Document:

Share
Purchase and Transfer Agreement

 

 

 

between

 

Biofrontera
Newderm LLC,

 

Biofrontera
AG,

 

Maruho
Co., Ltd.,

 

and

 

Cutanea
Life Sciences, Inc.

 

    	 		 

    	 	 	 

    

 

Table
of Contents

 

	1.	Sale,
    purchase and transfer	1
	2.	Purchase
    Price, Start-up Costs, Earnout, Rules for Payment	2
	 	2.1	Purchase
    Price	2
	 	2.2	Start-Up
    Costs	2
	 	2.3	Estimated
    Closing Statement	2
	 	2.4	Closing
    Statement.	2
	 	2.5	Earnout	3
	 	2.6	General
    rules for payments	5
	 	2.7	Withholding	6
	3.	Closing	6
	 	3.1	Closing
    Date	6
	 	3.2	Closing
    Deliveries	6
	4.	Representations
    and warranties of Seller	7
	 	4.1	Authorization
    of Seller	7
	 	4.2	Shares
    of the Company	8
	 	4.3	Assets	8
	 	4.4	Financial
    Statements	9
	 	4.5	Absence
    of Changes	9
	 	4.6	Litigation	9
	 	4.7	Compliance
    with Law and Permits	10
	 	4.8	Taxes	11
	 	4.9	Real
    Property	14
	 	4.10	Intentionally
    Omitted.	14
	 	4.11	Broker’s
    Fees	14
	 	4.12	Full
    Disclosure	14
	 	4.13	No
    Other Representations and Warranties of Seller	15
	5.	Purchaser’s
    Representations	15
	 	5.1	Authorization
    of Purchaser	15
	 	5.2	Litigation	16
	 	5.3	Broker’s
    Fees	16
	 	5.4	Non-Reliance	16
	 	5.5	No
    Other Representations and Warranties of Purchaser	16
	6.	Covenants	16
	 	6.1	Earnout
    Covenants	16

 

    	 	i	 

    	 	 	 

    

 

	 	6.2	Informational
    Rights; Access.	17
	 	6.3	Restructuring
    of the Business, payment of Restructuring Costs	18
	 	6.4	Business
    and Marketing	20
	 	6.5	Confidentiality	21
	 	6.6	Non-Compete;
    Non-Solicit	22
	 	6.7	Acquisition
    of Company’s development program	23
	 	6.8	Further
    Assurances	23
	7.	Indemnification	24
	 	7.1	Remedies	24
	 	7.2	Compensation
    in cash	24
	 	7.3	Definition
    of Losses	25
	 	7.4	Claim
    Procedures	25
	 	7.5	Assistance	26
	8.	General
    Exclusions and Limitations	26
	 	8.1	Limitation
    of Liability	26
	 	8.2	Monetary
    limits	26
	 	8.3	Time
    Limits	26
	9.	Purchaser’s
    Guarantor	27
	10.	Tax
    Matters	27
	 	10.1	Straddle
    Period	27
	 	10.2	Cooperation
    on Tax Matters	28
	 	10.3	Tax
    Returns	28
	 	10.4	Contests	29
	 	10.5	Transfer
    Taxes	30
	 	10.6	Purchase
    Price Adjustment	30
	 	10.7	Tax
    Sharing Contracts	30
	 	10.8	Section
    338(g) Election	30
	11.	Miscellaneous	30
	 	11.1	Interpretation	30
	 	11.2	Third-party
    beneficiary	31
	 	11.3	Public
    announcements, access to information	31
	 	11.4	Notices
    and communication	31
	 	11.5	Language	33
	 	11.6	Costs
    and expenses	33
	 	11.7	Intentionally
    Omitted.	33
	 	11.8	Entire
    Agreement	34
	 	11.9	Amendments	34
	 	11.10	Remedies
    and waivers	34
	 	11.11	Assignment	34
	 	11.12	No
    set-off or retention	34
	 	11.13	Severability	34
	 	11.14	Counterparts	34
	 	11.15	Applicable
    law	34
	 	11.16	Arbitration	35
	 	11.17	Waiver
    of Jury Trial	36
	12.	Definitions	36

 

    	 	ii	 

    	 	 	 

    

 

Share
Purchase and Transfer Agreement

 

between

 

	(1)	Maruho
    Co., Ltd., a company incorporated under the Laws of Japan with its principal business address at 1-5-22 Nakatsu, Kita-ku,
    Osaka, Japan, 531-0071 (the “Seller”);
	 	 
	(2)	Cutanea
    Life Sciences, Inc., a corporation incorporated under the Laws of the State of Delaware with its principal business address
    at 1500 Liberty Ridge Drive Suite 3000 Wayne, PA 19087, United States of America (the “Company”); 
	 	 
	(3)	Biofrontera
    Newderm LLC, a limited liability company formed under the Laws of the State of Delaware with its principal business address
    at 201 Edgewater Drive, Suite 210, Wakefield, MA 01880 (the “Purchaser”); and
	 	 
	(4)	Solely
    for the purposes of Section ‎9 hereof, Biofrontera AG, a German stock corporation having its registered seat in
    Leverkusen, registered in the commercial register of the local court of Köln under HRB 49717, with its registered business
    address at Hemmelrather Weg 201, 51477 Leverkusen, Germany (“Purchaser’s Guarantor”).

 

Seller,
the Company and Purchaser, collectively, are the “Parties” and each is a “Party”.

 

Preamble

 

	(A)	The
    Company and its Subsidiaries are active in the business of selling, manufacturing and distributing pharmaceutical products
    for the treatment of diseases and disorders of skin and subcutaneous tissue, in particular a combination product topical gel
    consisting of 3% erythromycin and 5% benzoyl peroxide (“Aktipak”) and a cream containing 1% ozenoxacin
    (“Xepi”; Aktipak and Xepi together the “Products”; the sale, manufacture and distribution
    of the Products and the other products sold, manufactured and/or distributed by the Company and its Subsidiaries and the research
    and development of other pharmaceutical products or potential pharmaceutical products, the “Business”).
	 	 
	(B)	Seller
    holds 1,000 shares of common stock, par value USD $0.001 per share, in the Company (the “Shares”), which
    represent all of the issued and outstanding shares of capital stock of, and other Equity Interests in, the Company.
	 	 
	(C)	Seller
    is a pharmaceutical company specializing in dermatology and topical drugs holding 100% of the share interest in the Company.
	 	 
	(D)	Purchaser
    is a pharmaceutical company which is 100% owned, directly or indirectly, by Purchaser’s Guarantor.
	 	 
	(E)	Seller
    desires to sell and transfer to Purchaser, and Purchaser desires to purchase, all of Seller’s right, title and interest
    in the Shares, free and clear of any and all Encumbrances, for the consideration set forth in Section ‎2.1, subject to
    the terms and conditions set forth herein.
	 	 
	(F)	For
    this purpose, the Parties intend to enter into this Share Purchase and Transfer Agreement (this “Agreement”).

 

    	 	1	 

    	 	 	 

    

 

Therefore,
Seller, Purchaser and Purchaser’s Guarantor agree as follows:

 

	1.	Sale,
    purchase and transfer

 

Seller
hereby sells, assigns, transfers, conveys and delivers to Purchaser, and Purchaser hereby purchases, acquires, accepts and receives
from Seller, all of Seller’s right, title and interest in and to the Shares, free and clear of any and all Encumbrances.

 

	2.	Purchase
    Price, Start-up Costs, Earnout, Rules for Payment

 

	2.1	Purchase
    Price

 

The
initial purchase price for the Shares to be paid by Purchaser to Seller in connection with the Closing (the “Initial
Purchase Price”) shall be USD $1.00 (in words: one U.S. dollar).

 

	2.2	Start-Up
    Costs

 

From
and after the Closing until 31 December 2022, Seller shall pay the Company or its designee for all marketing, sales and other
costs and expenses incurred by the Company or any of its Affiliates that Purchaser determines is reasonably necessary for the
Company and its Subsidiaries to become profitable in an amount not to exceed USD $7,300,000 (in words: seven million three
hundred thousand U.S. dollars) (the “Start-Up Costs”). Within ten (10) Business Days of receipt of written
notice by Purchaser setting forth any Start-Up Costs incurred or to be incurred, Seller shall pay any such amounts by wire transfer
of immediately available funds to the accounts designated by Purchaser in such written notice.

 

	2.3	Estimated
    Closing Statement

 

Attached
hereto as Exhibit A is a statement certified by the President or Chief Financial Officer of the Company (the “Estimated
Closing Statement”) setting forth the Company’s good faith calculation of the Estimated Pre-Closing Liability
Adjustment Amount.

 

	2.4	Closing
    Statement.

 

	 	a)	Within
    ninety (90) calendar days following the Closing, Purchaser shall prepare and deliver to Seller its good faith calculation
    of the Net Liability Adjustment Amount (the “Closing Statement”). From and after the Closing until the
    Determination Date, Purchaser shall use its commercially reasonable efforts to provide Seller and its representatives reasonable
    access during normal business hours and upon reasonable advanced notice to the records, properties and personnel of the Company
    and its Subsidiaries relating to the preparation of the Closing Statement (all of which information Seller acknowledges is
    Confidential Information subject to Section 6.5).

 

    	 	2	 

    	 	 	 

    

 

	 	b)	If
    Seller disagrees with the calculation of the Closing Statement, it shall notify Purchaser of such disagreement in writing,
    setting forth in reasonable detail the reason for its disagreement and its proposed calculation of the Net Liability Adjustment
    Amount, within thirty (30) days after its receipt of the Closing Statement. In the event that Seller does not provide such
    a notice of disagreement within such thirty (30) day period, Seller shall be deemed to have accepted the Closing Statement
    and the calculation of the Net Liability Adjustment Amount delivered by Purchaser, which shall be final, binding and conclusive
    on the Parties for all purposes hereunder. In the event any such notice of disagreement is timely provided, Purchaser and
    Seller shall use their commercially reasonable efforts for a period of thirty (30) days (or such longer period as they may
    mutually agree) to resolve any disagreements with respect to the calculations of the Net Liability Adjustment Amount. If,
    at the end of such period, they are unable to resolve such disagreements, then BDO USA, LLP (or such other independent accounting
    or financial consulting firm of recognized national standing as may be mutually selected by Purchaser and Seller) (the “Neutral
    Expert”) shall resolve any remaining disagreements. Each of Purchaser, on the one hand, and Seller, on the other,
    shall promptly provide their assertions regarding the Net Liability Adjustment Amount and in writing to the Neutral Expert
    and to each other. The Neutral Expert shall be instructed to render its determination with respect to such disagreements as
    soon as reasonably practicable (which the Parties agree should not be later than thirty (30) days following the day on which
    the disagreement is referred to the Neutral Expert). The Neutral Expert shall not conduct an independent investigation and
    shall base its determination solely on (i) the written submissions of the parties and (ii) the extent (if any) to which the
    Net Liability Adjustment Amount requires adjustment (only with respect to the remaining disagreements submitted to the Neutral
    Expert) in order to be determined in accordance with this Agreement. The Neutral Expert’s determination regarding any
    disputed item shall not be in excess of the higher nor less than the lower of the amounts presented in Purchaser’s Closing
    Statement in accordance with Section ‎2.4‎a) or in the Seller’s written disagreement of such calculation in
    accordance with this Section ‎2.4‎b). The determination of the Neutral Expert shall be final, conclusive and binding
    on the Parties and no Party shall seek further recourse to any Government Entity other than to enforce the determination of
    the Neutral Expert. The Parties acknowledge that the agreements contained in this Section ‎2.4 are an integral part of
    the transactions contemplated by this Agreement, and that, without these agreements, the Parties would not enter into this
    Agreement. The date on which the Net Liability Adjustment Amount is finally determined in accordance with this Section ‎2.4
    is hereinafter referred to as the “Determination Date.” All fees and expenses of the Neutral Expert relating
    to the work, if any, to be performed by the Neutral Expert hereunder shall be borne one-half by Purchaser and one-half by
    Seller.
	 	 	 
	 	c)	If
    the Net Liability Adjustment Amount as finally determined pursuant to Section 2.4(b) is a positive number, then Seller shall
    pay such amount to Purchaser. If the Net Liability Adjustment Amount as finally determined pursuant to Section 2.4(b) is a
    negative number, then the absolute value of such amount (the “Seller Adjustment”) shall be applied by Purchaser
    to offset amounts payable by Seller against the Restructuring Costs otherwise due and payable by Seller pursuant to Section
    6.3. All payments due under this Section ‎2.4‎c) shall be made within five (5) Business Days of the Determination
    Date by wire transfer of immediately available funds to the accounts designated in writing by the Party entitled to such payment.

 

	2.5	Earnout

 

	2.5.1	Definition
    of Product Profit Amount; Earnout Amount; General Rule

 

	 	a)	“Product
    Profit Amount” shall mean with respect to any period, the sum of (a) the sum of (i) the gross amount invoiced for
    the Products sold by the Company and its Subsidiaries in the United States, plus (ii) the gross amount of any license
    fees (net of any expenses pursuant to or relating to the relevant Contract) paid to the Company or any of its Subsidiaries
    in respect of sublicenses of Intellectual Property relating to the Products, minus (b) the sum of (i) sales returns
    and allowances paid, granted or accrued on Products, including trade, quantity, prompt pay and cash discounts and any other
    adjustments, including those granted on account of price adjustments or billing errors, (ii) credits or allowances given or
    made for rejection, recall, return or wastage replacement of, and for uncollectible amounts on, Products or for rebates or
    retroactive price reductions (including Medicare, Medicaid, managed care and similar types of rebates and chargebacks), (iii)
    Taxes, duties or other charges of Government Entities levied on or measured by the billing amount for Products, as adjusted
    for rebates and refunds, including pharmaceutical excise Taxes, (iv) charges for freight, customs and insurance related to
    the distribution of Products and wholesaler and distributor administration fees and expenses, (v) manufacturing, marketing
    and other expenses and deductions, taken in the Ordinary Course of Business of the Company and its Subsidiaries and Affiliates
    and in accordance with applicable accounting standards and their standard practices, including a portion of the SG&A expenses
    of the Company and its Subsidiaries and Affiliates, in each case, attributable to the Products, and (vi) in the event that
    the Company pays any portion of the Guaranteed Payment Amount that exceeds the Earnout Amount actually due pursuant to this
    Section ‎2.5.1, the amount of such excess. For the avoidance of doubt, the Start-Up Costs shall not be considered gross
    amounts invoiced or licensed for purposes of the calculations set forth in (a) above.
	 	 	 
	 	b)	Subject
    to Section ‎2.5.5, between 1 January 2020 and 30 October 2030 the following amount (the “Earnout Amount”)
    shall be paid to Seller as follows:

 

(i)
until the Guaranteed Payment Amount (which shall be treated as deferred purchase price) has been paid in full, the Purchaser shall
pay an amount equal to 75% of the Product Profit Amount; and

 

(ii)
after the Guaranteed Payment Amount has been paid in full, the Company shall pay to Seller an amount equal to 50% of the Product
Profit Amount.

 

	 	c)	With
    respect to the calculation of the Product Profit Amount, no amounts set forth in subsections (i) through (vi) in Section ‎2.5.1‎a)
    or in Section ‎b) shall be applied more than once.

 

	2.5.2	Guaranteed
    Amount

 

Irrespective
of Section ‎2.5.1 but subject to Section 9 and Section ‎11.12, Seller shall be entitled to a minimum payment equal to
the Start-up Costs actually paid by Seller in accordance with Section ‎2.2 (the “Guaranteed Payment Amount”)
as and when payable as follows:

 

	 	a)	If
    the aggregate Earnout Amount paid to Seller hereunder on or prior to the date on which the Earnout Amount is finally determined
    in accordance with Section ‎2.5.4 and, if applicable, paid in accordance with Section ‎2.5.5 for the fiscal year ending
    31 December 2022 (the “2022 Earnout Payment Date”) is less than the lesser of (x) USD $3,600,000 (in words:
    three million six hundred thousand U.S. dollars) or (y) the amount of Start-Up Costs actually paid by Seller in accordance
    with Section ‎2.2 (the “2022 Start-Up Cost Amount”), Purchaser shall pay or cause to be paid to Seller
    within five (5) Business Days of the 2022 Earnout Payment Date an amount equal to the 2022 Start-Up Cost Amount minus
    (ii) the aggregate Earnout Amount paid to Seller hereunder on or prior to the 2022 Earnout Payment Date (the “2022
    Guaranteed Payment Amount”);
	 	 	 
	 	b)	If
    the sum of (x) the aggregate Earnout Amount paid to Seller hereunder on or prior to the date on which the Earnout Amount is
    finally calculated in accordance with Section ‎2.5.4 and, if applicable, paid in accordance with Section ‎2.5.5 for
    the fiscal year ending 31 December 2023 (the “2023 Earnout Payment Date”) and (y) the 2022 Guaranteed Payment
    Amount is less than an amount equal to the Guaranteed Payment Amount, Purchaser shall pay or cause to be paid to Seller within
    five (5) Business Days of the 2023 Earnout Payment Date an amount equal to the sum of (i) the Guaranteed Payment Amount minus
    (ii) the sum of (A) the aggregate Earnout Amount paid to Seller hereunder on or prior to the 2023 Earnout Payment Date
    plus (B) the 2022 Guaranteed Payment Amount.

 

    	 	3	 

    	 	 	 

    

 

	 	c)	In
    no event shall the Guaranteed Payment Amount exceed the amount of the Start-up Costs actually paid by Seller in accordance
    with Section ‎2.2.

 

	2.5.3	Calculation
    of Earnout Amount and Dispute Resolution

 

	 	a)	After
    the end of each fiscal year from January 1, 2020 until 30 September 2029, the Product Profit Amount for such fiscal year (each,
    an “Annual Product Profit Amount”) and the resulting Earnout Amount for such fiscal year (each, an “Annual
    Earnout Amount”) shall be calculated in good faith by the BM Committee. The BM Committee shall deliver to each Party
    a consolidated balance sheet and the related statements of income and cash flow of the Company and a statement setting forth
    in reasonable detail the Annual Product Profit Amount and resulting Annual Earnout Amount for the preceding fiscal year (an
    “Earnout Calculation”) by 1 April following each such year. In the event that either Purchaser or Seller
    disagrees with the Earnout Calculation, such Party shall deliver written notice to the BM Committee within twenty (20) Business
    Days of the date on which the BM Committee delivers its Earnout Calculation (each such period, a “Dispute Period”)
    specifying in reasonable detail its specific objections against items (any item so objected to, a “Disputed Item”)
    of the Earnout Calculation. For a period of ten (10) Business Days after the Dispute Period, the BM Committee and Purchaser
    and/or Seller shall work together in good faith to consider the Disputed Items and any resulting adjustments to the Annual
    Product Profit Amount and Annual Earnout Amount; provided, however, that at the end of such ten (10) Business
    Day period, the final decision of the BM Committee with respect to such Disputed Items, the resulting Annual Product Profit
    Amount for such fiscal year and the resulting Annual Earnout Amount for such fiscal year shall be final.
	 	 	 
	 	b)	After
    the end of the period beginning 1 October 2029 and ending 30 October 2030, the aggregate Product Profit Amount for the period
    beginning on 1 January 2020 and ending on 30 October 2030 (the “Aggregate Product Profit Amount”) and the
    aggregate Earnout Amount for the period beginning on 1 January 2020 and ending on 30 October 2030 (the “Aggregate
    Earnout Amount”) and disputes regarding the calculation thereof shall be settled as follows:

 

(i)
By 1 April 2031, the BM Committee shall deliver to each Party an Earnout Calculation for the period from 1 January 2020 until
30 October 2030. In the event that either Purchaser or Seller disagrees with the Earnout Calculation, such Party shall deliver
written notice to the BM Committee within the Dispute Period specifying in reasonable detail any Disputed Items of the Earnout
Calculation.

 

(ii)
The BM Committee, Seller and Purchaser shall work together in good faith to resolve any Disputed Item within twenty (20) Business
Days following the end of the Dispute Period. Any Disputed Item not resolved within such period may be submitted by Seller or
Purchaser to the Neutral Expert. Each of Purchaser, on the one hand, and Seller, on the other, shall promptly provide their assertions
regarding the Aggregate Product Profit Amount and the Aggregate Earnout Amount in writing to the Neutral Expert and to each other.
The Neutral Expert shall be instructed to render its determination with respect to such Disputed Items as soon as reasonably practicable,
which the Parties agree should not be later than thirty (30) days following the day on which the disagreement is referred to the
Neutral Expert. The Neutral Expert shall not conduct an independent investigation and shall base its determination solely on (i)
the written submissions of the Parties and (ii) the extent (if any) to which the Aggregate Product Profit Amount and Aggregate
Earnout Amount require adjustment (only with respect to the remaining disagreements submitted to the Neutral Expert) in order
to be determined in accordance with this Agreement. The Neutral Expert’s determination regarding any Disputed Item shall
not be in excess of the higher nor less than the lower of the amounts presented in the Purchaser’s or Seller’s assertions
delivered to the Neutral Expert in accordance with this Section ‎2.5.3. The determination of the Neutral Expert shall be final,
conclusive and binding on the Parties and no party shall seek further recourse to any Government Entity other than to enforce
the determination of the Neutral Expert. The Parties acknowledge that the agreements contained in this Section ‎2.5.3 are
an integral part of the transactions contemplated by this Agreement, and that, without these agreements, the Parties would not
enter into this Agreement. All fees and expenses of the Neutral Expert relating to the work, if any, to be performed by the Neutral
Expert hereunder shall be borne one-half by Purchaser and one-half by Seller.

 

    	 	4	 

    	 	 	 

    

 

	2.5.4	Finalization
    of Earnout Calculation

 

For
each determination of the Earnout Amount, the Earnout Calculation shall become final, conclusive and binding between Seller and
Purchaser for the purposes of determining the Earnout Amount:

 

	 	a)	if
    and to the extent there are no Disputed Items, upon the expiration of the Dispute Period or upon earlier confirmation of each
    of Purchaser and Seller regarding its agreement with the Earnout Calculation;
	 	 	 
	 	b)	if
    and to the extent there are Disputed Items but Seller and Purchaser have resolved all such Disputed Items without involving
    a Neutral Expert, upon such mutual agreement in the form as mutually agreed in writing;
	 	 	 
	 	c)	if
    and to the extent that the BM Committee makes the final determination of the Earnout Amount, the date on which the BM Committee
    makes its determination; and 
	 	 	 
	 	d)	if
    and to the extent a Neutral Expert makes the final determination of the Earnout Amount, the date on which the Neutral Expert
    makes its determination and delivers the same to the Parties.

 

	2.5.5	Payment
    of Annual Earnout Amount and Aggregate Earnout Amount

 

	 	a)	Purchaser
    or its designee shall pay to Seller each Annual Earnout Amount calculated in accordance with Section ‎2.5.3a) within fifteen
    (15) Business Days after the Annual Earnout Amount has become final and binding between Seller and Purchaser pursuant to Section
    ‎2.5.4.
	 	 	 
	 	b)	Purchaser
    or its designee shall pay the sum of (i) the Aggregate Earnout Amount minus (ii) each Annual Earnout Amount paid pursuant
    to Section 2.5.5‎a) within fifteen (15) Business Days after the Aggregate Earnout Amount has become final and binding
    between Seller and Purchaser pursuant to Section ‎2.5.4.

 

	2.5.6	Tax
    Treatment of Earnout Amount

 

Any
amounts paid by Purchaser to Seller pursuant to Section 2.5 of this Agreement shall be treated as an adjustment to the Initial
Purchase Price for U.S. federal income tax purposes, and the parties shall file all Tax Returns consistent with this treatment,
unless otherwise required by Law.

 

	2.6	General
    rules for payments

 

Any
payments to be made under or in connection with this Agreement shall be made in U.S. Dollars and by wire transfer in immediately
available funds, valued as of the relevant due date and free of any bank and other charges.

 

    	 	5	 

    	 	 	 

    

 

	2.7	Withholding

 

Notwithstanding
any other provision in the Agreement, Purchaser and its Affiliates shall have the right to deduct and withhold from any payments
to be made under this Agreement such amounts as are required to be deducted and withheld from such payments under applicable Law
and to collect any necessary Tax forms, including Forms W-8 or W-9, as applicable, or any similar information, from Seller and
any other recipients of payments pursuant to the Agreement. In the event Purchaser determines any amounts are to be withheld pursuant
to this Agreement, Purchaser shall provide Seller at least five (5) Business Days’ notice so that Seller has an opportunity
to provide any relevant forms to establish an exemption from the proposed withholding. Any amounts so withheld shall be timely
paid over to the applicable Tax Authorities and such withheld amounts shall be treated for all purposes of the Agreement as having
been delivered and paid to Seller or any such other recipient of payments in respect of which such deduction and withholding was
made.

 

	3.	Closing

 

	3.1	Closing
    Date

 

The
completion of the transactions contemplated by this Agreement (“Closing”) shall (i) be performed at the office
of the Company or (ii) remotely via the exchange of signatures, in each case, on the date hereof (“Closing Date”).

 

	3.2	Closing
    Deliveries

 

	3.2.1	Closing
    Deliveries of Purchaser. On the Closing Date, Purchaser shall deliver, or cause to be delivered, the following:

 

	 	a)	to
    Seller, the Initial Purchase Price; 
	 	 	 
	 	b)	to
    Seller, a duly executed counterpart of this Agreement signed by Purchaser; and 
	 	 	 
	 	c)	such
    other customary instruments of transfer, filings or documents, in form and substance reasonably satisfactory to Seller, as
    may be required to give effect to this Agreement.

 

	3.2.2	Closing
    Deliveries of Seller. On the Closing Date, Seller shall deliver, or cause to be delivered, to Purchaser the following:

 

	 	a)	a
    duly executed counterpart of this Agreement signed by Seller; 
	 	 	 
	 	b)	(i)
    certificates evidencing all of the Shares, duly endorsed in blank or accompanied by stock powers duly executed in blank, in
    form and substance reasonably acceptable to Purchaser and with any required stock transfer stamps affixed, or (ii) an affidavit
    of lost stock certificate in respect of the Shares signed by an officer of the Company in form and substance reasonably acceptable
    to Purchaser;
	 	 	 
	 	c)	a
    certificate, duly completed and executed pursuant to Sections 1.897-2(h) and 1.1445-2(c) of the Treasury Regulations, certifying
    that none of the Shares is a United States real property interest within the meaning of Section 897(c) of the Code;
	 	 	 
	 	d)	the
    Books and Records to the extent not at the Company’s or any of its Subsidiaries’ offices;
	 	 	 
	 	e)	evidence
    reasonably satisfactory to Purchaser of the termination of (i) the Secondment Agreement and (ii) the Pefcalcitol Agreement;
    and
	 	 	 
	 	f)	such
    other customary instruments of transfer, filings or documents, in form and substance reasonably satisfactory to Purchaser,
    as may be required to give effect to this Agreement.

 

    	 	6	 

    	 	 	 

    

 

	4.	Representations
    and warranties of Seller

 

Seller
hereby represents and warrants to Purchaser that the statements set forth in this Section ‎4 (together the “Seller’s
Representations”) are correct on the date of this Agreement.

 

	 	a)	if
    and to the extent that any of Seller’s Representations is qualified as being to “Seller’s Knowledge”
    or the “Knowledge of Seller”, such term shall mean the knowledge of Mr. Atsushi Sugita and Mr. Robert Ferrara
    after reasonable inquiry;
	 	 	 
	 	b)	Seller
    does not make any statement, representation or warranty and does not give any guarantee with respect to the Business, the
    Shares or the Company or any of its Subsidiaries or their respective assets and liabilities except as expressly provided for
    in this Agreement; 
	 	 	 
	 	c)	Seller
    makes no warranty as to the accuracy of any forecasts, estimates or projections (including the reasonableness of the assumptions
    underlying the same).

 

	4.1	Authorization
    of Seller

 

	4.1.1	Organization
    and Qualification.

 

Seller
is a corporation duly organized, validly existing and in good standing under the Laws of Japan. The Company is a corporation duly
organized, validly existing and in good standing under the Laws of the State of Delaware. Each of the Subsidiaries is duly formed
or organized, validly existing in good standing under the Laws of its jurisdiction of formation or organization, as applicable.
The Company and each Subsidiary are duly qualified to do business and are in good standing in each jurisdiction where the ownership
or operation of their properties or assets or the conduct of their business requires such qualification. The Company and each
Subsidiary have all requisite power and authority to own, lease and operate their respective properties or assets, and to carry
on their respective business as currently conducted. Each of Seller and the Company has all requisite power and authority to execute
and deliver this Agreement and to perform their obligations hereunder, including the consummation of the transactions contemplated
hereby.

 

	4.1.2	Execution
    and Delivery.

 

The
execution, delivery and performance of this Agreement have been duly authorized by Seller and the Company. This Agreement, when
executed and delivered by Seller and the Company in accordance with the terms hereof (and assuming due authorization, execution
and delivery by each of the other parties hereto) constitutes or will constitute a valid and binding obligation of Seller and
the Company, enforceable against Seller and the Company in accordance with its terms, except as may be limited by applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting
creditors’ rights or by general principles of equity affecting the availability of specific performance and other equitable
remedies.

