Document:

Employment Agreement - Gerry Perez

 Exhibit 10.7 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and executed in California by and between LEINER HEALTH PRODUCTS, INC. (hereinafter
“Company”) and GERRY PEREZ (hereinafter “Employee”), and is effective as of October 15, 2001. 
  

	1.	RECITALS: 

  
 Employee will be employed by virtue of this Agreement by the Company in various capacities including that of Executive Vice President, Chief Operating
Officer. Through such experience Employee will acquire outstanding and special skills and abilities and an extensive background in and knowledge of the Company’s business and the industry in which it is engaged; 
  
 Employee desires the employment with the Company and is willing to become
employed on those terms and conditions set forth below; 
  
 NOW, THEREFORE, in consideration of the recitals above and of the mutual promises and conditions in this Employment Agreement, it is agreed as follows: 
  

	2.	TERM OF EMPLOYMENT: 

  
 Subject to Section 5, the Company hereby employs Employee, and Employee hereby accepts employment with the Company for an Initial Term beginning on
October 15, 2001 and ending October 14, 2004. Following completion of the Initial Term, the Agreement shall extend automatically in one (1) year terms unless, at least sixty (60) days prior to the then-scheduled expiration of the current term
(including the Initial Term) either party gives written notice of non-extension, or Employee’s employment is earlier terminated in accordance with this Agreement. 
  

	3.	DUTIES OF EMPLOYEE: 

  
 Employee shall be employed as Executive Vice President, Chief Operating Officer and shall perform such duties as may, from time to time be assigned by the
Company provided that such duties are reasonably consistent with Employee’s education, experience and background. Employee will report to both the Chief Executive Officer and/or the Board of Directors of the Company. Employee agrees that he
will at all times herein remain loyal and devote his best efforts to the Company’s business, conscientiously performing all duties and obligations required by the terms of this Agreement. Employee agrees to devote his full business time and
energies to Company. Employee agrees that during the term of this Agreement, he shall not directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, board member, director or in
any other individual or representative capacity, engage or attempt to engage in any competitive activity relating to the business, goods and services provided by Company to its customers. Employee shall make full and prompt written disclosure to the
Company of any business opportunity of which he becomes aware and which relates to the business of the Company, its subsidiaries or parent. Employee’s duties shall be performed at Company’s direction and at places Company requires.

  

	4.	COMPENSATION OF EMPLOYEE: 

  
 (a) Regular Salary: 
  
 As compensation for services rendered under this Agreement, during the term of the Agreement, the Company shall pay to Employee a salary in an annualized
amount of three hundred and twenty five thousand dollars ($325,000.00). Said salary may be adjusted as approved by the Compensation Committee of the Board of Directors, in its sole and absolute discretion. Said salary will be paid in accordance with
the Company’s payroll practices, currently weekly and from which shall be deducted all required and customary withholdings in conformity with the payroll policies of the Company in effect from time to time. 
  
 (b) Annual Bonus: 
  
 During the term of this Agreement and except as provided in the immediately
following sentence (relating to the payments of an Annual Bonus for Fiscal Year 2002), in addition to the Regular Salary referenced above, Employee may receive an Annual Target Bonus of 50% of Regular Salary, which shall be payable based on the
achievement of specified performance targets set by the Board of Directors of the Company. For Fiscal Year 2002, Employee’s Annual Bonus shall be based on the Executive Committee Short Term Incentive Plan (which provides for a maximum bonus of
60% of Regular Salary) and will be pro rated based on the number of days Employee is employed by the Company during such Fiscal Year, provided that, Employee shall not receive an Annual Bonus pursuant to this sentence unless Employee is employed by
the Company on the last day of such Fiscal Year. Following the Fiscal Year 2002, Employee must be employed by the Company for the entire Fiscal Year in order to be eligible for an Annual Bonus. 
  
 (c) Vacation and Other Paid Time Off: 
  
 Employee shall be entitled to vacation and other paid time off benefits to
the same extent as other employees of Company in accordance with the vacation policy. 
  
 (d) Reimbursement of Expenses: 
  
 Employee shall be reimbursed for any necessary and reasonable tax deductible expenditures incurred by Employee in the performance of Employee’s duties on behalf of the Company during the term of employment as approved by the Chief
Executive Officer and in accordance with the Company’s Travel Policy. 
  
 (e) Insurance Benefits: 
  
 Employee may participate in group medical insurance pian(s) and other insurance plan(s) in effect during the term of this Agreement to the same extent and under the same terms and conditions as any other employee of Company subject to the
terms of the applicable Plan Documents. 
  
 (f) Stock
Options: 
  
 (i) Upon the closing of the
contemplated recapitalization or as soon as practicable thereafter (the “Grant Date”) and provided that Employee remains employed by the 

  

 2 

 
Company through the Grant Date, Employee will be granted fourteen thousand (14,000) stock options (the “Options”) to purchase shares of the common
stock, par value $.01 per share, of the Company. The Options shall be non-qualified stock options and shall be issued pursuant to, and in accordance with, the Company’s Stock Incentive Plan (the “Plan”), which will be evidenced by one
or more stock option agreements to be entered into by Employee and the Company, pursuant to the Plan. Each Option shall be exercisable at a price equal to one hundred dollars ($100.00). The Options shall vest and become exercisable in four equal
annual installments beginning on the first anniversary of the date hereof, subject to Employee’s continued employment with the Company through the applicable vesting date. 
  
 (ii) Notwithstanding the provisions of Section 4(f)(i), if the closing of the contemplated recapitalization
does not occur within eight months after the date hereof, then as soon as practicable thereafter and subject to approval of the Board of Directors of the Company (the “Board”), the Chief Executive Officer and Employee shall reasonably
agree on the form, amount, and terms and conditions of the long term incentive compensation to be received by Employee in lieu of the Options specified under Section 4(f)(i); provided that Employee remains employed by the Company through the Award
Date. 
  
 (g) Relocation Benefits: 
  
 On or before January 2, 2002 (the “Payment Date”) and subject to Employee’s continued employment by the Company through the Payment Date, Employee shall receive an
amount, in lump sum, equal to one hundred and five thousand dollars ($105,000.00) to cover Employee’s reasonable relocation and moving expenses, and other costs incurred by Employee in connection with his relocation from Florida to California.
In addition, the Company shall also pay Employee’s interim housing costs in California until December 1, 2001. For the avoidance of doubt, the payment of Employee’s interim housing costs by the Company shall be subject to Section 7(j).

  

	5.	TERMINATION: 

  
 (a) This Agreement shall terminate upon the occurrence of any of the following events: 
  
 (i) Disability: 
  
 The Agreement shall terminate in the event the Employee becomes Permanently Disabled or Incapacitated. The term Permanently
Disabled or Incapacitated means having any ailment or condition which prevents the Employee from actively carrying out the duties hereunder for the Company for a consecutive period of one hundred twenty (120) days or for one hundred and twenty (120)
days in any 12-month period. At the expiration of the consecutive one hundred and twenty (120) day period this or the non-contiguous one hundred and twenty (120) day period, Employment Agreement shall be deemed terminated. 
  
 (ii) Death of Employee: 
  
 The Agreement shall terminate automatically in the event of Employee’s
death. 
  

 3 

 (iii) With Cause: 
  
 In the event that termination is based on one or more of the following grounds, termination shall be With Cause. The Company
may terminate this Agreement immediately upon Employee’s conviction of a felony or a crime involving moral turpitude or the conviction of any other crime involving dishonesty, disloyalty or fraud with respect to the Company. The Company may
also terminate this Agreement immediately upon a material breach of this Agreement, a breach of the rules of conduct set forth in the Employee Handbook, or the negligent nonperformance or misperformance of the obligation(s) under this Agreement.

