Document:

Exhibit 10.3

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE
AGREEMENT (this “Agreement”) is made as of February 12, 2015, by and between Retrophin, Inc.,
a Delaware corporation (“Retrophin” or “Seller”) and Turing Pharmaceuticals
AG, a stock corporation organized under the laws of Switzerland (“Buyer”).  Buyer and Seller
may be referred to herein collectively as the “Parties” and individually as a “Party.”

 

RECITALS

 

WHEREAS, Buyer is interested
in acquiring from Seller the Assets (as defined in Section 2.1 below) related to Syntocinon (the “Product”)
developed pursuant to that certain License Agreement made as of December 12, 2013 by and between Novartis Pharma AG and Novartis
AG (collectively, “Novartis”) and Seller (the “Novartis Agreement”).

 

WHEREAS, Seller desires
to assign all of its rights, interests and obligations under the Novartis Agreement and convey all of the Assets to Buyer, and
Buyer desires to purchase the Assets from Seller and assume the Product rights, interests and obligations under the Novartis Agreement,
all on the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of these premises, the respective covenants of Buyer and Seller set forth below and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE
1

DEFINITIONS

 

1.1          Definitions.  In
addition to the other capitalized terms defined herein, the following capitalized terms shall have the following respective meanings:

 

“Affiliate”
means, with respect to any Party, any Person that, directly or indirectly, controls, is controlled by, or is under common control
with such Party at any time during the period for which the determination of affiliation is being made.  For the purposes
of this definition, “control” (with correlative meanings for the terms “controlled by”
and “under common control with”) means the possession by the applicable Person, directly or indirectly,
of the power to direct or cause the direction of the management, policies and business affairs of a Person, whether through ownership
of voting securities or general partnership or managing member interests, by contract or otherwise.

 

“Applicable Laws”
means all applicable laws, rules, regulations and guidelines that may apply to the development, manufacture, use, sale, offer for
sale or distribution of Product, or the performance of any Party’s obligations under this Agreement.

 

“Business Day”
means any day other than a Saturday, Sunday or a day on which banking institutions in the State of New York are authorized or obligated
by law or executive order to close.

 

    	 

    	 

    

 

“Confidential
Information” means any information that (i) in any way relates to a Party or Affiliate thereof, including its products,
business, know-how, business strategies and technology and (ii) is furnished or disclosed to the other Party in connection with
this Agreement, and is identified as “confidential” (or words of similar import) upon such disclosure; provided, however,
that the term “Confidential Information” shall not include any specific information that:

 

(A)         at
the time of disclosure, is generally available to the public;

 

(B)         after
disclosure hereunder, becomes generally available to the public, except as a result of a breach of this Agreement by the recipient
of such information;

 

(C)         becomes
available to the recipient of such information from a Third Party that is not legally or contractually prohibited by the disclosing
Party from disclosing such Confidential Information; or

 

(D)         the
recipient of which can demonstrate was developed by or for such recipient without the use of any of the Confidential Information
of the disclosing Party or its Affiliates hereunder.

 

“Liens”
means any mortgages, security interests, liens, options, pledges, equities, claims, charges, restrictions, conditions, conditional
sale contracts and any other adverse interests or other encumbrances of any kind whatsoever.

 

“Person”
means any individual, partnership, association, corporation, limited liability company, trust or other legal person or entity.

 

“Territory”
means the United States and its territories and possessions.

 

“Third
Party” means any Person other than a Party and such Party’s Affiliates.

 

1.2          Interpretation.  Unless
the context of this Agreement otherwise requires (a) words of any gender include each other gender, (b) words using the
singular or plural number also include the plural or singular number, respectively, (c) the terms “hereof,” “herein,”
“hereby” and derivative or similar words refer to this entire Agreement, (d) the terms “Article,”
“Section” and “Exhibit” refer to the specified Article, Section and Exhibit of this Agreement and (e) the
terms “include,” “includes” or “including,” shall be deemed to be followed by the words “without
limitation” unless otherwise indicated.  Whenever this Agreement refers to a number of days, unless otherwise specified,
such number shall refer to calendar days.  The headings in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.

 

ARTICLE
2

SALE AND PURCHASE OF purchased ASSETS

 

2.1          Conveyance
of Assets.  Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Seller shall irrevocably
sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase, acquire and accept, free and clear of any and all
Liens, all

 

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right, title and interest
of Seller in and to the Novartis Agreement and the following assets related to the Product in the Territory (collectively, the
“Assets”):

 

(a)          Market
research and forecast – milk let down;

 

(b)          Synopsis
– low birth weight infants;

 

(c)          Synopsis
– phase 1 study;

 

(d)          Briefing
document and FDA minutes;

 

(e)          Number
of investigator proposals for other indications;

 

(f)          450
nasal spray vials of active and 450 nasal spray vials of placebo currently at Kydes;

 

(g)          17,500
nasal spray vials of placebo and in-process run for 17,500 nasal spray vials; and 

 

(h)          Pending
order of 28g of raw material.

