Document:

Exhibit 10.1

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS
OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION 

 

DISTRIBUTION AND SUPPLY AGREEMENT

 

PARNELL NORTH AMERICA PTY LTD

ABN 36
138 251 537 

 

and

 

VÉTOQUINOL CANADA INC 

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.	Interpretation	1
	 	 	 
	2.	Scope	6
	 	 	 
	3.	Establishment Fee	7
	 	 	 
	4.	Minimum Safes Quantities	7
	 	 	 
	5.	Appointment	8
	 	 	 
	6.	Restrictions	9
	 	 	 
	7.	Term	9
	 	 	 
	8.	Registrations of Products	9
	 	 	 
	9.	Marketing of Products	10
	 	 	 
	10.	Marketing Plans and Reports	11
	 	 	 
	11.	Pricing	12
	 	 	 
	12.	Purchase Orders	12
	 	 	 
	13.	Delivery	14
	 	 	 
	14.	Late Delivery or Failure to Deliver	14
	 	 	 
	15.	Invoices and Payment	15
	 	 	 
	16.	Adverse Experience Reporting	16
	 	 	 
	17.	Product Recall	16
	 	 	 
	18.	Packaging and Markings	17
	 	 	 
	19.	Trade Mark	19
	 	 	 
	20.	Product Warranties	19
	 	 	 
	21.	General Warranties	19
	 	 	 
	22.	Contract Management	20
	 	 	 
	23.	Records and Audits	21
	 	 	 
	24.	Confidentiality	22
	 	 	 
	25.	Dispute Resolution	23
	 	 	 
	26.	Force Majeure	24
	 	 	 
	27.	IPR Infringement Indemnity	25
	 	 	 
	28.	Indemnities	26
	 	 	 
	29.	Limitation of Liability	26
	 	 	 
	30.	Insurances	26
	 	 	 
	31.	Notices	27

 

    	i

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	32.	Termination	28
	 	 	 
	33.	After Termination	29
	 	 	 
	34.	Miscellaneous	29

 

	 	SCHEDULE 1	 
	 	 	 
	 	SCHEDULE 2	 
	 	 	 
	 	SCHEDULE 3	 
	 	 	 
	 	SCHEDULE 4	 
	 	 	 
	 	SCHEDULE 5	 

 

 

    	ii

    	 

    

 

Date: 29.09.2009

 

Parties

 

PARNELL NORTH AMERICA PTY LTD

ABN 36 138 251 537

Unit 4, 476 Gardeners Road, Alexandria, New South Wales, Australia

(Parnell)

 

And

 

VÉTOQUINOL CANADA INC.

2000 chemln Georges, Lavaltrie, Quebec J5T 3S5

(Vétoquinol)

 

Background

 

A.           Parnell
is engaged in the research, development, manufacture and sale of animal health products.

 

B.           Vétoquinol
carries on business in Canada of marketing, selling and distributing animal health products.

 

C.          
[Vétoquinol has represented to Parnell that] Vétoquinol has the technical skills, facilities and other resources
to enable it to effectively distribute animal health products in Canada.

 

D.           Parnell
has offered to appoint Vétoquinol as its exclusive distributor of the Products in Canada and Vétoquinol has accepted
such appointment, on the terms and conditions set out in this Agreement.

 

Operative Provisions

 

		1	Interpretation

 

1.1          In
this Agreement, unless the context otherwise requires:

 

Vétoquinol
Contract Manager means the person appointed by Vétoquinol in that role in accordance with Clause 22.2.

 

Agreement means
the following (each as amended from time to time in accordance with this Agreement) in order of priority:

 

(a)          the
Clauses of this document;

 

(b)          its
Schedules; and

 

any other documents generated in
accordance with this document and/or incorporated by reference.

 

    	 

    	 

    

 

Approved Sub-Distributors
has the meaning given to it in Clause 5.3(a).

 

Business Day
means any day a bank is open for business in Sydney, Australia and Montreal Canada, excluding weekends and bank and public holidays.

 

Claim means
a claim, demand or proceedings.

 

Commencement Date
means the date of this Agreement.

 

Confidential Information
means in relation to a Party (Disclosing Party) information that:

 

(a)          is
by its nature confidential;

 

(b)          is
designated by that Party as confidential; or

 

(c)          the
other Party (Recipient) knows, or ought to know, is confidential and includes:

 

(i)          information
comprised in or relating to any Intellectual Property Rights of the Disclosing Party;

 

(ii)         information
relating to the financial position of the Disclosing Party and in particular includes information relating to the assets or liabilities
of the Disclosing Party and any other matter that does or may affect the financial position or reputation of the Disclosing Party;

 

(iii)        information
relating to the internal management and structure of the Disclosing Party, or the personnel, policies and strategies of the Disclosing
Party;

 

(iv)        information
of the Disclosing Party to which the Recipient has access that has any actual or potential commercial value to the Disclosing Party
or to the person or corporation which supplied the information;

 

(v)         information
in the Recipient’s possession relating to the Disclosing Party’s clients or suppliers, and like information;

 

but
excludes information which:

 

(vi)        the
Recipient creates (whether alone or jointly with any person) independently of the Disclosing Party’s Confidential Information
(if the Recipient has evidence in writing that the information falls within this exception); or

 

(vii)       that
is public knowledge (and has become so otherwise than as a result of a breach of confidentiality by a Recipient or any person to
whom the Recipient has disclosed the information).

 

CPI means the
quarterly Consumer Price Index as published by the Australian Bureau of Statistics.

 

    	2

    	 

    

 

Contract Manager
means the Vétoquinol Contract Manager and the Parnell Contract Manager.

 

Cost of Goods
means the Price paid for the Products by Vétoquinol Ex-Works (Inco Terms 2000) Parnell

 

Damages means
liabilities, losses, damages, costs and expenses arising in contract, tort or statute, including reasonable legal fees and disbursements
and costs of investigation, litigation, settlement, judgment, interest and penalties.

 

Establishment Fee
means the payment specified in Clause 3.1.

 

Estroplan means
Parnell’s hormone injection product containing cloprostenol. VDD means the Veterinary Drugs Directorate of Canada.

 

Force Majeure Event
means any one or more of the following events:

 

(a)          fire,
flood, earthquake, elements of nature or act of God;

 

(b)          riot,
civil disorder, rebellion or revolution;

 

(c)          strike,
lockout, other industrial disturbance or labour difficulty,

 

(d)          war,
act of public enemy, blockade

 

(e)          unavailability
of any essential equipment or materials;

 

(f)          unavoidable
accident; or

 

(g)          lack
of transportation.

 

Government Agency
means any government or any governmental, semi-governmental, administrative, fiscal or judicial body, department, commission, authority,
tribunal, agency or entity responsible for granting Registration in the Territory.

 

GMP means Good
Manufacturing Practice as required by the VDD or any other regulatory authority

 

Gross Margin
means ***.

 

GST Act means
the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

 

Insolvency Event
means any of the following events occurring to a Party:

 

(a)          that
Party disposes of the whole of its assets, operations or business other than in the normal course of business;

 

(b)          an
arrangement is entered into between that Party and its creditors other than for the purposes of reconstruction under Part 5.1
or 5.3A of the Corporations Act;

 

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(c)          that
Party ceases pursuant to section  495E of the Corporations Act to be able to pay its debts as they become due;

 

(d)          a
mortgagee enters into possession or disposes of the whole or any part of that Party’s assets or business;

 

(e)          a
receiver, a receiver and manager, a trustee in bankruptcy, a liquidator, a provisional liquidator, an administrator or other like
person is appointed over the whole or any part of that Party’s assets or business; or

 

(f)          a
voluntary administrator is appointed in relation to it.

 

Intellectual Property
Rights or IPR means all intellectual property rights at any time protected by statute or common law, including:

 

(a)          patents,
copyright and any registered intellectual property rights (including rights in circuit layouts under the Circuit Layouts Act and
similar rights in other countries in circuit layouts), registered designs, trade marks, and any right to have Confidential Information
kept confidential; and

 

(b)          any
application or right to apply for registration of any of the rights referred to in paragraph (a).

 

Law means any
applicable statute, regulation, by-law, ordinance or subordinate legislation in force from time to time in Australia or in the
Territory, and includes the common law as applicable from time to time.

 

Marketing Plan
means the plan described in Clause 10.1.

 

Minimum Sales Quantity
means the minimum quantity of each of the Products which Vétoquinol must purchase from Parnell during each Year, as specified
in Schedule 2.

 

Net Effective Selling
Price means the net revenue divided by the total units sold of each of the Products

 

Parnell Contract
Manager means the person appointed by Parnell in that role in accordance with Clause 22.1.

 

Person means
any individual, corporation, partnership, limited liability company, entity or any combination.

 

Personnel (of a
Party) means the officers, employees, contractors (including Approved Sub Contractors and their employees) and agents of that
Party and its Related Corporations (but in the case of Vétoquinol, excluding Parnell’s Personnel).

 

Product Unit
means a unit of a Product in the standard sized vials used by Parnell to distribute the Products.

 

    	4

    	 

    

 

Price means
the price payable by Vétoquinol ***determined by Parnell for the Products as set out in Schedule 1 from time to time
during the Term and ***.

 

Products means:

 

(a)          at
the date of this Agreement - the products identified in Schedule 1 as being the subject of a Registration; and

 

(b)          after
the date of this Agreement - those products identified in Schedule 1 which become the subject of a Registration in the Territory

 

Purchase Order
means a purchase order for Products submitted to Parnell by Vétoquinol that conforms with both Clause 12.2 and Clause 12.5.

 

Records has
the meaning given to it in Clause 22.

 

Registration
means any consent, registration, filing, agreement, certificate, license, approval, permit, authority or exemption granted by or
from Government Agency necessary for the importation and/or the sale of the Products in the Territory.

 

Related Corporation
means a related body corporate within the meaning given to that term in Section 9 of the Corporations Act.

 

Specifications means
the specifications of the Products as set out in Schedule 4 which is pursuant to the requirements of the registration of the Products.

 

Term means the
term of this Agreement as specified in Clause 7.

 

Territory means
Canada.

 

Trade Mark means
any one or more of the Product or Company trade marks specified in Schedule 3.

 

Vétoquinol
Contract Manager means the person appointed by Vétoquinol in that role in accordance with Clause 22.2.

 

Year means each
twelve month period from January to December each calendar year during the currency of the Agreement with the first year starting
at the Commencement Date and finishing December 31, 2009.

 

1.2          In
this Agreement, unless the context otherwise requires:

 

(a)          headings
are for convenience only and do not affect the interpretation of this Agreement;

 

(b)          words
importing the singular include the plural and vice versa;

 

(c)          words
importing a gender include any gender;

 

    	5

    	 

    

 

(d)         other
parts of speech and grammatical forms of a word or phrase defined in this Agreement have a corresponding meaning;

 

(e)         an
expression importing a natural person includes any company, partnership, joint venture, association, corporation or other body
corporate and any Governmental Agency;

 

(f)          a
reference to any thing (including, but not limited to, any right) includes a part of that thing;

 

(g)         a
reference to a part, clause, Party, annexure, exhibit or schedule is a reference to a part and clause of, and a Party, annexure
exhibit and schedule to, this Agreement and a reference to this Agreement includes any annexure, exhibit and schedule;

 

(h)         a
reference to a statute, regulation, proclamation, ordinance or by-law includes all statutes, regulations, proclamations, ordinances
or by-laws amending, consolidating or replacing it, and a reference to a statute includes all regulations, proclamations, ordinances
and by-laws issued under that statute;

 

(i)          a
reference to a document includes all amendments or supplements to, or replacements or novations of, that document;

 

(j)          a
reference to a Party to a document includes that Party’s successors and permitted assigns;

 

(k)         where
the day on or by which any thing is to be done is not a Business Day, that thing must be done on or by the preceding Business Day;

 

(l)          a
reference to an agreement other than this Agreement includes an undertaking, agreement or legally enforceable arrangement or understanding
whether or not in writing;

 

(m)        a
reference to an asset includes all property of any nature, including, but not limited to, a business, and all rights, revenues
and benefits; and

 

(n)         a
reference to a document includes any agreement in writing, or any certificate, notice, instrument or other document of any kind.

 

1.3          In
this Agreement a reference to $ or dollars is a reference to the lawful currency of Canada.

 

		2	Scope

 

2.1          Parnell
has offered to appoint Vétoquinol as the exclusive distributor of the Products in the Territory as a result of Vétoquinol’s
representation to Parnell that Vétoquinol has the capability to:

 

(a)         effectively
distribute, market and sell the Products in the Territory; and

 

    	6

    	 

    

 

(b)          to
develop and grow that market for the products which Parnell has available for sale in the Territory.

 

2.2          Parnell
represents the Products possess unique offerings in established markets in the Territory which:

 

(a)          will
enable Vétoquinol to immediately commence exclusively distributing marketing and selling Estroplan 20mL in the Territory.

 

		3	Establishment Fee

 

3.1          In
consideration of:

 

(a)          Vétoquinol’s
appointment as the exclusive distributor of the Products in the Territory;

 

(b)          the
work carried out by Parnell to gain registration of Products in the Territory;

 

(c)          the
potential market value which Vétoquinol will be able to derive from Parnell’s Registrations for the Products in the
Territory,

 

and in recognition of Parnell’s
agreement to the terms and conditions set out in this Agreement, Vétoquinol agrees to pay to Parnell an amount of $200,000
(Establishment Fee).

 

3.2          Vétoquinol
must pay to Parnell the Establishment Fee according to the following payment schedule:

 

(a)          $200,000
payable within *** of the date on the ***of the ***.

 

3.3          If
Parnell does not receive payment of the Establishment Fee from Vétoquinol within the time specified for payment in Clause 3.2
then this Agreement will, by virtue of this fact alone, cease to have any further force or effect whatsoever and the provisions
of Clause 33 (with any necessary changes being made) will apply.

 

		4	Minimum Sales Quantities

 

4.1          The
continued operation of this Agreement is conditional on Vétoquinol purchasing from Parnell the Minimum Sales Quantity of
Product, as specified in Schedule 2. Vétoquinol’s obligation to purchase the Minimum Sales Quantity for Estroplan
100mL only commences after *** for Estroplan 100mL and the 100mL ***.

 

4.2          If
Vétoquinol fails to purchase from Parnell the Minimum Sales Quantity in accordance with Clause 4.1 for two consecutive
years and Parnell ***, Parnell can terminate the Agreement by providing written notice of termination as set forth in Clause 32.

 

    	7

    	 

    

 

		5	Appointment

 

5.1          Parnell,
by this Agreement, appoints Vétoquinol as its exclusive distributor of the Products in the Territory.

 

5.2          During
the Term:

 

(a)          Parnell
will not supply any Products containing Cloprostenol or Dinaprost to any third Party in the Territory;

 

(b)          Parnell
will not appoint any other Person to distribute the Products in the Territory.

 

(c)          Parnell
will inform in writing its distributors in the USA of the appointment of Vétoquinol as exclusive distributor of the Products
in the Territory and shall ensure that the exclusivity granted by it to Vétoquinol is effective.

 

5.3          Vétoquinol
is entitled to appoint sub-distributors of the Products and to authorize such sub-distributors to market, distribute and sell the
Products in the Territory provided that:

 

(a)          Vétoquinol
obtains Parnell’s prior written approval to the appointment of the sub-distributor (Approved Sub-Distributor);

 

(b)          the
Approved Sub-Distributor itself does not have the right to appoint any further sub-distributors;

 

(c)          the
Approved Sub-Distributor is to have no contractual relationship with Parnell and Vétoquinol will ensure that all of the
Approved Sub-Distributor’s communications regarding the Products are dealt with by Vétoquinol;

 

(d)          Vétoquinol
will require, by contractual obligation, that the Approved Sub- Distributor complies with the provisions of this Agreement as though
the Approved Sub-Distributor were a Party to this Agreement; and

 

(e)          where
an Approved Sub-Distributor is required by contractual obligation to do, or not to do, something, Vétoquinol must enforce
those contractual obligations where the Approved Sub-Distributor defaults.

 

(f)          For
the purposes of this Clause 5.3 the term Approved Sub-Distributors does not extend to wholesalers who distribute the
Products to veterinary clinics or farmers under a prescription from a licensed veterinarian in their normal course of business.

 

5.4          At
all times, Vétoquinol must distribute, market and sell the Products in the Territory in accordance with the statutory requirements
and industry standards applicable in the Territory.

 

    	8

    	 

    

 

5.5          Vétoquinol
must not do any act, matter or thing, or omit to do any act, matter or thing which would jeopardize the goodwill of Parnell or
the reputation of the Products in the Territory.