  
 (iv) Without Cause: 
  
 The Company and Employee agree that Employee’s employment with the
Company as referenced in the provisions of this Employment Agreement and all terms and conditions contained herein can be terminated by the Company at any time without Cause. 
  
 (b) Termination Pay: 
  
 (i) In the event Employee is terminated for any reason, the Employee will receive any accrued and unpaid Regular Salary and Bonus.

  
 (ii) In the event Employee is terminated by
Company without Cause (or if the Company gives the Executive a notice of non-extension referred to in Section 2 hereof), and said termination is not the result of death or disability as defined above, Employee is entitled to receive Termination Pay
as follows: (A) twenty four (24) months of continued Regular Salary from the date of termination paid pursuant to the terms of Section 4(a) herein; and (B) a one time payment of an amount equal to the actual bonus paid to Employee pursuant to
Section 4(b) for the year immediately preceding the date of termination of Employee’s employment. In order to be eligible for Termination Pay, Employee must execute a full release in favor of Company as well as its officers, directors,
employees, and shareholders, absolving them from any and all claims, causes of action and liabilities arising out of or, including liabilities related to Employee’s hiring, employment, termination, and/or this Agreement. 
  

	6.	EMPLOYEE COVENANTS 

  
 (a) Covenant of Non-Solicitation: 
  
 During the term of this Agreement and for any period thereafter, Employee, either on his own account or for any person, firm, company, or other entity,
shall not solicit, interfere with, induce, or attempt to induce, any employee of Company to leave their employment with Company or any customer to reduce, withdraw, or withhold business from the Company. 
  
 (b) Covenant of Non-Competition: 
  
 During the term of this Agreement and for a period of two (2) years
thereafter. Employee shall not, except with the prior written consent of the Board, directly or indirectly, own any interest in, operate, join, control or participate as a partner, director, principal, officer, or agent of, enter into the employment
of, act as a consultant to, or perform any services for any entity which has material operations which compete with any vitamin business in any jurisdiction in 

  

 4 

 
which the Company or any of its affiliates is engaged, or in which any of the foregoing has documented plans to become engaged of which Employee has
knowledge at the lime of Employee’s termination of employment. Notwithstanding anything herein to the contrary, the foregoing shall not prevent Employee from acquiring as an investment securities representing not more than two percent (2%) of
the outstanding voting securities of any publicly held corporation. 
  
 (c) Covenant of Non-Disparagement: 
  
 From the
date hereof, and during any period of employment with the Company and at any time thereafter, Employee will not directly or indirectly, engage in any conduct or make any statement, whether in commercial or noncommercial speech, disparaging or
criticizing in any way the Company, any subsidiary thereof, North Castle Partners, L.L.C. (“North Castle”), any affiliate of any of these, or any products or services offered by any of these, nor shall he engage in any other conduct or
make any other statement that could be reasonably expected to impair the goodwill of the Company, any subsidiary thereof, North Castle, or any affiliate of any of these, the reputation of Company products or the marketing of Company products, in
each case except to the extent required by law, and then only after consultation with North Castle to the extent possible. 
  
 (d) Covenant of Non-Disclosure of Confidential or Trade Secret Information: 
  
 Employee agrees that all information communicated to him and/or obtained by him concerning work performed by or for the
Company is confidential. Employee agrees that all of the following shall constitute confidential information: financial data; sales information; customer names and addresses; data regarding potential customers and patrons; pricing; formulas and
processes; data regarding scientific research; cost information; profit margins; personnel information; business plans; budgets; marketing data; information regarding the names, addresses, phone numbers, other personal information, skills and
compensation of Company’s other employees; data concerning forms and contracts used by Company; and any documents generated by Company or by Employee in the course of his employment with Company. Employee agrees that all confidential
information described in this paragraph of this Agreement is and constitutes trade secret information as defined by Cal. Civ. Code § 3426.1, and is the exclusive property of the Company. Employee agrees not to disclose any confidential or trade
secret information of Company to any other person during or following his employment with Company. Employee agrees that the unauthorized use or disclosure of any of Company’s confidential information or trade secrets obtained during or
following his employment with Company constitutes misappropriation as defined by Cal. Civ. Code § 3426.1. Employee agrees not to engage in any misappropriation at any time, whether during or following the completion of his employment with
Company. 
  
 (e) Covenant to Return Confidential Information
and Materials: 
  
 Upon termination of the Employee’s
employment or otherwise at the Company’s request, Employee shall promptly return to Company all confidential information and materials, as defined in Section 6(d), in his possession. Employee agrees that any property situated on Company’s
premises and owned by Company, including computer disks and other storage media, as well as filing cabinets, desks, or other work areas, is subject to inspection by Company’s personnel at any time with or without notice. Upon termination of
Employee’s 

  

 5 

 
employment, Employee shall promptly return to Company all confidential information and materials in his possession, including copies of such materials.

  
 (f) Covenant of Cooperation: 
  
 Employee agrees to cooperate with Company in any litigation or administrative
proceedings involving any matters with which Employee is or was involved during his employment by Company. 
  
 (g) Remedies for Breach of Covenants: 
  
 Notwithstanding any other provision in this Agreement to the contrary, Employee acknowledges and agrees that if he breaches the Covenant of
Non-Solicitation, Covenant of Non-Competition, Covenant of Non-Disparagement, Covenant of Non-Disclosure of Confidential or Trade Secret Information, Covenant to Return Confidential Information and Materials, and/or the Covenant of Cooperation,
Company shall have the right to have Employee’s obligations specifically enforced on the grounds that such breach will cause irreparable injury to Company and money damages will not prove an adequate remedy. Such equitable remedies shall be in
addition to any other remedies at law or equity, all of which remedies shall be cumulative and not exclusive. Employee agrees that in the event Employee breaches any of the covenants mentioned in the preceding sentence in any material respect
following the termination of this Agreement, Employee shall (x) not be entitled to receive, if not already paid, the benefits described in Section 5(b)(ii) hereof, and (y) return to the Company any and all payments previously made by the Company (or
any of its affiliates) pursuant to Section 5(b)(ii) within 15 days after written demand for such repayment is made to Employee by the Company. 
  
 Employee further acknowledges and agrees that the obligations contained in the aforementioned covenants are fair, do not unreasonably restrict
Employee’s future employment and business opportunities, and are commensurate with the compensation arrangements set out in this Agreement. The Covenants set forth above survive the termination of this Agreement. 
  

	7.	MISCELLANEOUS: 

  
 (a) Employee Representations: 
  
 Employee represents and warrants that, on the Effective Date he will be free to be employed by Company upon the terms contained in this Agreement and that
on the employment date there will be no employment contracts or restrictive covenants preventing full performance of his duties hereunder. Employee represents that he is not a party to any restrictive agreement limiting the performance of his duties
for the Company and that he will hold the Company harmless from any and all suits and claims which may be commenced or made hereafter arising out of or relating to any such restrictive agreements. 
  

 6 

 (b) Notices: 
  
 Any notices to be given hereunder by either party to the other may be effected by certified U.S. mail to the following
addresses or at such other address as the parties shall designate from time to time by notice in writing in the manner provided hereunder: 
  

			
	 The Company
	  	 c/o Senior Vice President of Human Resources
 901 East
233rd Street
 Carson,
California 90745-6204

		
	 Employee
	  	 3071 NE 40th
Street
 Fort Lauderdale, Florida 33308

  
 (c) Entire
Agreement: 
  
 This instrument embodies the entire agreement
concerning Employee’s employment with Company and it supersedes any and all other agreements, understandings, negotiations or discussions, either oral or in writing, express or implied, between the parties to this Agreement (including, but not
limited to, the letter dated September 24, 2001, by and between the Company and Employee). Employee acknowledges that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by Company or anyone acting
on its behalf which are not embodied in this Agreement; that Employee has not executed this Agreement in reliance on any representation, inducement, promise, agreements, warranty, fact or circumstances not expressly set forth in this Agreement; and
that no representation, inducement, promise, agreement or warranty not contained in this Agreement, including, but not limited to, any purported settlements, modifications, waivers or terminations of this Agreement shall be valid or binding, unless
executed in writing by the Chief Executive Officer. 
  