 

2.2          Assumed
Liabilities.  Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Buyer shall assume,
be responsible for and pay, perform and discharge when due the liabilities expressly set forth below (the “Assumed
Liabilities”):

 

(a)          The
Three Million Dollar ($3,000,000) annual milestone payment arising under Section 10.1(b) of the Novartis Agreement that was due
on December 12, 2014;

 

(b)          Any
and all liabilities of Seller arising under the Novartis Agreement that accrue from and after the Closing Date; and 

 

(c)          The
cost of items (g) and (h) in Section 2.1 above.

 

2.3          Excluded
Liabilities.  Except for the Assumed Liabilities, Buyer shall not assume or be liable for any liabilities of Seller
or its respective Affiliates (fixed, contingent or otherwise, and whether or not accrued) arising from or related to the Product,
the Assets or otherwise (the “Excluded Liabilities”).

 

2.4          Transfer
Taxes and Fees.  Any and all sales, excise, use, value-added and similar taxes, fees or duties assessed or incurred
by reason of the sale by Seller and the purchase by Buyer of the Assets hereunder shall be paid by Seller (and not by Buyer), regardless
of which Party against which such taxes, fees or duties are assessed.

 

ARTICLE
3

Consideration  

 

3.1          Consideration.  Subject
to the terms and conditions of this Agreement, the consideration (the “Consideration”) for the
transfer and conveyance of the Assets to Buyer in accordance with Article 2 shall be One Million Dollars ($1,000,000) plus One
Hundred Ten

 

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Thousand Nine Hundred Thirty
One and 20/100 Dollars ($110,931.20), representing the cost of items (g) and (h) in Section 2.1 above, payable by wire transfer
of immediately available funds to the account or accounts designated in writing by Seller.

 

3.2          Allocation
of Consideration.  The Consideration shall be allocated among the Assets as of the Closing Date in accordance with
Applicable Laws.  The Parties each agree to (a) report (and to cause its respective Affiliates to report) the transactions
contemplated by this Agreement in a manner consistent with Applicable Law and with the terms of this Agreement and (b) not to take
any position inconsistent therewith in any tax return, in any tax refund claim, in any litigation or otherwise.  For
tax purposes, the Parties each agree to treat the transfer of the Assets to Buyer in part as a sale of the Assets to Buyer and
in part as a contribution of the Assets to Buyer under Section 721 of the U.S. Internal Revenue Code (and comparable provisions
of applicable U.S., state, local and non-U.S. tax laws).

 

ARTICLE
4

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller hereby represents
and warrants to Buyer as follows:

 

4.1          Organization;
Subsidiary.  Seller is a business entity duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is formed or incorporated.  Seller has the requisite power and authority to
own, lease and operate the properties now owned, leased and operated by it and to carry on its business as currently conducted.  Seller
is duly qualified to do business as a foreign entity in each jurisdiction in which the nature of its business or the character
of its properties makes such qualification necessary, except where the failure to do so would not have a material adverse effect
on Seller or any of the Assets.  

 

4.2          Authority
and Enforceability.  Seller has the requisite power and authority to enter into this Agreement and
each of the Bill of Sale and the Assignment and Assumption Agreement (as such terms are defined in Section 6.2) to which each is
a party (collectively the “Ancillary Agreements”), and to perform its obligations hereunder and thereunder.  Seller
has taken all necessary action on its part to authorize the execution and delivery of this Agreement and each Ancillary Agreement
to which it is a party and the performance of its obligations hereunder and thereunder.  This Agreement and each Ancillary
Agreement to which it is a party has been duly and validly executed and delivered by Seller and is the legal, valid and binding
obligation of Seller, enforceable against Seller in accordance with its terms.

 

4.3          No
Violation, Etc.  The execution and delivery of this Agreement and each Ancillary Agreement to which it is
a party, and the performance of the obligations hereunder and thereunder by Seller does not and will not (a) violate or conflict
with any provision of the charter documents of Seller, (b) violate, or conflict with, or result in a breach of any provision
of, or constitute a default or give rise to any right of termination, cancellation or acceleration (with the passage of time, notice
or both) under any agreement, lease, instrument, obligation, understanding or arrangement, oral or written, to which Seller is
a party or by which any of Seller’s properties or assets is subject, including the Assets, (c) violate any Applicable
Law to

 

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which Seller or any of its
properties or assets are subject or (d) result in any Lien on the Assets.  Without limiting the foregoing, Seller
has not granted any right to any Third Party which would conflict with the conveyance of the Assets to Buyer.

 

4.4          No
Consents and Approvals.  Except for the consents of Novartis and Athyrium Capital Management as provided in
Section 4.7, no permit, consent, approval or authorization of, or notice, declaration, filing or registration with, any governmental
authority or Third Party is or will be necessary in connection with the execution and delivery by Seller of this Agreement and
each Ancillary Agreement to which it is a party or the performance by Seller of its obligations hereunder and thereunder.

 

4.5          Litigation.  There
is no litigation, proceeding, investigation, arbitration or claim pending against Seller or, to Seller’s knowledge, threatened
with respect to the Assets or the transactions contemplated herein.

 

4.6          Assets.  Seller
has, and on the Closing Date will convey and transfer to Buyer hereby, good, complete and legal title to each and all of the Assets,
free and clear of any and all Liens.  

