Document:

EX-10.1

 Exhibit 10.1 
 CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24(B)(2) OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 
 DISTRIBUTION SERVICES AGREEMENT 

This Distribution Services Agreement (this “Agreement”) dated as of February 14, 2013 (the “Effective Date”), is
made by and between Hyperion Therapeutics, Inc. (the “Company”) and ASD Healthcare, a division of ASD Specialty Healthcare, Inc. (“Distributor”). 

RECITALS 
  

	A.	The Company is a manufacturer and supplier of pharmaceutical products including the product(s) listed on Exhibit A. 

 

	B.	Distributor is a national distributor of blood plasma derivatives, albumin, immune globulins, hyper-immune globulins, anti-hemophilic factors, influenza vaccines and
other specialty pharmaceutical products to hospitals, health system pharmacies and alternate-site practitioners. 

  

	C.	Distributor desires to purchase Product(s) from the Company and become an authorized distributor of the Product(s). 

 

	D.	The Company and Distributor mutually desire to enter into an exclusive supply and distribution agreement in accordance with and pursuant to the terms and conditions set
forth in this Agreement. 

 AGREEMENT 

NOW THEREFORE, in consideration of the mutual promises and obligations contained in this Agreement, the parties agree as follows:

  

	1.	Definitions. For purposes of this Agreement, the following terms have the following meanings: 

“Adverse Event” means any adverse or unexpected event associated with the use of a Product in humans, including (a) an
adverse event occurring in the course of the use of a Product in professional practice, (b) an adverse event occurring from Product overdose, whether accidental or intentional, (c) an adverse event occurring from Product withdrawal,
(d) any significant failure of expected pharmacological action, or (e) any abnormal laboratory result from a sample taken from a human. 
 “Applicable Laws” means all applicable federal, state, and local laws and governmental agency regulations and requirements, including without limitation the Federal Food, Drug, and Cosmetic Act,
HIPAA, the Federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b et seq.), the Public Contracts Anti-Kickback Act (41 U.S.C. § 51 et seq.), the Stark Law (42 U.S.C. § 1395nn), patient confidentiality and privacy laws, and Medicare and
Medicaid laws under Title XVIII and XIX of the Social Security Act. 
 “Confidential Information” has the meaning set
forth in Section 12(a). 
 “Continuing Guaranty” means the Continuing Guaranty and Indemnification Agreement
attached as Exhibit E. 

 “Customer” means any healthcare provider that is authorized under Applicable Laws
to purchase Products, subject to Section 2(c). 
 “Data” has the meaning set forth in Section 12(d).

 “HIPAA” means the Health Insurance Portability and Accountability Act of 1996, Public Law No. 104-191, as
amended, including the Health Information Technology for Economic and Clinical Health Act, and the regulations promulgated pursuant thereto, including but not limited to 45 C.F.R. Parts 160 and 164. 

“Intellectual Property” means any and all patents, trade secrets, know-how, copyrights, trademarks, service marks and trade
dress, applications for the same, and registrations and applications for registration or renewals thereof in the United States and all other nations throughout the world, including without limitation all derivative works, moral rights, renewals,
extensions, reversions or restorations associated with such copyrights, now or hereafter provided by Applicable Laws, regardless of the medium of fixation or means of expression. 

“Launch Date” means the date on which the Company first offers a Product for sale to a Customer in the Territory. 

“List Price” has the meaning set forth in Section 3(a). 

“Minimum Courtesy Billing Service Fee” for a Product means [*] of the [*] of [*] as of its [*]. 

“Minimum Service Fee” for a Product means [*] of the [*] of [*] as of its [*]. 

“Product(s)” means (a) Ravicti (glycerol phenylbutyrate) and (b) upon written notice by the Company pursuant to
Section 2(e)(ii), and subject to Section 2(e)(iii), Buphenyl (sodium phenylbutyrate) tablets and powder and Ammonul (sodium phenylacetate and sodium benzoate) injection 10%/10%. 

“REMS Program” means the Company’s Risk Evaluation and Mitigation Strategies program for the Product Ravicti. 

“Services” has the meaning set forth in Section 5(b). 

“Term” has the meaning set forth in Section 13(a). 

“Territory” has the meaning set forth in Section 2(b)(i). 

 

	2.	Appointment as Authorized Distributor. 

  

	 	(a)	Appointment. The Company will sell the Product(s) to Distributor on the terms and conditions set forth in this Agreement. The Company hereby appoints Distributor
as an authorized distributor of record for the Product during the Term, and subject to Section 13(f), with respect to any Products in Distributor’s possession after the termination or expiration but only for so long as it takes Distributor
to distribute such Products in the ordinary course of its business. The Company will comply with all Applicable Laws requiring it to publicly identify all of its authorized distributors. 

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

  
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	 	(b)	Exclusivity. During the Term: 

  

	 	i.	Sole Distributor and Service Provider. Subject to Section 2(b)(iii), Distributor will be the sole and exclusive reseller of the Products, and the sole
provider of distribution and warehousing functions with respect to the Products, in the United States and its territories and possessions (the “Territory”). 

 

	 	ii.	No Other Distributors or Service Providers. Subject to Section 2(b)(iii), the Company will not sell the Products to any person or entity, other than
Distributor, in the Territory, and will not authorize or permit any person or entity, other than Distributor, to distribute or sell the Products, or to provide distribution and warehousing functions with respect to the Products, in the Territory.

  

	 	iii.	3PL and Customers. Notwithstanding anything to the contrary in this Section 2(b), it shall not be a breach of this Section 2(b) for a third party
logistics provider engaged by the Company that does not take title to the Products to distribute and warehouse the Products, or for any Customers to sell or dispense the Products to patients, in the Territory. 

 

	 	(c)	Resale Only to Customers. Distributor will only resell the Products to Customers, provided that: 

 

	 	i.	Courtesy Billing. Courtesy billing transactions, as described in Section 5(g), do not violate this Section; 

 

	 	ii.	Non-Specialty Pharmacy Customers. Distributor will notify the Company in writing (or by e-mail) upon selling a Product to a non-specialty pharmacy Customer for
the first time, which notice will include the type of Product and the identity of the non-specialty pharmacy Customer; and 

  

	 	iii.	Specialty Pharmacy Customers. Sales to specialty pharmacies are subject to the following provisions: 

 

	 	(A)	Distributor may only resell Products to specialty pharmacies that are approved in writing by the Company; 

 

	 	(B)	as of the Effective Date, [*] are approved as specialty pharmacy Customers; and 

 

	 	(C)	if Distributor desires to sell Products to any other specialty pharmacy, Distributor will submit a request by email to the Company for approval of the specialty
pharmacy, which will not unreasonably withheld or delayed. 

  

	 	(d)	Supply through Third Party. For purposes of this Agreement, where this Agreement provides that the Company will supply Distributor, the Company may do so through
a third party logistics provider that does not take title to the Products. 

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

  
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	 	(e)	Commencement Date. 

  

	 	i.	Ravicti. The parties acknowledge that as of the Effective Date, the Product known as Ravicti has received regulatory approval in the Territory but the Launch
Date has not yet occurred. The parties anticipate that implementation of certain procedures and activities under this Agreement may begin approximately 90 days before the anticipated Launch Date for Ravicti. Distributor will not commence any of its
activities and obligations under this Agreement with respect to Ravicti until receipt of written notice from the Company specific to each such activity or obligation. 

 

	 	ii.	Buphenyl and Ammonul. The parties acknowledge that as of the Effective Date, the Company has not yet acquired rights to the products known as Buphenyl and
Ammonul from Ucyclyd Pharma, Inc. (“Ucyclyd”), as set forth in the Amended and Restated Collaboration Agreement between the Company and Ucyclyd, and that if the Company exercises its rights to acquire commercialization rights for Buphenyl
and Ammonul from Ucyclyd, the Company may elect, in its sole discretion, to include either or both Buphenyl and Ammonul as Product(s) under this Agreement by [*] written notice to Distributor. Distributor will not commence any of its activities and
obligations under this Agreement with respect to Buphenyl and/or Ammonul until receipt of such written notice from the Company specific to each such activity or obligation. 

 

	 	iii.	Omission of Buphenyl and Ammonul. At any time after [*] after the Company elects to include Buphenyl and/or Ammonul as Product(s) under this Agreement, either
party may elect, in its sole discretion, upon [*] written notice to the other party, to omit either or both Buphenyl and Ammonul as Product(s) under this Agreement. 

 

	 	(f)	Subcontracting. Distributor shall not subcontract or otherwise delegate any of its obligations under this Agreement without the Company’s express prior
written consent on a case-by-case basis, which will not be unreasonably withheld or delayed. In the event that the Company grants such consent, Distributor shall enter into a binding written agreement with each such subcontractor that protects the
Company’s rights and interests to at least the same degree as this Agreement, including without limitation that (i) such subcontractor performs in a manner conforming to this Agreement, (ii) such subcontractor enters into a
confidentiality agreement with Distributor no less extensive than required by this Agreement, and (iii) Distributor retains full responsibility and liability for the performance of the subcontracted service. 

 

	3.	Product Pricing and Payment Terms for Distributor. 

  

	 	(a)	Program Pricing. The Company will charge Distributor the list prices set forth on Exhibit A for Products, as may be amended by the Company in its sole
discretion (the “List Price”). The Company will have the unilateral right to enact a List Price change at any time, by distributing a revised Exhibit A showing a different List Price for the Products, effective on a date specified
by the Company. The List Price is exclusive of federal, state and local excise, sales, use and other taxes applied or imposed on the sale, shipment, delivery, ownership, possession or resale of Products or any other activities contemplated under
this Agreement. 

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

  
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	 	(b)	Date of Price. The Company will accept purchase orders at the List Price in effect on the day the order is received. 

 

	 	(c)	Invoicing. The Company will not invoice orders until the applicable order of Product has been shipped to Distributor. 

 

	 	(d)	Terms of Payment. Distributor will pay the Company for all invoices for undisputed orders for Products. Terms for the purchased Product are [*], from the date
Distributor receives the Product, plus four additional float days for payment by electronic funds transfer. The Company reserves the right to withhold any shipments of ordered Product in the event Distributor has any unpaid invoice(s) outstanding
and overdue. Notwithstanding the foregoing, Distributor will not be deemed in default or lose any cash discount by reason of any delay in receipt or non-receipt by the Company of funds transferred by electronic funds transfer if the transfer was
timely initiated by Distributor, unless the delay or non-receipt is the result of the gross negligence or willful misconduct of Distributor. Without Distributor’s prior written consent, the Company will not have the right to debit
Distributor’s account electronically. 