 (d)
Severable Agreement: 
  
 If any provision of this Agreement
is held by a court or other agency of competent jurisdiction to be invalid, void, or unenforceable, then the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. 
  
 (e) Blue Pencil: 
  
 Employee and the Company agree that the covenants contained in Section 6
hereof are reasonable covenants under the circumstances, and further agree that if, in the opinion of any court of competent jurisdiction such covenants are not reasonable in any respect, such court shall have the right, power and authority to
excise or modify such provision or provisions of these covenants as to the court shall appear not reasonable and to enforce the remainder of these covenants as so amended, 
  
 (f) Applicable Law: 
  
 This Agreement shall be governed and construed in accordance with the laws of the State of California. 
  
 (g) Waiver of Breach: 
  
 Any waiver by either party of any breach of any provision of this Agreement
shall not operate as or be construed as a waiver of any subsequent breach thereof. 
  

 7 

 (h) Arbitration of Disputes: 
  
 Except for exclusively monetary claims of less than five thousand dollars ($5,000.00) and claims for injunctive relief,
Employee agrees that any claim, dispute or controversy which would otherwise require or allow resort to any court or other governmental dispute resolution forum (including but not limited, to all claims of discrimination or harassment), between
Employee and Company (including, but not limited to those classified as Company’s owners, directors, agents, officers, and parties affiliated with Company’s employee benefit and health plans), related to, Employee’s employment by
Company, whether based on tort, contract, statutory, or equitable law, or otherwise, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California
Arbitration Act (Cal. Code. Civ. Proc. § 1280 et seq. including § 1283.05 and all of the Act’s other mandatory and permissive rights to discovery); provided, however, that: In addition to requirements imposed by law, any
arbitrator shall be a neutral, retired California Superior Court Judge and shall be subject to disqualification on the same grounds as would apply to a judge of such court. To the extent applicable in civil actions in California courts, the
following shall apply and be observed: all rules of pleading (including the right of demurrer), all rules of evidence, all rights to resolution of the dispute by means of motions for summary judgment, judgment on the pleadings, and judgment under
Code of Civil Procedure § 631.8. Resolution of the dispute shall be based solely upon the law governing the claims and defenses pled, and the arbitrator may not invoke any basis other than such controlling law, including but not limited to
notions of “just cause.” As reasonably required to allow full use and benefit of this agreement’s
modifications to the Act’s procedures, the arbitrator shall extend the times set by the Act for the giving of notices and setting of hearings. All awards shall include the arbitrator’s written opinion providing reasoned explanations for
the decision. Employee understands that this binding arbitration provision constitutes waiver by both Employee and Company to a jury trial. Any expense of arbitration shall be borne by the party who incurs such expense and joint expenses shall be
shared equally; provided, however, that Employee shall not bear any expense which Employee would not be required to bear if the dispute were to be adjudicated in a court of law or equity. 
  
 (i) Attorneys’ Fees: 
  
 In the event either party brings any action or proceeding, including, but not limited to, arbitration to enforce the terms of this Agreement, or for
damages for breach of the Agreement, or for a declaration of the rights, duties and obligations of the parties hereunder, the prevailing party in such action or proceeding shall be entitled to recover reasonable attorney’s fees and costs
incurred as a part of any judgment or award to the extent permitted by applicable law, 
  
 (j) Taxes: 
  
 The Company
shall have the power to withhold, or require Executive to remit to the Company promptly upon notification of the amount due, an amount sufficient to satisfy the statutory minimum amount of all Federal, state, local and foreign withholding tax
requirements with respect to any payment of cash, or issuance or delivery of any other property hereunder to Executive or any third party, and the Company may defer any such payment of cash or issuance or delivery of such other property until such
requirements are satisfied. 
  

 8 

 (k) Counterparts: 
  
 This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this
Agreement and all of which, when taken together, will be deemed to constitute one and the same Agreement. 
  
 (l) Section Headings: 
  
 The section headings used in this Agreement are inserted for reference purposes only and shall not in any way affect the meaning or interpretation of this
Agreement. 
  
 (m) Construction: 
  
 The parties hereto agree that they have both contributed to this Agreement
and that the rules of construction shall not be applied against either party as the drafter of this Agreement. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed at
                        , California, by: 
  

					
	 	 	 	 	 EMPLOYEE

			
	 DATED: 01/24/02
	 	 	 	 /s/    GERRY PEREZ        

	 	 	 	 	GERRY PEREZ

  

									
	 	 	 	 	 LEINER HEALTH PRODUCTS, INC.

				
	 DATED:                    
	 	 	 	By:	 	/S/    ROBERT M.
KAMINSKI        
	 	 	 	 	 	 	 	 	Chief Executive Officer

  

 9 

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
  
 This ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”), dated as of April 12, 2002, between Leiner
Health Products Inc., a Delaware corporation (“Assignor”) and Leiner Health Products L.L.C, a Delaware limited liability company (“Assignee”). 
  
 WHEREAS, Assignor has entered into the Employment Agreement, dated as of October 15, 2001 (the “Employment Agreement”), by and between
Assignor and Gerry Perez (“Executive”); 
  
 WHEREAS, the Assignor will enter into an Assignment and Assumption Agreement with Assignee (the “Contribution Agreement”), whereby the Assignor will contribute certain assets and liabilities to Assignee in exchange for
limited liability company interests of Assignee; 
  
 WHEREAS,
Executive will primarily perform services for the Assignee following the consummation of the transactions contemplated by the Contribution Agreement and, in connection therewith, the board of directors of each of the Assignor and the Assignee have
determined that it is the best interests of the Assignor and the Assignee, respectively; that the Assignor assigns all of its rights, title and interest under the Employment Agreement to the Assignee and the Assignee accepts such assignment.

  
 NOW, THEREFORE, each of the Assignor and Assignee hereby
covenants and agrees as follows: 
  
 1. Effective as of the
closing of the transactions contemplated by the Contribution Agreement, Assignor hereby assigns, transfers and conveys to Assignee, and Assignee accepts from Assignor, all of Assignor’s rights, title and interest to the Employment Agreement to
which Assignor is a party. 
  
 2. Effective as of the closing of
the transactions contemplated by the Contribution Agreement, Assignee hereby assumes and agrees to perform and to be bound by each and every term and provision of the Employment Agreement, and Assignee shall assume the obligations of Assignor under
the Employment Agreement as if Assignee had executed the Employment Agreement. 
  
 3. This Agreement shall be of no force and effect if the transactions contemplated by the Contribution Agreement are not consummated and shall automatically expire if the Contribution Agreement is terminated.

  
 4. This agreement shall be governed by and construed in
accordance with the law of the State of New York, regardless of the law that might be applied under principles of conflict of laws. 
  
 5. This Agreement may be signed in one or more counterparts, each of which shall be deemed an original and together which shall constitute one and the
same instrument. 
  
 [Signature page follows] 
  

 IN WITNESS WHEREOF, the parties hereto have caused this Assignment and Assumption Agreement to be
executed and delivered as of the date first above written. 
  

