Document:

Capped Call Confirmation dated May 8, 2007--UBS AG, London Branch

 Exhibit 10.3 
 From: UBS AG, London Branch 
 c/o UBS Securities LLC 
 299 Park Avenue 
 New York, NY 10171 

			
	Attention:	 	Paul Stowell
	Telephone No.:	 	212-821-2100
	Facsimile No.:	 	212-821- 8610

 May 2, 2007 
 To: PREIT Associates, L.P. 
 Pennsylvania Real Estate Investment Trust 
 200 South Broad Street 
 Philadelphia, PA 19102 

			
	Attention:	 	Robert McCadden
	Telephone No.:	 	(215) 454-1295
	Facsimile No.:	 	(215) 546-0240

 Re: Capped Call Transaction 
 Reference: 
 Dear Sir/Madam: 
 The
purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the transaction entered into between UBS AG, London Branch (“Dealer”), with UBS Securities LLC as its agent
(“Agent”), PREIT Associates, L.P., Delaware limited partnership (“Counterparty”), and Pennsylvania Real Estate Investment Trust, an unincorporated association in business trust form created under Pennsylvania law
pursuant to a Trust Agreement and the sole general partner of Counterparty (“Parent”), on the Trade Date specified below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to
in the ISDA Master Agreement specified below. This Confirmation shall replace any previous letter and serve as the final documentation for this Transaction. The Transaction is subject to early unwind if the closing of the Exchangeable Notes referred
to below issued by Counterparty is not consummated for any reason, as set forth in this Confirmation. 
 This Confirmation is subject to, and
incorporates, the definitions and provisions of the 2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”, and together with the 2000 Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency
between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern. Certain defined terms used herein have the meanings assigned to them in the Offering Memorandum dated May 2, 2007 (the “Offering
Memorandum”) relating to the USD 250,000,000 principal amount of 4.00% Exchangeable Senior Notes due 2027 (the “Exchangeable Notes” and each USD 1,000 principal amount of Exchangeable Notes, an “Exchangeable
Note”) issued by Counterparty pursuant to an Indenture to be dated May 8, 2007 between Counterparty and U.S. Bank National Association, as trustee (as in effect on the date of its execution, the “Indenture”). In the
event of any inconsistency between the terms defined in the Offering Memorandum, the Indenture and this Confirmation, this Confirmation shall govern. The parties acknowledge that this Confirmation is entered into on the date hereof with the
understanding that (i) definitions set forth in the Indenture which are also defined herein by reference to the Indenture and (ii) sections of the Indenture that are referred to herein will conform to the descriptions thereof in the
Offering Memorandum. If any such definitions in the Indenture or any such sections of the Indenture differ from the descriptions thereof in the Offering Memorandum, the descriptions thereof in the Offering Memorandum will govern for purposes of this
Confirmation. The parties further acknowledge that the Indenture section numbers used herein are based 

 
on the draft of the Indenture last reviewed by Dealer as of the date of this Confirmation, and if any such section numbers are changed in the Indenture as
executed, the parties will amend this Confirmation in good faith to preserve the intent of the parties. For the avoidance of doubt, references to the Indenture herein are references to the Indenture as in effect on the date of its execution and if
the Indenture is amended following its execution, any such amendment will be disregarded for purposes of this Confirmation unless the parties agree otherwise in writing. 
 Each party is hereby advised, and each such party acknowledges, that the other party has engaged in, or refrained from engaging in, substantial financial transactions and has taken other material actions in reliance
upon the parties’ entry into the Transaction to which this Confirmation relates on the terms and conditions set forth below. 
 1. This
Confirmation evidences a complete and binding agreement between Dealer, Counterparty and Parent as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be subject to an agreement (the
“Agreement”) in the form of the 2002 ISDA Master Agreement (the “ISDA Form”) as if Dealer, Counterparty and Parent had executed an agreement in such form (without any Schedule but with the elections set forth in
this Confirmation). For the avoidance of doubt, the Transaction shall be the only transaction under the Agreement. 
 All provisions
contained in, or incorporated by reference to, the Agreement will govern this Confirmation except as expressly modified herein. In the event of any inconsistency between this Confirmation and either the Definitions or the Agreement, this
Confirmation shall govern. 
 2. The Transaction constitutes a Share Option Transaction for purposes of the Equity Definitions. The terms of
the particular Transaction to which this Confirmation relates are as follows: 
 General Terms: 
  

			
	Trade Date:	  	May 2, 2007
		
	Option Style:	  	“Modified American,” as set forth under “Procedures for Exercise” below.
		
	Option Type:	  	Call
		
	Buyer:	  	Counterparty
		
	Seller:	  	Dealer
		
	Shares:	  	The common stock of Parent, par value USD 1.00 per share (Exchange symbol “PEI”).
		
	Number of Options:	  	83,333.25; provided that if Dealer, as representative of the Initial Purchasers (as defined in the Purchase Agreement referred to below), exercises the option to purchase additional
Exchangeable Notes pursuant to Section 1 of the Purchase Agreement, the Number of Options hereunder shall be automatically increased, effective upon payment by Counterparty of the Additional Premium on the Additional Premium Payment Date, by the
Applicable Percentage times the number of Exchangeable Notes in denominations of USD 1,000 principal amount issued pursuant to such exercise (such Exchangeable Notes, the “Additional Exchangeable Notes”). The Number of
Options shall be reduced by the Applicable Percentage times the number of Exchangeable Notes exchanged by Counterparty. In no event will the Number of Options be less than zero.

			
	Option Entitlement:	  	As of any date, a number equal to the Applicable Exchange Rate as of such date (as defined in the Indenture, but without regard to any adjustments to the Applicable Exchange Rate pursuant to
Section 13.05(g) or Section 13.11 of the Indenture or pursuant to the Registration Rights Agreement (as defined in the Indenture)), for each Exchangeable Note.
		
	Number of Shares:	  	The product of the Number of Options and the Option Entitlement.
		
	Applicable Percentage:	  	33.3333%
		
	Strike Price:	  	USD 54.64
		
	Cap Price:	  	USD 63.74
		
	Payment of Premium:	  	Notwithstanding anything to the contrary in the Equity Definitions, Parent shall pay Seller the Premium on the Premium Payment Date.
		
	Premium:	  	USD 3,645,830; provided that if the Number of Options is increased pursuant to the proviso to the definition of “Number of Options” above, Counterparty shall pay on the Additional
Premium Payment Date an additional Premium (the “Additional Premium”) equal to the product of the number of Options by which the Number of Options is so increased and USD 43.75.
		
	Premium Payment Date:	  	May 8, 2007
		
	Additional Premium Payment Date:	  	The closing date for the purchase and sale of the Additional Exchangeable Notes.
		
	Exchange:	  	The New York Stock Exchange
		
	Related Exchange:	  	All Exchanges

 Procedures for Exercise: 
  

			
	Exercise Period(s):	  	Notwithstanding anything to the contrary in the Equity Definitions, an Exercise Period shall occur with respect to an Option hereunder only if such Option is an Exercisable Option (as defined
below) and the Exercise Period shall be, in respect of any Exercisable Option, the period commencing on, and including, the relevant Exchange Date and ending on, and including, the Expiration Date.
		
	Exchange Date:	  	With respect to any exchange of Exchangeable Notes, the date on which the Holder (as such term is defined in the Indenture) of such Exchangeable Notes satisfies all of the requirements for
exchange thereof as set forth in Section 13.02 of the Indenture.
		
	Exercisable Options:	  	Upon the occurrence of an Exchange Date, a number of Options equal to the Applicable Percentage times the number of Exchangeable Notes exchanged on such Exchange Date shall become
Exercisable Options hereunder; provided that (i) Exchangeable Notes

			
		  	surrendered for exchange prior to March 1, 2012 or (ii) Exchangeable Notes surrendered for exchange in connection with a transaction described in clause (1) of the definition of
Designated Event (as such term is defined in the Indenture) pursuant to Section 13.11 of the Indenture (a “Make Whole Exchange”), in each case shall not cause any Options hereunder to become Exercisable Options and, in lieu thereof,
Section 9(n) shall apply.
		
	Expiration Time:	  	The Valuation Time
		
	Expiration Date:	  	The Scheduled Trading Day immediately preceding June 1, 2012, subject to earlier exercise.
		
	Multiple Exercise:	  	Applicable, as described under Exercisable Options above.
		
	Automatic Exercise:	  	Applicable; and means that in respect of an Exercise Period, a number of Options not previously exercised hereunder equal to the number of Exercisable Options shall be deemed to be exercised on
the final day of such Exercise Period for such Exercisable Options; provided that such Options shall be deemed exercised only to the extent that Counterparty has provided a Notice of Exercise to Dealer.
		
	Notice of Exercise:	  	Notwithstanding anything to the contrary in the Equity Definitions, in order to exercise any Exercisable Options, Counterparty must notify Dealer on or prior to 5:00 p.m. (New York City time) on
the Expiration Date and need only specify the number of such Exercisable Options.
		
	Settlement Averaging Period:	  	For any Exercisable Option, if Counterparty has, on or following March 1, 2012, delivered a Notice of Exercise to Dealer with respect to such Exercisable Option with an Exchange Date occurring
on or following March 1, 2012, the 50 (fifty) consecutive Valid Days commencing on, and including, the 52nd Scheduled Valid Day immediately prior to June 1, 2012.
		
	Valuation Time:	  	At the close of trading of the regular trading session on the Exchange; provided that if the principal trading session is extended, the Calculation Agent shall determine the Valuation
Time in its reasonable discretion.
		
	Market Disruption Event:	  	Notwithstanding anything to the contrary in the Equity Definitions, as defined in the Indenture.

 Settlement Terms: 
  

			
	Settlement Method Election:	  	Applicable, and means that (i) Counterparty may elect Cash Settlement in part and Net Share Settlement in part and (ii) the percentage of Exercisable Options to which Cash Settlement applies
(the “Cash Settlement

			
		  	Percentage”) shall be the same for all Exercisable Options and shall be specified by Counterparty when it makes its election; provided that Counterparty may not elect Cash
Settlement, whether in whole or in part, in respect of any Options hereunder, and Cash Settlement shall not apply notwithstanding any notice delivered by Counterparty, unless Counterparty represents and warrants to Dealer in writing (which may be
part of the Cash Settlement election notice) on the Cash Settlement election date that, as of such date, none of the Company and its officers and directors is aware of any material non-public information with respect to itself or the
Shares.
		
		  	The definition of “Settlement Method Election” in Section 7.1 of the Equity Definitions is hereby amended by (i) inserting “or Net Share Settlement” after “Cash
Settlement” in the sixth line, (ii) deleting the words “or Physical Settlement” in the sixth and seventh lines, (iii) deleting the words “oral telephonic notice if practicable, and otherwise” from the phrase in the last
parenthesis of the first sentence, (iv) deleting the phrase “and the Electing Party will execute and deliver to the other party or, if applicable, such agent, a written confirmation confirming the substance of any telephonic notice within one
Scheduled Trading Day of that notice” in the second sentence and (v) deleting the third sentence of Section 7.1.
		
	Electing Party:	  	Counterparty
		
	Settlement Method Election Date:	  	The Scheduled Valid Day immediately preceding the Settlement Averaging Period
		
	Default Settlement Method:	  	Net Share Settlement
		
	Net Share Settlement:	  	If applicable, Dealer will deliver to Counterparty, on the relevant Settlement Date, a number of Shares equal to the Net Shares in respect of any Exercisable Option exercised or deemed exercised
hereunder. In no event will the Net Shares be less than zero.
		
	Net Shares:	  	In respect of any Exercisable Option exercised or deemed exercised, a number of Shares equal to the product of (x) 100% minus the Cash Settlement Percentage and (y) (i) the Option
Entitlement multiplied by (ii) the sum of the quotients, for each Valid Day during the Settlement Averaging Period of (A) (1) the amount by which the Cap Price exceeds the Strike Price, if the Relevant Price on such Valid Day is equal to or greater
than the Cap Price; (2) the amount by which such Relevant Price exceeds the Strike Price, if such Relevant Price is greater than the Strike Price but less than the Cap Price or (3) zero, if such Relevant Price is less than or equal to the Strike
Price; divided by (B) such Relevant Price, divided by (iii) the number of Valid Days in such Settlement Averaging Period.

			
		
		  	Dealer will deliver cash in lieu of any fractional Shares to be delivered with respect to any Net Shares valued at the Relevant Price for the last Valid Day of the Settlement Averaging
Period.
		
	Settlement Date:	  	For any Exercisable Option, the date Shares will be delivered with respect to the Exchangeable Notes related to such Exercisable Options, under the terms of the Indenture.
		
	Other Applicable Provisions in Respect of Net Share Settlement:	  	The provisions of Sections 9.1(c), 9.8, 9.9, 9.11, 9.12 and 10.5 of the Equity Definitions will be applicable, except that all references in such provisions to “Physically-settled”
shall be read as references to “Net Share Settled”. “Net Share Settled” in relation to any Option means that Net Share Settlement is applicable to that Option.
		
	Cash Settlement:	  	If applicable, settlement shall occur in accordance with Section 8.1 of the Equity Definitions and the modifications provided in this Confirmation, except that Cash Settlement Payment Date shall
be the Settlement Date as if Net Share Settlement had applied to such Exercisable Options.
		
	Option Cash Settlement Amount:	  	For each Exercisable Option exercised or deemed exercised hereunder, an amount equal to the product of (x) the Cash Settlement Percentage and (y) (i) the Option Entitlement multiplied by (ii)
the sum of, for each Valid Day during the Settlement Averaging Period, the quotient of the Strike Price Differential for such day and the number of Valid Days in such Settlement Averaging Period.
		
	Strike Price Differential:	  	For each day during the Settlement Averaging Period, the lesser of:
		
		  	(i) the greater of (a) the Reference Price minus the Strike Price and (b) zero; and
		
		  	(ii) the Cap Price minus the Strike Price.
		
	Valid Day:	  	means “Trading Day” as defined in the Indenture.
		
	Scheduled Valid Day:	  	A day that is scheduled to be a Valid Day.
		
	Relevant Price:	  	On any Valid Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “PEI <equity> AQR” (or its equivalent
successor if such page is unavailable) in respect of the period from the scheduled

			
		  	opening time of the Exchange to the Scheduled Closing Time of the Exchange on such Valid Day (or if such volume-weighted average price is unavailable, the market value of one Share on such
Valid Day, as determined, using a volume-weighted average method, by the Calculation Agent).
		
	Settlement Currency:	  	USD
		
	Representation and Agreement:	  	Notwithstanding Section 9.11 of the Equity Definitions, the parties acknowledge that any Shares delivered to Counterparty pursuant to Net Share Settlement above shall be, upon delivery, subject
to restrictions and limitations arising from Counterparty’s status under applicable securities laws and the Pennsylvania Real Estate Investment Trust Trust Agreement, as amended and restated as of December 16, 1997, as further amended from time
to time (the “Trust Agreement”).

 3. Additional Terms Applicable to the Transaction: 
 Adjustments Applicable to the Transaction: 
  

			
	Potential Adjustment Events:	  	Notwithstanding Section 11.2(e) of the Equity Definitions, a “Potential Adjustment Event” means an occurrence of any event or condition, as set forth in Section 13.05 of the Indenture,
that would result in an adjustment to the Exchange Rate of the Exchangeable Notes; provided that in no event shall there be any adjustment hereunder as a result of an adjustment to the Exchange Rate pursuant to the third paragraph of Section
13.05(g) or Section 13.11 of the Indenture or pursuant to the Registration Rights Agreement (as defined in the Indenture).
		
	Method of Adjustment:	  	Calculation Agent Adjustment, which means, notwithstanding anything to the contrary in the Equity Definitions, upon any adjustment to the Exchange Rate of the Exchangeable Notes pursuant to the
Indenture (other than pursuant to the third paragraph of Section 13.05(g) or Section 13.11 of the Indenture or pursuant to the Registration Rights Agreement (as defined in the Indenture)), (i) the Calculation Agent shall make a corresponding
adjustment to any of the Strike Price, Number of Options and the Option Entitlement and (ii) the Calculation Agent may, in its sole discretion, make any adjustment consistent with the Calculation Agent Adjustment set forth in Section 11.2(c) of the
Equity Definitions to the Cap Price or any other variable relevant to the exercise, settlement or payment for the Transaction (other than the Strike Price) to preserve the fair value of the Options to Dealer after taking into account such Potential
Adjustment Event; provided further that in no event shall the Cap Price be less than the Strike Price.

 Extraordinary Events: 
  

			
	Merger Events:	  	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event” means the occurrence of any event or condition described in clauses (i), (ii) or (iii) of the last paragraph
of Section 13.05(g) of the Indenture.
		