  

	 	(e)	Late Fees. If Distributor fails to pay any invoiced amounts when due, the Company may assess a late fee of 1% per month (or any portion thereof) on such
amounts or, if less, the maximum rate allowed under Applicable Laws. 

  

	 	(f)	Credits. The Company will pay Distributor all compensation due other than for Services (including without limitation, payments, credits, product allocations,
and/or bill-back program amounts) within [*] of the end of the month in which the determination was made that such compensation is owed to Distributor. Exceptions must be resolved with Distributor’s Accounts Payable Department.

  

	 	(g)	Accounts Receivable Statement. Upon Distributor’s request, the Company will provide Distributor with a monthly accounts receivable statement of all open
transactions. 

  

	 	(h)	Costs and Expenses. Except as otherwise expressly set forth herein, Distributor will be responsible for all costs and expenses associated with fulfilling its
obligations under this Agreement. 

  

	4.	Orders, Shipping, Delivery, Title and Risk of Loss. 

  

	 	(a)	Product Purchase. Distributor will purchase Products exclusively from the Company and in accordance with Exhibit A. Distributor will submit purchase
orders to the Company, which orders will be subject to the Company’s acceptance and approval. 

  

	 	(b)	Format of Orders. Distributor will submit Distributor’s orders in the format requested by the Company. Distributor will ensure that each purchase order
identifies (i) the name of the Product; (ii) quantity ordered; (iii) the requested shipment date; and (iv) delivery destination. The Company will accept purchase orders at the List Prices in effect on the day the order is
transmitted. 

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

  
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	 	(c)	Minimum Orders; Inventory Minimums. The Company and Distributor will set mutually agreeable minimum purchase order amounts. Distributor will order sufficient
quantities of Products to ensure that Distributor will maintain inventory levels at all times equal to [*], based on its historical sales of Products in the Territory. 

 

	 	(d)	Delivery Times. The Company will make commercially reasonable efforts to ship all Distributor orders completely and to have Product from these orders shipped to
Distributor within five business days of Distributor’s requested shipment date. Notification of Product identified as backordered or unavailable must be provided to Distributor, in writing, within one business day. This notification will
include the reason for the delay and the expected availability date. The Company will honor Distributor’s order for [*] from the date of the order in the event that Product ordered is “backordered” and will not require Distributor to
re-order the Product. 

  

	 	(e)	Shipping Labels. The Company will clearly label all cartons and pallets of Products with the following shipping information: 

Distributor Purchase Order # 
 Ship-From Address 
 Ship-To Address 

Product Description 
 Item Number 
 Case Quantity 

(NB: Distributor Item Number will also be included on the packing list inside the carton) 

 

	 	(f)	Shipping, Delivery, Title and Risk of Loss. The Company will ship all Products purchased under this Agreement to Distributor’s destination at its
distribution centers located at: 

  

			
	345 International Boulevard	 	5360 Capital Court
	Suite 400	 	Suite 102
	Brooks, KY 40109	 	Reno, NV 89502

 Risk of loss for, and title to, Products ordered by Distributor will pass to Distributor upon receipt of
Product by Distributor. 
  

	 	(g)	Drop Ship Orders. A drop ship transaction is when the Company sells the Product to Distributor and Distributor resells the Product to a Customer, but the Company
ships the Product directly to the Customer. The Company will not drop ship Product(s) to a Distributor customer unless requested by Distributor, in which event all other provisions of the Agreement, including returns, remain in effect.

  

	 	(h)	Product Dating. The Company will only ship Product with less than [*] shelf life remaining with the prior written approval of Distributor.

  

	 	(i)	[*]. If at any time the Company [*]the [*]of [*], the Company will provide an [*]to [*]in an [*]the [*]and [*] before the [*], for each [*]on [*]to [*]on the date of
the [*]. 

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

  
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	 	(j)	Product Quality. All Product must meet all Applicable Laws of the Federal Food, Drug and Cosmetic Act and/or the U.S. Food and Drug Administration. The Company
will not sell any generic versions of the Product(s) to Distributor. 

  

	5.	Distributor’s Services. 

  

	 	(a)	Resale of Product. Distributor will resell Products to Customers, after verifying Customer licenses to purchase Products, at no more than the List Price set
forth in Exhibit A, except in the case where a Customer elects to pay Distributor on payment terms longer than net 30 days, in which case Distributor may sell Products at a price higher than the List Price. 

 

	 	(b)	Distribution of Ancillary Supplies. At the Company’s request, and at no additional charge to the Company except for reimbursement of shipping costs,
Distributor will store and distribute, along with the Products, nominal ancillary supplies for Product administration, if so required by the Customer (e.g., [*], etc.). The Company will provide all ancillary supplies to Distributor at no cost for
re-distribution to Customers. Distributor will invoice the Company for all shipping and freight costs relating to the ancillary supplies, plus a mark-up of [*] on such costs, and the Company will pay all such invoices pursuant to Section 5(f).

  

	 	(c)	Services. Distributor will provide the services listed on Exhibit B (the “Services”). All Services will be of good quality and performed in a
manner consistent with industry standards. 

  

	 	(d)	Fees. The fees for the Services will be calculated on a monthly basis, and will be equal to [*] of the [*] of [*] made by [*] during the [*], as may be adjusted
in accordance with [*], except that in no event will the monthly fee be [*] the amount obtained by [*] (i) the [*] during the month, by (ii) the applicable [*] for that [*], as may be adjusted in accordance with [*]. The parties agree that
the fees for Services earned under this Agreement are intended solely for payment of the Services and have been determined through good faith and arms-length negotiation, and represent fair market value for bona fide services that Distributor
provides to and on behalf of the Company. Other than the [*], no amount paid or reimbursed hereunder is intended to be, nor will it be construed as, either a discount or price concession (and will not be used in such a manner, directly or
indirectly). 

  

	 	(e)	Invoicing. Distributor will invoice the Company monthly for the fees for Services. Each invoice will identify the amount of sales of Product made by Distributor
to Customers during the applicable month. 

  

	 	(f)	Terms of Payment. All fees for Services are due in full [*] days after receipt of invoice. The Company will notify Distributor of any disputed charges in writing
within [*] days of receipt of the invoice covering these charges. In the absence of any notice of dispute, all invoices will be deemed to be correct and due in full per the payment terms above. A late fee of 1% per month (or any portion
thereof) will be charged as of the due date on all amounts not paid after [*] days after receipt of the invoice, except on any amount disputed by the Company in good faith. 

 

	 	(g)	 Courtesy Billing through AmerisourceBergen Drug Corporation. Certain Customers may request Distributor to invoice the Customer through the
Customer’s full-line wholesaler and Distributor’s affiliate, AmerisourceBergen Drug Corporation (“AmerisourceBergen”). In these circumstances, Distributor will [*], but [*] for the [*]. [*] will [*] for the [*], but also [*] a
[*] for arranging the 

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

  
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[*]. If at a Customer’s request Distributor [*] and [*], the [*] will pay [*] a [*] equal to [*] of the [*] of [*] that is [*], except that in no event will the [*] be [*] the amount
obtained by [*] (i) the [*] by [*] during the month, by (ii) the applicable [*], as may be adjusted in accordance with [*]. The [*] is in addition to, and will be calculated, invoiced by and paid to [*] in the [*] as the [*].

  

	 	(h)	CPI Adjustment. The Minimum Service Fee and Minimum Courtesy Billing Service Fee will be reviewed and adjusted annually to reflect increases in the Consumer
Price Index for All Urban Consumers, U.S. City Average, for all items, 1982-84=100 (the “CPI-U”), published by the United States Department of Labor on its website at http://www.bls.gov/cpi. The adjustment will be effective on the first
day of the month following the publication of the CPI-U by the United States Department of Labor after each one year anniversary of the Effective Date. By way of example only, if the Effective Date is January 1, 2011, the adjustment would be
effective on February 1, 2012, following publication of the CPI-U on or about January 15, 2012. The Minimum Service Fee and Minimum Courtesy Billing Service Fee will be multiplied by the percent increase in the CPI-U during each subsequent
twelve month period. An example of the calculation of the increase is set forth on Exhibit D. If publication of the CPI-U ceases, or if the CPI-U otherwise becomes unavailable or is altered in a way as to be unusable, the parties will agree
on the use of an appropriate substitute index published by the Bureau or any successor agency. 

  

	 	(i)	Cost Adjustment. If Distributor can reasonably demonstrate to the Company that the costs to Distributor for providing Services have materially increased (or are
reasonably likely to increase materially during the following [*] month period of the Term) as a result of [*] or [*] of [*], then Distributor may [*] to [*] the [*] for Services provided in Section 5(d) (“Cost Adjustment”).
Distributor will notify the Company of any proposed Cost Adjustment at least [*] prior to [*]. 

  

	 	(j)	Determination. All Cost Adjustments and CPI-U adjustments will be determined under generally accepted accounting principles (GAAP) and cost allocation methods
applied on a consistent basis. If the Company objects to any Cost Adjustment or CPI-U adjustment and the parties are unable in good faith to resolve the objection to the reasonable satisfaction of both parties, then either party may terminate this
Agreement upon 90 days’ prior written notice to the other party. 

  

	 	(k)	Retention of Services Fees. Distributor will not pass on any portion of the service fees paid under this Agreement to any of its Customers.

  

	6.	Other Distributor Obligations. 

  

	 	(a)	Orders. Distributor will ship Product to Customers, freight pre-paid, on all orders for standard delivery. Distributor will ship all accepted orders within the
timeframes set forth in Exhibit B, except that any expedited shipments made at the request of a Customer will be at the Customer’s expense. Additional charges for orders outside of standard delivery, such as emergency and/or overnight
deliveries, will be the responsibility of the Customer and will be added to the invoice to the Customer. 

  

	 	(b)	 Storage Condition/Product Handling. Distributor will use commercially reasonable efforts to handle, maintain, store, transport, deliver and/or
otherwise manage and distribute Products supplied by the Company in accordance with (i) the handling and storage requirements applicable to each Product as contained in the package insert for the Product approved by the Food and Drug

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

  
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Administration, (ii) any other specific instructions provided by the Company in writing to Distributor, (iii) the terms of this Agreement and (iv) all Applicable Laws in the
jurisdictions in which Distributor operates. Distributor will store the Products only at the Distributor distribution centers listed in Section 4(f). 

 

	 	(c)	Disaster Recovery. Distributor agrees that it has and will make available for review at its distribution centers upon request by the Company its current disaster
recovery plan. 