 

5.6          Vétoquinol
must not directly or indirectly:

 

(a)          export
the Products from the Territory;

 

(b)          distribute
the Products to any person outside the Territory; or

 

(c)          distribute
the Products to any persons in the Territory whom Vétoquinol knows they will distribute the Products outside the Territory
or export the Products from the Territory.

 

5.7          Parnell
must not directly or indirectly:

 

(a)          distribute
the Products to any person whom Parnell knows, intends to distribute the Products in the Territory or export the Products to the
Territory.

 

5.8          Vétoquinol
must refer to Parnell any enquiries or orders received by Vétoquinol for the supply of the Products outside the Territory.

 

		6	Restrictions

 

6.1          During
the Term, Vétoquinol must not promote, market, sell or distribute to any third Party in the Territory any products containing
Cloprostenol or Dinaprost other than those described in Schedule 1.

 

6.2          If
during the Term Parnell can not supply Products that are the subject of a Purchase Order for a period of more than 120 days after
the Delivery Date, Vétoquinol may provide written notice of intention to sell an alternative product containing Cloprostenol.
The alternative product sold by Vétoquinol must not use the Estroplan brand name or trade dress and must be a product that
is registered in the Territory.

 

		7	Term

 

7.1          The
term of Vétoquinol’s appointment as exclusive distributor under this Agreement commences on the Commencement Date
and continues for seven (7) years from the Commencement Date. This Agreement will be extended for a subsequent terms of three (3)
years except if terminated by either Party with a *** written notice or until the appointment is terminated early in accordance
with Clause 3.3, Clause 4.2 or in accordance with Clause 32.1.

 

		8	Registrations of Products

 

8.1          Parnell
will use all reasonable commercial endeavours to obtain and maintain (where it is required to do so by virtue of the nature of
the Products) the Registration of Products identified in Schedule 1 so as to enable Vétoquinol to market, sell and
distribute the Products in the Territory.

 

    	9

    	 

    

 

8.2          Subject
to Clause 8.3, if the Registration of a Product is terminated (and Registration of the Product is required) and Vétoquinol
is thus unable to market, sell and distribute the product in the Territory then:

 

(a)          Parnell
is entitled to remove the Product from Schedule 1; and

 

(b)          Vétoquinol
will cease to be entitled to market, sell and distribute that Product in the Territory.

 

Parnell will not be
required to repay the Establishment Fee (as defined in Clause 3) to Vétoquinol if the Registration of a Product is
terminated and the Product is removed from Schedule 1, however, Vétoquinol will be entitled to terminate this Agreement
and shall be able to claim damages as prescribed in Clause 33.

 

8.3          At
the Commencement Date, Estroplan 100mL vial is not yet approved. Parnell will use all reasonable commercial efforts to secure approval
for this variant of the Product in the Territory

 

		9	Marketing of Products

 

9.1          Vétoquinol
must use all reasonable commercial endeavors to:

 

(a)          promote
the Products in the Territory; and

 

(b)          maximize
the sales of the Products in the Territory.

 

9.2          Vétoquinol
has complete responsibility for the sale of the Products to prospective customers in the Territory and must undertake these activities
at its expense.

 

9.3          Parnell
licenses Vétoquinol to use the marketing materials which are developed by Parnell and supplied by it to Vétoquinol.

 

9.4          Vétoquinol
must develop, at its own expense, marketing materials to promote the Products in the Territory. Parnell will assist Vétoquinol
in the developing of marketing materials.

 

9.5          Vétoquinol
must not use marketing materials developed by it unless those marketing materials have been provided to Parnell for review. Such
marketing materials will be deemed to have been reviewed by Parnell where they are submitted to Parnell by Vétoquinol and
Parnell does not notify Vétoquinol in writing of any objection to those marketing materials within 10 Business Days.

 

9.6          Vétoquinol
is responsible for the accuracy and completeness of the marketing materials created by it except for the factual information provided
by Parnell and used by Vétoquinol without modification in the context used by Parnell.

 

9.7          Vétoquinol
must not make any representation or warranty about the Products other than those contained in the information or marketing materials
provided by Parnell or prepared by Vétoquinol and approved by Parnell in accordance with Clause 9.5.

 

    	10

    	 

    

 

9.8          Vétoquinol
must not misuse the Estroplan brand or do any act or omission that may otherwise damage the Estroplan brand. If Parnell believes
that Vétoquinol has or is intending to do an act or omission that does or may cause damage to the Estroplan brand both parties
must meet in good faith to discuss the offending act or omission and agree a suitable remedy. If agreement can not be reached,
Parnell is entitled to terminate the contract, however, Vétoquinol shall immediately be able to claim the damages prescribed
in Clause 33.4

 

		10	Marketing Plans and Reports

 

10.1        No
later than the first day of each Year, other than the first year, Parnell and Vétoquinol must have agreed, in accordance
with Clause 10.2, a written plan (to be prepared by Vétoquinol) in a form to be agreed between the Parties relating
to the marketing, sale and distribution of the Products in the Territory by Vétoquinol for the Year to which it relates
(Marketing Plan).

 

10.2        The
process for the approval of the Marketing Plan is as follows:

 

(a)          In
the first year Vétoquinol must prepare and submit to Parnell an Marketing Plan no later than 30 days after the Commencement
Date. Parnell must notify Vétoquinol of its comments no later than 15 days thereafter.

 

(b)          No
later than 60 days before the start of each subsequent Year, Vétoquinol must prepare and submit to Parnell a draft Marketing
Plan for that Year

 

(c)          No
later than 30 days after receipt by Parnell of the draft Marketing Plan, Parnell must notify Vétoquinol of its comments
to the draft Marketing Plan

 

(d)          Representatives
of Parnell and Vétoquinol may also meet to discuss (or discuss by telephone) any matters concerning the Marketing Plan.

 

(e)          Parnell
and Vétoquinol must negotiate in good faith to reach agreement on the Marketing Plan that maximizes sales of the Products
and maximizes profits for both Parties no later than 10 Business Days prior to the commencement of the Year to which the draft
Marketing Plan relates.

 

10.3        Vétoquinol
must report in writing to Parnell against the Marketing Plan at quarterly intervals during the Term, such report to be in the form
agreed between the Parties and received by Parnell within 15 Business Days of the end of each quarter Year.

 

10.4        Vétoquinol
must provide any other information reasonably requested by Parnell in relation to Vétoquinol’s marketing activities
under this Agreement when requested to do so by Parnell.

 

10.5        If
at any time an event occurs which has, or is likely to have, a material impact on the annual sales forecast being a change greater
than 10% of the agreed annual sales forecast in the Marketing Plan then, Vétoquinol must immediately give Parnell written
notice detailing:

 

(a)          when
the event occurred;

 

    	11

    	 

    

 

(b)          describing
the nature of the event;

 

(c)          Vétoquinol’s
view of the impact the event will have; and

 

(d)          in
the event of a decrease in the annual sales forecast Vétoquinol’s plan of action that it will take to minimize the
impact of the event (Mitigation Plan).

 

10.6        Vétoquinol
must then take action at the time and in the manner contemplated by that Mitigation Plan.

 

10.7        Vétoquinol
must keep Parnell informed in a timely manner of any general market, economic and regulatory developments that Vétoquinol,
acting reasonably, considers may adversely or beneficially effect the sales of the Products by it in the Territory.

 

		11	Pricing

 

11.1        The
price payable by Vétoquinol to Parnell for the supply of the Products will be calculated by reference to the ***.

 

11.2        Parnell
must notify Vétoquinol of any price changes for any Product ***.

 

11.3        In
the event that ***must *** with respect to ***. In the event that ***for the ***

 

11.4        Upon
the new price taking effect under this Clause, Schedule 1 will be deemed to have been amended by the deletion of the old Price
and the insertion of the new Price.

 

11.5        For
the purpose of all calculations and determinations made under this Agreement, the Price is the ***.

 

11.6        If,
at any time during the Term, ***in the Territory results in Vétoquinol having to sell a Product in the Territory *** (Relevant
Event) then, *** (RE Notice), *** must meet to *** as to the *** in order to *** to a ***. If the ***days of a RE Notice
being given (and the RE Notice *** then subject to preservation of *** in Clause 33.4., *** after notice of termination is
given

 

		12	Purchase Orders

 

12.1        Vétoquinol
is entitled at any time during the Term of the Agreement to request the supply of Estroplan 20 from Parnell, subject to Clauses 12.3 and 12.4.
Vétoquinol will make these requests by submitting a Purchase Order to Parnell.

 

12.2        Vétoquinol
is entitled to submit a Purchase Order to Parnell for the supply of Estroplan 100mL on and from the earlier of:

 

(a)          the
date on which Parnell notifies Vétoquinol in writing that Estroplan 100mL is approved; or

 

(b)          ***;

 

    	12

    	 

    

 

12.3        A
Purchase Order submitted by Vétoquinol, under this Agreement, must:

 

(a)          be
for a minimum quantity of

 

(i)          ***of
Product AND/OR

 

(ii)         ***of
Product

 

Except for
the first Purchase Order, which must be for *** of Product

 

(b)          be
in writing;

 

(c)          be
dated;

 

(d)          not
be inconsistent with the terms of this Agreement; and

 

(e)          be
signed by Vétoquinol.

 

12.4        A
Purchase Order submitted by Vétoquinol, under this Agreement, must also specify the following:

 

(a)          subject
to the Minimum Sales Quantities, the quantity of the Products required;

 

(b)          the
date by which Vétoquinol requires delivery of the Products which will not be less than ***, unless otherwise agreed in writing
by both Parties;

 

(c)          the
reference number of the Purchase Order; and

 

(d)          any
other special instructions Vétoquinol requires Parnell to observe in relation to the Products, the subject matter of the
Purchase Order (including any special delivery instructions).

 

12.5        A
Purchase Order will not be binding on Parnell unless it is signed by Vétoquinol.

 

12.6        Each
Purchase Order will be accepted by Parnell within five (5) days , such acceptance not to be unreasonably withheld and will constitute
a separate binding contract between Parnell and Vétoquinol for the delivery by Parnell, and the purchase by Vétoquinol,
of the Products specified in the Purchase Order on the terms and conditions set out in this Agreement. 

 

12.7        Vétoquinol
is not entitled to vary the requested delivery date or quantity of the Products specified in any Purchase Order given by it under
this Agreement, except if agreed by Parnell.

 

12.8        Notwithstanding
anything to the contrary in this Agreement, in the first Purchase Order placed on Parnell for Estroplan, Vétoquinol will
purchase a minimum quantity of *** of Estroplan from Parnell in ***.

 

    	13

    	 

    

 

		13	Delivery

 

13.1        Subject
to Vétoquinol ordering the minimum order quantity specified in Clause 12.3, Parnell will only deliver product that
has a ***.

 

13.2        The
Products sold by Parnell to Vétoquinol pursuant to an accepted Purchase Order will be sold *** (as defined in Incoterms).

 

13.3        Parnell
will deliver Products, the subject of an accepted Purchase Order, with accompanying documentation including certificate of analysis
and commercial invoice by making the Products available *** as is notified from time to time by Parnell to Vétoquinol).

 

13.4        Notwithstanding
Clause 13.3, the first Purchase Order submitted by Vétoquinol for Estroplan will be available *** instead of the address
specified in Clause 13.3.

 

13.5        Parnell
has no obligation to arrange loading of, carriage of or insurance for those Products sold by Parnell to Vétoquinol pursuant
to an accepted Purchase Order. At the request of Vétoquinol, Parnell may assist in making arrangements at Vétoquinol
expense for the loading of and carriage of those Products.

 

13.6        Parnell
will give written notice as to the date on which Products, the subject of an accepted Purchase Order, will be available for collection
by Vétoquinol (Delivery Notice).

 

13.7        Vétoquinol
is deemed to take delivery of the Products on the date on which a Delivery Notice is given to Vétoquinol.

 

13.8        Parnell
bears all risk of loss or damage to Products until the Delivery Notice relating to those Products is given to Vétoquinol
on and from which date Vétoquinol bears all risk of loss or damage to the Products.

 

13.9        Parnell
will make all reasonable commercial efforts to make the Products, the subject of an accepted Purchase Order, available for collection
by or on behalf of Vétoquinol promptly after notice of Parnell’s acceptance is given in respect of the Purchase Order.

 

13.10      In
the event that Parnell makes arrangements on behalf of Vétoquinol for the carriage of goods all undertakings will be made
with best endeavours but no liability is assumed by Parnell. Any invoices payable for delivery of goods will be payable by Vétoquinol
for which Parnell will provide a relevant invoice.

 

		14	Late Delivery or Failure to Deliver

 

14.1        Subject
to Clause 14.2, ***not be ***which are the ***provided that:

 

(a)          Vétoquinol
may by written notice to Parnell (Delivery Reject Notice) reject delivery of those Products where delivery takes place ***
nominated in the relevant Purchase Order (Sunset Delivery Date); and

 

    	14

    	 

    

 

(b)          to
the extent that Parnell is not ***, the ***will be *** in which the *** occurs.

 

14.2        Despite
any other provisions contained in this agreement, the amount to be payable by Parnell shall not exceed $200,000 in any such
case.

 

14.3        If:

 

(a)          Vétoquinol
places a Purchase Order for a quantity of Estroplan within the *** of this Agreement; and

 

(b)          Parnell
is unable to deliver *** Product/Estroplan specified in that Purchase Order (Affected Estroplan Quantity) by the *** because
it is *** for whatever reason, except in case of Force Majeure as defined in Clause 26 herein , or because the
*** has not been ***, or because the *** has been *** then, even if the Agreement is terminated by Vétoquinol or Parnell
for just cause *** to *** as agreed damages ***that (i) elapses after the *** up to the month which is ***and (ii) in which the
Affected Estroplan Quantity is not delivered or if the *** occurs more than ***then ***that (i) elapses after the *** up to the
month which is ***and (ii) in which the Affected Estroplan Quantity is not delivered.

 

		15	Invoices and Payment

 

15.1        Any
invoice submitted by Parnell to Vétoquinol under this Agreement must be in writing, be dated, relate to the Products and
must include (as the case may require):

 

(a)          the
reference number of the Purchase Order;

 

(b)          confirmation
of the quantity of the Products delivered;

 

(c)          the
address to which the Products was delivered;

 

(d)          the
Actual Delivery Date;

 

(e)          the
total amount of the invoice; and

 

(f)          the
reference number of the invoice.

 

15.2        The
price payable by Vétoquinol for Products, which are the subject of a Purchase Order accepted in writing by Parnell, will
be invoiced by Parnell on the date on which it gives written notice of its acceptance of the Purchase Order to Vétoquinol
(Invoice Date).

 

15.3        Subject
to Clause (a), invoices issued by Parnell are payable by Vétoquinol as follows:

 

(a)          Vétoquinol
must pay Parnell’s invoice *** of the date of the Delivery Notice (in accordance with Clause 13.6)

 

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15.4        Vétoquinol
must pay the amount which has become due and payable under any invoice, issued by Parnell, by wire transfer to the bank account
nominated by Parnell to Vétoquinol for this purpose.

 

15.5        Subject
to Clause 15.6, if Vétoquinol fails to pay an invoice by the due date, interest will accrue on the unpaid amount until
it is paid at the rate of ten percent (10%) per annum. Interest is payable on demand and in addition to the amount on which interest
is charged.

 

15.6        If
Vétoquinol disputes the amount claimed to be due to Parnell under any invoice issued by Parnell, Vétoquinol must
pay the amount which is not in dispute and notify Parnell in writing about the amount in dispute and the grounds for the dispute.
Such a dispute is to be resolved in accordance with the procedure set out in Clause 25. If as a result of the dispute resolution
process, an amount is found to have been properly invoiced by Parnell and payable by Vétoquinol then, interest will be payable
on the unpaid amount from the due date to the date of payment in accordance with Clause 15.5.

 

		16	Adverse Experience Reporting

 

16.1        Parnell
as the owner of the Registration is responsible for meeting Adverse Experience Reporting obligations as required by the VDD and
any other regulatory agency. In order for Parnell to meet those obligations, Vétoquinol must:

 

(a)          immediately
provide a written report to Parnell setting out any information received by Vétoquinol, or of which it becomes aware, concerning
any side effect, toxicity, lack of efficacy or any other adverse reaction associated with the use of the Products, whether or not
considered to be attributable to use or administration of the Products.

 

(b)          If
Vétoquinol is required to report any information concerning any side effect, toxicity, lack of efficacy or any other adverse
reaction associated with the administration or use of the Products to a Government Agency, provide a copy of that report to Parnell
together with copies of all correspondence between Vétoquinol and the Government Agency.