	Tender Offers:	  	Applicable; provided that notwithstanding Section 12.1(d) of the Equity Definitions, a “Tender Offer” means the occurrence of any event or condition set forth in Section
13.05(e) of the Indenture.
		
	Consequence of Merger Events/ Tender Offers:	  	Notwithstanding Sections 12.2 and 12.3 of the Equity Definitions, upon the occurrence of a Merger Event or a Tender Offer:
		
		  	(i) the Calculation Agent shall make a corresponding adjustment in respect of any adjustment under the Indenture to any one or more of the nature of the Shares, Strike Price, Number of Options
and the Option Entitlement; provided, however, that such adjustment shall be made without regard to any adjustment to the Exchange Rate for the issuance of additional shares as set forth in the third paragraph of Section 13.05(g) or Section
13.11 of the Indenture or pursuant to the Registration Rights Agreement (as defined in the Indenture); and
		
		  	(ii) the Calculation Agent may, in its sole discretion, make any adjustment consistent with the Modified Calculation Agent Adjustment set forth in Section 12.2(e) or 12.3(d) of the Equity
Definitions, as applicable, to the Cap Price or any other variable relevant to the exercise, settlement or payment for the Transaction (other than the Strike Price); provided that in no event shall the Cap Price be less than the Strike
Price;
		
		  	provided that, with respect to a Merger Event, if the consideration for the Shares includes (or, at the option of a holder of Shares, may include) shares of an entity or person not
organized under the laws of the United States, any State thereof or the District of Columbia, Cancellation and Payment (Calculation Agent Determination) shall apply; and provided further that, for the avoidance of doubt, adjustments shall be
made pursuant to the provisions of subparagraphs (i) and (ii) above regardless of whether any Merger Event or Tender Offer gives rise to a Make Whole Exchange.
		
	Nationalization, Insolvency or Delisting:	  	Cancellation and Payment (Calculation Agent Determination); provided that, in addition to the provisions of Section 12.6(a)(iii) of the Equity

			
		  	Definitions, it will also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, the American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, the
American Stock Exchange, the NASDAQ Global Select Market or the NASDAQ Global Market (or their respective successors), such exchange or quotation system shall thereafter be deemed to be the Exchange.
		
	Additional Disruption Events:	  	
		
	    Change in Law:	  	Applicable
		
	    Failure to Deliver	  	Applicable
		
	    Hedging Disruption:	  	Applicable
		
	    Increased Cost of Hedging:	  	Applicable
		
	Hedging Party:	  	For all applicable Additional Disruption Events, Dealer.
		
	    Determining Party:	  	For all applicable Additional Disruption Events, Dealer.
		
	Non-Reliance:	  	Applicable
		
	Additional Termination Events:	  	If any event of default resulting in acceleration under the terms of the Exchangeable Notes, as set forth in Section 6.01 of the Indenture, shall occur with respect to Counterparty, then such
event shall constitute an Additional Termination Event applicable to the Transaction with respect to which Counterparty shall be deemed to be the sole Affected Party and the Transaction shall be the sole Affected Transaction.
		
		  	If any provision of the Indenture or the Exchangeable Notes is amended, modified, supplemented or waived without the written consent of Dealer, Counterparty shall provide Dealer and the
Calculation Agent with notice thereof on or prior to the effective date thereof and, if the Calculation Agent determines that such amendment, modification, supplement or waiver has a material effect on the Transaction or Dealer’s ability to
hedge all or a portion (“Affected Portion”) of the Transaction, in each case determined in its reasonable judgment, then such event (an “Amendment Event”) shall constitute an Additional Termination Event, in which
case (x) the sole Affected Transaction shall consist of a transaction identical to the Transaction except that Number of Options for such Affected Transaction shall equal the Affected Portion and Counterparty shall be deemed the sole Affected Party
and (y) the Transaction shall remain in full force and effect, except that the Number of Options subject to the Transaction immediately prior to such amendment, modification, supplement or waiver shall be reduced by the Affected
Portion.

			
		  	If any Exchangeable Notes are repurchased (whether in connection with a put of Exchangeable Notes by holders thereof pursuant to the terms of the Indenture as a result of a fundamental
change, howsoever defined, or for any other reason) by Counterparty or any of its subsidiaries or if Counterparty gives notice to Dealer that it intends to repurchase any Exchangeable Notes, then Counterparty may notify Dealer that it wishes to
designate an Early Termination Date with respect to the portion of the Transaction relating to the number of Exchangeable Notes that cease to be outstanding in connection with or as a result of such repurchase and the parties shall negotiate in good
faith and in a commercially reasonable manner the timing, pricing and other terms of such designation. For the avoidance of doubt, no such designation shall be made if, after such negotiation, the parties cannot agree on the terms of such
designation.
		
		  	With respect to any Additional Termination Event described above, in determining the amount payable in respect of such Affected Transaction pursuant to Section 6 of the Agreement, the
Calculation Agent shall assume that (x) the relevant event of default, amendment, modification, supplement, waiver or repurchase, as applicable, had not occurred and (y) the corresponding Exchangeable Notes remain outstanding.
		
	Agreements and Acknowledgements Regarding Hedging Activities:	  	Applicable
		
	Additional Acknowledgments:	  	Applicable

 4. Calculation Agent: Dealer 
 5. Account Details: 
  

	 	(a)	Account for payments to Counterparty: 

 To
be provided by Counterparty 
 Account for delivery of Shares to Counterparty: 
 To be provided by Counterparty. 
  

	 	(b)	Account for payments to Dealer: 

 To be
provided by Dealer. 
 6. Offices: 
 The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a Multibranch Party. 
 The Office of Dealer for the Transaction is: 

 7. Notices: For purposes of this Confirmation: 
  

					
	(a)	  	Address for notices or communications to Counterparty:
		
		  	PREIT Associates, L.P.
		  	 200 South Broad Street
 Philadelphia, PA
19102

		  	Attention:	  	Robert McCadden
		  	Telephone No.:	  	(215) 454-1295
		  	Facsimile No.:	  	(215) 546-0240
		
	(b)	  	Address for notices or communications to Dealer:
		
		  	UBS AG, London Branch
		  	c/o UBS Securities LLC
		  	299 Park Avenue
		  	New York, NY 10171
		  	Attention:	  	Paul Stowell
		  	Telephone No.:	  	212-821-2100
		  	Facsimile No.:	  	212-821- 8610
		
		  	Equities Legal Department
		  	677 Washington Boulevard
		  	Stamford, CT 06901
		  	Attention:	  	David Kelly and Gordon Kiesling
		  	Telephone No.:	  	(203) 719-0268
		  	Facsimile No.:	  	(203) 719-5627

 8. Representations, Warranties, Covenants and Agreements of Counterparty and Parent: 

The representations and warranties of Counterparty and Parent set forth in Section 3 of the Agreement and Section 3 of the Purchase Agreement
dated as of May 2, 2007 among Counterparty, Parent and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc. and UBS Securities LLC, as representatives of the initial purchasers party thereto (the
“Purchase Agreement”) are true and correct as of the dates made therein, and are hereby deemed to be repeated on such dates to Dealer as if set forth herein. In addition to the representations and warranties in the Purchase
Agreement, the Agreement and those contained elsewhere herein, Counterparty and Parent represent and warrant to and for the benefit of, and agrees with, Dealer as follows: 
  

	 	(a)	Each of Counterparty and Parent has all necessary corporate power and authority to execute, deliver and perform its obligations in respect of this Transaction; such execution,
delivery and performance have been duly authorized by all necessary corporate action on Counterparty’s and Parent’s part; and this Confirmation has been duly and validly executed and delivered by each of Counterparty and Parent and
constitutes its valid and binding obligation, enforceable against Counterparty or Parent in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity, including principles of commercial reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity) and except that rights to indemnification and contribution hereunder may be limited by federal or state securities laws or public policy relating thereto. 

	 	(b)	Except as disclosed in the Disclosure Package and the Final Offering Memorandum (as defined in the Purchase Agreement), the execution, delivery and performance of
this Confirmation by Counterparty and Parent and the consummation of the transactions contemplated hereby do not and will not (whether with or without the giving of notice or passage of time or both) conflict with or result in a breach or
violation of any of the terms and provisions of, or constitute a default (or give rise to any right of termination, acceleration, cancellation, repurchase or redemption) or Repayment Event (as hereinafter defined) under, or result in the creation or
imposition of a Lien upon any property or assets of the Counterparty, the Parent and the Subsidiaries (as defined in the Purchase Agreement) pursuant to, (i) any statute, any rule, regulation or order of any governmental agency or body or any
court, domestic or foreign, having jurisdiction over the Counterparty, the Parent and the Subsidiaries (as defined in the Purchase Agreement), assets or business currently owned by them; (ii) any indenture, mortgage, deed of trust, bank loan or
credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which the Counterparty, Parent or any of the Subsidiaries (as defined in the Purchase Agreement) is a party or by which any of
them or any of their properties may be bound or affected; or (iii) the charters, by-laws or other organizational documents, as applicable, of the Counterparty, the Parent and the Subsidiaries (as defined in the Purchase Agreement), except for
such conflicts, breaches, violations or defaults that (with respect to subclauses (i) and (ii) above) would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect (as defined in the Purchase
Agreement) (it being understood that any such conflict, breach or default relating to the execution, delivery or performance of the Counterparty or Parent of this Confirmation shall constitute a Material Adverse Effect). As used herein,
“Repayment Event” means any event or condition which, without regard to compliance with any notice or other procedural requirements, gives the holder of any note, debenture or other evidence of indebtedness (or any person acting on
such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Parent, Counterparty or any subsidiary. 

  

	 	(c)	No consent, approval, authorization, or order of, or filing or registration with, any governmental agency or body or any court or any third party is required for the consummation of
the transactions contemplated by this Confirmation, except as may be required under the Securities Act of 1933 (the “Securities Act”), the Trust Indenture Act of 1939, as amended, and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder, state securities laws or the rules of the National Association of Securities Dealers, Inc. or that the absence of which would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect (it being understood that any such conflict, breach or default relating to the execution, delivery or performance of the Counterparty or Parent of this Confirmation shall constitute a Material Adverse Effect).

  

	 	(d)	Each of Counterparty and Parent is not, and after giving effect to the transactions contemplated hereby will not be, an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended. 

  

	 	(e)	Each of Counterparty and Parent is an “eligible contract participant” (as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended (the
“CEA”) because one or more of the following is true: 

 It is a corporation, partnership,
proprietorship, organization, trust or other entity and: 
  

	 	(A)	it has total assets in excess of USD 10,000,000; 

  

	 	(B)	its obligations hereunder are guaranteed, or otherwise supported by a letter of credit or keepwell, support or other agreement, by an entity of the type described in
Section 1a(12)(A)(i) through (iv), 1a(12)(A)(v)(I), 1a(12)(A)(vii) or 1a(12)(C) of the CEA; or 

  

	 	(C)	it has a net worth in excess of USD 1,000,000 and has entered into this Agreement in connection with the conduct of its business or to manage the risk associated with an asset or
liability owned or incurred or reasonably likely to be owned or incurred by it in the conduct of its business. 

  

	 	(f)	On the Trade Date and on any Additional Premium Payment Date, (A) none of Counterparty and its officers and directors is aware of any material nonpublic information regarding
Counterparty or the Shares and (B) all reports and other documents filed by Counterparty with the Securities and Exchange Commission pursuant to the Exchange Act when considered as a whole (with the more recent such reports and documents deemed
to amend inconsistent statements contained in any earlier such reports and documents), do not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not misleading. 

  

	 	(g)	Without limiting the generality of Section 3(a)(iii) of the Agreement, the Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

  

	 	(h)	Counterparty is an “accredited investor” (as such term is defined in Section 2(a)(15)(ii) of the Securities Act). 

  

	 	(i)	Counterparty’s financial condition is such that it has no need for liquidity with respect to its investment in the Transaction and no need to dispose of any portion thereof to
satisfy any existing or contemplated undertaking or indebtedness. 

  

	 	(j)	On the Trade Date and on any Additional Premium Payment Date (A) the assets of Counterparty at their fair valuation exceed the liabilities of Counterparty, including contingent
liabilities, (B) the capital of Counterparty is adequate to conduct the business of Counterparty and (C) Counterparty has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as such debts mature. 

  

	 	(k)	Counterparty’s investments in and liabilities in respect of the Transaction, which it understands are not readily marketable, are not disproportionate to its net worth, and it
is able to bear any loss in connection with the Transaction, including the loss of its entire investment in the Transaction. 

  

	 	(l)	Counterparty hereby agrees and acknowledges that the Transaction has not been registered with the Securities and Exchange Commission or any state securities commission and that the
Options are being written by Dealer to Counterparty in reliance upon exemptions from any such registration requirements. Counterparty acknowledges that all Options acquired from Dealer will be acquired for investment purposes only and not for the
purpose of resale or other transfer except in compliance with the requirements of the Securities Act. Counterparty will not sell or otherwise transfer any Option or any interest therein except in compliance with the requirements of the Securities
Act and any subsequent offer or sale of the Options will be solely for Counterparty’s account and not as part of a distribution that would be in violation of the Securities Act. 

  

	 	(m)	Counterparty understands no obligations of Dealer to it hereunder will be entitled to the benefit of deposit insurance and that such obligations will not be guaranteed by any
affiliate of Dealer or any governmental agency. 

	 	(n)	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Dealer is not making any representations or warranties with respect to
the treatment of the Transaction under FASB Statements 133, as amended, or 150, EITF Issue No. 00-19 (or any successor issue statements) or under FASB’s Liabilities & Equity Project. 

  

	 	(o)	Positions held by Dealer or any of its affiliates solely in its capacity as a nominee or fiduciary and in which the Dealer and its affiliates possess no direct or indirect economic
interest, other than, for the avoidance of doubt customary fiduciary, custodial and management fees, do not constitute actual ownership, Beneficial Ownership (as such term is defined in the Trust Agreement) or Constructive Ownership (as such term is
defined in the Trust Agreement) by Dealer for purposes of Paragraph 9 the Counterparty’s Trust Agreement. This representation shall no longer apply from and after the date five days after Counterparty provides to Dealer an opinion of nationally
recognized legal counsel that ownership as a nominee or fiduciary, with no direct or indirect economic interest other than customary fiduciary, custodial and management fees, constitutes ownership for purposes of Section 318 or Section 542
of the Internal Revenue Code of 1986, as amended. 

 9. Other Provisions: 
  

	 	(a)	Opinions. Each of Counterparty and Parent shall deliver to Dealer an opinion of counsel, dated as of the Premium Payment Date in the form of Exhibit A hereto, with respect to
the matters set forth in Sections 8(a) though (d) of this Confirmation. 

  

	 	(b)	 Repurchase Notices. Parent shall, at least 10 Scheduled Trading Days prior to any day on which it effects any repurchase of Shares, give Dealer a written
notice of such repurchase (a “Repurchase Notice”) if, following such repurchase, the Notice Percentage as determined on such day is (i) greater than 4.5% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice, greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day is the fraction, expressed as a
percentage, the numerator of which is the Number of Shares and the denominator of which is the number of Shares outstanding on such day. In the event that Parent fails to provide Dealer with a Repurchase Notice on the day and in the manner specified
in this Section 9(b) then Counterparty and Parent agree to indemnify and hold harmless Dealer, its affiliates and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an
“Indemnified Person”) from and against any and all losses (including losses relating to Dealer’s hedging activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider,” including
without limitation any forbearance from hedging activities or cessation of hedging activities and any losses in connection therewith with respect to this Transaction), claims, damages and liabilities (or actions in respect thereof), joint or
several, to which such Indemnified Person may become subject, including without limitation, Section 16 of the Exchange Act), relating to or arising out of such failure. If for any reason the foregoing indemnification is unavailable to any
Indemnified Person or insufficient to hold harmless any Indemnified Person, then Counterparty and Parent shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Person as a result of such loss,
claim, damage or liability. In addition, Counterparty and Parent will reimburse any Indemnified Person for all expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to Counterparty) in connection with the
investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding (including any governmental or regulatory investigation) arising therefrom, whether or not such Indemnified Person is a
party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty or Parent. This indemnity shall survive the 

	 	 
completion of the Transaction contemplated by this Confirmation and any assignment and delegation of the Transaction made pursuant to this Confirmation or
the Agreement shall inure to the benefit of any permitted assignee of Dealer. 