  

	 	(d)	Records; Audit. During the Term and for a period of three years thereafter, Distributor will keep and maintain complete written records relating to the
performance of this Agreement (including without limitation complete written records as to the amount and type of Product sold, corresponding pre-sale storage and tracking information, product codes and invoice dates). During the Term and for a
period of three years thereafter, these records will be made available for inspection by the Company or, subject to execution of a mutually acceptable confidentiality agreement, its auditor during normal business hours, on reasonable advance written
notice. Any such audit must be conducted in a manner that does not unreasonably interfere with the normal business operations of Distributor. 

  

	 	(e)	Inspection. During the Term only, during normal business hours and on reasonable advance written notice, the Company or its auditor will be entitled to inspect
any of Distributor’s facilities directly involved in the performance of this Agreement, to confirm Distributor’s performance under this Agreement. Any such inspection must be conducted in a manner that does not unreasonably interfere with
the normal business operations of Distributor. 

  

	7.	Regulatory. 

  

	 	(a)	Licenses. Distributor must maintain all necessary licenses, permits, certificates, and other requisite documents, including all necessary governmental approvals
and registrations, and pay all applicable customs duties and taxes required for and/or in connection with its sale and distribution of Products under this Agreement. 

 

	 	(b)	 Regulatory Inspections and Inquiries. Distributor will notify the Company promptly of notice of any inspection or loss of required licensure by
any regulatory authority, including the U.S. Food and Drug Administration, related specifically to this Agreement or Products. The Company will have the right to be present, at its sole cost and expense, at any such inspection, if allowed by
Applicable Laws. In the event that Distributor does not receive prior notice of such regulatory inspection, Distributor will promptly notify the Company as soon as practicable after such inspection, and will provide in writing to the Company copies
of all materials, correspondence, statements, forms, and records related specifically to this Agreement or Products and received or generated pursuant to such inspection. Distributor will take all reasonable actions requested by the Company to cure
deficiencies as noted during any such inspection. Distributor will notify the Company promptly of any non-routine notices, requests for information or other communications related specifically to this Agreement or Products from the U.S. Department
of Health and Human Services or any other government agency or any state health care program or other state agency and will give the Company copies of such communications, if allowed by Applicable Laws. Unless required by Applicable Laws or
otherwise permitted by Section 12(f), Distributor will not provide any copies of any Confidential Information of the Company to the regulatory authority without first forwarding any requests for such materials to the Company and allowing

  
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INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24(B)(2) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

  
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the Company to quash or protest such request. The Company will have the primary responsibility for preparing any responses related to this Agreement that may be required by the regulatory
authority, if allowed by Applicable Laws; provided, however, that Distributor will have the primary responsibility for preparing any responses relating solely to Distributor’s operations and procedures. 

 

	 	(c)	Product Recalls. If the Company conducts a recall or market withdrawal of any Products, the Company will abide by all Applicable Laws. If requested to do so in
writing by the Company, Distributor will cooperate fully with the Company in recalling or returning any Product that the Company identifies to Distributor as being the subject of a recall or withdrawal. The recall or withdrawal will be at the
Company’s expense and the Company will credit Distributor for the full purchase price of all Product recalled or withdrawn, and reimburse Distributor for all reasonable, documented and actual costs and expenses incurred as a result of the
recall or withdrawal in accordance with the Healthcare Distribution Management Association’s published guidelines; except that Distributor will be responsible for all such costs and expenses of the recall or withdrawal to the extent that the
recall or withdrawal is attributable to the negligence or intentional misconduct of Distributor or breach of this Agreement by Distributor. Distributor will maintain complete and accurate records of all Products sold to facilitate compliance with
this Section 7(c). Distributor will use commercially reasonable efforts to comply with the Company’s written instructions concerning communications with the public and the procedures to be observed during a recall or return of Products.

  

	 	(d)	Supporting Information. The Company will provide any documentation or instructions to Distributor reasonably necessary for full compliance with Applicable Laws
with respect to the handling, storage and distribution of the Products. The Company must maintain federal, state and local registrations necessary for the lawful handling of Products and immediately notify Distributor of any denial, revocation or
suspension of any registration or any changes in the Products that Distributor is authorized to distribute. The Company must report any administrative, civil or criminal action currently pending or arising after the Effective Date of this Agreement
by local, state or federal authorities against the Company, its officers or employees, regarding alleged violations of the Controlled Substances Act of 1970, as amended, or other comparable legislation, and provide Distributor with complete
information concerning the disposition of the action. Distributor will provide to the Company all documents and information in the possession of Distributor reasonably requested by the Company in support of the Company’s regulatory filings. If
the Company requests records, documents or other information from Distributor pertaining to an inquiry from a governmental or regulatory authority or in relation to any other third party dispute, Distributor will promptly comply with such request.
The Company will pay all of Distributor’s reasonable costs and expenses incurred in complying with any such request. 

  

	 	(e)	Adverse Events. If a Customer notifies Distributor of an Adverse Event or other complaint concerning a Product, Distributor will attempt to transfer the Customer
to, or if such transfer is not successful, provide the Customer with, the designated phone number for the Company’s UCD Support Services. 

  

	 	(f)	 Discounts. To the extent required by Applicable Laws, including but not limited to 42 U.S.C. 1320a-7b(b) and 42 C.F.R. 1001.952(h), Distributor
will advise and inform each of its Customers to fully report, as required by law or contract, any discounts, rebates, or reductions in prices on 

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

  
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Product and provide the discount information supplied by Distributor to the Department of Health and Human Services or a state agency upon request, consistent with the requirements of 42 U.S.C.
1320a-7b(b) and 42 C.F.R. 1001.952(h). 

  

	 	(g)	REMS Program. If a Product is subject to a REMS Program, the parties will meet and negotiate in good faith regarding Distributor’s compliance with the REMS
Program, the costs of such compliance, and any adjustment to the services fees payable under this Agreement to cover any such costs. 

  

	8.	Damaged or Non-Conforming Products. 

  

	 	(a)	External Damages. Distributor will visually inspect each shipment of Product for damages discoverable upon a reasonable visual inspection or loss in
transit and will notify the Company in writing (or by e-mail or fax) of any such damages, or any shortage or other non-conformity in any order delivery within two business days of the date of delivery. The Company will accept return of damaged
Product at its expense or, at its option, elect to either (i) refund Distributor for any payment made for the damaged Product or (ii) replace the damaged Product. 

 

	 	(b)	Hidden Damages. With respect to damages or non-conformities of Product that by their nature are not discoverable upon a reasonable visual inspection
(“Hidden Defects”), (i) Distributor will notify the Company in writing (or by e-mail or fax) within two business days of learning of or discovering a Hidden Defect; and (ii) the parties will meet promptly to discuss the situation
and agree on a reasonable and appropriate resolution under the circumstances, subject to the terms of the Continuing Guaranty. Distributor will follow all reasonable instructions from the Company regarding the handling of Customer returns of
Products with Hidden Defects. 

  

	9.	Shipment Errors. In the event the Company becomes aware of an incomplete shipment, a shortage in shipment, the misdirection of any delivery, or any
overshipment, the Company (or its designated agent) will immediately contact Distributor’s purchasing department and will comply with any reasonable directions provided by Distributor. In such event, the Company will be responsible for any
related freight or accessorial charges caused by the error. 

  

	10.	Returns. No returns for Product are permitted except pursuant to Section 7(c), Section 8, and this Section 10. 

 

	 	(a)	By Distributor. Distributor will have the right to return to the Company and receive credit for Product within [*] months of its expiration date, without
incurring a restocking fee/charge, in accordance with the following: (i) Distributor will notify the Company of its intent to return Product in order to obtain return authorization from the Company, if required; and (ii) the Company will
accept Distributor returned Products from a third party reverse distribution processor. 

  

	 	(b)	By Customers. Distributor, in its discretion, may [*], but Products [*] do not [*], except as may be agreed in writing by the Company. 

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

  
 11 

	11.	Customer Contracts. 

  

	 	(a)	Participating Customers. Any Customer having the right to purchase Product at a particular price (the “Participating Customer”) will make the purchase
through Distributor as the vendor. The Company will inform Distributor of the terms, pricing, and other relevant details of its contract with the Participating Customer, and will inform Distributor of any material updates and changes to any such
contract. Subject to the terms of this Agreement, Distributor will adhere to the pricing terms in each contract between the Company and the Participating Customer. In no event will the Company make any representation to the Participating Customer
regarding Distributor’s delivery performance. 

  

	 	(b)	Contract and Chargeback Administration Policy. All customer contract and chargeback matters not set forth in this Section 11 are governed by
Distributor’s Contract and Chargeback Administration Policy previously provided to the Company. 

  

	12.	Confidential Information. 

  

	 	(a)	Definition. As used in this Agreement, “Confidential Information” means any confidential or proprietary information that is disclosed by one party
(“Disclosing Party”) to the other party (“Recipient”), whether in writing or other tangible form, orally or otherwise, and includes without limitation (i) the terms of this Agreement, (ii) information about processes,
systems, strategic plans, business plans, operating data, financial information and other information and (iii) any analysis, compilation, study or other material prepared by Recipient (regardless of the form in which it is maintained) that
contains or otherwise reflects any information disclosed or made available by Disclosing Party to Recipient. 

  

	 	(b)	Limitations on Disclosure and Use. Confidential Information must be kept strictly confidential and may not be disclosed or used by Recipient except as
specifically permitted by this Agreement or as specifically authorized in advance in writing by Disclosing Party. Recipient may use Confidential Information of the Disclosing Party in the performance of its obligations or exercise of its rights
under this Agreement. Recipient may not take any action that causes Confidential Information to lose its confidential and proprietary nature or fail to take any reasonable action necessary to prevent any Confidential Information from losing its
confidential and proprietary nature. Recipient will limit access to Confidential Information to its employees, officers, directors or other authorized representatives (or those of its affiliates) who (i) need to know the Confidential
Information in connection with this Agreement and (ii) are obligated to Recipient to maintain Confidential Information under terms and conditions at least as stringent as those under this Agreement. Recipient will inform all these persons of
the confidential and proprietary nature of Confidential Information and will take all reasonable steps to ensure they do not breach their confidentiality obligations, including taking any steps Recipient would take to protect its own similarly
confidential information. Recipient will be responsible for any breach of confidentiality obligations by these persons. 

  

	 	(c)	Exceptions. The limitations on disclosure and use set forth in Section 12(b) do not apply to Confidential Information that: 

 

	 	i.	at the time of disclosure to Recipient, is generally available to the public; 

 

	 	ii.	after disclosure to Recipient, becomes generally available to the public other than as a result of a breach of this Agreement by Recipient (including any of its
affiliates); 

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

  
 12 

	 	iii.	Recipient can establish through its files and records was already in its possession, at the time the information was received from Disclosing Party, without an
obligation of confidentiality to the Disclosing Party with respect to the information; 

  

	 	iv.	Recipient receives from a third party without a breach of any obligations of confidentiality and without an obligation of confidentiality with respect to the
information; or 

  

	 	v.	Recipient can establish through its files and records was developed independently by Recipient without use, directly or indirectly, of any Confidential Information.