			
	LEINER HEALTH PRODUCTS INC.
		
	By:	 	/s/    ROBERT M.
KAMINSKI        
	Name:	 	Robert M. Kaminski
	Title:	 	Chief Executive Officer

  

			
	LEINER HEALTH PRODUCTS L.L.C.
		
	By:	 	/s/    ROBERT M.
KAMINSKI        
	Name:	 	Robert M. Kaminski
	Title:	 	Chief Executive Officer

  
 I acknowledge and consent to the
foregoing transactions, and hereby release the Assignor from all obligations and liability with respect to the Employment Agreement. 
  

	
	
	/s/    GERRY PEREZ        
	Gerry Perez

  

 2Consulting Agreement

 Exhibit 10.8 
  
 CONSULTING AGREEMENT 
  
 This CONSULTING AGREEMENT, dated as of May 27, 2004 (the “Agreement”), among Leiner Health Products Inc., a Delaware corporation
(“Leiner”), Leiner Health Products, LLC, a Delaware limited liability company and a wholly owned subsidiary of Leiner (the “Company”), LHP Holding Corp., a Delaware corporation (the “Parent” and,
together with Leiner and the Company, the “Company Group”), North Castle Partners, L.L.C., a Delaware limited liability company (“NCP”) and GGC Administration, LLC, a Delaware limited liability company
(“Golden Gate” and, together with NCP, the “Consultants”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, Leiner has entered into a Recapitalization Agreement and Plan of Merger (the “Recapitalization Agreement”), dated as of April
15, 2004, between Leiner and Leiner Merger Corporation, a Delaware corporation (“Leiner Merger Corp.”), pursuant to which, among other things, CCG Investment Fund, L.P., a Delaware limited partnership (“CCG”), CCG
Investment Fund-AI, L.P., a Delaware limited partnership (“CCG Fund-AI”), CCG Associates-QP, LLC, a Delaware limited liability company (“CCG Associates-QP”), CCG Associates-AI, LLC, a Delaware limited liability
company (“CCG Associates-AI”), CCG AV, LLC-series C, a Delaware limited liability company (“CCG Series C”), CCG AV, LLC-series F, a Delaware limited liability company (“CCG Series F”), CCG CI, LLC,
a Delaware limited liability company (“CCG CI” and together with CCG, CCG Fund-AI, CCG Associates-QP, CCG Associates-AI, CCG Series C, CCG Series F and their respective Affiliated Funds, the “Golden Gate Investor”),
and North Castle Partners III-A, L.P., a Delaware limited partnership (together with any Affiliated Fund, the “NCP Investor”, and collectively with the Golden Gate Investor, the “Investors”), have agreed to purchase
shares of common stock of Leiner Merger Corp., which shares shall, upon the consummation of the Merger (as defined in the Recapitalization Agreement), be automatically converted into shares of common stock of Leiner as the surviving corporation (the
“Surviving Corporation”) (and certain other consideration); 
  
 WHEREAS, the Investors and certain members of the Company Group’s management will enter into contribution agreements immediately following the Merger, pursuant to which they will exchange their stock in the
Surviving Corporation for voting preferred stock of the Parent (together with the other transactions contemplated by the Recapitalization Agreement, the “Recapitalization Transactions”); 
  
 WHEREAS, the Consultants have performed financial, investment banking,
management advisory and other services (the “Initial Services”) for Leiner and Leiner Merger Corp. in connection with the Recapitalization Transactions, including but not limited to in connection with (i) the preparation,
negotiation, execution and delivery of the Recapitalization Agreement and the other agreements, instruments and documents contemplated by the Recapitalization Agreement, (ii) the retention of various financial 

  

 
and other advisors and consultants, (iii) the preparation, negotiation, execution and delivery of the commitment, fee and engagement letters and other
agreements, instruments and documents, relating to the financing of the Recapitalization Transactions, (iv) the preparation and circulation of materials in connection with such financing, and (v) the structuring, implementation and
consummation of the foregoing transactions; and 
  
 WHEREAS, in
addition to the Initial Services the Company Group desires to receive future financial, investment banking, management advisory and other services from the Consultants, and the Consultants desire to provide such services to the Company Group;

  
 NOW, THEREFORE, in consideration of the premises and the
respective agreements hereinafter set forth and the mutual benefits to be derived herefrom, the parties hereto hereby agree as follows: 
  
 1. Definitions. 
  
 “Acquisition Transaction” is defined in Section 3(b). 
  
 “Affiliated Investor” means (i) as to NCP, the NCP Investor, and (ii) as to Golden Gate, the
Golden Gate Investor. 
  
 “Affiliated Fund” has
the meaning set forth in the Stockholders Agreement. 
  
 “Agreement” is defined in the Preamble hereto. 
  
 “Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required to close. 
  
 “Change of Control” means, with respect to the Parent, any
of the following events: 
  
 (1) the acquisition by any person,
entity or group (as defined in section 13(d) of the Exchange Act) (other than (x) the Parent and its subsidiaries, (y) any employee benefit plan of the Parent or its subsidiaries or (z) the Investors or any Affiliate or partner
thereof) through one transaction or a series of transactions of 50% or more of the combined voting power of the then outstanding voting securities of the Parent; 
  
 (2) the merger or consolidation of the Parent as a result of which persons who were stockholders of the Parent immediately
prior to such merger or consolidation, do not, immediately thereafter, own, directly or indirectly, more than 50% of the combined voting power entitled to vote generally in the election of directors of the merged or consolidated company; 

 
 (3) the liquidation or dissolution of the Parent (other than a dissolution
occurring upon a merger or consolidation thereof); and 
  

 2 

 (4) the sale, transfer or other disposition of all or substantially all of the assets of the Parent
through one transaction or a series of related transactions to one or more persons or entities that are not, immediately prior to such sale, transfer or other disposition, Affiliates of the Investors. 
  
 “Claim” means, with respect to any Indemnitee, any claim
against such Indemnitee involving any Obligation with respect to which such Indemnitee may be entitled to be defended and indemnified by the Company Group under this Agreement. 
  
 “Closing” means the closing under the Recapitalization Agreement. 
  
 “Company” is defined in the Preamble to this Agreement.

  
 “Company Group” is defined in the Preamble to
this Agreement. 
  
 “Consultants” is defined in
the Preamble to this Agreement. 
  
 “Continuing
Services” is defined in Section 3(a). 
  
 “Continuing Services Fee” is defined in Section 4(b). 
  
 “Designated Director” is defined in Section 4(b). 
  
 “Escrow Agreement” has the meaning set forth in the Recapitalization Agreement. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
  
 “Expenses” is defined in Section
4(d). 
  
 “Financing Capital” is defined in
Section 3(b). 
  
 “Fund Expenses” is defined in
Section 4(d). 
  
 “Golden Gate” is defined in the
Preamble to this Agreement. 
  
 “Golden Gate
Investor” is defined in the Recitals to this Agreement. 
  
 “Indemnitee” means each of the Investors, the Consultants, their respective successors and assigns, and their respective current and former shareholders, directors, officers, partners, ordinary members, managing members,
employees, agents, advisors, representatives and controlling persons within the meaning of the Securities Act. 
  
 “Initial Services” is defined in the Recitals to this Agreement. 
  
 “Investors” is defined in the Recitals to this Agreement. 
  
 “Leiner Merger Corp.” is defined in the Recitals to this
Agreement. 
  

 3 

 “Leiner” is defined in the Preamble to this Agreement. 
  
 “Major Investor” has the meaning set forth in the
Stockholders Agreement. 
  
 “NCP” is defined in
the Preamble to this Agreement. 
  
 “NCP
Investor” is defined in the Recitals to this Agreement. 
  