 

16.2        Parnell
must immediately provide Vétoquinol with written notice of any information concerning any side effect, toxicity, lack of
efficacy or other adverse reaction associated with administration or use of the Products, whether or not considered to be attributable
to the Products, of which it is notified or becomes aware.

 

		17	Product Recall

 

17.1        If
either Party (acting reasonably) determines that any quantity of the Products supplied by it needs to be recalled, it must immediately
give written notice to the other Party (Recall Determination Notice).

 

17.2        Upon
a Recall Determination Notice being given, representatives of each Party must meet (either in person or by teleconference) to determine
whether a Product recall should be implemented and, if so, by which Party the Product recall should be implemented.

 

    	16

    	 

    

 

17.3        In
the absence of agreement between the Parties concerning the implementation of the Product recall, Parnell will be responsible for
determining the Product recall strategy and Vétoquinol will be responsible for implementing the Product recall in the Territory
and Parnell will be responsible for any necessary negotiations and communications with the VDD or any regulatory authorities.

 

17.4        Each
Party will cooperate with the other (and any wholesalers of Vétoquinol and/or Approved Sub-Distributors) in relation to
the Product recall.

 

17.5        Subject
to Clause 17.6, all direct costs incurred by Vétoquinol in implementing the Product recall in the Territory are to
be borne by Parnell. In addition, Parnell must pay to Vétoquinol subject to the limitation in Clause 29.2 an account
of profit for lost sales attributed to the act or omission of Parnell or its personnel which caused the Product recall by it giving
Vétoquinol a credit for that amount in relation to future supplies of the Products made by Parnell to Vétoquinol.

 

17.6        If
a Product recall is caused by any voluntary act or omission of Vétoquinol or its personnel, Vétoquinol must:

 

(a)          pay
all costs associated with the implementation of the Product recall;

 

(b)          must
reimburse Parnell for all reasonable direct costs incurred by it in managing such Product recall (and implementing it if Vétoquinol
refuses or neglects to do so); and

 

(c)          pay
to Parnell an account of profit for lost sales attributed to the act or omission of Vétoquinol or its personnel which caused
the Product recall subject to the limitation in Clause 29.2.

 

		18	Packaging and Markings

 

18.1        In
this Clause reference to packaging includes the livery or trade dress of the primary and secondary packaging together with
the labeling on the primary and secondary packaging.

 

18.2        Parnell
acknowledges that Vétoquinol trade dress includes:

 

(a)          materials
in which Vétoquinol owns copyright; and

 

(b)          trade
marks owned by Vétoquinol (Vétoquinol Content).

 

Vétoquinol
grants a license to Parnell to reproduce the Vétoquinol Content for the purpose of enabling Parnell to comply with its obligations
under this Clause.

 

18.3        Parnell
will supply the Products:

 

(a)          in
packaging with:

 

    	17

    	 

    

 

(i)          Vétoquinol’s
trade dress as agreed in writing from time to time between the Parties such agreement not to be unreasonably withheld or delayed;
and

 

(ii)         Parnell’s
trade mark and/or logo as agreed in writing from time to time between the Parties such agreement not to be unreasonably withheld
or delayed; and

 

(b)          with
labeling (on primary and secondary packaging) in accordance with the legislative requirements of the Territory as specified by
Vétoquinol.

 

18.4        Vétoquinol
may request a modification to the packaging of the Products not more than once in each Year.

 

18.5        If
Vétoquinol wishes to request changes to the packaging of the Products in accordance with Clause 18.4, it must give
notice to Parnell in writing and submit details of the proposed modification for Parnell’s approval. Subject to Clause 18.9,
Parnell reserves the right not to implement requested changes to the packaging in the interest of consistent branding for the Products
in other countries.

 

18.6        Once
a modification to the packaging has been approved by Parnell in writing, the modification will be implemented once all existing
packaging materials developed for use in the Territory have been used up.

 

18.7        Vétoquinol
must not alter, obscure, remove, conceal or otherwise interfere with any markings or indications of the source or origin of the
Products placed by Parnell on the original packaging and external makeup of the Products except as may be required by a Government
Agency and with Parnell’s written approval.

 

18.8        Parnell
is responsible for ensuring that the specifications for packaging, labeling and package inserts comply with the requirements of
the Laws of the Territory and the requirements of any Government Agency in the Territory.

 

18.9        Where
packaging has to be modified to meet the requirements of a change in Law in the Territory or a change in the requirements of a
Government Agency in the Territory and Vétoquinol becomes aware of this requirement Vétoquinol must immediately notify
Parnell of the change in requirements in writing.

 

18.10      Parnell
has no obligation to incorporate such modifications until all existing packaging has been utilized unless there is a requirement
by the VDD that the modification to the packaging must be implemented sooner.

 

18.11      In
the case where the changes are only required by Vétoquinol, Parnell will modify the packaging at Vétoquinol’s
cost.

 

    	18

    	 

    

 

		19	Trade Mark

 

19.1        For
the purpose of enabling Vétoquinol to exercise its rights under this Agreement, Parnell grants an exclusive license to Vétoquinol
to use the Trade Mark in the Territory in conjunction with the marketing, distribution and sale of the Products but only in the
manner directed in writing by Parnell.

 

19.2        Without
limiting the generality of Clause 19.1, Vétoquinol must submit marketing materials, on which a Trade Mark appears,
for Parnell’s prior written approval.

 

19.3        A
Trade Mark may only be used in the manner approved.

 

19.4        Vétoquinol
must only use a Trade Mark in accordance with the written instructions given to it by Parnell.

 

19.5        Vétoquinol
must use, in its distribution and sale of the Products, the Trade Mark which relates to the Product.

 

		20	Product Warranties

 

20.1        Parnell
warrants to Vétoquinol that each batch of Products will:

 

(a)          be
free from defects at the time of delivery;

 

(b)         conform
to the Specification for the Products;

 

(c)          be
manufactured in accordance with GMP and all Laws and Registrations; and

 

(d)          not
infringe any Intellectual Property Rights or other rights of any third Party.

 

		21	General Warranties

 

21.1        Parnell
warrants to Vétoquinol that:

 

(a)          Parnell
and each of its Approved Sub-Contractors has, or will have at the relevant time, the resources, capacity, expertise and ability
to supply the Products;

 

(b)          Parnell
has the requisite power and authority to enter into this Agreement to carry out the obligations imposed on it by this Agreement;

 

(c)          the
execution and delivery of this Agreement has been properly authorized;

 

(d)          this
Agreement constitutes a legal, valid and binding obligation on its part;

 

(e)          this
Agreement does not conflict with any provision of its constitution or other constituent document or any Law; and

 

    	19

    	 

    

 

(f)          Parnell
has all licenses, registrations, consents, approvals and permits relevant to the obligations imposed on it by this Agreement;

 

(g)          it
owns, or has the right to use and will at all times own or have the right to use, ail Intellectual Property Rights in the Products;
and

 

(h)          (where
it is not the owner of such Intellectual Property Rights) it has, and will at all relevant times have, full authority to grant
all of the licenses granted by it under this Agreement.

 

(i)           it
shall sell the Products to Vétoquinol free and clear of any liens, claims or encumbrances

 

(j)           Parnell
will comply with the terms of the Manufacturing Quality Agreement specified in Schedule 5 and shall cause its third
Party manufacturer, if any, to comply with the MQA to assure that the Product meets specifications as approved by the VDD or other
regulatory agencies

 

(k)          the
formulation and use of the Product and the processes and methods used to create the Product do not and will not infringe any valid
Canadian patent or any other patent.

 

21.2         Vétoquinol
warrants to Parnell that:

 

(a)          Vétoquinol
has the requisite power and authority to enter into this Agreement to carry out the obligations imposed on it by this Agreement;

 

(b)          the
execution and delivery of this Agreement has been properly authorized;

 

(c)          this
Agreement constitutes a legal, valid and binding obligation on its part;

 

(d)          this
Agreement does not conflict with any provision of its constitution or other constituent document or any Law; and

 

(e)          Vétoquinol
has all licenses, Registrations, consents, approvals and permits relevant to the obligations imposed on it by this Agreement.

 

(f)          Vétoquinol
will comply with the terms of the Manufacturing Quality Agreement specified in Schedule 5

 

		22	Contract Management

 

22.1        Parnell
will nominate a person to act as its contract manager to manage the operation of this Agreement for Parnell and to represent Parnell
(either in person or through his or her delegate) in all day to day dealings with Vétoquinol (Parnell Contract Manager).

 

    	20

    	 

    

 

22.2        Vétoquinol
will nominate a person to act as its contract manager to manage the operation of this Agreement for Vétoquinol and to represent
Vétoquinol in all day to day dealings with Parnell (Vétoquinol Contract Manager).

 

22.3        The
Vétoquinol Contract Manager will:

 

(a)          be
the single point of contact for Parnell for the purposes of this Agreement;

 

(b)          have
the authority and be given the responsibility to perform for Vétoquinol each of the tasks referred to in this Clause 22;

 

(c)          be
a full time employee of Vétoquinol; and

 

(d)          have
a strong working knowledge of Vétoquinol’s business operations and the Products.

 

22.4        The
Contract Managers will (unless otherwise agreed):

 

(a)          meet
by teleconference at the times agreed by the Parties, but at least every three months during the currency of this Agreement or
on two Business Days notice at the request of either Party if an issue arises in relation to this Agreement;

 

(b)          review
and discuss (at a minimum):

 

(i)          Reports
submitted by Vétoquinol;

 

(ii)         performance
of Vétoquinol as measured against the Marketing Plan; or

 

(c)          at
any time raise any issues of concern or interest relating to this Agreement; and

 

(d)          work
in good faith to resolve any issues of concern, and if they are unable to resolve them refer the matter for resolution in accordance
with Clause 25.

 

		23	Records and Audits

 

23.1        Vétoquinol
agrees to establish and maintain line systems recording transactions and matters relating to:

 

(a)          the
supply of the Products;

 

(b)          its
performance; and

 

(c)          customer
feedback on the Products

 

(Records).

 

    	21

    	 

    

 

23.2        By
written request of Parnell, which may be done, on 10 Business Days notice, an independent auditor which is accepted by Vétoquinol
as being independent, acceptance not to be unreasonably withheld, may inspect the Records at a mutually agreed time.

 

23.3        Parnell
will use reasonable commercial endeavors to minimize the impact of any such inspection on Vétoquinol’s business. Vétoquinol
will not unreasonably withhold its agreement to the time for an audit.

 

23.4        Parnell
will retain all Records for completed transactions:

 

(a)          for
a period of seven years after the completion of the transactions to which the Records relate unless otherwise agreed between the
Parties; or

 

(b)          until
the termination of this Agreement, whichever is the sooner.

 

23.5        Parnell
must comply with all statutory obligations imposed upon it or Vétoquinol in relation to the retention of the Records and,
to the extent that those obligations are inconsistent with the provisions of this Agreement, it will comply with the statutory
obligations.

 

		24	Confidentiality

 

24.1        Each
Party (Recipient) must keep confidential the other Party’s (Disclosing Party’s) Confidential Information.

 

24.2        A
Recipient may only disclose the Disclosing Party’s Confidential Information, for the purpose of performing its obligations
under this Agreement, to:

 

(a)          officers,
employees, accountants, auditors, legal advisers and other professional advisers (approved by the Disclosing Party to receive Confidential
Information) of the Recipient, or officers and employees any person with whom the Recipient has a confidentiality agreement that
imposes on that person confidentiality obligations no less stringent than those imposed on Recipients under this Agreement, who:

 

(i)          have
a need to know (and only to the extent that each has a need to know); and

 

(ii)         have
been directed and have agreed to keep confidential the Confidential Information on terms consistent with this Agreement; or

 

(b)          the
extent, and to the persons, required by Law or an applicable regulatory body.

 

24.3        A
Recipient must, at its own expense:

 

(a)          ensure,
at all times, that each officer, employee and subcontractor to whom the Disclosing Party’s Confidential Information has been
disclosed under this Clause 24 keeps that information confidential;

 

    	22

    	 

    

 

(b)          establish
and maintain effective security measures to safeguard the Disclosing Party’s Confidential Information from unauthorized access
or use;

 

(c)          keep
the Disclosing Party’s Confidential Information under its control (whether it has physical possession of the Confidential
Information or not);

 

(d)          immediately
take all steps to prevent or stop, and comply with any direction issued by the Disclosing Party from time to time regarding, a
suspected or actual breach; and

 

(e)          immediately
notify the Disclosing Party of any suspected or actual unauthorized use, copying or disclosure of the Disclosing Party’s
Confidential Information.

 

24.4        Parnell
will provide assistance reasonably requested by Vétoquinol in relation to any proceedings that Vétoquinol may take
against any person (other than Parnell) for unauthorized use, copying or disclosure of Vétoquinol’s Confidential Information.

 

24.5        Vétoquinol
will provide assistance reasonably requested by Parnell in relation to any proceedings that Parnell may take against any person
(other than Vétoquinol) for unauthorized use, copying or disclosure of Parnell’s Confidential Information.

 

24.6        Each
Party acknowledges that it is aware that any breach of this Clause 24 may result in damage to the other Party and that each
Party is entitled to enforce its rights by specific performance or injunction proceedings as monetary damages may not be sufficient
relief.

 

24.7        On
termination of this Agreement, each Recipient agrees that:

 

(a)          it
must continue to keep confidential in accordance with this Clause 24 the Disclosing Party’s Confidential
Information; and

 

(b)          its
rights to use and disclose the Disclosing Party’s Confidential Information cease other than in relation to information which
the Recipient is required to disclose in order to comply with any reporting obligations to relevant regulatory bodies.

 

24.8        Neither
Party will make any public statements about the Agreement, the Products or its relationship with the other Party without the other
Party’s prior written approval.

 

24.9        All
references in this Clause to the “Disclosing Party” or the “Disclosing Party’s Confidential Information”
apply to a third Party whose Confidential Information is used in the performance of, or is necessary to the supply of the Products
as if the third Party was a Party to this Agreement.

 

		25	Dispute Resolution

 

25.1        If
a Party considers that a dispute has arisen, it may issue a notice to the other Party, setting out reasonable particulars of the
matter in dispute (a Dispute Notice).

 

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25.2        The
Parties must promptly hold good faith discussions to attempt to resolve the dispute and must (subject to privilege) furnish to
the other Party all information with respect to the dispute which is appropriate in connection with its resolution.

 

25.3        If
the dispute has not been resolved within 15 Business Days, or such longer period as the Parties may agree, this dispute resolution
procedure will be taken to be exhausted by the Parties and either Party may commence court proceedings in relation to a Dispute.

 

25.4        Except
where the dispute renders it impossible to do so, the Parties will continue performing their respective obligations under this
Agreement while a dispute is being resolved, unless and until such obligations are terminated or expire in accordance with this
Agreement.

 

25.5        Each
Party must use its best endeavors to ensure that where a dispute is reasonably foreseeable, it is dealt with at a sufficiently
early stage to ensure that there is a minimum effect on the ability of either Party to perform its obligations under this Agreement.

 

25.6        Despite
anything in this Clause 25, a Party may at any time commence court proceedings in relation to any dispute or claim arising
under or in connection with this Agreement where that Party seeks urgent or interlocutory relief.

 

25.7        Product
Quality Complaints

 

(a)          Any
complaint by Vétoquinol on defects of the Products delivered by Parnell shall be notified in writing by Vétoquinol
to Parnell within twenty (20) days business days from the date of the delivery of the Products in Vétoquinol’s facility
and Vétoquinol shall simultaneously send samples of such defective products to Parnell. In the case Vétoquinol becomes
aware of any defect in the Products which may not have been obvious at the delivery by visual inspection of such products, Vétoquinol
shall notify such defect to Parnell without any delay.

 

(b)          Upon
representative samples of the Defective Product Quantity being delivered to Parnell it will undertake a comprehensive investigation
of the cause of the product quality defect. In the event the defect is due solely to a fault by Parnell, Parnell shall replace
the Defective Product Quantity as soon as practicable and free of charge. Subject to the provisions of this Clause 24, in
the event that Parnell does not find a fault that is due solely to Parnell the product will be deemed to have been delivered and
payable.

 

		26	Force Majeure

 

26.1        If
either Party is prevented from, or impeded in, performing any of its obligations under this Agreement due to a Force Majeure Event,
it must promptly give notice to the other Party specifying:

 

(a)          the
circumstances constituting the Force Majeure Event; and

 

(b)          the
extent and likely duration of those circumstances.