 

    	 	7	 

    	 	 	 

    

 

	4.1.3	No
    Conflicts.

 

The
execution, delivery and performance by Seller and the Company of this Agreement do not and will not (whether with or without the
passage of time, the giving of notice or both): (a) violate or conflict with any provision of the organizational documents of
Seller, the Company or any Subsidiary, (b) violate, conflict with, or result in the breach of, constitute a default under, or
result in the termination, cancellation, modification or acceleration (whether after the giving of notice or the lapse of time
or both) of any right or obligation of the Seller, the Company or any Subsidiary under, or result in a loss of any benefit to
which the Seller, the Company or any Subsidiary is entitled under, any material Contract or Permit to which Seller is a party
or otherwise bound, (c) result in the creation of any Encumbrance upon the Shares or any of the properties or assets of the Company
or any Subsidiary or (d) violate or result in a material breach of or constitute a material default under any Law to which Seller,
the Company or any Subsidiary or any of its properties or assets is subject.

 

	4.2	Shares
    of the Company

 

	4.2.1	The
    Shares constitute all of the issued and outstanding shares of capital stock of and other Equity Interests in the Company.
    All of the Shares have been duly authorized, validly issued, fully paid and non-assessable and were not issued in violation
    of, and are not subject to, any preemptive rights. Seller is the sole record and beneficial owner and has good and valid title
    to the Shares free and clear of all Encumbrances and, on the Closing Date, Seller will transfer to Purchaser good and valid
    title to the Shares free and clear of all Encumbrances. Other than the Shares, the Company does not have any Equity Interests
    authorized, issued or outstanding, and there are no Contracts or other arrangements existing or outstanding which provide
    for the sale or issuance of any Equity Interests by the Company or that would otherwise cause any Equity Interests of the
    Company to become outstanding.
	 	 
	4.2.2	Dermarc,
    LLC and Dermapex, LLC are the only Subsidiaries or Investments of the Company, and are each a direct, wholly-owned subsidiary
    of the Company. The Company is the sole record and beneficial owner and has good and valid title to the Equity Interests of
    each Subsidiary of the Company free and clear of all Encumbrances. The Equity Interests of the Subsidiaries have been duly
    authorized, validly issued, fully paid and non-assessable and were not issued in violation of, and are not subject to, any
    preemptive rights. Other than as set forth in this Section 4.2.2, none of the Company’s Subsidiaries have any Equity
    Interests authorized, issued or outstanding, and there are no Contracts or other arrangements existing or outstanding which
    provide for the sale or issuance of any Equity Interests by the any such Subsidiary or that would otherwise cause any Equity
    Interests of any such Subsidiary to become outstanding.
	 	 
	4.2.3	Other
    than in connection with their direct or indirect ownership of the Subsidiaries, none of the Company or any of its Subsidiaries
    have any Investments. 
	 	 
	4.3	Assets
	 	 
	4.3.1	The
    Company and each of its Subsidiaries has good and valid title to, a valid and subsisting leasehold interest in (as applicable)
    or has the legal right to use, all of its properties and assets, free and clear of all Encumbrances other than Permitted Encumbrances.
    The Company and each of its Subsidiary’s properties and assets (a) constitute all of the assets (tangible and intangible),
    properties, rights, and services necessary and sufficient for the continued conduct of the Business as presently being conducted
    and as it relates to the Products, (b) have been and are maintained in accordance with good business practice, (c) are in
    good operating condition and repair and are not in need of maintenance or repairs, except for ordinary, routine maintenance
    and repairs and (d) are suitable for the purposes for which they are used and intended to be used.

 

    	 	8	 

    	 	 	 

    

 

	4.3.2	The
    Company and each of its Subsidiaries owns, or has the right to use pursuant to a valid and enforceable written Contract (an
    “IP Contract”), its Intellectual Property relating to the Products, free and clear of any Encumbrances.
    To the best of Seller’s Knowledge, such Intellectual Property is valid and enforceable, and Seller is not aware of any
    asserted or unasserted claim to the contrary. Immediately after the Closing, the Company and each of its Subsidiaries will
    own or have the right to use all of its Intellectual Property relating to the Products on the same terms and conditions as
    those in effect immediately prior to the Closing. Seller has provided true and complete copies, including any and all amendments
    thereto, of the Ferrer License and Supply Agreement and any and all other IP Contracts relating to the Products to the Purchaser.
    Each IP Contract (including the Ferrer License and Supply Agreement, the Asset Purchase Agreement between Valeant Pharmaceuticals
    Luxembourg SARL and Seller, dated November 4, 2015, and the Contribution Agreement between the Company and Seller, dated December
    3, 2015) is in full force and effect and constitutes the legal, valid, binding, and enforceable obligation of the Company
    or its Subsidiaries, as applicable, and each other party thereto except, in each case, as may be limited by applicable bankruptcy,
    insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting
    creditors’ rights or by general principles of equity affecting the availability of specific performance and other equitable
    remedies. To the best of Seller’s Knowledge, neither the Company nor any of its Subsidiaries nor, to the Knowledge of
    Seller, any other party is in breach, violation of or default under any IP Contract relating to the Products, and no event
    has occurred which (with or without notice, lapse of time or both) would constitute a breach, violation or default, or permit
    termination, modification or acceleration, of or under any IP Contract relating to the Products. No party to any IP Contract
    has repudiated any provision of any IP Contract relating to the Products.
	 	 
	4.4	Financial
    Statements
	 	 
	4.4.1	Attached
    as Exhibit B are (x) audited balance sheets of the Company as of September, 2016, September 30, 2017 and September 30, 2018
    and the related statement of income and cash flow for the fiscal years then ended and (y) an unaudited balance sheet of the
    Company as of February 28, 2019 (the “Interim Balance Sheet”) and the related statement of income for the
    five (5) months then ended (clauses (x) and (y), together, the “Financial Statements”). The Financial Statements
    (a) are true, correct, and complete in all material respects, (b) have been prepared in accordance with GAAP consistently
    applied throughout the periods indicated therein and with prior periods, (c) are consistent with the Books and Records and
    (d) accurately reflect, and fairly and reasonably present, the financial condition and results of operations and cash flows
    of the Company as of the dates and for the periods indicated therein. The Books and Records of the Company and each of its
    Subsidiaries are true, correct, and complete in all material respects and have been maintained in accordance with sound business
    practices.
	 	 
	4.4.2	Neither
    the Company nor any Subsidiary has any Indebtedness other than Indebtedness included in the Estimated Pre-Closing Liability
    Amount.
	 	 
	4.5	Absence
    of Changes.
	 	 
		Since
    December 31, 2018, (a) there has not been any change, event or effect that, individually or in the aggregate, resulted in,
    or would reasonably be expected to result in, a material adverse effect on the Business, condition (financial or otherwise),
    operations, performance, prospects, assets or Liabilities of the Company and its Subsidiaries, taken as a whole, and (b) the
    Company and each of its Subsidiaries has conducted its business only in the Ordinary Course of Business.
	 	 
	4.6	Litigation
	 	 
	4.6.1	No
    material Proceeding is currently or since January 1, 2016 has been pending, or to the Knowledge of Seller, threatened, against
    or relating to the Company or any of its Subsidiaries, or any of their respective businesses, Employees, properties or assets.
    To the Knowledge of the Seller, there are no facts making the commencement of any such Proceedings reasonably likely. None
    of Company or any of its Subsidiaries has entered into any Contract to settle or compromise any material Proceeding pending
    or threatened against it which has involved any obligation other than the payment of money for which it has no continuing
    obligation. There are no material Proceedings pending or threatened by the Company or any of its Subsidiaries against any
    third party.

 

    	 	9	 

    	 	 	 

    

 

	4.6.2	No
    Proceeding is pending, or to the Knowledge of Seller, threatened, against or relating to Seller or the Company or any of its
    Subsidiaries, any of the properties or assets or businesses of the Company or any of its Subsidiaries, this Agreement, or
    any of the transactions contemplated hereby (a) seeking to restrain or prohibit the execution and delivery of this Agreement
    or the performance hereunder, including the consummation of the transactions contemplated hereby or (b) that would adversely
    affect Seller’s and the ability of the Company or any of its Subsidiaries to consummate the transactions contemplated
    by this Agreement.
	 	 
	4.6.3	None
    of the Company or any of its Subsidiaries or the Products or the Business is or since January 1, 2016 has been subject to
    any Order that would materially impede the operation of the Business.
	 	 
	4.7	Compliance
    with Law and Permits
	 	 
	4.7.1	Since
    January 1, 2016, (a) the Company and each of its Subsidiaries has complied in all material respects with all applicable Laws
    to which they are subject including, without limitation, with respect to healthcare compliance matters: (i) FDA Law, (ii)
    all government and private payor healthcare program requirements; (iii) 42 U.S.C. §§ 1320a-7, 7(a) and 7(b) (criminal
    penalties for acts involving Federal health care programs), commonly referred to as the “Federal Anti-Kickback Statute,”
    (iv) 42 U.S.C. §1395nn (limitation on certain physician referrals), commonly referred to as the “Stark Statute,”
    (v) the Health Insurance Portability and Accountability Act of 1996, as amended by Title XIII of the American Recovery and
    Reinvestment Act of 2009 (Pub. L. 111–5), and the Health Information Technology for Economic and Clinical Health Act,
    as amended, along with all implementing rules and regulations at 45 CFR Part 164 (commonly referred to as “HIPAA”)
    and Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45(a), (vi) all other Laws of the United States relative
    to healthcare regulatory matters and the regulations promulgated to implement the foregoing Laws described in clauses (i)
    – (vi) of this sentence, as well as any comparable and similar state Laws and regulations, and (vii) the comparable
    and similar Laws and regulations of any domestic or foreign jurisdiction other than the United States federal government or
    any state, county, municipal or other political subdivision within the United States and (b) no notice has been given to,
    and no material Proceeding has been filed or commenced against, the Company or any of its Subsidiaries alleging any failure
    to comply with any Law. To the Knowledge of Seller, no Government Entity has any intention to conduct any material Proceeding
    relating to the Company or any of its Subsidiaries, their respective businesses or any of their respective properties or assets.
	 	 
	4.7.2	The
    Company and each of its Subsidiaries hold all material Permits required for the conduct of the Business. All such Permits
    have been duly obtained and are in full force and effect. Since January 1, 2016, (a) the Company and each of its Subsidiaries
    has been in compliance in all material respects with each such Permit and (b) none of the Company, any of its Subsidiaries
    or Seller has received any notice that any such Permit will be modified, suspended, cancelled or revoked or that any such
    Permit cannot be renewed in the Ordinary Course of Business. No Proceeding is currently or since January 1, 2016 has been
    pending, or to the Knowledge of Seller, threatened that would revoke or limit any material Permit held by the Company or any
    of its Subsidiaries. No active clinical trials are ongoing with respect to the Products.

 

    	 	10	 

    	 	 	 

    

 

	4.7.3	Each
    of the Company and its Subsidiaries has acted, and to the Knowledge of Seller, all other Persons who have performed operations
    on behalf of the Company and its Subsidiaries (including, without limitation, the Business with respect to the Products),
    have acted, in compliance with FDA Law, cGMP and any other applicable Law, and the terms and conditions of any material Permit
    (including, without limitation, with respect to the Products) in all material respects. To the Knowledge of Seller, there
    are no pending or scheduled regulatory inspections of any Person conducting activities relating to the Business.
	 	 
	4.7.4	Except
    as previously disclosed to Purchaser and its counsel with respect to the FDA Final NDA/ANDA Field Alert regarding EI, LLC,
    FEI Number 3005832998 and the Aktipak Product, there are no current and have been no recalls, field actions or governmental
    seizures or other similar adverse regulatory actions taken or threatened by the FDA, Drug Enforcement Agency, state controlled
    substance authority, Department Of Justice, state attorneys general or any other agency with jurisdiction over the development,
    testing and investigation, marketing, labeling, promotion, sale, use, handling, safety, efficacy, reliability or manufacturing
    of any of the Products, and there have been no recalls or field actions with respect to any of the Products initiated by the
    Seller, the Company or any of their respective Affiliates on a voluntary basis, whether or not at the request or suggestion
    of the FDA, Drug Enforcement Agency, state controlled substance authority, Department Of Justice, state attorneys general
    or any other agency or authority with jurisdiction over the development, testing and investigation, marketing, labeling, promotion,
    sale, use, handling, safety, efficacy, reliability or manufacturing of the Products.
	 	 
	4.7.5	Any
    packed Inventory has been appropriately released by an approved and appropriate qualified person. The Company and its Subsidiaries
    have not used in any capacity the services of any Person debarred under the U.S. Generic Drug Enforcement Act, 21 U.S.C. §335a(k)(1)
    and further have not used any Person who has been convicted of a crime as defined under the U.S. Generic Drug Enforcement
    Act in connection with the services rendered to the Company and its Subsidiaries. The Company and its Subsidiaries have paid
    all fees due and payable and required by any Government Entity with respect to any material Permit.
	 	 
	4.7.6	Each
    of the Company and each of its Subsidiaries has (a) timely filed with the appropriate Government Entity all material reports
    required by applicable Law, including any rebate agreement, to be filed by or on behalf of it with respect to average manufacturer
    price (as defined under the Social Security Act, 42 U.S.C. Sections 1396r-8(k)(1)), best price (as defined under the Social
    Security Act, 42 U.S.C. Section 1396r-8(c)(1)(C)) and average sales price, and each such report has been complete and accurate
    and (b) timely paid all rebates amounts due and owing to a Government Entity in accordance with applicable Law, including
    any rebate agreement entered into with such Government Entity. No material deficiency with respect to such reports or rebates
    has been asserted in writing or otherwise against the Company or any of its Subsidiaries or with respect to the Products.
	 	 
	4.8	Taxes
	 	 
	4.8.1	All
    Tax Returns required to be filed by or with respect to the Company and each of its Subsidiaries on or prior to the Closing,
    including all Tax Returns required to be filed with respect to the Business or the properties or assets of the Company or
    any Subsidiary, have been or will be timely filed with the appropriate Tax Authority, and all such Tax Returns, as filed,
    are true, correct and complete in all material respects and prepared in compliance with all applicable Laws.
	 	 
	4.8.2	All
    Taxes due or payable on or prior to the Closing Date with respect to the Company and each of the Subsidiaries (in each instance,
    whether or not shown to be due or payable on any Tax Return), have been timely paid in full.

 

    	 	11	 

    	 	 	 

    

 

	4.8.3	The
    Company and each Subsidiary has collected or withheld from its employees, creditors, equity holders, suppliers, and other
    third parties, and has timely paid to the appropriate authorities or set aside in a segregated account for such purpose, proper
    and accurate amounts in compliance with all withholding, collection, and remittance Tax and other applicable Laws (including
    income, social security and employment Tax withholding for all types of compensation). All Forms W-2 and Forms 1099 required
    with respect to such withholding, collection and payment have been properly and timely filed.
	 	 
	4.8.4	There
    are no liens for Taxes upon any of the Shares or the properties or assets of the Company or any of its Subsidiaries nor, to
    the Knowledge of the Seller, is any Tax Authority in the process of imposing any lien for Taxes on the Shares or the properties
    or assets of the Company or any of its Subsidiaries, other than liens (a) for Taxes that are not yet due and payable, or for
    Taxes due but not yet delinquent or (b) for Taxes the validity or amount of which is being contested by the Company or any
    of its Subsidiaries in good faith by appropriate Proceedings and for which an adequate reserve has been established and is
    maintained in accordance with GAAP, consistently applied.
	 	 
	4.8.5	There
    are no audits, examinations, claims, deficiencies or other Proceedings relating to any Taxes or Tax Returns of the Company
    or any Subsidiary pending before any Tax Authority and to the Knowledge of the Seller, no such audit, examination, claim,
    deficiency or other Proceeding has been threatened by any Tax Authority.
	 	 
	4.8.6	No
    Tax Authority has proposed or asserted to the Company, any of its Subsidiaries or any of its Affiliates any deficiency or
    claim for additional Taxes against, or any adjustment of Taxes relating to, the Company or any of its Subsidiaries, or the
    Business or any properties or assets of the Company or any of its Subsidiaries; and no Tax Authority in a jurisdiction in
    which the Company or any of its Subsidiaries (or another Person with respect to the Company or any of its Subsidiaries) does
    not file Tax Returns has asserted that the Company or any of its Subsidiaries (or such other Person) may be subject to Tax
    in such jurisdiction or is required to file such Tax Returns.
	 	 
	4.8.7	None
    of the Company or any of its Subsidiaries has waived any statute of limitations with respect to Taxes beyond the date hereof
    or agreed to any extension of time beyond the date hereof with respect to a Tax assessment or deficiency, and no such waiver
    or extension of any statute of limitations has been requested by any Tax Authority.
	 	 
	4.8.8	None
    of the Company or any of its Subsidiaries has participated in any (a) “tax shelter” within the meaning of Code
    Section 6111 (as in effect prior to the enactment of P.L. 108-357 or any comparable laws of jurisdictions other than the United
    States) or (b) “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4 (as in effect
    at the relevant time) or any comparable regulations of jurisdictions other than the United States.
	 	 
	4.8.9	None
    of the Company or any of its Subsidiaries is the successor (whether by merger, liquidation, conversion or otherwise) of any
    Person that, at any time, was classified as an “association” or taxable as a “corporation” for federal
    Income Tax purposes.
	 	 
	4.8.10	None
    of the Company or any of its Subsidiaries (a) has been a member of an affiliated group that filed a consolidated, combined,
    unitary or other similar Tax Return (other than a group in which the common parent of which was the Company) and (b) has Liability
    for the Taxes of any Person (other than the Company or any of its Subsidiaries) under Treasury Regulation Section 1.1502-6
    (or any similar provision of state, local, or non-U.S. Law), as a transferee or successor, by Contract or otherwise. 

 

    	 	12	 

    	 	 	 

    

 

	4.8.11	None
    of the Company or any of its Subsidiaries will be required to include any item of income in, or exclude any item of deduction
    from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any: (a) change
    in method of accounting for a taxable period ending on or prior to the Closing Date; (b) use of an improper method of accounting
    for a taxable period ending on or prior to the Closing Date; (c) “closing agreement” as described in Code Section
    7121 (or any corresponding or similar provision of state, local, or non-U.S. Law) executed on or prior to the Closing Date;
    (d) intercompany transaction or excess loss account described in Treasury Regulations under Code Section 1502 (or any corresponding
    or similar provision of state, local, or non-U.S. income Tax Law); (e) installment sale or open transaction disposition made
    on or prior to the Closing Date; (f) prepaid amount received on or prior to the Closing Date; or (g) election under Code Section
    108(i).
	 	 
	4.8.12	The
    unpaid Taxes of the Company and each of its Subsidiaries (a) did not, as of the date of the Interim Balance Sheet, exceed
    the reserve for Tax Liability (rather than any reserve for deferred Taxes established to reflect timing differences between
    book and Tax income) set forth on the face of the Interim Balance Sheet (rather than in any notes thereto) and (b) do not
    and will not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past
    custom and practice of the Company and each of its Subsidiaries in filing its Tax Returns. Since the date of the Interim Balance
    Sheet, none of the Company or any of its Subsidiaries has incurred any Liability for Taxes outside the Ordinary Course of
    Business.
	 	 
	4.8.13	None
    of the Contracts will obligate Purchaser or the Company or any of its Subsidiaries to indemnify, or to make payments to or
    on behalf of any other Person, with respect to Taxes of a Person other than the Company or its Subsidiaries.
	 	 
	4.8.14	None
    of the Company or any of its Subsidiaries (i) is, or has ever been, a party to, bound by or subject to any Tax allocation
    or Tax sharing agreement (or similar agreement), and (ii) is a party to a Contract (whether verbal or written) that constitutes
    a “partnership” for U.S. federal Income Tax purposes (or any similar or corresponding provision under non-U.S.
    Law).
	 	 
	4.8.15	Neither
    the Company nor any of its Subsidiaries is or has been, subject to Tax in a country in which it is not organized by virtue
    of having a permanent establishment or fixed place of business in such country.
	 	 
	4.8.16	None
    of the Subsidiaries of the Company has made an entity classification election under Section 7701 of the Code. 
	 	 
	4.8.17	There
    are no outstanding rulings or requests for ruling pending before any Tax Authority with respect to the Company or any of its
    Subsidiaries that are, or if issued would be, binding upon the Company or any of its Affiliates in respect of any taxable
    period ending after the Closing Date.
	 	 
	4.8.18	None
    of the Company or any of its Subsidiaries has distributed stock of another Person, or has had its stock distributed by another
    Person, in a transaction that was purported or intended to be governed in whole or in part by Code Section 355 or Code Section
    361. 
	 	 
	4.8.19	None
    of the Company or any of its Subsidiaries (a) is a “controlled foreign corporation” as defined in Code Section
    957, (b) is a “passive foreign investment company” within the meaning of Code Section 1297, or (c) has a permanent
    establishment (within the meaning of an applicable Tax treaty) or otherwise has an office or fixed place of business in a
    country other than the country in which it is organized.
	 	 
	4.8.20	No
    Taxes will be required to be deducted or withheld on any payments required to be made under this Agreement.

 

    	 	13	 

    	 	 	 

    

 

	4.8.21	This
    Section 4.8 constitutes the sole and exclusive representations and warranties of the Seller with respect to any matters relating
    to Taxes. The representations and warranties made in this Section 4.8 are limited to the past activities of the Company and
    are not intended to serve as representations and warranties regarding or a guarantee of, nor can they be relied upon with
    respect to, Taxes attributable to any Tax period (or portion thereof) beginning after the Closing Date.
	 	 
	4.9	Real
    Property
	 	 
	4.9.1	Neither
    the Company nor any of its Subsidiaries owns any real property or has any options or contractual obligations to purchase or
    acquire any interest in real property. The Company has delivered to Purchaser a true, correct and complete copy of each lease
    in respect of the Leased Real Property and any documents or instruments affecting the rights or obligations of any of the
    parties thereto. No lease in respect of the Leased Real Property is subject to any sublease, license or sublicense.
	 	 
	4.9.2	Each
    Leased Real Property (a) is in good operating condition and repair and to Seller’s Knowledge is structurally sound and
    free of defects, with no material alterations or repairs required thereto under applicable Law or insurance company requirements
    and (b) is suitable in all respects for its current use, operation and occupancy.
	 	 
	4.9.3	The
    use, operation and occupancy of each Leased Real Property have complied and comply with all Laws and Permits in all material
    respects, and do not violate in any material respect any instrument of record or Contract affecting such property.
	 	 
	4.9.4	There
    are no pending, or to the Knowledge of Seller, threatened, appropriation, condemnation, eminent domain or similar Proceedings
    relating to any Leased Real Property.
	 	 
	4.9.5	No
    Leased Real Property has suffered any material damage by fire or other casualty which has not heretofore been repaired and
    restored in all material respects.
	 	 
	4.10	Intentionally
    Omitted.
	 	 
	4.11	Broker’s
    Fees
	 	 
	 	None
    of the Seller, the Company or any of its Subsidiaries or Affiliates has any obligation to pay any fees or commissions to any
    broker, finder or agent with respect to any of the transactions contemplated by this Agreement.
	 	 
	4.12	Full
    Disclosure
	 	 
	 	There
    are no facts pertaining to the Company or any of its Subsidiaries, the Business or properties or assets of the Company or
    any of its Subsidiaries that materially adversely affect the Company or any of its Subsidiaries, the Business or any of the
    properties or assets of the Company or any of its Subsidiaries or that will or would reasonably be expected to materially
    adversely affect the Company or any of its Subsidiaries, the Business or any of the properties or assets of the Company and
    any of its Subsidiaries and that have not been disclosed in this Agreement or the Financial Statements. To Seller’s
    Knowledge, neither any representation or warranty of Seller in this Agreement, nor any statement or certificate furnished
    or to be furnished to Purchaser pursuant to this Agreement, or in connection with the transactions contemplated by this Agreement,
    contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained
    herein or therein not misleading.

 

    	 	14	 

    	 	 	 

    

 

	4.13	No
    Other Representations and Warranties of Seller
	 	 
	 	Seller,
    or any person on behalf of Seller, does not make any statement and does not give any guaranty, representation or warranty,
    whether express or implied, written or oral, with respect to Seller or the Company except as expressly provided for in Section
    ‎4 of this Agreement.
	 	 
	5.	Purchaser’s
    Representations
	 	 
	 	Purchaser
    hereby represents and warrants to Seller that the statements set forth in this Section ‎5 (together the “Purchaser’s
    Representations”) are correct and complete as of the date of this Agreement.

 

	 	a)	if
    and to the extent that any of Purchaser’s Representations is qualified as being to “Purchaser’s Knowledge”
    or the “Knowledge of Purchaser”, such term shall mean the knowledge of Thomas Schaffer and Dr. Hermann
    Lübbert after reasonable inquiry; and 
	 	 	 
	 	b)	Purchaser
    does not make any statement, representation or warranty and does not give any guarantee except as expressly provided for in
    this Agreement. 

 

	5.1	Authorization
    of Purchaser
	 	 
	5.1.1	Organization
    and Qualification.
	 	 
	 	Purchaser
    is a limited liability company duly formed, validly existing and in good standing under the Laws of the State of Delaware.
    Purchaser has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder,
    including the consummation of the transactions contemplated hereby.
	 	 
	5.1.2	Execution
    and Delivery.
	 	 
	 	The
    execution, delivery and performance of this Agreement have been duly authorized by Purchaser. This Agreement, when executed
    and delivered by Purchaser in accordance with the terms hereof (and assuming due authorization, execution and delivery by
    each of the other parties hereto) constitutes or will constitute a valid and binding obligation of Purchaser, as applicable,
    enforceable against Purchaser, in accordance with its terms, in each case, except as may be limited by applicable bankruptcy,
    insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting
    creditors’ rights or by general principles of equity affecting the availability of specific performance and other equitable
    remedies.
	 	 
	5.1.3	No
    Conflicts.
	 	 
	 	The
    execution, delivery and performance by Purchaser of this Agreement do not and will not (whether with or without the passage
    of time, the giving of notice or both): (a) violate or conflict with any provision of the organizational documents of Purchaser,
    (b) violate, conflict with, result in the breach of, constitute a default under, or result in the termination, cancellation,
    modification or acceleration (whether after the giving of notice or the lapse of time or both) of any right or obligation
    of Purchaser under, or result in a loss of any benefit to which Purchaser is entitled under, any Contract or Permit to which
    Purchaser is a party or otherwise bound or (c) violate or result in a breach of or constitute a default under any Law to which
    Purchaser or any of its properties or assets is subject except as would not materially and adversely affect Purchaser’s
    ability to consummate the transactions contemplated by this Agreement.

 

    	 	15	 

    	 	 	 

    

 

	5.2	Litigation
	 	 
	 	No
    Proceeding is pending, or to the Knowledge of Purchaser, threatened, against or relating to Purchaser, any of Purchaser’s
    properties or assets or business, this Agreement or any of the transactions contemplated hereby (a) seeking to restrain or
    prohibit the execution and delivery of this Agreement or the performance hereunder, including the consummation of the transactions
    contemplated hereby or (b) that would materially and adversely affect Purchaser’s ability to consummate the transactions
    contemplated by this Agreement.
	 	 
	5.3	Broker’s
    Fees
	 	 
	 	None
    of Purchaser or any of its Affiliates has any obligation to pay any fees or commissions to any broker, finder or agent with
    respect to any of the transactions contemplated by this Agreement.
	 	 
	5.4	Non-Reliance
	 	 
	 	Purchaser
    has not relied on any representations or warranties other than those set forth in this Agreement. The representations and
    warranties by Seller expressly and specifically set forth in Section 4 constitute the sole and exclusive representations,
    warranties, and statements of any kind of Seller in connection with the transactions contemplated hereby, and Purchaser understands,
    acknowledges and agrees that all other representations, warranties, and statements of any kind or nature, whether express
    or implied (including any relating to the future or historical financial condition, results of operations, prospects, assets
    or liabilities of the Company or the Business, or the quality, quantity or condition of the Products or other assets of the
    Company), are specifically disclaimed by Seller.
	 	 
	5.5	No
    Other Representations and Warranties of Purchaser
	 	 
	 	Purchaser,
    or any person on behalf of Purchaser, does not make any statement and does not give any guaranty, representation or warranty,
    whether express or implied, written or oral, with respect to Purchaser except as expressly provided for in Section ‎5
    of this Agreement.
	 	 