 “Notice of Claim” is defined in Section 7(a). 
  
 “Notice of Payment” is defined in Section 7(c). 
  
 “Obligations” means, collectively, any and all claims, obligations, liabilities, causes of actions, actions, suits, proceedings, investigations, judgments, decrees, losses, damages, fees, costs and
expenses (including without limitation interest, penalties and fees and disbursements of attorneys, accountants, investment bankers and other professional advisors), in each case whether incurred, arising or existing with respect to third parties or
otherwise at any time or from time to time. 
  
 “Parent” is defined in the Preamble to this Agreement. 
  
 “Recapitalization Agreement” is defined in the Recitals to this Agreement. 
  
 “Recapitalization Transactions” is defined in the Recitals to this Agreement. 
  
 “Securities Act” means the Securities Act of 1933, as
amended. 
  
 “Stockholders Agreement” means the
Stockholders Agreement, of even date herewith, among the Parent, the Golden Gate Investor, the NCP Investor and the other stockholders of the Parent that are parties thereto. 
  
 “Surviving Corporation” is defined in the Recitals to this Agreement. 
  
 “Transaction” is defined in Section 3(b). 
  
 “Transaction Document” is defined in Section 6(b).

  
 “Transaction Fee” is defined in Section 4(c).

  
 “Transaction Services” is defined in Section
3(b). 
  
 “Transaction Value” means (i)
with respect to any Acquisition Transaction, the total amount of the Financing Capital raised in connection therewith, (ii) with respect to a Change of Control, the total enterprise value of the Parent, which shall be equal to the sum of
(A) the total equity value implied by the equity pricing in the Change of Control and (B) the Parent’s total funded debt, and (iii) with respect to any Transaction other than an Acquisition Transaction or a Change of
Control, the total consideration paid in respect of the applicable Transaction in any combination of (without duplication) cash, notes, stock or other property, including deferred payments, and the face value of any 

  

 4 

 
indebtedness (including any deferred purchase price or capital lease obligation) assumed, issued or exchanged in connection therewith. 
  
 2. Engagement. Each member of the Company Group hereby engages each of
the Consultants as a consultant, and each Consultant hereby agrees to provide financial and managerial consulting services to the Company Group, all on the terms and subject to the conditions set forth below. 
  
 3. Scope of Future Services, etc. 
  
 (a) Continuing Services. Each Consultant hereby
agrees during the term of this Agreement to assist, advise and consult with the board of directors and management of each member of the Company Group and its subsidiaries in such manner and on such business, management and financial matters, and
provide such other financial and managerial advisory services (collectively, the “Continuing Services”) as may be reasonably requested from time to time by the board of directors or management of any member of the Company Group,
including but not limited to assistance in: 
  
 (i) establishing and maintaining banking, legal and other business relationships for the members of the Company Group and their respective subsidiaries; 
  
 (ii) developing and implementing corporate and business strategy and planning for the members of the Company
Group and their respective subsidiaries, including plans and programs for improving operating, marketing and financial performance, budgeting of future corporate investments, acquisition and divestiture strategies, and reorganizational programs;

  
 (iii) arranging future debt and equity
financings and refinancings; and 
  
 (iv)
providing professional employees to serve as directors or officers of the members of the Company Group and their respective subsidiaries. 
  
 (b) Transaction Services. In addition to the Continuing Services, each Consultant hereby agrees, during the term of this Agreement,
to provide the members of the Company Group and their respective subsidiaries with financial, investment banking, management advisory and other services (collectively, the “Transaction Services”) with respect to any proposal for any
(i) acquisition by any member of the Company Group or its subsidiaries (by merger, asset acquisition, stock acquisition or otherwise) (an “Acquisition Transaction”) financed by new equity or debt (“Financing
Capital”), (ii) Change of Control, or (iii) sale, transfer or other disposition of all or substantially all of the assets of any member of the Company Group (whether by merger, consolidation, reorganization, recapitalization,
sale of assets, sale of stock or otherwise) other than a Change of 

  

 5 

 
Control, including any divestiture of one or more subsidiaries or operating divisions of any member of the Company Group or any other similar transaction
(each of the transactions described in the foregoing sub-clauses (i), (ii) and (ii), a “Transaction”). 
  
 (c) Information. Each member of the Company Group will furnish each Consultant with such information (the
“Information”) as such Consultant reasonably believes appropriate to its engagement hereunder. Each member of the Company Group acknowledges and agrees that (a) such Consultant will rely on the Information and on information
available from generally recognized public sources in performing the Continuing Services and the Transaction Services and (b) such Consultant does not assume responsibility for the accuracy or completeness of the Information and such other
information. 
  
 (d) Level of Services.
Nothing contained in this Agreement shall require either Consultant to perform any particular, or minimum level of, activities pursuant to this Agreement. 
  
 4. Compensation; Payment of Expenses. 
  
 (a) Compensation for Initial Services. As compensation for the Initial Services, immediately following the consummation of the
Closing, the Company Group shall pay $6,190,000 to each Consultant. 
  
 (b) Compensation for Continuing Services. As compensation for the Continuing Services to be rendered by the Consultants hereunder, the Company Group shall pay to the Consultants an aggregate annual fee (the
“Continuing Services Fees”) equal to $2,630,000 in arrears on the first anniversary of the date of this Agreement and thereafter upon each subsequent anniversary thereof during the term of this Agreement for actual activities
conducted by the Consultants and/or their affiliates pursuant to this Agreement. One half of such Continuing Services Fee shall be delivered to each Consultant by the Company Group on such dates, provided that if at any time after the date
hereof the Affiliated Investor of such Consultant shall cease to be a Major Investor, such Consultant shall no longer be entitled to receive its share of the Continuing Services Fee, which shall be reallocated to the other Consultant for so long as
such other Consultant’s Affiliated Investor is a Major Investor; provided, further, however, that notwithstanding the foregoing, the Company shall not be obligated to pay the Consultants any annual portion of the
aforementioned fees (but will be obligated to pay the Consultants for their respective reasonable out-of-pocket expenses pursuant to Section 4(d) below in any event) unless, as of the last day of any of the 12 calendar months ending prior to the
applicable scheduled annual payment date therefor, the Company Group and its consolidated subsidiaries have achieved LTM Adjusted EBITDA (as defined below) equal to or greater than $90.0 million (it being agreed that the aforementioned LTM Adjusted
EBITDA threshold need only be achieved once in each annual period in order for the Company Group to be obligated to pay the Continuing Services Fees specified herein with respect to 

  

 6 

 
such annual period). “LTM Adjusted EBITDA”“ means, for the Company Group and its consolidated subsidiaries (including, for avoidance of doubt,
the LTM Adjusted EBITDA for any portion of a twelve-month period preceding the date of this Agreement of the Company Group and its consolidated subsidiaries), for any trailing twelve-month period ending on any calendar month following the date of
this Agreement, “Adjusted EBITDA” calculated in a manner consistent with the calculation thereof set forth under the caption ““Summary unaudited pro forma and historical consolidated financial data”“ set forth in
that certain Offering Memorandum dated May 24, 2004 pursuant to which Leiner Merger Corp. privately placed an aggregate of $150 million of its 11% Senior Subordinated Notes due 2012. If any employee of a Consultant shall be elected to serve on the
board of directors of the Parent or as an officer of the Parent (a “Designated Director”), in consideration of the Continuing Services Fee being paid to such Consultant, such Consultant shall cause such Designated Director to waive
any and all fees and other compensation (including stock options) to which such director or officer would otherwise be entitled as a director or officer for any period for which the Continuing Services Fee or any installment thereof is paid and for
which such Designated Director continues to be employed by such Consultant. Any Continuing Services Fees with respect to any scheduled annual payment date that do not become due and payable as a direct result of the operation of the proviso
to the first sentence of this Section 4(b) shall be forfeited in their entirety. 
  