 

    	24

    	 

    

 

26.2        If
either Party gives a notice under Clause 26.1 that Party’s obligations under this Agreement, will be suspended for as
long as the Force Majeure Event may continue to prevent it from, or impede it in, performing any of its obligations under this
Agreement.

 

26.3        If
there Is a Force Majeure Event, the notifying Party must:

 

(a)          make
every reasonable effort to minimize the effects of the Force Majeure Event;

 

(b)          use
its best efforts to overcome the Force Majeure Event; and

 

(c)          promptly
resume performance of its obligations under this Agreement as soon as reasonably possible after cessation of the Force Majeure
Event.

 

		27	IPR Infringement Indemnity

 

27.1        Parnell
indemnifies Vétoquinol and its respective Personnel (those indemnified) against all Damages that any of those indemnified
may suffer or incur in connection with any Claim that the marketing, sale and distribution of the Products infringes the Intellectual
Property Rights or moral rights of any person (IPR Infringement Claim), and must satisfy any settlement of or judgment given
in any IPR Infringement Claim.

 

27.2        If
a third Party makes an IPR Infringement Claim against Vétoquinol:

 

(a)          Vétoquinol
must promptly notify Parnell; and

 

(b)          Parnell
must ensure that the IPR Infringement Claim is promptly and appropriately defended.

 

27.3        Parnell
will have sole control and conduct of IPR Infringement Claims and any resulting settlement negotiations, unless Vétoquinol
requests, by giving notice to Parnell to defend or settle itself any IPR Infringement Claim, which (in Vétoquinol’s
reasonable opinion) is not being conducted in accordance with Clause  27.2.

 

27.4        On
receiving a request from Vétoquinol under Clause 27.3, Parnell must accept Vétoquinol’s request and provide
all assistance reasonably required by Vétoquinol to defend or settle that IPR Infringement Claim, in which case Vétoquinol
will consult with Parnell during the proceedings and before settling the IPR Infringement Claim.

 

27.5        If
Parnell is defending the IPR Infringement Claim in accordance with Clause  27.2(b):

 

(a)          Vétoquinol
will provide, Parnell promptly with all reasonable assistance Parnell requires in relation to, and in its defense of, the IPR Infringement
Claim; and

 

(b)          Parnell
must not unnecessarily or unreasonably take, or fail to take, any action if to do so would damage the name and reputation of Vétoquinol.

 

    	25

    	 

    

 

27.6        If
a Product becomes, or in Parnell’s reasonable opinion is likely to become, the subject of an IPR infringement Claim Parnell
is entitled to cease to offer that Product for sale in the Territory and, by notice in writing to Vétoquinol, terminate
Vétoquinol’s right to distribute that Product whereupon that Product will cease to be included in Schedule 1.
Parnell is entitled to exercise its rights under this Clause subject to the damages prescribed in Clause 33.4 payable to Vétoquinol.

 

		28	Indemnities

 

28.1        Each
Party (Indemnifier) indemnifies the other Party, its Personnel, their successors and assigns (Indemnified) but against
any and all Damages that the Indemnified may sustain or incur in connection with any claim made or asserted against them in respect
of the personal injury or death or tangible property damage arising out of or in connection with the use of or administration of
the Products.

 

28.2        The
amounts referred to in Clause 28.1 are not payable to the extent they are due to the negligence, breach of contract, fraud
or willful misconduct of the Indemnified.

 

		29	Limitation of Liability

 

29.1        Other
than as specified in this Agreement and to the fullest extent permitted by law all implied conditions and warranties are, by the
operation of this Clause, excluded.

 

29.2        The
liability of either Party for breach of this Agreement or in tort, or for any other common law or statutory cause of action arising
out of the operation of this Agreement (including an indemnity), will be limited (subject to Clauses 29.3 and 29.4,
in aggregate, to $200,000.

 

29.3        For
the avoidance of doubt, but subject to Clause 29.1, the limitations and exclusions in Clause 29.2 do not apply to loss
incurred by either Party in respect of:

 

(a)          breach
of confidence;

 

(b)          liability
for personal injury or property damage;

 

(c)          liability
under the IP indemnity;

 

(d)          fraud
by either Party Parnell or either Party’s Personnel; or

 

(e)          unlawful
or willful acts and omissions.

 

29.4        Without
limiting any of their respective obligations under this Agreement each Party must mitigate losses suffered under this Agreement.

 

		30	Insurances

 

30.1        Each
Party (an Insuring Party) must take out and maintain during the currency of the Agreement a comprehensive product liability
insurance policy to cover all sums which may become legally liable to pay consequent upon:

 

    	26

    	 

    

 

(a)          the
death of or bodily injury (including disease or illness) to any natural person or animal; and

 

(b)          loss
of, or damage to, real or personal property (including the loss of use thereof), in connection with supply of the Products.

 

30.2        Each
Insuring Party must ensure that:

 

(a)          the
insurance policy taken out in accordance with Clause 30.1 will be effected with a reputable insurance company;

 

(b)          the
products liability cover referred to in Clause 30.1 is for a minimum cover of $ 10 million for each claim and in the aggregate;

 

(c)          the
insurance policy taken out in accordance with Clause 30.1 cannot be amended or cancelled without written notice being given
to the other Party;

 

(d)          the
insurance policy taken out in accordance with Clause 30.1 will comply with the laws of all the jurisdictions in which
Parnell will be performing its obligations under this Agreement;

 

30.3        Each
Insuring Party must comply with all of the terms and conditions of any insurance policy taken out under this Clause.

 

30.4        Each
Insuring Party must, within 20 business days of the Commencement Date and on request being made by the other Party, promptly provide
to the other Party copies of certificates or other evidence of currency for insurance policies effected in accordance with this
Clause 30.

 

		31	Notices

 

31.1        A
Party giving notice or notifying under this Agreement must do so in writing:

 

(a)          directed
to the recipient’s address specified in this Clause, as varied by any notice; and

 

(b)          hand
delivered or sent by prepaid post or sent by facsimile or sent by email to that address.

 

31.2        The
Parties’ addresses, facsimile numbers and email addresses are:

 

Parnell: 

 

North America (Aust) Pty Ltd

 

Vétoquinol: 

 

Vétoquinol SA 

 

    	27

    	 

    

 

31.3        A
notice given in accordance with Clause 31.1 is taken to be received: 

 

(a)          if
hand delivered, on delivery;

 

(b)          if
sent by prepaid post, five Business Days after the date of posting; or

 

(c)          if
sent by facsimile, when the sender’s facsimile system generates a message confirming successful transmission of the total
number of pages of the notice unless, within one Business Day after that transmission, the recipient informs the sender that it
has not received the entire notice; or

 

(d)          if
sent by email, one Business Day after the time of dispatch if receipt is confirmed by the recipient within one Business Day after
the time of dispatch.

 

31.4        Where
a Party’s postal address, email address or facsimile number changes from that noted above, that Party will provide a written
notice to the other Party notifying it of such change.

 

		32	Termination

 

32.1        In
addition to any other entitlement it has to terminate this Agreement in accordance with its terms, Parnell may, by written notice
to Vétoquinol, terminate this Agreement if:

 

(a)          Vétoquinol
materially breaches this Agreement and the breach cannot be, or is not, rectified within ***after a notice from Parnell specifying
the breach;

 

(b)          an
Insolvency Event occurs in relation to Vétoquinol; or

 

(c)          any
other event specified in this Agreement as giving rise to a right for Parnell to terminate occurs,

 

which notice will take
effect on the day on which it is given.

 

32.2        In
addition to any other entitlement it has to terminate this Agreement in accordance with its terms, Vétoquinol may, by notice
to Parnell, terminate this Agreement:

 

(a)          if
Parnell materially breaches this Agreement and the breach cannot be, or is not, rectified within ***after a notice from Vétoquinol
specifying the breach subject to the damages prescribed in 33.4 payable to Vétoquinol.; or

 

(b)          if
an Insolvency Event occurs in relation to Parnell, or

 

(c)          any
other event specified in this Agreement as giving rise to a right for Vétoquinol to terminate occurs, which in certain cases
is also subject to the damages prescribed in 14.3 and 33.4 payable to Vétoquinol.

 

(d)          in
the case Parnell cannot supply Product on conditions given in Clause 6.2 and except if due to Force Majeure, Vétoquinol
shall be entitled to terminate this Agreement and shall be able to claim damages as prescribed in Article 33.4.

 

    	28

    	 

    

 

which notice will take
effect on the day on which it is given.

 

32.3        If
as a result of any merger or acquisition or business reconstruction undertaken by Parnell (whether as a buyer or a seller) Parnell
(or its successor or assign) determines that it wishes to have the right to market, sell and distribute the Products in the Territory
then upon written notice of agreement by Vétoquinol, Parnell (or its successor or assign) may terminate this Agreement by
giving 12 months notice in writing to Vétoquinol which notice may be given at any time after the Commencement Date.

 

		33	After Termination

 

33.1        After
notice of termination is given:

 

(a)          ***
any ***and ***for the ***; and

 

(b)          ***to
***of the Products which it ***provided that ***of the Products ***. If *** this ***then the ***for the ***will be the ***that
***any *** for ***. In the event of ***that are *** not *** in the ***.

 

(c)          Any
sums owing from Parnell to Vétoquinol shall be paid

 

33.2        After
notice of termination is given, ***whether or not *** of Products which are the *** to the ***. *** will ***of its *** of the ***.
If *** that it will *** then *** and ***in respect ***will be ***.

 

33.3        Termination
of this Agreement in its entirety (or as it relates to the Products) will not affect any accrued rights of either Party.

 

33.4        If
the Agreement *** of its *** or if the *** with *** and in particular *** of the *** as described in *** to ***as agreed

 

(a)          ***(i)
up to the month which is *** and (ii) ***up to the month which is ***.

 

		34	Miscellaneous

 

34.1        This
Agreement (including its Schedules):

 

(a)          constitutes
the entire agreement between the Parties as to its subject matter; and

 

(b)          in
relation to that subject matter, supersedes any prior understanding or agreement between the Parties and any prior condition, warranty,
indemnity or representation imposed, given or made by a Party.

 

34.2        Each
Party must use reasonable efforts to do all things necessary or desirable to give full effect to this Agreement.

 

    	29

    	 

    

 

34.3        The
failure of a Party at any time to require performance of any obligation under this Agreement is not a waiver of and is without
prejudice to that Party’s right:

 

(a)          to
exercise any right that Party may have under this Agreement or otherwise in relation to the other Party’s acts or omissions;

 

(b)          to
claim Damages for breach of that obligation; and

 

(c)          at
any other time to require performance of that or any other obligation under this Agreement,

 

unless written notice
to that effect is given in accordance with Clause 31.

 

34.4        Waiver
of any provision of or right under this Agreement:

 

(a)          must
be in writing signed by the Party entitled to the benefit of that provision or right; and

 

(b)          is
effective only to the extent set out in any written waiver.

 

34.5        Except
as expressly provided otherwise in this Agreement, a right, power, remedy, entitlement or privilege given or granted to a Party
under this Agreement is cumulative with, without prejudice to and not exclusive of any other right, power, remedy, entitlement
or privilege granted or given under this Agreement or by Law.

 

34.6        A
Party will not be liable to the other Party for any damages to the extent that the breach giving rise to the damages was caused
by the other Party’s failure to perform its obligations under this Agreement, including a failure resulting from the other
Party’s negligence or breach of this Agreement.

 

34.7        Nothing
in this Agreement, or any circumstances associated with it or its performance, give rise to any relationship of partnership or
employer and employee, joint venture or fiduciary duty between Vétoquinol and Parnell.

 

34.8        Part
or all of any provision of this Agreement that is illegal or unenforceable may be severed from this Agreement and the remaining
provisions of this Agreement continue in force.

 

34.9        Clauses 15, 24, 25, 26, 27, 28, 29, 31, 33 and 34
will survive the expiration or earlier termination of this Agreement.

 

34.10      This
Agreement is governed by the law applicable in New South Wales. Each Party irrevocably and unconditionally submits to the jurisdiction
of the courts exercising jurisdiction in that State.

 

34.11      The
Parties agree that good faith and fair dealing shall be applied throughout this agreement

 

[Schedules commence next page]

 

    	30

    	 

    

 

SCHEDULE 1

[Products and Price]

 

	Product	***	***
	
        Estroplan 

        20ml vial
	***	***
	
        Estroplan 

        100mL Glass vial
	***	***

 

    	S-1-1

    	 

    

 

SCHEDULE 2

 

***

	***	***	***
	***	***	***

 

***

	***	***
	***	***

 

***

    	S-2-1

    	 

    

 

SCHEDULE 3

[Product Trade Marks]

 

	Product	 	Trademark
	 	 	 
	Estroplan 20mL	 	Estroplan
	 	 	 
	Estroplan 100mL	 	Estroplan

 

    	S-3-1

    	 

    

 

SCHEDULE 4

[Product Specifications]

 

	Product Name:	ESTROPLAN INJECTION
	 	 
	TEST	LIMIT/SPECIFICATION
	***	***
	***	***
	***	***
	***	***
	***	***
	***	***
	***	***
	***	***
	***	***

    	S-4-1

    	 

    

 

DISTRIBUTION AND SUPPLY AGREEMENT

 

SCHEDULE 5

[Manufacturing Quality Agreement (“MQA”)]

 

1.1           ***

	***

 

1.2           ***

	***

 

***

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	***	***
	***	***
	***	***
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	***	***

***

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	***	 	 	***
	***	 	 	***
	***	 	 	***
	***	 	 	***

 

    	S-4-2

    	 

    

 

DISTRIBUTION AND SUPPLY AGREEMENT

 

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***

	***	 	***

 

DISTRIBUTION AND SUPPLY AGREEMENT

 

	***	 	 

***

 

    	S-4-3

    	 

    

 

DISTRIBUTION AND SUPPLY AGREEMENT

	Executed as an agreement:  	 	 	 
	 	 	 	 
	EXECUTED for an on behalf of 	 	)	 
	Parnell North America	 	)	 
	Pty Limited by a director	 	)	 
	in the presence of:  	 	 	 
	 	 	 	 
	/s/ Erika Kristy Vikor	 	 	/s/ Robert Joseph
	Signature of witness	 	 	Signature of director
	 	 	 	 
	Erika Kristy Vikor	 	 	Robert Joseph
	Name	 	 	Name
	 	 	 	 
	EXECUTED for an on behalf of	 	)	 
	Vétoquinol by a director	 	)	 
	in the presence of:	 	)	 
	 	 	 	 
	/s/ Christelle Georges	 	 	/s/ Etienne Frechin
	Signature of witness	 	 	Signature of Chairman and Managing Director
	 	 	 	 
	Name:  Christelle GEORGES	 	 	Name:  Etienne FRECHINExhibit 10.2

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS
OF THIS DOCUMENT.  EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION

  

DISTRIBUTION AND SUPPLY AGREEMENT

PARNELL EUROPE PTY LTD

ABN A2 138 251 56A

and

ELANCO, a division of ELI LILLY and COMPANY

  

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	1.0	Interpretation	1
	 	 	 
	2.0	Scope	7
	 	 	 
	3.0	Product Approval Fees	8
	 	 	 
	4.0	Minimum Sales Quantities	8
	 	 	 
	5.0	Appointment and Supply of the active ingredient	9
	 	 	 
	6.0	Restrictions	10
	 	 	 
	7.0	Term	11
	 	 	 
	8.0	Marketing of Products	11
	 	 	 
	9.0	Marketing Plans and Reports	12
	 	 	 
	10.0	Pricing	12
	 	 	 
	11.0	Purchase Orders	13
	 	 	 
	12.0	Delivery	14
	 	 	 
	13.0	Late Delivery or Failure to Deliver	15
	 	 	 
	14.0	Invoices and Payment	16
	 	 	 
	15.0	Registration and Adverse Experience Reporting	17
	 	 	 
	16.0	Product Recall	17
	 	 	 
	17.0	Packaging and Markings	18
	 	 	 
	18.0	Trade Mark	19
	 	 	 
	19.0	Product Warranties	20
	 	 	 
	20.0	General Warranties	20
	 	 	 
	21.0	Contract Management	21
	 	 	 
	22.0	Records and Audits	22
	 	 	 
	23.0	Confidentiality	23
	 	 	 
	24.0	Dispute Resolution	25
	 	 	 
	25.0	Force Majeure	25
	 	 	 
	26.0	IPR Infringement Indemnity	26
	 	 	 
	27.0	Indemnities	27
	 	 	 
	28.0	Limitation of Liability	27
	 	 	 
	29.0	Insurances	28
	 	 	 
	30.0	Notices	29

 

    	-i-

    	 

    

  

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	31.0	Termination	29
	 	 	 
	32.0	After Termination	30
	 	 	 
	33.0	Miscellaneous	31

 

    	-ii-

    	 

    

 

DISTRIBUTION
AND SUPPLY AGREEMENT

 

Commencement Date:February 9,
2011

 

Parties

 

PARNELL EUROPE PTY LTD ABN 42 138
251 564 a company, organised under the laws of Australia, with registered office at Unit 4, 476 Gardeners Road, Alexandria, New
South Wales, Australia Represented by Mr. R JOSEPH, Chief Executive Officer, Hereinafter referred to as Parnell.

