Claim; (d) a DIP Claim; (e) an Administrative Expense   Claim; (f) a Fee Claim or an Ad Hoc Group Fee Claim; (g) a Priority Tax   Claim; (h) a Priority Non-Tax Claim; (i) an Intercompany Claim; (j) an   Existing Securities Law Claim; (k) U.S. Trustee Fees; (l) a Government   Settlement Claim; and (m) an Other Novelion Claim. 1.81.Government Settlement   Agreements means the settlement agreements and judgments set forth on   Schedule 1.81 hereto. 1.82.Government Settlement Claims means all Claims   against any Debtor held by a governmental unit (as defined in section 101(27)   of the Bankruptcy Code) and relators arising from or relating to criminal and   civil fines or other amounts required to be paid pursuant to the Government   Settlement Agreements. 1.83.Highbridge means, collectively, Highbridge MSF   International Ltd., 1992 Tactical Credit Master Fund, L.P., Highbridge SCF   Special Situations SPV, L.P., and Highbridge SCF Loan SPV, L.P. 9 

    

 

1.84.Implementation   Memorandum means the memorandum describing the sequencing of the actions,   transfers and other corporate transactions making up, or otherwise to be   effectuated pursuant to, the Plan and the Transaction Documents. A   substantially final form of the Implementation Memorandum, in form and   substance Acceptable to the Debtors and the Required Parties, will be   contained in the Plan Supplement. 1.85.Intercompany Claim means any Claim,   Cause of Action, or remedy held by or asserted against a Debtor by (a)   another Debtor, or (b) a non-Debtor subsidiary of a Debtor. For the avoidance   of doubt, “Intercompany Claim” shall not include any Novelion Intercompany   Loan Claim. 1.86.Intercompany Interest means any Interest held by a Debtor in   another Debtor. 1.87.Interest means the interest (whether legal, equitable,   contractual or otherwise) of any holders of any class of equity securities of   any of the Debtors, represented by shares of common or preferred stock or   other instruments evidencing an ownership interest in any of the Debtors,   whether or not certificated, transferable, voting or denominated “stock” or a   similar security, or any option, warrant or right, contractual or otherwise,   to acquire any such interest. 1.88.Lien has the meaning set forth in section   101(37) of the Bankruptcy Code. 1.89.New Common Stock means, collectively,   the shares of authorized common stock of the Plan Investor (or, at the option   of the Plan Investor, American Depositary Shares representing common stock),   the number of which shall be determined in accordance with the Plan Funding   Agreement, to be issued by the Plan Investor (or a new holding company   established to hold 100% of the equity of the Plan Investor and which will   assume the Plan Investor’s obligations under, and in accordance with the   terms of, the Plan Funding Agreement) on the Effective Date in connection   with the implementation of this Plan and the Plan Funding Agreement or upon   exercise of the New Warrants. 1.90.New Common Stock Distribution means,   collectively, the Class 4 New Common Stock Distribution and the Class 6B New   Common Stock Distribution, which shall equal 61.4% of the New Common Stock.   1.91.New Convertible Noteholder means any holder, in its capacity as such, of   the New Convertible Notes pursuant to the New Convertible Notes Indenture.   1.92.New Convertible Notes means the new 5.00% convertible senior unsecured   notes issued by reorganized Aegerion and guaranteed by the Plan Investor   pursuant to the New Convertible Notes Indenture in the aggregate principal   amount of $125,000,000. 1.93.New Convertible Notes Indenture means that   certain indenture, dated as of the Effective Date, by and between reorganized   Aegerion, as issuer, the Plan Investor, as guarantor, and certain other   entities identified therein as “guarantors” and the New Convertible Notes   Trustee, as trustee, including all agreements, documents, notes, instruments   and any other agreements delivered pursuant thereto or in connection   therewith (in each case, as amended, modified or supplemented from time to   time), having the material terms set forth on Schedule 1.93 hereto, and a   substantially final form of which will be contained in the Plan Supplement.   10 

    

 

1.94.New   Convertible Notes Trustee means the financial institution to be identified in   the Plan Supplement, or its successors and assigns, in its capacity as   trustee for the New Convertible Noteholders under the New Convertible Notes   Indenture. 1.95.New Equity Interests means the new common stock of each of   the Reorganized Debtors. 1.96.New Money Bridge Loan means the first lien term   loans in the aggregate principal amount of $50,000,000 made pursuant to the   Bridge Loan Credit Agreement. 1.97.New Money Bridge Loan Claim means any   Claim related to, arising under, or in connection with, the New Money Bridge   Loan, which shall be Allowed on the Effective Date in the aggregate principal   amount of $50,000,000 plus accrued and unpaid fees and interest through the   Effective Date. 1.98.New Registration Rights Agreement means the   shareholders’ agreement, to be dated as of the Effective Date, among the Plan   Investor, Athyrium and Highbridge, which shall be subject to the consent of   the Plan Investor and in form and substance Acceptable to the Debtors, Athyrium,   and Highbridge, and a substantially final form of which will be contained in   the Plan Supplement. 1.99.New Term Loan Agent means the financial agent to be   identified in the Plan Supplement, solely in its capacity as the   administrative agent and collateral agent under the New Term Loan Agreement,   and any of its successors or assigns. 1.100. New Term Loan Agreement means   that certain first lien term loan agreement governing the New Term Loan   Facility, by and among reorganized Aegerion, as borrower, the Plan Investor   and certain other entities identified as “guarantors” in the New Term Loan   Agreement, and the New Term Loan Agent, as administrative agent and   collateral agent, including all agreements, documents, notes, instruments and   any other agreements delivered pursuant thereto or in connection therewith   (in each case, as amended, modified or supplemented from time to time),   having the material terms set forth on Schedule 1.100 hereto, and a   substantially final form of which will be contained in the Plan Supplement.   1.101. New Term Loan Facility means the new first lien term loan facility,   the terms of which shall be set forth in the New Term Loan Agreement, which   shall be in the original principal amount equal to (a) the New Money Bridge   Loan Claim plus (b) the Existing Plan Investor Debt. 1.102. New Term Loan   Facility Lenders means the lenders party to the New Term Loan Agreement.   1.103. New Term Loan Facility Obligations means the obligations of   reorganized Aegerion and the other obligors party thereto under the New Term   Loan Agreement. 1.104. New Warrants means a perpetual warrant issued by the   Plan Investor, with a nominal exercise price, to purchase a number of shares   of New Common Stock equal to the number of shares that a Person entitled to   receive New Common Stock hereunder would 11 

    

 

otherwise have   received had it not elected to receive New Warrants in lieu thereof, the   terms of which will provide that it will not be exercisable for a period of   sixty (60) days following notice of exercise (subject to customary   exceptions) and unless such exercise otherwise complies with applicable law,   the form of which warrant shall provide for customary anti-dilution   protection in respect of stock splits, stock dividends, reverse stock splits   and similar transactions and is reasonably acceptable to the Debtors, the   Required Lenders and the Plan Investor. 1.105. Novelion means Novelion   Therapeutics Inc. 1.106. Novelion Intercompany Loan means the term loan in   the original principal amount of $40,000,000 made pursuant to the Novelion   Intercompany Loan Credit Agreement. 1.107. Novelion Intercompany Loan Claim   means all Claims related to, arising under, or in connection with, the   Novelion Intercompany Loan Credit Agreement, which shall be Allowed on the   Effective Date in the aggregate amount of $36,340,173 less an amount equal to   (a) the Prepetition Shared Services Adjustment plus (b) the Prepetition   Transaction Proceeds Adjustment. 1.108. Novelion Intercompany Loan Credit   Agreement means that certain Amended and Restated Loan and Security   Agreement, dated as of March 15, 2018 (as amended, modified or supplemented   from time to time), among Aegerion, as borrower, and Novelion, as lender,   including all agreements, documents, notes, instruments and any other   agreements delivered pursuant thereto or in connection therewith (in each   case, as amended, modified or supplemented from time to time). 1.109. Ongoing   Trade Claim means any General Unsecured Claim that is an obligation of the   Debtors to third-party providers of goods and services to the Debtors that   facilitate the Debtors’ operations in the ordinary course of business and   will continue to do so after the Debtors’ emergence from the Chapter 11   Cases. 1.110. Other General Unsecured Claim means any General Unsecured Claim   against a Debtor other than an Ongoing Trade Claim, including (a) Claims held   by a former officer, director or employee of the Debtors or the Debtors’   non-Debtor subsidiaries for indemnification, contribution, or advancement of   expenses pursuant to any Debtor’s certificate of incorporation, by-laws,   operating agreement, or similar organizational document, or any   indemnification or contribution agreement, (b) the Convertible Notes Claims,   and (c) any Claim based on damages arising from the rejection of an executory   contract or unexpired lease. 1.111. Other Novelion Claim means any Claim held   by Novelion or a wholly-owned direct or indirect subsidiary thereof   (excluding Aegerion and its Subsidiaries) against the Debtors and their   non-Debtor affiliates other than (i) the Novelion Intercompany Loan Claim,   (ii) Novelion’s Interests in Aegerion, and (iii) any Claim for payments under   Section 1 of the Shared Services Amendment. 1.112. Other Secured Claim means   any Secured Claim against a Debtor other than a Bridge Loan Claim or a   Novelion Intercompany Loan Claim. 12 

    

 

1.113. Person   means any individual, corporation, partnership, association, indenture   trustee, limited liability company, cooperative, organization, joint stock   company, joint venture, estate, fund, trust, unincorporated organization,   governmental unit or any political subdivision thereof, or any other entity   or organization of whatever nature. 1.114. Petition Date means May 20, 2019,   the date on which the Debtors commenced the Chapter 11 Cases. 1.115. PFA   Order shall have the meaning given it in the Plan Funding Agreement. 1.116.   Plan means this joint chapter 11 plan proposed by the Debtors, including the   exhibits, supplements, appendices and schedules hereto, either in its present   form or as the same may be altered, amended or modified from time to time in accordance   with the provisions of the Bankruptcy Code and the terms hereof. 1.117. Plan   Cash means (a) the Debtors’ Cash on hand as of the Effective Date, (b) Cash   generated from operations prior to the Effective Date, and (c) borrowings   under the DIP Financing Agreement. 1.118. Plan Consideration means, with   respect to any Class of Claims entitled to distributions under this Plan,   Cash, New Common Stock, New Warrants, New Convertible Notes, and New Term   Loan Facility Obligations, as the context requires. 1.119. Plan Distributions   means the Plan Consideration distributed under this Plan. 1.120. Plan   Documents means the documents, other than this Plan, to be executed,   delivered, assumed, and/or performed in connection with the consummation of   this Plan, including the documents to be included in the Plan Supplement and   any and all exhibits to this Plan and the Disclosure Statement, including the   Plan Funding Agreement, the RSA, the Backstop Commitment Agreement, the   Rights Offering Procedures, and any and all exhibits to the Plan and the   Disclosure Statement, each of which shall be in form and substance Acceptable   to the Debtors and each of the Required Parties. 1.121. Plan Funding   Agreement means that certain Plan Funding Agreement, dated as of May 20,   2019, among Aegerion and the Plan Investor (as may be amended, modified   and/or supplemented from time to time in accordance with its terms), pursuant   to which the Plan Investor will acquire 100% of the New Equity Interests in   reorganized Aegerion in exchange for New Common Stock of the Plan Investor   (including New Common Stock issuable upon the exercise of New Warrants) in   the amounts set forth in this Plan and the Plan Funding Agreement. 1.122.   Plan Investor means (a) Amryt Pharma plc, on behalf of itself and/or one or   more of its affiliates, and (b) in the case of the issuance of the New Common   Stock and for purposes of Article XII of the Plan and for purposes of the New   Registration Rights Agreement, Amryt Pharma plc or a new holding company   established to hold 100% of the equity of the Plan Investor and will assume   the Plan Investor’s obligations under and in accordance with the Plan Funding   Agreement. 13 

    

 

1.123. Plan   Investor Equity Raise means the additional equity raise conducted by the Plan   Investor, for shares of New Common Stock (including New Common Stock to be   issuable upon exercise of the New Warrants) to be issued by the Plan Investor   for an aggregate purchase price equal to the Plan Investor Equity Raise   Amount to certain existing shareholders of the Plan Investor, for the benefit   of the Plan Investor and the Reorganized Debtors and backstopped by the   Backstop Parties. 1.124. Plan Investor Equity Raise Amount means $18,000,000   plus any portion of the Rights Offering Amount that is not timely, duly and   validly subscribed and paid for by the Eligible Holders that timely vote to   accept the Plan in accordance with the Rights Offering Procedures. 1.125.   Plan Securities means, collectively, the New Convertible Notes, the New   Common Stock, the New Warrants, the Subscription Rights, and the Rights   Offering Stock. 1.126. Plan Supplement means the supplemental appendix to   this Plan (as may be amended, modified and/or supplemented from time to   time), to be filed no later than five (5) calendar days prior to the deadline   for filing objections to this Plan or such other earlier or later date(s) as   expressly set forth in this Plan, which may contain, among other things,   draft forms, signed copies, or summaries of material terms, as the case may   be, of (a) the Amended Certificates of Formation, (b) the Amended Memorandum   of Association, (c) the list of proposed officers and directors of each of   the Plan Investor and the Reorganized Debtors, pursuant to the rights set   forth in the New Registration Rights Agreement, (d) the New Term Loan   Agreement, (e) the New Convertible Notes Indenture, (f) the Schedule of   Rejected Contracts and Leases, (g) the New Registration Rights Agreement, (h)   the Implementation Memorandum, (i) an agreement evidencing, or the form of,   New Warrants, and (j) any additional documents filed with the Bankruptcy   Court before the Effective Date as amendments to the Plan Supplement;   provided, that unless consent rights are otherwise expressly set forth in   this Plan, each of the documents in the Plan Supplement (whether or not set   forth above), including any alternation, restatement, modification or   replacement thereto, shall be in form and substance Acceptable to the Debtors   and each of the Required Parties. 1.127. Prepetition Shared Services   Adjustment means an amount equal to the additional funding needs of Novelion,   if any, pursuant to the Shared Services Agreements, in the sole discretion of   Aegerion and the Bridge Loan Lenders (and solely to the extent permitted by   the DIP Financing Documents), to the extent Aegerion’s share of costs related   to post-April 1, 2019 employee costs, audit costs and data room expenses   exceed $1,970,000 in the aggregate, which additional funding shall be deemed   to reduce the Novelion Intercompany Loan Claim by $1.50 for every $1.00 paid   by Aegerion above the $1,970,000 cap. 1.128. Prepetition Transaction Proceeds   Adjustment means an amount equal to the aggregate amount withdrawn from the   Novelion Segregated Licensing Account (as defined in the DIP Order) in accordance   with the terms of the DIP Order, which aggregate amount withdrawn shall be   deemed to reduce the Novelion Intercompany Loan Claim by $1.75 for every   $1.00 withdrawn. 14 

    

 

1.129. Priority   Non-Tax Claim means any Claim, other than a DIP Claim, an Administrative   Expense Claim, a Fee Claim, an Ad Hoc Group Fee Claim or a Priority Tax   Claim, entitled to priority in payment as specified in section 507(a) of the   Bankruptcy Code. 1.130. Priority Tax Claim means any Claim of a governmental   unit (as defined in section 101(27) of the Bankruptcy Code) of the kind   entitled to priority in payment under sections 502(i) and 507(a)(8) of the   Bankruptcy Code. 1.131. Pro Rata Share means (a) with respect to any   distribution on account of an Allowed Claim, a distribution equal in amount   to the ratio (expressed as a percentage) that the amount of such Allowed   Claim bears to the aggregate amount of all Allowed Claims entitled to share   in the relevant Plan Distribution, and (b) with respect to an Eligible   Holder’s participation in the Rights Offering, a distribution equal in amount   to the ratio (expressed as a percentage) that the amount of such Eligible   Holder’s Subscription Rights bears to the aggregate amount of all Rights   Offering Stock distributed to Eligible Holders as determined pursuant to the   Rights Offering. 1.132. Professional Person(s) means all Persons retained by   order of the Bankruptcy Court in connection with the Chapter 11 Cases,   pursuant to sections 327, 328, 330, 363, or 1103 of the Bankruptcy Code,   excluding any ordinary course professionals retained pursuant to an order of   the Bankruptcy Court. 1.133. Rebate Obligation means any cash expenditures in   France made in connection with a “cohort ATU” that is authorized by the   French National Agency for Medicines and Health Products Safety or any   similar rebates in Spain or the United States. 1.134. Released Parties means,   collectively, and each solely in its capacity as such: (a) the Debtors, their   respective non-Debtor subsidiaries, and the Reorganized Debtors; (b)   Novelion; (c) the DIP Administrative Agent and the DIP Lenders; (d) the   Bridge Loan Administrative Agent; (e) the Convertible Notes Trustee; (f) the   Bridge Loan Lenders; (g) the Consenting Lenders; (h) the members of the Ad   Hoc Group; (i) the Plan Investor; (j) the Committee and each of its current   and former members solely in their capacity as members of the Committee; (k)   each of such parties’ respective predecessors, successors, assigns,   subsidiaries, owners, affiliates, managed accounts, funds or funds under   common management; and (l) each of the foregoing parties’ (described in   clauses (a)-(k)) respective current and former officers, directors, managers,   managing members, employees, members, principals, shareholders, agents, advisory   board members, management companies, fund advisors, partners, attorneys,   financial advisors or other professionals or representatives, together with   their successors and assigns, in each case solely in their capacity as such;   provided, however, that former directors, officers and employees of the   Debtors shall not be deemed Released Parties; provided further that such   attorneys and professional advisors shall only include those that provided   services related to the Chapter 11 Cases and the transactions contemplated by   this Plan (and do not include the attorneys and law firms retained by the   Debtors in the ordinary course of business during these Chapter 11 Cases);   provided, further, that no Person shall be a Released Party if it objects to   the releases provided for in Article XII of this Plan. 15 

    

 