 

4.7          Assigned
Contract.  Seller has delivered to Buyer a true, correct and complete copy of the Novartis Agreement (the
“Assigned Contract”) (including amendments thereto).  The Assigned Contract is a valid and
binding obligation of the parties thereto, enforceable in accordance with its terms.  Except for the non-payment of the
amount referred to in Section 2.2(a) hereof, (a) Seller has duly performed all of its obligations under the Assigned Contract to
the extent that such obligations to perform have accrued, (b) no breach or default, alleged breach or default, or event which would
(with the passage of time, notice or both) constitute a breach or default thereunder has occurred and (c) Seller has not received
any notice of default or breach (written or oral) under the Assigned Contract.  The execution, delivery and performance
of this Agreement or any Ancillary Agreement and consummation of the transactions contemplated hereby and thereby will not result
in a breach of or default under the Assigned Contract, will not terminate of modify any rights of, or accelerate or augment any
obligation of, Seller under the Assigned Contract and do not require any consent, approval, waiver or other action by any party
to the Assigned Contract, except for the consent to assign the Assigned Contract  by Novartis.  In accordance
with the terms of this Agreement, at the Closing, Seller’s rights under the Assigned Contract shall be assigned hereby to
Buyer, and Buyer shall have the right to exercise the rights and privileges of Seller under the Assigned Contract pursuant to its
terms.

 

4.8          Solvency.  Upon
and immediately following the Closing Date, after giving effect to all of the transactions contemplated by and in this Agreement
(including the payment of the Closing Date Payment and the assumption by Buyer of the Assumed Liabilities in accordance herewith),
Seller will not be insolvent and Seller will have sufficient capital to continue in business and pay its debts as they become due.

 

4.9          Exclusive
Representations and Warranties.         Other than the express representations
and warranties set forth in this Article 4 or in any Ancillary Agreement, Seller is not making any representations or warranties,
express or implied.

 

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ARTICLE
5

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents
and warrants to Seller as follows:

 

5.1          Organization.  Buyer
is a stock corporation organized, validly existing and in good standing under the laws of Switzerland.  Buyer has the
requisite power and authority to own, lease and operate the properties now owned, leased and operated by it and to carry on its
businesses as currently conducted.  Buyer is duly qualified to do business as a foreign entity in each jurisdiction in
which the nature of its business or the character of its properties makes such qualification necessary, except where the failure
to do so would not have a material adverse effect on Buyer.

 

5.2          Authority
and Enforceability.  Buyer has the requisite power and authority to enter into this Agreement and each Ancillary
Agreement to which it is a party and to perform its obligations hereunder and thereunder.  Buyer has taken all necessary
action on its part to authorize the execution and delivery of this Agreement and each Ancillary Agreement to which it is a party
and the performance of its obligations hereunder and thereunder.  This Agreement and each Ancillary Agreement to which
it is a party has been duly and validly executed and delivered by Buyer and is the legal, valid and binding obligation of Buyer,
enforceable against Buyer in accordance with its terms.

 

5.3          No
Violation, Etc.  The execution and delivery of this Agreement and each Ancillary Agreement to which it is
a party and the performance of the obligations hereunder and thereunder by Buyer does not and will not (a) violate or conflict
with any provision of the charter documents of Buyer, (b) violate, or conflict with, or result in a breach of any provision
of, or constitute a default or give rise to any right of termination, cancellation or acceleration (with the passage of time, notice
or both) under any agreement, lease, instrument, obligation, understanding or arrangement, oral or written, to which Buyer or any
of its Affiliates is a party or by which any of Buyer’s properties or assets is subject or (c) violate any Applicable
Law to which Buyer or any of its properties or assets are subject.

 

5.4          No
Consents and Approvals.  No permit, consent, approval or authorization of, or notice, declaration, filing
or registration with, any governmental authority or Third Party is or will be necessary in connection with the execution and delivery
by Buyer of this Agreement and each Ancillary Agreement to which it is a party or the performance by Buyer of its obligations hereunder
and thereunder.

 

5.5          Litigation.  There
is no litigation, proceeding, investigation, arbitration or claim pending against Buyer or its Affiliates or, to Buyer’ knowledge,
threatened with respect to the transactions contemplated herein.

 

5.6          Exclusive
Representations and Warranties.         Other than the express representations
and warranties set forth in this Article 5 or in any Ancillary Agreement, Buyer is not making any representations or warranties,
express or implied.

 

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ARTICLE
6

CLOSING

 

6.1          Closing.  The
consummation of the transactions contemplated herein (the “Closing”) will take place on the date hereof
at the offices of Reitler Kailas & Rosenblatt LLC, 885 Third Avenue, New York, New York 10022, or at such other time and place
as agreed to by Buyer and Seller in writing.  The date on which the Closing actually occurs is referred to herein as
the “Closing Date”.

 

6.2          Closing
Deliverables.

 

(a)          Seller’s
Deliverables.  At the Closing, Seller shall deliver or have delivered to Buyer the following:

 

(i)          A
Certificate, in a form reasonably satisfactory to Buyer, executed by an executive officer of Seller and dated as of the Closing
Date, certifying that (A) each of the representations and warranties of Seller set forth in this Agreement is true and correct
as of the Closing Date as though made on and as of the Closing Date, and (B) Seller has performed or complied with all obligations,
conditions and covenants required to be performed by it under this Agreement at or prior to the Closing.