 

And

 

ELI LILLY AND COMPANY, a publicly-traded
Indiana corporation, operating through its Elanco division and having a principal place of business at 2500 Innovation Way N.,
Greenfield, Indiana 46140-9163 USA, and its Affiliates, herein after collectively referred to as Elanco.

 

Elanco and Parnell are individually
designated as the Party and collectively as the Parties.

 

Background

 

A.         Elanco
carries on business in the Territory of marketing, selling and distributing animal health products.

 

B.         Elanco
has represented to Parnell that Elanco has the technical skills, facilities and other resources to enable it to effectively distribute
animal health products in the Territory.

 

C.         Parnell
has the technical skills, facilities and other resources to manufacture animal health products.

 

D.         Parnell
has offered to appoint Elanco as its exclusive marketing partner and distributor of the Products in the Territory and Elanco has
accepted such appointment, on the terms and conditions set out in this Agreement.

 

Operative
Provisions

 

		1.0	Interpretation

 

		1.1	In this Agreement, unless the context otherwise requires:

 

Affiliates
means, with respect to a given Company, any other Company directly or indirectly controlling, controlled by or under control with
such given Company. For the purposes of this definition “control” means owning or controlling, in the aggregate, fifty
percent (50%) or greater of the voting rights.

 

Agreement means the following
(each as amended from time to time in accordance with this Agreement) in order of priority:

 

		(a)	the clauses of this document;

  

    	 

    	 

    

 

		(b)	its Schedules; and

 

any other documents generated in
accordance with this document and/or incorporated by reference.

 

Approved
Sub-Contractors has the meaning given to it in clause 5.

 

Business
Day means any day a bank is open for business in Sydney, Australia excluding weekends and bank and public holidays.

 

Claim
means a claim, demand or proceedings. Commencement Date means the date of this Agreement.

 

Confidential
Information means in relation to a party (Disclosing Party) information that:

 

		(a)	is by its nature confidential;

 

		(b)	is designated by that party as confidential; or

 

		(c)	the other party (Recipient) knows, or ought to know, is confidential and includes:

 

		(i)	information comprised in or relating to any Intellectual Property Rights of the Disclosing Party;

 

		(ii)	information relating to the financial position of the Disclosing Party and in particular includes
information relating to the assets or liabilities of the Disclosing Party and any other matter that does or may affect the financial
position or reputation of the Disclosing Party;

 

		(iii)	information relating to the internal management and structure of the Disclosing Party, or the personnel,
policies and strategies of the Disclosing Party;

 

		(iv)	information of the Disclosing Party to which the Recipient has access that has any actual or potential
commercial value to the Disclosing Party or to the person or corporation which supplied the information;

 

		(v)	information in the Recipient’s possession relating to the Disclosing Party’s clients
or suppliers, and like information;

 

but excludes information which:

 

		(vi)	the Recipient creates (whether alone or jointly with any person) independently of the Disclosing
Party’s Confidential Information (if the Recipient has evidence in writing that the information falls within this exception);
or

 

    	2

    	 

    

 

		(vii)	that is public knowledge (and has become so otherwise than as a result of a breach of confidentiality
by a Recipient or any person to whom the Recipient has disclosed the information).

 

Contract
Manager means the person appointed in that role in accordance with clause 21.

 

CPI
means the quarterly Consumer Price Index (All Groups, 6401.0) as published by the Australian Bureau of Statistics.

 

Delivery
Notice means the date that Products, which are the subject of a purchase order, have been released by Parnell and are available
for Elanco to collect at the Parnell site.

 

Damages
means liabilities, losses, damages, costs and expenses arising in contract, tort or statute, including reasonable legal fees and
disbursements and costs of investigation, litigation, settlement, judgment, interest and penalties.

 

FDA
means the Food and Drug Administration of the United States of America.

 

Force Majeure
Event means any extraordinary, unexpected and unavoidable event (provided that in all such cases the Party claiming relief
on account of such event can demonstrate that such event was extraordinary, unexpected and unavoidable by the exercise of reasonable
care), including any one or more of the following events:

 

		(a)	fire, flood, earthquake, elements of nature or act of God;

 

		(b)	riot, civil disorder, rebellion or revolution;

 

		(c)	strike, lockout, other industrial disturbance or labour difficulty,

 

		(d)	war, act of public enemy, blockade

 

		(e)	unavoidable accident; or

 

		(f)	lack of transportation.

 

Government
Agency means any government or any governmental, semi-governmental, administrative, fiscal or judicial body, department, commission,
authority, tribunal, agency or entity responsible for granting Registration in the Territory.

 

GMP
means Good Manufacturing Practice as required by any regulatory authority. Insolvency Event means any of the following events occurring
to a party:

 

		(a)	that party disposes of the whole of its assets, operations or business other than in the normal
course of business;

 

    	3

    	 

    

 

		(b)	an arrangement is entered into between that party and its creditors other than for the purposes
of reconstruction under Part 5.1 or 5.3A of the Corporations Act;

 

		(c)	that party ceases pursuant to section 495E of the Corporations Act to be able to pay its
debts as they become due;

 

		(d)	a mortgagee enters into possession or disposes of the whole or any part of that party’s assets
or business;

 

		(e)	a receiver, a receiver and manager, a trustee in bankruptcy, a liquidator, a provisional liquidator,
an administrator or other like person is appointed over the whole or any part of that party’s assets or business; or

 

		(f)	a voluntary administrator is appointed in relation to it.

 

Intellectual
Property Rights or IPR means all intellectual property rights at any time protected by statute or common law, including:

 

		(a)	patents, copyright and any registered intellectual property rights (including rights in circuit
layouts under the Circuit Layouts Act and similar rights in other countries in circuit layouts), registered designs, trade marks,
and any right to have Confidential Information kept confidential; and

 

		(b)	any application or right to apply for registration of any of the rights referred to in paragraph (a).

 

Law
means any applicable statute, regulation, by-law, ordinance or subordinate legislation in force from time to time in Australia
or in the Territory, and includes the common law as applicable from time to time.

 

Marketing
Plan means the plan described in clause 9.

 

Minimum
Sales Quantity means the minimum quantity of each of the Products that Elanco must purchase from Parnell during each Year,
as specified in Schedule 2.

 

Parnell
Contract Manager means the person appointed by Parnell in that role in accordance with clause 21.

 

Person
means any individual, corporation, partnership, limited liability company, entity or any combination.

 

Personnel
(of a party) means the officers, employees, contractors (including Approved Sub Contractors and their employees) and agents
of that party and its Related Corporations (but in the case of Elanco, excluding Parnell’s Personnel).

 

    	4

    	 

    

 

Purchase
Price means the price payable by Elanco (in USD currency) determined by Parnell for the Products as set out in Schedule 5
from time to time during the Term and excludes any and all state and federal taxes including but not limited to sales taxes.

 

Product
Unit means a unit of a Product in the standard sized vials used by Parnell to distribute the Products.

 

Products
means the Products identified in Schedule I with their primary and secondary packaging.

 

Purchase
Order means a purchase order for Products submitted to Parnell by Elanco that conforms with both clause 11.2 and clause 11.6.

 

Records
has the meaning given to it in clause 22.

 

Registration
means any consent, registration, marketing authorisation, filing, agreement, certificate, licence, approval, permit, authority
or exemption granted by or from Government Agency necessary for the importation and/or the sale of the Products in the Territory.

 

Related
Corporation means a ‘related body corporate’ within the meaning given to that term in Section 9 of the Corporations
Act.

 

Sales Price
means the average price Elanco expects to be able to sell Products to distribution across the Territory.

 

Specifications
means the specifications of the Products as set out in Schedule 4.

 

Targeted
Claims means the claims of the Products as defined in Schedule 1.

 

Target Margin
means Sales Price minus Purchase Price.

 

Target Margin
rate means Target Margin divided by Sales Price.

 

Term
means the term of this Agreement as specified in clause 7.

 

Territory
means the countries where the Products can be distributed as identified in Schedule 6.

 

Third Parties
means any entity, including any natural person, other than Parnell or Elanco and their respective Affiliates

 

Trade Mark
means any one or more of the trade marks specified in Schedule 3.

 

Year
means each twelve-month period from January to December each calendar year during the Term with the first year starting
at the Commencement Date and finishing on December 31 2011.

 

    	5

    	 

    

 

Zone
means either the European Union or the United States of America as separate regions within the Territory and as additional product
registrations occur such additional geographic areas that may be added from time to time

 

Zydax means the product
bearing that trade name and such specifications as contained in Schedule 4 of this Agreement

 

		1.2	In this Agreement, unless the context otherwise requires:

 

		(a)	headings are for convenience only and do not affect the interpretation of this Agreement;

 

		(b)	words importing the singular include the plural and vice versa;

 

		(c)	words importing a gender include any gender;

 

		(d)	other parts of speech and grammatical forms of a word or phrase defined in this Agreement have
a corresponding meaning;

 

		(e)	an expression importing a natural person includes any company, partnership, joint venture, association,
corporation or other body corporate and any Governmental Agency;

 

		(f)	a reference to anything (including, but not limited to, any right) includes a part of that thing;

 

		(g)	a reference to a part, clause, party, annexure, exhibit or schedule is a reference to a part and
clause of, and a party, annexure exhibit and schedule to, this Agreement and a reference to this Agreement includes any annexure,
exhibit and schedule;

 

		(h)	a reference to a statute, regulation, proclamation, ordinance or by-law includes all statutes,
regulations, proclamations, ordinances or by-laws amending, consolidating or replacing it, and a reference to a statute includes
all regulations, proclamations, ordinances and by-laws issued under that statute;

 

		(i)	a reference to a document includes all amendments or supplements to, or replacements or novations
of, that document;

 

		(j)	a reference to a party to a document includes that party’s successors and permitted assigns;

 

		(k)	where the day on or by which any thing is to be done is not a Business Day, that thing must be
done on or by the preceding Business Day;

 

    	6

    	 

    

 

		(l)	a reference to an agreement other than this Agreement includes an undertaking, agreement or legally
enforceable arrangement or understanding whether or not in writing;

 

		(m)	a reference to an asset includes all property of any nature, including, but not limited to, a business,
and all rights, revenues and benefits; and

 

		(n)	a reference to a document includes any agreement in writing, or any certificate, notice, instrument
or other document of any kind.

 

In this Agreement a reference to
$ or USD is a reference to the lawful currency of the United States of America.

 

Elanco enters into this Agreement
for the benefit of itself and its Affiliates but remains responsible for the performance of the obligations imposed on it under
this Agreement even if those obligations are being put into effect by an Affiliate.

 

		2.0	Scope

 

		2.1	Parnell appoints Elanco as the sole and exclusive distributor of the Products in the Territory
as a result of Elanco’s representation to Parnell that Elanco has the capability to:

 

		(a)	effectively distribute, market and sell the Products in the Territory as mentioned in Schedule 6;
and

 

		(b)	to develop and grow that market for the products which Parnell has available for sale in the Territory.

 

		2.2	Parnell represents the Products possess unique offerings in established markets in the Territory
and which:

 

		(a)	have been developed prior to the appointment of Elanco under this Agreement; and

 

		(b)	will enable Elanco to exclusively distribute, market and sell the Products in the Territory.

 

		2.3	Parnell shall obtain within *** from the Commencement Date the Registration with Targeted Claims
for Zydax in Europe and in the USA. Parnell is liable for the maintenance of such Registration so as to enable Elanco to market,
sell and distribute the Product in the Territory.

 

If the *** of a Product *** of
the *** is *** the Product *** of the *** to be *** Product ***.

 

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		3.0	Product Approval Fees

 

		3.1	Product Approval Fees: In consideration of Parnell obtaining the registrations for the Product
in US and EU, Elanco will pay Parnell the following non-refundable, non-creditable fees according to the payment schedule outlined
in 3.1(a) and 3.1(b), subject to the Approval Delay Damages provision as outlined in Clause 13:

 

		(a)	For European Approval:

 

		(i)	EU Payment 1: ***to be paid by Elanco to Parnell not later than ***after the Commencement Date

 

		(ii)	EU Payment 2: *** to be paid by Elanco *** of the *** of the ***, Elanco will ***to make such payment
within ***, but Elanco will not be in default of this agreement if payment is within ***.

 

		(b)	For US Approval:

 

		(i)	US Payment 1: ***to be paid by Elanco to Parnell not later than ***after the Commencement Date

 

		(ii)	US Payment 2: *** to be paid by Elanco *** of the *** of the ***, Elanco will *** to make such
payment within ten ***, but Elanco will not be in default of this agreement if payment is within ***

 

		(c)	For the avoidance of doubt, ***. However, Parnell will provide Elanco with *** for the *** for
Elanco to *** and Elanco will be *** and Parnell will be *** the Product ***. As *** other than ***, then Elanco and Parnell will
*** to the *** and ***.

 

		3.2	If Parnell does not receive payment of the fees from Elanco within the time specified for payment
in clause 3.1, then the Parties shall ***, this Agreement will, *** in the *** of the ***.

 

		4.0	Minimum Sales Quantities

 

		4.1	The continued operation of this Agreement in respect of, and Elanco’s right to exclusively
market distribute and sell each Product is conditional on Elanco purchasing from Parnell the annual Minimum Sales Quantity of Zydax
in the Territory as specified in Schedule 2 which may be amended from time to time by written agreement of the Parties. Elanco’s
obligation to purchase the Minimum Sales Quantity for Zydax in the Territory only commences after the US or EU authorities have
issued the Registration for Zydax.

 

		4.2	If Elanco fails to purchase from Parnell the Minimum Sales Quantity of a Product in accordance
with Clause 4.1 *** of the *** and the ***.

 

    	8

    	 

    

 

		4.3	Within *** of the date of the *** in accordance with Clause 4.2, ***:

 

		(a)	***; or

 

		(b)	***.

 

		(c)	*** or *** the *** of the ***this Agreement ***.

 

		5.0	Appointment and Supply of the active ingredient

 

		5.1	Parnell, by this Agreement, appoints Elanco as its sole and exclusive distributor of the Products
in the Territory. Any right not granted by this Agreement to Elanco is reserved to Parnell.

 

		5.2	During the Term:

 

		(a)	Parnell will not supply any product containing the same active ingredient as that of the Products
to any third party in the Territory;

 

		(b)	Parnell will not appoint any other Person to distribute the Products in the Territory.

 

		5.3	Elanco is entitled to appoint sub-distributors of the Products and to authorize such sub-distributors
to market, distribute and sell the Products in the Territory provided that:

 

		(a)	Elanco will provide Parnell prior written notice before Elanco appoints a sub-distributor (Approved
Sub-Distributor);

 

		(b)	the Approved Sub-Distributor itself does not have the right to appoint any further sub-distributors;

 

		(c)	the Approved Sub-Distributor is to have no contractual relationship with Parnell and Elanco will
ensure that all of the Approved Sub-Distributor’s communications regarding the Products are dealt with by Elanco;

 

		(d)	Elanco will require, by contractual obligation, that the Approved Sub-Distributor complies with
the provisions of this Agreement as though the Approved Sub-Distributor were a party to this Agreement; and

 

		(e)	where an Approved Sub-Distributor is required by contractual obligation to do, or not to do, something,
Elanco must enforce those contractual obligations where the Approved Sub-Distributor defaults.

 

		5.4	At all times, Elanco must distribute, market and sell the Products in the Territory in accordance
with the statutory requirements and industry standards applicable in the Territory

 

    	9

    	 

    

 

		5.5	Elanco must not do any act, matter or thing, or omit to do any act, matter or thing which would
jeopardise the goodwill of Parnell or the reputation of the Products in the Territory and reciprocally Parnell must not do any
act, matter or thing, or omit to do any act, matter or thing which would jeopardise the goodwill of Elanco.

 

		5.6	Elanco must not directly or indirectly:

 

		(a)	export the Products from the Territory

 

		(b)	distribute the Products to any person outside the Territory; or

 

		(c)	distribute the Products to any person in the Territory whom Elanco knows, intends to distribute
the Products outside the Territory or export the Products from the Territory.