1.135.   Releasing Parties means, collectively, and each solely in its capacity as   such: (a) the Debtors, their respective non-Debtor subsidiaries, and the   Reorganized Debtors; (b) Novelion; (c) the DIP Administrative Agent and the   DIP Lenders; (d) the Bridge Loan Administrative Agent; (e) the Convertible   Notes Trustee; (f) the Bridge Loan Lenders; (g) the Consenting Lenders; (h)   the members of the Ad Hoc Group; (i) the Plan Investor; (j) the Committee and   each of its members solely in their capacity as members of the Committee; (k)   each of such parties’ respective predecessors, successors, assigns,   subsidiaries, owners, affiliates, managed accounts, funds or funds under   common management; (l) each of the foregoing parties’ (described in clauses   (a)-(k)) respective current and former officers, directors, managers,   managing members, employees, members, principals, shareholders, agents,   advisory board members, management companies, fund advisors, partners,   attorneys, financial advisors or other professionals or representatives,   together with their successors and assigns, in each case solely in their   capacity as such; (m) holders of Claims who vote to accept the Plan; (n)   holders of Claims who vote to reject the Plan but who vote to “opt in” to the   Third Party Release; and (o) all holders of Claims and Interests not   described in clauses (a)-(n) who elect to opt-in to the Third Party Release;   provided, however, that notwithstanding anything to the contrary herein, the   scope of the “Releasing Parties” shall be subject to the limitations set   forth in Section 12.06(b) herein. 1.136. Reorganized Debtor(s) means, as the   context requires, the applicable Debtor(s) on and after the Effective Date,   after giving effect to the restructuring transactions occurring on the   Effective Date in accordance with this Plan. 1.137. Required Consenting   Lenders means the Required Consenting Lenders as defined in the RSA. 1.138.   Required Parties means the Required Parties as defined in the RSA. 1.139.   Rights Offering means the offering of Subscription Rights to Eligible Holders   to purchase shares of New Common Stock (including New Common Stock to be   issuable upon the exercise of New Warrants) to be issued by the Plan Investor   on the Effective Date pursuant to the Plan, for an aggregate purchase price   of the Rights Offering Amount, to be conducted in reliance upon the exemption   from registration under the Securities Act provided in section 1145 of the   Bankruptcy Code. 1.140. Rights Offering Amount means $42,000,000 minus any   portion of the Rights Offering Amount that is not timely, duly and validly   subscribed and paid for by the Eligible Holders that timely vote to accept   the Plan in accordance with the Rights Offering Procedures. 1.141. Rights   Offering Exercise Price means the purchase price for each share of Rights   Offering Stock, as set forth in the Rights Offering Procedures and approved   by the Bankruptcy Court. The Rights Offering Exercise Price for the Rights   Offering Stock will be set at a per share price that is based upon the Rights   Offering Stock equaling 13.61% of the New Common Stock of the Plan Investor   (after giving effect to the Rights Offering and the Plan Investor Equity   Raise, but prior to the any management incentive plan, conversion of the New   Convertible Notes, or any contingent value rights issued to existing   shareholders of the Plan Investor). 16 

    

 

1.142. Rights   Offering Procedures means the procedures governing the Rights Offering, which   procedures are attached as an exhibit to the Disclosure Statement, and shall   be Acceptable to the Debtors and each of the Required Parties. 1.143. Rights   Offering Stock means shares of New Common Stock (including New Common Stock   issuable upon the exercise of New Warrants) issued by the Plan Investor on   the Effective Date pursuant to the Rights Offering. 1.144. Roll Up Loan Claim   means any Claim related to, arising under, or in connection with the Roll Up   Loans, which shall be Allowed on the Effective Date in the aggregate   principal amount of $22,500,000, plus accrued and unpaid fees and interest   through the Effective Date. 1.145. Roll Up Loans means first lien term loans   in the aggregate principal amount of $22,500,000 that were funded by the   Bridge Loan Lenders pursuant to the Bridge Loan Credit Agreement to   repurchase and retire, at par, an equal amount of Convertible Notes held by   the Bridge Loan Lenders. 1.146. RSA means that certain Restructuring Support   Agreement, dated as of May 20, 2019, inclusive of all exhibits thereto, by   and among the Debtors, the Plan Investor and the Consenting Lenders. 1.147.   Schedule of Rejected Contracts and Leases means a schedule of the contracts   and leases to be rejected pursuant to section 365 of the Bankruptcy Code and   Section 10.1 hereof, which shall be contained in the Plan Supplement. 1.148.   Schedules means the schedules of assets and liabilities filed in the Chapter   11 Cases, as amended or supplemented from time to time. 1.149. SEC has the   meaning set forth in Section 12.6(d) of this Plan. 1.150. Secured Claim means   a Claim: (a) that is secured by a valid, perfected and enforceable Lien on   Collateral, to the extent of the value of the Claim holder’s interest in such   Collateral as of the Confirmation Date; or (b) to the extent that the holder   thereof has a valid right of setoff pursuant to section 553 of the Bankruptcy   Code. 1.151. Securities Act means the Securities Act of 1933, as amended.   1.152. Shared Services Agreements means, collectively, that certain Master   Service Agreement, dated as of December 1, 2016, between Novelion and   Aegerion (as amended, modified or supplemented from time to time), and that   certain Master Service Agreement, dated as of December 1, 2016, between   Novelion Services USA, Inc. and Aegerion (as amended, modified or   supplemented from time to time), in each case as amended pursuant to the   Shared Services Amendment, which provided for an upfront payment of $3,123,000,   plus up to $1,970,000 in payments for additional services through the   Effective Date plus, if applicable, the Prepetition Shared Services   Adjustment. 17 

    

 

1.153. Shared   Services Amendment means that certain Amendment to Shared Services   Agreements, dated as of May 20, 2019, by and between Aegerion, Novelion, and   Novelion Services USA, Inc. 1.154. Subscription Commencement Date means the   date on which the Rights Offering commences, as specified in the Rights   Offering Procedures. 1.155. Subscription Rights means the non-transferable,   non-certificated subscription rights of Eligible Holders to purchase shares   of Rights Offering Stock on the terms and subject to the conditions set forth   in the Plan, the Rights Offering Procedures, and the Backstop Commitment   Agreement. 1.156. Subsidiary means any corporation, association or other   business entity of which at least the majority of the securities or other   ownership interest is owned or controlled by a Debtor and/or one or more   subsidiaries of the Debtor. 1.157. Third Party Releases means the releases   set forth in Section 12.06(b) of this Plan. 1.158. Transaction Documents   means this Plan, the Plan Funding Agreement, the RSA, and each other   contract, exhibit, schedule, certificate and other document being delivered   pursuant to, or in furtherance of the transactions contemplated by this Plan,   the Plan Funding Agreement or the RSA. 1.159. Unimpaired means, with respect   to a Claim, Equity Interest, or Class of Claims or Equity Interests, not   “impaired” within the meaning of sections 1123(a)(4) and 1124 of the   Bankruptcy Code. 1.160. Unsubscribed Shares means shares of New Common Stock   that are not timely, duly and validly subscribed and paid for in connection   with the Plan Investor Equity Raise, including any Rights Offering Stock that   are not timely, duly and validly subscribed and paid for by the Eligible   Holders that timely vote to accept the Plan in accordance with the Rights   Offering Procedures. 1.161. U.S. Trustee means the United States Trustee for   Region 2. 1.162. U.S. Trustee Fees means fees arising under 28 U.S.C. §   1930(a)(6) and, to the extent applicable, accrued interest thereon arising   under 31 U.S.C. § 3717. B. Interpretation; Application of Definitions and   Rules of Construction. Unless otherwise specified, all section or exhibit   references in this Plan are to the respective section in, or exhibit to, this   Plan. The words “herein,” “hereof,” “hereto,” “hereunder,” and other words of   similar import refer to this Plan as a whole and not to any particular   section, subsection, or clause contained therein. Whenever from the context   it is appropriate, each term, whether stated in the singular or the plural,   will include both the singular and the plural. Any term that is not otherwise   defined herein, but that is used in the Bankruptcy Code or the Bankruptcy   Rules, shall have the meaning given to that term in the Bankruptcy Code or   the Bankruptcy Rules, as applicable. The rules of construction contained in   section 102 of the 18 

    

 

Bankruptcy   Code, other than section 102(5), shall apply to the construction of this   Plan. Any reference in this Plan to an existing document or exhibit filed or   to be filed means such document or exhibit as it may have been or may be   amended, modified, or supplemented. Subject to the provisions of any   contracts, certificates or articles of incorporation, instruments, releases,   or other agreements or documents entered into in connection with this Plan,   the rights and obligations arising under this Plan shall be governed by, and   construed and enforced in accordance with, federal law, including the   Bankruptcy Code and Bankruptcy Rules. The captions and headings in this Plan   are for convenience of reference only and shall not limit or otherwise affect   the provisions hereof. Any reference to an entity as a holder of a Claim or   Interest includes that entity’s successors and assigns. Any reference to   directors or board of directors includes managers, managing members or any   similar governing body, as the context requires. C. Appendices and Plan   Documents. All Plan Documents and appendices to this Plan are incorporated   into this Plan by reference and are a part of this Plan as if set forth in   full herein. The documents contained in the exhibits and Plan Supplement   shall be approved by the Bankruptcy Court pursuant to the Confirmation Order.   Holders of Claims and Interests may inspect a copy of the Plan Documents,   once filed, in the Office of the Clerk of the Bankruptcy Court during normal   business hours, or via the Claims Agent’s website at   http://cases.primeclerk.com/aegerion, or obtain a copy of any of the Plan   Documents by a written request sent to the Claims Agent at the following address:   Aegerion Ballot Processing c/o Prime Clerk LLC One Grand Central Place 60   East 42nd Street, Suite 1440 New York, NY 10165 Phone: 844-627-5368 (U.S.   toll free) or 347-292-3524 (international) ARTICLE II. CERTAIN INTER-CREDITOR   AND INTER-DEBTOR ISSUES 2.1. Settlement of Certain Inter-Creditor Issues. The   treatment of Claims and Interests under this Plan represents, among other   things, the settlement and compromise of certain potential inter-creditor   disputes. 2.2. Formation of Debtor Group for Convenience Purposes. The Plan   groups the Debtors together solely for purposes of describing treatment under   the Plan, confirmation of the Plan and making Plan Distributions in respect   of Claims against and Interests in the Debtors under the Plan. Such grouping   shall not affect any Debtor’s status as a separate legal entity, change the   organizational structure of the Debtors’ business enterprise, constitute a   change of control of any Debtor for any purpose, cause a merger or   consolidation of any legal entities, nor cause the transfer of any assets or   the assumption of any 19 

    

 

liabilities;   and, except as otherwise provided by or permitted in the Plan, all Debtors   shall continue to exist as separate legal entities. 2.3. Intercompany Claims   and Intercompany Interests. (a) Intercompany Claims. Notwithstanding anything   to the contrary herein, on or after the Effective Date, any and all   Intercompany Claims shall, at the option of the Debtors or the Reorganized   Debtors, as applicable, and as Acceptable to the Required Parties, either be   (i) extinguished, canceled and/or discharged on the Effective Date, or (ii)   reinstated and otherwise survive the Debtors’ restructuring by virtue of such   Intercompany Claims being left unimpaired. To the extent any such Intercompany   Claim is reinstated, or otherwise adjusted (including by contribution,   distribution in exchange for new debt or equity, or otherwise), paid or   continued as of the Effective Date, any such transaction may be effected on   or after the Effective Date without any further action by the Bankruptcy   Court, act or action under applicable law, regulation, order or rule or the   vote, consent, authorization or approval of any Person. (b) Intercompany   Interests. No Intercompany Interests shall be cancelled pursuant to this   Plan, and all Intercompany Interests shall be unaffected by the Plan and   continue in place following the Effective Date, solely for the administrative   convenience of maintaining the existing corporate structure of the Debtors   and the Reorganized Debtors. ARTICLE III. DIP CLAIMS, ADMINISTRATIVE EXPENSE   CLAIMS, FEE CLAIMS, U.S. TRUSTEE FEES AND PRIORITY TAX CLAIMS The Plan   constitutes a joint plan of reorganization for all of the Debtors. All Claims   and Interests, except DIP Claims, Administrative Expense Claims, Fee Claims,   Ad Hoc Group Fee Claim, U.S. Trustee Fees and Priority Tax Claims, are placed   in the Classes set forth in Article IV below. In accordance with section   1123(a)(1) of the Bankruptcy Code, DIP Claims, Administrative Expense Claims,   Fee Claims, U.S. Trustee Fees and Priority Tax Claims have not been   classified, and the holders thereof are not entitled to vote on this Plan. A   Claim or Interest is placed in a particular Class only to the extent that   such Claim or Interest falls within the description of that Class and is   classified in other Classes to the extent that any portion of the Claim or   Interest falls within the description of such other Classes. A Claim or   Interest is placed in a particular Class for all purposes, including voting,   confirmation and distribution under this Plan and under sections 1122 and   1123(a)(1) of the Bankruptcy Code. However, a Claim or Interest is placed in   a particular Class for the purpose of receiving Plan Distributions only to   the extent that such Claim or Interest is an Allowed Claim or Allowed   Interest and has not been paid, released or otherwise settled prior to the   Effective Date. 20 

    

 

3.1. DIP   Claims. On the Effective Date, the DIP Claims shall be Allowed and shall not   be subject to any avoidance, reductions, setoff, offset, recoupment,   recharacterization, subordination (whether equitable, contractual, or   otherwise), counterclaims, cross-claims, defenses, disallowance, impairment,   objection, or any other challenges under any applicable law or regulation by   any Person. In full satisfaction, settlement, release and discharge of the   Allowed DIP Claims, on the Effective Date, Allowed DIP Claims shall (a) be   paid in Cash to the greatest extent possible from available Cash of the   Debtors (as reasonably agreed by the Debtors and the DIP Lenders), and (b) to   the extent the Allowed DIP Claims are not paid in full in Cash on the   Effective Date, receive New Convertible Notes in an amount equal to the   amount of the Allowed DIP Claims not receiving Cash pursuant to the foregoing   clause (a). Payment of any unpaid fees and expenses of the DIP Administrative   Agent shall be paid to the DIP Administrative Agent in cash on the Effective   Date. Distributions on account of Allowed DIP Claims other than Cash will not   be distributed to the DIP Administrative Agent but instead shall be   distributed directly to the DIP Lenders as reflected on the registry   maintained by the DIP Administrative Agent as of the Confirmation Date. The   Debtors will request such registry from the DIP Administrative Agent. Upon   satisfaction of the Allowed DIP Lender Claims as set forth in this Section   3.1 of the Plan, all Liens and security interests granted to secure such   obligations, whether in the Chapter 11 Cases or otherwise, shall be   terminated and of no further force or effect. 3.2. Administrative Expense   Claims. (a) Time for Filing Administrative Expense Claims. The holder of an   Administrative Expense Claim, other than the holder of: (i) a Fee Claim; (ii)   a DIP Claim; (iii) a 503(b)(9) Claim; (iv) an Ad Hoc Group Fee Claim; (v) an   Administrative Expense Claim that has been Allowed on or before the Effective   Date; (vi) an Administrative Expense Claim for an expense or liability   incurred and payable in the ordinary course of business by a Debtor; (vii) an   Administrative Expense Claim on account of fees and expenses incurred on or   after the Petition Date by ordinary course professionals retained by the   Debtors pursuant to an order of the Bankruptcy Court; 21 

    

 

(viii) an   Administrative Expense Claim held by an officer, director or employee of the   Debtors serving in such capacity immediately prior to the occurrence of the Effective   Date solely in their capacity as such (whether or not also an officer,   director or employee of Novelion), for indemnification, contribution, or   advancement of expenses pursuant to (A) any Debtor’s certificate of   incorporation, by-laws, operating agreement, or similar organizational   document, (B) any employment, director or similar agreement, or (C) any   indemnification or contribution agreement approved by the Bankruptcy Court;   (ix) an Administrative Expense Claim arising, in the ordinary course of   business, out of the employment by one or more Debtors of an individual from   and after the Petition Date, but only to the extent that such Administrative   Expense Claim is solely for outstanding wages, commissions, accrued benefits,   or reimbursement of business expenses; (x) a Claim for adequate protection   arising under the DIP Order; (xi) an Administrative Expense Claim of Novelion   or Novelion Services USA, Inc. arising out of or related to the Shared   Services Agreements; (xii) an Intercompany Claim; (xiii) an Administrative   Expense Claim described in 11 U.S.C. § 503(b)(1)(B)-(C), if the holder is a   Governmental Unit; or (xiv) U.S. Trustee Fees, must file with the Bankruptcy   Court and serve on the Reorganized Debtors, the Claims Agent, and the U.S.   Trustee, proof of such Administrative Expense Claim within thirty (30) days   after the Effective Date (the “Administrative Bar Date”). Such proof of   Administrative Expense Claim must include at a minimum: (1) the name of the   applicable Debtor that is purported to be liable for the Administrative   Expense Claim and if the Administrative Expense Claim is asserted against   more than one Debtor, the exact amount asserted to be owed by each such   Debtor; (2) the name of the holder of the Administrative Expense Claim; (3) the   asserted amount of the Administrative Expense Claim; (4) the basis of the   Administrative Expense Claim; and (5) supporting documentation for the   Administrative Expense Claim. FAILURE TO FILE AND SERVE SUCH PROOF OF   ADMINISTRATIVE EXPENSE CLAIM TIMELY AND PROPERLY SHALL RESULT IN SUCH CLAIM   BEING FOREVER BARRED AND DISCHARGED. (b) Treatment of Administrative Expense   Claims. Except to the extent that a holder of an Allowed Administrative   Expense Claim agrees to a different treatment, on, or as soon thereafter as   is reasonably practicable, the later of 22 

    

 

the Effective   Date and the first Business Day after the date that is thirty (30) calendar   days after the date an Administrative Expense Claim becomes an Allowed Claim,   the holder of such Allowed Administrative Expense Claim shall receive from   the applicable Reorganized Debtor Cash in an amount equal to such Allowed   Claim; provided, however, that Allowed Administrative Expense Claims   representing liabilities incurred in the ordinary course of business by any   of the Debtors, as debtors in possession, shall be paid by the applicable   Reorganized Debtor in the ordinary course of business, consistent with past   practice and in accordance with the terms and subject to the conditions of   any orders or agreements governing, instruments evidencing, or other   documents relating to, such liabilities. Any Claim related to fees and   expenses, contribution or indemnification obligations, payable or owing by   the Debtors to the Ad Hoc Group, the Plan Investor, or the Backstop Parties   under the RSA, the Backstop Commitment Agreement, the Plan Funding Agreement,   or the PFA Order shall constitute an Allowed Administrative Expense Claim and   shall be paid in Cash on the Effective Date or as soon thereafter as is reasonably   practicable without the need to file a proof of such Claim with the   Bankruptcy Court in accordance with Section 3.2(a) hereof and without further   order of the Bankruptcy Court. Any Claim then payable or owing by the Debtors   to Novelion or Novelion Services, USA, Inc. arising out of or related to the   Shared Services Agreements shall be paid in Cash on the Effective Date from   Plan Cash, without the need to file a proof of such Claim with the Bankruptcy   Court in accordance with Section 3.2(a) hereof and without further order of   the Bankruptcy Court. 3.3. Fee Claims. (a) Time for Filing Fee Claims. Any   Professional Person seeking allowance of a Fee Claim shall file with the   Bankruptcy Court its final application for allowance of compensation for   services rendered and reimbursement of expenses incurred prior to the   Effective Date and in connection with the preparation and prosecution of such   final application no later than forty-five (45) calendar days after the   Effective Date or such other date as established by the Bankruptcy Court.   Objections to such Fee Claims, if any, must be filed and served no later than   sixty-five (65) calendar days after the Effective Date or such other date as   established by the Bankruptcy Court. (b) Treatment of Fee Claims. All Professional   Persons seeking allowance by the Bankruptcy Court of a Fee Claim shall be   paid in full in Cash in such amounts as are approved by the Bankruptcy Court:   (i) upon the later of (x) the Effective Date, and (y) three (3) calendar days   after the date upon which the order relating to the allowance of any such Fee   Claim is entered, or (ii) upon such other terms as may be mutually agreed   upon between the holder of such Fee Claim and the Reorganized Debtors. On the   Effective Date, the Reorganized Debtors shall reserve and hold in a   segregated account Cash in an amount equal to all accrued but unpaid Fee   Claims as of the Effective Date, which Cash shall be disbursed solely to the   holders of Allowed Fee Claims with the remainder to be reserved until all Fee   Claims have been either Allowed and paid in full or 23 

    

 