	6.	Covenants
	 	 
	6.1	Earnout
    Covenants
	 	 
	6.1.1	For
    the avoidance of doubt, Seller hereby acknowledges and agrees that (a) the right to payment of any Earnout Amount, if any,
    under Section ‎2.5 (i) is a contractual right that may not be assigned (including by operation of law or otherwise) or
    otherwise transferred to any Person without the prior written consent of Purchaser and (ii) is not a security, (b) any Earnout
    Amount payable under this Agreement is contingent upon the performance of the business of Purchaser (including the Business)
    following the Closing and, other than for the Guaranteed Payment Amount to the extent provided in this Agreement, there is
    no guaranteed minimum Earnout Amount hereunder, (c) notwithstanding anything to the contrary contained in this Agreement but
    subject to the authority of the BM Committee and the PCI Committee to the extent provided in Section ‎6.3 or Section ‎6.4,
    Purchaser and its Affiliates will be free to operate the business of Purchaser (including the Company and its Subsidiaries
    and the Business) as Purchaser deems appropriate in its sole discretion (including with respect to pricing, business plans,
    budgets, continuation or non-continuation of products and services or otherwise), and (d) none of Purchaser or any of its
    Affiliates (including the Company and its Subsidiaries from and after the Closing) shall have any fiduciary duty or other
    obligation whatsoever to act in any manner in an attempt to maximize any Earnout Amount payable to Seller; provided, however,
    that without limiting Purchaser’s right pursuant to Sections ‎6.1.2 below, (i) Purchaser shall not intentionally
    take any action with the primary purpose of reducing the Earnout Amount and (ii) Purchaser shall use its commercially reasonable
    efforts to cause the Company to generate revenue from the sale or sublicense of the Products, which efforts shall not require
    Purchaser or any of its Affiliates to (1) make any capital contributions to the Company, (2) spend any amounts in connection
    with the Products in excess of the sum of the Start-Up Costs and any revenue from the Products received by the Company or
    (3) take any actions with respect to the Products that Purchaser and its Affiliates would not take as it relates to its other
    products, including by prioritizing the sales of the Products over the other products of Purchaser and its Affiliates. Purchaser
    shall be deemed to have satisfied its obligations to use its commercially reasonable efforts in accordance with this Section
    6.1.1 if (1) the Company reasonably satisfies its obligations under the Business and Marketing Plan and (2) either of the
    members of Seller on the BM Committee approved of such Business and Marketing Plan.

 

    	 	16	 

    	 	 	 

    

 

	6.1.2	Subject
    to Section ‎6.4.3d), nothing in this Agreement shall restrict or prohibit Purchaser from consummating or causing the consummation
    of a Change of Control or Liquidation so long as, simultaneously with the consummation of such Change of Control or Liquidation,
    Purchaser pays or cause to be paid to Seller any portion of the Guaranteed Payment Amount then unpaid to Seller. Upon payment
    of such unpaid portion of the Guaranteed Payment Amount in connection with the consummation of the Change of Control or Liquidation,
    Purchaser and its Affiliates shall have no further obligations under this Agreement to Seller. Upon the consummation of a
    Liquidation, Seller shall no longer be entitled to any future Earnout Amounts.
	 	 
	6.2	Informational
    Rights; Access.
	 	 
	6.2.1	Financial
    Statements. Until the resolution of the final Earnout Amount in accordance with Section ‎2.5, Purchaser shall use
    its commercially reasonable efforts to provide to Seller the following information:

 

	 	a)	as
    soon as available, but no later than thirty (30) days after the end of each quarterly accounting period in each fiscal year
    (other than any quarterly accounting period ending on the last day of a fiscal year), unaudited consolidated statements of
    income and cash flows of the Company and its Subsidiaries for such quarterly period and unaudited consolidated balance sheets
    of the Company and its consolidated Subsidiaries as of the end of such quarterly period; and
	 	 	 
	 	b)	as
    soon as available, but no later than sixty (60) days after the end of each fiscal year, unaudited consolidated statements
    of income and cash flows of the Company and its Subsidiaries for such fiscal year, and audited consolidated balance sheets
    of the Company and its Subsidiaries as of the end of such fiscal year. 

 

	6.2.2	Access.
    At any time prior to the final determination of the final Earnout Amount in accordance with Section ‎2.5 and subject to
    any applicable Laws, upon Seller’s reasonable request, Purchaser shall use its commercially reasonable efforts to make
    available to Seller and its employees, agents, advisors, accountants or other representatives, upon reasonable notice, access
    during normal business hours to such of the Company’s or its Subsidiaries’ employees, Books and Records, and accounts
    and such information, in each case, as may be reasonably requested by Seller for the sole purposes of verifying (i) Purchaser’s
    compliance with Section ‎2.5, Section ‎6.1, Section ‎6.3 and Section 6.4 hereof, (ii) the PCI Committee’s
    calculation of the Restructuring Costs and the Final Working Capital Adjustment Amount, and (iii) the information (including
    the BM Committee’s calculations) set forth in any not yet finally determined Earnout Calculation. All information obtained
    pursuant to this Section ‎6.2 shall be considered Confidential Information for purposes Section 6.5.

 

    	 	17	 

    	 	 	 

    

 

	6.3	Restructuring
    of the Business, payment of Restructuring Costs
	 	 
	6.3.1	From
    and after the Closing Date, Purchaser shall be entitled to restructure the Business and/or the Company and its Subsidiaries
    (the “Restructuring”).
	 	 
	6.3.2	In
    furtherance of the foregoing, the Parties have established a post-Closing integration committee (the “PCI Committee”),
    which shall meet at least monthly or more frequently as determined by any two members thereof until the earlier of (i) the
    completion of the Restructuring in accordance with the Restructuring Plan (as defined below) and (ii) the three (3) year anniversary
    of the date hereof (the “PCI Period”). The PCI Committee consists and shall consist of four members. Seller
    and Purchaser shall be entitled to appoint two members each (the “Seller PCI Members” and “Purchaser
    PCI Members”, respectively). The initial Purchaser PCI Members are: Thomas Schaffer and Dr. Hermann Lübbert.
    The initial Seller PCI Members are: Junichi Hamada and Kazumasa Hirata. Seller and Purchaser shall have the right to replace
    any Seller PCI Members or Purchaser PCI Members, respectively, at any time and for any reason. 
	 	 
	6.3.3	Within
    three (3) months of the date hereof, the PCI Committee shall establish and adopt pursuant to Section ‎6.3.7 a Restructuring
    budget and plan (as amended, modified or supplemented from time to time, the “Restructuring Plan”) that
    sets forth any planned Restructuring actions and the estimated Restructuring Costs (the “Estimated Restructuring
    Costs”). Such Restructuring actions shall include, among other things, the termination of all Contracts between
    Seller and the Company; provided, the Parties acknowledge and agree that (i) the Liability of Purchaser and its Affiliates
    under or in connection with the foregoing Contracts (and the transactions contemplated thereby) from the Closing Date until
    the termination of such Contracts shall be limited to Liabilities arising out of the willful misconduct or gross negligence
    of the Purchaser and/or its Affiliates, and (ii) as soon as practicable after the date hereof, Seller and the Company shall
    amend the terms of the Master Services Agreement to modify the scope of services to be provided by the Company and to provide
    that the Company shall only indemnify Seller for damages thereunder in the event of the Company’s gross negligence or
    willful misconduct. Notwithstanding anything to the contrary contained in this Agreement, (i) the Parties agree that (A) the
    Restructuring Plan shall provide that all operations of the Company and its Subsidiaries other than relating to the Products
    will either be wound down or transferred out of the Company or any of its Subsidiaries and all license Contracts (and underlying
    Intellectual Property) other than the license Contracts relating to the Products (and underlying Intellectual Property) shall
    be terminated or assigned, (B) Purchaser and its Affiliates shall be under no obligation to retain any of the Employees and
    (ii) Purchaser shall, in its sole and absolute discretion, be permitted to include in the Restructuring Plan the following:
    (A) the transfer of the operations (including the manufacturing and distribution operations) of the Company and its Subsidiaries
    to one of the facilities of Purchaser or one of its Affiliates, (B) the shutdown of the facilities of the Company and its
    Subsidiaries (including the termination of any leases relating thereto) and (C) subject to the provisions of Section 6.7,
    the transfer of the Product Program Assets and the Development Program Assets of the Company and its Subsidiaries to Purchaser
    or one of its Affiliates.
	 	 
	6.3.4	The
    role and responsibility of the PCI Committee during the PCI Period shall be:

 

	 	a)	the
    oversight of Purchaser’s plans and/or strategies for the Restructuring; 
	 	 	 
	 	b)	the
    oversight of the progress of the Restructuring; 
	 	 	 
	 	c)	the
    approval of costs for the Restructuring during the PCI Period in excess of the Estimated Restructuring Costs; and 
	 	 	 
	 	d)	the
    determination of the actual Restructuring Costs incurred during the Restructuring pursuant to the Restructuring Plan. Such
    determination shall occur as soon as possible after the completion of the PCI Period.

 

    	 	18	 

    	 	 	 

    

 

 

	6.3.5	Estimated
    Restructuring Costs and Restructuring Costs

 

	 	a)	Within
    ten (10) Business Days of the adoption of the Restructuring Plan by the PCI Committee, Seller shall pay an amount equal to
    the Estimated Restructuring Costs to the Company (or its designee) by wire transfer of immediately available funds to an account
    designated by the Company, provided, that as provided in Section 2.4(c), the Seller Adjustment shall be applied against
    the Restructuring Costs otherwise payable by Seller (the “Seller Adjustment Offset”). 
	 	 	 
	 	b)	If
    the difference between (i) the actual aggregate Restructuring Costs as finally determined pursuant to this Section ‎6.3
    minus (ii) the sum of the Estimated Restructuring Costs plus the Seller Adjustment Offset is a positive number, then
    Seller shall pay the amount of such difference to Purchaser (or its designee). If the difference between (x) the Restructuring
    Costs as finally determined pursuant to this Section ‎6.3 minus (y) the sum of the Estimated Restructuring Costs
    plus the Seller Adjustment Offset is a negative number, then Purchaser shall pay the absolute value of such difference to
    Seller. All payments due under this Section ‎6.3.5b) shall be made within ten (10) Business Days of the date of the final
    determination of the Restructuring Costs by wire transfer of immediately available funds to the accounts designated in writing
    by the Party entitled to such payment.

 

	6.3.6	Payment
    of the Operating Costs

 

	 	a)	In
    addition to the obligations of Seller with respect to the Restructuring Costs, during the three (3) month period following
    the Closing Date (the “Working Capital Period”), in the event that Purchaser determines that the Estimated
    Cash Amount at the Company and its Subsidiaries is less than the Monthly Cash Target Amount, Purchaser shall have the right
    to send a written notice to Seller (the “Working Capital Notice”) (i) setting forth the calculation of
    an amount (the “Working Capital Adjustment Amount”) equal to the difference between (x) the Monthly Cash
    Target Amount and (y) the Estimated Cash Amount as of the date of such Working Capital Notice, and (ii) directing Seller to
    pay such Working Capital Adjustment Amount. Seller shall pay the Company an amount equal to the Working Capital Adjustment
    Amount within ten (10) Business Days after delivery of such Working Capital Notice, provided that Purchaser shall not send
    more than one Working Capital Notice during any period of thirty (30) calendar days. The aggregate of such Working Capital
    Adjustment Amounts paid to the Company by Seller shall be referred to as the “Total Working Capital Amount.”
	 	 	 
	 	b)	No
    later than one hundred twenty (120) calendar days after the Closing Date, the PCI Committee shall determine the Final Working
    Capital Adjustment Amount. If the Final Working Capital Adjustment Amount is a positive number, as finally determined pursuant
    to Section 6.3.7, then Seller shall pay such amount to Purchaser. If the Final Working Capital Adjustment Amount is a negative
    number, as finally determined pursuant to Section 6.3.7, then Purchaser shall pay the absolute value of such amount to Seller.
    For the avoidance of doubt, no Restructuring Costs shall be included in the calculation of Net Operating Costs or the Final
    Working Capital Adjustment Amount.

 

    	 	19	 

    	 	 	 

    

 

 

	6.3.7	All
    members of the PCI Committee must be afforded the opportunity to participate in the meeting by means of a telephone conference,
    video conference or other similar means which allows all persons participating in the meeting to hear and speak to each other.
    Members participating in a meeting in this manner shall be deemed to be present at the meeting. Any decision to be made by
    the PCI Committee shall be made by a majority vote; provided, that at least one member appointed by each Party must
    attend for the PCI Committee to meet the quorum; provided, further, that if no Seller PCI Member is present
    for two (2) consecutive meetings called for the same purpose pursuant to written notice provided to all of the members of
    the PCI Committee, then the presence of any Purchaser PCI Member then serving shall constitute a quorum for the next meeting
    called for such purpose. Each member shall be entitled to cast one vote on any matter on which they are entitled to vote;
    provided, that a member shall be entitled to cast two votes if the other Seller PCI Member or Purchaser PCI Member,
    as applicable, is not present.

 

If
the vote of the PCI Committee ends in a tie (a “PCI Deadlock”), then:

 

	 	a)	Purchaser
    PCI Members and Seller PCI Members shall use their commercially reasonable efforts for a period of five (5) Business Days
    to resolve any disagreements with respect to the PCI Deadlock. If, at the end of such period, they are unable to resolve such
    disagreements, then Dr. Hermann Lübbert (on behalf of Purchaser) and Mr. Junichi Hamada (on behalf of Seller) shall use
    their commercially reasonable efforts for a period of five (5) Business Days to resolve any remaining disagreements. If they
    are unsuccessful, then (i) (A) the Company and its Subsidiaries shall be permitted to take the actions proposed to be taken
    by Dr. Hermann Lübbert and (B) Seller shall pay or cause to be paid any costs, fee and expenses to be incurred in connection
    with such actions (the “Interim Costs”) and (ii) if requested by Seller, an independent pharmaceuticals
    industry consulting firm of recognized national standing mutually selected by Purchaser and Seller within thirty (30) days
    after such request (the “Neutral PCI Expert”) shall resolve any remaining disagreements (including, if
    applicable, the reasonableness of the Interim Costs). Each of Purchaser, on the one hand, and Seller, on the other, shall
    promptly provide its assertions regarding the PCI Deadlock in writing to the Neutral PCI Expert and to each other. The Neutral
    PCI Expert shall be instructed to render its determination with respect to such disagreements (including, if applicable, the
    reasonableness of the Interim Costs)as soon as reasonably practicable (which the parties hereto agree should not be later
    than ten (10) Business Days following the day on which the disagreement is referred to the Neutral PCI Expert). The Neutral
    PCI Expert shall make its decision based on what it determines is in the best interests of the Company and its Subsidiaries.
    In the event that the Neutral PCI Expert determines that a portion of such Interim Costs actually paid by Seller were not
    reasonable, then the Company shall pay to Seller the amount of such Interim Costs that the Neutral PCI Expert determined were
    not reasonable.
	 	 	 
	 	b)	To
    the extent that Dr. Lübbert or Mr. Hamada are for any reason unable or unwilling to serve on the PCI Dispute Committee,
    such individuals may be replaced by any natural person appointed by Purchaser and Seller, respectively.

 

	6.3.8	The
    content and information shared during and through the discussions in the PCI Committee and the PCI Dispute Committee shall
    be considered Confidential Information for purposes of Section 6.5 hereof.
	 	 
	6.3.9	All
    amounts paid by Seller to the Company or Purchaser or an Affiliate of Purchaser pursuant to Section 6.3.5 to fund costs incurred
    in implementing the Restructuring Plan shall be used by such entity exclusively to fund the costs incurred in implementing
    the Restructuring Plan.
	 	 
	6.4	Business
    and Marketing
	 	 
	6.4.1	The
    Parties have established a business and marketing committee (the “BM Committee”), which shall meet at least
    twice a year or more frequently as determined by at least two members thereof until the Aggregate Earnout Amount is calculated
    and paid in accordance with Section ‎2.5. The BM Committee consists and shall consist of four members. Seller and Purchaser
    shall be entitled to appoint two members each (the “Seller BM Members” and “Purchaser BM Members”,
    respectively). The initial Purchaser BM Members are: Mr. Christophe Dunwald and Mr. Jeff Holm. The initial Seller BM Members
    are: Mr. Junichi Hamada and Mr. Tadao Yoshihara. Seller and Purchaser shall have the right to replace any Seller BM Members
    or Purchaser BM Members, respectively, at any time and for any reason.

 

    	 	20	 

    	 	 	 

    

 

	6.4.2	Within
    thirty (30) days after the date hereof, the BM Committee shall establish an initial business and marketing plan for the operation
    of the Business with a view toward generating revenue from the sale or sublicense of the Products (as amended, modified or
    supplemented from time to time, the “Business and Marketing Plan”).

 

	6.4.3	The
    role and responsibility of the BM Committee shall be:

 

	 	a)	the
    approval of the Business and Marketing Plan and any subsequent amendments or supplements thereto; 
	 	 	 
	 	b)	the
    supervision of the implementation of the Business and Marketing Plan by the Company; 
	 	 	 
	 	c)	the
    determination of the Product Profit Amounts and Earnout Amounts in accordance with Section ‎2.5;
	 	 	 
	 	d)	the
    approval of any Change of Control or Liquidation (subject to any additional approval that may be required under applicable
    Law). 

 

	6.4.4	All
    members of the BM Committee must be afforded the opportunity to participate in the meeting by means of a telephone conference,
    video conference or other similar means which allows all persons participating in the meeting to hear and speak to each other.
    Members participating in a meeting in this manner shall be deemed to be present at the meeting. Any decision to be made by
    the BM Committee shall be made by a majority vote; provided, that at least one member appointed by each Party must
    attend for the BM Committee to meet the quorum; provided, further, that if no Seller BM Member is present for
    two (2) consecutive meetings called for the same purpose pursuant to written notice provided to all of the members of the
    BM Committee, then the presence of any Purchaser BM Members then serving shall constitute a quorum for the next meeting called
    for such purpose. Each member shall be entitled to cast one vote on any matter on which they are entitled to vote; provided,
    that a member shall be entitled to cast two votes if the other Seller BM Member or Purchaser BM Member, as applicable, is
    not present. If a vote of the BM Committee ends in a tie, Purchaser’s representatives at the meeting shall have the
    controlling vote.
	 	 
	6.4.5	The
    content and information shared through the Business and Marketing Plan and through the discussions in the BM Committee shall
    be considered Confidential Information for purposes of Section 6.5 hereof and be strictly limited to the extent permissible
    under applicable antitrust law.
	 	 
	6.5	Confidentiality
	 	 
	 	Seller
    acknowledges that it is in possession of non-public or proprietary information relating to the Company, its Subsidiaries,
    its and their properties and assets, and the Business (“Confidential Information”). Seller shall, and shall
    cause its Affiliates and representatives (including its designees to the PCI Committee and the BM Committee) to (a) treat
    confidentially and not disclose all or any portion of the Confidential Information and (b) not use the Confidential Information
    other than in connection with this Agreements. Seller further acknowledges and agrees that the Confidential Information is
    proprietary and confidential in nature and part of the Company’s properties and assets. If Seller or any of its Affiliates
    or representatives is requested or required by Law or a Government Entity to disclose any Confidential Information Seller
    shall, or shall cause such Affiliates or representatives to, provide Purchaser with prompt written notice of such request
    so that Purchaser may seek an appropriate protective order or other appropriate remedy. At any time that such protective order
    or remedy has not been obtained, Seller or its Affiliate or representative may disclose only that portion of the Confidential
    Information that such Person is legally required to disclose or of which disclosure is required to avoid sanction for contempt
    or any similar sanction, and Seller or its Affiliates shall exercise their reasonable best efforts to obtain assurance that
    confidential treatment will be accorded to such Confidential Information so disclosed.

 

    	 	21	 

    	 	 	 

    

 

	6.6	Non-Compete;
    Non-Solicit
	 	 
	 	Until
    the earliest to occur of (i) the two year anniversary of a Change of Control of the Company, (ii) 30 October 2031, and (iii)
    the discontinuation of the operation of the Business by the Company or Purchaser or one of its Affiliates with respect to
    one or both of the Products (provided that in the event of such discontinuation with respect to only one of the Products,
    the obligations set forth in this Section ‎6.6 shall not apply with respect to such Product), Seller shall not, and shall
    cause its Affiliates not to, directly or indirectly, within the United States of America (the “Territory”):
	 	 
	6.6.1	sell,
    market, or make any commercial use of a Therapeutic Equivalent to Xepi and/or Aktipak within the Territory (a “Competitive
    Business”). “Therapeutic Equivalent” means a product that (i) is a pharmaceutical equivalent (as that
    term is defined in 21 C.F.R. §314.3(b)) to, and displays bioequivalence (as that term is defined in 21 C.F.R. §314.3(b))
    with, another drug product, or (ii) has been listed in the Orange Book as having therapeutic equivalence (i.e., is designated
    with a therapeutic equivalence code starting with “A”) with, and has the same combination of active ingredients
    as, another drug product. “Orange Book” means the FDA publication “Approved Drug Products with Therapeutic
    Equivalence Evaluations,” as may be amended from time to time;
	 	 
	6.6.2	invest
    in, own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control
    of, or have any interest in, or earn compensation from, or render services to, or guarantee the obligations of, any Person
    that engages in a Competitive Business in the Territory; provided, that, Seller may own, directly or indirectly, solely
    as a passive investment, securities of any entity traded on any national securities exchange (a “Public Company”)
    engaged in a Competitive Business if Seller is not a controlling person of, or a member of a group which controls, such entity
    and does not, directly or indirectly, “beneficially own” (as defined in Rule 13d-3 of the Securities Exchange
    Act of 1934 without regard to the sixty (60)-day period referred to in Rule 13d-3(d)(1)(i)) five percent (5%) or more of any
    class of securities of such other entity.
	 	 
	6.6.3	solicit
    any business directly or indirectly on behalf of a Competitive Business operating in the Territory from any Person that was
    a client or customer of the Business as of the Closing Date;
	 	 
	6.6.4	recruit,
    solicit, or induce, or attempt to recruit, solicit, or induce, any Person who as of the date of actual or attempted recruitment,
    solicitation or inducement, is an Employee, officer, director, manager, or contractor of the Company or any of its Subsidiaries,
    to be an employee, officer, director, manager, consultant or independent contractor of, or otherwise perform services for
    or be affiliated with a business (a) in which Seller participates in any capacity (including, without limitation, as a shareholder,
    partner, member, joint venturer, principal, agent, trustee or consultant sales representative) and (b) which is otherwise
    in a Competitive Business; or in any manner induce or attempt to induce any such current Employee or contractor as of the
    Closing to terminate his or her employment or association with the Business, provided, however, that this Section 6.6.4
    shall not prohibit the Seller or its Subsidiaries from soliciting or hiring any such Employee, officer, director, manager,
    or contractor who responds to a general advertisement or solicitation, including but not limited to advertisements or solicitations
    through any general advertising medium, including but not limited to newspapers, trade publications, periodicals, radio or
    internet database, or efforts by any recruiting or employment agencies, not specifically directed at such Employee, officer,
    director, manager, or contractor; 

    	 	22	 

    	 	 	 

    

 

	6.6.5	subject
    to the foregoing provisions of this Section ‎6.6, intentionally interfere or seek to interfere with the relationship of
    the Company or any of its Subsidiaries with any Person (including any supplier, lender, or investor of the Company or any
    of its Subsidiaries) in the Territory, including by causing or attempting to cause any such Person to discontinue, reduce
    the extent of or discourage the development of such relationship with the Company or any of its Subsidiaries, or to terminate
    any Contract, arrangement or understanding between such Person and the Company or any of its Subsidiaries; or
	 	 
	6.6.6	denigrate,
    disparage or discredit the Company or any of its Subsidiaries, Purchaser or any of its Affiliates or any of their respective
    customers or clients, any of the Company’s or its Subsidiaries’ or Affiliates’ properties or assets, the
    Business, any business conducted by the Company, its Subsidiaries or any of its Affiliates, Purchaser or any of its Affiliates
    or any shareholder, partner, member, director, manager, officer, employee or agent of the Company or any of its Subsidiaries,
    Purchaser or any of its Affiliates to entities or people which have either an existing business relationship with the Company,
    any of its Subsidiaries or any of its Affiliates, Purchaser or any of its Affiliates or, to the Knowledge of the Seller, a
    prospective business relationship with the Company, any of its Subsidiaries or any of its Affiliates, Purchaser or any of
    its Affiliates.
	 	 
	6.7	Acquisition
    of Company’s development program
	 	 
	 	Promptly
    after the Closing, but for a period not to exceed ninety (90) days from date hereof, the Parties shall identify and agree
    upon those assets constituting the Company’s development program assets which consist of Intellectual Property and associated
    Contracts and regulatory applications and documents relating to research, product development, clinical trials and marketing/research
    authorizations associated with products under development by the Company unrelated to the Products (collectively, the “Development
    Program Assets”). The Parties shall further agree upon the timing and process associated with transferring the Development
    Program Assets to Seller. Such transfer shall be in further consideration of the agreements of Seller set forth herein.
	 	 
	6.8	Further
    Assurances
	 	 
	 	From
    time to time after the Closing, each Party shall, and shall cause its Affiliates to, without further consideration promptly
    (a) take, or cause to be taken, all actions reasonably necessary to carry out the intent and purposes of this Agreement and
    (b) execute, acknowledge and deliver any other assurances or documents or instruments of transfer reasonably requested by
    any other Party and necessary for such other Party to satisfy its obligations hereunder or to obtain the benefits of the transactions
    contemplated hereby.

 

    	 	23	 

    	 	 	 

    

 

	7.	Indemnification
	 	 
	7.1	Remedies

 

	 	a)	Seller
    shall indemnify, defend and hold harmless each of Purchaser, its Affiliates (including, from and after the Closing, the Company
    and its Subsidiaries), and their respective officers, directors, employees, equityholders, representatives, consultants and
    other agents (collectively, the “Purchaser Indemnified Persons”) from and against any Losses incurred or
    sustained by any Purchaser Indemnified Person arising out of, resulting from, relating to or otherwise in respect of: (i)
    a breach or non-fulfilment of any of the Seller’s Representations, (ii) a breach or failure by Seller to perform any
    of its covenants or agreements contained in this Agreement, (iii) all Liabilities of the Company and its Subsidiaries relating
    to or arising out of the period prior to the Closing to the extent not expressly included in the calculation of the Net Liability
    Adjustment Amount, (iv) all Liabilities arising after the Closing Date and relating to (A) the Restructuring, (B) the Restructuring
    Plan or (C) the Development Program Assets and other assets or properties not retained by the Company and its Subsidiaries
    in accordance with the Restructuring Plan and not paid by Seller in accordance with Section 6.3 or otherwise reflected in
    the Net Liability Adjustment Amount and to the extent not caused by the willful misconduct or gross negligence of Purchaser
    or the Company or any of its Subsidiaries and, solely with respect to (A) and (B) above, until the end of the PCI Period,
    (v) the breach, default, amendment, waiver or termination, or other failure to be in full force and effect, of any IP Contract
    or license agreement (including the Ferrer License and Supply Agreement) or other Contract under which the Company or any
    of its Subsidiaries has rights to market, distribute or sell any of the Products occurring prior to Closing, (vi) the Development
    Program Assets, and/or (vii) all Seller Taxes, provided, that Seller will not be required to indemnify the Purchaser
    Indemnified Persons for reductions in any Tax Attributes resulting from the Purchaser’s purchase of the Shares pursuant
    to this Agreement. The Seller will not be required to indemnify the Purchaser Indemnified Persons with respect to the portion
    of any Seller Taxes attributable to a Pre-Closing Tax Period that are reduced under applicable Law and not required to be
    paid by reason of net operating loss carryovers, Tax credits and similar Tax Attributes of the Company arising in a Pre-Closing
    Tax Period.
	 	 	 
	 	b)	Purchaser
    shall indemnify, defend and hold harmless Seller, its Affiliates, and their respective officers, directors, employees, equityholders,
    representatives, consultants and other agents (collectively, the “Seller Indemnified Persons”) from and
    against any Losses incurred or sustained by any Seller Indemnified Person arising out of, resulting from, relating to or otherwise
    in respect of (i) a breach or non-fulfilment of any of the Purchaser’s Representations and/or (ii) a breach or failure
    by Purchaser to perform any of its covenants or agreements contained in this Agreement to the extent (A) not caused by the
    willful misconduct or gross negligence of any Seller Indemnified Person and (B) with respect to a breach of Section 6.1.1,
    relating to the compliance by Purchaser and its Affiliates with any Business and Marketing Plan approved by any Seller member
    of the BM Committee or any Restructuring Budget approved by any Seller member of the PCI Committee.

 

	7.2	Compensation
    in cash

 

A
Purchaser Indemnified Person or Seller Indemnified Person (each, in such capacity, an “Indemnified Person”)
is entitled to request from the Party from which indemnification is sought in accordance with this Section 7.2 (the “Indemnitor”)
compensation in cash by payment of an amount necessary to compensate such Indemnified Person for all applicable Losses.

 

    	 	24	 

    	 	 	 

    

 

	7.3	Definition
    of Losses

 

“Losses”
means any and all losses, Proceedings, claims, Liabilities, damages, awards, Taxes, fines deficiencies, expenses, (including court
costs and reasonable fees and expenses of attorneys, accountants, consultants and other experts), including interest, penalties,
and all amounts paid in investigation, defense or settlement of any of the foregoing; provided, that (x) such Losses shall
exclude (i) punitive or exemplary damages or Losses calculated by reference to any multiple of earnings, earnings before interest,
tax, depreciation and/or amortization or any other financial metric or (ii) special, consequential or indirect damages or lost
profits that are not the reasonably foreseeable result of a breach of this Agreement and (y) the limitations on Losses in (x)(i)
and (x)(ii) above shall not apply to Third Party Claims for which any Party is obligated to indemnify another Person hereunder.