  

	 	(d)	Permitted Uses and Disclosures. The Company may use or disclose data provided by Distributor to the Company under this Agreement (“Data”), including
disclosures to any actual or potential licensors, licensees, collaborators, or acquirers that are obligated to the Company to maintain such Data under terms and conditions at least as stringent as those under this Agreement, but only to the extent
necessary to develop or commercialize the Products. 

  

	 	(e)	Equitable Relief. Each party acknowledges that, when it is Recipient, money damages would not be a sufficient remedy for Disclosing Party in the event of any
breach of this Agreement and that Disclosing Party is entitled to seek specific performance and injunctive or other equitable relief as a remedy for any breach. Recipient further waives any requirement for the posting of any bond in connection with
any remedy. This remedy will be in addition to any other available remedies at law or in equity. 

  

	 	(f)	Disclosures Required by Law. If Recipient is required by Applicable Law, court order, or rules of a securities exchange to disclose any Confidential Information
of Disclosing Party, Recipient will give Disclosing Party prompt notice and will use all reasonable means to obtain confidential treatment for any Confidential Information that it is required to disclose before making any disclosure. If Recipient
cannot assure confidential treatment and it has exhausted all reasonable efforts to do so, Recipient may disclose the relevant Confidential Information to the extent required by such Applicable Law, court order, or rules of a securities exchange.

  

	 	(g)	[*]. In addition to any disclosures permitted under Sections 12(c), (d) and (f), and notwithstanding Section 12(f), if [*], the [*] may [*] of [*] with the
[*] or otherwise [*] the [*] in [*]. As of the Effective Date, the Parties have agreed on a [*] of [*] that will be [*] to [*] along with [*]. If the [*] indicates that [*] is [*] under Applicable Law for [*] of the [*] and that [*] of the [*] must
be [*], the Company will immediately [*] of the [*] and will be [*] to [*] any [*] to the extent required to [*] with the [*], provided that [*] used [*] to [*] for the [*]. 

 

	 	(h)	Effect of Termination. Promptly after the termination or expiration of this Agreement, each party will return to the other any Confidential Information of the
other party and provide a written verification of the return or, at the Disclosing Party’s request, destroy the Confidential Information and provide written notification of the destroyed Confidential Information. Notwithstanding the foregoing,
each party may retain a copy of Confidential Information in its confidential legal files, and the obligation to destroy or return will not apply to Confidential Information that is stored on back-up tapes and similar media that are not readily
accessible to Recipient. 

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

  
 13 

	13.	Term and Termination. 

  

	 	(a)	Term. This Agreement is effective as of the Effective Date and will continue for two years, unless sooner terminated under the terms of this Agreement, and may
be renewed upon the mutual written agreement of the parties (the “Term”). 

  

	 	(b)	Termination for Breach; Termination without Cause. Either party may terminate this Agreement for cause upon 30 days’ written notice of a material default to
the other party with a reason for termination, and failure of that party to cure the default within the 30 day period. After the first year of the Term, either party may terminate this Agreement without cause upon at least 120 days’ prior
written notice to the other party. 

  

	 	(c)	Termination for Specific Events. Either party may immediately terminate this Agreement upon written notice to the other party upon the other party’s:
(i) filing an application for or consenting to appointment of a trustee, receiver or custodian of its assets; (ii) having an order for relief entered in Bankruptcy Code proceedings; (iii) making a general assignment for the benefit of
creditors; (iv) having a trustee, receiver, or custodian of its assets appointed unless proceedings and the person appointed are dismissed within 30 days; (v) insolvency within the meaning of Uniform Commercial Code Section 1-201 or
failing generally to pay its debts as they become due within the meaning of Bankruptcy Code Section 303(h)(1), as amended; or (vi) certification in writing of its inability to pay its debts as they become due (and either party may
periodically require the other to certify its ability to pay its debts as they become due) (each, a “Bankruptcy Event”). Each party will provide immediate notice to the other party upon a Bankruptcy Event. 

 

	 	(d)	Transition. Following the termination or expiration of this Agreement, the parties will transition the Services to the Company or a distributor designated by the
Company. Distributor will cooperate with the Company in good faith prior to and after termination or expiration to ensure a smooth transition of Products, if repurchased under Section 13(f), from Distributor to the Company or a distributor
designated by the Company, and the Company will pay all of Distributor’s reasonable costs and expenses incurred in performing any transition services. 

 

	 	(e)	Survival. The rights and obligations of the parties contained in Sections 1, 2(a), 4(i), 6(d), 7(b), 7(c), 7(d), 7(e), 10, 12, 13(d), 13(e), 13(f), 14, 16, 17,
18(a), 18(b), 19 and 20 of this Agreement, Sections 3 and 5 only as to any outstanding payment obligations, including but not limited to obligations relating to chargebacks for Products, and any other provision if its context shows that the parties
intend it to survive, will survive expiration or termination of this Agreement and, except as expressly provided, expiration or termination will not affect any obligations arising prior to the expiration or termination date.

  

	 	(f)	 Option to Repurchase Inventory upon Termination. If this Agreement is terminated (i) by Distributor following a breach by the Company or
(ii) by the Company without cause, then at Distributor’s option, the Company will promptly repurchase from Distributor all Products in its possession or control, at the List Price paid by Distributor, without any deduction for prompt
payment that may have earned and taken by Distributor. If this Agreement (1) is terminated by the Company following a breach by Distributor, (2) is terminated by Distributor without cause or (3) expires, then at the Company’s
option, the Company may repurchase the Products in accordance with the foregoing sentence. To the extent that this option to repurchase the Products is not exercised or not applicable, then all provisions of this Agreement shall survive with respect

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

  
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to any Products in Distributor’s possession until Distributor finishes distributing such Products in the ordinary course of its business. 

 

	14.	Intellectual Property. 

  

	 	(a)	Background IP. The Company will retain all right, title and interest in and to all Intellectual Property controlled by the Company prior to the Effective Date or
made or acquired by the Company during the Term independently of this Agreement and not as a result of access to any proprietary material, method, or Confidential Information of Distributor. Distributor will retain all right, title and interest in
and to all Intellectual Property controlled by Distributor prior to the Effective Date or made by Distributor during the Term independently of this Agreement and not as a result of access to any proprietary material, method, or Confidential
Information of the Company. 

  

	 	(b)	Ownership of Data. All Data will be the property of Distributor, provided that [*] will not [*] Data to any [*] that [*] or to [*] or any other [*].

  

	 	(c)	Use of Marks. For the purposes of this Agreement, the Company hereby grants to Distributor a non-exclusive, non-transferable, revocable license to use the
Company’s trademarks, trade names and service marks used and/or owned by the Company with respect to the Products (collectively, the “Marks”) solely in connection with Distributor’s marketing, packaging, sale, distribution and/or
delivery of Product purchased from and supplied by the Company, and the Services being performed by Distributor, under this Agreement. The ownership of and goodwill in all Marks will remain the sole and exclusive property of the Company and inure
exclusively to the Company’s sole benefit, both during the Term and thereafter. Nothing in this Agreement will give Distributor any right, title or interest in or to the Marks other than the right to use the same in the manner contemplated by
this Agreement and only for so long as this Agreement is in force. To the extent Distributor may accumulate or otherwise benefit from any goodwill deriving from or in connection with Distributor’s use of any of the Marks under this Agreement,
the goodwill will upon termination or expiration of this Agreement be assigned and/or otherwise transferred to the Company without any further action by either party. 

 

	15.	Representations and Warranties. 

  

	 	(a)	By Distributor. Distributor represents and warrants to the Company that: 

 

	 	i.	Distributor has and will maintain, in full force and effect, all licenses and permits required under Applicable Laws for Distributor to sell and distribute Products
under this Agreement; 

  

	 	ii.	Distributor will comply with all Applicable Laws governing the purchase, handling, sale and distribution of Products purchased under this Agreement;

  

	 	iii.	the use or practice of processes, methods and equipment by Distributor in performing its obligations under this Agreement (except to the extent provided or supplied by
the Company) will not infringe or misappropriate any third party intellectual property rights; and 

  

	 	iv.	 Neither Distributor nor any of its employees, officers, directors or other representatives performing services under this Agreement is debarred,
suspended, proposed for debarment, 

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

  
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or otherwise determined to be ineligible to participate in federal health care programs (as that term is defined in 42 U.S.C. 1320a-7b(f)), or convicted of a criminal offense related to the
provision of health care items or services (collectively, an “Adverse Enforcement Action”). Distributor will notify the Company promptly if it or any of its employees, officers, directors or other representatives performing services under
this Agreement becomes the subject of an Adverse Enforcement Action. Distributor agrees that it will immediately cease all activity under the Agreement if it becomes the subject of an Adverse Enforcement Action, and will not permit any employee,
officer, director or other representative who becomes the subject of an Adverse Enforcement Action to perform any activities under this Agreement. 

  

	 	(b)	By the Company. The Company represents and warrants to Distributor that: 

 

	 	i.	Effective on and after the Launch Date for each Product, the Company owns or holds the duly approved New Drug Application, as defined in the Federal Food, Drug and
Cosmetic Act, Title 21, United States Code, as amended, and the rules and regulations promulgated thereunder, for the applicable Product, or is otherwise considered the “manufacturer” of the applicable Product within the meaning of any
Applicable Laws relating to pedigrees; 

  

	 	ii.	Effective on and after the Launch Date for each Product, the Company has and will maintain, in full force and effect, all licenses and permits required under Applicable
Laws for the Company to sell and distribute the applicable Product under this Agreement; 

  

	 	iii.	The Company will comply with all Applicable Laws governing the purchase, handling, sale, distribution, and price reporting of Products purchased under this Agreement;
and 

  

	 	iv.	The Company has good and marketable title to the Products sold to Distributor under this Agreement, and all Products will be sold to Distributor free and clear of all
liens, claims, security interests or other encumbrances. 