Disallowed by   Final Order, at which time any remaining Cash in the segregated account shall   become the sole and exclusive property of the Reorganized Debtors, provided   that the Debtors’ and the Reorganized Debtors’ obligations to pay Allowed Fee   Claims shall not be limited or deemed limited to funds held in any escrow   account. To the extent that funds held in any escrow account for Allowed Fee   Claims are insufficient to satisfy the Allowed amount of Fee Claims owing to   the Professional Person, the Reorganized Debtors shall pay such amounts   within ten (10) Business Days of entry of the order approving such Fee   Claims. 3.4. U.S. Trustee Fees. The Debtors or Reorganized Debtors, as applicable,   shall pay all outstanding U.S. Trustee Fees of a Debtor on an ongoing basis   on the date such U.S. Trustee Fees become due, until such time as a final   decree is entered closing the applicable Chapter 11 Case, the applicable   Chapter 11 Case is converted or dismissed, or the Bankruptcy Court orders   otherwise. 3.5. Priority Tax Claims. Except to the extent that a holder of an   Allowed Priority Tax Claim agrees to different treatment, each holder of an   Allowed Priority Tax Claim shall receive, in the Debtors’ or Reorganized   Debtors’ discretion, either: (a) on, or as soon thereafter as is reasonably   practicable, the later of the Effective Date and the first Business Day after   the date that is thirty (30) calendar days after the date a Priority Tax Claim   becomes an Allowed Claim, Cash in an amount equal to such Claim; or (b)   deferred Cash payments following the Effective Date, over a period ending not   later than five (5) years after the Petition Date, in an aggregate amount   equal to the Allowed amount of such Priority Tax Claim (with any interest to   which the holder of such Priority Tax Claim may be entitled calculated in   accordance with section 511 of the Bankruptcy Code); provided, however, that   all Allowed Priority Tax Claims that are not due and payable on or before the   Effective Date shall be paid in the ordinary course of business as they   become due. ARTICLE IV. CLASSIFICATION OF CLAIMS AND INTERESTS 4.1.   Classification of Claims and Interests. The following table designates the   Classes of Claims against and Interests in the Debtors, and specifies which   Classes are: (a) impaired or unimpaired by this Plan; (b) entitled to vote to   accept or reject this Plan in accordance with section 1126 of the Bankruptcy   Code; or (c) deemed to accept or reject this Plan. 24 

    

 

If a   controversy arises regarding whether any Claim or Interest is properly   classified under the Plan, the Bankruptcy Court shall, upon proper motion and   notice, determine such controversy at the Confirmation Hearing. If the   Bankruptcy Court finds that the classification of any Claim or Interest is   improper, then such Claim or Interest shall be reclassified and any Ballot   previously cast by the holder of such Claim or Interest shall be counted in,   and the Claim or Interest shall receive the treatment prescribed in, the   Class in which the Bankruptcy Court determines such Claim or Interest should   have been classified, without the necessity of resoliciting any votes on the   Plan. 4.2. Unimpaired Classes of Claims. The following Classes of Claims are   unimpaired and, therefore, presumed to have accepted this Plan and are not   entitled to vote on this Plan under section 1126(f) of the Bankruptcy Code:   (a) Class 1: Class 1 consists of all Priority Non-Tax Claims. (b) Class 2:   Class 2 consists of all Other Secured Claims. (c) Class 5: Class 5 consists   of all Government Settlement Claims. (d) Class 6A: Class 6A consists of all   Ongoing Trade Claims. 4.3. Impaired Classes of Claims. (a) The following   Classes of Claims are impaired and entitled to vote on this Plan: (i) Class   3: Class 3 consists of all Bridge Loan Claims. 25 Class Designation   Impairment Entitled to Vote Class 1 Priority Non-Tax Claims No No (Presumed   to accept) Class 2 Other Secured Claims No No (Presumed to accept) Class 3   Bridge Loan Claims Yes Yes Class 4 Novelion Intercompany Loan Claims Yes Yes   Class 5 Government Settlement Claims No No (Presumed to accept) Class 6A   Ongoing Trade Claims No No (Presumed to accept) Class 6B Other General   Unsecured Claims Yes Yes Class 7 Existing Securities Law Claims Yes No   (Deemed to reject) Class 8 Existing Interests Yes No (Deemed to reject) 

    

 

(ii) Class 4:   Class 4 consists of all Novelion Intercompany Loan Claims. (iii) Class 6B:   Class 6B consists of all Other General Unsecured Claims. (b) The following   Classes of Claims and Interests are impaired and deemed to have rejected this   Plan and, therefore, are not entitled to vote on this Plan under section   1126(g) of the Bankruptcy Code: (i) Class 7: Class 7 consists of all Existing   Securities Law Claims. (ii) Class 8: Class 8 consists of all Existing   Interests. 4.4. Separate Classification of Other Secured Claims. Although all   Other Secured Claims have been placed in one Class for purposes of   nomenclature, each Other Secured Claim, to the extent secured by a Lien on   Collateral different than that securing any additional Other Secured Claims,   shall be treated as being in a separate sub-Class for the purpose of   receiving Plan Distributions. ARTICLE V. TREATMENT OF CLAIMS AND INTERESTS   5.1. Priority Non-Tax Claims (Class 1). (a) Treatment: The legal, equitable   and contractual rights of the holders of Priority Non-Tax Claims are   unaltered by this Plan. Except to the extent that a holder of an Allowed   Priority Non-Tax Claim agrees to a different treatment, on the applicable   Distribution Date, each holder of an Allowed Priority Non-Tax Claim shall   receive Cash from the applicable Reorganized Debtor in an amount equal to   such Allowed Claim. (b) Voting: The Priority Non-Tax Claims are Unimpaired   Claims. In accordance with section 1126(f) of the Bankruptcy Code, the   holders of Priority Non-Tax Claims are conclusively presumed to accept this   Plan and are not entitled to vote to accept or reject the Plan, and the votes   of such holders will not be solicited with respect to such Allowed Priority   Non-Tax Claims. 5.2. Other Secured Claims (Class 2). (a) Treatment: The   legal, equitable and contractual rights of the holders of Other Secured   Claims are unaltered by this Plan. Except to the extent that a holder of an   Allowed Other Secured Claim agrees to a different treatment, on the   applicable Distribution Date each holder of an Allowed Other Secured Claim   shall receive, at the election of the Reorganized Debtors: (i) Cash in an   amount equal to such Allowed Claim; or (ii) such other treatment that will   render such Other Secured Claim unimpaired pursuant to section 1124 of the   Bankruptcy Code; provided, however, that Other Secured Claims incurred by a   Debtor in the ordinary course 26 

    

 

of business may   be paid in the ordinary course of business in accordance with the terms and   conditions of any agreements relating thereto, in the discretion of the   applicable Debtor or Reorganized Debtor without further notice to or order of   the Bankruptcy Court. Each holder of an Allowed Other Secured Claim shall   retain the Liens securing its Allowed Other Secured Claim as of the Effective   Date until full and final satisfaction of such Allowed Other Secured Claim is   made as provided herein. On the full payment or other satisfaction of each   Allowed Other Secured Claim in accordance with the Plan, the Liens securing   such Allowed Other Secured Claim shall be deemed released, terminated and   extinguished, in each case without further notice to or order of the   Bankruptcy Court, act or action under applicable law, regulation, order or   rule or the vote, consent, authorization or approval of any Person. (b)   Deficiency Claims: To the extent that the value of the Collateral securing   any Other Secured Claim is less than the Allowed amount of such Other Secured   Claim, the undersecured portion of such Allowed Claim shall be treated for   all purposes under this Plan as an Other General Unsecured Claim and shall be   classified as a Class 6B Other General Unsecured Claim. (c) Voting: The   Allowed Other Secured Claims are Unimpaired Claims. In accordance with   section 1126(f) of the Bankruptcy Code, the holders of Allowed Other Secured   Claims are conclusively presumed to accept this Plan and are not entitled to   vote to accept or reject the Plan, and the votes of such holders will not be   solicited with respect to such Allowed Other Secured Claims. 5.3. Bridge Loan   Claims (Class 3). (a) Treatment: The Bridge Loan Claims shall be Allowed   under this Plan, and shall not be subject to any avoidance, reductions, setoff,   offset, recoupment, recharacterization, subordination (whether equitable,   contractual, or otherwise), counterclaims, cross-claims, defenses,   disallowance, impairment, objection, or any other challenges under any   applicable law or regulation by any Person. Except to the extent that a   holder of a Bridge Loan Claim agrees to different treatment with respect to   such holder’s Claim, on the applicable Distribution Date, or as soon as   practicable thereafter, each holder of a Bridge Loan Claim shall receive,   subject to the terms of this Plan, in full and final satisfaction,   settlement, release and discharge of its Bridge Loan Claim: (i) New Money   Bridge Loan Claim: receipt of New Term Loan Facility Obligations on a dollar   for dollar basis on account of its New Money Bridge Loan Claim. (ii) Roll Up   Loan Claim: receipt of New Convertible Notes on a dollar for dollar basis on   account of its Roll Up Loan Claim. (b) Voting: The Bridge Loan Claims are   impaired Claims. Holders of such Claims are entitled to vote to accept or   reject the Plan. The Bridge Loan Lenders, as reflected on the registry   maintained by the Bridge Loan Administrative Agent on the date the Disclosure   Statement Order is entered on the Bankruptcy Court’s docket, rather than the   Bridge Loan Administrative Agent, will vote on the Plan. The Debtors will   request such registry from the 27 

    

 

Bridge Loan   Administrative Agent and votes will be solicited directly by the Debtors with   respect to such Bridge Loan Claims. 5.4. Novelion Intercompany Loan Claims   (Class 4). (a) Treatment: The Novelion Intercompany Loan Claim shall be   Allowed under this Plan, and shall not be subject to any avoidance,   reductions, setoff, offset, recoupment, recharacterization, subordination   (whether equitable, contractual, or otherwise), counterclaims, cross-claims,   defenses, disallowance, impairment, objection, or any other challenges under   any applicable law or regulation by any Person. Except to the extent that the   holder of the Novelion Intercompany Loan Claim agrees to different treatment,   on the applicable Distribution Date, or as soon as practicable thereafter,   the holder of the Novelion Intercompany Loan Claim shall receive, in full and   final satisfaction, release and discharge of the Novelion Intercompany Loan   Claim, the Class 4 New Common Stock Distribution. For the avoidance of doubt,   in satisfaction of the Novelion Intercompany Loan Claim in accordance with   this Section 5.4, Novelion shall waive and release any and all Other Novelion   Claims, and Novelion shall not be entitled to any distribution or   consideration on account thereof, except as provided in the Shared Services   Agreements pursuant to Section 7.16 hereof. (b) Voting: The Novelion   Intercompany Loan Claim is an impaired Claim. The holder of such Claim is   entitled to vote to accept or reject the Plan, and the vote of such holder   will be solicited with respect to such Novelion Intercompany Loan Claim. 5.5.   Government Settlement Claims (Class 5). (a) Treatment: Except to the extent   that a holder of a Government Settlement Claim agrees to a different   treatment, Government Settlement Claims shall be unimpaired by this Plan and   shall remain obligations of the Reorganized Debtors to the extent not   satisfied and/or paid on or before the Effective Date. The Government   Settlement Agreements shall be deemed assumed by the Debtors, and binding   upon the Reorganized Debtors and the applicable parties thereto as of and   following the Effective Date (provided that the foregoing shall not   constitute a determination whether such agreements are executory contracts   subject to section 365 of the Bankruptcy Code). Notwithstanding the   foregoing, and unless the applicable parties to the Government Settlement   Agreements object in writing to such treatment prior to the deadline   established by the Bankruptcy Court to object to confirmation of this Plan,   the monetary obligations under the Government Settlement Agreements shall not   be accelerated or increased as a result of the commencement of the Chapter 11   Cases or the consummation of the transactions contemplated by this Plan, the   Plan Funding Agreement and/or the other Transaction Documents, including the   occurrence of any Fundamental Transaction (as defined in the Government   Settlement Agreements), by virtue of the consummation of any such   transactions or the failure of the New Common Stock of the Plan Investor to   be listed on the NASDAQ or other US stock exchange. Nothing in the foregoing   paragraph affects or limits the provisions of Section 12.6(d)-(e) of this   Plan. (b) Voting: The Government Settlement Claims are Unimpaired Claims. In   accordance with section 1126(f) of the Bankruptcy Code, the holders of the   Government Settlement Claims are conclusively presumed to accept this Plan   and are not entitled to vote to 28 

    

 

accept or   reject the Plan, and the votes of such holders will not be solicited with   respect to the Government Settlement Claims.3 5.6. Ongoing Trade Claims   (Class 6A). (a) Treatment: Except to the extent that a holder of an Allowed   Ongoing Trade Claim agrees to a different treatment, on the applicable   Distribution Date each holder of an Allowed Ongoing Trade Claim shall, at the   election of the Reorganized Debtors, and to the extent that such Allowed   Ongoing Trade Claim was not previously paid pursuant to an order of the   Bankruptcy Court: (i) be paid in full in Cash on the applicable Distribution   Date, plus postpetition interest at the Applicable Interest Rate, computed   daily from the Petition Date through the Effective Date, from Plan Cash, (ii)   as to any Ongoing Trade Claim incurred in the ordinary course of business and   on normal credit terms where payment comes due following the Effective Date,   receive such treatment that leaves unaltered the legal, equitable, or   contractual rights to which the holder of such Allowed Ongoing Trade Claim is   entitled, or (iii) such other treatment that would render such Ongoing Trade   Claim Unimpaired. (b) Voting: The Allowed Ongoing Trade Claims are Unimpaired   Claims. In accordance with section 1126(f) of the Bankruptcy Code, the   holders of Allowed Ongoing Trade Claims are conclusively presumed to accept   this Plan and are not entitled to vote to accept or reject the Plan, and the   votes of such holders will not be solicited with respect to such Allowed   Ongoing Trade Claims. 5.7. Other General Unsecured Claims (Class 6B). (a)   Treatment: Except to the extent that a holder of an Allowed Other General   Unsecured Claim agrees to less favorable treatment, each holder of an Allowed   Other General Unsecured Claim shall receive, on the applicable Distribution   Date and in full and final satisfaction, settlement and release of such   Allowed Other General Unsecured Claim, its Pro Rata Share of: (i) New   Convertible Notes in the principal amount of $125,000,000 less the portion of   New Convertible Notes distributed to (x) holders of DIP Claims (to the extent   the DIP Claims are not repaid in full in Cash and receive a distribution of   New Convertible Notes pursuant to Section 3.1 hereof), and (y) the holders of   Roll Up Loan Claims pursuant to Section 5.3(a)(ii) hereof; and (ii) the Class   6B New Common Stock Distribution (including any New Common Stock issuable   upon exercise of the New Warrants). (b) Voting: The Other General Unsecured   Claims are impaired Claims. Holders of such Claims are entitled to vote to   accept or reject the Plan, and the votes of such holders will be solicited   with respect to such Other General Unsecured Claims. 3 It is the Debtors’   position that the Government Settlement Claims are Unimpaired Claims and that   Class 5 is presumed to accept this Plan under section 1126(f) of the   Bankruptcy Code. However, the holders of Government Settlement Claims reserve   their rights to dispute the Debtors’ position and/or to object to this Plan   by the deadline established by the Bankruptcy Court. Further, even if the   holders of Government Settlement Claims are presumed to accept this Plan,   that presumption in no way affects or limits the provisions of section   12.6(d)-(e) of this Plan. 29 

    

 

5.8. Existing   Securities Law Claims (Class 7). (a) Treatment: Holders of Existing   Securities Law Claims shall not receive or retain any distribution under the   Plan on account of such Existing Securities Law Claims. (b) Voting: The   Existing Securities Law Claims are impaired Claims. In accordance with   section 1126(g) of the Bankruptcy Code, the holders of Existing Securities   Law Claims are conclusively deemed to reject this Plan and are not entitled   to vote to accept or reject the Plan, and the votes of such holders will not   be solicited with respect to such Existing Securities Law Claims. 5.9.   Existing Interests (Class 8). (a) Treatment: Existing Interests shall be   discharged, cancelled, released and extinguished, and holders thereof shall   not receive or retain any distribution under the Plan on account of such   Existing Interests. (b) Voting: The Existing Interests are impaired   Interests. In accordance with section 1126(g) of the Bankruptcy Code, the   holders of Existing Interests are conclusively deemed to reject this Plan and   are not entitled to vote to accept or reject the Plan, and the votes of such   holders will not be solicited with respect to such Existing Interests.   ARTICLE VI. ACCEPTANCE OR REJECTION OF THE PLAN; EFFECT OF REJECTION BY ONE   OR MORE CLASSES OF CLAIMS OR INTERESTS 6.1. Class Acceptance Requirement. A   Class of Claims shall have accepted the Plan if it is accepted by at least   two-thirds (2/3) in dollar amount and more than one-half (1/2) in number of   holders of the Allowed Claims in such Class that have voted on the Plan   calculated in accordance with the Disclosure Statement Order. 6.2. Tabulation   of Votes on a Non-Consolidated Basis. All votes on the Plan shall be   tabulated on a non-consolidated basis by Class and by Debtor for the purpose   of determining whether the Plan satisfies sections 1129(a)(8) and/or (10) of   the Bankruptcy Code. 6.3. “Cramdown.” Confirmation Pursuant to Section   1129(b) of the Bankruptcy Code or Because certain Classes are deemed to have   rejected this Plan, the Debtors will request confirmation of this Plan, as it   may be modified and amended from time to time, under section 1129(b) of the   Bankruptcy Code with respect to such Classes. Subject to Sections 14.5 and   14.6 of this Plan, the Debtors reserve the right (subject to the parties’   rights under the RSA 30 

    

 

and the Plan   Funding Agreement) to alter, amend, modify, revoke or withdraw this Plan or   any Plan Document in order to satisfy the requirements of section 1129(b) of   the Bankruptcy Code, if necessary. Subject to Sections 14.5 and 14.6 of this   Plan, the Debtors also reserve the right to request confirmation of the Plan,   as it may be modified, supplemented or amended from time to time, with   respect to any Class that affirmatively votes to reject the Plan. 6.4.   Elimination of Vacant Classes. Any Class of Claims or Interests that does not   have a holder of an Allowed Claim or Allowed Interest or a Claim or Interest   temporarily Allowed as of the date of the Confirmation Hearing shall be   deemed eliminated from the Plan for purposes of voting to accept or reject   the Plan and for purposes of determining acceptance or rejection of the Plan   pursuant to section 1129(a)(8) of the Bankruptcy Code. 6.5. Voting Classes;   Deemed Acceptance by Non-Voting Classes. If a Class contains Claims or   Interests eligible to vote and no holders of Claims or Interests eligible to   vote in such Class vote to accept or reject the Plan, the Plan shall be   deemed accepted by such Class. 6.6. Confirmation of All Cases. Except as   otherwise specified herein, the Plan shall not be deemed to have been   confirmed unless and until the Plan has been confirmed as to each of the   Debtors; provided, however, that the Debtors, subject to the parties’ rights   under the RSA and the Plan Funding Agreement, may at any time waive this   Section 6.6. ARTICLE VII. MEANS FOR IMPLEMENTATION 7.1. Non-Substantive   Consolidation. The Plan is a joint plan that does not provide for substantive   consolidation of the Debtors’ Estates, and on the Effective Date, the   Debtors’ Estates shall not be deemed to be substantively consolidated for   purposes hereof. Except as specifically set forth herein, nothing in this   Plan shall constitute or be deemed to constitute an admission that any one of   the Debtors is subject to or liable for any claim against any other Debtor. Additionally,   claimants holding Claims and Interests against multiple Debtors, to the   extent Allowed in each Debtor’s Chapter 11 Case, will be treated as holding a   separate Claim or separate Interest, as applicable, against each Debtor’s   Estate, provided, however, that no holder of an Allowed Claim shall be   entitled to receive more than payment in full of such Allowed Claim (plus   postpetition interest, if and to the extent provided in this Plan), and such   Claims will be administered and treated in the manner provided in this Plan.   31 