 

	7.4	Claim
    Procedures

 

	7.4.1	Other
    than for a Tax Proceeding, an Indemnified Person shall promptly give written notice (the “Claim Notice”)
    thereof to the Indemnitor after (a) becoming aware of a Loss for which the Indemnified Person intends to seek indemnification
    or (b) receipt by the Indemnified Person of notice of any claim or the commencement of any Proceeding against it by a Person
    other than an Indemnified Person (a “Third Party Claim”) which would reasonably be expected to result in
    a Loss for which the Indemnified Person is entitled to indemnification hereunder. The Claim Notice shall specify the basis
    for such Third Party Claim (including the claimed Loss and/or the asserted Liability) in reasonable detail therein, and shall
    indicate the amount (estimated, if necessary) of the Loss and/or asserted Liability that has been or is then anticipated to
    be suffered by the Indemnified Person. Subject to Section 8.3, the failure to provide (or promptly provide) a Claim Notice
    will not relieve the Indemnitor of any Liability that it may have to any Indemnified Person, except to the extent that the
    Indemnitor demonstrates that the defense of a Third Party Claim is materially prejudiced by the Indemnified Person’s
    failure to give such Claim Notice.
	 	 
	7.4.2	Within
    twenty (20) Business Days after receipt of a Claim Notice relating to a claim other than a Third Party Claim, the Indemnitor
    shall deliver to the Indemnified Person a written response in which the Indemnitor will either: (a) agree that the Indemnified
    Person is entitled to receive all of the Losses at issue in the Claim Notice or (b) dispute the Indemnified Person’s
    entitlement to indemnification by delivering to the Indemnified Person a written notice (an “Objection Notice”)
    setting forth in reasonable detail each disputed item, the basis for each such disputed item and certifying that all such
    disputed items are being disputed in good faith. If the Indemnitor fails to take either of the foregoing actions within twenty
    (20) Business Days after delivery of the Claim Notice, then the Indemnitor will be deemed to have irrevocably accepted the
    Claim Notice and the Indemnitor will be deemed to have irrevocably agreed to pay the Losses at issue in the Claim Notice.
    If the Indemnitor delivers an Objection Notice to the Indemnified Person within twenty (20) Business Days after delivery of
    the Claim Notice, then the dispute may be resolved by any legally available means consistent with Section 7 and the other
    provisions of this Agreement.
	 	 
	7.4.3	Third
    Party Claims

 

	 	a)	Any
    Indemnitor shall be entitled to, at its sole cost and expense, contest, defend and assume the defense of any Third Party Claim
    with counsel of its choice reasonably satisfactory to the Indemnified Person so long as the Indemnitor notifies the Indemnified
    Person in writing within fifteen (15) days after the Indemnified Person has given a Claim Notice that the Indemnitor shall
    assume the defense of such Third Party Claim. Notwithstanding the foregoing, the Indemnitor shall not have the right to assume
    control of such defense if the Third Party Claim which the Indemnitor seeks to assume control (i) seeks non-monetary relief,
    (ii) involves criminal or quasi-criminal allegations or (iii) involves a claim that, in the good faith judgment of the Indemnified
    Person, the Indemnitor failed or is failing to vigorously prosecute or defend.

 

    	 	25	 

    	 	 	 

    

 

	 	b)	So
    long as the Indemnitor is conducting the defense of the Third Party Claim in accordance with Section 7.4.3a): (a) the Indemnified
    Person may retain separate co-counsel, which shall be at its sole cost and expense unless the Indemnified Person reasonably
    believes a conflict of interest exists (in which case the reasonable fees and expenses of such co-counsel shall be Losses
    of such Indemnified Person), and participate in the defense of the Third Party Claim and (b) the Indemnitor will not consent
    to the entry of any Order sought to be entered by a Government Entity or enter into any settlement with respect to the Third
    Party Claim without the prior written consent of the Indemnified Person (not to be withheld, delayed or conditioned unreasonably).
    Notwithstanding the foregoing, the Indemnified Person shall have no obligation of any kind to consent to the entrance of any
    Order or into any settlement (A) unless such Order or settlement (x) is for only money damages, the full amount of which shall
    be paid by the Indemnitor and (y) includes, as a condition thereof, an express, unconditional release of the Indemnified Person
    and any of its applicable Affiliates from any Liability or with respect to such Third Party Claim or (B) if such Order or
    settlement would be reasonably expected, in the good faith judgment of the Indemnified Person, to establish a precedent, custom
    or practice materially adverse to the continuing business interests or prospects of the Indemnified Person or its Affiliates.
	 	 	 
	 	c)	In
    the event the Indemnitor does not conduct the defense in accordance with Section 7.4.3a), the Indemnified Person may defend
    against the Third Party Claim in any manner it reasonably may deem appropriate; provided, however, that the Indemnitor may
    participate in such defense at its own expense.

 

	7.5	Assistance
	 	 
	7.5.1	In
    connection with the Third Party Claims, the Indemnified Person shall provide the Indemnitor with all information and assistance
    reasonably requested by the Indemnitor for its assessment of any claims, including the right of Seller to review the books,
    records, files and systems of the Company or any of its Subsidiaries to the extent related to the possible Third Party Claim
    (which information shall be deemed Confidential Information).

 

	8.	General
    Exclusions and Limitations
	 	 
	8.1	Limitation
    of Liability

 

Notwithstanding
anything herein to the contrary, no Indemnified Person shall be entitled to indemnification or reimbursement under any provision
of this Agreement for any amount to the extent such Indemnified Person has been indemnified or reimbursed for such amount under
any other provision of this Agreement or otherwise.

 

	8.2	Monetary
    limits

 

All
indemnity obligations of Seller or Purchaser pursuant to Section 7 shall be uncapped.

 

	8.3	Time
    Limits

 

	 	a)	The
    representations, warranties, covenants and agreements of Seller contained in this Agreement shall survive the Closing for
    eighteen (18) months following the Closing Date (the “General Survival Date”), except that (i) the representations
    and warranties of Seller set forth in Sections 4.1, 4.2, 4.8 and 4.11 shall survive the Closing until ninety (90) days following
    the expiration of the applicable statute of limitations, giving effect to any extensions thereof (the “Fundamental
    Representation Survival Date”), and (ii) the covenants and agreements of Seller to be performed in whole or in part
    after the Closing shall survive for twelve (12) months after they are fully performed.

 

    	 	26	 

    	 	 	 

    

 

	 	b)	The
    representations, warranties, covenants and agreements of Purchaser contained in this Agreement shall survive the Closing until
    the General Survival Date, except that (i) the representations and warranties of Purchaser set forth in Sections 5.1, 5.2
    and 5.3 shall survive until the Fundamental Representation Survival Date and (ii) the covenants and agreements of Purchaser
    to be performed in whole or in part after the Closing shall survive for twelve (12) months after they are fully performed
    (other than those covenants and agreements set forth in Section 6.3 that shall survive for three (3) years after the Closing
    Date).
	 	 	 
	 	c)	Notwithstanding
    the foregoing Sections 8.3a) and 8.3b), if an Indemnified Person delivers to an Indemnitor a Claim Notice in respect of a
    representation, warranty, covenant or agreement prior to the expiration of the applicable survival period, then the applicable
    representation, warranty, covenant or agreement will survive until, but only for purposes of, the resolution of the matter
    covered by such Claim Notice.

 

	9.	Purchaser’s
    Guarantor
	 	 
	9.1.1	Purchaser’s
    Guarantor hereby irrevocably guarantees to Seller the obligation of the Company to pay the Guaranteed Payment Amount in accordance
    with Section 2.5.2. This guaranty may be enforced for money damages only. In no event shall Purchaser’s Guarantor’s
    aggregate liability under this Section 9 exceed an amount equal to the Guaranteed Payment Amount minus any portion of the
    Guaranteed Payment Amount previously paid to Seller. Purchaser’s Guarantor hereby waives any rights it may have to require
    Seller to proceed first against or claim payment from the Company.
	 	 
	9.1.2	The
    guaranty under this Section 9 shall terminate and be of no further force or effect upon the payment in full of the Guaranteed
    Payment Amount to Seller.
	 	 
	10.	Tax
    Matters

 

	10.1	Straddle
    Period

 

In
the case of any Straddle Period, (a) the amount of any sales or use Tax, value-added Tax, employment Tax, withholding Tax and
any Tax based on or measured by income, profits or receipts, in each case, imposed upon or payable by or with respect to the Company
or any of its Subsidiaries for any Pre-Closing Straddle Period shall be determined based on an interim closing of the books of
each of the Company or any of its Subsidiaries as of the end of the Closing Date (and, for such purpose, the taxable period of
any partnership or other pass-through entity in which the Company or any of its Subsidiaries holds a beneficial interest shall
be deemed to terminate at such time) and (b) the amount of any Taxes other than a sales or use Tax, value-added Tax, employment
Tax, withholding Tax or Tax based on or measured by income, profits or receipts Taxes of the Company or any of its Subsidiaries
for any Pre-Closing Straddle Period shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a
fraction the numerator of which is the number of days in the taxable period ending on and including the Closing Date and the denominator
of which is the total number of days in such Pre-Closing Straddle Period; provided, however, that exemptions, allowances
or deductions that are calculated on an annual basis, such as the deduction for depreciation, shall be apportioned on a pro rata
per-diem basis.

 

    	 	27	 

    	 	 	 

    

 

	10.2	Cooperation
    on Tax Matters
	 	 
	10.2.1	Purchaser
    and Seller shall furnish or cause to be furnished to each other, as promptly as practicable, such information and assistance
    relating to the Business as conducted by the Company or any of its Subsidiaries as is reasonably necessary for the preparation
    and filing of any Tax Return, claim for refund or other required or optional filings relating to Tax matters, for the preparation
    of any Tax audit, for the preparation of any Tax protest or for the prosecution or defense of any Proceeding relating to Tax
    matters (including, for the avoidance of doubt, any Tax Proceeding controlled by the Seller under Section 10.4).
	 	 
	10.2.2	Notwithstanding
    anything to the contrary in this Agreement, each of Seller and Purchaser shall retain, and shall cause the Company and each
    of its Subsidiaries to retain, all Tax Returns, work papers and all material records or other documents in its possession
    (or in the possession of its Affiliates) relating to Tax matters of the Company and each of its Subsidiaries for any taxable
    period that includes the Closing Date and for all prior taxable periods until the later of (a) the expiration of the statute
    of limitations of the taxable periods to which such Tax Returns and other documents relate, plus any extensions, and (b) six
    years following the due date for such Tax Returns plus any extensions. After such time, before Seller or Purchaser disposes
    of any such documents in its possession (or in the possession of its Affiliates), the other Party shall be given an opportunity,
    after ninety (90) days’ prior written notice, to remove and to retain all or any part of such documents as such other
    Party may elect (at such other Party’s expense). Any information obtained under this Section 10.2.2 shall be kept confidential,
    except as may be otherwise necessary in connection with the filing of Tax Returns or claims for refund or in conducting an
    audit or other proceeding. In addition, from and after the Closing Date, Purchaser shall provide such access to Seller (after
    reasonably detailed prior notice and during normal business hours) to the books, records, documents and other information
    relating to the Business as conducted by the Company or any of its Subsidiaries as is reasonably necessary for Seller to properly
    prepare for, file, prove, answer, prosecute and/or defend any Tax Return, claim, filing, Tax audit, Tax protest, Proceeding
    or answer.
	 	 
	10.2.3	Seller
    and Purchaser shall make themselves (and the employees of the Company and each of its Subsidiaries and the Purchaser, respectively)
    reasonably available on a mutually convenient basis to provide explanations of any documents or information provided under
    this Section 10.2.
	 	 
	10.3	Tax
    Returns

 

Seller
shall, or shall cause the Company to, prepare and file or otherwise furnish in proper form to the appropriate Tax Authority in
a timely manner all Tax Returns relating to the Company and each of its Subsidiaries that relate to any Pre-Closing Tax Period
that are required to be filed on or before the Closing Date, and Purchaser shall, or shall cause the Company to, prepare and file
or otherwise furnish in proper form to the appropriate Tax Authority in a timely manner all Tax Returns relating to the Company
and each of its Subsidiaries for all Straddle Periods and for all Tax Returns due after the Closing Date; provided, however,
that each such preparing Party shall (a) give the other Party, in the case of Income Tax Returns, forty five (45) days and, in
the case of all other Tax Returns, seven (7) Business Days, in which to review a draft of such Tax Returns before filing and (b)
in each case, shall work in good faith with the other Party to address any concerns of such Party related to such Tax Returns,
provided, that Purchaser shall not be required to provide to Seller any Tax Returns filed after the Closing Date that do
not relate to a Pre-Closing Tax Period or Straddle Period. Tax Returns of the Company and each of its Subsidiaries for any Pre-Closing
Tax Period or Straddle Period will be prepared in a manner consistent with past practices except as required by applicable Law.
Any disputes regarding the preparation of Tax Returns of the Company or any of its Subsidiaries pursuant to this Section 10.3
shall be resolved by the Neutral Expert in accordance with requirements and the procedures set forth in Section 2.4b) (mutatis
mutandis). Seller shall be responsible for any Taxes shown as due and payable on any Tax Return for any Pre-Closing Tax Period
and for its portion of any Pre-Closing Straddle Period as set forth in Section 10.1 of this Agreement.

 

    	 	28	 

    	 	 	 

    

 

	10.4	Contests
	 	 
	10.4.1	Seller
    and its Affiliates, on the one hand, and Purchaser and its Affiliates, on the other hand (the “Recipient”),
    shall notify the other Parties in writing within ten (10) Business Days of receipt by the Recipient of written notice of any
    pending or threatened, adjustments, assessments, examinations or Proceedings (whether judicial or administrative) which may
    affect the Tax Liability of such other Party or may give rise to an indemnification payment under Section 7.1a) or Section
    7.1b) by such other Party (a “Tax Proceeding”); provided, that failure to give such notice (or the
    provision of notice that is not in sufficient detail to notify the other Party of the nature of the Tax Proceeding) shall
    not void any indemnification obligation hereunder except to the extent such failure to give proper notice materially and adversely
    affects the other Party’s right to participate in and contest the Tax Proceeding.
	 	 
	10.4.2	Notwithstanding
    any other provision of this Agreement, Seller shall have the sole right in its discretion to elect to control and defend,
    at Seller’s expense, any Tax Proceeding instituted by or against a Tax Authority in respect of any Pre-Closing Tax Periods
    (including any settlement or disposition thereof) if Purchaser could make a claim for indemnification with respect to such
    Tax Proceeding; provided, that (a) Purchaser shall have the right to participate in the defense thereof and to employ
    counsel, at its own expense, separate from the counsel employed by Seller, and (b) Seller shall keep Purchaser informed regarding
    the progress and substantive aspects of such Tax Proceeding, promptly deliver to Purchaser copies of any correspondence or
    other documents received from or submitted to the Tax Authority in connection with such Tax Proceeding and, upon the reasonable
    request of Purchaser, shall consult with Purchaser from time to time regarding the conduct of such Tax Proceeding; provided,
    further, that Seller shall not consent to the entry of any judgment, or settle, compromise or discharge any such Tax
    Proceeding without the prior written consent of Purchaser (which shall not be unreasonably withheld, conditioned or delayed).
    After the Closing, Purchaser shall promptly notify Seller in writing upon receiving notice from any Tax Authority of the commencement
    of any such Tax Proceeding; provided, that the failure of Purchaser to give prompt written notice shall not relieve
    Seller from its obligations under this Agreement (including its obligations with respect to any Seller Taxes) except to the
    extent Seller is actually and materially prejudiced thereby. If Seller wishes to control such Tax Proceeding in accordance
    with this Section 10.4, Seller shall notify Purchaser in writing within seven (7) days after receiving written notice of the
    commencement of such Tax Proceeding from Purchaser, of Seller’s agreement to control and defend such Tax Proceeding
    at Seller’s expense. If Seller provides such written notice, Purchaser shall take all commercially reasonable actions
    necessary to enable Seller to exercise its control rights as set forth in this Section 10.4. If Seller fails to deliver such
    notice to Purchaser within such seven (7) day period, (x) Purchaser shall be entitled to control and defend such Tax Proceeding,
    (y) Seller shall pay all third-party costs (including reasonable attorneys and third-party advisor fees) reasonably incurred
    by Purchaser and its Affiliates to defend such Tax Proceeding, and (z) Purchaser shall keep Seller reasonably informed regarding
    the progress and substantive aspects of such Tax Proceeding, promptly deliver to Seller copies of any material correspondence
    or other material documents received from or submitted to the Tax Authority in connection with such Tax Proceeding and, upon
    the reasonable request of Seller, shall consult with Seller from time to time regarding the conduct of such Tax Proceeding;
    provided, further, that Purchaser shall not consent to the entry of any judgment, or settle, compromise or discharge
    any such Tax Proceeding without the prior written consent of Seller (which shall not be unreasonably withheld, conditioned
    or delayed). Notwithstanding any provision of this Agreement to the contrary, to the extent that a provision of this Section
    10.4 directly conflicts with any provision of Section 7, this Section 10.4 shall govern.

 

    	 	29	 

    	 	 	 

    

 

	10.5	Transfer
    Taxes

 

Notwithstanding
any other provision of this Agreement, all Taxes with respect to any excise, sales, use, transfer (including real property transfer),
stamp, documentary, filing, recordation and any other Taxes arising directly or indirectly from the transactions contemplated
by this Agreement (“Transfer Taxes”) shall be borne by Seller. Each of the Parties shall (a) file any Tax Returns
required to be filed by it with respect to any such Transfer Taxes and (b) cooperate as reasonably requested by the other Parties
and (c) keep the other Parties reasonably informed in relation to any Transfer Taxes.

 

	10.6	Purchase
    Price Adjustment

 

Except
to the extent otherwise required by applicable Law, any payment made pursuant to this Section 10 or Section 7 shall be treated
as an adjustment to the Initial Purchase Price for all Tax purposes. Each of Purchaser and Seller shall notify the other Party
if such Party or any of its Affiliates receives notice that any Tax Authority proposes to treat any indemnity payment under this
Agreement as other than an adjustment to the Initial Purchase Price for Tax purposes.

 

	10.7	Tax
    Sharing Contracts

 

All
Tax-sharing or similar Contracts (“Tax Sharing Contracts”) with respect to or involving the Company or any
of its Subsidiaries shall be terminated as of the Closing Date, and, after the Closing Date, none of the Company or any of its
Subsidiaries shall be bound thereby or have any Liability thereunder.

 

	10.8	Section
    338(g) Election

 

Purchaser
shall have the right in its sole discretion to make, or to cause its Affiliates to make, an election under Section 338(g) of the
Code (“Section 338(g) Election”) with respect to the Company. Purchaser shall be liable for, and shall reimburse
Seller for, any increased Tax which is due by Seller solely attributable to or solely resulting from the Section 338(g) Election
and which, but for such election, would not otherwise be payable by Seller.

 

	11.	Miscellaneous
	 	 
	11.1	Interpretation
	 	 
	11.1.1	The
    table of contents, headings and sub-headings are for convenience purposes only and shall not affect the interpretation of
    this Agreement.
	 	 
	11.1.2	Unless
    otherwise expressly set forth in this Agreement, a reference to

 

	 	a)	a
    “Section”, or “Schedule” is a reference to a section or schedule of this Agreement;
	 	 	 
	 	b)	a
    “document” or “agreement” includes that document or agreement as amended, supplemented, novated, replaced,
    waived or modified in any other way from time to time;
	 	 	 
	 	c)	the
    words “hereby”, “herein”, “hereof” or “hereunder” are a reference to this
    Agreement in whole and not a specific provision of this Agreement;
	 	 	 
	 	d)	the
    words “including”, “includes”, “in particular” or “such as” shall be deemed
    to be followed by the phrase “without limitation” and shall not be construed to express limitation in any way;

 

    	 	30	 

    	 	 	 

    

 

	 	e)	terms
    defined in the singular have a comparable meaning when used in the plural, and vice versa;
	 	 	 
	 	f)	a
    “Person” or “party” is a reference to a natural person or a legal entity, as applicable;
	 	 	 
	 	g)	a
    “provision of law” or “Law” includes that provision as amended, consolidated, supplemented, re-enacted
    or replaced from time to time and includes any subordinate legislation and its amendments;
	 	 	 
	 	h)	references
    herein to any gender includes each other gender; and
	 	 	 
	 	i)	“writing”
    is a reference to written form unless otherwise expressly set forth in this Agreement.

 

	11.1.3	This
    Agreement is made in the English language. The English language version of this Agreement shall prevail over any translation
    of this Agreement.
	 	 
	11.1.4	Unless
    otherwise indicated, the definition of a term in the singular shall include the definition of such term in the plural and
    vice versa.
	 	 
	11.1.5	All
    words used in this Agreement shall be construed to be of such gender or number as the circumstances require.
	 	 
	11.2	Third-party
    beneficiary

 

Nothing
in this Agreement, express or implied, is intended to confer upon any Person other than Purchaser, Seller, the Indemnified Persons
(who are express and intended third party beneficiaries of Sections 7 and 8) and their respective successors, legal representatives
and permitted assigns, any rights or remedies under or by reason of this Agreement.

 

	11.3	Public
    announcements, access to information
	 	 
	11.3.1	Subject
    to mandatory disclosures under applicable Law, any rule or regulation of any securities exchange or listing agreement, no
    Party shall release any announcement relating to this Agreement or the transactions contemplated hereby unless the form and
    content of such announcement has been submitted to, and agreed to by, the other Parties hereto.
	 	 
	11.3.2	Promptly
    after this Agreement has been signed by all Parties, Purchaser’s Guarantor may submit a filing to a Government Entity
    (including any national securities exchange) to publicly disclose the fact that the Parties have entered into an agreement
    pertaining to the sale and transfer of the Shares in accordance with applicable Law, rules and regulations of such securities
    exchange, provided, that Purchaser’s Guarantor shall consult with Seller prior to making such disclosure, and, to the
    extent reasonably practicable under the circumstances, give Seller the opportunity to review and comment upon any such disclosure
    prior to making any filings with any such Government Entity.
	 	 
	11.4	Notices
    and communication
	 	 
	11.4.1	Communication
    in writing

 

Any
communication to be made by one Party to another under or in connection with this Agreement shall be made in writing and delivered
by hand, by registered mail, by courier or by fax or email.

 

    	 	31	 

    	 	 	 

    

 

	11.4.2	Addresses

 

Any
communication under or in connection with this Agreement shall be made to the relevant Party at the address, fax number or email
address and to the attention of the department or individual set out below.

 

The
initial address, fax number, department or individual specified by each Party are set out below:

 

	 	a)	If
    to Seller:

 

	 	To:	Maruho
    Co., Ltd.
	 	 	 
	 	Attention:	[***]
	 	 	 
	 	Address:	[***]
	 	 	 
	 	Fax:	[***]
	 	 	 
	 	Email:	[***]

 

With
a courtesy copy, which shall not constitute notice, to:

 

	 	To:	Baker
    & McKenzie LLP
	 	 	 
	 	Attention:	[***]
	 	 	 
	 	Address:	[***]
	 	 	 
	 	Fax:	[***]
	 	 	 
	 	Email	[***]

 

		b)	If
                                         to Purchaser and Purchaser’s Guarantor:

 

	 	To:	Biofrontera
    Newderm LLC
	 	 	 
	 	Address:	c/o
                                         Biofrontera AG

         

        Hemmelrather
        Weg 201

         

        D-51377
        Leverkusen, Germany

	 	 	 
	 	Attention:	[***]
	 	 	 
	 	Fax:	[***]
	 	 	 
	 	Email	[***]

 

With
a courtesy copy, which shall not constitute notice, to:

 

	 	To:	McGuireWoods
    LLP
	 	 	 
	 	Attention:	1251
    Avenue of the Americas, 20th Floor, New York, NY 10020-1104
	 	 	 
	 	Address:	[***]
	 	 	 
	 	Fax:	[***]
	 	 	 
	 	Email	[***]

        

        

 

    	 	32	 

    	 	 	 

    

 

		c)	If
                                         to the Company:

 

	 	To:	Cutanea
    Life Sciences, Inc.
	 	 	 
	 	Address:	c/o
                                         Biofrontera AG

         

        Hemmelrather
        Weg 201

         

        D-51377
        Leverkusen, Germany

	 	 	 
	 	Attention:	[***]
	 	 	 
	 	Fax:	[***]
	 	 	 
	 	Email	[***]

 

	11.4.3	Change
    of contact information

 

Each
Party shall notify the other Party by notice served in accordance with Section 11.4.2 if the initial or notified contact information
is no longer an appropriate contact information for the service of notices. Until such notification, the contact information as
determined hitherto shall be relevant.

 

	11.4.4	Delivery

 

Any
communication to be made by one Party to another under or in connection with this Agreement shall be effective upon receipt, which
shall be deemed to have been given:

 

	 	a)	at
    time of delivery if delivered by hand, registered mail or courier;
	 	 	 
	 	b)	at
    transmission if delivered by fax, provided that the Person sending the fax shall have received a transmission receipt confirming
    a successful transmission thereof; or
	 	 	 
	 	c)	at
    transmission if delivered by email, provided that transmission shall not be effective if the Person sending the email receives
    a notification that such transmission was unsuccessful.

 

	11.5	Language

 

Any
communication to be made by one Party to another under or in connection with this Agreement shall be in English.

 

	11.6	Costs
    and expenses
	 	 
	11.6.1	General

 

Each
Party shall bear its own costs and expenses in connection with the preparation, negotiation, execution and performance of this
Agreement and the transactions contemplated herein unless otherwise expressly set forth in this Agreement.

 

	11.6.2	Other
    fees and public charges

 

Any
other sales or transfer taxes, stamp duties, fees, registration duties or other charges in connection with any regulatory requirements
and other similar charges and costs payable in connection with the execution of this Agreement and the performance of the transactions
contemplated herein shall be borne by the Seller.

 

	11.7	Intentionally
    Omitted.

 

    	 	33	 

    	 	 	 

    

 

	11.8	Entire
    Agreement

 

This
Agreement constitutes the entire agreement among and between the Parties with respect to the subject matter hereof and shall replace
any prior oral or written negotiations and understandings between the Parties with respect to the subject matter hereof.

 

	11.9	Amendments

 

Unless
otherwise expressly set forth in this Agreement, any provision of this Agreement (including this Section 11.9) may be amended
or waived only if such amendment or waiver is effected by written instrument executed by the Parties and Purchaser’s Guarantor
explicitly referring to this Agreement.

 

	11.10	Remedies
    and waivers

 

No
failure to exercise or delay in exercising any right or remedy under this Agreement by any Party shall constitute a waiver. Any
single or partial exercise of any right or remedy under this Agreement by any Party shall not prevent any further or other exercise
thereof.

 

	11.11	Assignment

 

No
Party is entitled to assign, delegate or otherwise transfer any rights, claims or obligations under this Agreement, in whole or
in part, without the prior written consent of each other Party.

 

	11.12	No
    set-off or retention

 

Except
as set forth in Section 2.4(c), no Party shall have the right to set off any amounts due and payable under this Agreement against
any other amounts due and payable under this Agreement without the prior written consent of the other Party.

 

	11.13	Severability

 

Should
any individual provision of this Agreement be or become wholly or partially invalid, or should there prove to be an omission herein,
this shall not affect the validity of the remaining provisions. In the place of the invalid or impracticable provision or in order
to fill the gap, the Parties undertake to agree on an appropriate provision that, to the extent legally permissible, comes closest
to what the Parties intended or would have intended in accordance with the purpose of this Agreement had they considered the matter
at the outset. This shall also apply if the invalidity of a provision results from a measure of performance or time set as a standard
in this Agreement. In such cases, a legally valid measure of performance or time which comes as close as possible to that originally
agreed shall be deemed to be agreed upon instead.

 

	11.14	Counterparts

 

This
Agreement may be executed in two or more counterparts (any of which may be delivered by facsimile or other electronic transmission),
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

	11.15	Applicable
    law

 

This
Agreement is governed by and construed in accordance with the laws of New York (excluding its conflict of laws rules).

 

    	 	34	 

    	 	 	 

    

 

	11.16	Arbitration
	 	 
	11.16.1	Any
    dispute arising from or in connection with this Agreement or the validity thereof or its consummation shall be finally settled
    in accordance with the arbitration rules of International Chamber of Commerce (ICC) – in the form as applicable at the
    time of filing an arbitration claim – without recourse to the ordinary courts of law. The arbitral tribunal shall consist
    of three arbitrators appointed in accordance with such rules, fluent in the English language. The venue of the arbitration
    shall be Washington D.C., USA. The International Chamber of Commerce (ICC) shall determine the applicable form of the arbitration
    rules. The language of the arbitral proceedings shall be English. The arbitration shall be governed by the substantive laws
    of the State of New York. The arbitrators shall have the power to grant any remedy or relief that they deem just and equitable,
    including but not limited to injunctive relief, whether interim and/or final, and any provisional measures ordered by the
    arbitrators may be enforced by any court of competent jurisdiction. Notwithstanding the foregoing, nothing in this Agreement
    shall prevent any party from seeking any provisional/preliminary relief (including, but not limited to, injunctions, attachments
    or other such orders in aid arbitration) from any court of competent jurisdiction, and any such application to a court for
    provisional/preliminary relief shall not be deemed incompatible with the agreement to arbitrate or a waiver of the right to
    arbitrate. Any award rendered by the arbitrators shall be final and binding on the parties, and each party hereto waives to
    the fullest extent permitted by Law any right it may otherwise have under the laws of any jurisdiction to any form of appeal
    of, or collateral attack against, such award. Judgment upon any awards rendered by the arbitrators may be entered in any court
    having jurisdiction thereof, including any court having jurisdiction over any of the parties or their assets. Whether to consolidate
    two or more arbitration proceedings shall be subject to the final approval of the arbitration panel constituted in the arbitration
    that is filed first. The parties shall be obligated to pay the attorneys’ fees and costs and all other costs of arbitration
    in accordance with the respective proportion of the total liability or the amount of losses in the dispute, as determined
    by the arbitrators.
	 	 