  

	 	(c)	Compliance with IAT Rules. To enable Distributor to comply with the International ACH Transactions rules and the U.S. Department of Treasury’s Office of
Foreign Asset Controls’ requirements, the Company represents and warrants to Distributor that with respect to electronic payments that Distributor may remit to a financial institution for credit to an account designated by the Company, the
entire payment amount is being sent to a bank within the territorial jurisdiction of the United States and is not subject to standing instructions to be transferred or forwarded to a foreign bank account or financial institution. The Company agrees
to provide written notice to Distributor if in the future the Company decides, as part of a single payment transaction, to transfer or forward the entire amount of any electronic payment that Distributor makes to the Company to a bank account or
financial institution located outside the territorial jurisdiction of the United States. 

  

	16.	Indemnification; Insurance. 

  

	 	(a)	 By the Company. The Company will defend, indemnify, and hold harmless Distributor and its affiliates, directors, officers, employees and
representatives (the “Distributor Indemnitees”) from any demands, costs, expenses (including reasonable attorneys’ fees), liabilities or losses (“Losses”) arising out of any third party suits, claims, actions, or demands
(“Claims”) that may be asserted against Distributor Indemnitees to the extent that the Claims result from or arise out of (i)

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

  
 16 

	 	
the negligence or willful misconduct of the Company Indemnitees (as defined below) in connection with the manufacture or sale of the Products or (ii) the Company’s breach of this
Agreement; except in each case to the extent that the Claims are subject to indemnification by Distributor under Section 16(b). This provision is in addition to the indemnification provisions in the Continuing Guaranty.

  

	 	(b)	By Distributor. Distributor will defend, indemnify and hold harmless the Company and its affiliates, directors, officers, employees and representatives (the
“Company Indemnitees”) from any Losses arising out of any Claims that may be asserted against the Company Indemnitees to the extent that the Claims result from or arise out of (i) the negligence or willful misconduct of the
Distributor Indemnitees in connection with the sale and distribution of the Products or (ii) Distributor’s breach of this Agreement; except in each case to the extent that the Claims are subject to indemnification by the Company under
Section 16(a) or the Continuing Guaranty. 

  

	 	(c)	Indemnification Procedures. The obligations and liabilities of the parties with respect to claims subject to indemnification under Section 16(a),
Section 16(b), and the Continuing Guaranty (“Indemnified Claims”) are subject to the following terms and conditions: 

  

	 	i.	The party claiming a right to indemnification (“Indemnified Person”) will give prompt written notice to the indemnifying party (“Indemnifying
Person”) of any Indemnified Claim, stating its nature, basis and amount, to the extent known. Each notice will be accompanied by copies of all relevant documentation, including any summons, complaint or other pleading that may have been served
or any written demand or other document. 

  

	 	ii.	With respect to any Indemnified Claim: (A) the Indemnifying Person will defend or settle the Indemnified Claim, subject to provisions of this subsection,
(B) the Indemnified Person will, at the Indemnifying Person’s sole cost and expense, cooperate in the defense by providing access to witnesses and evidence available to it, (C) the Indemnified Person will have the right to participate
in any defense at its own cost and expense, (D) the Indemnified Person will not settle, offer to settle or admit liability as to any Indemnified Claim without the written consent of the Indemnifying Person, and (E) the Indemnifying Person
will not settle, offer to settle or admit liability as to any Indemnified Claim in which it controls the defense if the settlement, offer or admission contains any admission of fault or guilt on the part of the Indemnified Person, or would impose
any liability or other restriction or encumbrance on the Indemnified Person, without the written consent of the Indemnified Person. 

  

	 	iii.	Each party will cooperate with, and comply with all reasonable requests of, each other party and act in a reasonable and good faith manner to minimize the scope of any
Indemnified Claim. 

  

	 	(d)	Distributor Insurance. During the [*], Distributor must maintain the following minimum insurance: 

 

	 	i.	[*]; 

  

	 	ii.	[*]; 

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

  
 17 

	 	iii.	[*]; 

  

	 	iv.	[*]; and 

  

	 	v.	[*]. 

 Throughout the Term,
Distributor will (1) provide prompt written notice to the Company in the event Distributor becomes aware or is notified that the insurance described in this Section 16(d) will be materially adversely modified or cancelled and
(2) provide the Company with proof of such insurance. 
  

	17.	Continuing Guaranty and Indemnification Agreement. Contemporaneously with the execution of this Agreement, the Company will execute and deliver to
Distributor the Continuing Guaranty. The representations, warranties and indemnification provisions contained in the Continuing Guaranty are in addition to those contained in this Agreement. The Company acknowledges that all purchases of Product by
Distributor under this Agreement are subject to the Continuing Guaranty, and the Company will perform its obligations, including its obligations to maintain insurance, set forth in the Continuing Guaranty. 

 

	18.	Disclaimer; Liability; Force Majeure. 

  

	 	(a)	DISCLAIMER OF WARRANTIES. WITH THE EXCEPTION OF THE WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE CONTINUING GUARANTY, THE COMPANY EXPRESSLY DISCLAIMS
ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS AND ANY OTHER MATERIALS, TECHNICAL INFORMATION, OR KNOW-HOW, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITH THE EXCEPTION OF THE
WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT, DISTRIBUTOR EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE SERVICES. 

  

	 	(b)	NO CONSEQUENTIAL DAMAGES. EXCEPT WITH RESPECT TO BREACHES OF CONFIDENTIALITY OBLIGATIONS UNDER SECTION 12 AND CLAIMS SUBJECT TO INDEMNIFICATION UNDER SECTION
16(A), SECTION 16(B), OR THE CONTINUING GUARANTY, NO PARTY WILL BE LIABLE TO ANY OTHER PARTY FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR OTHER SIMILAR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

  

	 	(c)	 Force Majeure. If the performance of any part of this Agreement by any party will be affected for any length of time by fire or other casualty,
government restrictions, war, terrorism, riots, strikes or labor disputes (that are not specific to Distributor), lock out, transportation delays, electronic disruptions, internet, telecommunication or electrical system failures or interruptions,
and acts of God, or any other cause which is beyond control of a party (financial inability excepted), the party will not be responsible for delay or failure of performance of this Agreement for this length of time, provided that (i) the
affected party promptly notifies the other party and takes all reasonable measures to resolve the situation, and (ii) the obligation of one party to pay amounts due to any other party will not be subject to the provisions of this
Section 18(b). Notwithstanding 

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

  
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the foregoing, in the event any force majeure event continues for more than 3 months, the other party may terminate this Agreement for breach pursuant to Section 13(b).

  

	19.	Notices. Any notice, request or other document to be given under this Agreement to a party will be effective when received and must be given in writing
and delivered in person or sent by overnight courier or registered or certified mail, return receipt requested, as follows: 

  

			
	If to Distributor:	  	ASD Specialty Healthcare, Inc.
		  	3101 Gaylord Parkway
		  	Frisco, TX 75034
		  	Attn: President
		
	With a copy to:	  	AmerisourceBergen Specialty Group, Inc.
		  	3101 Gaylord Parkway, 1N-E186
		  	Frisco, TX 75034
		  	Attn: Group General Counsel
		
	If to the Company:	  	Hyperion Therapeutics, Inc.
		  	601 Gateway Boulevard
		  	South San Francisco, CA 94080
		  	Attn: Chief Financial Officer
		
	With a copy to:	  	Hyperion Therapeutics, Inc.
		  	601 Gateway Boulevard
		  	South San Francisco, CA 94080
		  	Attn: Chief Commercial Officer

  

	20.	Other Provisions. 

  

	 	(a)	Other Rights. No waiver of any breach of any one or more of the conditions or covenants of this Agreement by a party will be deemed to imply or constitute a
waiver of a breach of the same condition or covenant in the future, or a waiver of a breach of any other condition or covenant of this Agreement. 

  

	 	(b)	Severability. If any provision or the scope of any provision of this Agreement is found to be unenforceable or too broad by judicial decree, the parties agree
that the provisions will be curtailed only to the extent necessary to conform to law to permit enforcement of this Agreement to its full extent. 

  

	 	(c)	 Entire Agreement; No Reliance. Each of the parties agrees and acknowledges that this Agreement, including the exhibits and attachments referred
to in this Agreement, (i) constitutes the entire agreement and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between the parties with respect to the subject matter of
this Agreement, including without limitation the Mutual Non-Disclosure Agreement between the Company and Xcenda, L.L.C, an affiliate of Distributor, dated October 8, 2012 (to the extent applicable to Distributor) and (ii) is not intended
to confer any rights or remedies, or impose any obligations, on any person other than the parties. Each of the parties expressly agrees and acknowledges that, other than those statements expressly set forth in this

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

  
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Agreement, it is not relying on any statement, whether oral or written, of any person or entity with respect to its entry into this Agreement or to the consummation of the transactions
contemplated by this Agreement, and each of the parties further waives any claim against the other party that the other party has failed to disclose any fact, occurrence or other matter that relates in any way to its entry into this Agreement.

  

	 	(d)	Amendments and Modifications; Conflicts. This Agreement may be modified only by a written agreement signed by both parties. In the event of conflict between the
provision in this Agreement and any terms used in the ordering, acceptance, shipment and receipt of Products, this Agreement will control. In the event of a conflict between the provisions in the body of this Agreement and the provisions in the
exhibits and attachments, this Agreement will control. 

  

	 	(e)	Assignment. This Agreement may not be assigned by either party without the prior written consent of the other, which will not be unreasonably withheld, except
that no consent is required if (i) the financial condition of the proposed assignee is equal to or better than the financial condition of the assignor, and (ii) the proposed assignee has the capability from an operational perspective to
perform the assignor’s obligations under the Agreement. In the case of an assignment by the Company, unless otherwise agreed by Distributor, the Company shall remain obligated under the Continuing Guaranty for Products shipped or delivered by
or on behalf of the Company before the effective date of the assignment, and the proposed assignee shall execute a Continuing Guaranty and Indemnification Agreement in substantially the same form as the Continuing Guaranty executed by the Company.
Any attempted assignment in contravention of this Section 20(e) will be without effect. If an assignment is permitted by this Section 20(e), the Company and Distributor will meet with the assignee to discuss appropriate transition issues
following such assignment, including without limitation treatment of returns and chargebacks, and indemnification for sales of Products before the assignment. 

 

	 	(f)	Successors and Assigns. This Agreement will be binding on and will benefit any and all successors, trustees, permitted assigns and other successors in interest
of the parties. 

  

	 	(g)	Applicable Law. This Agreement will be construed and enforced in accordance with the laws of the State of New York (excluding the choice of law provisions
thereof that would require the application of the laws of any other jurisdiction). 

  

	 	(h)	Independent Contractor. Distributor’s relationship with the Company under this Agreement will be that of an independent contractor, and neither party will
be considered the agent of, partner of, employee or other member of the workforce of, or participant in a joint venture with, the other party, in its performance of all duties under this Agreement. Neither party will have authority to bind the other
party unless otherwise agreed to in writing by the parties. 