    

 

7.2. Plan   Funding Transaction. On the Effective Date, subject to the terms and   conditions set forth in the Plan Funding Agreement and the Implementation   Memorandum and in exchange for New Common Stock in the Plan Investor or a   newly formed holding company of the Plan Investor (“New Amryt”) and the other   obligations of the Plan Investor and/or New Amryt under the Plan Funding   Agreement and this Plan, Aegerion shall sell to the Plan Investor or New   Amryt one hundred percent (100%) of the New Equity Interests in reorganized   Aegerion. From and after the Effective Date, the Plan Investor or New Amryt   shall directly and indirectly own the Reorganized Debtors. The existing   shareholders of the Plan Investor shall own 38.6% of New Common Stock and the   holders of Class 4 and Class 6B Claims shall collectively own 61.4% of the   New Common Stock (prior to completion of the $42 million Rights Offering and   $18 million Plan Investor Equity Raise). The transfer of the New Equity   Interests of reorganized Aegerion to the Plan Investor or New Amryt, and any   and all action to be taken in connection therewith, shall be authorized   without the need for any further board, corporate or shareholder action of   the Debtors or Novelion. The issuance of the New Common Stock requires the   approval of the U.K. Panel on Takeovers and Mergers. Further, the formation   of New Amryt will be effected pursuant to a scheme of arrangement that   requires the approval of both the (a) shareholders of the Plan Investor (with   a voting threshold of 75% of those voting and a majority in number of those   voting) and (b) courts of England and Wales. The scheme of arrangement will   be undertaken pursuant to Part 26 of the Companies Act of 2006 and will   involve an application by the Plan Investor to the High Court of Justice in   England and Wales to sanction the scheme of arrangement to allow New Amryt to   become the holding company of the Plan Investor group, following which the   rights and obligations of the Plan Investor under the Plan Funding Agreement   will be assumed by New Amryt. In consideration for the cancellation of each   Plan Investor shareholder’s interest in the Plan Investor, each Plan Investor   shareholder will receive shares in New Amryt and certain contingent value   rights. The New Common Stock is anticipated to be listed for trading on the   Alternative Investment Market operated by the London Stock Exchange plc.   (“AIM”) and on the Euronext Growth Market operated by Euronext Dublin   (“Euronext”) and will require the approval of AIM and Euronext for such   admission and trading. The issuance of the New Common Stock is also subject   to confirmation of the Plan. 7.3. Rights Offering. (a) Purpose. The proceeds   of the sale of the Rights Offering Stock and Plan Investor Equity Raise shall   be used to provide a new equity raise of $60 million — $42 million of which   is on account of the Rights Offering conducted under the Plan and $18 million   of which is on account of the Plan Investor Equity Raise, which shall be   available for ordinary course operations and general corporate purposes. (b)   Rights Offering. In accordance with the New Registration Rights Agreement,   the Rights Offering Procedures and the Backstop Commitment Agreement, and as   provided in the Implementation Memorandum, each Eligible Holder that timely   votes to accept the Plan shall receive Subscription Rights to acquire its   respective Pro Rata Share of Rights Offering Stock pursuant to the terms set   forth in this Plan and in the Rights Offering Procedures. With respect to   each Eligible Holder that timely votes to accept the Plan, each Subscription   Right 32 

    

 

shall represent   the right to acquire one share of Rights Offering Stock for the Rights   Offering Exercise Price. (c) Backstop Commitment. The Plan Investor Equity   Raise will be correspondingly increased by the aggregate amount of the Rights   Offering Amount that is not timely, duly and validly subscribed and paid for   by the Eligible Holders that timely vote to accept the Plan in accordance   with the Rights Offering Procedures, and in accordance with, and subject to   the limitations of, the provisions of the Backstop Commitment Agreement, and   as further described below, upon exercise of the put option of the Plan   Investor, the Backstop Parties shall be severally, and not jointly, required   to purchase their applicable portion of the Unsubscribed Shares (allocated   pro rata among the Backstop Parties based upon their respective Backstop   Commitments) in the event that the Plan Investor has been unable to effect a   private placement of the entire Plan Investor Equity Raise Amount. (d)   Commitment Fee. On the Effective Date, the Backstop Parties shall receive   from the Plan Investor their respective portion of the Backstop Commitment   Fee pursuant to the terms of the Backstop Commitment Agreement. The Backstop   Commitment Fee shall be fully earned immediately upon the Subscription   Commencement Date and payable by the Plan Investor (and not the Debtors) on   the Effective Date pursuant to the terms and conditions of the Backstop   Commitment Agreement. 7.4. Plan Funding. The Debtors’ Cash obligations under   the Plan will be funded from Plan Cash and proceeds from the Rights Offering   and the Plan Investor Equity Raise; provided however (i) that only Plan Cash   shall be used for payment of Government Settlement Claims that become due and   payable prior to the Effective Date, DIP Claims, Fee Claims, Ad Hoc Group Fee   Claim and the Convertible Notes Trustee Professional Fees and (ii) only   proceeds from the Rights Offering and Plan Investor Equity Raise will be used   to pay the Rebate Obligations or to repay any portion of the DIP Obligations   incurred to pay Rebate Obligations. 7.5. New Term Loan Facility; New   Convertibles Notes. On the Effective Date, subject to the Implementation Memorandum,   without any requirement of further action by stockholders or directors of the   Debtors, each of the Reorganized Debtors shall be authorized to enter into   the New Term Loan Facility, in the estimated amount of $81.9 million (which   is an amount equal to (a) the New Money Bridge Loan Claims plus (b) the   Existing Plan Investor Debt), and the New Convertible Notes Indenture,   governing approximately $125 million of New Convertible Notes, as well as any   notes, documents or agreements in connection therewith, including, without   limitation, any documents required in connection with the creation or   perfection of the Liens on any Collateral securing the New Term Loan   Facility. 7.6. Authorization, Issuance and Delivery of Plan Securities by the   Plan Investor. (a) On the Effective Date, subject to the Implementation   Memorandum, the Plan Investor is authorized to issue or cause to be issued   those Plan Securities to be issued by it in accordance with the terms of this   Plan and the Plan Funding Agreement and to take any and 33 

    

 

all action   associated therewith, without the need for any further Bankruptcy Court,   corporate, limited liability company, member or shareholder action. (b) On   the Effective Date, subject to the Implementation Memorandum, the Plan   Investor shall issue and cause to be delivered the New Common Stock and the   New Warrants available in the New Common Stock Distribution to the   Reorganized Debtors, who will then deliver such New Common Stock and New   Warrants directly to the holders of the Novelion Intercompany Loan Claims and   Other General Unsecured Claims in accordance with the terms this Plan. (c) On   the Effective Date, subject to the Implementation Memorandum, the Plan   Investor shall issue and cause to be delivered the Rights Offering Stock to   the Reorganized Debtors, who will then deliver such Rights Offering Stock   directly to Eligible Holders who vote in favor of the Plan and exercise their   Subscription Rights in accordance with the terms of this Plan, the Rights   Offering Procedures, and the Backstop Commitment Agreement. (d) As a   condition to receiving any Plan Securities under this Plan or pursuant to the   Rights Offering or the Plan Investor Equity Raise, the Bridge Lenders shall   have executed and delivered to the Plan Investor a signature page to the New   Registration Rights Agreement. The New Registration Rights Agreement shall be   executed and in full force and effect on the Effective Date. (e)   Notwithstanding anything to the contrary herein, (x) any Person that would be   entitled to receive more than 9.99% (but no more than 15%) of the aggregate   amount of the New Common Stock issued as of the Effective Date (excluding New   Common Stock issued pursuant to any management incentive plan and any New   Common Stock reserved for issuance to any person other than such Person   pursuant to New Warrants or the New Convertible Notes or any other warrant,   option or agreement) or (y) with the consent of the Debtors and Plan   Investor, any other Person entitled to receive New Common Stock hereunder,   may elect to receive New Warrants on a one-for-one basis in lieu of all or   any portion of the shares of New Common Stock that would otherwise be issued   to such Person under the Plan; provided that such Person notifies the Debtors   in writing of such election (and the percentage of shares of New Common Stock   to be issuable thereunder) no later than two (2) Business Days after the   Confirmation Date, provided, further, that, with respect to clause (x),   without the consent of the Debtors and the Plan Investor, such Person may   only elect to receive New Warrants in lieu of such portion of New Common   Stock that would otherwise be issued to such Person under the Plan in excess   of 7.5% of the aggregate amount of New Common Stock issued as of the   Effective Date (excluding New Common Stock issued pursuant to any management   incentive plan and any New Common Stock reserved for issuance to any person   other than such Person pursuant to New Warrants or the New Convertible Notes   or any other warrant, option or agreement). (f) Notwithstanding anything to   the contrary herein, (x) any Person that would be entitled to receive more   than 4.99% (but no more than 6.0%) of the aggregate amount of the New Common   Stock issued as of the Effective Date (excluding New Common Stock issued   pursuant to any management incentive plan and any New Common Stock reserved   for issuance to any person other than such Person pursuant to New Warrants or   the 34 

    

 

New Convertible   Notes or any other warrant, option or agreement) or (y) with the consent of   the Debtors and Plan Investor, any other Person entitled to receive New   Common Stock hereunder, may elect to receive New Warrants on a one-for-one   basis in lieu of all or any portion of the shares of New Common Stock that   would otherwise be issued to such Person under the Plan; provided that such   Person notifies the Debtors in writing of such election (and the percentage   of shares of New Common Stock to be issuable thereunder) no later than two   (2) Business Days after the Confirmation Date, provided, further, that, with   respect to clause (x), without the consent of the Debtors and the Plan   Investor, such Person may only elect to receive New Warrants in lieu of such   portion of New Common Stock that would otherwise be issued to such Person   under the Plan in excess of 4.5% of the aggregate amount of New Common Stock   issued as of the Effective Date (excluding New Common Stock issued pursuant   to any management incentive plan and any New Common Stock reserved for   issuance to any person other than such Person pursuant to New Warrants or the   New Convertible Notes or any other warrant, option or agreement). 7.7.   Continued Corporate Existence and Vesting of Assets. (a) General. (i) Except   as otherwise provided in this Plan, the Debtors shall continue to exist after   the Effective Date as Reorganized Debtors in accordance with the applicable   laws of the respective jurisdictions in which they are incorporated or   organized and pursuant to the Amended Certificates of Formation for the   purposes of satisfying their obligations under the Plan and the continuation   of their business. On or after the Effective Date, each Reorganized Debtor,   in its discretion, may take any and all action as permitted by applicable law   and such Reorganized Debtor’s organizational documents, as such Reorganized   Debtor may determine is reasonable and appropriate, including, but not   limited to, causing: (w) a Reorganized Debtor to be merged into another   Reorganized Debtor, or its Subsidiary and/or affiliate; (x) a Reorganized   Debtor to be dissolved; (y) the legal name of a Reorganized Debtor to be   changed; or (z) the closure of a Reorganized Debtor’s case on the Effective   Date or any time thereafter. (ii) On the Effective Date or as soon as   reasonably practicable thereafter, the Reorganized Debtors may take any and   all action as may be necessary or appropriate to effect any transaction   described in, approved by, contemplated by, or necessary to effectuate the   Plan, including: (1) the execution and delivery of appropriate agreements or   other documents of merger, consolidation, restructuring, conversion,   disposition, transfer, dissolution or liquidation containing terms that are   consistent with the terms of the Plan and that satisfy the applicable   requirements of applicable law and any other terms to which the applicable entities   may agree; 35 

    

 

(2) the   execution and delivery of appropriate instruments of transfer, assignment,   assumption or delegation of any asset, property, right, liability, debt or   obligation on terms consistent with the terms of the Plan and having other   terms for which the applicable parties agree; (3) the filing of appropriate   certificates or articles of incorporation, reincorporation, merger,   consolidation, conversion or dissolution pursuant to applicable state law;   and (4) all other actions that the applicable entities determine to be   necessary or appropriate, including making filings or recordings that may be   required by applicable law. (b) Revesting of Assets. Except as otherwise   provided in this Plan, on and after the Effective Date, all property of the   Estates, wherever located, including all claims, rights and Causes of Action   and any property, wherever located, acquired by the Debtors under or in   connection with this Plan, shall revest in the Reorganized Debtors, as   applicable, free and clear of all Claims, Liens, charges, other encumbrances   and Interests. On and after the Effective Date, except as otherwise provided   in this Plan, each applicable Reorganized Debtor may operate its business and   may use, acquire and dispose of property, wherever located, and each   Reorganized Debtor may prosecute, compromise or settle any Claims (including   any Administrative Expense Claims) and Causes of Action without supervision   of or approval by the Bankruptcy Court and free and clear of any restrictions   of the Bankruptcy Code or the Bankruptcy Rules other than restrictions   expressly imposed by this Plan or the Confirmation Order. Without limiting   the foregoing, the Reorganized Debtors may pay the charges that they incur on   or after the Effective Date for Professional Persons’ fees, disbursements,   expenses or related support services without application to the Bankruptcy   Court. 7.8. Cancellation of Existing Securities and Agreements. Except for   the purpose of evidencing a right to distribution under this Plan, and except   as otherwise set forth in this Plan (including Section 2.3 hereof), on the   Effective Date, subject to the Implementation Memorandum, all agreements,   including all intercreditor agreements, instruments, and other documents   evidencing, related to or connected with any Claim or Interest, other than   Intercompany Interests, and any rights of any holder in respect thereof,   shall be deemed cancelled, discharged and of no force or effect. The holders   of or parties to such cancelled instruments, securities and other   documentation will have no rights arising from or relating to such   instruments, securities and other documentation or the cancellation thereof,   except the rights provided for pursuant to this Plan. Notwithstanding   anything to the contrary herein, each of the Bridge Loan Credit Agreement,   Novelion Intercompany Loan Credit Agreement and the Convertible Notes   Indenture shall continue in effect solely to the extent necessary to: (a)   permit holders of Bridge Loan Claims, Novelion Intercompany Loan Claims and   Convertible Notes Claims to receive Plan Distributions on account of such   respective claims; (b) permit the Bridge Loan Administrative Agent and the   Convertible Notes Trustee to seek compensation and/or reimbursement of fees   and expenses in accordance with the terms of this Plan and/or the Convertible   Notes Indenture, including through the exercise of the charging Lien provided   under the Convertible Notes Indenture; and (c) preserving the right of the   Convertible Notes Indenture Trustee to indemnification from the Debtors   pursuant and subject to the terms of the Convertible Notes Indenture. Except   as 36 

    

 

provided   pursuant to this Plan, upon satisfaction of the Bridge Loan Claims and   Convertible Notes Claims, each of the Bridge Loan Administrative Agent and   the Convertible Notes Trustee, shall be discharged of all of their respective   obligations associated with the Bridge Loan and the Convertible Notes,   respectively. 7.9. Boards. (a) As of the Effective Date, the initial board of   directors of each of the Reorganized Debtors and the Plan Investor shall   consist of those individuals set forth in the Plan Supplement to be filed   with the Bankruptcy Court on or before the date of the Confirmation Hearing.   The compensation arrangement for any insider of the Debtors that shall become   an officer of a Reorganized Debtor or the Plan Investor shall be disclosed in   the Plan Supplement and selected in accordance with the terms set forth in   the New Registration Rights Agreement. (b) Unless reappointed pursuant to   Section 7.9(a) of the Plan, the members of the board of directors of each   Debtor prior to the Effective Date shall have no continuing obligations to   the Reorganized Debtors in their capacities as such on and after the Effective   Date, each such member shall be deemed to have resigned or shall otherwise   cease to be a director of the applicable Debtor on the Effective Date.   Commencing on the Effective Date, each of the directors of each of the   Reorganized Debtors shall serve pursuant to the terms of the applicable   organizational documents of such Reorganized Debtor and may be replaced or   removed in accordance with such organizational documents. 7.10.Management. As   of the Effective Date, the individuals who will serve in certain senior   management positions of the Reorganized Debtors shall consist of those   individuals set forth in the Plan Supplement and shall be Acceptable to the   Debtors and each of the Required Parties in accordance with the applicable   terms of the Transaction Documents. The compensation arrangement for any   insider of the Debtors that shall become an officer of a Reorganized Debtor   shall be in form and substance Acceptable to the Debtors and each of the   Required Parties and disclosed in the Plan Supplement to be filed with the   Bankruptcy Court on or before the date of the Confirmation Hearing.   7.11.Corporate Action. (a) The Reorganized Debtors shall serve on the U.S.   Trustee quarterly reports of the disbursements made by each Reorganized   Debtor on an entity-by-entity basis, within 15 days after the conclusion of   each such period, until such time as a final decree is entered closing the   applicable Chapter 11 Case or the applicable Chapter 11 Case is converted or   dismissed. Any such reports shall be prepared consistent with (both in terms   of content and format) any applicable Bankruptcy Court and U.S. Trustee   guidelines. Any deadline for filing Administrative Expense Claims shall not   apply to U.S. Trustee Fees. (b) On the Effective Date, the Amended Memorandum   of Association, the Amended Certificates of Formation and any other   applicable amended and restated corporate organizational documents of each of   the Reorganized Debtors shall be deemed authorized in all respects. 37 

    

 

(c) Any action   under the Plan to be taken by or required of the Debtors or the Reorganized   Debtors, including the adoption or amendment of certificates of formation,   incorporation and by-laws, the issuance of securities and instruments, or the   selection of officers or directors shall be authorized and approved in all   respects, without any requirement of further action by any of the Debtors’ or   the Reorganized Debtors’ equity holders, sole members, boards of directors or   boards of managers, or similar body, as applicable. (d) The Debtors and the   Reorganized Debtors shall be authorized to execute, deliver, file, and record   such documents (including the Plan Documents), contracts, instruments,   releases and other agreements and take such other action as may be necessary   to effectuate and further evidence the terms and conditions of the Plan,   without the necessity of any further Bankruptcy Court, corporate, limited   liability company, board, member, or shareholder approval or action. In   addition, the selection of the Persons who will serve as the initial   directors, officers and managers of the Reorganized Debtors as of the   Effective Date shall be deemed to have occurred and be effective on and after   the Effective Date without any requirement of further action by the board of   directors, board of managers, or equity holders of the applicable Reorganized   Debtor. 7.12.Ad Hoc Group Fee Claim. On the Effective Date or as soon as   reasonably practicable thereafter, the Debtors or the Reorganized Debtors   shall pay the Ad Hoc Group Fee Claim from Plan Cash. 7.13.Payment of   Convertible Notes Trustee Fees. On the Effective Date, the Debtors shall pay   in Cash all unpaid Convertible Notes Trustee Fees from Plan Cash, regardless   of whether such fees and expenses were incurred before or after the Petition   Date, without application by any party to the Bankruptcy Court and without   notice and a hearing pursuant to section 1129(a)(4) of the Bankruptcy Code or   otherwise. Notwithstanding anything to the contrary in the Plan, the   Convertible Notes Trustee Professional Fees shall not be subject to the   Administrative Bar Date. 7.14.Comprehensive Settlement of Claims and   Controversies. Pursuant to Bankruptcy Rule 9019 and in consideration for the   distributions and other benefits provided under this Plan, the provisions of   this Plan will constitute a good faith compromise and settlement of all   Claims or controversies relating to the rights that a holder of a Claim or   Interest may have with respect to any Allowed Claim or Allowed Interest or   any distribution to be made pursuant to this Plan on account of any Allowed   Claim or Allowed Interest. The entry of the Confirmation Order will   constitute the Bankruptcy Court’s approval, as of the Effective Date, of the   compromise or settlement of all such claims or controversies and the   Bankruptcy Court’s finding that all such compromises or settlements are: (i)   in the best interest of the Debtors, the Reorganized Debtors, and their   respective Estates and property, and of holders of Claims or Interests; and (ii)   fair, equitable and reasonable. 38 