 

(ii)         Bill
of Sale, executed by Seller and dated as of the Closing Date, in the form of Exhibit A hereto (the “Bill
of Sale”);    

 

(iii)        Assignment
and Assumption Agreement related to the Assigned Contract, executed by Seller and dated as of the Closing Date, in the form of
Exhibit B hereto (the “Assignment and Assumption Agreement”); and

 

(iv)        The
consent from Athyrium Capital Management set forth in Section 4.4.  

 

(b)          Buyer’s
Deliverables. At the Closing, Buyer shall have delivered to Seller the following:

 

(i)          A
Certificate, in a form reasonably satisfactory to Seller, executed by an executive officer of Buyer and dated of the Closing Date,
certifying that (A) each of the representations and warranties of Buyer set forth in this Agreement is true and correct, in all
material respects, as of the Closing Date as though made on and as of the Closing Date, and (B) Buyer has performed or complied
with, in all material respects, all obligations, conditions and covenants required to be performed by it under this Agreement at
or prior to the Closing;

 

(ii)         Assignment
and Assumption Agreement, executed by Buyer and dated as of the Closing Date;  

 

(iii)        Buyer’s
arrangements for collection of the Assets;

 

(iv)        The
consent from Novartis set forth in Section 4.4.

 

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6.3          Conditions
to Obligations of Buyer.  The obligations of Buyer to purchase the Assets, to assume the Assumed Liabilities and
to consummate the other transactions contemplated by this Agreement are subject to the satisfaction on and as of the Closing Date
of each of the following conditions (or Buyer’s expressed waiver of such condition in writing):

 

(a)          Representations
and Warranties.  The representations and warranties of Seller set forth in this Agreement shall be true and correct,
in all material respects, as of the Closing Date.

 

(b)          Performance
of Obligations of Seller.  Seller shall have performed or complied in all material respects with all obligations,
conditions and covenants required to be performed by it under this Agreement at or prior to the Closing.

 

(c)          Consents.  The
consents set forth in Section 4.4 shall have been obtained from Novartis and Athyrium Capital Management.

 

(d)          No
Injunction.  There shall not have been issued and in effect any injunction or similar legal order prohibiting or
restraining consummation the transaction contemplated by this Agreement.

 

(e)          Closing
Deliverables.  On or before the Closing, Buyer shall have received from Seller each of the deliverables set forth
in Section 6.2(a) above.

 

6.4          Conditions
to the Obligations of Seller.  The obligations of Seller to sell, assign, convey and deliver the Assets hereof are
subject to the satisfaction on and as of the Closing of each of the following conditions (or Seller’s expressed waiver of
such condition in writing):

 

(a)          Representations
and Warranties.  The representations and warranties of Buyer set forth in this Agreement shall be true and correct
in all material respects as of the Closing.

 

(b)          Performance
of Obligations of Buyer.  Buyer shall have performed in all material respects all obligations required to be performed
by it under this Agreement at or prior to the Closing Date. 

 

(c)          Consents.  The
consents set forth in Section 4.4 shall have been obtained from Novartis and Athyrium Capital Management.

 

(d)          No
Injunction.  There shall not have been issued and in effect any injunction or similar legal order prohibiting or
restraining consummation the transaction contemplated by this Agreement.

 

(e)          Closing
Deliverables.  On or before the Closing, Seller shall have received from Buyer each of the deliverables set forth
in Section 6.2(b) above.

 

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ARTICLE
7

Post-Closing Covenants and Agreements

 

7.1          Additional
Deliveries.  For no additional consideration, from time to time, on and after the Closing Date, at Buyer’s
request, Seller shall execute and deliver such additional or confirmatory instruments, documents of conveyance, endorsements, assignments
and acknowledgments as are necessary to evidence or vest in Buyer sole and exclusive title in and to the Assets.

 

7.2          Intentionally
Omitted.

 

7.3          Intentionally
Omitted.

 

7.4          Intentionally
Omitted.

 

7.5          Technology
Transfer.  Seller agrees to provide its personnel as reasonably requested by Buyer to assist Buyer in the transfer
of the Assets and technology related to the Assets to Buyer or such third parties as Buyer may designate (the “Tech
Transfer”).  Buyer shall bear all costs related to the Tech Transfer at a rate of One Hundred Thousand
Dollars ($100,000) per Seller employee full-time equivalent.  Any Tech Transfer costs hereunder and under any other asset
purchase agreement between Seller and Buyer in excess of Twenty-Five Thousand Dollars ($25,000) in the aggregate shall require
the prior written approval of Buyer.  Seller’s obligation to provide Tech Transfer assistance shall terminate on
the six (6) month anniversary of the Closing Date.

 

ARTICLE
8

INDEMNIFICATION

 

8.1          By
Seller.  From and after the Closing Date, to the extent provided in this Article 8, Seller shall indemnify,
defend and hold harmless Buyer and its Affiliates and their respective officers, directors, employees, agents, successors and assigns
from and against any claims, suits or proceedings and any damages or liability therefrom or settlement thereof (including reasonable
fees of attorneys and related costs) to the extent arising out of or related to (a) any breach of any representation, warranty,
covenant or agreement of Seller contained in herein and (b) any Excluded Liability.