  

	 	(c)	Exchange Rate Adjustments. Parent shall provide to Dealer written notice (such notice, an “Exchange Rate Adjustment Event Notice”) at least ten
Scheduled Trading Days prior to consummating or otherwise executing or engaging in any transaction or event (an “Exchange Rate Adjustment Event”) that would lead to a change in the Exchange Rate (as such term is defined in the
Indenture). Upon such Exchange Rate Adjustment Event becoming effective, Parent shall, on the day such Exchange Rate Adjustment Event becomes effective or as soon as practicable thereafter, provide to Dealer written notice (such notice, an
“Exchange Rate Adjustment Notice”) setting forth the new, adjusted Exchange Rate after giving effect to such Exchange Rate Adjustment Event (the “New Exchange Rate”). In connection with the delivery of any Exchange
Rate Adjustment Event Notice to Dealer, (x) Parent shall, concurrently with or prior to such delivery, publicly announce and disclose the Exchange Rate Adjustment Event or (y) Parent shall, concurrently with such delivery, represent
and warrant that the information set forth in such Exchange Rate Adjustment Event Notice does not constitute material non-public information with respect to Parent or the Shares. 

  

	 	(d)	Regulation M. Neither Counterparty nor Parent was on the Trade Date engaged in a distribution, as such term is used in Regulation M under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), of any securities of Counterparty or Parent, as applicable, other than a distribution meeting the requirements of the exception set forth in Rules 101(b)(10) and 102(b)(7) of Regulation M. Neither
Counterparty nor Parent shall, until the second Scheduled Trading Day immediately following the Trade Date, and on any Additional Premium Date, engage in any such distribution. 

  

	 	(e)	No Manipulation. Neither Counterparty nor Parent is entering into the Transaction to create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Exchange Act. 

  

	 	(f)	Rule 10b-18. During the period beginning on the Trade Date and ending on any Additional Premium Payment Date, or if no such Additional Premium Payment Date has occurred, on
the last date on which Dealer, as representative of the Initial Purchasers, may exercise the over-allotment option set forth in the Purchase Agreement, neither Counterparty nor any “affiliate” or “affiliated purchaser” (each as
defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall directly or indirectly (including, without limitation, by means of any cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or
limit order that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security
convertible into or exchangeable or exercisable for Shares, unless Dealer, in its sole discretion, consents to any such transaction or activity. 

  

	 	(g)	Number of Repurchased Shares. Each of Counterparty and Parent represents that it could have purchased a number of Shares equal to (i) the product of the Number of
Options, Option Entitlement and the amount by which the Cap Price exceeds the Strike Price, divided by (ii) the Cap Price, on the Exchange or otherwise, in compliance with applicable law, its organizational documents and any orders, decrees and
contractual agreements binding upon Counterparty or Parent, on the Trade Date. 

  

	 	(h)	 Board Authorization. Each of this Transaction and the issuance of the Exchangeable Notes was approved by Counterparty’s and Parent’s Board of
Trustees and publicly announced, solely for the purposes stated in such board resolution and public disclosure and, prior to any exercise of Options hereunder, Counterparty’s and Parent’s Board of Trustees will have duly 

	 	 
authorized any repurchase of Shares pursuant to this Transaction. Each of Counterparty and Parent further represents that there is no internal policy,
whether written or oral, of Counterparty or Parent that would prohibit Counterparty or Parent from entering into any aspect of this Transaction, including, but not limited to, the purchases of Shares to be made pursuant hereto.

  

	 	(i)	Transfer or Assignment. Dealer may transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, to any of its affiliates without the
consent of Counterparty, and, upon such transfer or assignment, Dealer shall be discharged of any such obligation to the extent of such affiliate’s performance. If at any time at which the Equity Percentage exceeds 6.5%, Dealer, in its
discretion, (i) shall have the right to transfer or assign its rights and obligations hereunder and under the Agreement, in whole or in part, to any third party with a rating for its long-term, unsecured and unsubordinated indebtedness of BBB-
or better by Standard & Poor’s Ratings Services or its successor (“S&P”), or Baa3 by Moody’s Investor Services, Inc. (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least
an equivalent rating or better by a substitute agency rating mutually agreed by Counterparty and Dealer, and (ii), if Dealer is unable to effect a transfer or assignment to a third party after its commercially reasonable efforts on pricing terms
reasonably acceptable to Dealer such that the Equity Percentage is reduced to 6.5% or less, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the “Terminated Portion”) of the
Transaction, such that the Equity Percentage following such partial termination will be equal to or less than 6.5%. In the event that Dealer so designates an Early Termination Date with respect to a portion of the Transaction, a payment or delivery
shall be made pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated in respect of a Transaction having terms identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be
the sole Affected Party with respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction. The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of the number of Shares that Dealer and its affiliates beneficially own (within the meaning of Section 13 of the Exchange Act and, without duplication, any shares for which Dealer is the
“Beneficial Owner” or “Constructive Owner” within the meaning of the Trust Agreement) on such day, other than Shares owned as a hedge of the Transaction, and the Number of Shares and (B) the denominator of which is the
number of Shares outstanding on such day. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Dealer to purchase, sell, receive or deliver any shares or other securities to or from Counterparty, Dealer may
designate any of its affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Dealer’s obligations in respect of this Transaction and any such designee may assume such obligations. Dealer shall
be discharged of its obligations to Counterparty to the extent of any such performance. 

  

	 	(j)	Staggered Settlement. If, in the reasonable judgment of Dealer, it is advisable to do so under any applicable law, regulation or internal policy, Dealer may by notice to
Counterparty prior to the Settlement Date (the “Nominal Settlement Date”), elect to deliver the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the Nominal Settlement
Date as follows: 

 (i) in such notice, Dealer will specify to Counterparty the related Staggered Settlement
Dates (each of which will be on or prior to such Nominal Settlement Date) or delivery times and how it will allocate the Shares it is otherwise required to deliver on such Settlement Date among the Staggered Settlement Dates or delivery times; and

 (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on all such Staggered Settlement
Dates and delivery times will equal the number of Shares that Dealer would otherwise be required to deliver on such Nominal Settlement Date. 

	 	(k)	Early Unwind. In the event the sale by Counterparty of the Exchangeable Notes is not consummated with the initial purchasers pursuant to the Purchase Agreement for any reason
by the close of business in New York on May 8, 2007 (or such later date as agreed upon by the parties) (May 8, 2007, or such later date being the “Early Unwind Date”), the Transaction shall automatically terminate (the
“Early Unwind”), on the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations of Dealer and Counterparty thereunder shall be cancelled and terminated and (ii) if the sale of the
Exchangeable Notes is not consummated by the initial purchasers for any reason other than as a result of breach of the Purchase Agreement by any initial purchaser, Counterparty shall pay to Dealer an amount in cash equal to the aggregate amount of
costs and expenses relating to the unwinding of Dealer’s hedging activities in respect of the Transaction (including market losses incurred in reselling any Shares purchased by Dealer or its affiliates in connection with such hedging
activities). Following such termination, cancellation and payment, each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of either
party arising out of and to be performed in connection with the Transaction either prior to or after the Early Unwind Date. Dealer and Counterparty represent and acknowledge to the other that upon an Early Unwind and following the payment referred
to above, all obligations with respect to the Transaction shall be deemed fully and finally discharged. For the avoidance of doubt, this Section 9(k) shall become effective as of the Trade Date and shall remain in effect whether or not the
Effective Date of the Transaction occurs. 

  

	 	(l)	Role of Agent. (i) Each party agrees and acknowledges that Agent is acting as agent for the parties but does not guarantee the performance of any party and the Dealer
shall not contact the Counterparty or the Parent and neither the Parent not the Counterparty shall contact the Dealer with respect to any matter relating to the Transaction without the direct involvement of Agent; (ii) Agent is not a member of
the Securities Investor Protection Corporation; (iii) Agent, Dealer, Counterparty and Parent each hereby acknowledges that any transactions by Dealer or Agent in the Shares will be undertaken by Dealer or Agent, as the case may, as principal
for its own account; and (iv) all of the actions to be taken by Dealer and Agent in connection with the Transaction, including but not limited to any exercise of any rights with respect to the Options, shall be taken by Dealer or Agent
independently and without any advance or subsequent consultation with Counterparty or Parent, and (v) Agent is hereby authorized to act as agent for Counterparty and Parent only to the extent required to satisfy the requirements of Rule 15a-6
under the Exchange Act in respect of the Options described hereunder. 

  

	 	(m)	Dividends. If at any time during the period from and including the Trade Date, to and including the Expiration Date, (i) an ex-dividend date for a cash dividend occurs
with respect to the Shares (an “Ex-Dividend Date”), and that dividend is less than the Regular Dividend on a per Share basis or (ii) if no Ex-Dividend Date for a cash dividend occurs with respect to the Shares in any quarterly
dividend period of Counterparty, then the Calculation Agent will adjust the Cap Price to preserve the fair value of the Options to Dealer after taking into account such dividend or lack thereof. “Regular Dividend” shall mean USD
0.57 per Share per quarter. 

  

	 	(n)	Additional Termination Events. Notwithstanding anything to the contrary in this Confirmation, upon the occurrence of an Exchange Date for any Exchangeable Notes prior to
March 1, 2012 (an “Early Exchange”) or upon the occurrence of a Make Whole Exchange (regardless of the Exchange Date): 

  

	 	(i)	Counterparty shall within one Scheduled Trading Day of the relevant Exchange Date provide written notice (an “Unwind Exchange Notice”) to Dealer specifying the
number of Exchangeable Notes exchanged on such Exchange Date and identifying the related exchanges as Early Exchanges or Make Whole Exchanges, as applicable; 

	 	(ii)	such Early Exchange or Make Whole Exchange, as applicable, shall constitute an Additional Termination Event hereunder with respect to a number of Options equal to the Applicable
Percentage times the number of Exchangeable Notes surrendered for exchange in connection with such Early Exchange or Make Whole Exchange, as applicable, (the “Affected Number of Options”), in which case (x) the sole
Affected Transaction shall consist of a transaction identical to the Transaction except that Number of Options for such Affected Transaction shall equal the Affected Number of Options and Counterparty shall be deemed the sole Affected Party and
(y) the Transaction shall remain in full force and effect, except that the Number of Options subject to the Transaction immediately prior to the Exchange Date for such Early Exchange or Make Whole Exchange, as applicable, shall as of such
Exchange Date be reduced by the Affected Number of Options; 

  

	 	(iii)	notwithstanding anything to the contrary in the Agreement, Dealer shall designate an Early Termination Date in respect of such Affected Transaction, which shall be no earlier than
one Scheduled Trading Day following the Exchange Date for the related Early Exchange or Make Whole Exchange, as applicable; 

  

	 	(iv)	for the avoidance of doubt, in determining the amount payable in respect of such Affected Transaction pursuant to Section 6 of the Agreement, the Calculation Agent shall assume
that (x) the relevant Early Exchange or Make Whole Exchange, as applicable, had not occurred, and (y) the corresponding Exchangeable Notes remain outstanding. 

  

	 	(o)	Disclosure. Effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that are provided to Counterparty relating to such tax
treatment and tax structure. 

  

	 	(p)	Setoff. In addition to and without limiting any rights of set-off that a party hereto may have as a matter of law, pursuant to contract or otherwise, upon the occurrence of
an Early Termination Date, Dealer shall have the right to set off any obligation that it may have to Counterparty under this Confirmation, including without limitation any obligation to make any payment of cash or delivery of Shares to Counterparty,
against any obligation Counterparty may have to Dealer under any other agreement between Dealer and Counterparty relating to Shares (each such contract or agreement, a “Separate Agreement”), including without limitation any
obligation to make a payment of cash or a delivery of Shares or any other property or securities. For this purpose, Dealer shall be entitled to convert any obligation (or the relevant portion of such obligation) denominated in one currency into
another currency at the rate of exchange at which it would be able to purchase the relevant amount of such currency, and to convert any obligation to deliver any non-cash property into an obligation to deliver cash in an amount calculated by
reference to the market value of such property as of the Early Termination Date, as determined by the Calculation Agent in its sole discretion; provided that in the case of a set-off of any obligation to release or deliver assets against any
right to receive fungible assets, such obligation and right shall be set off in kind and; provided further that in determining the value of any obligation to deliver Shares, the value at any time of such obligation shall be determined by
reference to the market value of the Shares at such time, as determined in good faith by the Calculation Agent. If an obligation is unascertained at the time of any such set-off, the Calculation Agent may in good faith estimate the amount or value
of such obligation, in which case set-off will be effected in respect of that estimate, and the relevant party shall account to the other party at the time such obligation or right is ascertained. 

  

	 	(q)	 Status of Claims in Bankruptcy. Dealer acknowledges and agrees that this Confirmation is not intended to convey to Dealer rights against Counterparty with
respect to the Transaction 

	 	 
that are senior to the claims of unitholders of Counterparty in any U.S. bankruptcy proceedings of Counterparty or Parent; provided that nothing
herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty or Parent of its obligations and agreements with respect to the Transaction; provided, further, that nothing
herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transactions other than the Transaction. 

  

	 	(r)	Securities Contract; Swap Agreement. Each of Dealer, Parent and Counterparty agrees and acknowledges that Dealer is a “swap participant” and “financial
participant” within the meaning of Section 101(22), 101(53C) and 101(22A) of Title 11 of the United State Code (the “Bankruptcy Code”). The parties hereto further agree and acknowledge (A) that this Confirmation is
(i) a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and delivery hereunder is a “settlement payment,” as such term is defined in
Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery hereunder is a “transfer,” as
such term is defined in Section 101(54) of the Bankruptcy Code, and (B) that Dealer is entitled to the protections afforded by, among other sections, Section 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.

  

	 	(s)	Governing Law. New York law (without regard to choice of law doctrine). 

  

	 	(t)	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to this Transaction. Each party (i) certifies that no representative, agent or attorney of either party has represented, expressly or otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Transaction, as applicable, by, among other things, the mutual waivers and certifications provided herein.

  

	 	(u)	Right to Extend. Dealer may postpone any Exercise Date or any other date of valuation or delivery by Dealer, with respect to some or all of the relevant Options (in which
event the Calculation Agent shall make appropriate adjustments to the number of Net Shares to be Delivered or Option Cash Settlement Amount, as applicable), if Dealer determines, in its reasonable discretion, that such extension is reasonably
necessary or appropriate to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in connection with its hedging, hedge unwind or settlement
activity hereunder in a manner that would, if Dealer were Counterparty or an affiliated purchaser of Counterparty, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies and procedures applicable
to Dealer. 

  

	 	(v)	 Registration. Counterparty hereby agrees that if, in the good faith reasonable judgment of Dealer, the Shares (the “Hedge Shares”) acquired
by Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the U.S. public market by Dealer without registration under the Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer
to sell the Hedge Shares in a registered offering, make available to Dealer an effective registration statement under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and substance
satisfactory to Dealer, substantially in the form of an underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form for registered offerings of equity securities,
(C) provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents customary in form for registered offerings
of equity securities and (E) afford Dealer a reasonable opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities; provided, however,
that if Dealer, in its sole reasonable discretion, is not satisfied with access to due 

	 	 
diligence materials, the results of its due diligence investigation, or the procedures and documentation for the registered offering referred to above, then
clause (ii) or clause (iii) of this Section 9(v) shall apply at the election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private placement, enter into a private placement agreement substantially
similar to private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Dealer, including customary representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Dealer, due diligence rights (for Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such other documentation as is customary for private placements agreements, all reasonably
acceptable to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares
incurred on the sale of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP Price on such Exchange Business Days, and in the amounts, as requested by Dealer. “VWAP Price” means, on
any Exchange Business Day, the per Share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page.PEI <equity> VAP (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Exchange Business Day (or if such volume-weighted average price is unavailable, the market value of one Share on such Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method).

  

	 	(w)	Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events. If in respect of the Transaction, an amount is payable by Dealer to
Counterparty (i) pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (ii) pursuant to Section 6(d)(ii) of the Agreement (a “Payment Obligation”), Counterparty may request Dealer to satisfy
any such Payment Obligation by the Share Termination Alternative (as defined below) (except that Counterparty shall not make such an election in the event of a Nationalization, Insolvency or Merger Event, in each case, in which the consideration to
be paid to holders of Shares consists solely of cash, or an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, other than an Event of Default of the type described in
Section 5(a)(iii), (v), (vii) or (viii) of the Agreement or a Termination Event of the type described in Section 5(b)(i), (ii), (iii), (iv) or (v) of the Agreement or an Additional Termination Event as a result of an
Early Conversion (but not, for the avoidance of doubt, a Make-Whole Exchange), in each case that resulted from an event or events outside Counterparty’s control) and shall give irrevocable telephonic notice to Dealer, confirmed in writing
within one Currency Business Day, no later than 12:00 p.m. New York local time on the Merger Date, the Announcement Date (in the case of Nationalization, Insolvency or Delisting), Early Termination Date or date of cancellation, as applicable.

  

			
	Share Termination Alternative:	  	Applicable and means that Dealer shall deliver to Counterparty the Share Termination Delivery Property on the date when the Payment Obligation would otherwise be due pursuant to Section 12.7
or 12.9 of the Equity Definitions or Section 6(d)(ii) and 6(e) of the Agreement, as applicable (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation in the manner reasonably requested by Counterparty free
of payment.
		