    

 

7.15.Additional   Transactions Authorized Under This Plan. On or prior to the Effective Date,   as shall be Acceptable to the Required Parties, the Debtors shall be   authorized to take any such actions as may be necessary or appropriate to   reinstate Claims or Interests or render Claims or Interests not impaired, as   provided for under this Plan. 7.16.Shared Services Agreements. The Shared   Services Agreements, as amended, shall be assumed by order of the Bankruptcy   Court and shall terminate on the Effective Date in accordance with the terms   of the Shared Services Agreements. 7.17.Acceptable. As used herein, the term   “Acceptable” shall mean (x) when in reference to any document, or any   amendment, modification or change to such document, in form and substance   reasonably acceptable to the applicable parties, and (y) when in reference to   any individual, reasonably acceptable to the applicable parties. ARTICLE   VIII. DISTRIBUTIONS 8.1. Distributions. The Disbursing Agent shall make all   Plan Distributions to the appropriate holders of Allowed Claims in accordance   with the terms of this Plan. Distributions to holders of Allowed General   Unsecured Claims (on account of Convertible Notes Claims) shall be made by   the Convertible Notes Trustee and deemed completed when made to the indenture   trustee as Disbursing Agent. Plan Distributions on account of the Bridge Loan   Claim (other than the payment of any unpaid fees and expenses of the Bridge   Loan Administrative Agent which shall be paid to the Bridge Loan   Administrative Agent in cash on the Effective Date) shall not be made to the   Bridge Loan Administrative Agent but instead shall be distributed directly to   the Bridge Loan Lenders as reflected on the registry maintained by the Bridge   Loan Administrative Agent as of the Confirmation Date. The Debtors will   request such registry from the Bridge Loan Administrative Agent. 8.2. No   Postpetition Interest on Claims. Other than as specifically provided in the   Plan or the Confirmation Order, or required by applicable bankruptcy or   non-bankruptcy law, postpetition interest shall not accrue or be paid on any   Claims, and no holder of a Claim shall be entitled to interest accruing on   such Claim on or after the Petition Date. 39 

    

 

8.3. Date of   Distributions. Unless otherwise provided herein, any Plan Distributions and   deliveries to be made hereunder shall be made on the applicable Distribution   Date; provided, that the Reorganized Debtors may utilize periodic distribution   dates to the extent that use of a periodic distribution date does not delay   payment of the Allowed Claim more than sixty (60) days. For the avoidance of   doubt, and notwithstanding anything herein to the contrary, all such Plan   Distributions and deliveries that are to be made in Cash hereunder on the   applicable Distribution Date shall be made from Plan Cash unless otherwise   provided herein. In the event that any payment or act under this Plan is   required to be made or performed on a date that is not a Business Day, then   the making of such payment or the performance of such act may be completed on   or as soon as reasonably practicable after the next succeeding Business Day,   but shall be deemed to have been completed as of the required date. 8.4. Distribution   Record Date. As of the close of business on the Distribution Record Date, the   various lists of holders of Claims in each of the Classes, as maintained by   the Debtors, or their agents, shall be deemed closed and there shall be no   further changes in the record holders of any of the Claims after the   Distribution Record Date. Neither the Debtors nor the Disbursing Agent shall   have any obligation to recognize any transfer of Claims occurring after the   close of business on the Distribution Record Date. Additionally, with respect   to payment of any Cure Amounts or any Cure Disputes in connection with the   assumption and/or assignment of the Debtors’ executory contracts and   unexpired leases, neither the Debtors, the Disbursing Agent nor the Plan   Investor shall have any obligation to recognize or deal with any party other   than the non-Debtor party to the applicable executory contract or unexpired   lease, even if such non-Debtor party has sold, assigned or otherwise   transferred its Claim for a Cure Amount. 8.5. Disbursing Agent. (a) Powers of   Disbursing Agent. The Disbursing Agent shall be empowered to: (i) effectuate   all actions and execute all agreements, instruments, and other documents   necessary to perform its duties under this Plan; (ii) make all applicable Plan   Distributions or payments contemplated hereby; (iii) employ professionals to   represent it with respect to its responsibilities; and (iv) exercise such   other powers as may be vested in the Disbursing Agent by order of the   Bankruptcy Court (including any order issued after the Effective Date),   pursuant to this Plan, or as deemed by the Disbursing Agent to be necessary   and proper to implement the provisions hereof. (b) Expenses Incurred by the   Disbursing Agent on or After the Effective Date. Except as otherwise ordered   by the Bankruptcy Court, and subject to the written agreement of the   Reorganized Debtors, the amount of any reasonable and documented fees and   expenses incurred by the Disbursing Agent on or after the Effective Date   (including taxes) and any reasonable compensation and expense reimbursement   Claims (including reasonable attorney and other professional fees and   expenses) of the Disbursing Agent shall be paid in Cash by the Reorganized   Debtors. The foregoing fees and expenses shall be paid in the ordinary   course, upon presentation of invoices to the Reorganized Debtors and without   the need for approval by 40 

    

 

the Bankruptcy   Court, as set forth in Section 3.2(b) of this Plan. In the event that the   Disbursing Agent and the Reorganized Debtors are unable to resolve a dispute   with respect to the payment of the Disbursing Agent’s fees, costs and   expenses, the Disbursing Agent may elect to submit any such dispute to the   Bankruptcy Court for resolution. (c) Bond. The Disbursing Agent shall not be   required to give any bond or surety or other security for the performance of   its duties unless otherwise ordered by the Bankruptcy Court and, in the event   that the Disbursing Agent is so otherwise ordered, all costs and expenses of   procuring any such bond or surety shall be borne by the Reorganized Debtors.   Furthermore, any such entity required to give a bond shall notify the   Bankruptcy Court and the U.S. Trustee in writing before terminating any such   bond that is obtained. (d) Cooperation with Disbursing Agent. The Reorganized   Debtors shall use all commercially reasonable efforts to provide the   Disbursing Agent with the amount of Claims and the identity and addresses of   holders of Claims, in each case, that are entitled to receive Plan Distributions,   as set forth in the Debtors’ or the applicable Reorganized Debtors’ books and   records. The Reorganized Debtors will cooperate in good faith with the   Disbursing Agent to comply with the withholding and reporting requirements   outlined in Section 8.16 of this Plan. 8.6. Delivery of Distributions in   General. Subject to the provisions contained in this Article VIII, the   applicable Disbursing Agent will issue, or cause to be issued, and   authenticate, as applicable, all Plan Consideration, and subject to Bankruptcy   Rule 9010, make all Plan Distributions or payments to any holder of an   Allowed Claim as and when required by this Plan at: (a) the address of such   holder on the books and records of the Debtors or their agents; or (b) at the   address in any written notice of address change delivered to the Debtors or   the applicable Disbursing Agent, including any addresses included on any   filed proofs of Claim or transfers of Claim filed with the Bankruptcy Court.   In the event that any Plan Distribution to any holder is returned as   undeliverable, no distribution or payment to such holder shall be made unless   and until the applicable Disbursing Agent has been notified of the then   current address of such holder, at which time or as soon as reasonably   practicable thereafter such Plan Distribution shall be made to such holder   without interest; provided, however, such Plan Distributions or payments   shall be deemed unclaimed property under section 347(b) of the Bankruptcy   Code at the expiration of the later of one year from (i) the Effective Date,   and (ii) the first Distribution Date after such holder’s Claim is first   Allowed. 8.7. Delivery of Distributions on Convertible Notes Claims. The   Convertible Notes Indenture Trustee shall be deemed to be the holder of all   Allowed Convertible Notes Claims in Class 6B for purposes of distributions to   be made hereunder, and all distributions on account of such Allowed Claims   shall be made to or at the direction of the Convertible Notes Indenture   Trustee except as otherwise provided herein. As soon as practicable following   the Effective Date, the Convertible Notes Indenture Trustee shall arrange to   deliver or direct the delivery of such distributions to or on behalf of the   holders of Allowed Convertible Notes Claims in Class 6B in accordance with   the terms of the Convertible Notes Indenture and the Plan. Distributions of   the New Convertible Notes to be held through 41 

    

 

DTC shall be   made through the facilities of DTC in accordance with DTC’s customary   practices. All New Convertible Notes to be distributed pursuant to the Plan   shall be issued in the names of such holders, their nominees of record, or   their permitted designees as of the Distribution Record Date in accordance   with DTC’s book-entry procedures, to the extent applicable; provided that   such New Convertible Notes are permitted to be held through DTC’s book-entry   system; provided, further, that to the extent that the New Convertible Notes   are not eligible for distribution in accordance with DTC’s customary   practices, the Reorganized Debtors will take such reasonable actions as may   be required to cause distributions of the New Convertible Notes under the   Plan. No distributions will be made other than through DTC if the New   Convertible Notes are permitted to be held through DTC’s book entry system.   Any distribution that otherwise would be made to any holder eligible to   receive a distribution of a security available solely through DTC who does   not own or hold an account eligible to receive a distribution through DTC on   a relevant distribution date shall be forfeited. The Reorganized Debtors will   cause distributions of New Common Stock to be made to the CREST account of the   holders of Allowed Convertible Notes Claims, or failing that, to the   Convertible Notes Indenture Trustee to be held on behalf of the holders of   Allowed Convertible Notes Claims and in accordance with the customary   practices of the applicable depositary. All New Common Stock to be   distributed pursuant to the Plan shall be issued in the names of such   holders, their nominees of record, or their permitted designees as of the   Distribution Record Date; provided, that to the extent that the New Common   Stock is American Depositary Shares representing common stock or is not   eligible for distribution as set forth herein, the Reorganized Debtors will   take such reasonable actions as may be required to cause distributions of the   New Common Stock under the Plan. Notwithstanding anything in the Plan to the   contrary, and without limiting the exculpation and release provisions of the   Plan, the Convertible Notes Indenture Trustee shall not have any liability to   any entity with respect to distributions made or directed to be made by the   Convertible Notes Indenture Trustee except for fraud or intentional   misconduct. 8.8. Unclaimed Property. Except with respect to holders of   Unimpaired Claims, one year from the later of (i) the Effective Date, and   (ii) the first Distribution Date after such holder’s Claim is first Allowed,   all unclaimed property, wherever located, or interests in property   distributable hereunder on account of such Claim shall revert to the   Reorganized Debtors or their respective successors or assigns of the Reorganized   Debtors, and any claim or right of the holder of such Claim to such property,   wherever located, or interest in property shall be discharged and forever   barred. The Reorganized Debtors and the Disbursing Agent shall have no   obligation to attempt to locate any holder of an Allowed Claim other than by   reviewing the Debtors’ books and records, and the proofs of Claim filed   against the Debtors, as reflected on the claims register maintained by the   Claims Agent. 8.9. Satisfaction of Claims. Unless otherwise specifically   provided herein, any Plan Distributions and deliveries to be made on account   of Allowed Claims hereunder shall be in complete settlement, satisfaction and   discharge of such Allowed Claims. 42 

    

 

8.10.Manner of   Payment Under Plan. Except as specifically provided herein, at the option of   the Reorganized Debtors, any Cash payment to be made hereunder may be made by   a check or wire transfer or as otherwise required or provided in applicable   agreements or customary practices of the Debtors or the applicable   Reorganized Debtor, as the case may be. 8.11.Fractional Shares; De Minimis   Cash Distributions. Neither the Reorganized Debtors nor the Disbursing Agent   shall have any obligation to make a Plan Distribution that is less than one   (1) share of New Common Stock or $50.00 in Cash. No fractional shares of New   Common Stock shall be distributed. When any Plan Distribution would otherwise   result in the issuance of a number of shares of New Common Stock that is not   a whole number, the shares of the New Common Stock subject to such Plan   Distribution will be rounded to the next higher or lower whole number as   follows: (i) fractions equal to or greater than 1⁄2 will be rounded to the next   higher whole number; and (ii) fractions less than 1⁄2 will be rounded to the   next lower whole number; provided, that the foregoing shall not apply to any   rounding of the Rights Offering Stock, the distribution of which shall be   governed by the Rights Offering Procedures and Section 7.3 of this Plan. The   total number of shares of New Common Stock to be distributed on account of   Allowed Claims will be adjusted as necessary to account for the rounding   provided for in this Plan. No consideration will be provided in lieu of   fractional shares that are rounded down. Fractional shares of New Common   Stock that are not distributed in accordance with this Section 8.11 shall be   cancelled. 8.12.Distributions on Account of Allowed Claims Only.   Notwithstanding anything herein to the contrary, no Plan Distribution shall   be made on account of a Claim until such Claim becomes an Allowed Claim plus   any postpetition interest on such Claim, to the extent such interest is   permitted under this Plan. 8.13.No Distribution in Excess of Amount of   Allowed Claim. Notwithstanding anything herein to the contrary, no holder of   an Allowed Claim shall, on account of such Allowed Claim, receive a Plan   Distribution of a value in excess of the Allowed amount of such Claim.   8.14.Exemption from Securities Laws. The issuance of and the distribution under   the Plan of the Plan Securities shall be exempt from registration under the   Securities Act and any other applicable securities laws pursuant to section   1145 of the Bankruptcy Code, to the maximum extent permitted thereunder. The   New Common Stock (including the Rights Offering Stock and New Common Stock   issuable upon the exercise of New Warrants) issued under the Plan will be   issued without registration under the Securities Act or any similar federal,   state, or local law in reliance upon section 1145 of the Bankruptcy Code. New   Common Stock (including the Rights Offering Stock and New Common Stock   issuable upon the exercise of New Warrants) issued under the Plan in reliance   upon section 1145 of the Bankruptcy Code shall be exempt from, among other   things, 43 

    

 

the   registration requirements of Section 5 of the Securities Act and any other   applicable U.S. state or local law requiring registration prior to the   offering, issuance, distribution, or sale of securities except with respect   to an entity that is an “underwriter” as defined in subsection (b) of section   1145 of the Bankruptcy Code. For the avoidance of doubt, Novelion shall not   be deemed an “underwriter” as defined in subsection (b) of section 1145 of   the Bankruptcy Code. The New Common Stock (including the Rights Offering   Stock and New Common Stock issuable upon the exercise of New Warrants) issued   pursuant to section 1145 of the Bankruptcy Code also does not constitute   “restricted securities” as defined in Rule 144(a)(3) under the Securities   Act, and, subject to the terms of the New Registration Rights Agreement and   the Amended Memorandum of Association, is freely tradable and transferable by   any holder thereof that: (a) is not an “affiliate” of the Reorganized Debtors   as defined in Rule 144(a)(1) under the Securities Act; (b) has not been such   an “affiliate” within 90 days of such transfer; and (c) has not acquired the   New Common Stock from an “affiliate” within one year of such transfer. For   the avoidance of doubt, while the Rights Offering shall be conducted in   reliance upon the exemption from registration under the Securities Act   provided in section 1145 of the Bankruptcy Code, the Debtors are not seeking   such an exemption for the New Common Stock issued pursuant to the Plan Investor   Equity Raise or with respect to any shares purchased by existing shareholders   of the Plan Investor that are not Eligible Holders. 8.15.Setoffs and   Recoupments. Except as expressly provided in this Plan, each Reorganized   Debtor may, pursuant to section 553 of the Bankruptcy Code, set off and/or   recoup against any Plan Distributions to be made on account of any Allowed   Claim, any and all claims, rights and Causes of Action that such Reorganized   Debtor may hold against the holder of such Allowed Claim to the extent such   setoff or recoupment is either (a) agreed in amount among the relevant   Reorganized Debtor(s) and holder of such Allowed Claim, or (b) otherwise   adjudicated by the Bankruptcy Court or another court of competent   jurisdiction; provided, however, that neither the failure to effectuate a   setoff or recoupment nor the allowance of any Claim hereunder shall   constitute a waiver or release by a Reorganized Debtor or its successor of   any and all claims, rights and Causes of Action that such Reorganized Debtor   or its successor may possess against the applicable holder. 8.16.Withholding   and Reporting Requirements. In connection with this Plan and all Plan   Distributions hereunder, the Reorganized Debtors shall comply with all   withholding and reporting requirements imposed by any federal, state,   provincial, local or foreign taxing authority, and all Plan Distributions   hereunder shall be subject to any such withholding and reporting   requirements. The Reorganized Debtors shall be authorized to take any and all   action that may be necessary or appropriate to comply with such withholding   and reporting requirements, including requiring a holder of a Claim to submit   appropriate tax and withholding certifications. Notwithstanding any other   provision of this Plan: (a) each holder of an Allowed Claim that is to   receive a Plan Distribution under this Plan shall have sole and exclusive   responsibility for the satisfaction and payment of any tax obligations   imposed by any governmental unit, including income, withholding and other tax   obligations on account of such distribution; and (b) no Plan Distributions   shall be required to be made to or on behalf of such holder pursuant to this   Plan unless and until such holder has made arrangements 44 

    

 

satisfactory to   the Reorganized Debtors for the payment and satisfaction of such tax   obligations or has, to the Reorganized Debtors’ satisfaction, established an   exemption therefrom. 8.17.Hart-Scott Rodino Antitrust Improvements Act. Any   New Common Stock to be distributed under the Plan to an entity required to   file a Premerger Notification and Report Form under the Competition Laws   shall not be distributed until the notification and waiting period applicable   under such Competition Laws to such entity shall have expired or been   terminated or any applicable authorizations, approvals, clearances or   consents have been obtained. ARTICLE IX. PROCEDURES FOR RESOLVING CLAIMS 9.1.   Claims Process. Other than with respect to Fee Claims, only the Reorganized   Debtors shall be entitled to object to Claims after the Effective Date. Any   objections to those Claims (other than Administrative Expense Claims) shall   be served and filed on or before the later of: (a) the date that is 180 days   after the Effective Date; and (b) such other date as may be fixed by the   Bankruptcy Court, whether fixed before or after the date specified in clause   (a) hereof. Any Claims filed after the Bar Date or Administrative Bar Date,   as applicable, shall be deemed disallowed and expunged in their entirety   without further order of the Bankruptcy Court or any action being required on   the part of the Debtors or the Reorganized Debtors, unless the Person wishing   to file such untimely Claim has received the Bankruptcy Court’s authorization   to do so. Notwithstanding any authority to the contrary, an objection to a   Claim shall be deemed properly served on the claimant if the objecting party   effects service in any of the following manners: (a) in accordance with   Federal Rule of Civil Procedure 4, as modified and made applicable by   Bankruptcy Rule 7004; (b) by first class mail, postage prepaid, on the   signatory on the proof of claim as well as all other representatives   identified in the proof of claim or any attachment thereto; or (c) if counsel   has agreed to or is otherwise deemed to accept service, by first class mail,   postage prepaid, on any counsel that has appeared on the claimant’s behalf in   the Chapter 11 Cases (so long as such appearance has not been subsequently   withdrawn). From and after the Effective Date, the Reorganized Debtors may   settle or compromise any Disputed Claim without approval of the Bankruptcy   Court. 9.2. Amendment to Claims. From and after the Effective Date, no proof   of Claim may be amended to increase or assert additional claims not reflected   in a previously timely filed Claim (or Claim scheduled on the applicable   Debtor’s Schedules, unless superseded by a filed Claim), and any such Claim   shall be deemed disallowed and expunged in its entirety without further order   of the Bankruptcy Court or any action being required on the part of the   Debtors or the Reorganized Debtors unless the claimant has obtained the   Bankruptcy Court’s prior approval to file such amended or increased Claim.   Notwithstanding anything to the contrary in this Section, proofs of Claim and   amendments of any kind to proofs of Claim may be filed by Governmental Units   in accordance 45 