 

8.2          By
Buyer.  From and after the Closing Date, to the extent provided in this Article 8, Buyer shall indemnify,
defend and hold harmless Seller and its Affiliates and their respective officers, directors, employees, agents, successors and
assigns from and against any claims, suits or proceedings and any damages or liability therefrom or settlement thereof (including
reasonable fees of attorneys and related costs) to the extent arising out of or related to (a) any breach of any representation,
warranty, covenant or agreement of Buyer contained in this Agreement and (b) any Assumed Liability.

 

8.3          Indemnification
Procedures.  A Party (the “Indemnitee”) that intends to claim indemnification under this
Article 8 shall promptly notify the other Party (the “Indemnitor”) in writing of any action, claim or
liability in respect to which the Indemnitee or any of its Affiliates or its or their respective officers, directors, employees
or agents intends to claim such

 

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indemnification.  The
Indemnitee shall permit and shall cause its employees and agents to permit, the Indemnitor, at its discretion, to settle any such
action, claim or liability and agrees to the complete control of such defense or settlement by the Indemnitor; provided, however,
that such settlement does not materially and adversely affect the Indemnitee’s rights hereunder or impose any obligations
on the Indemnitee in addition to those set forth herein.  No such action, claim or liability shall be settled by the
Indemnitee without the prior written consent of the Indemnitor (which consent shall not be unreasonably withheld, delayed or conditioned),
and the Indemnitor shall not be responsible for any fees or other costs incurred other than as provided herein.  The
Indemnitee, its employees, agents and Affiliates shall cooperate fully with the Indemnitor and its legal representatives in the
investigation and defense of any action, claim or liability covered by this indemnification.  The Indemnitee shall have
the right, but not the obligation to be represented by counsel of its own selection at its own expense.

 

ARTICLE
9

DISPUTE RESOLUTION 

 

9.1          Arbitration.  

 

(a)          Any
dispute arising out of or relating to this Agreement (including the Exhibits and Schedules referenced herein, the Ancillary Agreements
and the other specific agreements contemplated herein or thereby) that cannot be resolved in thirty (30) days through good faith
negotiation and discussion among the Parties shall be finally settled by arbitration administered by the American Arbitration Association
under its Commercial Arbitration Rules then in effect (the “Arbitration Rules”).  The arbitration
shall be conducted in the County and State of New York, unless otherwise agreed by the Parties in writing.  The arbitration
shall be conducted in the English language. 

 

(b)          The
arbitration shall be conducted by a single, neutral arbitrator (“Arbitrator”) selected as follows:  Within
ten (10) days after receipt of an arbitration notice from a Party, the Parties shall attempt in good faith to agree on an Arbitrator.  If
the Parties do not agree on an Arbitrator within ten (10) days after receipt of an arbitration notice, the Parties shall exchange
lists containing the names of three (3) candidates proposed by each Party to serve in such capacity.  No later than the
five (5) days after the exchange of each Party’s list of candidates, each Party shall deliver to the other a list ranking
all six (6) candidates proposed by the Parties in order of preference (one (1) being the most preferred and six (6) being the least
preferred).  The candidate with the lowest aggregate ranking on the Parties’ lists shall serve as the Arbitrator
(with the candidate whose last name comes first alphabetically being chosen in case of a tie).  If any candidate selected
in accordance with the procedures provided in this Section is unable or unwilling to act as the Arbitrator, the candidate whose
ranking is next lowest shall be approached until an Arbitrator is selected.  If none of the candidates proposed by the
Parties is capable or willing to serve as the Arbitrator, the Parties may either agree to repeat the process until an Arbitrator
is selected or, at the election of either Party, proceed in accordance with the Arbitration Rules.  

 

(c)          The
decision or award of the Arbitrator shall be final, binding and incontestable and may be used as a basis for judgment thereon in
any jurisdiction. The Parties hereby expressly agree to waive the right to appeal from the decision of the Arbitrator. 

 

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Accordingly, there shall
be no appeal to any court or other authority (government or private) from the decision of the Arbitrator, and the Parties shall
not dispute nor question the validity of such decision or award before any regulatory or other authority in any jurisdiction where
enforcement action is taken by the Party in whose favor the decision or award is rendered, except in the case the decision or award
was procured by fraud.  The Arbitrator shall, upon the request of either Party, issue a written opinion of the findings
of fact and conclusions of law and shall deliver a copy to each of the Parties.  Each Party shall bear its own costs
and attorneys' fees, and the Parties shall equally bear the fees, costs, and expenses of the Arbitrator and the arbitration proceedings;
provided, however, that the Arbitrator may exercise discretion to award costs, including reasonable and necessary attorneys' fees,
to the prevailing Party.

 

9.2          Jurisdiction/Venue/Enforcement
of Award.  The Parties consent and submit to the exclusive personal jurisdiction and venue of the Supreme Court of
the State of New York and the United States District Court for the Southern District of New York, each located in County of New
York, State of New York, to compel arbitration in accordance with this Agreement, to enforce any arbitration award granted pursuant
to this Agreement, including, any award granting equitable or injunctive relief, and to otherwise enforce this Agreement and carry
out the intentions of the Parties to resolve all disputes arising under or in connection with this Agreement through arbitration.