	Share Termination Delivery Property:	  	A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation divided by the Share Termination Unit Price. The Calculation
Agent

			
		  	shall adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on
the values used to calculate the Share Termination Unit Price.
		
	Share Termination Unit Price:	  	The value to Dealer of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property,
as determined by the Calculation Agent in its discretion by commercially reasonable means and notified by the Calculation Agent to Dealer at the time of notification of the Payment Obligation.
		
	Share Termination Delivery Unit:	  	One Share or, if a Merger Event has occurred and a corresponding adjustment to the Transaction has been made, a unit consisting of the number or amount of each type of property received by a
holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Merger Event, as determined by the Calculation Agent.
		
	Failure to Deliver:	  	Applicable
		
	Other applicable provisions:	  	If the Transaction is to be Share Termination Settled, the provisions of Sections 9.9, 9.11, 9.12 and 10.5 (as modified above) of the Equity Definitions will be applicable, except that all
references in such provisions to “Physically-Settled” shall be read as references to “Share Termination Settled” and all references to “Shares” shall be read as references to “Share Termination Delivery
Units”. “Share Termination Settled” in relation to the Transaction means that Share Termination Settlement is applicable to the Transaction.

 10. Representation of Dealer: 
 Dealer represents and warrants to and for the benefit of Counterparty and Parent as follows: the Transaction does not have a value of more than 10 percent
of the total value of Dealer’s outstanding securities. 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this
Confirmation and returning it to Dealer. 
  

					
	Very truly yours,
		
	 	 	UBS AG, LONDON BRANCH
			
		 	By:	 	 /s/ Paul Stowell

		 	Authorized Signatories
		 	Name:	 	Paul Stowell
			
		 	By:	 	 /s/ Dmitriy Mandel

		 	Authorized Signatories
		 	Name:	 	Dmitriy Mandel

  

					
	Accepted and confirmed
	as of the Trade Date:
	
	PREIT ASSOCIATES, L.P.
			
		 	By:	 	Pennsylvania Real Estate Investment Trust
		
		 	 /s/ Bruce Goldman

		 	Authorized Signatory
		 	Name:	 	Bruce Goldman
	
	PENNSYLVANIA REAL ESTATE INVESTMENT TRUST
			
		 	By:	 	 /s/ Bruce Goldman

		 	Authorized Signatory
		 	Name:	 	Bruce GoldmanLicense Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
 [NOTE: CERTAIN PORTIONS OF THIS DOCUMENT HAVE BEEN MARKED TO INDICATE THAT CONFIDENTIAL
INFORMATION HAS BEEN OMITTED. CONFIDENTIALITY HAS BEEN REQUESTED FOR THIS CONFIDENTIAL INFORMATION. THE CONFIDENTIAL PORTIONS HAVE BEEN PROVIDED SEPARATELY TO THE SECURITIES AND EXCHANGE COMMISSION] 
  

 LICENSE AGREEMENT

 by and between 
 INSPIRE PHARMACEUTICALS, INC. 
 and 
 INSITE VISION INCORPORATED 
 Dated as of February 15, 2007 
  

  

 TABLE OF CONTENTS 
  

					
	ARTICLE 1 DEFINITIONS	  	1
	ARTICLE 2 LICENSES AND EXCLUSIVITY	  	12
	        2.1	 	Licenses	  	12
	        2.2	 	Sublicenses	  	13
	        2.3	 	InSite Trademarks and Domain Names	  	14
	        2.4	 	Use of Affiliates and Third Party Contractors	  	15
	        2.5	 	Reserved Interests	  	15
	        2.6	 	No Implied Grants	  	15
	        2.7	 	Registration of License	  	15
	        2.8	 	Supply of API	  	15
	        2.9	 	Supply of Finished Product	  	16
	        2.10	 	Option for Option Product License	  	16
	        2.11	 	Inspire Blocking Patent Rights	  	17
	ARTICLE 3 DEVELOPMENT AND COMMERCIALIZATION	  	17
	        3.1	 	Data and Materials Transfer and Right of Reference	  	17
	        3.2	 	Current Product Development	  	18
	        3.3	 	Regulatory Matters; InSite Assistance.	  	19
	        3.4	 	Commercialization	  	21
	        3.5	 	Reports	  	22
	        3.6	 	Adverse Event Reporting	  	22
	        3.7	 	Coordination Committee	  	23
	        3.8	 	Future Development	  	24
	ARTICLE 4 INITIAL PAYMENT AND MILESTONE PAYMENT	  	25
	        4.1	 	Initial Payment	  	25
	        4.2	 	Milestone Payment upon Regulatory Approval	  	25
	        4.3	 	Payment	  	25
	ARTICLE 5 ROYALTIES	  	26
	        5.1	 	Royalty Rates	  	26
	        5.2	 	Royalty Term	  	26
	        5.3	 	Minimum Royalty.	  	26
	        5.4	 	Reports and Payments	  	28
	        5.5	 	Taxes and Withholding	  	29
	        5.6	 	Currency Exchange; Manner and Place of Payment	  	29
	        5.7	 	Maintenance of Records; Audit	  	29
	        5.8	 	Reductions	  	30
	ARTICLE 6 TRADEMARKS	  	33
	        6.1	 	Registrations	  	33
	        6.2	 	Inspire Trademarks	  	33
	ARTICLE 7 REPRESENTATIONS, WARRANTIES AND COVENANTS	  	33
	        7.1	 	Mutual Representations and Warranties	  	33
	        7.2	 	Additional InSite Representations and Warranties	  	34
	        7.3	 	Additional Inspire Representations and Warranties	  	38
	        7.4	 	No Implied Warranties	  	38
	        7.5	 	Certain Additional Covenants.	  	38

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	ARTICLE 8 CONFIDENTIALITY, PUBLICATION AND PUBLIC ANNOUNCEMENTS	  	41
	        8.1	 	Confidentiality	  	41
	        8.2	 	Authorized Disclosure	  	41
	        8.3	 	Scientific Publications	  	41
	        8.4	 	Disclosure of Agreement	  	42
	        8.5	 	Unauthorized Use	  	43
	        8.6	 	Return of Confidential Information	  	43
	ARTICLE 9 INDEMNIFICATION	  	43
	        9.1	 	Inspire	  	43
	        9.2	 	InSite	  	43
	        9.3	 	Indemnification Procedures	  	43
	        9.4	 	Insurance Proceeds	  	45
	        9.5	 	Insurance	  	45
	ARTICLE 10 TERM AND TERMINATION	  	45
	        10.1	 	Term	  	45
	        10.2	 	Voluntary Termination by Inspire	  	45
	        10.3	 	Material Breach	  	46
	        10.4	 	Bankruptcy or Insolvency	  	46
	        10.5	 	Continuing Rights of Sublicensees	  	46
	        10.6	 	Effect of Expiration or Termination of Agreement.	  	47
	        10.7	 	Effect of Partial Termination of Agreement.	  	48
	        10.8	 	Inspire Remedy for Uncured Breach	  	48
	        10.9	 	Rights in Bankruptcy	  	49
	ARTICLE 11 INTELLECTUAL PROPERTY	  	49
	        11.1	 	Prosecution of InSite Licensed Patents	  	49
	        11.2	 	Right to Consult	  	49
	        11.3	 	Abandonment of Prosecution by InSite	  	50
	        11.4	 	Patent Term Extensions	  	50
	        11.5	 	Third Party Infringement	  	50
	        11.6	 	Infringement of Third Party Rights	  	52
	ARTICLE 12 MISCELLANEOUS	  	53
	        12.1	 	Consideration	  	53
	        12.2	 	Assignment	  	53
	        12.3	 	Further Actions	  	53
	        12.4	 	Notices	  	53
	        12.5	 	Amendment	  	54
	        12.6	 	Waiver	  	54
	        12.7	 	Counterparts; Facsimile Signatures	  	54
	        12.8	 	Descriptive Headings	  	55
	        12.9	 	Governing Law; Dispute Resolution	  	55
	        12.10	 	Severability	  	55
	        12.11	 	Entire Agreement of the Parties	  	55
	        12.12	 	Independent Parties	  	55
	        12.13	 	Accrued Rights; Surviving Obligations	  	55

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	        12.14	 	Certain Remedies	  	56
	        12.15	 	Expenses	  	56
	        12.16	 	No Third Party Beneficiaries	  	56
	        12.17	 	No Strict Construction	  	56

  

 -iii- 

 LICENSE AGREEMENT 
 This LICENSE AGREEMENT (this “Agreement”), dated as of February 15, 2007 (the “Effective Date”), is made by and between Inspire Pharmaceuticals, Inc., a Delaware corporation
having its principal office at 4222 Emperor Blvd., Suite 200, Durham, NC 27703 (“Inspire”), and InSite Vision Incorporated, a Delaware corporation having its principal office at 965 Atlantic Ave., Alameda, CA 94501
(“InSite”). Inspire and InSite are each sometimes referred to individually as a “Party” and together as the “Parties.” 
 RECITALS 
 WHEREAS, InSite is engaged in the research, development and commercialization of
proprietary pharmaceutical products for the treatment of ophthalmic indications and owns certain patents, know-how and regulatory filings relating to certain products; 
 WHEREAS, Inspire is engaged in the research, development and commercialization of proprietary pharmaceutical products for the treatment of ophthalmic indications; and 
 WHEREAS, Inspire desires to obtain from InSite, and InSite desires to grant to Inspire, the exclusive rights in the Territory to certain patents,
know-how and regulatory filings for the commercialization of Subject Products (each as defined below). 
 NOW, THEREFORE, in consideration of
the foregoing premises and the mutual representations, covenants and agreements contained herein, Inspire and InSite, intending to be legally bound, hereby agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 When used in this Agreement, whether in the singular or plural, each of the following capitalized terms shall have the meanings set forth in this Article 1. 

1.1 “2006 Senior Notes” has the meaning set forth in Section 7.1(e). 
 1.2 “Acceptable Label” means, for a Subject Product in the United States, FDA-approved labeling for the treatment of bacterial conjunctivitis, where such label: (a) indicates dosing of such
Subject Product of not more than two (2) times daily for seven (7) days, (b) permits expiration dating of such Subject Product of no less than eighteen (18) months, and (c) has a comparable side effect profile to ocular
antibiotics being marketed as of the Effective Date. 
 1.3 “Affiliate” means a corporation or non-corporate business entity that, directly
or indirectly, controls, is controlled by, or is under common control with the Person specified. An entity will be regarded as in control of another entity if: (a) it owns, directly or indirectly, at least 50% of the voting securities or
capital stock of such entity, or has other comparable ownership interest with respect to any entity other than a corporation; or (b) it possesses, directly or indirectly, the power to direct or cause the direction of the management and policies
of the corporation or non-corporate business entity, as applicable, whether through the ownership or control of voting securities, by contract or otherwise. 
  

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 1.4 “AzaSite Patent Rights” means, collectively, (a) (i) all Patent Rights related to any
Subject Product or its manufacture or use that are Controlled by InSite or an Affiliate of InSite as of the Effective Date, including without limitation all patents and patent applications listed as “AzaSite Patent Rights” in Schedule
1, as may be amended by the Parties from time to time, and (ii) all Patent Rights with priority based on such patents or patent applications or on any application on which the priority of such patents or patent applications is based,
(b) all Patent Rights, other than those set forth in the foregoing clause (a), that are Controlled by InSite or an Affiliate of InSite as of the Effective Date or at any time thereafter during the Term and are necessary to make, have made, use,
sell, offer for sale or import any Subject Product in the Field in the Territory, and (c) all Patent Rights related to any InSite Developments that are Controlled by InSite or an Affiliate of InSite. Notwithstanding the foregoing, the term
“AzaSite Patent Rights” shall not include the Container Patent Rights, the DuraSite Patent Rights, the Columbia Patent Rights or the Pfizer Patent Rights. 
 1.5 “AzaSite Trademark” means the trademark AzaSiteTM. 
 1.6 “Breach Notice” has the
meaning set forth in Section 10.3. 
 1.7 “Breaching Party” has the meaning set forth in Section 10.3. 
 1.8 “Business Day” means any day, except Saturday and Sunday, on which commercial banking institutions in New York are open for business. Any reference
in this Agreement to “day” whether or not capitalized shall refer to a calendar day, not a Business Day. 
 1.9 “Cardinal” means
Cardinal Health PTS, LLC. 
 1.10 “Cardinal Agreement” means the Manufacturing Services Agreement entered into by InSite and Cardinal on
September 12, 2005. 
 1.11 “Columbia” means Columbia Laboratories, Inc. 
 1.12 “Columbia Agreement” means the letter agreement entered into by and between InSite and Columbia on February 27, 1992. 
 1.13 “Columbia Patent Rights” means all Patent Rights licensed to InSite under the Columbia Agreement related to any Subject Product or its manufacture or use, including without limitation all patents
listed as “Columbia Patent Rights” in Schedule 1, in each case to the extent Controlled by InSite or an Affiliate of InSite as of the Effective Date and any time thereafter during the Term. 
 1.14 “Commercially Reasonable Efforts” means, with respect to the efforts of a particular Party to complete specific tasks or obligations under this
Agreement, the efforts and resources that would be used, consistent with prevailing pharmaceutical industry standards, by a company of similar size and scope to such Party with respect to a product or potential product at a similar stage in its
development or product life and of similar market potential, taking into account efficacy, safety, the anticipated Regulatory Authority approved labeling, the competitiveness of alternative products in the marketplace or under development, the
profitability of the product including the royalties payable to Third Party licensors, the patent and other proprietary position 

  

 2 

 
of the product, the likelihood of Regulatory Approval, the commercial value of the product and other relevant factors. Commercially Reasonable Efforts shall
be determined on a country-by-country basis for a particular product or potential product, and it is anticipated that the level of effort will change over time, reflecting changes in the status of the product or potential product and the market
involved. 
 1.15 “Confidential Information” of a Party means all secret, confidential or proprietary information or data, whether provided
in written, oral, graphic, video, computer or other form, provided by such Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) pursuant to this Agreement (including information generated by or
on behalf of such Party pursuant to this Agreement and disclosed to the other Party), which may include without limitation information relating to the Disclosing Party’s existing or proposed research, development efforts, sales and supply
forecasts, financial projections, other sales and marketing information, patent applications, business or products and any other materials that have not been made available by the Disclosing Party to the general public. The terms of this Agreement
shall also be deemed Confidential Information of each Party, except to the extent disclosed pursuant to Section 8.4 herein. Notwithstanding the foregoing sentences, the term “Confidential Information” shall not include any information
or materials that the Receiving Party can demonstrate: 
 (a) were already known to the Receiving Party (other than under an obligation of
confidentiality), at the time of disclosure by the Disclosing Party to the extent such Receiving Party has documentary evidence to that effect; 
 (b) were generally available to the public or otherwise part of the public domain at the time of its disclosure to the Receiving Party; 
 (c) became generally available to the public or otherwise part of the public domain after its disclosure or development, as the case may be, and other than through any act or omission of the Receiving Party in breach of its confidentiality
obligations under this Agreement; 
 (d) were subsequently lawfully disclosed to the Receiving Party by a Third Party who had no obligation to
the Disclosing Party not to disclose such information to others; 
 (e) were independently discovered or developed by or on behalf of the
Receiving Party without the use of the Confidential Information belonging to the other Party and the Receiving Party has documentary evidence to that effect; or 
  

	(f)	is approved for release by the Disclosing Party in writing. 

 1.16
“Container Patent Rights means, collectively, (a) (i) all patents and patent applications listed as “Container Patent Rights” in Schedule 1, as may be amended by the Parties from time to time, and (ii) all
Patent Rights with priority based on such patents or patent applications or on any application on which the priority of such patents or patent applications is based, and (b) all Patent Rights, other than those set forth in the foregoing clause
(a), that are Controlled by InSite or an Affiliate of InSite as of the Effective Date or at any time thereafter during the Term and are necessary to make, have made, use, sell, offer for sale or import any Subject Product in the Field in the
Territory. 
  

 3 

 1.17 “Control,” “Controls,” or “Controlled” means, with respect to
specific materials, Know-How or Patent Rights, that the applicable Party owns or has a license under such materials, Know-How or Patent Rights and has the ability to grant to the other Party licenses or sublicenses thereto as contemplated under this
Agreement without violating the terms of any agreement or other arrangement with, or the rights of, any Third Party existing as of the date on which such license or sublicense is granted. 
  

	1.18	“Coordination Committee” has the meaning set forth in Section 3.7. 

  

	1.19	“Course of Action” has the meaning set forth in Section 11.6(a). 

  

	1.20	“Current Indication” means bacterial conjunctivitis. 

 1.21 “Current Product” means the Subject Product with the composition and formulation described in the IND with the number 62,873 or NDA with the number 50-810, as each may be amended, for the Current Indication.