	11.16.2	In
    the event mandatory applicable Law requires any matter arising from or in connection with this Agreement and its consummation
    to be decided upon by a court of law, each of the Parties (a) submits to the exclusive general jurisdiction of United States
    District Court for the Southern District of New York (the “Chosen Court”) and any federal appellate court
    therefrom located within the State of New York (or, only if the Chosen Court declines to accept jurisdiction over a particular
    matter, any state or federal court within the State of New York) in any Proceeding arising out of or relating to this Agreement,
    (b) agrees that all claims in respect of such Proceeding may be heard and determined in any such court and (c) agrees not
    to bring any Proceeding arising out of or relating to this Agreement in any other court. Each of the Parties waives any defense
    of inconvenient forum to the maintenance of any Proceeding so brought and waives any bond, surety or other security that might
    be required of any other Party with respect thereto. Each Party agrees that service of summons and complaint or any other
    process that might be served in any Proceeding may be made on such Party by sending or delivering a copy of the process to
    the Party to be served at the address of the Party and in the manner provided for the giving of notices in Section 11.4. Nothing
    in this Section 11.16.2, however, shall affect the right of any Party to serve legal process in any other manner permitted
    by Law. Each Party agrees that a final, non-appealable judgment in any Proceeding so brought shall be conclusive and may be
    enforced by suit on the judgment or in any other manner provided by Law. In furtherance of the foregoing, each of the Parties
    hereby waives personal service of process upon it and consents that a service of process in connection with a Proceeding may
    be made by certified or registered mail, return receipt requested, directed to the Seller at its address last specified for
    notices under this Agreement, and service so made shall be deemed completed five (5) days after the same shall have been so
    mailed.

 

    	 	35	 

    	 	 	 

    

 

	11.17	Waiver
    of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
    DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
    TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE, WHETHER
    NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY HEREBY FURTHER AGREES AND
    CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE
    PARTIES MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF
    THEIR RIGHT TO TRIAL BY JURY.
	 	 
	12.	Definitions.
    As used in this Agreement:
	 	 
	12.1	“2022
    Earnout Payment Date” has the meaning set forth in Section 2.5.2a).
	 	 
	12.2	“2022
    Guaranteed Payment Amount” has the meaning set forth in Section 2.5.2a).
	 	 
	12.3	“2022
    Start-Up Cost Amount” has the meaning set forth in Section 2.5.2a).
	 	 
	12.4	“2023
    Earnout Payment Date” has the meaning set forth in Section 2.5.2b).
	 	 
	12.5	“Accounts
    Payable” means the accounts payable of the Company and its Subsidiaries to third parties as reflected in their financial
    statements that arise from bona fide transactions in the Ordinary Course of Business.
	 	 
	12.6	“Accounts
    Receivable” means the accounts receivable of the Company and its Subsidiaries from third parties as reflected in
    their financial statements that are valid receivables subject to no setoffs or counterclaims and are current and collectible
    (within 90 days after the date on which it first became due and payable), net of the applicable reserve for bad debts on the
    balance sheet, in each case that arise from bona fide transactions in the Ordinary Course of Business.
	 	 
	12.7	“Affiliate”
     means, with respect to any person, any other Person directly or indirectly Controlling, Controlled by, or under
    direct or indirect common Control with, such Person. For the avoidance of doubt, the Company shall be an “Affiliate”
    of Seller for all periods at or prior to the Closing and an “Affiliate” of Purchaser for all periods following
    the Closing.
	 	 
	12.8	“Aggregate
    Earnout Amount” has the meaning set forth in Section 2.5.3b).
	 	 
	12.9	“Aggregate
    Product Profit Amount” has the meaning set forth in Section 2.5.3b).
	 	 
	12.10	“Agreement”
    has the meaning set forth in the Preamble.
	 	 
	12.11	“Aktipak”
    has the meaning set forth in the Preamble.
	 	 
	12.12	“Annual
    Earnout Amount” has the meaning set forth in Section 2.5.3a).
	 	 
	12.13	“Annual
    Product Profit Amount” has the meaning set forth in Section 2.5.3a).
	 	 
	12.14	“A/R
    Adjustment Amount” means, as of the specified date of calculation, the sum of the (i) Accounts Receivable minus
    (ii) Accounts Payable.

 

    	 	36	 

    	 	 	 

    

 

	12.15	“Benefit
    Plan” means each “employee benefit plan” as defined in Section 3(3) of ERISA, whether or not written
    or unwritten or subject to ERISA, as well as each employee or director benefit or compensation plan, arrangement or agreement
    (whether written or unwritten) and each employment, consulting, bonus, supplemental income, collective bargaining, multiemployer,
    incentive or deferred compensation, vacation, stock purchase, stock option or other equity-based, severance, termination,
    retention, change-in-control, profit-sharing, fringe benefit, workers’ compensation, voluntary employees’ beneficiary
    association, health, welfare, accident, sickness, death benefit, hospitalization, insurance, personnel policy, disability
    benefit or other similar plan, program, Contract, arrangement or commitment (whether written or unwritten) for the benefit
    of any current, former or retired employee, consultant, independent contractor, other service provider or director of the
    Company, any of its Subsidiaries or any of its ERISA Affiliates entered into, maintained or contributed to by the Company,
    any of its Subsidiaries or any of its ERISA Affiliates or to which the Company or any of its Subsidiaries or ERISA Affiliates
    is obligated to contribute.
	 	 
	12.16	“BM
    Committee” has the meaning set forth in Section 6.4.
	 	 
	12.17	“Books
    and Records” means all books, financial ledgers, files, reports, plans, records, manuals and other materials, and
    all advertising materials, catalogs, market surveys, market or business research, research and development files, business
    plans, correspondences, mailing lists, customer or client lists, vendor or supplier lists, customer or client leads, customer
    or client complaints and inquiries, maintenance files, price lists, distribution lists, media materials, financial and accounting
    information and records, copies of Tax Returns, sales order files, and litigation files and other information, in each case,
    of or maintained by the Company or any of its Subsidiaries, whether in written, printed, electronic or computer printout form
    and regardless of where stored.
	 	 
	12.18	“Business”
    has the meaning set forth in the Preamble.
	 	 
	12.19	“Business
    and Marketing Plan” has the meaning set forth in Section 6.4.2.
	 	 
	12.20	“Business
    Day” means any day other than a Saturday, a Sunday or a day on which banks in Frankfurt am Main, Germany, Osaka,
    Japan, or New York, New York, U.S.A, are authorized or obligated by Law or executive order to close.
	 	 
	12.21	“Cash”
    means all cash and cash equivalents of the Company, including marketable securities, short term investments and all checks,
    transfers and funds written, made or payable to or for the benefit of the Company that have not yet been received or which
    have not cleared calculated in accordance with GAAP and the practices and methodologies of the Company used in the preparation
    of the Financial Statements.
	 	 
	12.22	“Cash
    Amount” means, as of a specific date, the amount of Cash as of 11:59 PM on the Business Day immediately prior to
    such date.
	 	 
	12.23	“Change
    of Control” means (i) the sale or transfer of 50% or more of the shares of voting stock of the Company to any Person
    other than Purchaser or any of its Affiliates, (ii) the merger, consolidation or other business combination between the Company
    and another Person in which, immediately following the transaction, Purchaser and its Affiliates own less than 50% of the
    shares of voting stock of the Company, (iii) a sale of all or substantially all of the assets of the of the Company or the
    Purchaser (including, if such a transaction would constitute a sale of all or substantially all of the Company’s assets,
    in connection with the sale or transfer of Equity Interests of, or a merger, consolidation or other business combination involving,
    or the sale of assets of, any one or more of Purchaser’s Subsidiaries), in each case, in one transaction or in a series
    of related transactions.
	 	 
	12.24	“Chosen
    Court” has the meaning set forth in Section 11.16.2.
	 	 
	12.25	“Claim
    Notice” has the meaning set forth in Section 7.4.1.

 

    	 	37	 

    	 	 	 

    

 

	12.26	“Closing”
    has the meaning set forth in Section 3.1.
	 	 
	12.27	“Closing
    Cash Amount” means the amount of Cash as of 11:59 PM on the Business Day immediately prior to the Closing.
	 	 
	12.28	“Closing
    Date” has the meaning set forth in Section 3.1.
	 	 
	12.29	 “Code”
    means the Internal Revenue Code of 1986, as amended.
	 	 
	12.30	“Company”
    has the meaning set forth in the Preamble.
	 	 
	12.31	“Competitive
    Business” has the meaning set forth in Section 6.6.1.
	 	 
	12.32	“Confidential
    Information” has the meaning set forth in Section 6.56.5.
	 	 
	12.33	“Consent”
    means any consent, approval, waiver, clearance, authorization, notice or filing.
	 	 
	12.34	“Contracts”
    means all agreements, contracts, leases and subleases, licenses, arrangements and commitments, whether written or oral.
	 	 
	12.35	“Control”
    when used with respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly,
    whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and
    “controlled” have meanings correlative of the foregoing.
	 	 
	12.36	“Development
    Program Assets” has the meaning set forth in Section 6.7.
	 	 
	12.37	“Dispute
    Period” has the meaning set forth in Section 2.5.3a).
	 	 
	12.38	 “Disputed
    Item” has the meaning set forth in Section 2.5.3a).
	 	 
	12.39	“Earnout
    Amount” has the meaning set forth in Section 2.5.1b).
	 	 
	12.40	“Earnout
    Calculation” has the meaning set forth in Section 2.5.3a).
	 	 
	12.41	“Employees”
    means all current employees of the Company and each Subsidiary.
	 	 
	12.42	“Encumbrance”
    means any lien, pledge, charge, assessment, claim, encumbrance, security interest, attachment, levy, option, put or call,
    mortgage, deed of trust, easement, right-of-way, covenant, restriction, lease, license, reservation of rights, right of first
    refusal or offer, right of setoff, proxy, power-of-attorney, voting agreement or other restriction or third party right of
    any kind.
	 	 
	12.43	“Environmental
    Claim” means any Proceeding by or from any Person alleging Liability of whatever kind or nature (including liability
    or responsibility for the costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation,
    natural resources damages, property damages, personal injuries, medical monitoring, penalties, contribution, indemnification
    and injunctive relief) arising out of, based on or resulting from (a) the presence, Release of, or exposure to, any Hazardous
    Materials or (b) any actual or alleged non-compliance with any Environmental Law or term or condition of any Environmental
    Permit.
	 	 
	12.44	“Environmental
    Law” means any applicable Law, and any Order or Contract with any Government Entity (a) relating to pollution (or
    the cleanup thereof) or the protection of natural resources, endangered or threatened species, human health or safety, or
    the environment (including ambient air, soil, surface water or groundwater, or subsurface strata) or (b) concerning the presence
    of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse, treatment, generation,
    discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.

 

    	 	38	 

    	 	 	 

    

 

	12.45	“Environmental
    Permit” means any Permit, Consent, closure, exemption, decision or other action required under or issued, granted,
    given, authorized by or made pursuant to Environmental Law.
	 	 
	12.46	“Equity
    Interest” means any capital stock, partnership, member or similar interest in any Person, any option, warrant, right
    (including any preemptive right), or security (including any debt security) convertible, exchangeable or exercisable therefor
    or containing any equity appreciation features, profit participation features, equity appreciation rights or phantom equity
    features or similar features, plans or rights.
	 	 
	12.47	“ERISA”
    means the Employee Retirement Income Security Act of 1974, as amended.
	 	 
	12.48	“ERISA
    Affiliate” means any entity that is a member of (a) a controlled group of corporations (as defined in Section 414(b)
    of the Code), (b) a group of trades or businesses under common control (as defined in Section 414(c) of the Code), (c) an
    affiliated service group (as defined under Section 414(m) of the Code or the regulations under Section 414(o) of the Code)
    or (d) a “controlled group” within the meaning of Section 4001 of ERISA, any of which includes the Company or
    any of its Affiliates.
	 	 
	12.49	“Estimated
    Cash Amount” means, as of a specific date, the Company’s good faith estimate of the Cash Amount prepared in
    accordance with the definition of the Cash Amount as of such date.
	 	 
	12.50	“Estimated
    Closing Cash Amount” means the Company’s good faith estimate of the Closing Cash Amount prepared in accordance
    with the definition of the Closing Cash Amount.
	 	 
	12.51	“Estimated
    Pre-Closing Liability Adjustment Amount” means an amount, which may be a positive or a negative, equal to the sum
    of (a) the Estimated Pre-Closing Liability Amount minus (b) the Estimated Closing Cash Amount.
	 	 
	12.52	“Estimated
    Pre-Closing Liability Amount” means the Company’s good faith estimate of the Pre-Closing Liability Amount
    prepared in accordance with the definition of Pre-Closing Liability Amount.
	 	 
	12.53	“Estimated
    Restructuring Costs” has the meaning set forth in Section 6.3.3.
	 	 
	12.54	“FDA”
    means the United States Food and Drug Administration.
	 	 
	12.55	“FDA
    Law” means any binding Law relating to any FDA regulated product, including but not limited to the Food, Drug, and
    Cosmetic Act, 21 U.S.C. § 301 et seq. and its implementing regulations.
	 	 
	12.56	“Ferrer
    License and Supply Agreement” shall mean that certain License and Supply Agreement, dated March 10, 2014, by and
    between Medimetriks Pharmaceuticals, Inc. (as predecessor in interest to the Company) and Ferrer Internacional, S.A., as amended
    from time to time, and all agreements between the Company and Ferrer International S.A. related thereto, incorporated therein
    or entered in connection therewith.
	 	 
	12.57	“Final
    Working Capital Adjustment Amount” means an amount equal to the sum of (i) the absolute value of the sum of (a)
    Net Operating Costs, plus (b) the A/R Adjustment Amount if such amount is a negative number, minus (ii) the
    sum of the Total Working Capital Amount, plus (iii) the A/R Adjustment Amount, if such amount is a positive number,
    in each case calculated as of the last day of the Working Capital Period.

 

    	 	39	 

    	 	 	 

    

 

	12.58	“Financial
    Statements” has the meaning set forth in Section 4.4.
	 	 
	12.59	“Fundamental
    Representation Survival Date” has the meaning set forth in Section 8.3a).
	 	 
	12.60	“General
    Survival Date” has the meaning set forth in Section 8.3a).
	 	 
	12.61	“Government
    Entity” means any (a) international, multinational, federal, state, regional, local or foreign government, governmental
    or public department, central bank, court, tribunal, arbitrator, commission, board, bureau, official, agency, administrative
    or regulatory body, licensing board or other governmental entity, (b) quasi-governmental or private entity exercising any
    regulatory, expropriation or taxing authority under or for the account of any of the foregoing, (c) self-regulatory organization
    or securities exchange and (d) subdivision, agent, commission, board, or authority of any of the foregoing.
	 	 
	12.62	“Guaranteed
    Payment Amount” has the meaning set forth in Section 2.5.2.
	 	 
	12.63	“Hazardous
    Materials” means (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
    mineral or gas, in each case, whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words
    of similar import or regulatory effect under Environmental Laws and (b) any petroleum or petroleum-derived products, radon,
    radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation
    and polychlorinated biphenyls.
	 	 
	12.64	“Income
    Tax” means any Tax that is based on, or computed with respect to, net income or earnings, gross income or earnings,
    capital or, net worth (and any franchise Tax or other Tax in connection with doing business imposed in lieu thereof) and any
    related penalties, interest and additions to Tax.
	 	 
	12.65	“Income
    Tax Return” means any Tax Return relating to Income Taxes.
	 	 
	12.66	“Indebtedness”
    means, as of any date of determination (without duplication) with respect to any Person, any (a) loans, credit lines or other
    obligations of such Person relating to indebtedness for borrowed money, (b) obligations or Liabilities of such Person evidenced
    by bonds, notes, debentures or similar instruments, (c) obligations or Liabilities of such Person under any letter of credit
    (or reimbursement agreements in respect thereof), banker’s acceptance or similar credit transaction, (d) obligations
    or Liabilities of such Person for the deferred purchase price of property, assets or services (other than current accounts
    payable to suppliers and similar accrued liabilities incurred in the Ordinary Course of Business), (e) obligations or Liabilities
    of such Person in respect of interest under any existing interest rate swap or hedge agreement, (f) deficit, unfunded amount,
    withdrawal liability or other Liability of such Person in respect of any plan, Contract or arrangement (including any pension
    plan or other Benefit Plan), (g) obligations or Liabilities for Taxes, (h) indebtedness of others secured by an Encumbrance
    on any asset of such Person (whether or not such indebtedness is assumed by such Person), (i) to the extent not otherwise
    included, the amount of any indebtedness of any other Person guaranteed by such Person, and (j) in each of the foregoing cases,
    together with all accrued interest thereon and any applicable prepayment, breakage or other premiums, costs, expenses, fees
    and penalties.
	 	 
	12.67	“Indemnified
    Person” has the meaning set forth in Section 7.2.
	 	 
	12.68	“Indemnitor”
    has the meaning set forth in Section 7.2.

 

    	 	40	 

    	 	 	 

    

 

	12.69	“Intellectual
    Property” means: (a) trademarks, service marks, brand names, certification marks, collective marks, d/b/a’s,
    domain names, logos, symbols, trade dress, assumed names, fictitious names, trade names, and other indicia of origin, all
    applications and registrations for the foregoing, and all goodwill associated therewith and symbolized thereby, including
    all renewals of same; (b) inventions and discoveries, whether patentable or not, and all patents, registrations, invention
    disclosures and applications therefor, including divisions, continuations, continuations-in-part and renewal applications,
    and including renewals, extensions and reissues; (c) trade secrets, confidential information and know-how, including processes,
    schematics, business methods, formulae, drawings, prototypes, models, designs, customer lists and supplier lists; (d) published
    and unpublished works of authorship, whether copyrightable or not (including without limitation databases and other compilations
    of information), including mask rights and Software, copyrights therein and thereto, registrations and applications therefor,
    and all renewals, extensions, restorations and reversions thereof; and (e) any other intellectual property or proprietary
    rights.
	 	 
	12.70	“Interim
    Balance Sheet” has the meaning set forth in Section 4.4.
	 	 
	12.71	“Interim
    Costs” has the meaning set forth in Section 6.3.7a).
	 	 
	12.72	“Inventory”
    means all inventory, merchandise, finished goods, work-in-process goods, raw materials, packaging, labels, supplies and other
    personal property for use in sales to other Persons that are maintained, held or stored by or for the Company or any of its
    Subsidiaries.
	 	 
	12.73	“Investments”
    means, with respect to any Person, any direct or indirect purchase or other acquisition by such Person of any obligations,
    Indebtedness or Equity Interests of any Person.
	 	 
	12.74	“IP
    Contract” has the meaning set forth in Section 4.3.2.
	 	 
	12.75	“Law”
    means any (a) law, constitution, treaty, statute, ordinance, rule, regulation, code, principle of common and civil law and
    equity, (b) Order, or (c) policy, practice, guideline or guidance document of any Government Entity which, even if not actually
    having the force of law, is considered by such Government Entity as requiring compliance as if having the force of law.
	 	 
	12.76	“Leased
    Real Property” means the Company’s facilities located at 1500 Liberty Ridge Drive Suite 3000 Wayne, PA 19087,
    United States of America.
	 	 
	12.77	“Liabilities”
    or “Liability” means any and all debts, liabilities, commitments and obligations of any kind, whether fixed,
    contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or not accrued, asserted or not asserted,
    known or unknown, determined, determinable or otherwise, whenever or however arising (including, whether arising out of any
    Contract or tort based on negligence, common law, statute, rule or regulation or strict liability) and whether or not the
    same would be required by GAAP to be reflected in financial statements or disclosed in the notes thereto.
	 	 
	12.78	“Liquidation”
    shall mean a liquidation, dissolution or winding up of the affairs of the Company and its Subsidiaries.
	 	 
	12.79	“Losses”
    has the meaning set forth in Section 7.3.
	 	 
	12.80	“Master
    Services Agreement” means that certain Master Services Agreement, dated as of October 30, 2018 but effective as
    of October 1, 2015, between Seller and the Company.
	 	 
	12.81	“Monthly
    Cash Target Amount” means an amount equal to Four Million Six Hundred Thousand United States Dollars (U.S. $4,600,000).

 

    	 	41	 

    	 	 	 

    

 

	12.82	“Net
    Operating Costs” means an amount equal to the sum of the Company’s and its Subsidiaries’ (a) gross revenues
    minus (b) actual out-of-pocket operating expenses incurred in the Ordinary Course of Business, in each case during the Working
    Capital Period and excluding any Restructuring Costs.
	 	 
	12.83	“Net
    Liability Adjustment Amount” means an amount, which may be positive or negative, equal to the sum of (a) the Pre-Closing
    Liability Amount minus (b) the Closing Cash Amount.
	 	 
	12.84	“Neutral
    Expert” has the meaning set forth in Section 2.4b).
	 	 
	12.85	“Neutral
    PCI Expert” has the meaning set forth in Section 6.3.7a).
	 	 
	12.86	“Objection
    Notice” has the meaning set forth in Section 7.4.2.
	 	 
	12.87	“Order”
    means any order, ruling, writ, judgment, injunction, decree, stipulation, determination, decision, award or other similar
    pronouncement enacted, issued, promulgated, enforced or entered by or with any Government Entity.
	 	 
	12.88	“Ordinary
    Course of Business” means, with respect to a Person, actions taken by such Person only if such actions are reasonable
    and customary, are consistent in nature, scope and magnitude with the past practices of such Person, and are taken in the
    ordinary course of the normal, day-to-day operations of such Person.
	 	 
	12.89	“Party”
    or “Parties” has the meaning set forth in the Preamble.
	 	 
	12.90	“PCI
    Committee” has the meaning set forth in Section 6.3.2.
	 	 
	12.91	“PCI
    Deadlock” has the meaning set forth in Section 6.3.5.
	 	 
	12.92	“PCI
    Period” has the meaning set forth in Section 6.3.1
	 	 
	12.93	“Pefcalcitol
    Agreement” means that certain license agreement, dated October 1, 2015 by and between Seller and the Company, pursuant
    to which Seller granted certain rights to the Company in relation to products containing pefcalcitol.
	 	 
	12.94	“Permit”
    means any license, permit, franchise, certificate, registration, Order, consent, waiver, clearance, variance, grants, authorization
    or other approval issued by or obtained from a Government Entity.
	 	 
	12.95	“Permitted
    Encumbrances” means (a) statutory Encumbrances for current Taxes and assessments not yet due and payable, (b) Encumbrances
    of employees and laborers for current wages not yet due arising by operation of law and incurred in the Ordinary Course of
    Business, (c) mechanics’, materialmen’s, warehousemen’s, carriers’, workers’, or repairmen’s
    liens or other similar common law or statutory Encumbrances arising or incurred in the Ordinary Course of Business not yet
    due and payable, and (d) restrictions not materially affecting the present use or value of such assets or properties.
	 	 
	12.96	“Person”
    means an individual, a corporation, a partnership, an association, a limited liability company, a Government Entity, a trust
    or other entity or organization.

 

    	 	42	 

    	 	 	 

    

 

	12.97	“Pre-Closing
    Liabilities” means the Liabilities of the Company and each of its Subsidiaries that would be required in accordance
    with GAAP and the practices and methodologies of the Company used in the preparation of the Financial Statements to be set
    forth on a consolidated balance sheet of the Company as of 11:59 PM on the Business Day immediately prior to the Closing.
    For the avoidance of doubt, the Pre-Closing Liabilities shall include the Indebtedness of the Company and each of its Subsidiaries,
    regardless of whether or not such liabilities are required in accordance with GAAP and the practices and methodologies of
    the Company used in the preparation of the Financial Statements to be set forth on a balance sheet of the Company as of 11:59
    PM on the Business Day immediately prior to the Closing but excluding Accounts Payable.
	 	 
	12.98	“Pre-Closing
    Liability Amount” means the amount of Pre-Closing Liabilities as of 11:59 PM on the Business Day immediately prior
    to the Closing.
	 	 
	12.99	“Pre-Closing
    Tax Period” means any taxable period that ends on or before the Closing Date (excluding any Pre-Closing Straddle
    Period).
	 	 
	12.100	“Pre-Closing
    Straddle Period” means the portion of a Straddle Period that ends on the Closing Date, as determined in accordance
    with Section 10.1.
	 	 
	12.101	“Proceeding”
    means any action, claim, demand, suit, litigation, proceeding, arbitration, complaint, grievance, citation, summons, charge,
    subpoena, hearing, audit, inquiry or investigation of any nature (whether in law or equity and whether civil, criminal, regulatory
    or otherwise), by or before any Government Entity.
	 	 
	12.102	“Product
    Program Assets” means the Intellectual Property and associated Contracts and regulatory applications and documents
    relating to research, product development, clinical trials and marketing/research authorizations associated with the Products.
	 	 
	12.103	“Product
    Profit Amount” has the meaning set forth in Section 2.5.1a).
	 	 
	12.104	“Products”
    has the meaning set forth in the Preamble.
	 	 
	12.105	“Public
    Company” has the meaning set forth in 6.6.2.
	 	 
	12.106	“Purchaser”
    has the meaning set forth in the Preamble.
	 	 
	12.107	“Purchaser
    BM Members” has the meaning set forth in Section 6.4.1.
	 	 
	12.108	“Purchaser
    PCI Members” has the meaning set forth in Section 6.3.2.
	 	 
	12.109	“Purchaser’s
    Guarantor” has the meaning set forth in the Preamble.
	 	 
	12.110	“Recipient”
    has the meaning set forth in Section 10.4.1.
	 	 
	12.111	“Related
    Person” means Seller or any of its Affiliates (other than the Company), or any of the officers, directors, managers,
    employees or equityholders of Seller or any of its Affiliates, or any Affiliate of any of the foregoing (other than the Company).
	 	 
	12.112	“Release”
    means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
    leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
    limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
    structure, facility or fixture).
	 	 
	12.113	“Restructuring
    Costs” means those expenditures incurred by the Company, its Subsidiaries, the Purchaser or its Affiliates directly
    arising from the implementation of the Restructuring Plan (including any Interim Costs unless such costs have been paid to
    Seller) but excluding any operating costs of the Company, its Subsidiaries, the Purchaser or its Affiliates incurred in the
    Ordinary Course of Business.

 

    	 	43	 

    	 	 	 

    

 

	12.114	“Secondment
    Agreement” means that certain Agreement Concerning Maruho Expatriates, dated as of October 1, 2015, by and between
    Seller and the Company.
	 	 
	12.115	“Seller”
    has the meaning set forth in the Preamble.
	 	 
	12.116	“Seller
    Adjustment” has the meaning set forth in Section 2.4c).
	 	 
	12.117	“Seller
    Adjustment Offset” has the meaning set forth in Section 6.3.5a).
	 	 
	12.118	“Seller
    BM Members” has the meaning set forth in Section 6.4.1.
	 	 
	12.119	“Seller
    PCI Members” has the meaning set forth in Section 6.3.2.
	 	 
	12.120	“Seller’s
    Representations” has the meaning set forth in Section 4.
	 	 
	12.121	“Seller
    Taxes” means (a) any Taxes imposed on or payable by Seller, or for which Seller may otherwise be liable, regardless
    of the Tax period to which such Taxes relate; (b) any Taxes imposed on or payable by the Company or any of its Subsidiaries,
    or for which the Company or any of its Subsidiaries may otherwise be liable under applicable Law, for any Pre-Closing Tax
    Period and for any Pre-Closing Straddle Period (as determined in accordance with Section 10.1); (c) any Taxes of any member
    of any affiliated group, combined group or unitary group of which the Company or any of its Subsidiaries (or any predecessor
    of the Company or any of its Subsidiaries) was a member on or prior to the Closing Date by reason of Treasury Regulations
    Section 1.1502-6(a) or any analogous or similar provision of state, local or non-U.S. Law (including any Liability for Taxes
    resulting from any “intercompany transaction” in respect of which gain was deferred pursuant to Treasury Regulation
    section 1.1502-13(a)(2) (or any predecessor thereof or any analogous or similar provision under state, local or non-U.S. Law));
    (d) any Taxes of any other Person for which the Company or any of its Subsidiaries is or has been liable under applicable
    Law (or for which the Company or any of its Subsidiaries has an obligation to pay, fund or reimburse) for any Pre-Closing
    Tax Period and for any Pre-Closing Straddle Period, whether as a transferee or successor, by Contract or Law, or otherwise;
    (e) any Transfer Taxes; and (f) any Taxes incurred or sustained by any Purchaser Indemnified Person arising out of, resulting
    from, relating to or otherwise in respect of any payments required to be made to Seller pursuant to this Agreement.
	 	 
	12.122	“Shares”
    has the meaning set forth in the Preamble.
	 	 