 

ARTICLE
10

MISCELLANEOUS

 

10.1       Confidentiality.  

 

(a)          Each
Party will treat as confidential the Confidential Information of the other Party, and will take all necessary precautions to assure
the confidentiality of such Confidential Information.  Each Party agrees to return to the other Party upon the expiration
or termination of this Agreement all Confidential Information acquired from such other Party, except as to such information it
may be required to retain under Applicable Laws, and except for one copy of such information to be retained by such Party solely
to enable it to assess its compliance with the confidentiality provisions of this Section 10.1.  From the date hereof
through the period ending ten (10) years after the Closing Date, neither Party shall, without the other Party’s express prior
written consent, use or disclose any such Confidential Information for any purpose other than to carry out its obligations hereunder.  Each
Party, prior to disclosure of Confidential Information of the other Party to any employee, consultant or advisor shall ensure that
such Person is bound in writing to observe the confidentiality such Party’s Confidential Information on terms no less restrictive
than those contained herein.  The obligations of confidentiality shall not apply to Confidential Information that the
receiving Party is required by law or regulation to disclose, provided however that the receiving Party shall so notify the disclosing
Party of its intent and cooperate with the disclosing Party on reasonable measures to protect the confidentiality of the Confidential
Information.  Seller hereby acknowledges and agrees that any Confidential Information of Seller on or before the Closing
Date included in the Assets shall be Buyer’s Confidential Information after the Closing Date. 

 

10.2       Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute a single
document.

 

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10.3       Entire
Agreement.  This Agreement, and the Exhibits and Schedules referenced herein, that certain Summary Separation Proposal
between Retrophin and Buyer’s Chief Executive Officer dated October 13, 2014, the Ancillary Agreements, the other specific
agreements contemplated herein or thereby and that certain Asset Purchase Agreement between Seller, Manchester Pharmaceuticals
LLC and Buyer to be entered into hereafter with respect to Seller’s Vecamyl product contain the entire agreement between
the Parties with respect to the subject matter hereof and supersede all previous agreements, negotiations, discussions, writings,
understandings, commitments and conversations with respect to such subject matter.

 

10.4       Exhibits
and Schedules.  The Exhibits and Schedules referenced herein and attached hereto are incorporated into this Agreement
by reference.

 

10.5       Governing
Law.  This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State
of New York irrespective of the choice of laws principles of the State of New York.

 

10.6       Assignability.  This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.  Neither
Party may assign its respective rights or delegate its respective obligations under this Agreement without the express prior written
consent of the other Party; provided that either Party may assign or transfer this Agreement, to an Affiliate (provided the assigning
Party remains liable hereunder), or to any Third Party in connection with the sale or transfer of the business to which this Agreement
relates.  

 

10.7       Third
Party Beneficiaries.  Nothing in this Agreement shall be deemed to create any third party beneficiary rights in or
on behalf of any other Person.

 

10.8       Notices.  All
notices required to be given hereunder shall be in writing and shall be given by personal delivery, by an internationally recognized
overnight carrier or by registered or certified mail, postage prepaid with return receipt requested.  All notices hereunder
shall be addressed as follows:

 

	 	If to Seller, to:	Retrophin, Inc.
	 	 	12255 El Camino Real 
	 	 	San Diego, CA 92130 
	 	 	Attention:  General Counsel
	 	 	 
	 	If to Buyer, to:	Turing Pharmaceuticals AG
	 	 	101 Avenue of the Americas, 9th Floor
	 	 	New York, New York 10013
	 	 	Attention:  Chief Executive Officer
	 	 	 
	 	With a copy to:	Reitler Kailas & Rosenblatt LLC
	 	 	885 Third Avenue, 20th Floor
	 	 	New York, New York 10022
	 	 	Attention:  Michael Hirschberg, Esq.

 

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Either Party may, by notice
to the other Parties given in the form specified in this Section 10.8, change the address to which such notices are to be
given.  Notices delivered personally shall be deemed communicated as of actual receipt; notices sent via overnight courier
shall be deemed received three (3) Business Days following sending; and notices mailed shall be deemed communicated as of seven
(7) Business Days after mailing.  A Party may change its address by written notice in accordance with this Section 10.8.

 

10.9   
   Severability.  If any provision of this Agreement shall be held invalid,
illegal or unenforceable, the validity, legality or unenforceability of the other provisions of this Agreement shall not be
affected thereby, and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision
as similar as possible to the provision at issue.

 

10.10     Survival.  Except
as expressly set forth herein, the covenants, representations and warranties contained in this Agreement, and liability for the
breach of any obligations contained herein, shall survive the Closing Date and shall remain in full force and effect.

 

10.11     No
Implied Waiver.  No failure or delay on the part of the Parties hereto to exercise any right, power or privilege
hereunder or under any instrument executed pursuant hereto shall operate as a waiver; nor shall any single or partial exercise
of any right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

10.12  
  Amendments.  Any amendment or modification of this Agreement shall only be valid if
made in writing and signed by the Parties hereto. 