  

	 	(i)	Publicity. Neither party has the right to issue a press release, statement or publication regarding the terms and conditions of or the existence of this
Agreement without the prior written consent of the other party. 

  

	 	(j)	 Joint Preparation. Each party to this Agreement (i) has participated in the preparation of this Agreement, (ii) has read and
understands this Agreement, and (iii) has been represented by counsel of its own choice in the negotiation and preparation of this Agreement. Each party 

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

  
 20 

	 	
represents that this Agreement is executed voluntarily and should not be construed against a party solely because it drafted all or a portion of this Agreement. 

 

	 	(k)	Counterparts. This Agreement may be executed in multiple counterparts, each of which will be deemed an original but all of which together will constitute one and
the same instrument. Facsimile execution and delivery of this Agreement are legal, valid and binding execution and delivery for all purposes. 

  

	21.	ASD Specialty Healthcare, Inc. Distributor has advised the Company that ASD Specialty Healthcare, Inc. operates four divisions – ASD Healthcare,
Besse Medical, Chapin Specialty Healthcare and Oncology Supply. The Company agrees and acknowledges that the obligation to perform the Services under this Agreement is solely that of the ASD Healthcare division and not the Besse Medical, Chapin
Specialty Healthcare or Oncology Supply divisions of ASD Specialty Healthcare, Inc. 

 [signature page follows]

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

  
 21 

 IN WITNESS WHEREOF, the parties execute this Agreement as of the Effective Date. 

 

									
	Hyperion Therapeutics, Inc.	  		  	 ASD Healthcare, a division of
 ASD Specialty Healthcare, Inc.

					
	By:	  	 /s/ Jeff Farrow
	  		  	By:	  	 /s/ Matt Johnson

	Name:	  	Jeff Farrow	  		  	Name:	  	Matt Johnson
	Title:	  	CFO	  		  	Title:	  	COO
					
	By:	  	 /s/ Donald J. Santel
	  		  		  	
	Name:	  	Donald J. Santel	  		  		  	
	Title:	  	Chief Executive Officer	  		  		  	

 Attachments: 
  

			
	Exhibit A:	  	Description of Products and Pricing
	Exhibit B:	  	Distributor Services
	Exhibit C:	  	Fee Schedule
	Exhibit D:	  	Example of CPI-U Adjustment Calculation
	Exhibit E:	  	Continuing Guaranty and Indemnification Agreement

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

  
 22 

 Exhibit A 

Description of Products and Pricing 
  

													
	 Product
	  	Size	 	  	List Price	 	 	NDC	 
	 Ravicti (glycerol phenylbutyrate)
	  	 
 	25 ml
bottle	  
  	  	$	[	*] 	 	 	NDC-76325-100-25	  

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

  
 23 

 Exhibit B 

Distributor Services 
 Distributor will provide the following Services to the Company: 
  

	A.	Distribution Services 

  

	 	•	 	 [*] 

  

	B.	Management of Customer Agreements 

  

	 	•	 	 [*] 

  

	C.	Data Management  

  

	 	•	 	 [*] 

  

	D.	Specialty Sales Support, Customer Service, Order Management 

  

	 	•	 	 [*] 

  

	E.	Receivables Management, Risk Mitigation, Program Price Management 

  

	 	•	 	 [*] 

[*] services are available for an additional fee. 

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

  
 24 

 Exhibit C 

Fee Schedule 
  

			
	 Product
	  	Fee
	 Ravicti (glycerol phenylbutyrate)
	  	[*]
	 Buphenyl (sodium phenylbutyrate) tablets and powder*
	  	[*]
	 Ammonul (sodium phenylacetate and sodium benzoate) injection 10%/10%*
	  	[*]

  

	*	if added by the Company in its sole discretion 

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

  
 25 

 Exhibit D 

Example of CPI-U Adjustment Calculation 
  

			
	 Effective Date:
	  	January 1, 2011
	 CPI-U for January 2011:
	  	220.223
	 CPI-U for January 2012:
	  	226.665
	 (published on or about January 15, 2012)
	  	
		
	 Change in CPI-U:
	  	6.442
	 Percentage change in CPI-U:
	  	6.442/220.223 = 2.925%

 All minimum service fees would be increased by 2.925% effective on February 1, 2012. 

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

  
 26 

 Exhibit E 

Continuing Guaranty and Indemnification Agreement 
 (attached) 

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

  
 27 

  
 

 
 CONTINUING GUARANTY AND INDEMNIFICATION AGREEMENT 

The undersigned guarantees to AmerisourceBergen Corporation and each of its subsidiary companies and their successors that (i) any food, drugs,
devices, cosmetics, or other merchandise (“Products”) now or hereafter shipped or delivered by or on behalf of the undersigned and its affiliates (“Guarantors”) to or on the order of AmerisourceBergen Corporation or any of its
subsidiaries will not be, at the time of such shipment or delivery, adulterated, misbranded, or otherwise prohibited under applicable federal, state and local laws, including applicable provisions of the Federal Food, Drug and Cosmetic Act, 21
U.S.C. §301 et seq. (“FDCA”), and Sections 351 and 361 of the Federal Public Health Service Act, 42 U.S.C. §§ 262 and 264, and their implementing regulations (“Applicable Laws”), each as amended and in effect at
the time of shipment or delivery of such Products; (ii) the Products are not, at the time of such shipment or delivery, merchandise that may not otherwise be introduced or delivered for introduction into interstate commerce under Applicable
Laws, including FDCA section 301 (21 U.S.C. §331); and (iii) the Products are, at the time of such shipment or delivery, merchandise that may be legally transported or sold under the provisions of any other applicable federal, state or
local law. Guarantors guarantee further that, in the case of food shipments, only those chemicals or sprays approved by federal, state or local authorities have been used, and any residue in excess of the amount allowed by any such authorities has
been removed from Products. 
 The undersigned shall promptly defend, indemnify and hold AmerisourceBergen Corporation and each of its
subsidiaries (the “Indemnitees”) harmless against any and all losses, damages, costs, liabilities and expenses, including attorneys’ fees and expenses, arising as a result of any third party claims resulting from (a) any actual
or asserted violation of Applicable Laws or by virtue of which Products made, sold, supplied, or delivered by or on behalf of Guarantors may be alleged or determined to be adulterated, misbranded or otherwise not in full compliance with or in
contravention of Applicable Laws, (b) the possession, distribution, sale and/or use of, or by reason of the seizure of, any Products of Guarantors, including any prosecution or action whatsoever by any governmental body or agency or by any
private party, including claims of bodily injury, death or property damage, (c) any actual or asserted claim that Guarantors’ Products infringe any proprietary or intellectual property rights of any person, including infringement of any
trademarks or service names, trade names, trade secrets, inventions, patents or violation of any copyright laws or any other applicable federal, state or local laws, and (d) any actual or asserted claim of negligence, willful misconduct or
breach of contract of the Guarantors; except in each case to the extent arising from the negligence, willful misconduct or breach of contract of AmerisourceBergen or its affiliates. 
 The undersigned shall maintain primary, noncontributory product liability insurance of not less than $5,000,000 per occurrence for claims relating to Products. This insurance must include
AmerisourceBergen Corporation, its subsidiaries and their successors as additional insureds for claims arising out of Products, and provide for at least thirty days’ advance written notice to AmerisourceBergen Corporation of cancellation or
material reduction of the required insurance. If the required insurance is underwritten on a “claims made” basis, (i) the insurance must include a provision for an extended reporting period (“ERP”) of not less than
twenty-four months and (ii) the undersigned further agrees to purchase the ERP if continuous claims made insurance, with a retroactive date not later than the date of signature below, is not continually maintained or is otherwise unavailable.
This insurance shall be with an insurer and in a form reasonably acceptable to AmerisourceBergen Corporation, and any deductible or retained risk must be commercially and financially reasonable and reasonably acceptable to AmerisourceBergen
Corporation. The undersigned warrants that it has sufficient assets to cover any self-insurance or retained risk. Upon request, the undersigned will promptly provide satisfactory evidence of the required insurance. 

Provisions in this Continuing Guaranty and Indemnification Agreement are in addition to, and not in lieu of, any terms set forth in any purchase orders
accepted by Guarantors or any separate agreement entered into between AmerisourceBergen Corporation or any of its subsidiaries and Guarantors. If the language in this Agreement conflicts with the language in any other document, the language in this
Agreement controls. 

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

  
 28 

 
			
	Hyperion Therapeutics, Inc.
		
	By:	 	 /s/ Jeff Farrow

	Name:	 	Jeff Farrow
	Title:	 	CFO
	Date:	 	2/14/13

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

  
 29Exhibit 4.5

 Exhibit 4.5 
 PREFERRED STOCK WARRANT 
  

PREFERRED STOCK WARRANT 

 
 NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
OR AN OPINION OF COUNSEL FOR THE HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION. 

WARRANT TO PURCHASE SHARES OF SERIES C PREFERRED STOCK 

Dated: December 22, 2005 
 THIS CERTIFIES THAT, for value received, Oxford Finance Corporation, (“Holder”) is entitled to subscribe for and purchase that number of shares as set forth in paragraph 1 below of the fully
paid and non-assessable Series C Preferred Stock (the “Shares” or the “Preferred Stock”) of Ambit Biosciences Corporation, a Delaware corporation (the “Company”), at the Warrant Price (as hereinafter defined), subject
to the provisions and upon the terms and conditions hereinafter set forth. As used herein, the term “Series C Preferred Stock” shall mean the Company’s presently authorized Series C Preferred Stock, and any stock into which such
Series C Preferred Stock may hereafter be exchanged. 
 1. Warrant Price. The Warrant Price shall be Four Dollars and Thirty Cents ($4.30). The
number of Shares for which this Warrant is exercisable shall be Seven Thousand, Two Hundred Seven (7,207). 
 2. Conditions to Exercise. The
purchase right represented by this Warrant may be exercised at any time, or from time to time, in whole or in part during the term commencing on the date hereof and ending on the earlier of: 

 

	 	(a)	5:00 P.M. Eastern Standard time on the eighth annual anniversary of this Warrant Agreement; or 

 

	 	(b)	the earlier termination of this Warrant pursuant to Section 3(e). 

 In the event that, although the Company shall have given notice of a transaction pursuant to subparagraph [3(e)] hereof, the transaction does not close within 90 days of the day specified by the Company,
unless otherwise elected by the Holder any exercise of the Warrant subsequent to the giving of such notice shall be rescinded and the Warrant shall again be exercisable until terminated in accordance with this Paragraph 2. 