    

 

with the   deadlines set by the Order Establishing Deadline for Filing Proofs of Claim   and Approving the Form and Manner of Notice Thereof [Docket No. 51]. 9.3.   Disputed Claims. Disputed Claims shall not be entitled to any Plan   Distributions unless and until they become Allowed Claims. 9.4. Estimation of   Claims. The Debtors and/or Reorganized Debtors may request that the   Bankruptcy Court enter an Estimation Order with respect to any Claim,   pursuant to section 502(c) of the Bankruptcy Code, for purposes of determining   the Allowed amount of such Claim regardless of whether any Person has   previously objected to such Claim or whether the Bankruptcy Court has ruled   on any such objection, and the Bankruptcy Court shall retain jurisdiction to   estimate any Claim at any time (including during the pendency of any appeal   with respect to the allowance or disallowance of such Claims). In the event   that the Bankruptcy Court estimates any contingent or unliquidated Claim for   allowance or distribution purposes, that estimated amount will constitute   either the Allowed amount of such Claim or a maximum limitation on such   Claim, as determined by the Bankruptcy Court. If the estimated amount   constitutes a maximum limitation on such Claim, the objecting party may elect   to pursue any supplemental proceedings to object to any ultimate allowance of   such Claim. All of the objection, estimation, settlement, and resolution   procedures set forth in the Plan are cumulative and not exclusive of one   another. Claims may be estimated and subsequently compromised, settled,   resolved or withdrawn by any mechanism approved by the Bankruptcy Court.   ARTICLE X. EXECUTORY CONTRACTS AND UNEXPIRED LEASES 10.1.General Treatment.   As of and subject to the occurrence of the Effective Date and the payment of   any applicable Cure Amount, all executory contracts and unexpired leases of   the Debtors shall be deemed assumed, except that: (a) any executory contracts   and unexpired leases that previously have been assumed or rejected pursuant   to a Final Order of the Bankruptcy Court shall be treated as provided in such   Final Order; (b) any executory contracts and unexpired leases listed on the   Schedule of Rejected Contracts and Leases shall be deemed rejected as of the   Effective Date; and (c) all executory contracts and unexpired leases that are   the subject of a separate motion to assume or reject under section 365 of the   Bankruptcy Code pending on the Effective Date shall be treated as provided   for in the Final Order resolving such motion. Subject to the occurrence of the   Effective Date, entry of the Confirmation Order by the Bankruptcy Court shall   constitute approval of the assumptions and rejections described in this   Section 10.1 pursuant to sections 365(a) and 1123 of the Bankruptcy Code.   Each executory contract and unexpired lease assumed pursuant to this Section   10.1 shall revest in and be fully enforceable by the applicable Reorganized   Debtor in accordance with its terms, except as modified by the provisions of   the Plan, or any order of the Bankruptcy Court authorizing and providing for   its assumption, or 46 

    

 

applicable   federal law. Without determining whether any of the Government Settlement   Agreements is an executory contract subject to section 365 of the Bankruptcy   Code, the Government Settlement Agreements shall be deemed assumed by the   Debtors, and binding upon the Reorganized Debtors and the applicable parties   thereto as of and following the Effective Date (provided that the foregoing   shall not constitute a determination whether such agreements are executory   contracts subject to section 365 of the Bankruptcy Code). Nothing in the   foregoing paragraph affects or limits the provisions of Section 12.6(d)-(e)   of the Plan. 10.2.Claims Based on Rejection of Executory Contracts or   Unexpired Leases. Except as otherwise explicitly set forth in the Plan, all   Claims arising from the rejection of executory contracts or unexpired leases,   if evidenced by a timely filed proof of claim, will be treated as Other   General Unsecured Claims. Upon receipt of the Plan Distribution provided in   Section 5.7 of the Plan, all such Claims shall be discharged as of the   Effective Date, and shall not be enforceable against the Debtors, the   Estates, the Reorganized Debtors or their respective properties or interests   in property. In the event that the rejection of an executory contract or   unexpired lease by any of the Debtors pursuant to the Plan results in damages   to the other party or parties to such contract or lease, a Claim for such   damages, if not evidenced by a timely filed proof of claim, shall be forever   barred and shall not be enforceable against the Debtors or the Reorganized   Debtors, or their respective properties or interests in property as agents,   successors or assigns, unless a proof of claim is filed with the Bankruptcy   Court and served upon counsel for the Debtors and the Reorganized Debtors on   or before the date that is thirty (30) days after the effective date of such   rejection (which may be the Effective Date, the date on which the Debtors   reject the applicable contract or lease as provided in Section 10.3(c) below,   or pursuant to an order of the Bankruptcy Court). 10.3.Cure of Defaults for   Assumed Executory Contracts and Unexpired Leases. (a) Except to the extent   that less favorable treatment has been agreed to by the non-Debtor party or   parties to each such executory contract or unexpired lease to be assumed   pursuant to the Plan, any monetary defaults arising under such executory   contract or unexpired lease shall be satisfied, pursuant to section 365(b)(1)   of the Bankruptcy Code, by payment of the appropriate amount (the “Cure   Amount”) in full in Cash on the later of thirty (30) days after: (i) the   Effective Date; or (ii) the date on which any Cure Dispute relating to such   Cure Amount has been resolved (either consensually or through judicial   decision). (b) No later than ten (10) calendar days prior to the commencement   of the Confirmation Hearing, the Debtors, in consultation with the Plan   Investor, shall file a schedule (the “Cure Schedule”) setting forth the Cure Amount,   if any, for each executory contract and unexpired lease to be assumed   pursuant to Section 10.1 of the Plan, and serve such Cure Schedule on each   applicable counterparty. Any party that fails to object to the applicable   Cure Amount listed on the Cure Schedule within ten (10) calendar days of the   filing thereof shall be forever barred, estopped and enjoined from disputing   the Cure Amount set forth on the Cure Schedule (including a Cure Amount of   $0.00) and/or from asserting any Claim against the applicable Debtor or   Reorganized Debtor arising under section 365(b)(1) of the Bankruptcy Code   except as set forth on the Cure Schedule. 47 

    

 

(c) In the   event of a dispute (each, a “Cure Dispute”) regarding: (i) the Cure Amount;   (ii) the ability of the applicable Reorganized Debtor to provide “adequate   assurance of future performance” (within the meaning of section 365 of the   Bankruptcy Code) under the contract or lease to be assumed; or (iii) any   other matter pertaining to the proposed assumption, the cure payments   required by section 365(b)(1) of the Bankruptcy Code shall be made following   the entry of a Final Order resolving such Cure Dispute and approving the   assumption. To the extent a Cure Dispute relates solely to the Cure Amount,   the applicable Debtor may assume and/or assume and assign the applicable   contract or lease prior to the resolution of the Cure Dispute provided that   such Debtor reserves Cash in an amount sufficient to pay the full amount   asserted as the required cure payment by the non-Debtor party to such   contract or lease (or such smaller amount as may be fixed or estimated by the   Bankruptcy Court). To the extent the Cure Dispute is resolved or determined   against the applicable Debtor or Reorganized Debtor, as applicable, such   Debtor or Reorganized Debtor, as applicable, may reject the applicable   executory contract or unexpired lease after such determination, and the   counterparty may thereafter file a proof of claim in the manner set forth in   Section 10.2 hereof. 10.4.Effect of Confirmation Order on Assumption,   Assumption and Assignment, and Rejection. Subject to the occurrence of the   Effective Date, entry of the Confirmation Order by the Bankruptcy Court shall   constitute entry of an order by the Bankruptcy Court pursuant to sections   365(a) and 1123(b) of the Bankruptcy Code approving the assumptions,   assumptions and assignments and rejections described in this Article X and   determining that: (a) with respect to such rejections, such rejected   executory contracts and unexpired leases are burdensome and that the   rejection therein is in the best interests of the Estates; (b) with respect   to such assumptions, to the extent necessary, that the applicable Reorganized   Debtor has (i) cured, or provided adequate assurance that the applicable   Reorganized Debtor will promptly cure, any default in accordance with section   365(b)(1)(A) of the Bankruptcy Code, (ii) compensated or provided adequate   assurance that it or its affiliate will promptly compensate the counterparty   for any actual pecuniary loss to such party resulting from such default, and   (iii) provided adequate assurance of future performance under such executory   contract or unexpired lease; and (c) with respect to any assignment, to the   extent necessary, that the applicable Reorganized Debtor or the proposed   assignee has (i) cured, or provided adequate assurance that it or its   affiliate will promptly cure, any default in accordance with section   365(b)(1)(A) of the Bankruptcy Code, (ii) compensated or provided adequate   assurance that the applicable Reorganized Debtor or the proposed assignee   will promptly compensate the counterparty for any actual pecuniary loss to   such party resulting from such default, and (iii) that “adequate assurance of   future performance” (within the meaning of section 365 of the Bankruptcy   Code) by the assignee has been demonstrated and no further adequate assurance   is required. Assumption of any executory contract or unexpired lease and   satisfaction of the Cure Amounts shall result in the full discharge, release and   satisfaction of any claims or defaults, whether monetary or nonmonetary,   including defaults of provisions restricting the change in control or   ownership interest composition or other bankruptcy-related defaults, arising   under any assumed executory contract or unexpired lease at any time before   the date such executory contract or unexpired lease is assumed. Each   executory contract and unexpired lease assumed pursuant to this Article X   shall revest in and be fully enforceable by the applicable Debtor in accordance   with its terms, except as modified by the provisions of the Plan, or any   order of the Bankruptcy Court authorizing and 48 

    

 

providing for   its assumption, or applicable federal law. To the maximum extent permitted by   law, to the extent any provision in any executory contract or unexpired lease   assumed pursuant to the Plan restricts or prevents, or purports to restrict   or prevent, or is breached or deemed breached by, the assumption of such   executory contract or unexpired lease (including any “change of control”   provision), then such provision shall be deemed modified such that the   transactions contemplated by the Plan shall not entitle the non-Debtor party   thereto to terminate such executory contract or unexpired lease or to exercise   any other default-related rights with respect thereto. Any party that fails   to timely file a Cure Dispute on the basis that consent to assume or assume   and assign the applicable executory contract is a condition to such   assumption or assumption and assignment, shall be deemed to have consented to   the assumption or assumption and assignment, as applicable, of such contract.   10.5.Modifications, Amendments, Supplements, Restatements, or Other   Agreements. Unless otherwise provided in the Plan, each assumed or assumed   and assigned executory contract and unexpired lease shall include all   modifications, amendments, supplements, restatements or other agreements that   in any manner affect such executory contract or unexpired lease, and all   executory contracts and unexpired leases related thereto, if any, including   all easements, licenses, permits, rights, privileges, immunities, options,   rights of first refusal and any other interests, unless any of the foregoing   agreements has been previously rejected or is rejected under the Plan or   otherwise. Modifications, amendments, supplements and restatements to   prepetition executory contracts and unexpired leases that have been executed   by the Debtors during the Chapter 11 Cases shall not be deemed to alter the   prepetition nature of the executory contract or unexpired lease, or the   validity, priority or amount of any Claims that may arise in connection   therewith. 10.6.Compensation and Benefit Programs. Subject to the paragraph   immediately following this paragraph, and except as otherwise expressly   provided in this Plan, the Plan Funding Agreement, in a prior order of the   Bankruptcy Court or to the extent subject to a motion pending before the   Bankruptcy Court as of the Effective Date, all employment and severance   policies, and all compensation and benefit plans, policies, and programs of   the Debtors applicable to their respective employees, retirees and   non-employee directors including all savings plans, unfunded retirement   plans, healthcare plans, disability plans, severance benefit plans, incentive   plans, and life, accidental death and dismemberment insurance plans, and paid   time off policies, in each case, as existing on the Petition Date, are   treated as executory contracts under the Plan and, on the Effective Date,   will be assumed pursuant to the provisions of sections 365 and 1123 of the   Bankruptcy Code except for Persons not employees of the Debtors as of the   Petition Date. Each of the Debtors may, prior to the Effective Date and   subject to the parties’ rights under the RSA and the Plan Funding Agreement,   enter into employment agreements with employees that become effective on or   prior to the Effective Date and survive consummation of this Plan. Any such   agreements (or a summary of the material terms thereof) shall be in form 49 

    

 

and substance   Acceptable to the Plan Investor and be included in the Plan Supplement or   otherwise filed with the Bankruptcy Court on or before the date of the   Confirmation Hearing. On the Effective Date, the Debtors or the Reorganized   Debtors, as applicable, shall pay any amounts outstanding under the Debtors’   key executive incentive program and key employee retention plan authorized to   be paid as of that date pursuant to an order of the Bankruptcy Court. For the   avoidance of doubt, and notwithstanding anything herein to the contrary, any   payments of amounts outstanding under the Debtors’ key executive incentive   program and key employee retention plan authorized to be paid as of the   Effective Date pursuant to an order of the Bankruptcy Court or otherwise, including,   without limitation, any and all amounts that are outstanding or will become   outstanding as a result of any “change of control” or similar transaction,   shall be paid from Plan Cash. ARTICLE XI. CONDITIONS PRECEDENT TO   CONSUMMATION OF THE PLAN 11.1.Conditions Precedent to the Effective Date. The   occurrence of the Effective Date is subject to: (a) the RSA not having been   terminated and remaining in full force and effect and the PFA Order having   become a Final Order and remaining in full force and effect; provided that a   termination as to a breaching Consenting Lender, where the termination occurs   only as to such Consenting Lender and the RSA remains in full force and   effect with respect to the other parties, shall not mean the RSA has been   terminated or is not in full force and effect for purposes of this paragraph;   (b) the Plan Funding Agreement not having been terminated and remaining in   full force and effect and the transactions contemplated thereunder having   been substantially consummated as of the Effective Date; (c) the Rights   Offering having been consummated and the Backstop Commitment Agreement not   having been terminated and remaining in full force and effect; (d) the   Disclosure Statement Order, in form and substance Acceptable to the Debtors and   each of the Required Parties, having been entered by the Bankruptcy Court and   remaining in full force and effect; (e) the Confirmation Order, in form and   substance Acceptable to the Debtors and each of the Required Parties, having   become a Final Order and remaining in full force and effect; (f) all fees and   expenses then due and payable or owed by the Debtors under the Plan Funding   Agreement, the PFA Order, the RSA and the Backstop Commitment Agreement   having been paid; 50 

    

 

(g) the Convertible   Notes Trustee Professional Fees shall have been paid in full in Cash; (h) any   non-technical and/or immaterial amendments, modifications or supplements to   the Plan being Acceptable to the Debtors and each of the Required Parties,   except as otherwise provided in Section 14.5 of this Plan; and (k) all   actions and all agreements, instruments or other documents necessary to   implement the terms and provisions of this Plan, including, without   limitation, the Plan Funding Agreement and the other documents included in   the Plan Supplement, in form and substance Acceptable to the Debtors and each   of the Required Parties as set forth in the RSA, the Plan Funding Agreement,   and herein, to be entered into by the applicable Debtors being executed and   delivered, and any conditions (other than the occurrence of the Effective   Date or certification by a Debtor that the Effective Date has occurred)   contained therein having been satisfied or waived in accordance therewith.   11.2.Satisfaction and Waiver of Conditions Precedent. Except as otherwise   provided herein, any actions taken on the Effective Date shall be deemed to   have occurred simultaneously and no such action shall be deemed to have   occurred prior to the taking of any other such action. Any of the conditions   set forth in Sections 11.1 of this Plan may be waived in whole or part upon   agreement by the Debtors and each of the Required Parties, and as the case   may be, without notice and a hearing, and the Debtors’ benefits under any   “mootness” doctrine, but only to the extent applicable, shall be unaffected   by any provision hereof. The failure to assert the non-satisfaction of any   such conditions shall not be deemed a waiver of any other rights hereunder,   and each such right shall be deemed an ongoing right that may be asserted or   waived (as set forth herein) at any time or from time to time. 11.3.Effect of   Failure of Conditions. If all of the conditions to effectiveness have not   been satisfied (as provided in Section 11.1 hereof) or duly waived (as   provided in Section 11.2 hereof) and the Effective Date has not occurred on   or before the Outside Date (as defined in the Plan Funding Agreement) or,   subject to the parties’ rights under the RSA and the Plan Funding Agreement,   by such later date as set forth by the Debtors in a notice filed with the   Bankruptcy Court prior to the expiration of such period, then the Debtors or   any of the Required Parties may file a motion to vacate the Confirmation   Order. Notwithstanding the filing of such a motion, the Confirmation Order   shall not be vacated if all of the conditions to consummation set forth in   Section 11.1 hereof are either satisfied or duly waived by the Debtors and   the Required Parties before the Bankruptcy Court enters an order granting the   relief requested in such motion. If the Confirmation Order is vacated   pursuant to this Section 11.3, this Plan shall be null and void in all   respects, the Confirmation Order shall be of no further force or effect, no   Plan Distributions shall be made, the Debtors, the Plan Investor, and all   holders of Claims and Interests shall be restored to the status quo ante as   of the day immediately preceding the Confirmation Date as though the   Confirmation Date had never occurred (except that the Plan Investor, or any   of its designees, shall retain its rights to the extent provided under the   Transaction Documents), and upon such occurrence, nothing contained in this   Plan shall: (a) constitute a waiver or release of any Claims against or   Interests in the 51 

    

 