  

	1.22	“[***] Agreement” means the letter agreement entered into by InSite and [***]. 

  

	1.23	“Disclosing Party” has the meaning set forth in Section 1.15. 

 1.24 “Domain Names” means the internet domain names set forth in Schedule 1.24, such domain names being owned and registered by InSite. 
 1.25 “Drug Master File” means a Drug Master File, as defined in the U.S. Federal Food, Drug, and Cosmetic Act, pursuant to 21 C.F.R. § 314.420 as
amended, and the regulations promulgated thereunder (or the equivalent thereto as specified in any succeeding legislation), or any foreign equivalent thereto, with respect to the manufacture of any Subject Product or an Inspire Licensed Product.

 1.26 “DuraSite Patent Rights” means, collectively, (a) (i) all patents and patent applications listed as “DuraSite Patent
Rights” in Schedule 1, as may be amended by the Parties from time to time, and (ii) all Patent Rights with priority based on such patents or patent applications or on any application on which the priority of such patents or patent
applications is based, and (b) all Patent Rights, other than those set forth in the foregoing clause (a), that are Controlled by InSite or an Affiliate of InSite as of the Effective Date or at any time thereafter during the Term and are
necessary to make, have made, use, sell, offer for sale or import any Subject Product in the Field in the Territory. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions. 
  

 4 

 1.27 “FDA” means the United States Food and Drug Administration, or any successor agency thereof.

 1.28 “Field” means the treatment, prevention or palliation of any human ocular or ophthalmic disease or condition. 
 1.29 “First Commercial Sale” means, with regard to a particular Inspire Licensed Product in a country in the Territory, the first commercial sale by
Inspire or its Affiliate or sublicensee of such Inspire Licensed Product to a Third Party for end use or consumption in such country after Inspire’s (or its Affiliate’s or sublicensee’s) receipt of Regulatory Approval for such Inspire
Licensed Product in such country. Use of Inspire Licensed Products for promotional, sampling or compassionate use purposes that are customary in the prevailing pharmaceutical industry shall not be considered a commercial sale hereunder. 

1.30 “Future Development” means any and all Know-How, developments, inventions or discoveries in the Field conceived, reduced to practice, made or
developed by or on behalf of InSite or any of its Affiliates (whether or not patentable) during the Term, and any Patent Rights related thereto not otherwise licensed to Inspire under Section 2.1 of this Agreement, in each case that are:
(i) Controlled by InSite or its Affiliate, (ii) used by or on behalf of InSite or its Affiliate in the context of a phase I clinical trial, and (iii) necessary or useful to develop, manufacture or commercialize any Subject Product in
the Field in the Territory. Notwithstanding the foregoing, the term “Future Development” shall not include any InSite Developments or the Option Product. 
 1.31 “Future Development Option Notice” has the meaning set forth in Section 3.8. 
 1.32 “Future Development Option
Term” has the meaning set forth in Section 3.8. 
 1.33 “GAAP” means United States generally accepted accounting principles as
interpreted and accepted by the Financial Accounting Standards Board and the Securities and Exchange Commission. 
 1.34 “Generic
Competition” means that one or more Third Parties are marketing, for use in human beings, a Generic Equivalent in a country within the Territory. 
 1.35 “Generic Equivalent” means a [***].  
 1.36 “IND” means an Investigational New Drug Application, as
defined in the U.S. Federal Food, Drug, and Cosmetic Act, pursuant to 21 C.F.R. § 312.3 as amended, and the regulations promulgated thereunder, or the equivalent thereto as specified in any succeeding legislation. 
 1.37 “Indemnitee” has the meaning set forth in Section 9.3(a). 
 1.38 “Indemnitor” has the meaning set forth in Section 9.3(a). 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions. 
  

 5 

	1.39	“Independent Sublicensee” has the meaning set forth in Section 10.5. 

  

	1.40	“Infringement Notice” has the meaning set forth in Section 11.5(a). 

  

	1.41	“Initial Payment” has the meaning set forth in Section 4.1. 

  

	1.42	“Initial Royalty Period” has the meaning set forth in Section 5.1(a). 

 1.43 “InSite Developments” means any and all Know-How, developments, inventions or discoveries conceived, reduced to practice, made or developed by or on behalf of InSite or any of its Affiliates
(whether or not patentable) at any time from the Effective Date up to and including the Transfer Date, and any Patent Rights related thereto, in each case that are Controlled by InSite or its Affiliate and are necessary or useful to develop,
manufacture or commercialize any Subject Product for the Current Indication in the Field in the Territory. 
 1.44 “InSite Formulation
Know-How” means the formulation of polycarbophil, sodium chloride EDTA, disodium and sterile water for irrigation, and any Know-How specifically related thereto, in each case Controlled by InSite or its Affiliate as of the Effective Date.

  

	1.45	“InSite Indemnitees” has the meaning set forth in Section 9.1. 

 1.46 “InSite Intellectual Property” means, collectively, the InSite Owned Patents, the InSite Know-How, the InSite Formulation Know-How, the InSite Trademarks and the Domain Names. 
 1.47 “InSite Know-How” means, collectively, (a) all Know-How related to any Subject Product that is Controlled by InSite or any of its Affiliates
as of the Effective Date, and (b) all Know-How related to any InSite Developments that is Controlled by InSite or any of its Affiliates at any time from the Effective Date up to and including the Transfer Date. Notwithstanding the foregoing,
the term “InSite Know-How” shall not include the InSite Formulation Know-How. 
  

	1.48	“InSite License Fee” has the meaning set forth in Section 4.1(b). 

 1.49 “InSite Licensed Patents” means, collectively, the DuraSite Patent Rights, the Columbia Patent Rights, the AzaSite Patent Rights, the Container Patent Rights and the Pfizer Patent Rights.

 1.50 “InSite Owned Patents” means, collectively, the DuraSite Patent Rights, the AzaSite Patent Rights and the Container Patent Rights.

 1.51 “InSite Trademarks” means the trademarks set forth in Schedule 1.24, such marks being owned and registered by InSite.

 1.52 “Inspire Blocking Patent Rights” means all Patent Rights that are Controlled by Inspire or an Affiliate of Inspire at any time
during the Term and are necessary to make, have made, use, sell, offer for sale or import Subject Products in the Field outside the Territory. 
  

	1.53	“Inspire Indemnitees” has the meaning set forth in Section 9.2. 

  

 6 

 1.54 “Inspire Improvement” has the meaning set forth in Section 3.8(a). 
 1.55 “Inspire Licensed Product” means any Subject Product of Inspire or its Affiliate or sublicensee (a) whose manufacture, use, sale, distribution
or importation by Inspire would, absent the licenses granted by InSite to Inspire herein, infringe any Valid Claim included in the InSite Licensed Patents, determined on a country-by-country basis, and/or (b) materially uses or incorporates the
InSite Know-How or the InSite Formulation Know-How. 
 1.56 “Inspire Royalties” has the meaning set forth in Section 5.1. 

1.57 “Inspire Royalty Term” has the meaning set forth in Section 5.2. 
 1.58 “Inspire Trademarks” has the meaning set forth in Section 6.2. 
 1.59 “IP
Communication” has the meaning set forth in Section 7.5(h). 
 1.60 “Know-How” means all non-public information, results and
data of any type whatsoever, in any tangible or intangible form whatsoever, whether or not patentable, including databases, practices, methods, techniques, specifications, formulations, formulae, knowledge, skill, experience, data (including
pharmacological, medicinal chemistry, biological, chemical, biochemical, toxicological and clinical study data), analytical and quality control data, stability data, studies and procedures, and manufacturing process and development information,
results and data (other than such Know-How which is or becomes the subject of a Patent Right). 
 1.61 “Knowledge” means, with respect to a
particular fact or matter, the applicable Party or its Affiliate is actually aware of that fact or matter as of the Effective Date following a reasonable internal review and discussion with such Party’s or Affiliate’s officers and
employees who could reasonably be expected to be aware of such fact or matter. 
 1.62 “Lien” means (a) any interest in property
(whether real, personal or mixed and whether tangible or intangible) which secures an obligation owed to, or a claim by, a Person other than the owner of such property, whether such interest is based on the common law, statute or contract,
including, without limitation, any such interest arising from a lease, license, mortgage, charge, pledge, hypothecation, security agreement, conditional sale, trust receipt or deposit in trust, or arising from a consignment of bailment given for
security purposes (other than a trust receipt or deposit given in the ordinary course of business which does not secure any obligation for borrowed money), (b) any encumbrance upon such property which does not secure such an obligation,
(c) any exception to or defect in the title to or ownership interest in such property, including, without limitation, reservations, rights of entry, possibilities of reverter, encroachments, easements, rights of way, restrictive covenants and
licenses, and (d) any other claim, charge or commitment. For the avoidance of doubt, “Lien” shall not include any of the Material Agreements or any other license under the InSite Intellectual Property, or other agreements not related
to the Subject Products or the InSite Intellectual Property, that InSite enters into in its ordinary course of business after the Effective Date. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions. 
  

 7 

	1.63	“Losses” has the meaning set forth in Section 9.1. 

 1.64 “Material Agreements” means, collectively, the Pfizer Agreement, the Columbia Agreement, the Cardinal Agreement and the [***] Agreement. 
  

	1.65	“Milestone Payment” has the meaning set forth in Section 4.2. 

  

	1.66	“Minimum Royalty” has the meaning set forth in Section 5.3. 

 1.67 “Minimum Royalty Date” means the first Quarter Start Date that is at least one year (365 days) after the date of the First Commercial Sale of an Inspire Licensed Product in the United States. 
 1.68 “Minimum Royalty Period” means the one-year period commencing on the Minimum Royalty Date or any yearly anniversary thereof, as applicable.

 1.69 “NDA” means a New Drug Application pursuant to 21 U.S.C. § 505(b)(1) or § 505(b)(2) submitted to the FDA or any successor
application or procedure required for Regulatory Approval to commence sale of a Subject Product. 
 1.70 “Net Sales” means the gross amounts
invoiced by Inspire, any of its Affiliates or any of its sublicensees for sales of Inspire Licensed Products to Third Parties, less the total of the following deductions to the extent customary in the prevailing pharmaceutical industry and actually
allowed or incurred in connection with such sales: 
 (a) trade, cash and quantity discounts; 
 (b) excise, sales and other consumption taxes and custom duties to the extent included in the invoice price; 
 (c) freight, handling, insurance and other transportation or distribution charges and fees to the extent included in the invoice price; 
 (d) amounts repaid, credited or accrued by reason of returns, rejections, defects or recalls or because of chargebacks, allowances, adjustments,
retroactive price reductions, refunds or billing errors; 
 (e) payments and rebates related to the sale of such Inspire Licensed Products
accrued, paid or deducted pursuant to agreements (including, but not limited to, managed care agreements) with Third Parties or governmental regulations; 
 (f) any amounts actually written off or specifically identified as uncollectible, in accordance with GAAP consistently applied; and 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 
  

 8 

 (g) any other similar and customary deductions taken in accordance with GAAP consistently applied.

 Use of Inspire Licensed Products for promotional, sampling or compassionate use purposes shall not be considered in determining Net Sales. In the case of
any sale of an Inspire Licensed Product between Inspire and its Affiliates or sublicensees for resale, Net Sales shall be calculated as above only on the first arm’s length sale thereafter to a Third Party. 
  

	1.71	“New Indication” means any indication for any Subject Product other than for bacterial conjunctivitis. 

  

	1.72	“Non-Breaching Party” has the meaning set forth in Section 10.3. 

  

	1.73	“Option Notice” has the meaning set forth in Section 2.10. 

 1.74 “Option Product” means the topical anti-infective product for human ophthalmic indications, as formulated with the InSite Formulation Know-How and described in the IND with the number 76,074, as such IND may be
amended, containing only the following active ingredients in addition to other ingredients as described in such IND: (a) the chemical compound known as azithromycin or any salts, esters or hydrates thereof, and (b) the chemical compound
known as dexamethasone or any salts, esters or hydrates thereof. 
 1.75 “Option Product Phase I Clinical Trial” means a clinical trial,
having the study number C-06-502-001, to determine the safety of the Option Product (as formulated with the InSite Formulation Know-How and described in the IND with the number 76,074, as such IND may be amended) in humans, as more fully described
in 21 C.F.R. § 312.21(a). 
 1.76 “Option Term” has the meaning set forth in Section 2.10. 
 1.77 “Patent Rights” means the rights and interests in and to all issued patents and pending patent applications, including without limitation, all
provisional applications, substitutions, continuations, continuations-in-part, divisions, and renewals, all letters patent granted thereon, and all patents-of-addition, reissues, reexaminations and extensions or restorations by existing or future
extension or restoration mechanisms (including regulatory extensions), and all supplementary protection certificates, together with any foreign counterparts thereof anywhere in the Territory. 
 1.78 “Person” or “person” means any individual, firm, corporation, partnership, limited liability company, trust, unincorporated
organization or other entity or a government agency or political subdivision thereto, and shall include any successor (by merger or otherwise) of such Person. 
 1.79 “Pfizer” means Pfizer Inc. 
 1.80 “Pfizer Agreement” means the Exclusive License Agreement entered into by
InSite and Pfizer on February 15, 2007, relating to the Pfizer Patent Rights, as in effect from time to time. 
  

 9 

 1.81 “Pfizer Patent Rights” means all Patent Rights licensed to InSite under the Pfizer Agreement
related to any Subject Product or its manufacture or use, including without limitation all patents and patent applications listed as “Pfizer Patent Rights” in Schedule 1, in each case to the extent Controlled by InSite or an
Affiliate of InSite as of the Effective Date and any time thereafter during the Term. 
 1.82 “Prosecution” or “Prosecute”
means the preparation, filing, prosecution, issuance and maintenance (including, without limitation, interference, opposition and similar third party proceedings before the relevant patent office) of any patent applications or patents. 

 

	1.83	“PTO” means the United States Patent and Trademark Office. 

  

	1.84	“Publishing Party” has the meaning set forth in Section 8.3. 

  

	1.85	“Quarter Start Date” means January 1, April 1, July 1, and October 1 of any applicable year. 

  

	1.86	“Receiving Party” has the meaning set forth in Section 1.15. 

  

	1.87	“Redemption Amount” has the meaning set forth in Section 4.1(a). 

 1.88 “Regulatory Approval” means the issuance by the applicable Regulatory Authority of an action letter indicating that an NDA or foreign equivalent, as applicable, is approved. For avoidance of
doubt, Regulatory Approval does not mean that the Regulatory Authority issues an action letter indicating that an NDA or foreign equivalent is approvable. 
 1.89 “Regulatory Authority” means any national (e.g., the FDA), state, provincial or local regulatory agency, department, bureau, commission, council or other governmental entity involved in or responsible for regulation of
medicinal products intended for human use in any country. 
 1.90 “Regulatory Dossier” means the technical, medical and scientific
registrations, authorizations and approvals (including, without limitation, approvals of NDAs or foreign equivalents, supplements and amendments, pre- and post- approvals, pricing and third party reimbursement approvals, and labeling approvals) of
any Regulatory Authority necessary for the development (including the conduct of clinical trials), manufacture, distribution, marketing, promotion, offer for sale, use, import, reimbursement, export or sale of a Subject Product in the Field in a
regulatory jurisdiction in the Territory, together with all related correspondence to or from any Regulatory Authority and all documents referenced in the complete regulatory chronology for each NDA or foreign equivalent, including the IND, NDA and
supplemental new drug applications (sNDAs), or foreign equivalents in the Territory. 
 1.91 “Reserved Interests” has the meaning set forth
in Section 2.5. 
 1.92 “Reviewing Party” has the meaning set forth in Section 8.3. 
  

 10 

 1.93 “[***]” means [***]. 
 1.94 “[***] Agreement” means the Commercial Supply/Purchase Agreement entered into by InSite and [***] on April 1, 2005. 
 1.95 “Scientific Publication” has the meaning set forth in Section 8.3. 
 1.96 “SEC”
has the meaning set forth in Section 8.2. 
 1.97 “Security Agreement” has the meaning set forth in Section 7.1(e). 
 1.98 “Senior Secured Notes” has the meaning set forth in Section 7.1(e). 
 1.99 “Serious Adverse Drug Experience” means any of an “adverse drug experience,” a “life-threatening adverse drug experience,” a “serious adverse drug experience,” or an
“unexpected adverse drug experience,” as those terms are defined at either 21 C.F.R. § 312.32 or 21 C.F.R. § 314.80 or relevant foreign regulation within the Territory. 
 1.100 “Subject Product” means any topical anti-infective product for human ocular or ophthalmic indications, in any dosage strength or size, for any
mode of ocular or ophthalmic administration, containing as the sole active ingredient the chemical compound known as azithromycin or any salts, esters or hydrates thereof. 
 1.101 “Term” has the meaning set forth in Section 10.1. 
 1.102 “Territory” means the
United States and Canada and their respective territories and possessions. 
 1.103 “Third Party(ies)” means any Person other than InSite,
Inspire and their respective Affiliates. 
 1.104 “Third Party Claim” has the meaning set forth in Section 9.1. 
 1.105 “Third Party Manufacturers” means Third Parties who have been engaged by InSite to perform services or supply facilities or goods (including,
without limitation, any Subject Product) in connection with the manufacture, testing or packaging of any Subject Product by InSite. 
 1.106 “Title
11” has the meaning set forth in Section 10.9. 
 1.107 “Transfer Date” has the meaning set forth in Section 3.3(a).