 

		5.7	For the purposes of this clause 5, the term Approved Sub-Distributors does not extend to wholesalers
who distribute the Products to veterinary clinics in their normal course of business.

 

		5.8	Elanco must refer to Parnell any enquiries or orders received by Elanco for the supply of the Products
outside the Territory.

 

		5.9	In order to avoid any interruption to the supply line of Zydax, Parnell will:

 

		(a)	ensure that adequate risk management processes are in place; and

 

		(b)	maintain an adequate inventory of the active ingredient of Zydax.

 

In the event of an interruption
to supply of the active ingredient of Zydax, Parnell’s inventory of this active ingredient will be first used to maintain
full supply of Zydax to Elanco.

 

		5.10	During the term of this agreement, if the regulatory authority approved product shelf-life (expiry
dating) of Zydax supplied by Parnell is less than *** and if Product is returned to Elanco due to Zydax exceeding the expiry dating,
then Parnell will ***. Parnell will use *** associated with its Zydax production schedule to ensure that material transferred to
Elanco at Parnell’s manufacturing facility *** will have a *** remaining shelf-life for product that was manufactured with
a *** expiration dating at time of manufacture.

 

		6.0	Restrictions

 

		6.1	Elanco must not promote, market, sell or distribute to any third party in the Territory any product
addressing canine osteoarthritis that is intended to have the same or similar therapeutic outcome (indicated for the control of
clinical signs associated with osteoarthritis) as the Products or which may reasonably be expected to compete against the Products.

 

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		7.0	Term

 

		7.1	The term of this Agreement commences on the Commencement Date and, subject to clause 7.2,
extends for 13 (thirteen) years, unless this Agreement is partially terminated earlier in accordance with clause 3, or totally
in accordance with clauses 10.2, 13.2, or 31.

 

		7.2	The Term continues:

 

		(a)	after the initial expiry date stated in clause 7.1 for two Years; and

 

		(b)	if so extended after that first extension, for successive periods of two Years,

 

unless written notice of termination
is given by either party to the other *** before the applicable expiry date

 

		8.0	Marketing of Products

 

		8.1	It is an essential term of this Agreement that Elanco must use all reasonable commercial endeavours
to:

 

		(a)	aggressively promote the Products in the Territory; and

 

		(b)	maximise the sales of the Products in the Territory

 

		(c)	where allowable by local policy, employ Zydax specific incentive plans

 

		8.2	Elanco has complete responsibility for the sale of the Products to prospective customers in the
Territory and must undertake these activities at its expense.

 

		8.3	Parnell will inform Elanco about marketing programs and services that have proven successful in
other markets outside the Territory and Parnell licences Elanco to use the marketing materials which are developed by Parnell and
supplied by it to Elanco.

 

		8.4	Elanco must develop, at its own expense, marketing materials to promote the Products in the Territory.
At its sole discretion and expense, Parnell may provide to Elanco marketing materials that Parnell believes Elanco should consider.
All deployment of marketing materials in the Territory will be sole and exclusive responsibility of Elanco. Parnell will have reasonable
access to audit Elanco’s GPP Policies.

 

		8.5	For each year of the Term of this Agreement a designated Parnell employee or employees will meet
with the Elanco designated employee to discuss and seek, on a reasonable basis, to gain alignment on the high-level marketing strategy
for the Products, such alignment not to be unreasonably withheld by either Party. Elanco must provide Parnell with samples of all
marketing materials developed by Elanco and upon which Parnell may provide written feedback.

 

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		8.6	Elanco is responsible for the accuracy and completeness of the marketing materials created by it
except for the factual information provided by Parnell and used by Elanco without modification in the context used by Parnell.

 

		9.0	Marketing Plans and Reports

 

		9.1	At least 75 (seventy-five) days prior to the commencement of each calendar year, Elanco will provide
an annual marketing plan to Parnell relating to the marketing, sale and distribution of the Products in the Territory for the Year
to which it relates (Marketing Plan). No later than 30 (thirty) days after the presentation of the Marketing Plan, Parnell may
provide written feedback on the Marketing Plan that maximises sales of the Products and maximises profits for both parties.

 

		9.2	Within 10 (ten) days of the end of each month during the Term, Elanco will provide to Parnell a
written report (in the format reasonably required by Parnell) summarising sales of Products made in that month for geographies
in the Territory.

 

		9.3	Within 10 (ten) days of the end of each quarter during the Term, Elanco will provide to Parnell
a written report (in the format reasonably required by Parnell) detailing sales and marketing activities undertaken in accordance
with the Marketing Plan. In addition and to the extent information can be reasonably acquired, such report will also detail competitor
activity (in the format reasonably required by Parnell).

 

		9.4	Elanco must provide any other information linked to the Products reasonably requested by Parnell
in relation to Elanco’s marketing activities under this Agreement when requested to do so by Parnell within a reasonable
time period.

 

		9.5	Elanco must keep Parnell informed in a timely manner of any general market, economic and regulatory
developments that Elanco, acting reasonably, considers may adversely or beneficially effect the sales of the Products by it in
the Territory.

 

		10.0	Pricing

 

		10.1	The Purchase Price payable by Elanco to Parnell for the supply of the Products will be specified
in Schedule 5.

 

		10.2	*** of the Products in the Territory. In the event that *** to *** and *** in the Territory and
the ***;

 

		(a)	***will take to *** by for example ***; and

 

		(b)	the *** will make in respect thereof to *** for the ***.

 

    	12

    	 

    

 

		(c)	*** is *** the Agreement ***.

 

		10.3	Parnell must notify Elanco of any price changes for any one or more of the Products at least ***
prior to the commencement of each Year.

 

		10.4	Payment for the Products shall be made in US dollars. Sales made in currencies other than USD shall
be converted to USD using the applicable rate on the day the relevant product was purchased from Parnell, utilizing Elanco’s
current standard exchange rate methodology for the translation of foreign currency sales into United States dollars. For the sake
of clarity this means that currency fluctuations occurring from the time Products are purchased by Elanco until the time when such
Products are then sold by Elanco will not be taken into account in the calculation of Target Margin.

 

		10.5	In the event that Parnell wishes to change prices by ***. In the event that ***.

 

		10.6	Upon the new price taking effect under this clause, Schedule 5 will be deemed to have been
amended by the deletion of the old Price and the insertion of the new Price.

 

		10.7	For the purpose of all calculations and determinations made under this Agreement, the Price is
the Price applying on the date on which the applicable Purchase Order is accepted.

 

		11.0	Purchase Orders

 

		11.1	Elanco is entitled at any time during the Term to request the supply of the Products (but for the
avoidance of doubt, subject to clause 11.2, only Products which are the subject of a Registration) from Parnell. Elanco will
make these requests by submitting a Purchase Order to Parnell.

 

		11.2	Notwithstanding the *** and ***Elanco is entitled to submit a Purchase Order to Parnell for the
*** for a ***:

 

		(a)	the *** is the *** in that *** the *** of a *** in a ***; or

 

		(b)	for *** after *** from ***; or

 

		(c)	***.

 

		11.3	A Purchase Order submitted by Elanco, under this Agreement, must:

 

		(a)	be in writing;

 

		(b)	be dated;

 

		(c)	state the country in the Territory to which the product is to be sold and be shipped;

 

    	13

    	 

    

 

		(d)	not be inconsistent with the terms of this Agreement; and

 

		11.4	A Purchase Order submitted by Elanco, under this Agreement, must also specify the following:

 

		(a)	subject to the Minimum Order Quantities, the quantity of the Products required;

 

		(b)	the date by which Elanco requires delivery of the Products which will *** from the date of the
Purchase Order, unless otherwise agreed in writing by both parties;

 

		(c)	the reference number of the Purchase Order; and

 

		(d)	*** to the Products, ***.

 

		11.5	Each Purchase Order is ***.  Each Purchase Order will upon *** for the ***, and the ***, of the ***
on the terms and conditions set out in ***.

 

		11.6	Subject to clauses 11.3 and 11.4 Parnell is not entitled to reject a Purchase Order for the
Products.

 

		11.7	Elanco is not entitled to vary the requested delivery date or quantity of the Products specified
in any Purchase Order given by it under this Agreement unless agreed to in writing by Parnell.

 

		12.0	Delivery

 

		12.1	The Products sold by Parnell to Elanco pursuant to an accepted Purchase Order will be sold ***
(as defined in Incoterms 2010).

 

		12.2	Parnell will deliver Products, the subject of an accepted Purchase Order, *** as is notified from
time to time by Parnell to Elanco).

 

		12.3	Parnell has no obligation to arrange carriage of or insurance for those Products sold by Parnell
to Elanco pursuant to an accepted Purchase Order. At the request of Elanco, Parnell may assist in making arrangements at Elanco’s
expense for the carriage of those Products.

 

		12.4	Parnell will give written notice as to the date on which Products, the subject of an accepted Purchase
Order, will be available for collection by Elanco (Delivery Notice).

 

    	14

    	 

    

 

		12.5	Elanco is deemed to take delivery of the Products on the date on which a Delivery Notice is given
to Elanco. Elanco will ***

 

		12.6	Parnell bears all risk of loss or damage to Products until the Delivery Notice relating to those
Products is given to Elanco on and from which date Elanco bears all risk of loss or damage to the Products; however, Parnell will
ensure that due care and attention is given to the safe storage and protection of the Products whilst on Parnell’s premises.

 

		12.7	Parnell will make all reasonable commercial efforts to make the Products, the subject of an accepted
Purchase Order, available for collection by or on behalf of Elanco promptly after notice of Parnell’s acceptance is given
in respect of the Purchase Order. However, Parnell is only obliged to make available for delivery Products to the extent that Parnell
is reasonably able to obtain supply of the ingredients of those Products.

 

		13.0	Late Delivery or Failure to Deliver

 

		13.1	Despite any other provisions contained in this Agreement, the present provision contains protection
for Elanco in the event Parnell is unable to deliver or is late in delivering quantities of Zydax to Elanco.

 

		(a)	If the registration of Zydax has not occurred in a Zone by the end of the *** after Commencement Date,
Parnell will pay monthly damages either in US dollars or if registration has occurred in one Zone then in free goods to Elanco
beginning the first day of the first month after the *** post Commencement Date.  *** of *** for the “US Delay Damages”
and *** for the “EU Delay Damages,” respectively.

 

		(b)	Payment of the respective US Delay Damages or EU Delay Damages will continue until Zydax is registered
in the Zone that was not registered as of the *** post Commencement date, or until, in each case, the EU Delay Damages are equal
to ***and the US Delay Damages are equal to ***.

 

		(c)	Parnell shall provide to Elanco an executed Parent Guarantee whereby Parnell’s Delay Damages
obligations to Elanco, if any, are guaranteed by Parnell Pharmaceutical Holdings Pty Ltd.

 

		(d)	In the event that *** has still ***, or Parnell is *** defined in Schedule 2 by *** either
party may terminate this Agreement by giving the other notice in writing, such termination to take effect immediately.

 

		13.2	In the event that *** has still *** by ***, either party may terminate this Agreement by giving
the other notice in writing, such termination to take effect immediately.

 

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		14.0	Invoices and Payment

 

		14.1	Any invoice submitted by Parnell to Elanco under this Agreement must be in writing, be dated, relate
to the Products and must include (as the case may require):

 

		(a)	the reference number of the Purchase Order;

 

		(b)	confirmation of the quantity of the Products delivered;

 

		(c)	the address to which the Products was delivered;

 

		(d)	the Actual Delivery Date;

 

		(e)	the total amount of the invoice and the currency of the invoice; and

 

		(f)	the reference number of the invoice.

 

		14.2	The amount payable by Elanco for Products, which are the subject of a Purchase Order accepted in
writing by Parnell, will be invoiced by Parnell on the date on which Parnell issues the applicable Delivery Notice.

 

		14.3	Invoices shall be paid by Elanco to Parnell ***. Parnell may elect to request early payment in
accordance with ***.

 

		14.4	Elanco must pay the amount which has become due and payable under any invoice, issued by Parnell,
by wire transfer or ACH to the bank account nominated by Parnell to Elanco for this purpose.

 

		14.5	Subject to clause 14.6, if Elanco fails to pay an invoice by the due date for payment, interest
will accrue on the unpaid amount until it is paid at a rate of twelve (12) percent per annum. Interest is payable on demand
and in addition to the amount on which interest is charged.

 

		14.6	If Elanco disputes the amount claimed to be due to Parnell under any invoice issued by Parnell,
Elanco must pay the amount which is not in dispute and notify Parnell in writing about the amount in dispute and the grounds for
the dispute. Such a dispute is to be resolved in accordance with the procedure set out in clause 24.

 

		14.7	If as a result of the dispute resolution process an amount is found to have been properly invoiced
by Parnell and payable by Elanco then interest will be payable on the unpaid amount from the due date to the date of payment in
accordance with clause 14.5.

 

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		15.0	Registration and Adverse Experience Reporting

 

		15.1	In this clause Quality Agreement means a manual compiled and agreed upon by Parnell and Elanco
that contains certain specifications, audit procedures, methods and personnel contacts relating to the ordering, manufacture, packaging,
storing and shipping of the Products including details of the Registration holder, the manufacturer, the batch releaser and the
batch recall of the Products in each Zone of the Territory.

 

		15.2	A Quality Agreement shall be signed by the Parties prior to issuance of the first Registration.

 

		15.3	A pharmacovigilance agreement shall be developed and signed between the Parties prior to the issuance
of the first Registration. This pharmacovigilaince agreement will describe precisely the responsibilities of each Party in managing
and reporting Adverse Events for all geographies within the Territory.

 

		16.0	Product Recall

 

		16.1	If either Party (acting reasonably) determines that any quantity of the Products supplied by it
needs to be recalled, it must immediately give written notice to the other Party (Recall Determination Notice).

 

		16.2	Upon a Recall Determination Notice being given, representatives of each party must meet (either
in person or by teleconference) to determine whether a Product recall should be implemented and, if so, by which party the Product
recall should be implemented.

 

		16.3	In the absence of agreement between the parties concerning the implementation of the Product recall,
Parnell will be responsible for determining the Product recall strategy and Elanco will be responsible for implementing the Product
recall in the Territory and Parnell will be responsible for any necessary negotiations and communications with relevant regulatory
authorities.

 

		16.4	Each party will cooperate with the other (and any wholesalers of Elanco) in relation to the Product
recall.

 

		16.5	Subject to clause 16.5, all direct costs incurred by Elanco in implementing the Product recall
in the Territory are to be borne by Parnell and if the recall is found to be the result of a negligent act or omission by Parnell
personnel Parnell must pay to Elanco subject to the limitation in clause 28.2 an account of profit for lost sales by it giving
Elanco a credit for that amount in relation to future supplies of the Products made by Parnell to Elanco.

 

		16.6	If a Product recall is caused by any act or omission of Elanco or its personnel, Elanco must:

 

		(a)	pay all costs associated with the implementation of the Product recall;

 

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		(b)	must reimburse Parnell for all reasonable direct costs incurred by it in managing such Product
recall (and implementing it if Elanco refuses or neglects to do so); and

 

		(c)	pay to Parnell subject to the limitation in clause 28.2 an account of profit for lost sales
attributed to the act or omission of Elanco or its personnel which caused the Product recall.

 

		17.0	Packaging and Markings

 

		17.1	In this clause reference to packaging includes the livery or trade dress of the primary and secondary
packaging together with the labelling on the primary and secondary packaging.

 

		17.2	Parnell acknowledges that Elanco trade dress includes:

 

		(a)	materials in which Elanco owns copyright; and

 

		(b)	trademarks owned by Elanco (Elanco Content).

 

Elanco grants a licence to Parnell
to reproduce the Elanco Content for the purpose of enabling Parnell to comply with its obligations under this clause.

 

		17.3	Parnell will supply the Products:

 

		(a)	in packaging with:

 

		(i)	Elanco’s trade dress as agreed in writing from time to time between the parties such agreement
not to be unreasonably withheld or delayed; and

 

		(ii)	Parnell’s trade mark and/or logo as agreed in writing from time to time between the parties
such agreement not to be unreasonably withheld or delayed; and

 

		(b)	with labelling (on primary and secondary packaging) in accordance with the legislative requirements
of the Territory as specified by Elanco.

 

		17.4	Elanco may request a modification to the packaging of the Products not more than once in each Year,
or more frequently if required by law.

 

		17.5	If Elanco wishes to request changes to the packaging of the Products in accordance with clause 17.3(b),
it must give notice to Parnell in writing and submit details of the proposed modification for Parnell’s approval. Subject
to clause 17.8, Parnell reserves the right not to implement requested changes to the packaging in the interest of consistent
branding for the Products in other countries.