	12.123	“Software”
    means all software, software versions and releases, and all source code, executable code, data, databases and related documentation.
	 	 
	12.124	“Straddle
    Period” means a taxable period that begins on or before the Closing Date and ends after the Closing Date.
	 	 
	12.125	“Start-Up
    Costs” has the meaning set forth in Section 2.2.
	 	 
	12.126	“Subsidiary”
    of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which
    a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other
    governing body (other than securities or interests having such power only by reason of the happening of a contingency) are
    at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or
    more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a “Subsidiary”
    or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Company.

 

    	 	44	 

    	 	 	 

    

 

	12.127	“Tax”
    and, collectively “Taxes,” means: (a) any and all foreign, United States federal, state or local tax, including
    but not limited to net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, capital,
    value added, transfer, franchise, profits, excess profits, license, withholding, payroll, employment, FICA, FUTA, social security,
    unemployment, stamp, excise, severance, stamp, real property, personal property, intangible property, inventory, healthcare
    or healthcare insurance, occupation, insurance, premium, environmental or windfall profit tax, customs, duty or other tax
    or other governmental fee, assessment or charge and including all obligations and Liabilities under applicable escheat or
    unclaimed property Laws, together with any related interest, penalty, addition to tax or additional amount imposed by any
    applicable Law or Tax Authority in connection therewith (whether disputed or otherwise); (b) any obligation or Liability for
    the payment of any amounts of the type described in clause (a) as a result of being a member of, or a successor of, an any
    affiliated, combined, consolidated or unitary group for any taxable period; and (c) any obligation or Liability for the payment
    of any amounts of the type described in clause (a) or (b) as a result of being a transferee of or successor to any Person
    (whether by merger, conversion or otherwise) or as a result of any legal or contractual obligation (express or implied) to
    pay such amounts to or on behalf of another Person or to indemnify any Person with respect to such amounts.
	 	 
	12.128	“Tax
    Attributes” means any net operating loss, net capital loss, investment tax credit, foreign credit, charitable deduction
    or any other credit or tax attribute that could be carried forward or back to reduce Taxes (including deductions and credits
    relating to alternative minimum Taxes) and any additional items described in Section 381 of the Code without reference to
    the conditions and limitations described therein.
	 	 
	12.129	“Tax
    Authority” means a Government Entity or any subdivision, agency, commission or authority thereof, or any quasi-governmental
    or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax.
	 	 
	12.130	“Tax
    Return” means any returns, statements, reports, elections, declarations, schedules, claims for refund, and forms
    (including estimated Tax or information returns and reports and including, where permitted or required, combined, unitary
    or consolidated returns) filed or required to be filed or furnished with respect to any Tax, including any supplement or attachment
    thereto and any amendment thereof.
	 	 
	12.131	“Tax
    Proceeding” has the meaning set forth in Section 10.4.1.
	 	 
	12.132	“Tax
    Sharing Contracts” has the meaning set forth in Section 10.7.
	 	 
	12.133	“Territory”
    has the meaning set forth in Section 6.6.
	 	 
	12.134	“Total
    Working Capital Amount” has the meaning set forth in Section 6.3.6a).
	 	 
	12.135	“Third
    Party Claim” has the meaning set forth in Section 6.6.
	 	 
	12.136	“Transfer
    Taxes” has the meaning set forth in Section 10.5.
	 	 
	12.137	“Working
    Capital Adjustment Amount” has the meaning set forth in Section 6.3.6a).
	 	 
	12.138	“Working
    Capital Notice” has the meaning set forth in Section 6.3.6a).
	 	 
	12.139	“Working
    Capital Period” has the meaning set forth in Section 6.3.6a).
	 	 
	12.140	“Xepi”
    has the meaning set forth in the Preamble.

 

(Remainder
of this page intentionally left blank; signature page follows)

 

    	 	45	 

    	 	 	 

    

 

SIGNATURES

 

	Maruho
    Co., Ltd.:
	 	 	 
	Date:	March
    25, 2019	 
	 	 	 
	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

[Signature
Page to Share Purchase and Transfer Agreement]

 

    	 	 	 

     

    

 

	Cutanea
    Life Sciences, Inc.:
	 
	Date:	March
    25, 2019	 
	 	 	 
	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

[Signature
Page to Share Purchase and Transfer Agreement]

 

    	 	 	 

     

    

 

	Biofrontera
    Newderm LLC:
	 
	Date:	March
    25, 2019	 
	 	 	 
	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

[Signature
Page to Share Purchase and Transfer Agreement]

 

    	 	 	 

     

    

 

	Biofrontera
    AG (solely for the purposes of Section 9):
	 
	Date:	March
    25, 2019	 
	 	 	 
	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

	 	/s/
    [***]	 
	Name:	[***]	 
	Position:	[***]	 

 

[Signature
Page to Share Purchase and Transfer Agreement]Exhibit
4.14

Confidential

 

LICENSE
AND SUPPLY AGREEMENT

 

Made
in Barcelona and Fairfield, New Jersey on March 10th, 2014 (the “Effective Date”) by and between:

 

FERRER
INTERNACIONAL, S.A., with its head office at Av. Diagonal, 549, 5th, floor, 08029 Barcelona (Spain), hereinafter referred
to as “Ferrer”, herein represented by [***], and [***], both as jointly empowered.

 

And

 

MEDIMETRIKS
PHARMACEUTICALS, INC., with its principal place of business at 383 Route 46 West, Fairfield, New Jersey (U.S.A), hereinafter
referred to as “Company”, herein represented by [***].

 

Both
Ferrer and Company are hereinafter sometimes collectively referred to as the “Parties”, and each may be referred to
in singular as “Party”;

 

	A.	WHEREAS,
    FERRER has acquired intellectual property rights through a Licensing Agreement with Toyama Chemical Co., Ltd. (the “Toyama
    License”) in force over the compound Ozenoxacin (hereinafter the “Compound”) defined in Article 1 below,
    and owns or has exclusive license to certain patent rights related to such Compound;
	 	 
	B.	WHEREAS,
    Company enjoys a strong reputation in the Territory (as defined below) and, as a leading company in the Territory, possesses
    the requisite scale, presence and infrastructure to perform pursuant to this Agreement;
	 	 
	C.	WHEREAS,
    Company has evaluated the properties of the Compound and is interested in assisting in the registration of, and marketing,
    the Products (as defined below) in the Territory; and
	 	 
	D.	WHEREAS,
    the Parties are interested to explore a licensing structure pursuant to which, subject to signature of this Agreement,
    Ferrer will license to the Company the Ferrer Technology (as defined in this Agreement) as pertains to the Compound and/or
    to the Products and grant the Company the exclusive right to market and otherwise commercialize the Products in the Territory
    for human use.

 

    	
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration,
which the Parties acknowledge as received and sufficient, the Parties agree as follows:

 

ARTICLE
1. DEFINED TERMS

 

In
this Agreement, unless the context requires otherwise:

 

	 	-	references
    to clauses are to clauses of this Agreement;
	 	 	 
	 	-	references
    to the singular shall include the plural and vice versa; and
	 	 	 
	 	-	headings
    are inserted for convenience only and shall not affect the Agreement’s construction.

 

In
addition to terms defined elsewhere herein, when used in this Agreement, the following terms shall have the following meanings,
unless the context requires otherwise:

 

1.1
“Additional Data” shall mean the chemical, pharmacological, toxicological, clinical and other scientific data
concerning the Compound and the Products (as defined below), other than Original Data (as defined below), which Ferrer has available
to it on the Effective Date, as well as that which Ferrer may obtain thereafter. Additional Data shall also mean any new indication
for the Compound. Ownership of the Additional Data, whether in or out of the Field, shall be owned by the Party that paid the
costs associated with the discovery of such Additional Data, as long as such ownership is not in conflict with the provisions
of the Toyama License.

 

1.2
“Affiliate” shall mean with respect to either Party, any person that directly or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, such Party. As used in this definition, the term
“control” means possession of direct or indirect power to order or cause the direction of the management and policies
of a corporation or other entity whether (i) through the ownership of more than fifty percent (50%) of the outstanding voting
securities or other ownership interests of such person, or (ii) by contract, statute, regulation or otherwise.

 

1.3
“Agreement” shall mean this License and Supply Agreement, together with all Exhibits and Schedules thereto, as
the same may be amended or modified from time to time in accordance with the terms hereof.

 

1.4
“Change of Control” shall mean

 

(a)
any transaction or series of related transactions resulting in a consolidation or merger of the Company with or into any other
corporation or other entity or person, or any other corporate reorganization, in which the shareholders of the Company immediately
prior to such consolidation, merger or reorganization, own less than 50% of the Company’s voting power immediately after
such consolidation, merger or reorganization, or any transaction
or series of related transactions in which in excess of 50% of the Company’s voting power is transferred; or

 

    	2
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

(b)
the sale to a Third Party of all or substantially all of the Company’s assets related to the Products in a single transaction
or series of related transactions.

 

Notwithstanding
the foregoing, after the consummation of the first Company Change of Control (if any), no subsequent transaction falling within
the scope of clause (a) or clause (b) of this Section 1.4 shall be considered a Company Change of Control for purposes of this
Agreement.

 

1.5
“Company Improvements” shall mean Improvements owned solely by the Company and the Company’s interest in
Improvements owned jointly by Ferrer and the Company (in each case as set forth in Article 17.1 below).

 

1.6
“Competition” shall mean (i) any new product containing the Compound and/or the Products to be commercialized,
sold or proposed to be sold in the Territory, (ii) products owned or controlled by the Company that are primarily promoted, marketed
or commercialized in the Territory in the Field that, in the judgment of the JSC (as defined in Article 2.2 below), have a materially
adverse impact upon the Company’s sales of the Products and/or (iii) any Generic.

 

1.7
“Compound” shall mean 1-Cycloporpyl-8-methyl-7-[5-methyl-6-(methylamino)-3-pyridinyl]-4-oxo 1, 4-dihydro-3-quinolinecarboxylic
acid and its therapeutically acceptable salts, its solvates and esters.

 

1.8
“Development Work” shall mean all the chemical, toxicological, pharmacological, clinical and other necessary work
concerning the Compound and the Preparation, other than Registration Work, during the life of this Agreement to develop the Products,
including the Second Phase Ill Trial (as defined in Article 2.1 below).

 

1.9
“Effective Date” shall mean the date on which Ferrer and Company enter into this Agreement as evidenced by the
day and date first herein above entered.

 

1.10
“Ferrer Improvements” shall mean Improvements owned solely by Ferrer and Ferrer’s interest in Improvements
owned jointly by Ferrer and the Company (in each case, as set forth in Article 17.1 below).

 

1.11
“Ferrer Know-How” shall mean all Know-How owned or controlled by Ferrer during the term of this Agreement that
is necessary or useful for the development, manufacture, use or sale of the Compound or the Products, including, without limitation,
Ferrer Improvements, Original Data and Additional Data.

 

1.12
“Ferrer Patent” shall mean all patents and patent applications owned or controlled and/or later filed by or later
issued to Ferrer during the term of this Agreement or after its termination, that claim or cover inventions necessary or useful
for the development, manufacture, use or sale of the Compound or the Products, including, without limitation, those patents and
applications set forth in Exhibit A hereto.

 

    	3
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

1.13
“Ferrer Technology” shall mean, collectively, the Ferrer Patents and the Ferrer Know-How.

 

1.14
“Field” shall mean Products for the treatment of topical bacterial infections in patients, more specifically those
with impetigo. Expressly excluded from the definition of Field shall be pharmaceutical preparations for ophthalmic use and/or
the use of the Compound for ophthalmic indications.

 

1.15
“Finished Product” shall mean any pharmaceutical or medicinal product in any finished ready to sell form or formulation
for human use containing or incorporating the Compound as an active ingredient. Combinations of the Compound and/or the Finished
Product with other active ingredients and/or medicinal products are expressly excluded from this Agreement.

 

1.16
“GAAP” shall mean United States Generally Accepted Accounting Principles, consistently applied.

 

1.17
“Generic” shall mean a product sold by a Third Party in the Territory for any indication in the Field (i) that
contains the Compound as its sole active ingredient that is deemed to be a therapeutically equivalent substitute for the Products
at the pharmacy level and/ or (ii) for which marketing approval has been obtained or is being sought in the Territory by reference
to Ferrer’s Marketing Authorization for the Products, it being acknowledged that non-branded versions of the Products sold
or proposed to be sold by the Company or its authorized distributor shall not be a Generic.

 

1.18
“Governmental Authority”/ “Governmental Body” shall mean any Territory national, provincial, or local
governmental or regulatory authority, agency or other body with regulatory jurisdiction within the Territory with respect to the
activities contemplated in this Agreement and, specifically, the United States Food and Drug Administration (the “FDA”).

 

1.19
“Improvements” shall mean all inventions, modifications and discoveries, patentable or not, related to the Compound
and/or to the Products as such which improve the marketability, safety or efficacy of the Products or which enable the Compound
or the Products to be manufactured more efficiently or at a lower cost, acquired or conceived during the life of this Agreement.

 

1.20
“Know-How” shall mean any and all information and tangible materials, including, but not limited to, ideas, discoveries,
inventions, improvements, information relating to the know-how, method of manufacture and quality control, formulation and medical
use of the Compound and the Products, including information relating to the tolerability, safety and efficacy of the Compound
and/ or the Products, such as toxicological, pharmacological, clinical and chemical data and specifications of the Compound and
the Products, trade secrets, information relating to the data, instructions, expert opinions, biological, chemical, pharmacological,
toxicological, pharmaceutical, physical and analytical, safety, quality control, clinical and other data and information relating
to the use or the sale of the Finished Product and/or the Compound, information not generally known and/or relating to the Compound
or the Finished Product, and databases, practices, methods and information relating to the processes, specifications and techniques
relating to, or associated with, the Compound and/ or the Finished Product.

 

    	4
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

1.21
“Launch Date” shall mean the date of the first commercial sale of the Products containing the Compound by the
Company in the Territory.

 

1.22
“License” shall mean Company’s right to develop, make, have made, register, use, sell, have sold, offer
for sale, import and otherwise commercially exploit the Compound and the Products in the Field in the Territory for human use
under the Ferrer Technology, all as more fully set forth in Article 2.2 below.

 

1.23
“Marketing Authorization” shall mean the license granted to the Products after a process of reviewing and assessing
the dossier to support the medicinal nature of the Products in view of its marketing within the legislative framework in the Territory,
including the New Drug Application (“NOA”) which will be filed with the FDA with respect to the Products.

 

1.24
“Net Sales” shall mean, with respect to the Products, gross sales invoiced by or on behalf of Company, its Affiliates
and/or sublicensees for sales of the Products to Third Parties, less deductions actually incurred, allowed, paid, accrued and
otherwise specifically identified related to, and specifically allocated on a pro rata basis with Company’s (its Affiliate’s
or sublicensee’s) other products to, the Products by Company, its Affiliates and/or sublicensees using GAAP applied on a
consistent basis to:

 

(a)
any and all credits for Product returns in the Territory, including, but not limited to, credits for returned, unsold, or short-dated
Product, allowances granted or included in the invoice, cash discounts, customer program accruals (overbills, administrative fees,
third-party rebates, sales brokerage and volume rebates), consignment sales, wholesaler and retailer fees, other adjustments and
rebates, including, but not limited to, Medicaid and other state or governmental rebates, charge backs, floor stock adjustments,
and similar items that may be estimated in accordance with GAAP;

 

(b)
shipping costs, sales and excise taxes, other consumption taxes, or other governmental charges to the extent actually included
in gross sales; and

 

(c)
any receivables that have been included in gross sales and are deemed to be uncollectible (not to exceed five percent (5%) of
launch to date gross sales) according to GAAP. Such bad debt deduction shall be applied to Net Sales in the period in which such
receivables are written off and shall be exclusive of any bad debt or uncollectible receivables unrelated to the Products.

 

    	5
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

In
no event should any particular amount identified above be deducted more than once in calculating Net Sales (i.e. no “double
accounting” of reductions).

 

1.25
“Original Data” shall mean all data, information, documentation and Know-How concerning the Compound and the Preparation
in Ferrer’s possession, whether or not disclosed by Ferrer to the Company.

 

1.26
“Party” or “Parties” shall mean either Ferrer or the Company, or both, depending upon the context
in which either word may appear.

 

1.27
“Patent” shall mean any of the following, whether existing now or in the future anywhere in the world: any issued
patent, including any inventor’s certificate, patent applications, supplemental protection certificate, including any division,
continuation, continuation-in part, substitution, registration, renewal, any pending application for any of the foregoing, reissue,
extension, confirmation, re-examination, revalidation or registration thereof and any patent issuing thereon, utility models (where
applicable), including any substitute, renewal or any like governmental grant for protection of inventions, provisional and converted
provisional application, re-examination and registration of foreign counterpart thereof.

 

1.28
“Preparation” shall mean a pharmaceutical product for human use in finished dosage form ready to sell, containing
the Compound with indications for treatments within the Field.

 

1.29
“Products” shall mean, jointly, Finished Product and Preparation suitable to be commercialized within the Field
in the Territory.

 

1.30
“Registration Work” shall mean all work associated with any and all governmental approvals, licenses, authorizations,
permits or registrations required under the statutes, laws or regulations of the governments in the Territory to allow the Company
to sell the Products therein, including the Marketing Authorization.

 

1.31
“Regulatory Approvals” shall mean any and all manufacturing approvals and Marketing Authorizations given by the
competent Governmental Authority which are necessary for the commercialization of the Products in the Territory by the Company.

 

1.32
“Territory” shall mean United States of America, Puerto Rico and the U.S. Virgin Islands.

 

1.33
“Third Party” shall mean any entity other than Ferrer or the Company (and their respective Affiliates).

 

1.34
“Trial” shall mean pre-clinical and clinical studies.

 

    	6
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

ARTICLE
2. OBJECT: GRANTING OF RIGHTS AND FIELD

 

2.1
Object: The Compound has completed Phase II trials, plus an initial Phase Ill study in patients with impetigo.

 

It
is anticipated that one additional Phase Ill trial (the “Second Phase Ill Trial”) may be sufficient to bring the Compound
to a point where it can be commercialized or marketed as Products in the Territory. Ferrer will bear the cost of this Second Phase
Ill Trial. Notwithstanding, although Ferrer is not aware of any reason to the contrary, Ferrer makes no representation or warranty
that the clinical data from the Trial will result in a Marketing Authorization for the Products for commercialization in the Territory.

 

2.2
Granting of rights: Subject to the terms and conditions set forth herein, Ferrer grants to the Company in the Territory, and
Company hereby accepts from Ferrer, an exclusive, royalty-bearing License in the Territory, including the right to sublicense
in accordance with the immediately following paragraph, under the Ferrer Technology, to develop, make, have made, use, register,
market, promote, sell, have sold, offer for sale and import the Compound and the Products in the Territory in accordance with
the Regulatory Approvals, including the NDA. The Company shall use its commercially reasonable efforts to assist Ferrer in registering
the Products in the Territory under the NDA and the other Marketing Authorizations. In furtherance thereof, Ferrer shall provide
the Company with all necessary documentation and other information requested by the Company in order for the Company to obtain
such registrations on Ferrer’s behalf. Once Ferrer has obtained the corresponding Regulatory Approvals and Marketing Authorizations,
the Company shall use its commercially reasonable efforts to market, sell and otherwise commercialize the Products in the Territory,
subject to the terms and conditions of this Agreement.

 

Ferrer
further acknowledges and agrees that the Company, without any further consent of Ferrer, concurrently with the Joint Steering
Committee (the “JSC”) learning that a Generic for the Products is about to be launched in the Territory, may sublicense
its appropriate rights hereunder to a Third Party to allow such Third Party to be the Company’s designated authorized distributor
of non-branded versions of the Products within the Territory.

 

Any
sublicense granted by the Company hereunder shall be subject to the terms and conditions of this Agreement and shall include provision
providing for termination thereof simultaneously with any termination of this Agreement.

 

The
Company agrees not to promote or sell the Products out of the Territory.

 

2.3
Exclusions: Any indication other or different to the Field, as well as any salts, esters, homologues, analogues or derivatives
of the Compound (hereinafter referred to as “Derivatives”), are expressly excluded from this Agreement, provided,
however, that to the extent any such Derivative could, in the opinion of the JSC, serve as Competition to the Products in the
Territory, such Derivative shall be included within the License granted to the Company pursuant to this Agreement.

 

    	7
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

Subject
to the provisions of Article 19 below, all marketing activities relating to the Compound or the Products, including sales, distribution
and/or commercialization activities, etc. outside the Territory and/or within the Territory but for a different Field shall be
the sole responsibility of Ferrer.

 

2.4
License Grant-Back to Ferrer Outside the Territory. Subject to the terms and conditions of this Agreement, the Company hereby
grants to Ferrer an exclusive, royalty-free, fully-paid, irrevocable, perpetual license, including the right to sublicense, to
the Company Improvements, to develop, use, register, market, promote, sell, have sold, offer for sale and import the Compound
and the Products outside of the Territory, both in and outside of the Field. The Company acknowledges that a perpetual, royalty-free
and exclusive license to manufacture, use and sell the Compound and the Products under Company Improvements within Japan, Korea,
China and Taiwan shall be granted to Toyama during the period the Toyama License is in force.

 

ARTICLE
3. LICENSE FEE, MILESTONES AND OTHER FINANCIAL TERMS

 

3.1
In consideration for the License rights granted hereunder, the Company shall pay to Ferrer the following amounts:

 

(a)
Milestones

 

	-	Upon
    execution of this Licensing Agreement	$[***]
	-	Upon
    1st patient enrolled in the Second Phase III Trial	$[***]
	-	Upon
    final patient enrolled in the Second Phase III Trial	$[***]
	-
    	Upon
    completion of the final Second Phase III Trial study report	$[***]
	-	90
    days following the FDA’s acceptance of the NDA for review	$[***]
	-	Upon
    receipt of trade units/ samples in accordance with the Company’s binding purchase order ahead of the Launch	$[***]
	-	Upon
    the first anniversary of receipt of trade units/ samples in accordance with Company’s binding purchase order ahead of
    the Launch	$[***]
	-	Upon
    first occasion annual Net Sales of the Products exceed $[***]	$[***]
	-	Upon
    first occasion annual Net Sales of the Products exceed $[***]	$[***]
	 	 	 

 

The
Company further agrees that it shall pay to the FDA, concurrently with its filing of the NDA, the then applicable Prescription
Drug User Fee Act (“PDUFA”) fee.

 

    	8
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

Ferrer
hereby agrees to provide the Company with such quantities of samples of the Products as the Company may, from time to time, reasonably
request. Such sample quantities must be in a reasonable amount according to and consistent with the Company’s forecasts
for the Products and with the same return or devolution policies. The JSC shall establish from time to time the prices at which
samples of the Products will be provided by Ferrer to the Company as well as the percentage of each batch of Product that will
be allocated for the production of samples, it being understood that the general understanding of the Parties is that at least
for the first two years following approval of the NOA (provided that the tube size of the samples and trade units are identical),
[***]% of the sample allocation from each batch of the Product will be provided to the Company without charge, an additional 25%
of the sample allocation from each batch of the Product will be provided to the Company at 50% of the then trade unit cost, and
the remaining 50% of the sample allocation from each batch of the Product will be provided to the Company at the then trade unit
cost. The Company shall bear 100% of the development costs associated with the creation of a sample size of the Product that is
not identical to the trade size of the Product and will reimburse Ferrer (or its nominee) within thirty (30) days of receiving
an invoice setting out the work performed.

 

Subject
to the provisions of Article 13 below, each of the foregoing milestone payments shall be considered a one-time non-refundable
and non-conditioned payment.

 

The
Company shall pay each such milestone payment following its receipt from Ferrer of an invoice for the same within thirty (30)
days of the relevant milestone being achieved.

 

(b)
Purchase commitment: The Company will buy all its requirements for trade units and samples of the Products exclusively
from Ferrer or its nominees during the term of the Agreement. Ferrer shall provide the Company with trade units of the Product
at a fixed price of $[***] per unit (subject to Section 4.2 and the other conditions set out in Article 4 below).

 

(c)
Running royalties:

 

The
Company shall pay to Ferrer a royalty of [***] based on Net Sales by the Company and its Affiliates of the Products. Following
such time as a Generic is introduced in the Territory, and subject to the determination by the JSC that prescriptions filled and
sales of the Products have been demonstrably impacted by the introduction of such Generic, this royalty shall be reduced from
time to time, but not to less than [***], by the same amount (determined as a percentage) as the Company’s Net Sales of
the Products have decreased as a result of the introduction of Generics.

 

All
running royalties shall be calculated and payable on a quarterly basis and running royalties shall be paid within [***] days following
the end of each quarter. Each such payment shall be accompanied by a written report indicating the amount of Net Sales during
such quarter by Products (including quantity of Products) and a calculation of the royalties due.

 

The
Company acknowledges and agrees that to the extent Generics of the Products are being promoted by the Company’s authorized
distributor for such Generics, Net Sales shall also include such authorized distributor’s Net Sales of such Generics.

 

    	9
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

3.2
Accounting:

 

The
Company shall keep, and require its Affiliates to keep, complete and accurate records of the sale or other disposition of Products.
Ferrer shall have the right, at its own expense and upon reasonable notice, for the period during which a running royalty is due
to Ferrer and for one (1) year thereafter, to have an independent certified public accountant to whom the Company has no reasonable
objection examine the previous year’s relevant books and records of account of the Company and its Affiliates selling Products
during reasonable business hours to determine whether appropriate payment has been made by the Company hereunder, provided, however,
that if such examination reveals a discrepancy which is greater than two times the cost of the examination between the amount
owing and the actual amount paid by the Company to Ferrer, then the Company shall be responsible for the costs associated with
such examination. In all other cases, Ferrer shall be responsible for the costs associated with such examination. Any Company
short-fall in the amount owing identified hereunder will fall due within 30 days of being identified, along with interest accrued
at 2% above the Libor rate covering the period since the identified short-fall was originally due.

 

3.3
Foreign exchange:

 

All
payments to be made under this Agreement shall be made in US Dollars ($ USO) to the account notified to the Company by Ferrer.

 

3.4
Taxes:

 

(a)
The Company will make all payments to Ferrer under this Agreement without withholding for taxes except to the extent that any
such withholding is required by applicable laws and regulations in effect at the time of payment within the Territory.

 

(b)
Any tax required to be withheld within the Territory on amounts payable under this Agreement will promptly be paid by the Company
on behalf of Ferrer to the appropriate Governmental Authority, and the Company will furnish Ferrer with proof of payment of such
tax. Any such tax required to be withheld will be an expense of, and borne by, Ferrer.

 

(c)
The Company and Ferrer will cooperate with respect to all documentation required by any taxing authority or reasonably requested
by the Company and Ferrer to secure a reduction in the rate of applicable withholding taxes within the Territory, including pursuant
to any then Income Tax Treaty between the United States and Spain.

 

    	10
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

ARTICLE
4. PRODUCTS SUPPLY

 

4.1
During the term of this Agreement, the Company shall purchase all its requirements of trade units and samples of the Products
exclusively from Ferrer or Ferrer’s appointee. Similarly, Ferrer covenants and agrees that during the term of this Agreement,
Ferrer (or its appointee) will manufacture and supply to the Company, or cause to be manufactured and supplied to the Company,
all trade units and samples of the Products ordered by the Company. In order to permit Ferrer to guarantee to the Company the
good and consistent availability of trade units and samples of the Products, the Company will provide the JSC with [***] rolling
forecasts of the Company’s Product requirements. The first [***] of each such forecast shall represent a binding commitment
of the Company.

 

Promptly
following the execution of this Agreement, the Parties, in good faith, shall negotiate and execute (within 120 days following
the Effective Date) a manufacturing and supply agreement customary and usual for a transaction of this nature. Such manufacturing
and supply agreement shall, among other things, set forth expiration dating requirements for the Products measured from the time
the Products are received by the Company. If, in the opinion of the JSC, there is a material interruption in the supply of the
Products, the Parties will use their best efforts to secure, as promptly as possible, a new manufacturer for the Products.

 

The
Company shall place each order for trade units and samples of the Products by issuing to Ferrer a firm purchase order in writing.
The first such purchase order shall be delivered to Ferrer at least [***] prior to the first desired delivery date and all subsequent
purchase orders shall be delivered to Ferrer at least [***] prior to the desired delivery date. Each purchase order shall be in
the form provided by Ferrer to the Company as set forth in Exhibit Band shall require the express approval by Ferrer in writing.

 

Ferrer
shall deliver, or cause to be delivered, within the terms set forth in each purchase order, the amount of Products ordered pursuant
to the Company’s purchase orders, provided that Ferrer may, but shall not be obligated to, deliver amounts of ordered Products
in excess of any binding order, provided that such excess shall not exceed [***]% of the amount of the ordered Products, and provided
further, that Ferrer has previously confirmed in writing its ability and intention to deliver such excess product.

 

The
Company may keep a reasonable stock of the Product based on the Company’s anticipated requirements for Products referred
to in its most recent rolling forecast.

 

If
the quantity of Products indicated in any purchase order varies by more than [***]% from the expected quantity indicated in the
relevant forecast or if the required delivery date is advanced by more than [***] as compared to the expected delivery date indicated
in the forecast, then within thirty (30) days from receipt of such purchase order, Ferrer will promptly notify the Company in
written form of the extent of its ability to meet the requirements.