 (c) Compensation for Transaction Services. As compensation for the Transaction Services, in connection with each Transaction that
is consummated, the Company Group shall pay the Consultants an aggregate fee (a “Transaction Fee”) equal to 1.0% of the Transaction Value of such Transaction, or such lesser amount as the Consultants and the Parent may agree. One
half of the Transaction Fee shall be delivered to each Consultant by the Company Group, provided that if at any time after the date hereof the Affiliated Investor of such Consultant shall cease to be a Major Investor, such Consultant shall no
longer be entitled to receive its share of the Transaction Fee, which shall be reallocated to the other Consultant for so long as such other Consultant’s Affiliated Investor is a Major Investor. The Transaction Fee shall be payable by the
Company Group regardless of the extent of services or advice requested by the Company Group pursuant to this Agreement, and regardless of whether or not the Company Group requests the Consultants to provide any such services or advice. For purposes
of calculating a Transaction Fee, the value of any securities included in the Transaction Value will be determined by the average of the last sales prices for such securities on the five trading days ending five days prior to the consummation of the
applicable Transaction, provided that if such securities do not have an existing public trading market, the value of the securities shall be their fair market value as mutually agreed between the Parent and the Investors on the day prior to
consummation of such Transaction. 
  

 7 

 (d) Expenses; Fund Expenses. 
  
 (i) The Company Group shall reimburse each Consultant for
such reasonable travel and other out-of-pocket expenses (“Expenses”) as may be incurred by such Consultant and its employees, agents and advisors in the course or on account of rendering Continuing Services and Transaction Services,
including but not limited to any fees and expenses of any legal, accounting or other professional advisors to such Consultant engaged in connection with the Continuing Services or Transaction Services being provided hereunder. Each Consultant may
submit monthly expense statements, which shall be payable within thirty days. 
  
 (ii) The Company Group shall reimburse NCP for all reasonable fees, costs and out-of-pocket expenses incurred by NCP and its affiliates (including the NCP Investor) in connection with the formation of the NCP Investor
and the offering and distribution of interests therein (including fees and expenses of any placement agent) up to a maximum of $1,200,000 (“NCP Expenses”). 
  
 (iii) The Company Group shall reimburse each Investor for all reasonable administrative costs and expenses
incurred by such Investor and its affiliates (other than, with respect to the NCP Investor, the expenses covered by subparagraph (ii) above which shall be governed by such subparagraph) in connection with the maintenance of such Investor and
reasonably attributable to such Investor’s investment in the Parent, including but not limited to professional fees (legal, accounting etc.), insurance premiums and the costs of preparing and delivering financial statements, periodic reports
and tax filings (collectively, “Fund Expenses”); provided that, for the avoidance of doubt, the Company Group shall not be required, under this Agreement, to reimburse any costs or expenses incurred by the NCP Investor or any
of its affiliates in connection with any services provided as escrow agent or otherwise pursuant to the Escrow Agreement or any fees and expenses constituting Sellers’ Expenses (as defined in the Recapitalization Agreement). At the Closing,
immediately after the Effective Time (as defined in the Recapitalization Agreement), the Company Group shall reimburse each Investor for all Fund Expenses, and NCP for all NCP Expenses, accrued as of the Closing (including, without limitation, any
filing fees incurred pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the transactions contemplated by the Recapitalization Agreement). Thereafter, each Investor may submit annual expense
statements, which shall be payable within thirty days; provided that, following the Closing, the Company Group shall not be required to reimburse any Investor for any amounts in excess of $100,000 per year for each such Investor. 

 
 (e) Obligations Joint and Several. The obligations
of the Company Group under this Section 4 shall be borne jointly and severally by the members of the Company Group; provided, however, that any and all payment obligations 

  

 8 

 
pursuant to this Section 4 shall be made by members of the Company Group other than the Parent, except to the extent that such members are unable to satisfy
such payment obligations, in which case all or any portion of such unsatisfied payment obligations shall be satisfied by the Parent. 
  
 5. Term, etc. 
  
 (a) This Agreement shall be in effect until, and shall terminate upon, the earliest of (i) the tenth anniversary of the date
hereof, (ii) such time as the Parent has no Major Investors and (iii) the bankruptcy or insolvency of the Parent. The provisions of this Agreement shall survive any termination of this Agreement, except for the provisions of Sections
2, 3 and, subject to Section 5(c), 4, which shall not survive any termination hereof. 
  
 (b) Upon any consolidation or merger, or any conveyance, transfer or lease of all or substantially all of the assets of any member of the
Company Group, the successor corporation formed by such consolidation or into which such member of the Company Group is merged or to which such conveyance, transfer or lease is made shall, if the Investors collectively shall, directly or indirectly,
own at least one third of the outstanding voting capital stock of such successor entity, succeed to, and be substituted for, such member of the Company Group under this Agreement with the same effect as if such successor corporation had been a party
thereto. Any other such consolidation, merger or conveyance, transfer or lease of all or substantially all of the assets of such member of the Company Group shall have the effect of terminating this Agreement to the same effect as set forth in the
second sentence of Section 5(a). 
  
 (c) Upon any
termination of this Agreement, each member of the Company Group, jointly and severally, agrees immediately to pay or reimburse, as the case may be, any accrued and unpaid installment of the Continuing Services Fee or portion thereof (pro rated, with
respect to the month in which such termination occurs, for the portion of such month that precedes such termination), any accrued and unpaid Transaction Fee or portion thereof and any unpaid and unreimbursed Expenses, Fund Expenses or NCP Expenses
that shall have been incurred prior to such termination (whether or not such Expenses, Fund Expenses or NCP Expenses shall then have become payable). In the event of the liquidation of any member of the Company Group, all amounts due to the
Consultants under this Agreement shall be paid to the Consultants before any liquidating distributions or similar payments are made to stockholders of such member of the Company Group. For the avoidance of doubt, this Section 5(c) shall survive any
termination of this Agreement. 
  
 6. Indemnification. Each
member of the Company Group hereby agrees jointly and severally to indemnify, defend and hold harmless each Indemnitee: 
  
 (a) from and against any and all Obligations, whether incurred with respect to third parties or otherwise, in any way resulting from,
arising out of or in 

  

 9 

 
connection with, based upon or relating to (A) the Securities Act, the Exchange Act, or any other applicable securities or other laws, in connection
with the Recapitalization Transactions or any Transactions, (B) any other action or failure to act of any member of the Company Group or any direct or indirect subsidiary of such member or any of their predecessors, whether such action or
failure has occurred or is yet to occur or (C) the performance by any Consultant affiliated with such Indemnitee of the Initial Services, the Transaction Services, the Continuing Services or any other consulting, monitoring, financial
advisory or other services for the Company Group or any direct or indirect subsidiary of any member of the Company Group (whether performed prior to the date hereof, hereafter, pursuant to this Agreement or otherwise), except, in the case of the
immediately preceding sub-clause (C), to the extent that any such Obligation is found in a final judgment by a court of competent jurisdiction to have resulted from the gross negligence or intentional misconduct of such Consultant or its affiliates;
and 
  
 (b) to the fullest extent permitted by
applicable law, from and against any and all Obligations in any way resulting from, arising out of or in connection with, based upon or relating to (A) the fact that such Indemnitee is or was a director or an officer of any member of the
Company Group or any direct or indirect subsidiary of such member, as the case may be, or is or was serving at the request of such corporation as a director, officer, employee or agent of or advisor or consultant to another corporation, partnership,
joint venture, trust or other enterprise or (B) any breach or alleged breach by such Indemnitee of his or her fiduciary duty as a director or an officer of any member of the Company Group or any direct or indirect subsidiary of such member,
as the case may be; 
  
 in each case including but not limited to any and all
fees, costs and expenses (including without limitation fees and disbursements of attorneys) incurred by or on behalf of any Indemnitee in asserting, exercising or enforcing any of its rights, powers, privileges or remedies in respect of this
Agreement. 
  