 

10.13     Independent
Contractors.  The relationship between Seller on the one hand and Buyer on the other had is that of independent contractors
and nothing herein shall be deemed to constitute the relationship of partners, joint venturers nor of principal and agent between
Seller on the one hand and Buyer on the other hand.

 

10.14     Expenses.  Except
as expressly set forth herein, each Party shall pay all of its own fees and expenses (including all legal, accounting and other
advisory fees) incurred in connection with the negotiation and execution of this Agreement and the arrangements contemplated hereby.

 

10.15     Representation
By Counsel; Interpretation.  Seller and Buyer each acknowledges that it has been represented by its own legal counsel
in connection with this Agreement and the transactions contemplated by this Agreement.  Accordingly, any rule of law,
or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the Party that drafted
it, has no application and is expressly waived.  The provisions of this Agreement shall be interpreted in a reasonable
manner to effect the intent of Seller and Buyer.

 

(SIGNATURE PAGE FOLLOWS)

 

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IN WITNESS WHEREOF, the Parties, intending to
be bound hereby, have executed this Agreement as of the date first written above.

 

	 	“Seller”
	 	 
	 	RETROPHIN, INC.
	 	 	 	 
	 	By: 	/s/ Margaret Valeur-Jensen
	 	 	Name: 	Margaret Valeur-Jensen
	 	 	Title:	General Counsel
	 	 	 	 
	 	“Buyer”
	 	 
	 	TURING PHARMACEUTICALS AG
	 	 	 	 
	 	By: 	/s/ Martin Shkreli
	 	 	Name: 	Martin Shkreli
	 	 	Title:	Chief Executive Officer

 

    	14

    	 

    

 

EXHIBIT A

 

FORM OF BILL OF SALE

 

    	A-1

    	 

    

 

EXHIBIT B

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

    	B-1Exhibit 10.4

 

Execution Version

 

Amendment No. 3 to Credit Agreement

 

This Amendment No. 3 (this
“Amendment”) to that certain Credit Agreement, dated as of June 30, 2014 (as amended by Amendment No. 1
to the Credit Agreement dated as of July 16, 2014, Amendment No. 2 to the Credit Agreement dated as of November 13, 2014 and as
otherwise modified prior to the date hereof, the “Existing Credit Agreement”), by and among Retrophin, Inc.,
as borrower (the “Borrower”), the Lenders from time to time party thereto and U.S. Bank National Association,
as administrative agent and collateral agent (in such capacity, the “Administrative Agent”), is dated as of
January 12, 2015, by and among the Borrower, the Lenders constituting
the Majority Lenders on the signature pages hereto, and the Administrative Agent. Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Existing Credit Agreement.

 

RECITALS

 

WHEREAS, Section 6.07
of the Existing Credit Agreement provides that the Borrower shall not, and shall not permit any of its Subsidiaries to, make or
hold any Investments or Acquisitions other than the Investments and Acquisitions permitted therein; and

 

WHEREAS, the Borrower has
advised the Majority Lenders that it wishes to amend certain clauses of Section 6.07 of the Existing Credit Agreement on
the terms set forth herein and the Majority Lenders have agreed to consent to such amendments.

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the foregoing and the mutual promises and undertakings in this Amendment, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Defined
Terms; References. Unless otherwise specifically defined herein, each term used herein that is defined in the Amended Credit
Agreement (as defined below) has the meaning assigned to such term in the Amended Credit Agreement. Each reference in the Existing
Credit Agreement to “this Agreement”, “hereof”, “hereunder”, “herein” and “hereby”
and each other similar reference, and each reference in any other Loan Document to “the Credit Agreement”, “thereof”,
“thereunder”, “therein” or “thereby” or any other similar reference to the Existing Credit
Agreement shall, from the Amendment Effective Date (as defined below), refer to the Existing Credit Agreement after giving effect
to the amendments herein (the “Amended Credit Agreement”).

 

2.          Amendments.

 

(I) Section 1.01 of
the Existing Credit Agreement is hereby amended by inserting the following definitions therein:

 

“Asklepion
Acquisition” means, the acquisition by the Borrower of certain assets, and the assumption by the Borrower of certain
obligations, related to Asklepion’s Cholic Acid business, pursuant to the Asklepion Acquisition Agreement; provided
that

 

    	 

    	 

    

  

(a) such acquisition is financed
with (x) Cash on hand of the Borrower or such Subsidiary, (y) the proceeds of the sale or issuance of any Capital Stock
by the Borrower or (z) Indebtedness incurred under this Agreement; (b) no Default or Event of Default shall have occurred
and be continuing as of the Asklepion Acquisition Closing Date; (c) as of the Asklepion Acquisition Closing Date, the Borrower
shall be in pro forma compliance with each of the Financial Covenants, determined as of the last day of the most recently ended
Measurement Period; and (d) the representations and warranties of the Loan Parties contained in the Loan Documents, in the Asklepion
Acquisition Agreement and the other documents relating thereto, shall in each case be true and correct in all material respects
on and as of the Asklepion Acquisition Closing Date except to the extent that such representations and warranties specifically
refer to an earlier date, in which case such representations and warranties are true and correct in all material respects as of
such earlier date; provided that any such representation and warranty that is qualified by “materiality”, “material
adverse effect” or similar language shall be true and correct in all respects (after giving effect to any such qualification
therein) as of the Asklepion Acquisition Closing Date or such earlier date, as applicable.