 

To
the extent of any conflict or inconsistency between this Agreement and any purchase order, purchase order release, confirmation,
acceptance or any similar document, the terms of this Agreement shall govern.

 

    	11
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

4.2
Purchase price and payment

 

The
initial purchase price for trade units of the Products shall be set at $[***] per trade unit (the “Supply Unit Price”).
Notwithstanding the foregoing, during the term of this Agreement, Ferrer may change its Supply Unit Price on any or all the Products
from time to time, but no more than once annually, based on documented actual increases to Ferrer’s direct manufacturing
and labor (but specifically excluding overhead) costs (or those charged by its nominee), provided that Ferrer furnishes the Company
with at least thirty (30) days prior written notice of any such change. The increase shall apply to any order received by Ferrer
after the communication date of the increase. In the event that the new Supply Unit Price for the Products may make the business
not feasible, the Parties, in good faith and through the JSC, agree to meet and negotiate in good faith an alternative solution.

 

The
purchase price for the Products shall be paid in US Dollars by the Company and such payment terms shall be [***] following the
date that the Products are received and accepted (as per Article 4.4) by the Company, by wire transfer into an account designated
by Ferrer. In the event that the Company doesn’t fulfill such terms, Parties agree to discuss in good faith alternative
payment conditions. In case there i~ not an agreement between the Parties after 30 days, the Company will accept an irrevocable
and guaranteed letter of credit payable as term of payment.

 

Additionally,
Parties agree to share exchange EUR/USO rate fluctuations covering the payment of royalties. More concretely, within the first
30 days after every calendar year, Ferrer will calculate the average annual EUR/USO rate based on the EUR/USO rates published
in the Financial Times the last business day of every month. Such EUR/USO average rate will be compared with the rate applied
in every invoice during the year. If, as a result of this reconciliation, there arises a difference above or under [***]%, Parties
agree to share the resulting amount on an equitable basis (50% each). Ferrer will report the reconciliation to the Company for
its acceptance and, after 15 business days, issue an invoice which will be debited/credited in the next 30 days by wire transfer
into the accounts designated by the Parties.

 

4.3
Minimum batch quantities.

 

All
orders for Products hereunder shall be for minimum batch quantities as agreed upon by the Parties through the JSC. Forecasts,
orders and deliveries of the Product shall be expressed in terms of a multiple of such standard batch quantity. All shipments
of Products shall be made [***].

 

    	12
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

4.4
Supply conditions:

 

The
Company will promptly examine the Products delivered by Ferrer for compliance, damages, defects or shortage. The Company will
be deemed to have waived claims for non-conformity if no such claims are notified to Ferrer within fifteen (15) business days
after actual receipt by the Company. In the event that the Company notifies Ferrer that the Products supplied are defective, Ferrer
will replace the defective amount free of charge. In the event that Ferrer disagrees with the Company’s defective Product
claim, the issue shall be submitted to a mutually agreed upon independent third party lab, whose decision shall be final and binding
upon the Parties. The costs arising from the lab’s intervention and the costs of the replaced Products (including return
and destruction costs of the defective Products) shall be borne by the Party whose results were mistaken.

 

Both
Parties commit to negotiate in good faith and sign, not later than the 120 days before the anticipated Launch Date, a Quality
Assurance and Technical Agreement with regards to the assignment of roles and responsibilities of the Parties with regards to
certain technical and logistical matters related to the manufacturing, packaging, storing and quality assurance operations of
the Products, rights and obligations relative to recalls, FDA compliance, etc.

 

4.5
During the term of this Agreement, both Parties may agree, through an addendum duly signed by the Parties, to a change of
its respective rights, obligations and responsibilities with respect to the manufacture, development and/or commercialization
of the Products.

 

ARTICLE
5. OTHER OBLIGATIONS

 

5.1
Registration Work. The Company will act as the U.S. regulatory agent on behalf of Ferrer with respect to the Marketing Authorizations,
including the NOA. Ferrer will use its best efforts to assist in the Company’s Registration Work activities, including,
but not limited to, with respect to the NOA, by providing the Company (in English) all available information in Ferrer’s
direct or indirect possession or control relating to the Products, the Development Work, the Ferrer Technology, Improvements,
and other data, study reports, summaries, communications, etc. (including all relevant Toyama data and documents) that may be
necessary for the NOA filing and other Registration Work reasonably requested by the Company, provided that all such information
is determined by Ferrer, in good faith, to be (i) relevant to, and necessary for, the Registration Work activities; (ii) related
to the Field and Territory; and (iii) permitted by Ferrer to be transmitted to the Company through no breach of any Third Party
agreement or contract. The Company will collect, compile and review the documentation required to be included in the NDA, and
will prepare the NDA for filing. If necessary, final review and approval for submission of the Marketing Authorization, including
the NOA, shall remain with Ferrer.

 

    	13
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In
furtherance of the provisions of this Section 5.1, the Parties shall, as the same relates to the NOA and the other Registration
Work, (a) promptly advise each other of the content of all communications (oral and written) they may have with the FDA and provide
each other with copies of all material written communications and (b) invite the other Party to participate in all conference
calls and meetings with the FDA. Moreover, Ferrer shall (a) promptly advise the FDA that the Company is acting as Ferrer’s
U.S. regulatory agent on behalf of Ferrer to manage and prosecute the NOA and (b) authorize the FDA to communicate directly with
the Company with respect to the NOA.

 

5.2
Company’s obligations:

 

5.2.1
Artwork. The Company will (i) approve and submit final artwork to Ferrer’s (or its designee’s) production plant
in order for printed packaging materials to be fabricated, (ii) communicate any changes in the packaging material with time enough
to allow Ferrer to introduce them by the earliest possible date and (iii) submit any changes to the final artwork or packaging
material to the health authorities for any Regulatory Approval (if required).

 

5.2.2
Company requested changes. In the event the Company, based upon market conditions, requests Ferrer to change the specifications
or quality aspects of the Products, the Company shall promptly advise Ferrer in writing of such request. Such amendments may only
be implemented following a technical review by Ferrer and in the event that such changes directly impact Ferrer’s scheduling
or costs, Ferrer shall promptly advise the Company as to any scheduling, out-of-pocket expenses, capital expenditure costs, and/or
price adjustments caused by such changes.

 

Prior
to implementation of such changes, the Parties agree to negotiate in good faith and attempt to reach agreement through the JSC,
on (i) the new price for any Products which embody such changes, provided that the price shall not change more than the direct
effect of such changes on Ferrer’s costs for the Products, and (ii) any other amendments to this Agreement which may be
necessitated by such changes (e.g., an adjustment to the lead time for purchase orders). For the avoidance of doubt, Ferrer is
under no obligation to make any changes to the specifications absent mutual agreement on the foregoing.

 

All
costs arising from the destruction of any remaining stock of packaging material shall be borne by the Company if the requirement
for a change in packaging materials comes from the Company.

 

5.2.3
Changes required by applicable law. If Ferrer is required to change the specifications in order to comply with the requirements
of the FDA or any other Governmental Authority, Ferrer will promptly notify the Company of such changes and the cost of such changes
shall be borne by Ferrer unless the mentioned variation, in the opinion of the JSC, entails a benefit to the Company, in which
case the costs arising from the changes and its implementation shall be borne by the Company.

 

5.2.4
Changes required by the Health Authorities. If changes in the packaging material are due to a requirement by the FDA or any
other Governmental Authority, the costs arising from the destruction of the remaining stock of packaging material shall be borne
equally by both Parties.

 

    	14
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

5.3
Both Parties’ obligations:

 

5.3.1
Safety monitoring: The Parties, through the JSC, shall discuss and establish standard operating procedures (SOPs) for exchange
of any and all information on serious Adverse Drug Events as defined by any regulatory Governmental Authority (hereinafter referred
to as “ADE”) and any other ADE in connection with any use of the Compound and/or the Products which the Parties are
obligated to report to any regulatory authorities or Governmental Authority in accordance with applicable regulations or requirements.
Such procedures shall be established at such time as considered relevant by the Parties, but in any event shall be established
so as to enable the Company and Ferrer to comply with all regulatory and legal requirements and the terms of any regulatory approval.
The Company and Ferrer shall promptly exchange any and all data or other information which is either acquired or otherwise becomes
known to them regarding ADEs associated with or related to the use of the Compound or the Products.

 

ARTICLE
6. REGISTRATION WORK. DEVELOPMENT WORK. AND REPORTING

 

6.1
Registration Work:

 

The
Company, provided that Ferrer has, and continues to, comply with its covenants and obligations set forth in this Agreement, including
pursuant to Article 5.1 above and Article 6.2 below, shall conduct and be responsible for:

 

	 	(i)	the
    Registration Work, preparing the NOA or other applications, filing drug approval applications, including the NOA, answering
    any filing review issues and meeting with regulatory authorities,
	 	 	 
	 	(ii)	obtaining
    from the relevant Authorities in the Territory, and for maintaining in force, all Marketing Authorizations and Regulatory
    Approvals in the Territory in Ferrer’s name,
	 	 	 
	 	(iii)	obtaining
    the Marketing Authorization in Ferrer’s name,
	 	 	 
	 	(iv)	obtaining
    and maintaining all other licenses and certificates required for the wholesale and/or retail sale of the Products,
	 	 	 
	 	(v)	to
    pay all costs and expenses in connection with the Marketing Authorization and the other costs of obtaining Regulatory Approval
    within the Territory, including, but not limited to, the payment to the FDA of the NOA PDUFA filing fee, as well as expenses
    for obtaining and maintaining all such licenses and commercializing the Products within the Territory using similar endeavors
    to market the Products as it uses to market its own products,
	 	 	 
	 	(vi)	to
    pay all costs and expenses in connection with the development, registration and supply unit cost of a 3 gm sample size of
    the Products for use in the Territory, and
	 	 	 
	 	(vii)	to
    comply at all times, in all material respects, with any and all rules which may govern its activities under this Agreement.
    In particular, any commercial, product advertising, participation in exhibitions, cooperation with trade representatives and
    others, promotional and other advertising activities of the Company in connection with the Products shall at all times be
    made under compliance, in all material respects, with the rules which apply to these activities in the Territory.

 

    	15
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

Ferrer
acknowledges that the Company, notwithstanding its efforts, does not guarantee that its efforts will result in the approval by
the FDA of the NDA or the issuance of any or all required Marketing Authorizations.

 

The
Company shall use the Original Data, the Additional Data and the Compound only for the purposes contemplated by this License Agreement.

 

To
the extent not already covered in Article 5.1 above, Ferrer, upon written request of the Company, shall provide the Company, in
English, with the necessary documents relating to the Products (sufficient quantity of standard and working samples) and/or other
information, for carrying out registration of the Products and procuring the Marketing Authorization in the Territory.

 

6.2
Development Work:

 

Ferrer,
at its own cost, will be responsible for the execution and completion (in accordance with the protocol entitled “[***]”
and dated 3/Feb/2014, contained in Ferrer’s e-data room at the Effective Date) of the Second Phase Ill Trial (including
all clinical, safety monitoring and associated clinical regulatory duties) as well as all CMC and toxicology work required for
the NOA filing and the Marketing Authorization and contemplated and discussed by the Parties as of the Effective Date.

 

In
addition, throughout the term of this Agreement, Ferrer (or its designee) will be in charge of the manufacturing and formulation
activities for the production of the API Ozenoxacin (“API”) and secondary manufacture to convert such API into Products.
Ferrer covenants and agrees that during the term of this Agreement it will maintain adequate supplies of API so that all Products
can be manufactured and delivered to the Company in accordance with the terms set forth in purchase orders the Company will, from
time to time during the term of this Agreement, deliver to Ferrer (or its designee). In addition, Ferrer covenants that all manufacturing
sites responsible for the production of API throughout the term of this Agreement shall remain in good standing with the FDA

 

Any
Improvement to the manufacturing process that is made by or on behalf of Ferrer that results in (i) improved quality of Products;
(ii) improved technology or use of best practices or cGMP relating to the manufacture of the Products or (iii) less waste, increased
yield or costs savings for Ferrer associated with the manufacture of the Products, shall be owned by Ferrer.

 

    	16
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

The
Company, at its own expense, shall be responsible for producing the registration package within the Territory. However, as required,
Ferrer shall use its best efforts to cooperate with the Company, in all reasonable respects, in achieving the registration package.

 

6.3
Additional studies:

 

6.3.1
In case any additional Development Work beyond the Second Phase Ill Trial is required by a Governmental Authority, including
the FDA, whether before or after the FDA accepts the NOA for review, the Company and Ferrer, in good faith and through the JSC,
shall determine the most prudent manner in which to have such additional Development Work completed and the most equitable manner
in which to allocate the costs of such additional Development Work.

 

6.3.2
Notwithstanding the foregoing, if the Company unilaterally wishes to perform additional studies in the Territory, including
marketing studies within the Field, the cost of such additional studies shall be borne by the Company, unless otherwise agreed
to by the Parties through the JSC (taking into account the proportional benefit that may be derived by each of the Parties from
such additional studies).

 

6.3.3
To the extent the Parties agree to co-invest with respect to the Compound or the Products beyond the NOA, the Company and
Ferrer, in good faith and through the JSC, shall determine the most prudent manner in which to proceed with such co-investment
and the most equitable manner in which to allocate the costs of such co-investment.

 

6.4
Reporting

 

Via
the JSC, the Company shall inform Ferrer on the progress of the Registration Work and its commercialization and marketing activities
relative to the Products and Ferrer shall inform the Company on the progress of the Development Work. Updates shall be on a regular
basis, but at least quarterly. In the event that additional studies are performed pursuant to Article 6.3 above, the Parties,
via the JSC, shall keep each other appraised of the progress of such additional studies, their results and any Improvements made
by such Party arising from such additional studies.

 

During
the term of this Agreement, the Company, via the JSC, shall keep Ferrer informed about sales volume, in units and value, Net Sales
and market conditions on a quarterly basis. The Company, via the JSC, shall also keep Ferrer informed on a semi-annual basis of
its marketing plans, relevant marketing conditions, and marketing intelligence data on the therapeutic areas where the Products
are being sold.

 

6.5
Publications: With regards to the title and right to publish and/or otherwise disclose or present test results, documentation,
records, raw data, specimens or other work product generated in connection with the performance of this Agreement, the Parties
shall reach an agreement, in good faith and via the JSC, provided, however, that both Parties shall at all times respect and preserve
all intellectual and other proprietary rights and interests of the other Party.

 

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	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

ARTICLE
7. AUDIT

 

Ferrer
may, upon seven (7) days advance notice, during normal working hours, inspect the Company’s facilities and equipment used
for quality control, storage and shipping of the Products. During such inspection, Ferrer’s representatives may inquire
about Products quality control matters, including, without limitation, the qualifications of the employees conducting Products
quality control activities and the techniques and procedures used by such employees in conducting such Products quality control
activities.

 

The
Company shall provide Ferrer’s representatives with reasonable (as necessary) access to the Company’s facilities in
order that these representatives may carry out their inspection.

 

The
Company agrees that it shall use its commercially reasonable efforts, as soon as practicable after its receipt of an inspection
report signed by Ferrer or its consultants performing such inspection or audit, at its own expense, to remedy any and all material
discrepancies/deficiencies indicated in the said inspection report, provided, however, that the Company may object, within 10
days after its receipt of an inspection report, to any finding in the inspection or audit report that may require remediation,
in which case the Parties, via the JSC and within 20 days, shall appoint an independent Third Party inspector who shall, in good
faith and within 30 days of appointment, review each Party’s position and determine whether remediation is necessary.

 

The
Company may, upon seven (7) days advance notice, during normal working hours, inspect and audit the facilities used by Ferrer
for the manufacture, packaging, labeling, storage, shipping or quality control of the Products, provided, however, that such inspection
and audit is limited to matters pertaining to the Products only. In the event that such manufacturing facilities belong to a Third
Party, Ferrer shall use its best efforts to include this inspection right in the manufacturing agreement contemplated by Article
4.1 above.

 

Ferrer
agrees that it shall use its commercially reasonable efforts, as soon as practicable after its receipt of an inspection or audit
report signed by the Company or its consultants performing such inspection or audit, at its own expense, to remedy any and all
material discrepancies/ deficiencies indicated in the said inspection or audit report, provided, however, that Ferrer may object,
within 10 days after its receipt of an inspection or audit report, to any finding in the inspection or audit report that may require
remediation, in which case the Parties, via the JSC and within 20 days, shall appoint an independent Third Party inspector who
shall, in good faith and within 30 days of appointment, review each Party’s position and determine whether remediation is
necessary.

 

    	18
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

ARTICLE
8. JOINT STEERING COMMITTEE

 

The
Parties shall establish the JSC as a forum for information sharing and recommendations regarding, among other things, the commercialization
of the Products. The JSC shall be comprised of an equal number of representatives from each Party, with the intent being that
the JSC will initially be comprised of four (4) members, two (2) from each Party. One member from each Party’s JSC members
shall be part of such Party’s executive management team and will be selected as co-chair of the JSC. Additional members
may be added to the JSC by the Parties on an ad hoc basis as and when required.

 

If
the JSC is unable to reach a decision on any matter, either Party may, by notice to the other Party, have such dispute referred
to their senior officers as may be designated by each Party for attempted resolution by good faith negotiations within thirty
(30) days after such notice is received. In the event the designated officers are not able to resolve such dispute within such
thirty (30) day period, or such other period of time as the Parties may mutually agree in writing, then such dispute shall be
resolved according to Article 21.

 

The
JSC’s responsibilities shall include:

 

	 	(i)	an
    overall responsibility to encourage and facilitate communication and ongoing cooperation between the Parties and provide a
    forum to review and coordinate (a) any development issues, particularly progress on the Development Work and the manufacture
    of the Product and Compound, (b) any registration issues, particularly progress on the Registration Work, (c) marketing and
    other commercialization matters pertaining to the Products in the Territory and (d) dispute resolution.
	 	 	 
	 	(ii)	facilitating
    information exchange between the Parties regarding pharmacovigilance outside the Territory and potential development activities
    inside and outside the Territory and alignment of interests;
	 	 	 
	 	(iii)	promptly
    discussing potential infringement issues and negotiating in good faith next steps/ resolution, etc. In this regard, both Parties
    shall reasonably and mutually collaborate if any of them are aware of any such infringement. Both Parties shall collaborate
    on the necessary exchange of information and/or documentation available in order that either Party may take adequate actions
    with respect to such infringement.
	 	 	 
	 	(iv)	acting
    as a forum within which to discuss the forecasts for the Products which shall be provided by the Company to Ferrer;
	 	 	 
	 	(v)	performing
    such other obligations as, from time to time, may be delegated by the Parties under this Agreement; and
	 	 	 
	 	(vi)	discussing
    the prices (and any changes to them) of the Products as may be ordered (or not) by any Governmental Authority and the commercial
    impact thereof.

 

    	19
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

The
JSC’s co-chairs shall be responsible for scheduling and circulating an agenda 10 days prior to meetings of the JSC and for
leading the meetings. Prior to FDA approval of the Product, the JSC shall meet at least quarterly. Thereafter, the JSC shall meet
at least once a year during the Term, unless otherwise mutually agreed. The location of meetings of the JSC shall alternate between
the Company’s principal place of business and Ferrer’s principal place of business or as otherwise agreed by the Parties.
The JSC may also meet by means of a telephone conference call or videoconference. Unless otherwise agreed by the Parties, following
each meeting of the JSC, the co-chairs shall jointly prepare minutes of such meeting to be distributed to all JSC members within
10 days of such meeting, which minutes will subsequently be agreed upon and approved within 5 days of circulation. Each Party
will be responsible for their own expenses associated with attendance of JSC meetings, including those of any invitees that may
attend on behalf of a particular Party.

 

ARTICLE
9. CONFIDENTIALITY

 

9.1
Confidential Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the
Parties, each Party agrees that, during the Term and for five years thereafter, such Party (the “Receiving Party”)
shall keep and shall not publish or otherwise disclose and shall not use for any purpose, other than as expressly provided for
in this Agreement, any Information furnished to it by or on behalf of the other Party (the “Disclosing Party”) pursuant
to this Agreement (collectively, ” Information”). All the information and/or documentation disclosed by one Party
to the other Party prior to the Effective Date pursuant to the Non-Disclosure Agreement executed by Ferrer and Company as of March
8, 2013, shall be deemed the Information of the Disclosing Party for purposes of this Agreement. The Receiving Party may use Information
of the Disclosing Party only to the extent required to accomplish the purposes of this Agreement. The Receiving Party will use
at least the same standard of care as it uses to protect proprietary or information of its own, but no less than reasonable care,
to ensure that its, and its Affiliates’, employees, agents, consultants and other representatives do not disclose or make
any unauthorized use of the Information. The Receiving Party will promptly notify the Disclosing Party upon discovery of any unauthorized
use or disclosure of the Information.

 

9.2
Exceptions. Information shall not include any information which the Receiving Party can prove by competent evidence: (a) is
now, or hereafter becomes, through no act or failure to act on the part of the Receiving Party, generally known or available;
(b) is known by the Receiving Party at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished
to the Receiving Party by a Third Party, as a matter of right and without restriction on disclosure; or (d) is independently discovered
or developed by the Receiving Party without the use of Information of the Disclosing Party, as evidenced by the Receiving Party’s
written records maintained in the ordinary course of business.

 

    	20
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9.3
Authorized Disclosure. Each Party may disclose Confidential Information of the other Party as expressly permitted by this
Agreement, or if and to the extent such disclosure is necessary in the following instances: (a) filing or prosecuting Patents
as permitted by this Agreement; (b) enforcing such Party’s rights under this Agreement; (c) prosecuting or defending litigation
to the extent permitted by Article 17 of this Agreement; (d) complying with applicable court orders or applicable laws, rules
and regulations; (e) in regulatory filings and submissions to Governmental Authorities with respect to the Products that such
Party has the right to make; (f) disclosure to Affiliates, licensees and sublicensees, potential licensees and sublicensees, contractors,
employees and consultants who need to know such information for the development, manufacture and commercialization of Products
in accordance with this Agreement, on the condition that any such Third Parties agree to be bound by confidentiality and non-use
obligations that are no less stringent than the terms of this Agreement; each Party shall be liable for the breach, failure or
non-fulfillment of its Affiliates, licensees and sublicensees, potential licensees and sublicensees, contractors, employees and
consultants; and (g) disclosure to Third Parties in connection with due diligence or similar investigations, provided that any
such Third Party agrees to be bound by reasonable obligations of Confidentiality and non-use.

 

Notwithstanding
the foregoing, In the event a Party is required to make a disclosure of the other Party’s Information pursuant to Articles
9.3(c) or (d), it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure and use
efforts to secure treatment of such information at least as diligent as such Party would use to protect its own information, but
in no event less than reasonable efforts. In any event, the Receiving Party agrees to take all reasonable action to avoid disclosure
of Information hereunder.

 

9.4
Confidentiality of this Agreement. Except as otherwise provided in this Article 9, each Party agrees not to disclose to any
Third Party the terms of this Agreement without the prior written consent of the other Party hereto, except that each Party may
disclose the terms of this Agreement that are otherwise made public as contemplated by Article 9.5 or to the extent such disclosure
is permitted under Article 9.3.

 

9.5
Publicity. It is acknowledged that each Party may desire or be required to issue press releases relating to this Agreement
or activities hereunder. The Parties agree to consult with each other reasonably and in good faith with respect to the text and
timing of any such press release prior to the issuance thereof, provided that a Party may not unreasonably withhold consent to
such releases, and that either Party may issue such press releases as it determines, based on advice of counsel, are reasonably
necessary to comply with applicable law. In the event of a required public announcement, to the extent practicable under the circumstances,
the Party making such announcement shall use commercially reasonable efforts to provide the other Party with a copy of the proposed
text of such announcement sufficiently in advance of the scheduled release to afford such other Party a reasonable opportunity
to review and comment upon the proposed text.

 

    	21
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

9.6
Publications. Each Party recognizes that the publication of results of research and development of Products in the Field in
the Territory, such as by manuscript, oral presentation or abstract, may be beneficial to both Parties, provided that such publications
are subject to reasonable controls to protect Information and to preserve patentability of inventions. At least 45 days prior
to submission for publication or public presentation of any material proposed for publication or initiation of any other public
presentation by a Party that includes Information of the other Party and/or any data generated as a result of performance of Development
Work, such Party shall deliver a complete copy of such material to the other Party for review and comment. The non-publishing
Party shall review any such material and give its comments to the Party proposing publication within 30 days of the delivery to
it of such material. The Party proposing publication shall comply with the other Party’s request to delete references to
the other Party’s Information in any such material and agrees to delay any such submission for publication or other public
disclosure for up to an additional 60 days, or after filing of a patent application, whichever is the later date.

 

ARTICLE
10. WARRANTIES AND REPRESENTATIONS

 

10.1
Joint representations and warranties.

 

Each
Party hereby represents, warrants and covenants (in addition to any other representations, warranties and covenants set forth
elsewhere in this Agreement) that this Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance
with its terms. The execution, delivery and performance of this Agreement by such Party does not conflict with any other agreement,
instrument or understanding, oral or written, to which it is a Party or by which it is bound, nor violate any law or regulation
of any court, Governmental Body or administrative or other agency having jurisdiction over it.

 

10.1.1
The Company and Ferrer each warrants and represents as of the date of the execution hereof, that:

 

(i)
it has full right, power and authority to enter into this Agreement, and in doing so will not breach or infringe upon any other
agreement or violate any statute, law, order, or regulation of any relevant Governmental Body;

 

(ii)
The person signing this Agreement is vested by the entity on whose behalf it is signing with full authority to legally bind it
to this Agreement; that such entity has the requisite power and authority and the legal right to enter into this Agreement and
to perform its obligations hereunder, and has taken all necessary corporate action on its part to authorize the execution and
delivery of this Agreement and the performance of its obligations hereunder;

 

(iii)
it has sufficient means to perform its obligations under this Agreement;

 

(iv)
it is not a Party to any agreement with any Third Party that prohibits it from performing its obligations under this Agreement
or limits its ability to fulfill the terms of this Agreement (except as otherwise expressly set forth herein);

 

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(v)
it shall comply with all applicable laws, rules, guidelines, regulations and industry codes of practice, including those related
to anti-bribery and anti-corruption;

 

(vi)
it and all persons employed or acting on its behalf (including employees, directors, agents, consultants and approved subcontractors)
will not:

 

	 	-	give,
    or offer to give, directly or indirectly, money or anything else of value in any form to any person to secure a business advantage,
    to obtain or retain business or to direct business to or away from any person/ entity to benefit Ferrer or the Company; and/or
	 	 	 
	 	-	accept,
    receive or agree to accept or receive, directly or indirectly, any money, or anything else of value in any form, from any
    person, to secure a business advantage, to obtain or retain business or to direct business to any person/ entity or away from
    any person/ entity to benefit Ferrer or the Company; and/or
	 	 	 
	 	-	provide
    any facilitation payment or bribe to any government official or employee of a government agency (including government hospitals
    or healthcare institutions) or Governmental Authority to expedite routine government actions that the official or employee
    is already bound to perform; and

 

(vii)
it shall, at its own cost, maintain adequate and accurate books and records that in reasonable detail accurately and fairly reflect
transactions with respect to the performance of its obligations under this Agreement, including records of payments made by or
to, and expenses incurred by it in relation to, this Agreement, and shall retain these records until the later of (a) two (2)
years after expiry or termination of this Agreement or (b) as required by applicable laws.

 

10.2
Additional Representations of Ferrer

 

Ferrer
represents and warrants to the Company that, as of the Effective Date:

 

(i)
Ferrer has not granted to any Third Party any license or other right with respect to Compound, Products or Ferrer Technology that
conflicts with the rights granted to the Company herein;

 

(ii)
other than the Toyama License, there are no agreements in effect as of the Effective Date between Ferrer and a Third Party under
which rights with respect to the Ferrer Technology are being licensed to a Third Party;

 

(iii)
to the best of Ferrer’s knowledge, information and belief, Ferrer is not infringing (and does not guarantee that under its
knowledge is infringing) upon any Third Party patent or the intellectual property rights of any Third Party relating to the Compound
or the Products. In addition, Ferrer can make no representations or warranties regarding any possible future infringement of Ferrer
Patent by a Third Party nor guarantee that the Products (nor the Compound) do not infringe future patents and/or any intellectual
property right of a Third Party.

 

    	23
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(iv)
to the best of Ferrer’s knowledge, information and belief, no Third Party is infringing or threatening to infringe any Ferrer
Patent in the Field in the Territory;

 

(v)
to the best of Ferrer’s knowledge, information and belief, there are no pending or threatened actions, suits, proceedings,
investigations or inquiries, or judgments, decrees, injunctions, awards or orders issued against it, involving or related to any
matters set forth herein or rights granted hereunder; and

 

(vi)
the Toyama License is in effect and has not been terminated by either party to it, and neither Ferrer nor Toyama has threatened
to terminate the Toyama License.

 

In
addition, during the Term, Ferrer shall not assign the Toyama License to any Third Party or transfer or assign its interest in
any Ferrer Technology to any Third Party except in conjunction with a permitted assignment of this Agreement pursuant to Article
16.