  
 *Indicates that certain information contained herein has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 1.108 “Valid Claim” means a claim of an issued and unexpired patent, or a claim of a pending patent
application, within the InSite Licensed Patents, which claim has not been held invalid, unpatentable or unenforceable by a court or other government agency of competent jurisdiction from which no appeal can be further taken, and has not been held or
admitted to be invalid, unpatentable or unenforceable through abandonment, re-examination or disclaimer, opposition procedure, nullity suit or otherwise, which claim, but for the licenses granted herein, would be infringed by the manufacture, sale
or importation of an Inspire Licensed Product; provided, however, that if a claim of a pending patent application shall not have issued within three (3) years after the filing date from which such claim takes priority, such claim shall not
constitute a Valid Claim for the purposes of this Agreement unless and until such claim shall issue in a patent. 
 1.109 “Wind-Down Period”
has the meaning set forth in Section 10.6(c). 
 1.110 “Withholding Taxes” has the meaning set forth in Section 5.5. 

ARTICLE 2 
 LICENSES AND
EXCLUSIVITY 
 2.1 Licenses. 
 (a)
Subject to the terms and conditions of this Agreement, InSite hereby grants to Inspire a royalty-bearing, exclusive (even as to InSite and its Affiliates, except as provided in Section 2.1(d)) right and license, with the right to grant
sublicenses, under the AzaSite Patent Rights and the InSite Know-How: (i) to develop, have developed, make, have made, use, have used, market, have marketed, commercialize, have commercialized, offer for sale, sell, have sold, import and have
imported Subject Products in the Field in the Territory, and (ii) to develop, have developed, make, have made, use and have used Subject Products anywhere in the world for the purpose of marketing, commercialization or sale of Subject Products
in the Field in the Territory. 
 (b) Subject to the terms and conditions of this Agreement, InSite hereby grants to Inspire a
royalty-bearing, non-exclusive right and license, with the right to grant sublicenses, under the DuraSite Patent Rights, the Container Patent Rights, the Columbia Patent Rights and the InSite Formulation Know-How: (i) to develop, have
developed, make, have made, use, have used, market, have marketed, commercialize, have commercialized, offer for sale, sell, have sold, import and have imported Subject Products in the Field in the Territory, and (ii) to develop, have
developed, make, have made, use and have used Subject Products anywhere in the world for the purpose of marketing, commercialization or sale of Subject Products in the Field in the Territory. Notwithstanding the non-exclusive nature of the foregoing
grant (but subject to Section 2.1(d)), InSite hereby expressly covenants that it shall not, and shall cause its Affiliates and licensees not to, directly or indirectly: (x) practice the DuraSite Patent Rights, the Container Patent Rights
or the Columbia Patent Rights or use the InSite Formulation Know-How (1) to develop, have developed, make, have made, use, have used, market, 

  

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have marketed, commercialize, have commercialized, offer for sale, sell, have sold, import or have imported any Subject Products in the Field in the
Territory, or (2) to develop, have developed, make, have made, use or have used any Subject Products anywhere in the world for the purpose of marketing, commercialization or sale of any Subject Products in the Field in the Territory; or
(y) grant to any Third Party any right or license under the DuraSite Patent Rights, the Container Patent Rights, the Columbia Patent Rights or the InSite Formulation Know-How to conduct any of the activities set forth in the foregoing clause
(x). 
 (c) Subject to the terms and conditions of this Agreement, InSite hereby grants to Inspire a royalty-bearing, exclusive (even as to
InSite and its Affiliates, except as provided in Section 2.1(d)) right and sublicense, with the right to grant further sublicenses, under the Pfizer Patent Rights, in each case to the extent not greater than the rights and licenses granted to
InSite under the Pfizer Agreement: (i) to develop, have developed, make, have made, use, have used, market, have marketed, commercialize, have commercialized, offer for sale, sell, have sold, import and have imported Subject Products in the
Field in the Territory, and (ii) to develop, have developed, make, have made, use and have used Subject Products anywhere in the world for the purpose of marketing, commercialization or sale of Subject Products in the Field in the Territory.

 (d) For the avoidance of doubt, (i) the licenses and rights granted to Inspire under this Agreement shall not include a right to offer
for sale, sell or have sold Subject Products, and Inspire expressly covenants that it shall not sell any Subject Products, in the Territory in circumstances in which Inspire knows or reasonably should know such Subject Products will be distributed
or sold outside the Territory, (ii) InSite shall retain the rights under the InSite Intellectual Property and Pfizer Patent Rights to develop, have developed, make, have made, use and have used Subject Products in the Field in the Territory
solely for the purposes of distribution, sale or other commercial pursuit of Subject Products outside the Territory, (iii) InSite shall be permitted to carry out and perform its tasks and responsibilities under this Agreement, (iv) InSite
shall retain the exclusive rights to develop, have developed, make, have made, use, have used, market, have marketed, commercialize, have commercialized, offer for sale, sell, have sold, import and have imported Subject Products outside the Field
and/or outside the Territory, and (v) InSite retains all rights to pursue any of its Reserved Interests. 
 (e) With respect to each
Subject Product, on a country-by-country basis, upon the expiration of the Inspire Royalty Term applicable to such Subject Product in a specific country, the rights and licenses granted to Inspire under paragraphs (a), (b) and (c) above
shall become fully paid up, royalty-free, perpetual and irrevocable with regards to such Subject Product in such country. 
 (f) To the extent
required by and in conformance with any applicable laws, Inspire shall mark Inspire Licensed Products with the numbers of the applicable InSite Licensed Patents. 
 2.2 Sublicenses. All sublicenses granted hereunder must be in writing and must contain provisions that are not inconsistent with the terms and conditions of this Agreement. 
  

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 2.3 InSite Trademarks and Domain Names. 
 (a) The Parties are entering into a trademark license agreement contemporaneously with this Agreement under which InSite is granting to Inspire rights and
licenses to use the InSite Trademarks and the Domain Names in connection with the marketing, commercialization and sale of Subject Products in the Field in the Territory (the “Trademark License Agreement”). 
 (b) If Inspire and InSite enter into a definitive license agreement with respect to the Option Product pursuant to the terms of Section 2.10 (or
otherwise mutually agree to enter into such an agreement despite Inspire’s failure to exercise its option under Section 2.10 or the Parties’ failure to come to an agreement within the time period for negotiation set forth therein), or
if InSite makes any public announcement that it is no longer pursuing development of the Option Product, then: 
 (i) within ten
(10) days after the execution of such agreement or the making of such announcement, as applicable, InSite shall assign to Inspire all of InSite’s right, title, and interest in and to the AzaSite Trademark in the Territory, including
without limitation in the registration therefor, together with the good will of the business associated therewith and which is symbolized thereby, and shall execute the AzaSite Trademark Assignment Agreement attached hereto as Schedule 2.3(b)
to give effect to such assignment in the United States and a comparable agreement to give effect to such assignment in Canada. InSite agrees promptly to execute and deliver such further and other documents and to perform such actions as may be
necessary to give effect to the foregoing assignment. From and after the effective date of such assignment, the term “InSite Trademarks” shall not include the AzaSite Trademark for any purpose under this Agreement; and 
 (ii) effective upon the execution of such agreement or the making of such public announcement, as applicable, InSite hereby transfers and assigns to
Inspire all of InSite’s right, title and interest in and to the Domain Names. InSite acknowledges and agrees that Inspire is not assuming any liabilities, obligations or indebtedness of InSite related to the Domain Names accrued by InSite prior
to the effectiveness of such transfer, whether arising as a result of the transactions contemplated by this Agreement or otherwise related to InSite’s business in any manner, all of which will remain solely InSite’s responsibility. Inspire
shall be solely responsible for any liabilities related to the use of the Domain Names accrued by Inspire. InSite agrees promptly to execute and deliver such further and other documents and to perform such actions as may be necessary to give effect
to the foregoing assignment and transfer. 
 (c) In addition, if Inspire and InSite
enter into a definitive license agreement with respect to the Option Product pursuant to the terms of Section 2.10 (or otherwise mutually agree to enter into such an agreement despite Inspire’s failure to exercise its option under
Section 2.10 or the Parties’ failure to come to an agreement within the time period for negotiation set forth therein), then InSite shall assign to Inspire all of InSite’s right, title, and interest in and to the trademark AzaSite
PlusTM in the Territory, including 

  

 14 

 
without limitation in the registration therefor, together with the good will of the business associated therewith and which is symbolized thereby. In such
event, the Parties shall include the trademark AzaSite PlusTM as a trademark assigned under the AzaSite Trademark
Assignment Agreement (for the United States) and the comparable assignment agreement (for Canada) that are executed pursuant to paragraph (b) above in order to give effect to such assignment. 
 2.4 Use of Affiliates and Third Party Contractors. The licenses granted under Section 2.1 include the right of Inspire to engage its Affiliates and Third
Party contractors in exercising such rights and in carrying out its activities and obligations under this Agreement, provided that (i) all such agreements with Third Party contractors must be in writing and must contain provisions that are not
inconsistent with the terms and conditions of this Agreement and (ii) Inspire remains responsible for the compliance with this Agreement by such Affiliates or Third Party contractors. 
 2.5 Reserved Interests. Notwithstanding anything to the contrary herein, Inspire acknowledges and agrees that this Agreement shall not restrict or limit InSite or
its Affiliates, at any time, with respect to (i) any activity, licensing or otherwise, related to any product other than the Subject Products (other than the Option Product as provided under Section 2.10 or any Future Development as
provided in Section 3.8); or (ii) any activity, licensing or otherwise, related to the Option Product other than as expressly provided under Section 2.10 or related to any Future Development other than as expressly provided under
Section 3.8. Inspire also acknowledges and agrees that any such activities described in clauses (i) and (ii) above, as well as all rights and interests not expressly granted to Inspire are reserved by InSite (the “Reserved
Interests”). 
 2.6 No Implied Grants. Except as expressly licensed hereunder, neither Party grants any rights to the other Party under this
Agreement, by implication or estoppel, under any of its intellectual property rights. 
 2.7 Registration of License. Notwithstanding anything to the
contrary in Article 8, Inspire, at its expense, may register the licenses granted under this Agreement in any country of the Territory. Upon request by Inspire, InSite agrees promptly to execute any “short form” licenses consistent with
the terms and conditions of this Agreement submitted to it by Inspire reasonably necessary to effect the foregoing registration in such country. 
 2.8
Supply of API. The Parties are entering into a supply agreement contemporaneously with this Agreement under which InSite will supply bulk azithromycin [***] (as API), obtained from [***] under the [***] Agreement, to Inspire for
Inspire’s use in manufacturing and commercializing Subject Products in final form. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 15 

 2.9 Supply of Finished Product. Upon Inspire’s
election within ninety (90) days after Regulatory Approval of the Current Product in the United States, InSite promptly will modify the Cardinal Agreement so that the Cardinal Agreement would only be for the purpose of commercialization outside
the Territory and assist Inspire in executing a new agreement with Cardinal with identical terms to the current Cardinal Agreement, except with respect to commercialization inside the Territory, in order to transition to Inspire all rights with
respect to manufacture of Subject Products in finished form for commercialization inside the Territory. During the period commencing on the First Commercial Sale of any Subject Product in the United States and continuing until the first
(1st) anniversary of such date, Inspire shall, at no cost to Inspire, be permitted to use, or have used for
Inspire’s benefit, the equipment owned or controlled by InSite and used by Cardinal with respect to Subject Products in connection with the Cardinal Agreement. If, after the expiration of such one (1) year period, Inspire elects to
continue to use or have used such equipment, Inspire shall be permitted to do so at a reasonable market rate that the Parties shall negotiate in good faith. 
 2.10 Option for Option Product License. During the period commencing on the Effective Date and continuing until the date that is the later of (a) [***], and (b) [***] days after the date on which InSite provides to Inspire
data from the completed Option Product Phase I Clinical Trial [***] (the “Option Term”), Inspire will have the exclusive option, but not the obligation, to enter into a license agreement with InSite for the Option Product upon terms
and conditions to be separately discussed and negotiated by the Parties. At the request of Inspire, InSite promptly shall afford Inspire a reasonable opportunity to review the scientific and clinical information relevant to the Option Product that
are available to InSite (including during negotiations between the Parties as provided below). Inspire may exercise its option under this Section 2.10 by providing written notice (the “Option Notice”) to InSite on or before the
expiration of the Option Term. If Inspire timely provides the Option Notice, the Parties shall negotiate in good faith and exclusively, using their respective best efforts, for a period of up to [***] days from the date of the Option Notice to enter
into a definitive license agreement with respect to the Option Product prior to the expiration of such [***] day negotiating period; provided, however, that (x) if at the end of such [***] day negotiation period the Parties are actively
negotiating the terms of such agreement, then such negotiation period may be extended, if mutually agreed to so extend by the Parties at such time, to a mutually acceptable time by the Parties in writing, and (y) if at the end of such [***] day
negotiation period the FDA has not yet granted Regulatory Approval of the Current Product, then such negotiation period shall be extended until [***] days after the date on which the FDA grants such Regulatory Approval. If Inspire does not exercise
its option under this Section 2.10 on or before the expiration of the Option Term, or if the Parties cannot come to an agreement despite such efforts after such [***] day period (or any extension thereof in accordance with this provision), then
InSite shall be free to pursue any and all other opportunities with respect to the Option Product with no further obligations to Inspire. InSite represents, warrants and covenants that neither it nor its Affiliates have granted prior to the
Effective Date, nor will grant during the Term, to any Third Party any license, option, first refusal, or other right or interest in or to any Patent Rights, Know-How, trademarks or internet domain names related to the Option Product that is
inconsistent with this Agreement, including without limitation this Section 2.10. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 2.11 Inspire Blocking Patent Rights. If and when Inspire first files or Controls any Inspire Blocking Patent
Rights outside the Territory, Inspire shall notify InSite within a reasonable time after such filing. Upon InSite’s election in writing within [***] days of such notice, the Parties shall negotiate in good faith for a period of up to [***] days
from the date of such election to determine a commercially reasonable royalty rate to apply to InSite’s practice under any Inspire Blocking Patent Rights in the Field outside the Territory, together with such other terms as are reasonable and
customary to effectuate the license granted below, including without limitation reporting and payment obligations and audit rights (collectively, the “Additional Terms”). Effective upon the Parties’ agreement in writing to the
Additional Terms: (i) the Additional Terms shall be incorporated by reference into this Agreement as if set forth in full herein, and (ii) subject to the Additional Terms and the terms and conditions of this Agreement, Inspire hereby
grants to InSite a royalty-bearing, non-exclusive right and license, without any right to grant sublicenses, under the Inspire Blocking Patent Rights to make, have made, use, sell, offer to sell and import Subject Products in the Field outside the
Territory. Notwithstanding anything to the contrary in this Agreement, InSite acknowledges and agrees that this Section 2.11 shall not affect, restrict or limit: (i) any right of Inspire or its Affiliates or sublicensees under this
Agreement with respect to any Subject Products, including without limitation the rights and licenses granted to Inspire in Section 2.1, or (ii) any obligation of or restriction upon InSite or its Affiliates under this Agreement with
respect to Subject Products, including without limitation the exclusive nature of the grants in Section 2.1. 
 ARTICLE 3