3. Method of Exercise; Payment; Issuance of Shares; Issuance of New Warrant. 

 

	 	(a)	Cash Exercise. Subject to Section 2 hereof, the purchase right represented by this Warrant may be exercised by the Holder hereof, in whole or in part, by
the surrender of this Warrant (with a duly executed Notice of Exercise in the form attached hereto) at the principal office of the Company (as set forth in Section 18 below) and by payment to the Company, by check, of an amount equal to the
then applicable Warrant Price per share multiplied by the number of shares then being purchased. In the event of any exercise of the rights represented by this Warrant, certificates for the shares of stock so purchased shall be in the name of, and
delivered to, the Holder hereof, or as such Holder may direct (subject to the terms of transfer contained herein and upon payment by such Holder hereof of any applicable transfer taxes). Such delivery shall be made within 10 business days after
exercise of the Warrant and at the Company’s expense and, unless this Warrant has been fully exercised or expired, a new Warrant having terms and conditions substantially identical to this Warrant and representing the portion of the Shares, if
any, with respect to which this Warrant shall not have been exercised, shall also be issued to the Holder hereof within 10 business days after exercise of the Warrant. 

 

	 	(b)	 Net Issue Exercise. In lieu of exercising this Warrant pursuant to Section 3(a), Holder may elect to receive shares equal to the value of
this Warrant (or of any portion thereof remaining unexercised) 

  
 Page 1 of 9

 PREFERRED STOCK WARRANT 

 
  

	 	
by surrender of this Warrant at the principal office of the Company together with notice of such election, in which event the Company shall issue to Holder the number of shares of the
Company’s Series C Preferred Stock computed using the following formula: 

  

							
	X	 	=	 	 Y (A-B)
	  	
		 		 	A	  	

 Where X = the number of shares of Series C Preferred Stock to be issued to Holder. 

Y = the number of shares of Series C Preferred Stock purchasable under this Warrant (at the date of such calculation). 

A = the Fair Market Value of one share of the Company’s Series C Preferred Stock (at the date of such calculation). 

B = Warrant Exercise Price (as adjusted to the date of such calculation). 

 

	 	(c)	Fair Market Value. For purposes of this Section 3, Fair Market Value of one share of the Company’s Series C Preferred Stock shall mean:

  

	 	(i)	If the Common Stock is traded on NASDAQ or Over-The-Counter or on an exchange, the per share Fair Market Value for the Series C Preferred Stock will be the average of
the closing bid and asked prices of the Common Stock quoted in the Over-The-Counter Market Summary or the closing price quoted on any exchange on which the Common Stock is listed, whichever is applicable, as published in the Western Edition of The
Wall Street Journal for the ten (10) trading days prior to the date of determination of Fair Market Value multiplied by the number of shares of Common Stock into which each share of Series C Preferred Stock is then convertible; or

  

	 	(ii)	In the event of an exercise in connection with a merger, acquisition or other consolidation in which the Company is not the surviving entity, the per share Fair Market
Value for the Series C Preferred Stock shall be the value to be received per share of Series C Preferred Stock by all Holders of the Series C Preferred Stock in such transaction as determined by the Board of Directors; or 

 

	 	(iii)	In any other instance, the per share Fair Market Value for the Series C Preferred Stock shall be as determined in good faith by the Company’s Board of Directors
unless Holder elects to have such fair market value determined by an appraiser, which election must be made by Holder within ten (10) business days of the date the Company notifies Holder of the fair market value as determined by its Board of
Directors. In the event of such an appraisal, the cost thereof shall be borne by the Holder unless such appraisal results in a fair market value in excess of 115% of that determined by the Company’s Board of Directors, in which event the
Company shall bear the cost of such appraisal. 

 In the event of 3(c)(ii) or 3(c)(iii), above, the
Company’s Board of Directors shall prepare a certificate, to be signed by an authorized Officer of the Company, setting forth in reasonable detail the basis for and method of determination of the per share Fair Market Value of the Series C
Preferred Stock. The Board will also certify to the Holder that, as of the date of the certificate, the per share Fair Market Value set forth in the certificate is applicable to all holders of the Company’s Series C Preferred Stock. Such
certification must be made to Holder at least ten (10) business days prior to the proposed effective date of the merger, consolidation, sale, or other triggering event as defined in 3(c)(ii) and 3(c)(iii). 

  
 Page 2 of 9

 PREFERRED STOCK WARRANT 

 
  

	 	(d)	Automatic Exercise. To the extent this Warrant is not previously exercised, it shall be automatically exercised in accordance with Sections 3(b) and 3(c) hereof
(even if not surrendered) immediately before its expiration. 

  

	 	(e)	Treatment of Warrant Upon Acquisition of Company. 

  

	 	(i)	Upon the written request of the Company, Holder agrees that, in the event of an Acquisition (as defined below) in which the sole consideration is cash, either
(a) Holder shall exercise its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this
Warrant will expire upon the consummation of such Acquisition. The Company shall provide the Holder with written notice of its request relating to the foregoing (together with such reasonable information as the Holder may request in connection with
such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition. 

 

	 	(ii)	Upon written request of the Company, Holder agrees that, in the event of a stock for stock Acquisition of the Company by a publicly traded acquirer if, on the record
date for the Acquisition, the fair market value of the Shares (or other securities issuable upon exercise of this Warrant) is equal to or greater than three (3) times the Warrant Price, Company may require the Warrant to be deemed automatically
exercised and the Holder shall participate in the Acquisition as a holder of the Shares (or other securities issuable upon exercise of the Warrant) on the same terms as other holders of the same class of securities of the Company.

  

	 	(iii)	Upon the closing of any Acquisition other than those particularly described in subsections (i) or (ii) above, the successor entity shall assume the
obligations of the Warrant, and the Warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on
the record date for the Acquisition and subsequent closing. The Warrant Price and/or number of Shares shall be adjusted accordingly. 

  

	 	(iv)	For the purpose of this Warrant, “Acquisition” means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction,
other than in connection with an initial public offering or any transaction or series of transactions principally for bona fide equity financing purposes whereby the company issues (or agrees to issue) equity securities in exchange for cash or
cancellation of indebtedness. 

 4. Representations and Warranties of Holder and Restrictions on Transfer Imposed by the
Securities Act of 1933. 
  

	 	(a)	Representations and Warranties by Holder. The Holder represents and warrants to the Company with respect to this purchase as follows: 

 

	 	(i)	The Holder has substantial experience in evaluating and investing in private placement transactions of securities of companies similar to the Company so that the Holder
is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its interests. 

  

	 	(ii)	 The Holder is acquiring the Warrant and the Shares of Series C Preferred Stock issuable upon exercise of the Warrant and Common Stock issuable upon
conversion thereof 

  
 Page 3 of 9

 PREFERRED STOCK WARRANT 

 
  

	 	
(collectively the “Securities”) for investment for its own account and not with a view to, or for resale in connection with, any distribution thereof. The Holder understands that the
Securities have not been registered under the Securities Act of 1933, as amended (the “Act”) by reason of a specific exemption from the registration provisions of the Act, which depends upon, among other things, the bona fide nature of the
investment intent as expressed herein. In this connection, the Holder understands that, in the view of the Securities and Exchange Commission (the “SEC”), the statutory basis for such exemption may be unavailable if this representation was
predicated solely upon a present intention to hold the Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities or for a period of
one year or any other fixed period in the future. 

  

	 	(iii)	The Holder acknowledges that the Securities must be held indefinitely unless subsequently registered under the Act or an exemption from such registration is available.
The Holder is aware of the provisions of Rule 144 promulgated under the Act (“Rule 144”) which permits limited resale of securities purchased in a private placement subject to the satisfaction of certain conditions, including, in case the
securities have been held for more than one but less than two years, the existence of a public market for the shares, the availability of certain public information about the Company, the resale occurring not less than one year after a party has
purchased and paid for the security to be sold, the sale being through a “broker’s transaction” or in a transaction directly with a “market maker” (as provided by Rule 144(f)) and the number of shares or other securities
being sold during any three-month period not exceeding specified limitations. 

  

	 	(iv)	The Holder further understands that at the time the Holder wishes to sell the Securities there may be no public market upon which such a sale may be effected, and that
even if such a public market exists, the Company may not be satisfying the current public information requirements of Rule 144, and that in such event, the Holder may be precluded from selling the Securities under Rule 144 unless a) a one-year
minimum holding period has been satisfied and b) the Holder was not at the time of the sale nor at any time during the three-month period prior to such sale an affiliate of the Company. 

 

	 	(v)	The Holder has had an opportunity to discuss the Company’s business, management and financial affairs with its management and an opportunity to review the
Company’s facilities. The Holder understands that such discussions, as well as the written information issued by the Company, were intended to describe the aspects of the Company’s business and prospects which it believes to be material
but were not necessarily a thorough or exhaustive description. 

  

	 	(vi)	The Holder is an “accredited investor,” as such term is defined in Rule 501(a) promulgated under the Act. 

 

	 	(b)	Legends. Each certificate representing the Securities shall be endorsed with the following legend: 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED UNLESS COVERED BY AN
EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A “NO ACTION” LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE SECURITIES AND EXCHANGE COMMISSION, OR
(IF REASONABLY REQUIRED BY THE COMPANY) AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION. 
 The Company need not enter into its stock register a transfer of Securities unless the conditions specified in the foregoing legend are satisfied. The Company may also instruct its transfer agent

  
 Page 4 of 9

 PREFERRED STOCK WARRANT 

 
  

 
not to register the transfer of any of the Shares unless the conditions specified in the foregoing legend are satisfied. 

 

	 	(c)	Removal of Legend and Transfer Restrictions. The legend relating to the Act endorsed on a certificate pursuant to paragraph 4(b) of this Warrant and the stop
transfer instructions with respect to the Securities represented by such certificate shall be removed and the Company shall issue a certificate without such legend to the Holder of the Securities if (i) the Securities are registered under the
Act and a prospectus meeting the requirements of Section 10 of the Act is received by the Purchaser or (ii) the Holder provides to the Company an opinion of counsel for the Holder reasonably satisfactory to the Company, or a no-action
letter or interpretive opinion of the staff of the SEC reasonably satisfactory to the Company, to the effect that public sale, transfer or assignment of the Securities may be made without registration and without compliance with any restriction such
as Rule 144. 