 

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		17.6	Once a modification to the packaging has been approved by Parnell in writing, the modification
will be implemented once all existing packaging materials have been used up, or within a timeframe that does not cause non-compliance
with any regulatory authority within the Territory.

 

		17.7	Elanco must not alter, obscure, remove, conceal or otherwise interfere with any markings or indications
of the source or origin of the Products placed by Parnell on the original packaging and external makeup of the Products except
as may be required by a Government Agency and with Parnell’s written approval.

 

		17.8	Parnell is responsible for ensuring that the specifications for packaging, labelling and package
inserts comply with the requirements of the Laws of the Territory and the requirements of any Government Agency in the Territory.

 

		17.9	Where packaging has to be modified to meet the requirements of a change in Law in the Territory
or a change in the requirements of a Government Agency in the Territory and Elanco becomes aware of this requirement Elanco must
immediately notify Parnell of the change in requirements in writing.

 

		17.10	Parnell has no obligation to incorporate such modifications until all existing packaging has been
utilised unless there is a requirement that the modification to the packaging be implemented sooner. In this case, Parnell will
modify the packaging immediately but at Elanco’s cost,

 

		18.0	Trade Mark

 

		18.1	For the purpose of enabling Elanco to exercise its rights under this Agreement, Parnell grants
an exclusive licence to Elanco to use the Trade Marks in each Zone in the Territory in conjunction with the marketing, distribution
and sale of the Products but only in the manner directed in writing by Parnell.

 

		18.2	Parnell shall register the Trade Marks under which Elanco is being granted a license in each Zone
in the Territory. Parnell shall bear all the costs for the filing and the maintenance of the Trade Marks. If Parnell is unable
to procure registration of any Trade Mark it shall in consultation with Elanco select a substitute which is acceptable for registration.

 

		18.3	Without limiting the generality of clause 18.1, Elanco must submit marketing materials, on
which a Trade Mark appears, for Parnell’s information.

 

		18.4	A Trade Mark may only be used in the manner approved.

 

		18.5	Elanco must only use a Trade Mark in accordance with the written instructions given to it by Parnell.

 

		18.6	Elanco must use, in its distribution and sale of the Products, the Trade Mark which relates to
the Product.

 

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		18.7	The Trade Mark may be used by Elanco in conjunction with its mark provided that:

 

		(a)	Parnell’s Trade Mark is clearly distinguished from Elanco’s mark;

 

		(b)	the Trade Mark is only used as part of Elanco’s overall marketing strategy for the sale of
Products.

 

		19.0	Product Warranties

 

		19.1	Parnell warrants to Elanco that each batch of Products will:

 

		(a)	be free from defects at the time of delivery;

 

		(b)	conform to the Specification for the Products; and

 

		(c)	be manufactured in accordance with GMP and all Laws applicable.

 

		19.2	In the event that Products contain a defect, Elanco shall notify the existence of such defect within
ten (10) days of discovery. If Parnell disagrees or disputes the written notification from Elanco, the Parties shall submit
samples of the rejected Products to a mutually acceptable independent laboratory for inspection or analysis, whose analysis results
on the matter shall be final and binding. The Party found to be in error shall bear the cost of such analysis. In the event such
laboratory shows that the relevant batch does not meet the agreed quality specification, Elanco may reject such batch which Parnell
shall replace with Products to be delivered free of charge.

 

		20.0	General Warranties

 

		20.1	Parnell warrants to Elanco that:

 

		(a)	Parnell has the requisite power and authority to enter into this Agreement to carry out the obligations
imposed on it by this Agreement;

 

		(b)	the execution and delivery of this Agreement has been properly authorised;

 

		(c)	this Agreement constitutes a legal, valid and binding obligation on its part;

 

		(d)	this Agreement does not conflict with any provision of its constitution or other constituent document
or any Law; and

 

		(e)	Parnell has all licences, registrations, consents, approvals and permits relevant to the obligations
imposed on it by this Agreement;

 

		(f)	it shall sell the Products to Elanco free and clear of any liens, claims or encumbrances.

 

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		20.2	Elanco warrants to Parnell that:

 

		(a)	Elanco has the requisite power and authority to enter into this Agreement to carry out the obligations
imposed on it by this Agreement;

 

		(b)	the execution and delivery of this Agreement has been properly authorised;

 

		(c)	this Agreement constitutes a legal, valid and binding obligation on its part;

 

		(d)	this Agreement does not conflict with any provision of its constitution or other constituent document
or any Law; and

 

		(e)	Elanco has all licences, Registrations, consents, approvals and permits relevant to the obligations
imposed on it by this Agreement.

 

		21.0	Contract Management

 

		21.1	Parnell will nominate a person to act as its contract manager to manage the operation of this Agreement
for Parnell and to represent Parnell (either in person or through his or her delegate) in all day-to-day dealings with Elanco (Parnell
Contract Manager).

 

		21.2	Elanco will nominate a person to act as its contract manager to manage the operation of this Agreement
for Elanco and to represent Elanco in all day-to-day dealings with Parnell (Elanco Contract Manager). In addition Elanco may appoint
a sub-contract manager for each Zone in the Territory (Elanco Sub-Contract Managers).

 

		21.3	The Elanco Contract Manager will:

 

		(a)	be the single point of contact for Parnell for the purposes of this Agreement;

 

		(b)	have the authority and be given the responsibility to perform for Elanco each of the tasks referred
to in this clause 0;

 

		(c)	be a full time employee of Elanco;

 

		(d)	have a strong working knowledge of Elanco’s business operations and the Products; and

 

		(e)	unless Parnell’s request requires a more prompt response (in the case of an emergency), both
the Elanco Contract Manager and the Elanco Sub-Contract Managers must acknowledge receipt of any communication from Parnell within
48 hours of receipt and provide a substantive response to any communication from Parnell within 5 (five) Business Days of receipt.

 

    	21

    	 

    

 

		21.4	The Contract Managers and where applicable Sub-Contract Managers will (unless otherwise agreed):

 

		(a)	meet by teleconference at the times agreed by the parties, but at least every three (3) months
during the Term, or on ten (10) Business Days’ notice at the request of either party if an issue arises in relation
to this Agreement;

 

		(b)	review and discuss (at a minimum):

 

		(i)	Reports submitted by Elanco;

 

		(ii)	performance of Elanco as measured against the Marketing Plan; or

 

		(c)	at any time raise any issues of concern or interest relating to this Agreement; and

 

		(d)	work in good faith to resolve any issues of concern, and if they are unable to resolve them refer
the matter for resolution in accordance with clause 24.

 

		22.0	Records and Audits

 

		22.1	Elanco agrees to establish and maintain line systems recording matters relating to:

 

		(a)	Product performance in the target species ; and

 

		(b)	customer feedback on the Products

 

		(c)	Financial records required for calculation of Target Margin and Target Margin Rate

 

(Records).

 

		22.2	Parnell or its professional advisors, auditor or contractor may, on 10 Business Days’ notice
and at a mutually agreed time, inspect the Records in 22.1 (a) and 22.2 (b) above. Parnell must gain 10 days advance
written approval of Elanco, such approval not to be unreasonably withheld, of the individuals designated by Parnell to inspect
such Records.

 

		22.3	Audits of financial records required for calculation of Target Margin and Target Margin Rate

 

Within the term of this agreement,
Parnell shall *** have the right to have an independent certified public accountants inspect Elanco’s financial records for
*** for the purpose of determining the accuracy of Sales Price and Purchase Price used in calculating Target Margin and Target
Margin Rate. Parnell shall submit an ***. The independent certified public accountants shall keep confidential any information
obtained during such inspection ***.

 

    	22

    	 

    

 

		22.4	Parnell will use reasonable commercial endeavours to minimise the impact of any such inspection
on Elanco’s business. Elanco will not unreasonably withhold its agreement to the time for an audit.

 

		22.5	Parnell will retain all Records for completed transactions:

 

		(a)	for a period of seven years after the completion of the transactions to which the Records relate
unless otherwise agreed between the parties; or

 

		(b)	until the termination of this Agreement, whichever is the sooner.

 

		22.6	Parnell must comply with all statutory obligations imposed upon it or Elanco in relation to the
retention of the Records and, to the extent that those obligations are inconsistent with the provisions of this Agreement, it will
comply with the statutory obligations.

 

		23.0	Confidentiality

 

		23.1	Each party (Recipient) must keep confidential the other party’s (Disclosing Party’s)
Confidential Information.

 

		23.2	A Recipient may only disclose the Disclosing Party’s Confidential Information, for the purpose
of performing its obligations under this Agreement, to:

 

		(a)	officers, employees, accountants, auditors, legal advisers and other professional advisers (approved
by the Disclosing Party to receive Confidential Information) of the Recipient, or officers and employees any person with whom the
Recipient has a confidentiality agreement that imposes on that person confidentiality obligations no less stringent than those
imposed on Recipients under this Agreement, who:

 

		(i)	have a need to know (and only to the extent that each has a need to know); and

 

		(ii)	have been directed and have agreed to keep confidential the Confidential Information on terms consistent
with this Agreement; or

 

		(b)	the extent, and to the persons, required by Law or an applicable regulatory body including the
Paris Stock Exchange.

 

		23.3	A Recipient must, at its own expense:

 

		(a)	ensure, at all times, that each officer, employee and subcontractor to whom the Disclosing Party’s
Confidential Information has been disclosed under this clause 0 keeps that information confidential and uses that information
solely for the purpose of this Agreement;

 

    	23

    	 

    

 

		(b)	establish and maintain effective security measures to safeguard the Disclosing Party’s Confidential
Information from unauthorised access or use;

 

		(c)	keep the Disclosing Party’s Confidential Information under its control (whether it has physical
possession of the Confidential Information or not);

 

		(d)	immediately take all steps to prevent or stop, and comply with any direction issued by the Disclosing
Party from time to time regarding, a suspected or actual breach; and

 

		(e)	immediately notify the Disclosing Party of any suspected or actual unauthorised use, copying or
disclosure of the Disclosing Party’s Confidential Information.

 

		23.4	Parnell will provide assistance reasonably requested by Elanco in relation to any proceedings that
Elanco may take against any person (other than Parnell) for unauthorised use, copying or disclosure of Elanco’s Confidential
Information.

 

		23.5	Elanco will provide assistance reasonably requested by Parnell in relation to any proceedings that
Parnell may take against any person (other than Elanco) for unauthorised use, copying or disclosure of Parnell’s Confidential
Information.

 

		23.6	Each party acknowledges that it is aware that any breach of this clause 23 may result in damage
to the other party and that each party is entitled to enforce its rights by specific performance or injunction proceedings as monetary
damages may not be sufficient relief.

 

		23.7	On termination of this Agreement, each Recipient agrees that:

 

		(a)	it must continue to keep confidential in accordance with this clause 23 the Disclosing Party’s
Confidential Information without limitation of time; and

 

		(b)	its rights to use and disclose the Disclosing Party’s Confidential Information cease other
than in relation to information which the Recipient is required to disclose in order to comply with any reporting obligations to
relevant regulatory bodies.

 

		23.8	Neither party will make any public statements about this Agreement, the Products or its relationship
with the other party without the other party’s prior written approval.

 

		23.9	All references in this clause to the “Disclosing Party” or the “Disclosing Party’s
Confidential Information” apply to a third party whose Confidential Information is used in the performance of, or is necessary
to the supply of the Products as if the third party was a party to this Agreement.

 

    	24

    	 

    

 

		24.0	Dispute Resolution

 

		24.1	If a Party considers that a dispute has arisen (Dispute), it may issue a notice to the other party,
setting out reasonable particulars of the matter in dispute (a Dispute Notice).

 

		24.2	The parties through their respective Contract Managers must promptly hold good faith discussions
to attempt to resolve the dispute and must (subject to privilege) furnish to the other party all information with respect to the
dispute which is appropriate in connection with its resolution.

 

		24.3	If the Dispute has not been resolved by the Contract Managers within 15 Business Days, or such
longer period as the parties may agree, the Dispute is to be referred to the Chief Executive Officer or a Senior Director of each
party who must promptly hold good faith discussions to attempt to resolve the Dispute.

 

		24.4	If the Dispute has not been resolved by the Chief Executive Officer or Senior Director of each
party within 15 Business Days, or such longer period as the parties may agree, this dispute resolution procedure will be taken
to be exhausted by the parties and either party may commence court proceedings in relation to a Dispute.

 

		24.5	Except where the Dispute renders it impossible to do so, the parties will continue performing their
respective obligations under this Agreement while the Dispute is being resolved, unless and until such obligations are terminated
or expire in accordance with this Agreement.

 

		24.6	Each party must use its best endeavours to ensure that where a Dispute is reasonably foreseeable,
it is dealt with at a sufficiently early stage to ensure that there is a minimum effect on the ability of either party to perform
its obligations under this Agreement.

 

		24.7	Despite anything in this clause 24, a party may at any time commence court proceedings in
relation to any dispute or claim arising under or in connection with this Agreement where that party seeks urgent or interlocutory
relief.

 

		25.0	Force Majeure

 

		25.1	If Parnell is prevented from, or impeded in, performing any of its obligations under this Agreement
due to a Force Majeure Event, it must promptly give notice to Elanco specifying:

 

		(a)	the circumstances constituting the Force Majeure Event; and

 

		(b)	the extent and likely duration of those circumstances.

 

    	25

    	 

    

 

		25.2	If Parnell gives a notice under clause 25.1, Parnell’s obligations under this Agreement,
will be suspended for as long as the Force Majeure Event may continue to prevent it from, or impede it in, performing any of its
obligations under this Agreement. This clause 25.2 does not reduce Parnell’s obligations under clause 13.2 unless
otherwise agreed to in writing by Elanco.

 

		25.3	If there is a Force Majeure Event, Parnell must:

 

		(a)	make every reasonable effort to minimise the effects of the Force Majeure Event;

 

		(b)	use its best efforts to overcome the Force Majeure Event; and

 

		(c)	promptly resume performance of its obligations under this Agreement as soon as reasonably possible
after cessation of the Force Majeure Event.

 

		26.0	IPR Infringement Indemnity

 

		26.1	Parnell indemnifies Elanco and its respective Personnel (those indemnified) against all Damages
that any of those indemnified may suffer or incur in connection with any Claim that the marketing, sale and distribution of the
Products infringes the Intellectual Property Rights or moral rights of any person (IPR Infringement Claim), and must satisfy any
settlement of or judgment given in any 1PR Infringement Claim.

 

		26.2	If a third party makes an IPR Infringement Claim against Elanco or Elanco otherwise becomes aware
that an IPR Infringement Claim is to be asserted against Elanco:

 

		(a)	Elanco must promptly notify Parnell; and

 

		(b)	Parnell must ensure that the IPR Infringement Claim is promptly and appropriately defended.

 

		26.3	Parnell (as between itself and Elanco) will have sole control and conduct of IPR Infringement Claims
and any resulting settlement negotiations, unless Elanco requests by giving written notice to Parnell and Parnell accepts in writing
(such permission not to be unreasonably withheld) for Elanco to defend or settle itself any IPR Infringement Claim, which (in Elanco’s
reasonable opinion) is not being conducted in accordance with clause 26.1.

 

		26.4	On receiving a request from Elanco under clause 26.2, Parnell must accept Elanco’s request
and provide all assistance reasonably required by Elanco to defend or settle that IPR Infringement Claim, in which case Elanco
will consult with Parnell during the proceedings and before settling the IPR Infringement Claim.

 

		26.5	If Parnell is defending the IPR Infringement Claim in accordance with clause 26.2(b):

 

    	26

    	 

    

 

		(a)	Elanco will provide Parnell promptly with all reasonable assistance Parnell requires in relation
to, and in its defence of, the IPR Infringement Claim; and

 

		(b)	in defending the 1PR Infringement Claim, Parnell must not unnecessarily or unreasonably take, or
fail to take, any action if to do so would damage the name and reputation of Elanco.

 

		26.6	If a Product becomes, or in Parnell’s reasonable opinion is likely to become, the subject
of an IPR Infringement Claim Parnell is entitled to cease to offer that Product for sale in the applicable Zone of the Territory
and, by notice in writing to Elanco, terminate Elanco’s right to distribute that Product whereupon that Product will cease
to be included in Schedule 1 and Schedule 2.

 

		27.0	Indemnities

 

		27.1	Each party (Indemnifier) indemnifies the other party, its Personnel, their successors and assigns
(Indemnified) but against any and all Damages that the Indemnified may sustain or incur in connection with any claim made or asserted
against them in respect of the personal injury or death or tangible property damage arising out of or in connection with the use,
distribution, manufacture, storage or administration of the Products.