 7. Indemnification Procedures. 

 
 (a) Whenever any Indemnitee shall have actual knowledge
of the reasonable likelihood of the assertion of a Claim, a Consultant affiliated with such Indemnitee (acting on its own behalf or, if requested by any such Indemnitee other than itself, on behalf of such Indemnitee) or such Indemnitee shall notify
each member of the Company Group in writing of the Claim (the “Notice of Claim”) with reasonable promptness after such Indemnitee has such knowledge relating to such Claim and has notified such Consultant thereof. The Notice of
Claim shall specify all material facts known to such Consultant (or if given by such Indemnitee, such Indemnitee) that may give rise to such Claim and the monetary amount or an estimate of the monetary amount of the Obligation involved if such
Consultant (or if given by such Indemnitee, such Indemnitee) has knowledge of such amount or a reasonable basis for making such an estimate. The failure of such Consultant or Indemnitee to give such Notice of Claim shall 

  

 10 

 
not relieve any member of the Company Group of its indemnification obligations under this Agreement except to the extent that such omission results in a
failure of actual notice to it and it is materially injured as a result of the failure to give such Notice of Claim. The Company Group shall, at its expense, undertake the defense of such Claim with attorneys of its own choosing satisfactory in all
respects to each of the Consultants and to any Indemnitee that, in the exercise of such Indemnitee’s good faith judgment, reasonably determines that the Claim presents no actual or potential conflict of interest with the Consultants. Each
Consultant affiliated with such Indemnitee may participate in such defense with counsel of its choosing at the expense of the Company Group. If in the exercise of their good faith judgment any one or more Indemnitees reasonably determine that the
Claim presents no actual or potential conflict of interest with the Consultants, such Indemnitee or Indemnitees may participate in the defense of the Claim with one counsel for all such Indemnitees, at the choosing of such Indemnitees and at the
expense of the Company Group. In the event that the Company Group does not undertake the defense of the Claim within a reasonable time after a Consultant or Indemnitee has given the Notice of Claim, such Consultant or Indemnitee may, at the expense
of the Company and after giving notice to the Company Group of such action, undertake the defense of the Claim and compromise or settle the Claim, all for the account of and at the risk of the Company Group. In the defense of any Claim, no member of
the Company Group shall, without the consent of each of the Consultants, consent to entry of any judgment or enter into any settlement that includes any injunctive or other non-monetary relief, or that does not include as an unconditional term
thereof the giving by the person or persons asserting such Claim to such Indemnitee of a release from all liability with respect to such Claim. In each case, each Consultant and each other Indemnitee seeking indemnification hereunder will cooperate
with the Company Group, so long as the Company Group is conducting the defense of the Claim, in the preparation for and the prosecution of the defense of such Claim, including making available evidence within the control of such Consultant or such
Indemnitee, as the case may be, and persons needed as witnesses who are employed by such Consultant or such Indemnitee, as the case may be, in each case as reasonably needed for such defense and at cost, which cost, to the extent reasonably
incurred, shall be paid by the Company Group. 
  
 (b) Each member of the Company Group hereby agrees to advance the costs and expenses, including attorney’s fees, incurred by the Consultants (acting on their own behalf or, if requested by any such Indemnitee other than itself, on
behalf of such Indemnitee) or any Indemnitee in defending any Claim in advance of the final disposition of such Claim upon receipt of an undertaking by or on behalf of the Consultants to repay amounts so advanced if it shall ultimately be determined
that the Consultants or such Indemnitee are not entitled to be indemnified by the Company Group as authorized by this Agreement. 
  
 (c) Each Indemnitee shall notify each member of the Company Group in writing of the amount of any Claim actually paid by such Indemnitee
(the “Notice of Payment”). The amount of any Claim actually paid by an Indemnitee 

  

 11 

 
shall bear simple interest at the rate equal to the Bank of Nova Scotia’s prime rate as of the date of such payment plus 2% per annum, from the date the
members of the Company Group receive the Notice of Payment to the date on which the Company Group shall repay the amount of such Claim plus interest thereon to such Indemnitee. 
  
 8. Contribution. 
  
 (a) If for any reason the indemnity provided for in Section 7 is unavailable or is insufficient to hold harmless any Indemnitee from any
of the Obligations covered by such indemnity, then the Company Group agrees jointly and severally to contribute to the amount paid or payable by such Indemnitee as a result of such Obligation in such proportion as is appropriate to reflect
(i) the relative fault of the Company Group, on the one hand, and such Indemnitee, on the other, in connection with the state of facts giving rise to such Obligation, (ii) if such Obligation results from, arises out of, is based upon
or relates to the Recapitalization Transactions or any Transactions, the relative benefits received by the Company Group, on the one hand, and such Indemnitee, on the other, from the Recapitalization Transactions or such Transactions, and
(iii) if required by applicable law, any other relevant equitable considerations. 
  
 (b) For purposes of Section 8(a), the relative fault of the Company Group, on the one hand, and of the Indemnitee, on the other, shall be
determined by reference to, among other things, their respective relative intent, knowledge, access to information and opportunity to correct the state of facts giving rise to such Obligation. For purposes of Section 8(a), the relative benefits
received by the Company Group, on the one hand, and the Indemnitee, on the other, shall be determined by weighing the direct monetary proceeds to the Company Group, on the one hand, and such Indemnitee, on the other, from the Recapitalization
Transactions or such Transactions. 
  
 (c) The
parties hereto acknowledge and agree that it would not be just and equitable if contributions pursuant to Section 8(a) were determined by pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to in such Section. The Company Group shall not be liable under Section 8(a) for contribution to the amount paid or payable by any Indemnitee except to the extent and under such circumstances that the Company Group
would have been liable to indemnify, defend and hold harmless such Indemnitee under Section 7, if such indemnity were enforceable under applicable law. No Indemnitee shall be entitled to contribution from the Company Group with respect to any
Obligation in the event that such Indemnitee is finally determined to be guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such Obligation and the Company Group is not guilty of
such fraudulent misrepresentation. 
  
 9. Certain
Covenants. The rights of each Indemnitee to be indemnified under any other agreement, document, certificate or instrument or applicable law are independent of and in addition to any rights of such Indemnitee to be indemnified under 

  

 12 

 
this Agreement. The rights of each Indemnitee and the obligations of the Company hereunder shall remain in full force and effect regardless of any
investigation made by or on behalf of such Indemnitee. Each member of the Company Group shall maintain the State of Delaware as its state of incorporation and shall implement and maintain in full force and effect any and all corporate charter and
by-law provisions that may be necessary or appropriate to enable it to carry out its obligations hereunder to the fullest extent permitted by Delaware corporate law, including without limitation a provision of its certificate of incorporation
eliminating liability of a director for breach of fiduciary duty to the fullest extent permitted by Section 102(b)(7) (or any successor section thereto) of the General Corporation Law of the State of Delaware, as it may be amended from time to time.

  
 10. Governing Law. This Agreement shall be governed in
all respects, including validity, interpretation and effect, by the law of the State of New York, regardless of the law that might be applied under principles of conflict of laws, except to the extent that the corporate law of the State of Delaware
specifically and mandatorily applies, in which case such law shall apply. 
  