 5. Condition of Transfer or Exercise of Warrant. It shall be a condition to any transfer or exercise of
this Warrant that at the time of such transfer or exercise, the Holder shall provide the Company with a representation in writing that the Holder or transferee is acquiring this Warrant and the shares of Series C Preferred Stock to be issued upon
exercise, for investment purposes only and not with a view to any sale or distribution, or will provide the Company with a statement of pertinent facts covering any proposed distribution and a written agreement that such Holder or transferee agrees
to be bound by the provisions of this Warrant. As a further condition to any transfer of this Warrant or any or all of the shares of Series C Preferred Stock issuable upon exercise of this Warrant, other than a transfer registered under the Act, the
Company must have received a legal opinion, in form and substance satisfactory to the Company and its counsel, reciting the pertinent circumstances surrounding the proposed transfer and stating that such transfer is exempt from the registration and
prospectus delivery requirements of the Act. Each certificate evidencing the shares issued upon exercise of the Warrant or upon any transfer of the shares (other than a transfer registered under the Act or any subsequent transfer of shares so
registered) shall, at the Company’s option, contain a legend in form and substance satisfactory to the Company and its counsel, restricting the transfer of the shares to sales or other dispositions exempt from the requirements of the Act,

 As further condition to each transfer, the Holder shall surrender this Warrant to the Company and the transferee shall
receive and accept a Warrant, of like tenor and date, executed by the Company. 
 6. Stock Fully Paid; Reservation of Shares. All Shares
which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be fully paid and non-assessable, and free from all taxes, liens, and charges with respect to the issue thereof. During the period within which the
rights represented by this Warrant may be exercised, the Company will at all times have authorized, and reserved for issuance upon exercise of the purchase rights evidenced by this Warrant, a sufficient number of shares of its Series C Preferred
Stock to provide for the exercise of the rights represented by this Warrant. 
 7. (a) Adjustment for Certain Events. In the event of
changes in the outstanding Series C Preferred Stock by reason of stock dividends, split-ups, recapitalizations, reclassifications, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like,
the number and class of shares available under the Warrant in the aggregate and the Warrant Price shall be correspondingly adjusted, as appropriate, by the Board of Directors of the Company. The adjustment shall be such as will give the Holder of
this Warrant upon exercise for the same aggregate Warrant Price the total number, class and kind of shares as it would have owned had the Warrant been exercised prior to the event and had it continued to hold such shares until after the event
requiring adjustment. Notwithstanding the foregoing, the Holder agrees that no further adjustment to the Warrant Price or the Shares issuable hereunder shall be made in connection with the 1 for 10 reverse split effected pursuant to the Amended and
Restated Certificate of Incorporation filed on or about the date of issuance of this Warrant. 
 (b) Other Anti-dilution
Protections. Additional anti-dilution rights applicable to the Series C Preferred Stock purchasable hereunder upon exercise of the Warrant are as set forth in the Certificate of Incorporation as may be amended from time to time. Such
anti-dilution rights may be restated, amended, modified or waived in any manner from time to time, as permitted by the Certificate of Incorporation, except that which may be adverse to the Holder hereof and different from other holders of Series C
Preferred Stock without the Holder’s written consent. The 

  
 Page 5 of 9

 PREFERRED STOCK WARRANT 

 
  

 
Company shall promptly provide the Holder with any restatement, amendment, modification or waiver of the Certification of Incorporation. Notwithstanding the foregoing, any inadvertent failure of
the Company to promptly provide Holder with any restatement, amendment, modification or waiver to the Certificate of Incorporation shall not constitute a default under the Master Security Agreement between Company and Holder dated November 15,
2002. 
 8. Notice of Adjustments. Whenever any Warrant Price shall be adjusted pursuant to Section 7 (a) hereof or on request
of the Holder, the Company shall prepare a certificate signed by its president or chief financial officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was
calculated, and the Warrant Price and number of shares issuable upon exercise of the Warrant after giving effect to such adjustment, and shall cause copies of such certificate to be mailed (by certified or registered mail, return receipt required,
postage prepaid) within thirty (30) days of such adjustment to the Holder of this Warrant as set forth in Section 19 hereof. 
 9.
“Market Stand-Off” Agreement. Holder hereby agrees that for a period of up to 180 days following the effective date of the first registration statement of the Company covering common stock (or other securities) to be sold on its
behalf of the Company in an underwritten public offering, it will not, to the extent requested by the Company and any underwriter, sell or otherwise transfer or dispose of (other than to designees or transferees who agree to be similarly bound) any
of the Shares at any time during such period except common stock included in such registration; provided, however, that all officers and directors of the Company who hold securities of the Company or all other persons who own at least one percent
(1%) of the Company’s outstanding voting equity securities enter into similar agreements. 
 10. Transferability of Warrant.
This Warrant is transferable on the books of the Company at its principal office by the registered Holder hereof upon surrender of this Warrant properly endorsed, subject to compliance with Section 5 and applicable federal and state securities
laws. The Company shall issue and deliver to the transferee a new Warrant representing the Warrant so transferred. Upon any partial transfer, the Company will issue and deliver to Holder a new Warrant with respect to the Warrant not so transferred.
Holder shall not have any right to transfer any portion of this Warrant to any direct competitor of the Company. 
 11. [Paragraph intentionally
omitted] 
 12. No Fractional Shares. No fractional share of Series C Preferred Stock will be issued in connection with any exercise
hereunder, but in lieu of such fractional share the Company shall make a cash payment therefor upon the basis of the Warrant Price then in effect. 
 13. Charges, Taxes and Expenses. Issuance of certificates for shares of Series C Preferred Stock upon the exercise of this Warrant shall be made without charge to the Holder for any United States
or state of the United States documentary stamp tax or other incidental expense with respect to the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the
Holder. 
 14. No Shareholder Rights Until Exercise. This Warrant does not entitle the Holder hereof to any voting rights or other rights
as a shareholder of the Company prior to the exercise hereof. 
 15. Registry of Warrant. The Company shall maintain a registry showing
the name and address of the registered Holder of this Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its terms, at such office or agency of the Company, and the Company and Holder shall be entitled to rely in
all respects, prior to written notice to the contrary, upon such registry. 
 16. Loss, Theft, Destruction or Mutilation of Warrant. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft, or destruction, of indemnity reasonably satisfactory to it, and, if mutilated, upon
surrender and cancellation of this Warrant, the Company will execute and deliver a new Warrant, having terms and conditions substantially identical to this Warrant, in lieu hereof. 

  
 Page 6 of 9

 PREFERRED STOCK WARRANT 

 
  

 17. Miscellaneous. 

 

	 	(a)	Issue Date. The provisions of this Warrant shall be construed and shall be given effect in all respect as if it had been issued and delivered by the Company on
the date hereof. 

  

	 	(b)	Successors. This Warrant shall be binding upon any successors or assigns of the Company. 

 

	 	(c)	Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia. 

 

	 	(d)	Headings. The headings used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.

  

	 	(e)	Saturdays, Sundays, Holidays. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a
Saturday or a Sunday or shall be a legal holiday in the Commonwealth of Virginia., then such action may be taken or such right may be exercised on the next succeeding day not a legal holiday. 

18. No Impairment. The Company shall not by any action including, without limitation, amending its Sections or articles of incorporation or
by-laws, any reorganization, transfer of assets, consolidation, merger, share exchange dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of the Warrants
or impair the ability of the Holder(s) to realize upon the intended economic value hereof, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate to
protect the rights of the Holder(s) hereof against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any shares of Series C Preferred Stock issuable upon the exercise of the
Warrants above the amount payable therefor upon such exercise, (b) take all such action as may be necessary or appropriate in order that the Company may validly issue fully paid and non-assessable shares of Series C Preferred Stock upon the
exercise of the Warrants, (c) obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under the Warrants and
(d) not reclassify or convert common stock and (f) not take or permit to be taken any action which would have the effect of shortening the period provided herein for exercise of the Warrants. 

19. Addresses. Any notice required or permitted hereunder shall be in writing and shall be mailed by overnight courier, registered or certified
mail, return receipt required, and postage pre-paid, or otherwise delivered by hand or by messenger, addressed as set forth below, or at such other address as the Company or the Holder hereof shall have furnished to the other party. 

 

			
	If to the Company:	  	Ambit Biosciences Corporation
		  	4215 Sorrento Valley Blvd.
		  	San Diego, CA 92121
		  	Attn: Chief Financial Officer
		
	If to the Holder:	  	Oxford Finance Corporation
		  	133 N. Fairfax Street
		  	Alexandria, VA 22314
		  	Attn: Chief Financial Officer

 [SIGNATURE APPEARS ON PAGE 8] 

  
 Page 7 of 9

 PREFERRED STOCK WARRANT 

 
  

 PREFERRED STOCK WARRANT 
 IN WITNESS WHEREOF, Ambit Biosciences Corporation has caused this Warrant to be executed by its officers thereunto duly authorized. 
 Dated as of December 22, 2005. 
  

			
	AMBIT BIOSCIENCES CORPORATION
	a Delaware corporation
		
	By:	 	 /s/ M. Salka

		
	Name:	 	M Salka
		
	Title:	 	CEO

  
 Page 8 of 9

 PREFERRED STOCK WARRANT 

 
  

 NOTICE OF EXERCISE 

TO: 
 Ambit
Biosciences Corporation 
 4215 Sorrento Valley Blvd. 
 San Diego, CA 92121 
 Attn: Chief Financial Officer 

1. The undersigned Warrantholder (“Holder”) elects to acquire shares of the Series C Preferred Stock (the “Preferred Stock”) of
Ambit Biosciences Corporation, (the “Company”), pursuant to the terms of the Stock Purchase Warrant dated
                    , 2005, (the “Warrant”). 
 2. The Holder exercises its rights under the Warrant as set forth below: 
  

	 	(    )	The Holder elects to purchase                      shares of
Series C Preferred Stock as provided in Section 3(a), (c) and tenders herewith a check in the amount of $             as payment of the purchase price.

  

	 	(    )	The Holder elects to convert the purchase rights into shares of Series C Preferred Stock as provided in Section 3(b) of the Warrant. 

3. The Holder surrenders the Warrant with this Notice of Exercise. 
 4. The Holder represents that it is acquiring the aforesaid shares of Series C Preferred Stock for investment and not with a view to, or for resale in connection with, distribution and that the Holder has
no present intention of distributing or reselling the shares. 
 Holder acknowledges and agrees to be bound by the provisions of the Warrant,
including, without limitation, the Market Stand-off Agreement contained therein. 
 5. Please issue a certificate representing the shares of the
Series C Preferred Stock in the name of the Holder or in such other name as is specified below: 
  

					
	Name:	 	  
	  	
			
	Address:	 	  
	  	
			
	Taxpayer I.D.:	 	  
	  	

  

			
		 	Oxford Finance Corporation
		
	By:	 	  

		
	Name:	 	  

		
	Title:

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