 

		27.2	The amounts referred to in clause 27.1 are not payable to the extent they are due to the negligence,
breach of contract, fraud or wilful misconduct of the Indemnified.

 

		28.0	Limitation of Liability

 

		28.1	Other than as specified in this Agreement and to the fullest extent permitted by law all implied
conditions and warranties are, by the operation of this clause, excluded.

 

		28.2	The *** of this Agreement *** or *** of the ***Agreement ***, will be *** in the ***, or in ***.

 

		28.3	For the avoidance of doubt, but subject to clause 28.1, the limitations and exclusions in
clause 28.2 do not apply to loss incurred by either party in respect of:

 

		(a)	breach of confidence;

 

		(b)	liability for personal injury or property damage;

 

		(c)	liability under the IP indemnity;

 

		(d)	fraud by either party or either party’s Personnel; or

 

    	27

    	 

    

 

		(e)	unlawful or wilful acts and omissions.

 

		28.4	Without limiting any of their respective obligations under this Agreement each party must mitigate
losses suffered under this Agreement.

 

		29.0	Insurances

 

		29.1	Each party (an Insuring Party) must take out and maintain during the Term a comprehensive product
liability insurance policy to cover all sums which may become legally liable to pay consequent upon:

 

		(a)	the death of or bodily injury (including disease or illness) to any natural person or animal; and

 

		(b)	loss of, or damage to, real or personal property (including the loss of use thereof),

 

		(c)	in connection with supply of the Products.

 

		29.2	Each Insuring Party must ensure that:

 

		(a)	the insurance policy taken out in accordance with clause 29.1 will be effected with a reputable
insurance company, or for Elanco via adequate self-insurance;

 

		(b)	the products liability cover referred to in clause 29.1 is for a minimum cover of *** for
each claim and in the aggregate;

 

		(c)	the insurance policy taken out in accordance with clause 29.1 cannot be amended or cancelled
without written notice being given to the other party;

 

		(d)	the insurance policy taken out in accordance with clause 29.1 will comply with the laws of
all the jurisdictions in which Parnell will be performing its obligations under this Agreement;

 

		29.3	Each Insuring Party must comply with all of the terms and conditions of any insurance policy taken
out under this clause.

 

		29.4	Each Insuring Party must, within 20 business days of the Commencement Date and on request being
made by the other party, promptly provide to the other party copies of certificates or other evidence of currency for insurance
policies effected in accordance with this clause 29.1.

 

    	28

    	 

    

 

		30.0	Notices

 

		30.1	A party giving notice or notifying under this Agreement must do so in writing:

 

		(a)	directed to the recipient’s address specified in this clause, as varied by any notice; and

 

		(b)	hand delivered or sent by prepaid post or sent by facsimile or sent by email to that address.

 

		30.2	The parties’ addresses, facsimile numbers and email addresses are: Parnell:

 

PARNELL EUROPE PTY LTD

 

Elanco:
 

 

		30.3	A notice given in accordance with clause 30.1 is taken to be received:

 

		(a)	if hand delivered, on delivery;

 

		(b)	if sent by prepaid post, five Business Days after the date of posting; or

 

		(c)	if sent by facsimile, when the sender’s facsimile system generates a message confirming successful
transmission of the total number of pages of the notice unless, within one Business Day after that transmission, the recipient
informs the sender that it has not received the entire notice; or

 

		(d)	if sent by email, one Business Day after the time of despatch if receipt is confirmed by the recipient
within one Business Day after the time of despatch.

 

		30.4	Where a party’s postal address, email address or facsimile number changes from that noted
above, that party will provide a written notice to the other party notifying it of such change.

 

		31.0	Termination

 

		31.1	In addition to any other entitlement it has to terminate this Agreement in accordance with its
terms, Parnell may, by written notice to Elanco, terminate this Agreement if:

 

		(a)	Elanco materially breaches this Agreement and the breach cannot be rectified, or is not rectified
within ***after a notice from Parnell specifying the breach;

 

		(b)	an Insolvency Event occurs in relation to Elanco; or

 

    	29

    	 

    

 

		(c)	any other event specified in this Agreement as giving rise to a right for Parnell to terminate
occurs,

 

which notice will take effect on
the day on which it is given and such termination will not give rise to the payment by Parnell of any damages whatsoever.

 

		31.2	In addition to any other entitlement it has to terminate this Agreement in accordance with its
terms, Elanco may, by notice to Parnell, terminate this Agreement:

 

		(a)	if Parnell materially breaches this Agreement and the breach cannot be rectified, or is not rectified
within ***after a notice from Elanco specifying the breach; or

 

		(b)	if an Insolvency Event occurs in relation to Parnell such notice will take effect on the day on
which it is given.

 

		31.3	The Parties are entitled to terminate this Agreement by mutual written agreement but agree that,
if this event occurs before the date on which this Agreement ends, termination must take effect no less than *** from the date
of the mutual agreement.

 

		31.4	If as a result of any merger or acquisition or business reconstruction undertaken by Parnell (whether
as a buyer or a seller) Parnell (or its successor or assign) determines that it wishes to have the right to market, sell and distribute
the Products in the Territory then Parnell (or its successor or assign) is entitled to terminate this Agreement by giving 12 (twelve)
months’ notice in writing to Elanco which notice may be given at any time after the Commencement Date

 

If such notice is given before
31 December, 2016 then upon termination Elanco shall be fully reimbursed for all the Product Approval Fees already paid.

 

		31.5	Parnell is entitled to terminate this Agreement by giving ninety (90) days’ notice in writing
to Elanco if there is no transfer of the present agreement in case of a change in Control of Elanco. Elanco must notify Parnell
in writing if a change in Control occurs in respect of it.

 

		32.0	After Termination

 

		32.1	After notice of termination is given:

 

		(a)	*** any *** and *** for the ***; and

 

		(b)	*** to *** of the Products which it *** for a *** provided that *** of the Products ***. If ***
this *** then the *** for the *** will be the ***. In the event ***not ***.

 

    	30

    	 

    

 

		32.2	After notice of termination is given *** whether or not *** of Products which are the *** to the
***. *** will ***of *** of the ***. If ***that it will *** then *** and *** in respect of ***.

 

		32.3	Termination of this Agreement in its entirety (or as it relates to the Products) will not affect
any accrued rights of either party.

 

		33.0	Miscellaneous

 

		33.1	Neither party must not do, and must not allow to occur, any act, matter or thing which adversely
affects or jeopardises the reputation of the other in the Territory.

 

		33.2	This Agreement (including its Schedules):

 

		(a)	constitutes the entire agreement between the parties as to its subject matter; and

 

		(b)	in relation to that subject matter, supersedes any prior understanding or agreement between the
parties and any prior condition, warranty, indemnity or representation imposed, given or made by a party.

 

		33.3	Each party must use reasonable efforts to do all things necessary or desirable to give full effect
to this Agreement.

 

		33.4	The failure of a party at any time to require performance of any obligation under this Agreement
is not a waiver of and is without prejudice to that party’s right:

 

		(a)	to exercise any right that party may have under this Agreement or otherwise in relation to the
other party’s acts or omissions;

 

		(b)	to claim Damages for breach of that obligation; and

 

		(c)	at any other time to require performance of that or any other obligation under this Agreement,

 

unless written notice to that effect
is given in accordance with clause 30.

 

		33.5	Waiver of any provision of or right under this Agreement:

 

		(a)	must be in writing signed by the party entitled to the benefit of that provision or right; and

 

		(b)	is effective only to the extent set out in any written waiver.

 

		33.6	Except as expressly provided otherwise in this Agreement, a right, power, remedy, entitlement or
privilege given or granted to a party under this Agreement is cumulative with, without prejudice to and not exclusive of any other
right, power, remedy, entitlement or privilege granted or given under this Agreement or by Law.

 

    	31

    	 

    

 

		33.7	A party will not be liable to the other party for any damages to the extent that the breach giving
rise to the damages was caused by the other party’s failure to perform its obligations under this Agreement, including a
failure resulting from the other party’s negligence or breach of this Agreement.

 

		33.8	Nothing in this Agreement, or any circumstances associated with it or its performance, give rise
to any partnership or employer and employee relationship, joint venture or fiduciary duty between Elanco and Parnell.

 

		33.9	Part or all of any provision of this Agreement that is illegal or unenforceable may be severed
from this Agreement and the remaining provisions of this Agreement continue in force.

 

		33.10	Clauses 16, 18, 19, 22 to 30, 32 and 33 will survive the expiration or earlier termination of this
Agreement.

 

		33.11	This Agreement is governed by the law applicable in ***.

 

		33.12	The parties agree that good faith and fair dealing in its dealings with the other party under this
Agreement.

 

		33.13	Execution of Agreement. This Agreement may be executed by original or facsimile signature in several
counterparts, all of which shall be deemed to be originals, and all of which shall constitute one and the same Agreement, Notwithstanding
the foregoing, the Parties shall deliver original execution copies of this Agreement to one another as soon as practicable following
execution thereof.

 

		33.14	Parnell will comply with the FCPA Contract Language as revised by Lilly from time to time and published
at http://supplierportal.lilly.com or otherwise made available to Parnell. All the requirements of the FCPA Contract Language are
in addition to all of Parnell’s other obligations under this Agreement, including those that are similar in nature. Notwithstanding
anything in this Agreement to the contrary, an action by Lilly expressly permitted by the FCPA Contract Language neither constitutes
a breach of this Agreement by Lilly nor excuses Parnell from performing its obligations under this Agreement.

 

[Schedules commence next page]

 

    	32

    	 

    

 

SCHEDULE 1

 

Products

 

	Product	 	Trade Name	 	Presentation	 	Active ingredient
	Zydax 100 Injection	 	Zydax	 	20mL preserved multiple dose vial	 	Glucuronoxylan Sulfate sodium ***

 

***

 

Currently the targeted Label of Zydax will
include, but not be limited to the following:

 

***

 

    	Schedule 1-1

    	 

    

 

SCHEDULE
2

  

Yearly Minimum Sales Quantity for Products

 

***

	***	***	***	***
	***	***	***	***
	 	 	 	 

 

***

	***	***	***	***
	***	***	***	***
	 	 	 	 

 

***

	***	***	***	***
	***	***	***	***
	 	 	 	 

  

    	Schedule 2-1

    	 

    

 

SCHEDULE
3

  

Product Trade Marks and Patents

  

	Zydax (Trademark)	Country	Comment
	 	***	***
	 	***	***
	 	***	***
	 	***	***
	 	***	***
	 	***	***
	 	***	***
	 	***	***

 

Glucurono
Xylan Sulfate Patents

  

	Country	Patent /

Application

Number	Title of Invention	Assignee	Filing

Date	Status
	***	***	***	***	***	***
	***	***	***	***	***	***
	***	***	***	***	***	***
	***	***	***	***	***	***
	***	***	***	***	***	***
	***	***	***	***	***	***
	***	***	***	***	***	***

 

    	Schedule 3-1

    	 

    

  

SCHEDULE
4

 

Products Specifications

 

Zydax
100

  

	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***
	***	***	***

 

    	Schedule 4-1

    	 

    

 

SCHEDULE
5

 

Elanco Purchase Price from Parnell:

  

	Product	 	Price ($)
	
        Zydax 100 Injection

         

        20mL preserved multiple dose vial
	 	 

  

    	Schedule 5-1

    	 

    

 

SCHEDULE
6

 

Territory

 

Territory defined as Global with the exclusion
of Australia.

 

    	Schedule 6-1

    	 

    

 

SCHEDULE
7

 

Quality and Pharmacovigilance Agreements

 

In this clause Quality Agreement means
a manual compiled and agreed upon by Parnell and Elanco that contains certain specifications, audit procedures, methods and personnel
contacts relating to the ordering, manufacture, packaging, storing and shipping of the Products including details of the Registration
holder, the manufacturer, the batch releaser and the batch recall of the Products in each Zone of the Territory.

 

A Pharmacovigilance Agreement shall be
developed and signed between the Parties prior to the issuance of the first Registration. This pharmacovigilaince agreement will
describe precisely the responsibilities of each Party in managing and reporting Adverse Events for all geographies within the Territory.

 

Quality and Pharmacovigilance Agreements
shall be signed by the Parties prior to issuance of the first Registration.

 

    	Schedule 7-1

    	 

    

 

Executed as an Agreement:

 

Executed by Parnell Europe Pty Ltd,
as a deed by its authorised officers:

 

	/s/ Erika Kristy Vikor	 	/s/ Robert Joseph
	Signature of Witness	 	Signature of Authorized Officer
	 	 	 
	Erika Kristy Vikor	 	Robert Joseph
	Name of Witness (please print)	 	Name of Authorized Officer (please print)
	 	 	 
	9 February 2011	 	 
	Date Signed	 	 

 

Executed by ELI LILLY AND COMPANY, as
a deed by its authorised officers:

 

	/s/ Stuart F. Easley	 	/s/ William C. Weldon
	Signature of Witness	 	Signature of Authorized Officer
	 	 	 
	Stuart F. Easley	 	William C. Weldon
	Name of Witness (please print)	 	Name of Authorized Officer (please print)
	 	 	 
	16 February 2011	 	 
	Date Signed	 	 

 

    	 

    	 

    

  

Guarantee
Agreement

 

Parties

 

Parnell Pharmaceutical Holdings, Pty Ltd
                          a company, organised under the laws of Australia, with registered office at                         Unit 4, 476 Gardeners Road,
Alexandria, New South Wales, Australia Represented by Mr. Robert Joseph, Chief Executive Officer, Hereinafter referred to
as Holdings.

 

And

 

Eli Lilly And Company, a publicly-traded
Indiana corporation, operating through its Elanco division and having a principal place of business at 2500 Innovation Way N.,
Greenfield, Indiana 46140-9163 USA, and its Affiliates, herein after collectively referred to as Elanco. Elanco and Parnell are
individually designated as the Party and collectively as the Parties.

 

Background

 

Holdings is the parent company of Parnell
Europe Pty Ltd. Parnell Europe Pty Ltd and Elanco have entered into a Distribution and Supply Agreement on or about February ___,
2011. Holdings will benefit from the success of its subsidiary, Parnell Europe Pty Ltd, by virtue of the financial benefits from
such Agreement.

 

For this and other valuable consideration,
hereby acknowledged by Holdings, Holdings undertakes the following:

 

Operative Provisions

 

Holdings unconditionally and irrevocably
guarantees to Elanco the due and punctual payment of all present and future amounts Parnell Europe Ply Ltd may be required to pay
for Approval Delay Damages under the terms of the Distribution and Supply Agreement between Elanco and Parnell Europe Pty Ltd.
If Parnell Europe Ply Ltd fails to make any such payment in the manner and at the time specified in this Agreement, Holdings shall
make such payment upon demand by Elanco. Holdings ‘s guarantee obligation shall remain in full force and effect until all
such payment obligations of the Parnell Europe Ply Ltd have been discharged, notwithstanding (a) any amendment or termination
of this Agreement, (b) any extension of time or other indulgence or concession granted by Elanco, (e) any delay or failure
by Elanco to pursue any remedy available against Parnell Europe Pty Ltd, or (d) any dissolution, liquidation, insolvency,
bankruptcy or reorganization of Parnell Europe Pty Ltd. Elanco shall have no obligation to pursue any remedy or take any action
against or in respect of any Parnell Europe Pty Ltd prior to enforcing its rights under this guarantee. Holdings reserves the right
to assert defenses which any Parnell Europe Pty Ltd may have to payment other than any defenses expressly waived hereby.

 

    	 

    	 

    

 

Executed as an Agreement:

 

Executed by Parnell Pharmaceutical Holdings
Pty Ltd, as a deed by its authorised officers:

	 	 	 
	/s/ Erika Kristy Vikor	 	/s/ Robert Joseph
	Signature of Witness	 	Signature of Authorized Officer
	 	 	 
	Erika Kristy Vikor	 	Robert Joseph
	Name of Witness (please print)	 	Name of Authorized Officer (please print)
	 	 	 
	9 February 2011	 	 
	Date Signed	 	 

 

Executed by ELI LILLY AND COMPANY, as
a deed by its authorised officers:

 

	/s/ Stuart F. Easley	 	/s/ William C. Weldonv
	Signature of Witness	 	Signature of Authorized Officer
	 	 	 
	Stuart F. Easley	 	William C. Weldon
	Name of Witness (please print)	 	Name of Authorized Officer (please print)
	 	 	 
	16 February 2011	 	 
	Date Signed

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]