 DEVELOPMENT AND COMMERCIALIZATION 
 3.1 Data and Materials Transfer and Right of Reference. 
 (a) In furtherance of the licenses granted by InSite to Inspire
under this Agreement and the activities contemplated by this Article 3, InSite shall, or shall cause its Affiliates or Third Party contractors to, transfer promptly (but in all events within thirty (30) days following the Effective Date) to
Inspire (i) an instance of any physical embodiments, to the extent necessary or useful and available, of the InSite Know-How and the InSite Formulation Know-How, and (ii) a copy of the entire Regulatory Dossier for any Subject Products for
the Territory in existence as of the Effective Date. Without limiting the foregoing, InSite shall provide to Inspire copies of all final audited study reports, prepared in accordance with applicable FDA guidelines, for all studies relating to the
Current Product, including without limitation those listed on Schedule 3.1(a). 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 (b) InSite shall make reasonably available to Inspire at no cost to Inspire during the period commencing
on the Effective Date and continuing until the expiration of the twelve (12) month period following Regulatory Approval of the Current Product by the FDA, for up to [***] man hours, InSite’s key employees (including but not limited to key
manufacturing and development personnel) for purposes of reasonable consulting with Inspire regarding the development, testing and manufacturing of the Current Product, and to enable Inspire to use the InSite Know-How and InSite Formulation Know-How
in connection with the Current Product. Any support beyond such will be subject to InSite’s agreement at reasonable market rates. 
 (c)
InSite, to the extent it has the right to do so, hereby grants to Inspire a “Right of Reference or Use” as that term is defined in 21 C.F.R. § 314.3(b), and any foreign equivalents, to any and all regulatory filings, data and
information relating to the Current Product, or to any other Subject Products developed, manufactured or commercialized by Inspire, in the Field in the Territory, including without limitation that related to pharmacology, toxicology, preclinical
testing, clinical testing, chemistry, manufacturing and controls data, batch records, trials and studies, safety and efficacy, manufacturing information, analytical and quality control, including without limitation the data and information listed on
Schedule 3.1(c), and agrees to sign, and cause its Affiliates to sign, any instruments reasonably requested by Inspire in order to effect such grant. In addition, InSite will use commercially reasonable efforts to obtain, on Inspire’s
behalf, a writing from applicable Drug Master File holders for the Current Product granting Inspire the right to reference such Drug Master Files. In the event that InSite is not able to obtain any such writing, InSite promptly shall establish
alternative arrangements reasonably acceptable to Inspire whereby Inspire’s access to supply of the Current Product in commercially reasonable amounts for launch and marketing thereof is not impaired by the lack of such writing. In addition,
upon Inspire’s request, InSite shall provide reasonable assistance to Inspire in any efforts by Inspire to obtain a writing from applicable Drug Master File holders for any other Subjects Products developed, manufactured or commercialized by
Inspire granting Inspire the right to reference such Drug Master Files. 
 3.2 Current Product Development. InSite will be responsible for, and will
bear all costs and expenses associated with, obtaining Regulatory Approval for the Current Product in each country in the Territory. InSite will not be responsible for any other development or Regulatory Approval for any other product or indication
except as otherwise agreed to under the terms of Section 3.8. Subject to and without limiting the foregoing, InSite shall, using its Commercially Reasonable Efforts: 
 (a) Progress NDA number 50-810 for the Current Product to Regulatory Approval of the Current Product by the FDA, including without limitation conducting all clinical trials required for the Current Product, as deemed
necessary by the FDA in order to grant Regulatory Approval of the Current Product; 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 (b) Address any material concerns (i.e., without resolution of which, Regulatory Approval of the Current
Product cannot be obtained) raised by the FDA with regard to the Current Product, whether in an action letter indicating that the NDA for the Current Product is approvable or otherwise; 
 (c) Prepare and file an application for Regulatory Approval in Canada for the Current Product and progress such application to Regulatory Approval of the
Current Product by the applicable Regulatory Authority in Canada, including without limitation conducting all clinical trials required for the Current Product, as deemed necessary by such Regulatory Authority in order to grant Regulatory Approval of
the Current Product in Canada; 
 (d) Address any material concerns (i.e., without resolution of which, Regulatory Approval of the Current
Product cannot be obtained) raised by the applicable Regulatory Authority in Canada with regard to the Current Product; 
 (e) Prior to
Regulatory Approval of the Current Product in each country in the Territory, keep Inspire fully and promptly informed of: (i) the preparation of all documents submitted to Regulatory Authorities and the filing of all submissions relating to
Regulatory Approval of any Subject Product in the Territory; and (ii) all regulatory actions, communications and meetings with any Regulatory Authority with respect to any Subject Product in the Territory; including in each case, without
limitation, with respect to labeling matters. InSite shall collaborate in good faith with Inspire in connection with all of the foregoing, and Inspire shall be permitted to attend any meeting described in clause (ii) of the preceding sentence
upon Inspire’s request; and 
 (f) Facilitate discussions between InSite’s Third Party Manufacturers and Inspire in order to assist
Inspire in obtaining its requirements of pre-clinical, clinical and commercial supplies of the Current Product. 
 3.3 Regulatory Matters; InSite
Assistance. 
 (a) Within twenty-five (25) days after Regulatory Approval of the Current Product in any country of the Territory,
InSite shall: 
 (i) submit to the FDA or equivalent foreign Regulatory Authority to transfer to Inspire ownership of, and Inspire shall own
in Inspire’s name, the entire Regulatory Dossier for the Current Product (and, to the extent in existence at the time of such transfer, any other Subject Products) in such country, including without limitation NDA number 50-810 and IND number
62,873 or any foreign equivalents thereto (as applicable) in the Territory, all at no additional charge to Inspire. InSite shall execute and deliver to the applicable Regulatory Authority such documents as are required to notify such Regulatory
Authority of the transfer of such NDA and IND, or foreign equivalents thereto, to Inspire. In addition, 

  

 19 

 
InSite promptly shall execute any and all other instruments, forms of assignment or other documents and take such further actions as Inspire may reasonably
request in order to give effect to or evidence the foregoing assignments. The date on which all such assignments have been given effect in both the United States and Canada shall be deemed the “Transfer Date” under this Agreement;
and 
 (ii) use commercially reasonable efforts to obtain, on Inspire’s behalf, a writing from [***] granting Inspire the right to
reference the Drug Master File held by [***] for the Current Product. In the event that InSite is not able to obtain such writing, InSite promptly shall establish alternative arrangements reasonably acceptable to Inspire whereby Inspire’s
access to supply of the Current Product in commercially reasonable amounts for launch and marketing thereof is not impaired by the lack of such writing. 
 (b) InSite shall retain the right to use any and all information in the Regulatory Dossier assigned to Inspire as described above, and the right of reference to all such regulatory documents, solely for purposes
relating to InSite’s exercise of rights retained by it under Section 2.1(d) or otherwise not granted to Inspire under this Agreement. 
 (c) From and after the transfer of the Regulatory Dossier in any country in the Territory as provided above in paragraph (a) above: 
 (i) Inspire shall have exclusive control over, and authority and responsibility for, the regulatory strategies relating to the further development and commercialization of Subject Products in such country in the Field, including, without
limitation: (A) the preparation of all documents submitted to Regulatory Authorities and the filing of all submissions relating to Regulatory Approval of Subject Products in such country; and (B) all regulatory actions, communications and
meetings with any Regulatory Authority with respect to Subject Products in such country. Upon the request of Inspire, InSite shall provide to Inspire on a timely basis such information in its possession relating to Subject Products as may be
required for the foregoing regulatory activities, and otherwise provide reasonable assistance to Inspire, at Inspire’s expense, in complying with all regulatory obligations in such country relating to Subject Products, including without
limitation, safety updates, amendments, annual reports, pharmacovigilance filings, investigator notifications, manufacturing facility inspections and certifications and product approvals. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 
  

 20 

 (ii) Inspire shall be responsible for interfacing, corresponding and meeting with all Regulatory
Authorities in such country with respect to Subject Products in the Field. Except as required by applicable law or as permitted under paragraph (b) above, InSite shall not communicate directly with any Regulatory Authority in such country
relating to Subject Products in the Field without the prior written consent of Inspire. In furtherance thereof, InSite shall refer all Regulatory Authority communications relating to Subject Products in the Field in such country to Inspire.

 (iii) InSite shall cooperate with Inspire, at Inspire’s expense, to provide all reasonable assistance and take all actions reasonably
requested by Inspire that are necessary to comply with any law applicable to Subject Products, including, but not limited to, reporting of adverse drug experience reports (and Serious Adverse Drug Experiences) to Regulatory Authorities in such
country. 
 (iv) Inspire shall make available to InSite on a reasonable basis any documents in the Regulatory Dossier, and amendments thereto,
for the Subject Products in such country that InSite is required by applicable law to reference in connection with seeking Regulatory Approval of Subject Products outside the Territory, provided that InSite requests such access in writing and
identifies such applicable law in such request. In addition, Inspire shall consider in good faith any other reasonable request by InSite for access to information in the Regulatory Dossier for the Subject Products in such country. 
 3.4 Commercialization. 
 (a) Except as otherwise set
forth in this Agreement, Inspire shall be solely responsible for commercialization of Inspire Licensed Products in the Field in the Territory, including without limitation with respect to: 
 (i) sales and marketing; 
 (ii) advertising,
marketing and promotional materials; 
 (iii) sales representatives and sales force matters; 
 (iv) distribution; 
 (v) regulatory compliance
and communications and regulatory fees (e.g., adverse event reporting programs, establishment and product fees under the Prescription Drug User Fee Act), in each case to the extent such responsibilities or fees arise following Regulatory Approval of
the Current Product and transfer of the Regulatory Dossier for the Current Product in the applicable country of the Territory as provided above in Section 3.3(a); and 
 (vi) product inquiries and complaints. 
  

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 (b) Inspire shall use Commercially Reasonable Efforts to commercialize an Inspire Licensed Product in the
Field in the Territory, promptly after (i) Regulatory Approval for such Inspire Licensed Product in the Territory has been obtained, (ii) such other approvals (including without limitation reimbursement approvals) as are necessary for the
marketing of such Inspire Licensed Product in the Territory have been obtained, and (iii) the transitions as provided under Sections 2.9 (provided Inspire has made the election set forth therein) and 3.3(a) (as applicable) have been given
effect (collectively, “Launch Approval”). 
 (c) Without limiting the foregoing, Inspire agrees that it shall effect a First
Commercial Sale of the Current Product in the United States no later than [***] calendar days after Launch Approval for the Current Product is obtained in the United States; provided, however, that such obligation shall be suspended during any
period in which [***]. 
 (d) Inspire shall not include in promotional kits any Subject Products intended for sale without InSite’s
consent, such consent not to be unreasonably withheld; provided, however, that the foregoing limitation shall not affect or restrict any sampling practices of Inspire. 
 3.5 Reports. Every twelve (12) months following the Effective Date, Inspire shall provide InSite a written report summarizing the efforts and accomplishments of Inspire, its Affiliates and its sublicensees
during the preceding twelve (12) month period in commercializing Inspire Licensed Products. 
 3.6 Adverse Event Reporting. 
 (a) Each Party shall, and shall require its respective Affiliates to: 
 (i) to the extent permissible under time constraints and reporting requirements, provide to the other Party in advance of initial or periodic submission to Regulatory Authorities any and all adverse event reports and
Serious Adverse Drug Experience reports from clinical trials and commercial experiences with respect to Subject Products or any Inspire Licensed Products; 
 (ii) provide such adverse event reports and Serious Adverse Drug Experience reports to the other Party contemporaneously with the provision of such reports to the applicable Regulatory Authority; and 
 (iii) adhere to all requirements of applicable laws, rules and regulations that relate to the reporting and investigation of adverse events and Serious
Adverse Drug Experiences and keep the other Party informed of such events. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 (b) If a Party contracts with a Third Party for research to be performed by such Third Party on any
Subject Products or any of the Inspire Licensed Products, that Party shall require such Third Party to report to the contracting Party the information set forth above. 
  

	3.7	Coordination Committee. 

 (a) Within thirty
(30) days after the Effective Date, the Parties will establish a committee to (i) discuss further development efforts related to Subject Products in the Field in the Territory following Regulatory Approval of the Current Product in each
country in the Territory, (ii) manage and facilitate in an orderly manner the transition as provided above in Section 2.9 and the transition of the Regulatory Dossier in each country of the Territory as provided above in
Section 3.3(a), (iii) manage and facilitate InSite’s access to the Regulatory Dossier in the United States, after the assignment thereof pursuant to Section 3.3(a), as reasonably necessary to facilitate InSite’s obtaining
Regulatory Approval for the Current Product in Canada, and (iv) manage and facilitate (A) in connection with the launch of Subject Products by Inspire, Inspire’s access to Subject Products manufactured by Cardinal and
(B) Inspire’s access to bottle molds and trade dress used by InSite in connection with Subject Products (the “Coordination Committee”). The Coordination Committee will be comprised of equal numbers of representatives of
each Party, with each Party appointing two (2) representatives as members of the Coordination Committee. The Coordination Committee may change its size from time to time by mutual consent of its members. Each Party may replace its Coordination
Committee representatives at any time upon written notice to the other Party. 
 (b) The Coordination Committee will meet in person (or by
having certain representatives of the Parties participate by telephone where necessary) no less frequently than once every six (6) months, unless otherwise agreed by the Parties. The members of the Coordination Committee may also convene or be
consulted from time to time by means of telecommunications, videoconferences, electronic mail or correspondence, as deemed necessary or appropriate. Meetings of the Coordination Committee that are held in person will alternate between the offices of
the Parties, or such other place as the Parties may agree. The first meeting of the Coordination Committee will take place at the offices of one of the Parties within ninety (90) days after the Effective Date. 
 (c) The Coordination Committee will strive to reach consensus on any determinations with respect to further development efforts related to Subject
Products in the Field in the Territory following Regulatory Approval of the Current Product in each country in the Territory; provided, however, that Inspire shall have final decision-making authority with respect to the development of Subject
Products in the Field in the Territory. 
 (d) The Coordination Committee will have only such purposes as are specifically stated in this
Agreement, and will have no power to amend or interpret this Agreement or waive a Party’s rights or obligations under this Agreement. 
  

 23 

	3.8	Future Development. 

 (a) Subsequent to the Transfer
Date, Inspire has exclusive control with respect to any further development of any Subject Product, including without limitation any New Indication, in the Field in the Territory (each such improvement an “Inspire Improvement”).
Inspire may, at its discretion, pursue any such Inspire Improvement independently or through the Coordination Committee. Any such Inspire Improvement will be deemed a Subject Product under this Agreement and, if and to the extent such Inspire
Improvement also constitutes an Inspire Licensed Product, such Inspire Improvement will be subject to Inspire Royalties payable under Article 5. No additional milestone payments will be due for any such Inspire Improvement under any circumstances.
If Inspire, at its discretion, requests InSite’s assistance in developing any Inspire Improvement and InSite, at its discretion, agrees to provide such assistance, Inspire shall reimburse InSite for any such development efforts in the manner
agreed by the Parties. 
 (b) InSite promptly shall provide Inspire written notice of any Future Development together with the data from a
completed phase I clinical trial (to determine the safety of such Future Development in humans as more fully described in 21 C.F.R. §312.21(a)) in a form suitable for submission to the FDA or equivalent Regulatory Authority (“Future
Development Option Notice”). During the period of [***] days following the date of the Future Development Option Notice (“Future Development Option Term”), Inspire will have the exclusive option, but not the obligation, to
enter into a license agreement with InSite for the Future Development described in the Future Development Option Notice for commercialization within the Territory upon terms and conditions to be separately discussed and negotiated by the Parties. At
the request of Inspire, InSite shall promptly afford Inspire a reasonable opportunity to review the scientific and clinical information relevant to such Future Development that are available to InSite (including during negotiations between the
Parties as provided below). Inspire may exercise its option under this Section 3.8 by providing written notice (the “Future Development Option Exercise Notice”) to InSite on or before the expiration of the Future Development
Option Term. If Inspire timely provides the Future Development Option Exercise Notice, the Parties shall negotiate in good faith and exclusively, using their respective best efforts, for a period of up to [***] days from the date of the Future
Development Option Exercise Notice to enter into a definitive license agreement with respect to the applicable Future Development prior to the expiration of such [***] day negotiating period; provided, however, that if at the end of such [***] day
negotiation period the Parties are actively negotiating the terms of such agreement, then such negotiation period may be extended, if mutually agreed to so extend by the Parties at such time, to a mutually acceptable time by the Parties in writing.
If Inspire does not exercise its option under this Section 3.8 on or before the expiration of the applicable Future Development Option Term, or if the Parties cannot come to an agreement despite such efforts after such [***] day period (or

  
 *Indicates that certain information contained herein has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 24 

 
such extension as mutually agreed by the Parties in accordance with this provision), then InSite shall have no further obligation to negotiate with Inspire
with respect to such Future Development. InSite represents, warrants and covenants that neither it nor its Affiliates have granted prior to the Effective Date, nor will grant during the Term, to any Third Party any license, option, first refusal, or
other right or interest in or to any Patent Rights, Know-How, trademarks or internet domain names related to any Future Development that is inconsistent with this Agreement, including without limitation this Section 3.8. Notwithstanding
anything to the contrary in this Agreement, InSite acknowledges and agrees that this Section 3.8 shall not affect, restrict or limit: (i) any right of Inspire or its Affiliates or sublicensees under this Agreement with respect to any
Subject Products or InSite Developments, including without limitation the rights and licenses granted to Inspire in Section 2.1, or (ii) any obligation of or restriction upon InSite or its Affiliates under this Agreement with respect to
Subject Products or InSite Developments, including without limitation the exclusive nature of the grants in Section 2.1. 
 ARTICLE 4

 INITIAL PAYMENT AND MILESTONE PAYMENT 
 4.1 Initial Payment. On the Effective Date, Inspire shall pay InSite Thirteen Million U.S. Dollars ($13,000,000) (the “Initial Payment”) as follows: 
 (a) Seven Million Three Hundred Fifty-Two Thousand Six Hundred Sixty-Five Dollars and Sixty-Two Cents ($7,352,665.62) to The Bank of New York, N.A. to
redeem the Senior Secured Notes (the “Redemption Amount”) on behalf of InSite and in the manner set forth in Section 4.3; and 
 (b) Five Million Six Hundred Forty-Seven Thousand Three Hundred Thirty-Four Dollars and Thirty-Eight Cents ($5,647,334.38) to InSite in the manner set forth in Section 4.3 (the “InSite License Fee”). 
 The Parties acknowledge and agree that this Agreement shall become effective on the Effective Date immediately upon receipt of the Redemption Amount by The Bank of New
York, N.A. as specified in the foregoing clause (a). InSite agrees that Inspire’s payment of the foregoing amounts in the manner specified shall constitute full and complete satisfaction of Inspire’s payment obligations under this
Section 4.1. 
 4.2 Milestone Payment upon Regulatory Approval. Within fifteen (15) calendar days following receipt by InSite of Regulatory
Approval in the United States of any Subject Product with an Acceptable Label, Inspire shall pay InSite Nineteen Million U.S. Dollars ($19,000,000) (the “Milestone Payment”) in the manner set forth in Section 4.3. For purposes
of clarification, the Milestone Payment shall be made only once and upon the first occurrence of the indicated event, regardless of the number of Subject Products or occurrences of Regulatory Approval for Subject Products. 
 4.3 Payment. The Initial Payment and the Milestone Payment shall each be non-refundable and shall be made by Inspire in U.S. Dollars by wire transfer in
immediately available funds. 