 

10.3
Non-compete.

 

If
the Company, for more than six (6) consecutive months during the term of this Agreement, as determined by the JSC, is not using
commercially reasonable efforts to promote, market and otherwise commercialize the Products (assuming Ferrer has been, and continues
to be, capable of supplying the Company with Products), then the Company will be prohibited, without the written consent of Ferrer,
from promoting, manufacturing, selling, distributing and/ or marketing any other product which, in the opinion of the JSC, could
materially adversely impact the Company’s sales of the Products in the Field in the Territory. The obligation of non-compete
will remain in force until the earliest of (a) six (6) months following the expiration of the last to expire of the Ferrer Patents,
(b) the entry of a Generic into the market in the Territory and (c) termination of this Agreement pursuant to Article 13.4 below.

 

ARTICLE
11. INDEMNIFICATION AND HOLD HARMLESS

 

11.1
Indemnification by the Company.

 

The
Company shall indemnify and hold Ferrer harmless from any and all losses, damages, liabilities, costs, charges, expenses, including
court fees and reasonable lawyers’ fees and other legal expenses, including, without limitation, the allocated expense of
in-house attorney services (collectively, “Losses”), to which Ferrer may become subject as a result of any claim,
complaint, suit, demand, action or other proceeding by any Third Party (collectively “Claims”) to the extent such
Losses arise out of or are in connection with: (i) the development, use , storage, handling, distribution, marketing or selling
of the Compound or Products by the Company and its Affiliates (excluding any of the foregoing activities conducted by Ferrer,
any of its Affiliates, or Ferrer’s contract manufacturers of API or Products); (ii) the negligence or willful misconduct
of the Company; (iii) the breach or non-fulfilment by the Company of its obligations according to this Agreement and/or any Law
in force; or (iv) a breach by the Company of any warranty, representation, covenant or agreement made by it in this Agreement;
except, in each case, to the extent such Losses result from: (a) the negligence or willful misconduct of Ferrer or (b) the breach
by Ferrer of any warranty, representation, covenant or agreement made by it in this Agreement and to the extent that such negligence,
willful misconduct or breach is stated by a final court decision.

 

    	24
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11.2
Indemnification by Ferrer.

 

Ferrer
shall indemnify and hold the Company harmless from any and all Losses to which the Company may become subject as a result of any
Claim, to the extent such Losses arise out of or are in connection with: (i) the development, use, manufacturing, storage, handling
or distribution of the Compound by Ferrer or any of its Affiliates and the development and/or use of the Products by Ferrer or
any of its Affiliates or contract manufacturers of Products (excluding any of the foregoing activities conducted by the Company
and/or any of its Affiliates); (ii) the negligence or willful misconduct of Ferrer; (iii) the breach or non-fulfilment by Ferrer
of its obligations according to this Agreement and/or any Law in force; or (iv) a breach by Ferrer of any warranty, representation,
covenant or agreement made by it in this Agreement; except, in each case, to the extent such Losses result from: (a) the negligence
or willful misconduct of the Company or (b) the breach by the Company of any warranty, representation, covenant or agreement made
by it in this Agreement and to the extent that such negligence, willful misconduct or breach is stated by a final court decision.

 

11.3
Limitation of Liability.

 

Neither
Party will be liable to the other for penalties or liquidated damages or for special, indirect, consequential, punitive, exemplary
or incidental damages of any type or kind (including, without limitation, lost profits) except if these damages arise from an
intentional act or omission of the other Party.

 

11.5
No Other Warranties. EXCEPT FOR THE EXPRESS WARRANTIES CONTAINED IN THIS AGREEMENT, THERE ARE NO OTHER WARRANTIES, EXPRESS
OR IMPLIED, REGARDING THE COMPOUND OR THE PRODUCTS AND EACH PARTY DISCLAIMS ALL OTHER EXPRESS AND IMPLIED WARRANTIES, INCLUDING
(A) THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT, (B) ANY IMPLIED WARRANTIES
ARISING FROM ANY COURSE OF DEALING, USAGE OR TRADE PRACTICE AND (C) ANY CONSEQUENTIAL OR INDIRECT LOSS OR DAMAGE OR LOSS OF PROFIT
OF WHATSOEVER NATURE, INCLUDING DAMAGE TO GOODWILL OR LOSS OF MARKET SHARE, EXISTING OR PROSPECTIVE.

 

11.6
Insurance. From the Effective Date until at least two (2) years following the date of expiration, or sooner termination, of
this Agreement, each Party shall, at its own cost and expense, obtain and maintain in full force and effect appropriate insurance
with a recognized and reputable insurer in line with nationally accepted limits. Upon request, each Party shall furnish the other
with a certificate of insurance signed by the insurance underwriter. Any insurance policies written on a claims-made form shall
include an extended reporting period provision of not less than two (2) years, or the shelf-life of the Products, following the
expiration or earlier termination of this Agreement.

 

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ARTICLE
12. LICENSE OF TRADEMARKS AND MARKETING AUTHORIZATION

 

The
Company shall have the right to promote and sell the Products under a trademark, logo, device, name or trade name selected by
the Company in connection with the packaging and labeling of the Products under this Agreement. Notwithstanding, the chosen trademark,
logo, device, name or trade name to commercialize the Products (hereinafter jointly the “Trademarks”) shall be registered
and owned by Ferrer within the Territory. By means of this Agreement, Ferrer grants to the Company a royalty-free, exclusive license
to use the Trademarks in any reasonable and lawful manner the Company deems appropriate for the Company’s marketing, promotion
and other commercialization of the Products in the Territory. The Company shall not acquire any property right, title or interest
(different than herein stated) to or in such Trademark. This license shall be conditioned upon the Company not having committed
any material breach of this Agreement. Upon the expiry or sooner termination of this Agreement, this license shall automatically
terminate.

 

In
addition, by means of this Agreement, Ferrer grants to the Company a royalty-free, exclusive license to use the Marketing Authorization
in any reasonable and lawful manner the Company deems appropriate for the Company’s marketing, promotion and other commercialization
of the Products in the Territory. The Company shall not acquire any property right, title or interest (different than herein stated)
to or in such Marketing Authorization. This license shall be conditioned upon the Company not having committed any material breach
of this Agreement. Except as otherwise contemplated in this Agreement, this license shall automatically terminate upon the expiry
or sooner termination of this Agreement.

 

ARTICLE
13. TERM AND TERMINATION

 

13.1
This Agreement shall come into force on the Effective Date and shall remain in force, unless earlier terminated pursuant to
the mutual agreement of the Parties or any provision hereof, until the later of (i) the date that is twelve (12) years following
the Launch Date or (ii) twelve (12) years from the date of launch of the latest to launch of any New Product contemplated by Article
19 hereof.

 

13.2
Notwithstanding anything herein to the contrary, this Agreement will be automatically terminated concurrently with the termination
of the Toyama License. Ferrer covenants that throughout the term of this Agreement it will use its commercially reasonable efforts
to negotiate and secure an extension to the Toyama License so that the Company can maximize its investment hereunder and continue
to promote, market and

 

    	26
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

commercialize
the Products in the Territory beyond the current term of the Toyama License.

 

The
Parties further acknowledge and agree that, notwithstanding anything in this Agreement to the contrary, they will use their commercially
reasonable efforts to cause Ferrer to continue to own and/ or have legal rights to the Marketing Authorization, the Products and/
or the Compound following the expiration of the Toyama License. In this regard, the Parties acknowledge that it is their intention
that the Company, provided it is not in default, in any material respect, under this Agreement, continue having the exclusive
right to market, promote and otherwise commercialize the Products in the Territory in accordance with this Agreement for so long
as Ferrer has ownership and/ or legal rights to the Marketing Authorization, the Products and/ or the Compound.

 

13.3
Ferrer shall have the right to terminate this Agreement by giving a written notice thereof to the Company in any of the following
cases:

 

	 	(a)	If
    the Company fails to commence marketing, promoting or otherwise commercializing the Products in the Territory within a period
    of six (6) months after the date the Company or Ferrer obtains the Regulatory Approval or Marketing Authorization for the
    Products from the relevant Governmental Authorities, unless: (i) the Company is legally barred or prevented from doing so,
    in which case the Company will exercise its commercially reasonable efforts to remove such disability and commence marketing
    as soon as legally possible; or (ii) such failure to commence marketing, promoting and commercializing the Products in the
    Territory is due to Ferrer’s failure to supply the Company with initial launch quantities of trade units and samples
    of the Products within such six-month period, in which case Ferrer shall not be entitled to terminate this Agreement pursuant
    to this Article 13.3(a) unless the Company fails to commence marketing, promoting and commercializing the Products within
    six (6) months after Ferrer supplies the Company with such initial launch quantities of trade units and samples of the Products;
    or
	 	 	 
	 	(b)	If
    the Company applies for or consents to the appointment of a receiver, trustee or liquidator for all or a substantial part
    of its assets; admits in writing its inability to pay its debts generally as they mature; makes a general assignment for the
    benefit of creditors; is adjudicated a bankrupt; submits a petition or an answer seeking an arrangement with creditors; takes
    advantage of any insolvency law except as a creditor; submits an answer admitting the material allegations of a petition in
    bankruptcy or insolvency proceeding; has an order, judgment or decree entered by any court of competent jurisdiction approving
    a petition seeking reorganization of it or appointing a receiver, trustee or liquidator for it, or for all or a substantial
    part of any of its assets and such order, judgment or decree shall continue unstayed and in effect for a period of ninety
    (90) consecutive days; files a voluntary petition of bankruptcy or fails to remove an involuntary petition in bankruptcy filed
    against it within ninety (90) days of the filing thereof, and in all of such events the continuity of the Agreement is materially
    affected as determined by the JSC; or

 

    	27
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

	 	(c)	If
    the JSC determines that the requirements of the competent Governmental Authority related to the Compound and/or the Products
    cannot be fulfilled in the Territory, or that the continued development or commercialization of the Products is ethically
    irresponsible, or that the Products are not economically viable; or
	 	 	 
	 	(d)	If
    the Company, as determined by the JSC, commits a material breach or material default in the performance or observance of any
    of its obligations, warranties or representations under this Agreement and such breach or default is not cured within sixty
    (60) days after receipt by the Company of written notice from Ferrer specifying the breach or default (or in the case of any
    such default or breach that is not capable of being cured within sixty (60) days, the Company has commenced to cure such default
    or breach within sixty (60) days after receipt of such notice thereof, but has failed to complete the cure of such breach
    or default within ninety (90) days after written notice thereof or such longer period as the Parties may mutually agree upon
    in writing); or
	 	 	 
	 	(e)	If,
    after the Launch Date, the JSC determines that the Company, for at least six (6) consecutive months, has ceased using its
    commercially reasonable efforts to market, promote and otherwise commercialize the Products in the Territory (assuming Ferrer
    has been, and continues to be, capable of supplying the Company with Products); or
	 	 	 
	 	(f)	If
    the Company (subject to Article 16 below) undergoes a Change of Control and such change, as determined by the JSC, has a significant
    detrimental effect on Ferrer’s revenues arising out of the performance of this Agreement; or
	 	 	 
	 	(g)	If
    the Company and/or its Affiliates, during the term of this Agreement, promotes and/or sells, commercializes, distributes or
    markets within the Territory a competitor of the Products (specifically excluding any authorized non-branded version of the
    Products as contemplated by Article 2.2 below) and, as a consequence thereof, sales of the Products, as determined by the
    JSC, are materially adversely affected for six (6) consecutive months.

 

13.4
The Company shall have the right to terminate this Agreement by giving a written notice thereof to Ferrer in any of the following
cases:

 

	 	(a)	If
    Ferrer fails to supply the Company with initial launch quantities of trade units and samples of the Products within six (6)
    months after the date the Company (or Ferrer) obtains Regulatory Approval or Marketing Authorization in the Territory from
    the relevant Governmental Authorities for the Products (assuming the Company has delivered to Ferrer purchase orders for initial
    launch quantities of trade units and samples of the Products), unless legally barred or prevented from doing so, in which
    case Ferrer will exercise its commercially reasonable efforts to remove such disability and provide the Company with initial
    launch quantities of trade units and samples of the Products as soon as legally possible; or

 

    	28
	[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED BECAUSE THE INFORMATION (I) IS NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

     

    

 

	(b)	If
    Ferrer applies for or consents to the appointment of a receiver, trustee or liquidator for all or a substantial part of its
    assets; admits in writing its inability to pay its debts generally as they mature; makes a general assignment for the benefit
    of creditors; is adjudicated a bankrupt; submits a petition or an answer seeking an arrangement with creditors; takes advantage
    of any insolvency law except as a creditor; submits an answer admitting the material allegations of a petition in bankruptcy
    or insolvency proceeding; has an order, judgment or decree entered by any court of competent jurisdiction approving a petition
    seeking reorganization of it or appointing a receiver, trustee or liquidator for it, or for all or a substantial part of any
    of its assets and such order, judgment or decree shall continue unstayed and in effect for a period of ninety (90) consecutive
    days; files a voluntary petition of bankruptcy or fails to remove an involuntary petition in bankruptcy filed against it within
    ninety (90) days of the filing thereof, and in all of such events is materially affected the continuity of the Agreement as
    determined by the JSC; or
	 	 
	(c)	If
    the JSC determines that the requirements of the competent Governmental Authority related to the Compound and/or the Products
    cannot be fulfilled in the Territory, or that the continued development or commercialization of the Products is ethically
    irresponsible, or that the Products are not economically viable; or
	 	 
	(d)	If
    Ferrer, as determined by the JSC, commits a material breach or material default in the performance or observance of any of
    its obligations or representations under this Agreement and such breach or default is not cured within sixty (60) days after
    receipt by Ferrer of written notice from the Company specifying the breach or default (or in the case of any such default
    or breach that is not capable of being cured within sixty (60) days, Ferrer has commenced to cure such default or breach within
    sixty (60) days after receipt of such notice thereof, but has failed to complete the cure of such breach or default within
    ninety (90) days after written notice thereof or such longer period as the Parties may mutually agree upon in writing); or
	 	 
	(e)	If,
    after the Launch Date, the JSC determines that Ferrer has ceased using its commercially reasonable efforts to supply the Company,
    in accordance with the Company’s written purchase orders, with the quantity of trade units and samples of the Products
    ordered by the Company (provided such quantities are reasonably within the amounts estimated in the Company’s rolling
    forecasts delivered from time to time to Ferrer and the JSC and Ferrer’s failure to supply has a materially adverse
    impact on the Company’s Net Sales of the Products).

 

    	29
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13.5
Notwithstanding anything herein to the contrary, and provided that the Company is then not in breach, in any material respect,
of this Agreement, if this Agreement is terminated pursuant to (i) Article 13.2, but and only as a consequence of the termination
of the Toyama License due to a material breach of Ferrer or (ii) Article134(a), (b), (d) or (e), then:

 

(a)
If such termination is effective (i) prior to the time that the Marketing Authorization is approved by the FDA or (ii) within
the first two (2) years following the time that the Marketing Authorization is approved by the FDA, Ferrer shall promptly return
to the Company [***]% of all amounts then to date paid by the Company to Ferrer pursuant to Article 3.1 of this Agreement (as
well as reimburse the Company for [***]% of the PDUFA fee paid by the Company) and the Company shall have no further monetary
obligation owing to Ferrer;

 

(b)
If such termination is effective during the third year following the time that the Marketing Authorization is approved by the
FDA, Ferrer shall promptly return to the Company [***]% of all amounts then to date paid by the Company to Ferrer pursuant to
Article 3.1 of this Agreement (as well as reimburse the Company for [***]% of the PDUFA fee paid by the Company) and the Company
shall have no further monetary obligation owing to Ferrer;

 

(c)
If such termination is effective during the fourth year following the time that the Marketing Authorization is approved by the
FDA, Ferrer shall promptly return to the Company [***]% of all amounts then to date paid by the Company to Ferrer pursuant to
Article 3.1 of this Agreement (as well as reimburse the Company for [***]% of the PDUFA fee paid by the Company) and the Company
shall have no further monetary obligation owing to Ferrer;

 

(d)
If such termination is effective during the fifth year following the time that the Marketing Authorization is approved by the
FDA, Ferrer shall promptly return to the Company [***]% of all amounts then to date paid by the Company to Ferrer pursuant to
Article 3.1 of this Agreement and the Company shall have no further monetary obligation owing to Ferrer;

 

(e)
If such termination is effective during the sixth year following the time that the Marketing Authorization is approved by the
FDA, Ferrer shall promptly return to the Company [***]% of all amounts then to date paid by the Company to Ferrer pursuant to
Article 3.1 of this Agreement and the Company shall have no further monetary obligation owing to Ferrer; and

 

(f)
If such termination is effective during the seventh year following the time that the Marketing Authorization is approved by the
FDA, Ferrer and the Company shall have no further monetary obligation owing to each other.

 

    	30
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For
the avoidance of doubt, the provisions of this Article 13.5 shall not apply if (i) the Company fails, breaches or does not fulfill
any of its obligations (by act and/or omission) under the agreement to be signed with the US CMO for the development, registration
and supply of trade and sample units of Products for commercialization in the Territory, (ii) any modification of the Toyama License
negotiated by Ferrer is in the Company’s favor, as determined by the JSC or (iii) a Generic market forms for the Products
in the Territory.

 

13.6
Notwithstanding anything in this Agreement to the contrary, (i) upon termination of this Agreement for any reason other than
pursuant to Article 13.3 above, the Company shall have six months to wind down its promotional and sales activities relating to
the Product (during which time it will be liable for any royalty payments that may accrue in accordance with Article 3.1 (c) above);
following this six (6) month wind down period, the Parties will promptly return to each other all tangible items of the other
Party in its possession or under its control, including all information of the other Party and (ii) upon termination of this Agreement
pursuant to Article 13.3 above, the Company shall immediately cease all promotional and sales activities relating to the Product
and the Parties will promptly return to each other all tangible items of the other Party in its possession or under its control,
including all Information of the other Party.

 

Articles
3.2., 5, 9, 10, 11, 13, 15 and 17 shall survive expiry or termination of this Agreement.

 

ARTICLE
14. FORCE MAJEURE

 

Neither
Party shall be liable for failure to perform its part of this Agreement when such failure is due to fire, flood, not prior planned
strikes, earthquakes, war (declared or undeclared), embargoes, blockades, legal restriction, riots, insurrections, acts of terrorism
or any cause beyond the control of the Parties.

 

The
Parties agree to use their diligent efforts to minimize the effects which any such cause has upon their respective obligations
under this Agreement.

 

ARTICLE
15. CONSEQUENCES OF THE CANCELLATION AND/OR TERMINATION OF THIS AGREEMENT

 

15.1
The termination of this Agreement shall neither impair the rights of either Party nor relieve either Party of its obligations
which may have accrued prior to the effective time of termination. Provided Ferrer is then not in default, in any material respect,
under this Agreement, the Company shall pay Ferrer all royalties and other amounts, if any, due and owing to Ferrer at the effective
time of termination. Such payments shall be made within sixty (60) days of termination. In particular, but subject to Article
13.5 above, in the event this Agreement is terminated for whatever reason after the achievement of a particular milestone event
set forth in Article 3.1 (a) above, then the Company shall have the obligation to make the milestone payment corresponding to
such milestone event to Ferrer, regardless of whether the due date of such milestone payment occurs prior to, on or after the
effective date of such termination.

 

    	31
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15.2
Except as otherwise contained in this Agreement or agreed to in the future by the Parties, upon termination of this Agreement,
the Company, upon request of Ferrer, shall return free of charge to Ferrer (or its nominee) all Ferrer information, Marketing
Authorizations, Ferrer Technology and/ or any other information or documentation that may be owned by Ferrer.

 

15.3
Unless otherwise agreed by the Parties, the Company shall be responsible for accepting and managing returns from its customers
after the termination of this Agreement of all Products then in the distribution channel.

 

ARTICLE
16. ASSIGNMENT

 

Neither
Party may assign this Agreement in whole or in part without the prior written consent of the other Party, provided, however, that
each Party may assign, totally or in a part, this Agreement to any of its Affiliates or to any purchaser of all or substantially
all of such Party’s assets or stock or to any successor by way of merger, consolidation or similar transaction.

 

ARTICLE
17. INTELLECTUAL PROPERTY RIGHTS. PROSECUTION AND INFRINGEMENT

 

17.1
Ownership of Improvements; Disclosure. Inventorship of Improvements shall be determined in accordance with the rules of inventorship
under United States patent laws. Subject to the licenses granted by the Parties in this Agreement, (a) Ferrer shall solely own
all Improvements made solely by one or more employees, officers, directors, consultants or contractors of Ferrer,

 

17.1.1
the Company shall solely own all Improvements made solely by one or more employees, officers, directors, consultants or contractors
of the Company, and

 

17.1.2
Ferrer and the Company shall jointly own all Improvements made jointly by one or more employees, officers, directors, consultants
or contractors of Ferrer and one or more employees, officers, directors, consultants or contractors of the Company. Each Party
shall promptly disclose to the other Party in writing any Improvement made in whole or in part by such Party.

 

17.2
Patent Prosecution and Maintenance. Ferrer shall have the sole right to prepare, file, prosecute and maintain the Ferrer Patents,
at Ferrer’s expense.

 

17.3
No Implied Licenses. No right or license under any Patents or Know How owned or controlled by either Party is granted or shall
be granted by implication. All such rights or licenses are or shall be granted only as expressly provided in the terms of this
Agreement.

 

    	32
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17.4
Cooperation of the Parties. Each Party agrees to cooperate fully in the preparation, filing, prosecution and maintenance of
Ferrer Patents under this Agreement and in the obtaining and maintenance of any patent extensions, supplementary protection certificates
and the like with respect to any Ferrer Patent. Such cooperation includes, but is not limited to: (a) executing all papers and
instruments, or requiring its employees or contractors, to execute such papers and instruments, so as to effectuate the ownership
of Improvements set forth in Article 17.1, and Patents claiming or disclosing such Inventions, and to enable the other Party to
apply for and to prosecute patent applications in any country; and (b) promptly informing the other Party of any matters coming
to such Party’s attention that may affect the preparation, filing, prosecution or maintenance of any such patent applications.

 

17.5
Infringement by Third Parties. The Company and Ferrer shall promptly notify the other in writing of any alleged or threatened
infringement of any Ferrer Patent of which they become aware.

 

(a)
Subject to Article 8 above, Ferrer shall have the sole right to bring and control any action or proceeding with respect to infringement
of any Ferrer Patent at its own expense and by counsel of its own choice.

 

(b)
In the event a Party brings an infringement action in accordance with this Section 17.5, the other Party shall cooperate fully,
including, if required to bring such action, the furnishing of a power of attorney or being named as a party. Neither Party shall
have the right to settle any patent infringement litigation under Article 17.5(a) without the prior written consent of such other
Party, which shall not be unreasonably withheld.

 

ARTICLE
18. MODIFICATION AND WAIVER

 

18.1
This Agreement constitutes the sole and entire agreement between the Parties with respect to the matters set forth herein.
It is the mutual desire and intent of the Parties to provide certainty as to their future rights and remedies against each other
by defining the extent of their mutual undertakings as provided herein.

 

The
Parties have in this Agreement incorporated all representations, warranties, covenants, commitments and understandings on which
they have relied in entering into this Agreement and, except as provided for herein, neither Party has made any covenant or other
commitment to the other concerning its future action. No provision of this Agreement shall be deemed amended, supplemented or
modified unless in writing and signed by each Party.

 

18.2
The Parties hereto may, from time to time during the continuance of this Agreement, modify, vary or alter any of the provisions
of this Agreement, but only by written agreement of all Parties hereto. Accordingly, no waiver will be implied from conduct or
failure to enforce rights. No provisions of this Agreement shall be deemed waived unless such waiver is in writing and signed
by the authorized representative of the Party against whom it is sought to be enforced. Waiver by either Party of any default
by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other
default.

 

    	33
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ARTICLE
19. RIGHT OF FIRST REFUSAL

 

To
the extent Ferrer, by exploiting the Ferrer Technology, the Products, the Compound or otherwise, secures or through a Third Party
seeks to secure in the Territory indications for a product outside of the Field for the Products (a “New Product”),
Ferrer shall not, directly or indirectly, license or otherwise assign or transfer any rights under the Ferrer Technology, the
Products, the Compound or otherwise to any Third Party without first offering to license such rights to the Company in each instance.

 

Ferrer
shall notify the Company in writing that Ferrer has received an acceptable bona fide offer for a transaction that would result
in the license of the Ferrer Technology, the Products, the Compound or otherwise in connection with a New Product having an indication
outside of the Field in the Territory (a “New Product Transaction”). As far as Ferrer is legally able to do so, the
written notification shall include details of the technical data package supporting the proposed New Product Transaction. Ferrer
shall not make any binding commitment to engage in the New Product Transaction for twenty (20) business days from the date Ferrer
sends written notice thereof to the Company concerning the proposed New Product Transaction.

 

If
the Company does not in good faith believe that it can make a competing offer to Ferrer for the proposed New Product Transaction
for which it has received written notification, under the same terms and conditions, the Company shall so inform Ferrer in writing
that it is expressly waiving the requirement that Ferrer wait twenty (20) days before making any binding commitment to engage
in the New Product Transaction.

 

Furthermore,
in the absence of any response from the Company within twenty (20) business days of Ferrer sending written notice of a proposed
New Product Transaction, Ferrer shall be free to receive, consider, negotiate and accept any other competing offers or bids from
other Third Parties to enter into an alternative New Product Transaction without sending additional notices to the Company for
each additional offer or bid that it receives; provided that Ferrer may not accept any offer to enter into a New Product Transaction
that, in its sole opinion, is less favorable to Ferrer than that originally notified to the Company for a proposed New Product
Transaction.

 

ARTICLE
20. APPLICABLE LAW

 

This
Agreement and the rights and liabilities of the Parties shall be governed by and interpreted (in English) in accordance with the
laws of the State of New York and jurisdiction shall be granted to the federal and state courts of New York

 

ARTICLE
21. DISPUTE RESOLUTION

 

The
Parties shall attempt, in good faith, to resolve through negotiations any controversy, claim, or dispute arising out of this Agreement,
including through dispute resolution through the JSC as contemplated by Article 8 above. In the event that dispute resolution
through the JSC and negotiations between the Parties’ senior officers are not successful, the controversy, claim or dispute
shall be finally settled by arbitration to be held in Lugano, Switzerland under the Rules of Conciliation and Arbitration of the
International Chamber of Commerce, provided that customary U.S. rules of evidence and procedure shall be applicable. The arbitration
language shall be English. The award to be rendered shall be final and conclusive and binding upon all the Parties without any
right to appeal or other review.

 

    	34
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Nothing
contained in this Agreement shall deny either Party the right to seek injunctive or other equitable relief from a court of competent
jurisdiction in the context of a bona fide emergency or prospective irreparable harm, and such an action may be filed and
maintained notwithstanding any ongoing discussions between the parties or any ongoing arbitration proceeding.

 

ARTICLE
22. INDEPENDENT CONTRACTORS

 

Nothing
contained herein shall be construed or applied in such a manner as would create or constitute any relationship between the Company
and Ferrer other than that of licensor and licensee.

 

Ferrer
and the Company are independent contractors and shall not be deemed to be partners, joint venturers or each other’s agents,
and neither shall have the right to act on behalf of the other except as expressly provided hereunder or otherwise expressly agreed
to in writing.

 

ARTICLE
23. NOTICES

 

Any
notice required to be given hereunder shall be deemed effective upon receipt by the Party entitled to such notice. The same shall
be transmitted to such Party by facsimile and also by registered mail, registered in the country of origin, return receipt requested,
and addressed as follows:

 

If
to Ferrer:

Attn:
Legal Department

Ferrer
Internacional SA

Av.
Diagonal, 549, 5th floor

08029
Barcelona, Spain

 

If
to the Company:

Medimetriks
Pharmaceuticals, Inc.

Attn:
President & CEO

383
Route 46 West

Fairfield,
New Jersey 07004 USA

 

Upon
receipt of any facsimile notices provide for herein, the receiving Party shall promptly acknowledge receipt thereof in writing,
by similar facsimile to the other Party, and transmit an original of such receipt by mail in the manner prescribed above.

 

    	35
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ARTICLE
24. SEVERABILITY

 

Any
provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction. The Parties shall replace such ineffective provision for such jurisdiction
with a valid and enforceable provision which most closely approaches the idea, intent, and purpose of this Agreement, and in particular,
the provision to be replaced.

 

ARTICLE
25. COUNTERPARTS

 

This
Agreement may be signed in two counterparts, each of which is to be considered an original, and taken together as one and the
same document.

 

ARTICLE
26. HEADINGS

 

The
headings of the several Articles are inserted for convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

 

IN
WITNESS THEREOF, the Parties hereto have caused this Agreement to be executed in duplicate by their duty authorized officers.
One each original of this Agreement shall be held by the Parties hereto.

 

	By
    FERRER INTERNACIONAL, S.a.	 	By
    MEDIMETRIKS PHARMACEUTICALS, INC.
	 	 	 
	/s/
    [***]	 	/s/
    [***]
	[***]	 	[***]
	[***]	 	[***]
	 	 	 
	/s/
    [***]	 	 
	[***]	 	 
	[***]	 	 

 

    	36
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EXHIBIT
A

 

Ferrer
Patents

 

[***]

 

    	37
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