Debtors; (b)   prejudice in any manner the rights of the Plan Investor or the holder of any   Claim against or Interest in the Debtors; or (c) constitute an admission,   acknowledgment, offer or undertaking by any Debtor or any other Person with   respect to any matter set forth in the Plan. ARTICLE XII. EFFECT OF   CONFIRMATION 12.1.Binding Effect. Except as otherwise provided in section   1141(d)(3) of the Bankruptcy Code and subject to the occurrence of the   Effective Date, on and after the Confirmation Date, the provisions of this   Plan shall bind any holder of a Claim against, or Interest in, the Debtors   and inure to the benefit of and be binding on such holder’s respective   successors and assigns, whether or not the Claim or Interest of such holder   is impaired under this Plan and whether or not such holder has accepted this   Plan. 12.2.Discharge of Claims Against and Interests in the Debtors. Upon the   Effective Date and in consideration of the Plan Distributions, if any, except   as otherwise provided herein or in the Confirmation Order, each Person that   is a holder (as well as any trustees and agents for or on behalf of such   Person) of a Claim or Interest shall be deemed to have forever waived,   released, and discharged the Debtors, to the fullest extent permitted by   section 1141 of the Bankruptcy Code, of and from any and all Claims,   Interests, rights and liabilities that arose prior to the Effective Date.   Except as otherwise provided herein, upon the Effective Date, all such   holders of Claims and Interests shall be forever precluded and enjoined,   pursuant to sections 105, 524 and 1141 of the Bankruptcy Code, from   prosecuting or asserting any such discharged Claim against or terminated   Interest in any Debtor, any Reorganized Debtor. For the avoidance of doubt,   ancillary security enforcement, insolvency processes and/or other proceedings   may be deployed in any relevant jurisdictions to implement the transactions   set out in this Plan, including this Plan’s discharge provisions, in order to   ensure that they are fully effective. 12.3.Term of Pre-Confirmation   Injunctions or Stays. Unless otherwise provided herein, all injunctions or   stays provided in the Chapter 11 Cases arising prior to the Confirmation Date   in accordance with sections 105 or 362 of the Bankruptcy Code, or otherwise,   and in existence on the Confirmation Date, shall remain in full force and   effect until the Effective Date. 12.4.Injunction Against Interference with   the Plan. Upon the entry of the Confirmation Order, all holders of Claims and   Interests and other Persons, along with their respective present or former   affiliates, employees, agents, officers, directors, or principals, shall be   enjoined from taking any actions, whether in the United States or elsewhere,   to interfere with the implementation or consummation of this Plan. Moreover,   solely to the extent provided in this Plan or under applicable law, the   property dealt with by this Plan is transferred to, or vests in (or both, as   applicable) the Reorganized Debtors 52 

    

 

free and clear   of all Claims and Interests pursuant to section 1141(c) of the Bankruptcy   Code. As such, to the fullest extent permissible under applicable law, no   Person holding a Claim or Interest may receive any payment from, or seek   recourse against, any assets that are to be distributed under this Plan other   than assets required to be distributed to that Person under this Plan. As of   the Confirmation Date, subject to the occurrence of the Effective Date, to   the fullest extent permissible under applicable law, all Persons are   precluded and barred from asserting against any property to be distributed   under this Plan any Claims, rights, Causes of Action, liabilities, Interests,   or other action or remedy based on any act, omission, transaction, or other   activity that occurred before the Confirmation Date except as expressly   provided in this Plan or the Confirmation Order. Each of the Reorganized   Debtors, as applicable, is expressly authorized hereby to seek to enforce   such injunction. 12.5.Injunction. Except as otherwise provided in this Plan,   including Section 12.8, or the Confirmation Order, as of the Confirmation   Date, but subject to the occurrence of the Effective Date, all Persons who   have held, hold or may hold Claims against or Interests in the Debtors or the   Estates are, with respect to any such Claims or Interests, permanently   enjoined after the Confirmation Date from: (i) commencing, conducting or   continuing in any manner, directly or indirectly, any suit, action or other   proceeding of any kind (including any proceeding in a judicial, arbitral,   administrative or other forum) against the Released Parties, the Reorganized   Debtors, the Estates or any of their property, wherever located, or any   direct or indirect transferee of any property, wherever located, of, or   direct or indirect successor in interest to, any of the foregoing Persons or   any property, wherever located, of any such transferee or successor, on   account of or in connection with or with respect to any released, settled,   compromised, or exculpated Claims, Interests or Causes of Action arising   against the Debtors and/or their Estates; (ii) enforcing, levying, attaching   (including any pre-judgment attachment), collecting or otherwise recovering   by any manner or means, whether directly or indirectly, any judgment, award,   decree or order against the Released Parties, the Reorganized Debtors, the   Estates or any of their property, wherever located, or any direct or indirect   transferee of any property, wherever located, of, or direct or indirect   successor in interest to, any of the foregoing Persons, or any property,   wherever located, of any such transferee or successor, on account of or in   connection with or with respect to any released, settled, compromised, or   exculpated Claims, Interests or Causes of Action arising against the Debtors   and/or their Estates; (iii) creating, perfecting or otherwise enforcing in   any manner, directly or indirectly, any encumbrance of any kind against the   Released Parties, the Reorganized Debtors, or the Estates or any of their   property, wherever located, or any direct or indirect transferee of any   property, wherever located, of, or successor in interest to, any of the   foregoing Persons, on account of or in connection with or with respect to any   released, settled, compromised, or exculpated Claims, Interests or Causes of   Action arising against the Debtors and/or their Estates; (iv) acting or   proceeding in any manner, in any place whatsoever, that does not conform to   or comply with the provisions of this Plan to the full extent permitted by   applicable law; and (v) commencing or continuing, in any manner or in any   place, any action that does not comply with or is inconsistent with the   provisions of this Plan; provided, however, that nothing contained herein   shall preclude such Persons from exercising their rights, or obtaining   benefits, pursuant to and consistent with the terms of this Plan. For the   avoidance of doubt, ancillary security enforcement, insolvency processes   and/or other proceedings may be deployed in any relevant jurisdictions to   implement the transactions set out in this Plan, 53 

    

 

including the   injunctions set forth in this Section 12.5, in order to ensure that they are   fully effective. Each of the Reorganized Debtors, as applicable, is expressly   authorized hereby to seek to enforce such injunction. 12.6.Releases. (a)   Releases by the Debtors. Except as otherwise provided in the Plan or the   Confirmation Order, as of the Effective Date, the Debtors, as, debtors in   possession, and any person seeking to exercise the rights of the Debtors’ Estates,   including without limitation, any successor to the Debtors or any   representative of the Debtors’ Estates appointed or selected pursuant to   sections 1103, 1104 or 1123(b)(3) of the Bankruptcy Code or under chapter 7   of the Bankruptcy Code, shall be deemed to forever release, waive and   discharge all claims (as such term “claim” is defined in section 101(5) of   the Bankruptcy Code), obligations, suits, judgments, damages, demands, debts,   rights, causes of action (including, but not limited to, the Causes of   Action) and liabilities (other than the rights of the Debtors to enforce the   Plan and the contracts, instruments, releases and other agreements or   documents delivered thereunder) against any Released Party, whether   liquidated or unliquidated, fixed or contingent, matured or unmatured, known   or unknown, foreseen or unforeseen, existing or hereafter arising, in law,   equity or otherwise that are based in whole or in part on any act, omission,   transaction, event or other occurrence taking place on or prior to the   Effective Date in any way relating to the Debtors, the Reorganized Debtors,   the purchase, sale or rescission of the purchase or sale of any security of   the Debtors, the subject matter of, or the transactions or events giving rise   to, any Claim or Interest that is treated in the Plan, the parties released   pursuant to this Section 12.6, the Chapter 11 Cases, the RSA, the DIP   Financing Agreement, the Plan Funding Agreement, or this Plan or the   Disclosure Statement, and that could have been asserted by or on behalf of   the Debtors or their Estates, whether directly, indirectly, derivatively or   in any representative or any other capacity; provided, however, that in no   event shall anything in this Section 12.06(a) be construed as a release of   any Person’s gross negligence, fraud, or willful misconduct, each as   determined by a Final Order, for matters with respect to the Debtors and/or   their affiliates. Entry of the Confirmation Order shall constitute the   Bankruptcy Court’s approval, pursuant to Bankruptcy Rule 9019, of the   releases herein, which includes by reference each of the related provisions   and definitions contained herein, and further, shall constitute the   Bankruptcy Court’s finding that the releases herein are: (1) in exchange for   the good and valuable consideration provided by the Released Parties; (2) a   good faith settlement and compromise of the claims released by the releases   herein; (3) in the best interests of the Debtors and all holders of Claims   and Interests; (4) fair, equitable and reasonable; (5) given and made after   reasonable investigation by the Debtors and after notice and opportunity for   hearing; and (6) a bar to any of the Debtors asserting any claim released by   the releases herein against any of the Released Parties. (b) Third Party Releases.   Except as otherwise provided in the Plan, the Plan Funding Agreement or the   Confirmation Order, on the Effective Date each Releasing Party, in   consideration for the obligations of the Debtors under the Plan, the   distributions under the Plan and other contracts, instruments, releases,   agreements or documents executed and delivered in connection with the Plan,   will be deemed to have consented to the Plan and the restructuring embodied   herein for all purposes and deemed to forever release, waive and discharge   all claims (as such term is defined in section 101(5) of the Bankruptcy   Code), including but not limited to any claim sounding in law or equity or   asserting a tort, breach of any duty or contract, violations 54 

    

 

of the common   law, any federal or state statute, any federal or state securities laws or   otherwise, demands, debts, rights, causes of action (including without   limitation, the Causes of Action) or liabilities (other than the right to   enforce the obligations of any party under the Plan and the contracts,   instruments, releases, agreements and documents delivered under or in   connection with the Plan), including, without limitation, any claims for any   such loss such holder may suffer, have suffered or be alleged to suffer as a   result of the Debtors commencing the Chapter 11 Cases or as a result of the   Plan being consummated, against any Released Party, whether liquidated or   unliquidated, fixed or contingent, matured or unmatured, known or unknown,   foreseen or unforeseen, existing or hereafter arising, in law, equity or   otherwise that are based in whole or in part on any act or omission,   transaction, event or other occurrence taking place on or prior to the   Effective Date in any way relating to the Debtors, the Reorganized Debtors,   the Chapter 11 Cases, the Plan or the Disclosure Statement; provided,   however, that in no event shall anything in this Section 12.06(b) be   construed as a release of any Person’s gross negligence, fraud, or willful   misconduct, each as determined by a Final Order, for matters with respect to   the Debtors and/or their affiliates. Entry of the Confirmation Order shall   constitute the Bankruptcy Court’s approval, pursuant to Bankruptcy Rule 9019,   of the releases of holders of Claims and Interests, which includes by   reference each of the related provisions and definitions contained herein,   and further, shall constitute the Bankruptcy Court’s finding that the   releases herein are: (1) in exchange for the good and valuable consideration   provided by the Released Parties; (2) a good faith settlement and compromise   of the claims herein; (3) in the best interests of the Debtors and all   holders of Claims and Interests; (4) fair, equitable and reasonable; (5)   given and made after notice and opportunity for hearing; and (6) a bar to any   holder of a Claim or Interest asserting any Claim released by the releases   herein against any of the Released Parties. (c) Notwithstanding anything to   the contrary contained herein: (i) except to the extent permissible under applicable   law, as such law may be extended or interpreted subsequent to the Effective   Date, the releases provided for in this Section 12.06 of the Plan shall not   release any non-Debtor entity from any liability arising under (a) the   Internal Revenue Code or any state, city or municipal tax code, (b) any   criminal laws of the United States or any state, city or municipality, or (c)   any environmental laws of the United States or any state, city or municipal   tax code; and (ii) the releases set forth in this Section 12.06 shall not   release any (a) claims, right, or Causes of Action for money borrowed from or   owed to the Debtors by any of their directors, officers or former employees,   as set forth in the Debtors’ books and records, (b) any claims against any   Person to the extent such Person asserts a crossclaim, counterclaim and/or   claim for setoff which seeks affirmative relief against a Debtor or any of   its officers, directors, or representatives, (c) claims against any Person   arising from or relating to such Person’s gross negligence, fraud, or willful   misconduct, each as determined by a Final Order of the Bankruptcy Court, and   (d) any Unimpaired Claims unless and until holders of Unimpaired Claims have   received payment on account of such Claims that render such claims Unimpaired   in accordance with the Plan. (d) Notwithstanding any language to the contrary   contained in this Plan, the Disclosure Statement, and/or the Confirmation   Order, no provision of the Plan or the Confirmation Order shall (i) preclude   the United States Securities and Exchange Commission (the “SEC”) from   enforcing its police or regulatory powers; or (ii) enjoin, limit, impair, or   delay the SEC from commencing or continuing any claims, causes of action,   proceedings or investigations against any non-Debtor person or non-Debtor   entity in any forum. 55 

    

 

(e) As to any   Governmental Unit (as defined in section 101(27) of the Bankruptcy Code),   nothing in the Plan, Plan Documents, or Confirmation Order shall limit or   expand the scope of discharge, release or injunction to which the Debtors or   Reorganized Debtors are entitled under the Bankruptcy Code, if any. The   discharge, release, and injunction provisions contained in the Plan, Plan   Documents, or Confirmation Order are not intended and shall not be construed   to bar any Governmental Unit from, subsequent to the Confirmation Order,   pursuing any police or regulatory action. Accordingly, notwithstanding   anything contained in the Plan, Plan Documents, or Confirmation Order to the   contrary, nothing in the Plan or Confirmation Order shall discharge, release,   impair or otherwise preclude: (1) any liability to any Governmental Unit that   is not a “claim” within the meaning of section 101(5) of the Bankruptcy Code;   (2) any Claim of any Governmental Unit arising on or after the Confirmation   Date; (3) any valid right of setoff or recoupment of any Governmental Unit   against any of the Debtors; or (4) any liability of the Debtors or   Reorganized Debtors under police or regulatory statutes or regulations to any   Governmental Unit as the owner, lessor, lessee or operator of property that   such entity owns, operates or leases after the Confirmation Date. Nor shall   anything in the Plan, Plan Documents, or Confirmation Order: (i) enjoin or   otherwise bar any Governmental Unit from asserting or enforcing, outside the   Bankruptcy Court, any liability described in the preceding sentence; or (ii)   divest any court, commission, or tribunal of jurisdiction to determine   whether any liabilities asserted by any Governmental Unit are discharged or   otherwise barred by the Plan, Plan Documents, Confirmation Order, or the   Bankruptcy Code. Moreover, nothing in the Plan, Plan Documents, or   Confirmation Order shall release or exculpate any non-debtor, including any   Released Parties and/or exculpated parties, from any liability to any   Governmental Unit, including but not limited to any liabilities arising under   the Internal Revenue Code, the environmental laws, or the criminal laws   against the Released Parties and/or exculpated parties, nor shall anything in   the Plan, Plan Documents, or Confirmation Order enjoin any Governmental Unit   from bringing any claim, suit, action or other proceeding against any   non-Debtor for any liability whatsoever; provided, however, that the   foregoing sentence shall not limit the scope of discharge granted to the   Debtors under sections 524 and 1141 of the Bankruptcy Code. Nothing contained   in the Plan, Plan Documents, or Confirmation Order shall be deemed to   determine the tax liability of any person or entity, including but not   limited to the Debtors and the Reorganized Debtors, nor shall the Plan, Plan   Documents, or Confirmation Order be deemed to have determined the federal   and/or state tax treatment of any item, distribution, or entity, including   the federal and/or state tax consequences of the Plan and/or Plan Documents,   nor shall anything in the Plan, Plan Documents, or Confirmation Order be   deemed to have conferred jurisdiction upon the Bankruptcy Court to make   determinations as to federal and/or state tax liability and federal and/or   state tax treatment except as provided under 11 U.S.C. § 505. Article X of   the Plan regarding Executory Contracts and Unexpired Leases, and Section 7.8   of the Plan regarding Cancellation of Existing Securities and Agreements,   shall not apply to the Government Settlement Agreements. The Government   Settlement Agreements shall be unimpaired by the Plan, Plan Documents, and   Confirmation Order, and shall remain 56 

    

 

obligations of   the Debtors and/or the Reorganized Debtors, and all rights, obligations, and   duties under the Government Settlement Agreements shall be preserved as if   the Debtors’ bankruptcy cases were never filed. All Governmental Units   reserve all rights with respect to the Government Settlement Agreements, and   nothing contained in the Plan, Plan Documents, or Confirmation Order shall   discharge, release, impair, or otherwise preclude any liability to any   Governmental Unit arising from or relating to the Government Settlement   Agreements. Any amounts owed to Governmental Units under the Government   Settlement Agreements shall be paid in full when due in the ordinary course   and nothing in the Plan, Plan Documents, or Confirmation Order shall be   interpreted to set cure amounts, authorize the assignment or rejection of any   Government Settlement Agreement, or require any Governmental Unit to approve   of and consent to the assignment of any Government Settlement Agreement. The   Debtors and Reorganized Debtors expressly agree that any provisions regarding   default in the Government Settlement Agreements shall continue to apply as   set forth in those agreements, irrespective of any provisions of the Plan,   Plan Documents, and Confirmation Order. For the avoidance of doubt, nothing   contained in the Plan, Plan Documents, or Confirmation Order shall divest any   court, commission, or tribunal of jurisdiction over any matters related to   the Government Settlement Agreements, or confer on the Bankruptcy Court   jurisdiction over any matter related to the Government Settlement Agreements.   Notwithstanding anything to the contrary in this paragraph, the provisions of   this paragraph are subject to the provisions of Section 5.5 of the Plan   regarding acceleration or increase of the monetary obligations under the   Government Settlement Agreements. 12.7.Exculpation and Limitation of   Liability. To the extent permissible under section 1125(e) of the Bankruptcy   Code, on the Effective Date, for good and valuable consideration, to the   maximum extent permissible under applicable law, including the New York Rules   of Professional Conduct, none of the Released Parties shall have or incur any   liability to any holder of any Claim or Interest or any other Person for any   act or omission in connection with, or arising out of the negotiation, implementation   and execution of this Plan, the Chapter 11 Cases, the RSA, the Plan Funding   Agreement, the Disclosure Statement, the DIP Financing Agreement, the   solicitation of votes for and the pursuit of confirmation of this Plan, the   consummation of this Plan, or the administration of this Plan or the property   to be distributed under this Plan, including all documents ancillary thereto,   all decisions, actions, inactions and alleged negligence or misconduct   relating thereto and all activities leading to the promulgation and   confirmation of this Plan except for gross negligence or willful misconduct,   each as determined by a Final Order of the Bankruptcy Court. For purposes of   the foregoing, it is expressly understood that any act or omission effected   with the approval of the Bankruptcy Court conclusively will be deemed not to   constitute gross negligence, or willful misconduct unless the approval of the   Bankruptcy Court was obtained by fraud or misrepresentation, and in all   respects, the applicable Persons shall be entitled to rely on the written   advice of counsel with respect to their duties and responsibilities under, or   in connection with, the Chapter 11 Cases, the Plan, and the administration   thereof. Notwithstanding anything to the contrary herein, nothing in the Plan   shall limit the liability of attorneys to their respective clients pursuant   to Rule 1.8(h) of the New York Rules of Professional Conduct. 57 

    

 