 

“Asklepion
Acquisition Agreement” means that certain Asset Purchase Agreement dated as of January 12, 2015 among Asklepion, as seller
and the Borrower, as purchaser, together with all other documents, instruments, certificates and/or agreements entered into in
connection with or related to the Asklepion Acquisition Agreement, the execution versions of each have been provided to the Administrative
Agent.

 

“Asklepion
Acquisition Closing Date” means the Closing Date (as defined in the Asklepion Acquisition Agreement).

 

“Asklepion”
means Asklepion Pharmaceuticals LLC.

 

(II) Section 6.07
of the Existing Credit Agreement is hereby amended by (i) deleting the text “and” appearing at the end of clause (h)
thereof, (ii) deleting the text “.” appearing immediately following clause (i) thereof and inserting the text “;
and” in lieu thereof and (iii) inserting the following new clause (j):

 

(j) the Asklepion
Acquisition.

 

4.          Conditions
Precedent. This Amendment shall become effective when, and only when, each of the following conditions shall have been satisfied
(the date of satisfaction of such conditions precedent, the “Amendment Effective Date”):

 

(a)          the
Administrative Agent shall have received a counterpart of this Amendment executed by the Borrower and the Majority Lenders;

 

(b)          the
representations and warranties of the Loan Parties contained in the Loan Documents shall be true and correct in all material respects
on and as of the Amendment Effective Date except to the extent that such representations and warranties specifically refer to an
earlier date, in which case such representations and warranties shall be true and correct in all

 

    	2

    	 

    

  

material respects as of such earlier date;
provided that any such representation and warranty that is qualified by “materiality”, “material adverse
effect” or similar language shall be true and correct in all respects (after giving effect to any such qualification therein)
as of the Amendment Effective Date or such earlier date, as applicable;

 

(c)          the
Administrative Agent shall have received payment of all reasonable and documented fees and expenses of counsel for the Administrative
Agent as set forth in Section 9.05 of the Existing Credit Agreement; and

 

(e)          no
Default or Event of Default shall have occurred and be continuing on the Amendment Effective Date, both immediately prior to and
immediately after giving effect to this Amendment.

 

5.          Loan
Document. As of the Amendment Effective Date, this Amendment shall be a Loan Document executed pursuant to the Existing Credit
Agreement, shall constitute a “Loan Document” for all purposes under the Amended Credit Agreement and (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof.

 

6.          Effect
of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise (i) limit, impair,
constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent
or any other party under the Existing Credit Agreement or any other Loan Document, (ii) alter, modify, amend or in any way affect
any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other Loan
Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect or (iii) entitle the
Borrower or any Guarantor to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Existing Credit Agreement or any other Loan Document in similar or different
circumstances. Except as expressly amended or waived hereby, the provisions of the Existing Credit Agreement are and shall remain
in full force and effect.

 

7.          Section
Captions. Section captions used in this Amendment are for convenience of reference only, and shall not affect the construction
of this Amendment.

 

8.          Counterparts.
This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute
one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic
means shall be effective as delivery of a manually executed counterpart of this Amendment.

 

9.          Governing
Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	3

    	 

    

 

IN WITNESS WHEREOF, the parties have caused
this Amendment to be executed in duplicate as of the day and year first above written.

 

	BORROWER:	RETROPHIN, INC.
	 	 	 
	 	By:	/s/ Laura Clague
	 	 	Name: Laura Clague
	 	 	Title: Chief Financial Officer

 

[Signature Page to Amendment No. 3]

 

    	 

    	 

    

 

 

	ADMINISTRATIVE	 	 	 	 
	AGENT:	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	as Administrative Agent
	 	 	 	 
	 	 	By:	/s/ James A. Haney
	 	 	 	Name: James A. Haney
	 	 	 	Title: Vice President

 

[Signature Page to Amendment No. 3]

 

    	 

    	 

    

  

	MAJORITY LENDERS:	 	 
	 	 	 
	 	Athyrium Opportunities Fund (A) LP,
	 	as Lender
	 	 	 
	 	By:	Athyrium Opportunities Associates 

LP, its general partner
	 	 	 
	 	By:	Athyrium Opportunities Associates 

GP LLC, its general partner
	 	 	 
	 	By:	/s/ Jeffrey A. Ferrell
	 	 	Name: Jeffrey A. Ferrell
	 	 	Title: President
	 	 	 
	 	Athyrium Opportunities Fund (B) LP,
	 	as Lender
	 	 	 
	 	By:	Athyrium Opportunities Associates
	 	 	LP, its general partner
	 	 	 
	 	By:	Athyrium Opportunities Associates 

GP LLC, its general partner
	 	 	 
	 	By:	/s/ Jeffrey A. Ferrell
	 	 	Name: Jeffrey A. Ferrell
	 	 	Title: President

 

[Signature Page to Amendment No. 3]

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