 11. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not
in any way be affected or impaired thereby. 
  
 12. Independent
Contractor Status. The parties agree that each Consultant shall perform services hereunder as an independent contractor, retaining control over and responsibility for its own operations and personnel. No Consultant nor any of its employees or
agents shall, solely by virtue of this Agreement or the arrangements hereunder, be considered employees or agents of any member of the Company Group nor shall any of them have authority to contract in the name of a member of or bind any member of
the Company Group, except to the extent that any member or professional employee of such Consultant may be serving as a director or an officer of a member of the Company Group. 
  
 13. Notices. All notices and other communications made in connection with this Agreement shall be in writing. Any
notice or other communication in connection herewith shall be deemed duly given to any party (a) two Business Days after it is sent by express, registered or certified mail, return receipt requested, postage prepaid or (b) one Business
Day after it is sent by overnight courier guaranteeing next day delivery, in each case, addressed as follows or, to such other address as may be specified in writing to the other parties hereto: 
  
 (i) if to any member of the Company Group: 
  
 Leiner Health Products Inc. 
 901 E. 233rd Street 
 Carson, CA 90745

 Facsimile: (310) 952-7766 
 Telephone: (310) 835-8400 
 Attention: Robert M. Kaminski 
  

 13 

 (ii) if to NCP or any Indemnitee that is an affiliate of NCP: 
  
 North Castle Partners, L.L.C. 
 183 East Putnam Avenue 
 Greenwich, CT 06830

 Facsimile: (203) 862-3270 
 Telephone: (203) 862-3200 
 Attention: Peter Shabecoff, Esq. 
  
 with a copy to: 
  
 Debevoise & Plimpton LLP 
 919 Third
Avenue 
 New York, New York 10022 
 Facsimile: (212) 909-6836 
 Telephone: (212) 909-6000 
 Attention: Franci J. Blassberg, Esq. 
  
 (iii) if to Golden Gate or any Indemnitee that is an affiliate of Golden Gate: 
  
 GGC Administration, LLC 
 One Embarcadero Center, 33rd Floor 
 San Francisco, CA 94111 
 Facsimile: (415) 627-1388 
 Telephone: (415) 627-1054 
 Attention: Jesse Rogers 
  
 with a copy to: 
  
 Kirkland & Ellis LLP 
 200 East Randolph
Drive 
 Chicago, Illinois 60601 
 Facsimile: (312) 861-2200 
 Telephone: (212) 909-6000 
 Attention: Jeffrey C. Hammes P.C. 
                    Stephen D. Oetgen, Esq. 
  
 Any party may give any notice or other communication in connection herewith using any other means (including, but not limited to, personal delivery, messenger service,
facsimile, telex or ordinary mail), but no such notice or other communication shall be deemed to have been duly given unless and until it is actually received by the individual for whom it is intended. 
  

 14 

 14. Entire Agreement. This Agreement, (a) contains the complete and entire understanding
and agreement of the parties hereto with respect to the subject matter hereof and (b) supersedes all prior and contemporaneous understandings, conditions and agreements, oral or written, express or implied, in respect of the subject matter
hereof. There are no representations or warranties of any Consultant in connection with this Agreement or the services to be provided hereunder, except as expressly made and contained in this Agreement. 
  
 15. Headings. The headings contained in this Agreement are for
purposes of convenience only and shall not affect the meaning or interpretation of this Agreement. 
  
 16. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall together
constitute one and the same instrument. 
  
 17. Binding Effect;
Assignment. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns and to each Indemnitee, provided that no Consultant or member of the Company Group may
assign any of its rights or obligations under this Agreement without the express written consent of the other parties hereto, except that, upon any termination of NCP as the manager of the NCP Investor pursuant to the governing agreement of the NCP
Investor, the NCP Investor shall assume all of the rights and obligations of NCP under this Agreement and shall be permitted to assign such rights and obligations to any Person that succeeds NCP as manager of the NCP Investor. This Agreement is not
intended to confer any right or remedy hereunder upon any person other than the parties to this Agreement and their respective successors and permitted assigns and each Indemnitee. 
  
 18. Waiver of Jury Trial. Each party hereto acknowledges and agrees that any controversy that may arise under this
Agreement is likely to involve complicated and difficult issues, and therefore it hereby irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any litigation directly or indirectly arising out of or relating
to this Agreement, or the breach, termination or validity of this Agreement, or the transactions contemplated by this Agreement. Each party certifies and acknowledges that (a) no representative, agent or attorney of any other party has
represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver, (b) it understands and has considered the implications of this waiver, (c) it makes this waiver
voluntarily, and (d) it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications contained in this Section 18. 
  
 19. Submission to Jurisdiction. Each member of the Company Group and each Consultant hereby irrevocably submit to the
jurisdiction of the courts of the State of New York and the Federal courts of the United States of America, in each case located in the State, City and County of New York, solely in respect of the interpretation and enforcement of the provisions of
this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement 

  

 15 

 
hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue
thereof may not be appropriate or that this Agreement may not enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or proceeding may be heard and determined in such a New York State or
Federal court. Each member of the Company Group and each Consultant hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of any such dispute and agree that mailing of process or other
papers in connection with any such action or proceeding in the manner provided in Section 13, or in such other manner as may be permitted by law, shall be valid and sufficient service thereof. 
  
 20. Third-Party Beneficiaries. All Indemnitees not signatories to this
Agreement are intended third-party beneficiaries of Sections 6, 7 and 8 of this Agreement, the Investors are intended third-party beneficiaries of Sections 4(d)(iii) and 4(e) of this Agreement, and the NCP Investor is an intended third-party
beneficiary of Section 17 of this Agreement. 
  
 21. Amendment;
Waivers. No amendment, modification, supplement or discharge of this Agreement, and no waiver hereunder, shall be valid or binding unless set forth in writing and duly executed by each of the parties hereto. Any such waiver shall constitute a
waiver only with respect to the specific matter described in such writing and shall in no way impair the rights of any party or Indemnitee in any other respect or at any other time. Neither the waiver by any of the parties hereto of a breach of or a
default under any of the provisions of this Agreement, nor the failure by any party hereto or any Indemnitee on one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right, powers or privilege hereunder, shall
be construed as a waiver of any other breach or default of a similar nature, or as a waiver of any of such provisions, rights, power or privileges hereunder. The rights and remedies herein provided are cumulative and are not exclusive of any rights
or remedies that any party or Indemnitee may otherwise have at law or in equity or otherwise. 
  
 [The remainder of this page has been left blank intentionally.] 
  

 16 

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

  

			
	NORTH CASTLE PARTNERS, L.L.C.
		
	By:	 	/S/    PETER J.
SHABECOFF        
	 Name:
	 	Peter J. Shabecoff
	 Title:
	 	 

  

			
	LHP HOLDING CORP.
		
	By:	 	/S/    ROBERT K.
REYNNOLDS        
	 Name:
	 	Robert K. Reynnolds
	 Title:
	 	Chief Executive Officer

  

			
	LEINER HEALTH PRODUCTS INC.
		
	By:	 	/S/    ROBERT M.
KAMINSKI        
	 Name:
	 	Robert M. Kaminski
	 Title:
	 	 

  

			
	LEINER HEALTH PRODUCTS, LLC
		
	By:	 	/S/    ROBERT M.
KAMINSKI        
	 Name:
	 	Robert M. Kaminski
	 Title:
	 	 

  

			
	GGC ADMINISTRATION, LLC
		
	By:	 	/S/    KEN
DIEKROEGER        
	 Name:
	 	Ken Diekroeger
	 Title:
	 	 

  

 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]