12.8.Injunction   Related to Releases and Exculpation. The Confirmation Order shall permanently   enjoin the commencement or prosecution by any Person, whether directly,   derivatively or otherwise, of any claims, obligations, suits, judgments,   damages, demands, debts, rights, Causes of Action or liabilities released   pursuant to this Plan, including the claims, obligations, suits, judgments,   damages, demands, debts, rights, Causes of Action or liabilities released in   or encompassed by Sections 12.6 and 12.7 of this Plan. Each of the   Reorganized Debtors, as applicable, is expressly authorized hereby to seek to   enforce such injunction. 12.9.Retention of Causes of Action/Reservation of   Rights. Subject to Sections 12.6, 12.7 and 12.8 of this Plan and except as   expressly set forth herein, nothing contained in this Plan or the   Confirmation Order shall be deemed to be a waiver or relinquishment of any   rights, claims or Causes of Action, rights of setoff, or other legal or   equitable defenses that the Debtors had immediately prior to the Effective   Date on behalf of the Estates or of themselves in accordance with any   provision of the Bankruptcy Code or any applicable non-bankruptcy law.   Subject to Sections 12.6, 12.7 and 12.8 of this Plan and except as expressly   set forth herein, the Reorganized Debtors shall have, retain, reserve, and be   entitled to assert all such claims, Causes of Action, rights of setoff, or   other legal or equitable defenses as fully as if the Chapter 11 Cases had not   been commenced, and all of the Debtors’ legal and/or equitable rights   respecting any Claim left unimpaired, as set forth in Articles IV and V of   this Plan, may be asserted after the Confirmation Date to the same extent as   if the Chapter 11 Cases had not been commenced. 12.10. Indemnification   Obligations. Notwithstanding anything to the contrary contained in this Plan,   including Section 10.1 of this Plan, subject to the occurrence of the   Effective Date, the existing obligations of the Debtors to indemnify, defend,   reimburse, exculpate, advance fees and expenses to, or limit the liability of   directors, officers or employees as of the Petition Date who were directors,   officers or employees of any of the Debtors, or any of the Debtors’   non-Debtor subsidiaries, solely in their capacity as such, at any time after   the Petition Date (whether or not also an officer, director or employee of   Novelion), against any Causes of Action, remain unaffected thereby after the   Effective Date and are not discharged. On and after the Effective Date, none   of the Reorganized Debtors shall terminate or otherwise reduce the coverage   under any directors’ and officers’ insurance policies in effect on the   Petition Date, and all directors and officers of the Debtors, regardless of   whether such person was a director or officer of the Debtors as of the   Petition Date shall be entitled to the full benefits of any such policy (to   the extent such director or officer is entitled to any benefits thereunder)   for the full term of such policy, but solely to the extent, and as provided   in, each such policy regardless of whether such directors and/or officers   remain in such positions after the Effective Date. For the avoidance of   doubt, all obligations of the Debtors to indemnify, defend, reimburse,   exculpate, advance fees and expenses to, or limit the liability of former   directors, officers or employees who were not directors, officers or   employees of any of the Debtors or any of the Debtors’ non-Debtor   subsidiaries at any time after the Petition Date, against any Causes of   Action, are classified as Other General Unsecured Claims and shall be   discharged on the Effective Date. 58 

    

 

ARTICLE XIII.   RETENTION OF JURISDICTION Pursuant to sections 105 and 1142 of the Bankruptcy   Code and notwithstanding entry of the Confirmation Order and the occurrence   of the Effective Date, on and after the Effective Date, the Bankruptcy Court   shall retain exclusive jurisdiction, pursuant to 28 U.S.C. §§ 1334 and 157,   over all matters arising in, arising under, or related to the Chapter 11   Cases for, among other things, the following purposes: (a) To hear and   determine applications for the assumption or rejection of executory contracts   or unexpired leases and the Cure Disputes resulting therefrom; (b) To   determine any motion, adversary proceeding, application, contested matter,   and other litigated matter pending on or commenced after the Confirmation   Date; (c) To hear and resolve any disputes arising from or relating to (i)   any orders of the Bankruptcy Court granting relief under Bankruptcy Rule   2004, or (ii) any protective orders entered by the Bankruptcy Court in   connection with the foregoing; (d) To ensure that Plan Distributions to   holders of Allowed Claims are accomplished as provided herein; (e) To   consider Claims or the allowance, classification, priority, compromise,   estimation, or payment of any Claim, including any Administrative Expense   Claim; (f) To enter, implement, or enforce such orders as may be appropriate   in the event the Confirmation Order is for any reason stayed, reversed,   revoked, modified or vacated; (g) To issue and enforce injunctions, enter and   implement other orders, and take such other actions as may be necessary or   appropriate to restrain interference by any Person with the consummation,   implementation, or enforcement of this Plan, the Confirmation Order, or any   other order of the Bankruptcy Court; (h) To hear and determine any application   to modify this Plan in accordance with section 1127 of the Bankruptcy Code,   to remedy any defect or omission or reconcile any inconsistency in this Plan,   the Disclosure Statement, or any order of the Bankruptcy Court, including the   Confirmation Order, in such a manner as may be necessary to carry out the   purposes and effects thereof; (i) To hear and determine all Fee Claims; (j)   To hear and determine disputes arising in connection with the interpretation,   implementation, or enforcement of this Plan, the Confirmation Order, any   transactions or payments contemplated hereby, or any agreement, instrument,   or other document governing or relating to any of the foregoing; 59 

    

 

(k) To take any   action and issue such orders, including any such action or orders as may be   necessary after occurrence of the Effective Date and/or consummation of the   Plan, as may be necessary to construe, enforce, implement, execute, and   consummate this Plan, including any release or injunction provisions set forth   herein, or to maintain the integrity of this Plan following consummation; (l)   To determine such other matters and for such other purposes as may be   provided in the Confirmation Order; (m) To hear and determine all disputes   involving the existence, nature or scope of the discharge, releases and   injunction provisions contained in the Plan; (n) To hear and determine   matters concerning state, local and federal taxes in accordance with sections   346, 505, and 1146 of the Bankruptcy Code; (o) To hear and determine any   other matters related hereto and not inconsistent with the Bankruptcy Code   and title 28 of the United States Code; (p) To resolve any disputes   concerning whether a Person had sufficient notice of the Chapter 11 Cases,   the Disclosure Statement Hearing, the Confirmation Hearing, any applicable   Bar Date, or the deadline for responding or objecting to a Cure Amount, for   the purpose of determining whether a Claim or Interest is discharged   hereunder, or for any other purpose; (q) To recover all assets of the Debtors   and property of the Estates, wherever located; and (r) To enter a final   decree closing each of the Chapter 11 Cases. If the Bankruptcy Court abstains   from exercising, or declines to exercise, jurisdiction or is otherwise   without jurisdiction over any matter arising in, arising under, or related to   the Chapter 11 Cases, the provisions of this Article XIII shall have no   effect on and shall not control, limit, or prohibit the exercise of   jurisdiction by any other court having competent jurisdiction with respect to   such matter. ARTICLE XIV. MISCELLANEOUS PROVISIONS 14.1.Exemption from   Certain Transfer Taxes. To the fullest extent permitted by applicable law,   all sale transactions consummated by the Debtors and approved by the   Bankruptcy Court on and after the Confirmation Date through and including the   Effective Date, including any transfers effectuated under this Plan, the sale   by the Debtors of any owned property pursuant to section 363(b) of the   Bankruptcy Code, and any assumption, assignment, and/or sale by the Debtors   of their interests in unexpired leases of non-residential real property or   executory contracts pursuant to section 365(a) of the Bankruptcy Code, shall   constitute a “transfer under a plan” within the purview of 60 

    

 

section 1146 of   the Bankruptcy Code, and shall not be subject to any stamp, real estate   transfer, mortgage recording, or other similar tax. 14.2.Retiree Benefits. On   and after the Effective Date, pursuant to section 1129(a)(13) of the   Bankruptcy Code, the Reorganized Debtors shall continue to pay all retiree   benefits (within the meaning of, and subject to the limitations of, section   1114 of the Bankruptcy Code), if any, at the level established in accordance   with section 1114 of the Bankruptcy Code, at any time prior to the   Confirmation Date, for the duration of the period for which any applicable   Debtor had obligated itself to provide such benefits. Nothing herein shall:   (a) restrict the Debtors’ or the applicable Reorganized Debtors’ right to   modify the terms and conditions of the retiree benefits, if any, as otherwise   permitted pursuant to the terms of the applicable plans, non-bankruptcy law,   or section 1114(m) of the Bankruptcy Code; or (b) be construed as an   admission that any such retiree benefits are owed by the Debtors.   14.3.Dissolution of Creditors’ Committee. The Committee shall be   automatically dissolved on the Effective Date and all members, employees or   agents thereof shall be released and discharged from all rights and duties   arising from, or related to, the Chapter 11 Cases, provided that the   Committee and its professionals shall have the right to file, prosecute,   review, and object to any applications for compensation and reimbursement of   expenses filed in accordance with Section 3.3 hereof. 14.4.Termination of   Professionals. On the Effective Date, the engagement of each Professional   Person retained by the Debtors and the Creditors’ Committee shall be   terminated without further order of the Bankruptcy Court or act of the   parties; provided, however, such Professional Persons shall be entitled to   prosecute their respective Fee Claims and represent their respective   constituents with respect to applications for allowance and payment of such   Fee Claims, and the Reorganized Debtors shall be responsible for the   reasonable and documented fees, costs and expenses associated with the   prosecution of such Fee Claims. Nothing herein shall preclude any Reorganized   Debtor from engaging a former Professional Person on and after the Effective   Date in the same capacity as such Professional Person was engaged prior to   the Effective Date. 14.5.Amendments. This Plan may be amended, modified, or   supplemented by the Debtors, subject to the parties’ rights under the RSA and   the Plan Funding Agreement, in the manner provided for by section 1127 of the   Bankruptcy Code or as otherwise permitted by law, without additional   disclosure pursuant to section 1125 of the Bankruptcy Code, except as   otherwise ordered by the Bankruptcy Court. In addition, after the   Confirmation Date, so long as such action does not adversely affect the Plan   Investor or the treatment of holders of Allowed Claims pursuant to this Plan,   the Debtors may make appropriate technical adjustments, remedy any defect or   omission or reconcile any inconsistencies in this Plan, the Plan Documents   and/or the Confirmation Order, with respect to such matters as may be   necessary to carry out the purposes and effects of this Plan, and any holder   of a Claim that has accepted this Plan shall be deemed to have accepted this   61 

    

 

Plan as   amended, modified, or supplemented. The Debtors may make such technical   adjustments and modifications to this Plan without further order or approval   of the Bankruptcy Court; provided, however, that, such technical adjustments   and modifications are immaterial or do not adversely affect the Plan Investor   or the treatment of holders of Claims or Interests under the Plan.   14.6.Revocation or Withdrawal of this Plan. Subject to the parties’ rights   under the RSA and the Plan Funding Agreement, the Debtors reserve the right   to revoke or withdraw this Plan prior to the Effective Date. If the Debtors   revoke or withdraw this Plan, in accordance with the preceding sentence,   prior to the Effective Date as to any or all of the Debtors, or if   confirmation or consummation as to any or all of the Debtors does not occur,   then, with respect to such Debtors: (a) this Plan shall be null and void in   all respects; (b) any settlement or compromise embodied in this Plan   (including the fixing or limiting to an amount of any Claim or Interest or   Class of Claims or Interests), assumption or rejection of executory contracts   or leases affected by this Plan, and any document or agreement executed   pursuant to this Plan shall be deemed null and void, provided, however, that   the Plan Investor, or any of its designees, shall retain its rights to the   extent provided under the Transaction Documents; and (c) nothing contained in   this Plan shall (i) constitute a waiver or release of any Claims by or   against, or any Interests in, such Debtors or any other Person, (ii)   prejudice in any manner the rights of such Debtors or any other Person or   (iii) constitute an admission of any sort by the Debtors or any other Person.   14.7.Allocation of Plan Distributions Between Principal and Interest. To the   extent that any Allowed Claim entitled to a distribution under the Plan   consists of indebtedness and other amounts (such as accrued but unpaid   interest thereon), such distribution shall be allocated first to the   principal amount of the Claim (as determined for federal income tax purposes)   and then, to the extent the consideration exceeds the principal amount of the   Claim, to such other amounts. 14.8.Severability. If, prior to the entry of   the Confirmation Order, any term or provision of this Plan is held by the   Bankruptcy Court to be invalid, void, or unenforceable, the Bankruptcy Court,   at the request of the Debtors, shall have the power to alter and interpret   such term or provision to make it valid or enforceable to the maximum extent   practicable, consistent with the original purpose of the term or provision   held to be invalid, void, or unenforceable, and such term or provision shall   then be applicable as altered or interpreted. Notwithstanding any such   holding, alteration, or interpretation, the remainder of the terms and   provisions of this Plan will remain in full force and effect and will in no   way be affected, impaired, or invalidated by such holding, alteration, or   interpretation. The Confirmation Order shall constitute a judicial   determination and shall provide that each term and provision of this Plan, as   it may have been altered or interpreted in accordance with the foregoing, is   valid and enforceable pursuant to its terms. 62 

    

 

14.9.Governing   Law. Except to the extent that the Bankruptcy Code or other U.S. federal law   is applicable, or to the extent a Plan Document or exhibit or schedule to the   Plan provides otherwise, the rights, duties, and obligations arising under   this Plan and the Plan Documents shall be governed by, and construed and   enforced in accordance with, the laws of the State of New York, without   giving effect to the principles of conflict of laws thereof to the extent   such principles would result in the application of the laws of any other   jurisdiction. 14.10. Section 1125(e) of the Bankruptcy Code. The Debtors   have, and upon confirmation of this Plan shall be deemed to have, solicited   acceptances of this Plan in good faith and in compliance with the applicable   provisions of the Bankruptcy Code, and the Debtors (and each of their   respective affiliates, agents, directors, officers, employees, advisors, and   attorneys) participated in good faith and in compliance with the applicable   provisions of the Bankruptcy Code in the offer, issuance, sale, solicitation   and/or purchase of the securities offered and sold under this Plan, and   therefore are not, and on account of such offer, issuance, sale,   solicitation, and/or purchase will not be, liable at any time for the   violation of any applicable law, rule, or regulation governing the   solicitation of acceptances or rejections of this Plan or offer, issuance,   sale, or purchase of the securities offered and sold under this Plan. 14.11.   Inconsistency. In the event of any inconsistency among the Plan, the   Disclosure Statement, the Plan Documents (other than the Plan Funding   Agreement), the RSA, any exhibit to the Plan or any other instrument or   document created or executed pursuant to the Plan, the provisions of the Plan   shall govern; provided, however, that the Plan Funding Agreement shall   control and take precedence in the event of any inconsistency between the   Plan Funding Agreement, any provision of this Plan, and any of the foregoing   documents; provided, further, however, that the parties to the Plan Funding   Agreement and the RSA shall use commercially reasonable efforts to eliminate   any such inconsistency by agreement prior to the provisions of this section   becoming applicable and enforceable. 14.12. Time. In computing any period of   time prescribed or allowed by this Plan, unless otherwise set forth herein or   determined by the Bankruptcy Court, the provisions of Bankruptcy Rule 9006   shall apply. 14.13. Exhibits. All exhibits to this Plan (including, without   limitation, the Plan Documents, all documents filed with the Plan Supplement,   and the Plan Funding Agreement and all exhibits and ancillary agreements   thereto) are incorporated and are a part of this Plan as if set forth in full   herein. 63 

    

 

14.14. Notices.   All notices or requests in connection with the Plan shall be in writing   (including by facsimile or electronic mail transmission) and, unless   otherwise provided herein, shall be deemed to have been duly given or made   only when actually delivered or, in the case of notice by facsimile or   electronic mail transmission, when received and telephonically confirmed,   addressed as follows: Aegerion Pharmaceuticals, Inc. 245 First Street   Riverview II, 18th Floor Cambridge, MA 02142 Attention: John R. Castellano   Email: JCastellano@alixpartners.com with a copy to: Willkie Farr &   Gallagher LLP 787 Seventh Avenue New York, NY 10019 Attention: Paul V.   Shalhoub, Esq. and Andrew S. Mordkoff, Esq. Email: pshalhoub@willkie.com;   amordkoff@willkie.com Facsimile: (212) 728-8111 Counsel to the Debtors 14.15.   Filing of Additional Documents. On or before substantial consummation of the   Plan, the Debtors shall file with the Bankruptcy Court such agreements and   other documents as may be necessary or appropriate to effectuate and further   evidence the terms and conditions of the Plan. 14.16. Reservation of Rights.   Except as expressly set forth herein, the Plan shall have no force or effect   unless and until the Bankruptcy Court enters the Confirmation Order. None of   the filing of this Plan, any statement or provision contained herein, or the   taking of any action by the Debtors with respect to this Plan shall be or   shall be deemed to be, an admission or waiver of any rights of the Debtors   with respect to any Claims or Interests prior to the Effective Date. 64 

    

 

Dated: July [   ], 2019 New York, New York Respectfully submitted, AEGERION PHARMACEUTICALS,   INC., on behalf of itself and its affiliated Debtors By: Name: John R.   Castellano Title: Chief Restructuring Officer Counsel: WILLKIE FARR &   GALLAGHER LLP Paul V. Shalhoub, Esq. Andrew S. Mordkoff, Esq. 787 Seventh   Avenue New York, NY 10019 (212) 728-8000 Counsel for the Debtors and Debtors   in Possession 

    

 

Schedule 1.81   Government Settlement Agreements The Government Settlement Agreements are   comprised of the following settlement agreements and judgments: (a) Civil   Settlement Agreement, dated September 22, 2017, (b) Indiana State Settlement   Agreement, dated August 21, 2017, (c) Mississippi State Settlement Agreement,   dated August 21, 2017, (d) South Carolina State Settlement Agreement, dated   August 21, 2017, (e) Arizona State Settlement Agreement, dated August 22,   2017, (f) Michigan State Settlement Agreement, dated August 23, 2017, (g) New   Jersey State Settlement Agreement, dated August 23, 2017, (h) Connecticut   State Settlement Agreement, dated August 24, 2017, (i) Georgia State   Settlement Agreement, dated August 24, 2017, (j) Ohio State Settlement   Agreement, dated August 28, 2017, (k) Alabama State Settlement Agreement,   dated August 28, 2017, (l) Illinois State Settlement Agreement, dated August   31, 2017, (m) Florida State Settlement Agreement, dated September 1, 2017,   (n) Tennessee State Settlement Agreement, dated September 1, 2017, (o) New   York State Settlement Agreement, dated September 6, 2017, (p) Pennsylvania   State Settlement Agreement, dated September 6, 2017, (q) Louisiana State   Settlement Agreement, dated September 8, 2017, (r) Iowa State Settlement   Agreement, dated September 12, 2017, (s) Virginia State Settlement Agreement,   dated September 12, 2017, (t) Nebraska State Settlement Agreement, dated   September 13, 2017, (u) West Virginia State Settlement Agreement, dated   September 14, 2017, 

    

 

(v) Colorado   State Settlement Agreement, dated September 18, 2017, (w) Nevada State   Settlement Agreement, dated September 19, 2017, (x) Kentucky State Settlement   Agreement, dated September 20 2017, (y) California State Settlement   Agreement, dated September 21, 2017, (z) Wisconsin State Settlement   Agreement, dated September 21, 2017, (aa) Texas State Settlement Agreement,   dated September 26, 2017, (bb) Missouri State Settlement Agreement, dated   September 27, 2017, (cc) Oklahoma State Settlement Agreement, dated September   28, 2017, (dd) Deferred Prosecution Agreement, dated September 22, 2017, (ee)   Corporate Integrity Agreement, dated September 22, 2017, (ff) Final Judgment,   dated September 25, 2017, (gg) Plea Agreement, dated January 12, 2018, (hh)   Criminal Judgment, dated January 30, 2018, (ii) Consent Decree of Permanent   Injunction, dated March 20, 2019, and (jj) Side Letter Agreement, dated   February 14, 2018. 

    

 

SCHEDULE 1.93   MATERIAL TERMS OF THE NEW CONVERTIBLE NOTES INDENTURE 

    

 

SCHEDULE 1.100   MATERIAL TERMS OF THE NEW TERM LOAN FACILITY

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