  

 25 

 
Inspire shall transfer the Redemption Amount to the Bank of New York, N.A., as Collateral Agent for the holders of the Senior Secured Notes, by wire transfer
to the credit of such bank account as is designated in Schedule 4.3. The InSite License Fee and the Milestone Payment shall be paid to InSite by wire transfer to the credit of such bank account of InSite as is designated in Schedule
5.5. 
 ARTICLE 5 
 ROYALTIES 
 5.1 Royalty Rates. Inspire shall pay to InSite the following non-refundable royalties in accordance with this Article 5
(“Inspire Royalties”) based on the cumulative volume of Net Sales of Inspire Licensed Products in the Territory: 
 (a) For
Net Sales of Inspire Licensed Products occurring during the period commencing on the Effective Date and continuing until the second (2nd) anniversary of the First Commercial Sale of an Inspire Licensed Product in the United States (such period,
the “Initial Royalty Period”), twenty percent (20%) of such Net Sales; and 
 (b) For Net Sales of Inspire Licensed
Products occurring after the expiration of the Initial Royalty Period, twenty-five percent (25%) of such Net Sales. 
 The obligation to pay Inspire
Royalties under this Article 5 shall be imposed only once (i) with respect to any sale of the same unit of any Inspire Licensed Product, and (ii) with respect to a single unit of any Inspire Licensed Product. 
 5.2 Royalty Term. The Inspire Royalties set forth in Section 5.1 shall be payable as to each particular Inspire Licensed Product sold in a particular
country, on an Inspire Licensed Product-by-Inspire Licensed Product basis and a country-by-country basis, for the longer of: (a) eleven (11) years following the First Commercial Sale by Inspire, any of its Affiliates or any of its
sublicensees of such Inspire Licensed Product in a particular country of sale, or (b) for so long as there exists in the particular country of sale a Valid Claim within the InSite Licensed Patents covering such Inspire Licensed Product (such
period, the “Inspire Royalty Term” as to the particular Inspire Licensed Product sold in the particular country); provided, however, that the applicable royalty rate under Section 5.1 shall be reduced by [***] in any country
for any period during which the manufacture, sale or importation of such Inspire Licensed Product in such country is not covered by any Valid Claim within the InSite Licensed Patents. For the avoidance of doubt, Inspire shall have no obligation to
pay any Inspire Royalties for a particular Inspire Licensed Product in a particular country under Section 5.1 above upon the expiration of the Inspire Royalty Term applicable to such Inspire Licensed Product in such country. 
  

	5.3	Minimum Royalty. 

 (a) For each of five
(5) one-year Minimum Royalty Periods, which Minimum Royalty Periods shall commence on the Minimum Royalty Date and run consecutively for five (5) years 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 
  

 26 

 thereafter, Inspire shall pay to InSite the annual minimum royalty payment for the applicable year as
specified in Schedule 5.3(a) (each a “Minimum Royalty”), subject to any applicable reductions or offsets permitted under this Agreement. On the date that is forty-five (45) days after the end of a particular Minimum
Royalty Period, Inspire shall determine the total amounts of Inspire Royalties accrued and payable for such Minimum Royalty Period under Section 5.1. If such total amount of Inspire Royalties accrued is less than the Minimum Royalty amount owed
for such Minimum Royalty Period as set forth in Schedule 5.3(a), then, in addition to the payment of Inspire Royalties that Inspire made for the calendar quarter that just ended at the end of such Minimum Royalty Period, Inspire shall also
pay InSite an amount equal to the difference between the Minimum Royalty amount owed and such total amount of Inspire Royalties accrued for such Minimum Royalty Period. 
 (b) Promptly after completion of a particular calendar year in which a Minimum Royalty Period ended, Inspire may conduct and complete an internal financial audit with respect to the total amounts of Inspire Royalties
accrued and payable under Section 5.1 for such Minimum Royalty Period. If such audit (combined with the applicable portions of an audit performed for the prior calendar year) shows that the total amount of Inspire Royalties actually owed and
paid to InSite, under Section 5.1, for such Minimum Royalty Period is different from the amount used in Section 5.3(a) above in calculating the amount (if any) that must be paid to InSite to meet the Minimum Royalty amount owed for such
Minimum Royalty Period, then Inspire may provide to InSite written notice of such difference, and the consequential difference (if any) in the amount of the payment (if any) that Inspire should have made under Section 5.3(a) above for such
Minimum Royalty Period in order to meet the Minimum Royalty amount owed for such Minimum Royalty Period (such difference, the “Reconciliation Amount”). If such audit demonstrates that there is a Reconciliation Amount that must be
paid by one Party to the other, in order to make the payment made under Section 5.3(a) for the applicable Minimum Royalty Period accurate, then the applicable Party shall pay to the other Party such Reconciliation Amount shown to be owing by
the audit, within thirty (30) days of Inspire providing such written notice to InSite. 
 (c) Notwithstanding anything to the contrary in
this Agreement: 
 (i) Inspire’s obligation to pay Minimum Royalties under this Section 5.3 shall be suspended during any period in
which (A) [***], or (B) Inspire is unable, despite use of Commercially Reasonable Efforts, [***]; 
 (ii) Inspire shall have no
further obligation to pay Minimum Royalties under this Section 5.3 as of the date on which: 
 (A) there no longer exists any [***];

  
 *Indicates that certain information contained herein has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 27 

 (B) sales of a Generic Equivalent, as to any Inspire Licensed Product, during any calendar quarter, are
equal to or greater than either [***], expressed in local currency; or 
 (C) InSite has not cured a material failure to perform any of its
obligations under this Agreement within [***] days of receiving notice thereof from Inspire; 
 (iii) If Inspire’s obligation to pay
Minimum Royalties under this Section 5.3 is suspended pursuant to subsection (i) above during any particular Minimum Royalty Period(s), then the Minimum Royalty amount owed for such Minimum Royalty Period(s) shall be based on a pro-rated
amount (using a straight-line pro ration based on the number of days in such Minimum Royalty Period(s) during which Inspire’s obligation to pay Minimum Royalties were not suspended) of the required Minimum Royalties owed for such Minimum
Royalty Period(s) under Schedule 5.3(a); and 
 (iv) If Inspire’s obligation to pay Minimum Royalties under this Section 5.3
expires pursuant to subsection (ii) above, or if this Agreement expires or is terminated, during any particular Minimum Royalty Period, then the Minimum Royalty amount owed for such Minimum Royalty Period shall be based on a pro-rated amount
(using a straight-line pro ration based on the number of days in such Minimum Royalty Period through the date of such expiration or applicable notice of termination) of the required Minimum Royalties owed for such Minimum Royalty Period under
Schedule 5.3(a). 
 (d) During any suspension and after any expiration of Inspire’s obligation to pay Minimum Royalties under this
Section 5.3, other than as a result of expiration or termination of this Agreement, Inspire shall continue to be obligated to use Commercially Reasonable Efforts to commercialize Inspire Licensed Products in the Field in the Territory pursuant
to Section 3.4. 
 5.4 Reports and Payments. Inspire shall deliver to InSite, within twenty-five (25) days after the end of each calendar
quarter, a report setting forth for such calendar quarter the following information for each Inspire Licensed Product: (i) Net Sales of such Inspire Licensed Product by Inspire, any of its Affiliates or any of its sublicensees on a
country-by-country basis; (ii) the Inspire Royalties due to InSite in respect of such Net Sales; and (iii) the exchange rates used in calculating any of the foregoing. The total Inspire Royalties due in respect of Net Sales of Inspire
Licensed Products during such calendar quarter shall be remitted at the time such report is made. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 28 

 5.5 Taxes and Withholding. Any payments made by Inspire to InSite under this Agreement may be reduced by the
amount required to be paid or withheld pursuant to any applicable law, including, but not limited to, United States federal, state or local tax law (“Withholding Taxes”). Any such Withholding Taxes required by law to be paid or
withheld shall be an expense of, and borne solely by, InSite. Inspire shall pay all applicable Withholding Taxes from payments payable hereunder to the appropriate government authority on behalf of InSite, as required by applicable law. Inspire
shall submit to InSite reasonable proof of payment of the Withholding Taxes, together with an accounting of the calculations of such taxes, within thirty (30) days after such Withholding Taxes are remitted to the proper authority. The Parties
will cooperate reasonably in completing and filing documents required under the provisions of any applicable tax laws or under any other applicable law in connection with the making of any required tax payment or withholding payment, or in
connection with any claim to a refund of or credit for any such payment. 
 5.6 Currency Exchange; Manner and Place of Payment. All payments hereunder
shall be payable in U.S. Dollars. Inspire Royalties shall be calculated based on Net Sales in each country’s currency in which Net Sales have occurred, and shall be converted (as applicable) to U.S. Dollars as follows. With respect to each
calendar quarter, whenever conversion of payments from any foreign currency shall be required, such conversion shall be made using the same exchange rate Inspire uses to record such sales. All payments shall be made by wire transfer to the credit of
such bank account of InSite as is designated in Schedule 5.5 or as may otherwise be designated at least ten (10) Business Days in advance by InSite in writing to Inspire. 
 5.7 Maintenance of Records; Audit. For a period of two (2) years from the end of the calendar quarter in which the particular sale occurred, Inspire shall maintain, and shall require its Affiliates and
sublicensees to maintain, complete and accurate books and records in connection with the sale of Inspire Licensed Products hereunder, as necessary to allow the accurate calculation consistent with GAAP of the Inspire Royalties due to InSite,
including any records required to calculate any royalty adjustments hereunder. Once per calendar year, InSite shall have the right to engage an independent accounting firm reasonably acceptable to Inspire, which shall have the right to examine in
confidence the relevant records of Inspire as may be reasonably necessary to determine or verify the amount of royalty payments due hereunder. Such examination shall be conducted, and Inspire shall make its records available, during normal business
hours, after at least fifteen (15) Business Days prior written notice to Inspire, and shall take place at the facility(ies) where such records are maintained. Each such examination shall be limited to pertinent books and records for any year
ending not more than twenty-four (24) months prior to the date of request; provided, however, that InSite shall not be permitted to audit the same period of time more than once. Before permitting such independent accounting firm to have access
to such books and records, Inspire may require such independent accounting firm and its personnel involved in such audit to sign a confidentiality agreement (in form and substance reasonably acceptable to Inspire) as to any confidential information
which is to be provided to such accounting firm, or to which such accounting firm will have access, while conducting the audit under this paragraph. The independent accounting firm will prepare and provide to each Party a written report stating
whether the royalty reports submitted and royalties paid are correct or incorrect and the details concerning any discrepancies. Such accounting firm may not reveal to InSite any information learned in the course of such audit other than the 

  

 29 

 
amount of any such discrepancies. InSite agrees to hold in strict confidence all information disclosed to it, except to the extent necessary for InSite to
enforce its rights under this Agreement or to the extent disclosure is required by law. In the event there was an underpayment by Inspire of amounts owed under this Agreement, Inspire shall promptly (but in no event later than thirty (30) days
after Inspire’s receipt of the independent auditor’s report so correctly concluding) make payment to InSite of any shortfall. In the event that there was an overpayment by Inspire hereunder, InSite shall promptly (but in no event later
than thirty (30) days after InSite’s receipt of the independent auditor’s report so correctly concluding) refund to Inspire or credit to future royalties, at Inspire’s election, the excess amount. InSite shall bear the full cost
of such audit unless such audit discloses an underreporting by Inspire of more than ten percent (10%) of the aggregate amount of royalties in any twelve (12) month period, in which case, Inspire shall bear the full cost of such audit. Upon
the expiration of twenty four (24) months following the end of any Inspire fiscal year, the calculation of royalties payable with respect to such year will be binding and conclusive upon InSite except with respect to any audit then underway,
and except for fraud or misrepresentation, Inspire and its Affiliates will be released from any liability or accountability with respect to royalties for such fiscal year. In addition, Inspire shall maintain and permit Pfizer to audit books and
records in connection with sales of Inspire Licensed Products in the same manner and to the same extent that InSite is required to maintain and permit audits of InSite’s books and records with respect to such sales under Section 4(c) of
the Pfizer Agreement. 
 5.8 Reductions. 
 (a) [***] Third Party Patent Rights, Know-How or other technology rights in any country in the Territory are necessary for the development of, having developed, making of, having made, using of, having used, marketing of, having marketed,
commercializing of, having commercialized, offering for sale of, sale of, having sold, importing of or having imported a particular Inspire Licensed Product in the Field and if Inspire then enters into a written license agreement with any such Third
Party, Inspire may: 
 (i) reduce the Inspire Royalties and Minimum Royalties payable with respect to such Inspire Licensed Product in such
country pursuant to this Article 5 by [***] of the sum of the royalties paid to all Third Parties by Inspire pursuant to all such Third Party licenses combined; provided, however, that in no event shall the Inspire Royalties or Minimum Royalties
payable by Inspire to InSite hereunder be reduced by more than [***] as a result of application of this Section 5.8(a)(i); and 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions. 
  

 30 

 (ii) offset [***] of any license issue fees (including but not limited to any initial or upfront fees)
and milestone payments paid to all Third Parties by Inspire pursuant to all such Third Party licenses against any Inspire Royalties or Minimum Royalties due under this Agreement. Offsets for such payments to Third Parties may be applied in any
single calendar quarter or several calendar quarters until the application of such payments in their entirety; provided, however, that in no event shall the aggregate of offsets under this Section 5.8(a)(ii) exceed in any particular calendar
quarter [***] of the sum of any Inspire Royalties or Minimum Royalties due hereunder in such quarter. 
 (b) [***] to obtain rights in any
country in the Territory from any Third Party, other than the situation described in paragraph (a) above, for Patent Rights, Know-How or other technology to develop, have developed, make, have made, use, have used, market, have marketed,
commercialize, have commercialized, offer for sale, sell, have sold, import or have imported a particular Inspire Licensed Product in the Field, then Inspire may notify InSite of its intent to enter into, and may enter into, a license with any such
Third Party at its discretion. Within thirty (30) days of receipt of such notice, InSite shall notify Inspire of its concurrence or lack of concurrence to such Third Party license (which concurrence shall not be unreasonably withheld,
conditioned or delayed). If InSite so notifies Inspire of its lack of concurrence, the following royalty reductions shall not apply. Any lack of notice shall not be deemed as concurrence. If InSite has notified Inspire of its concurrence to such
Third Party license, and if Inspire then enters into a written license agreement with such Third Party, Inspire may: 
 (i) reduce the Inspire
Royalties and Minimum Royalties payable with respect to such Inspire Licensed Product in such country pursuant to this Article 5 by [***] of the sum of the royalties paid to all Third Parties by Inspire pursuant to all such Third Party licenses
combined; provided, however, that in no event shall the Inspire Royalties or Minimum Royalties payable by Inspire to InSite hereunder be reduced by more than [***] as a result of application of this Section 5.8(b)(i); and 
 (ii) offset [***] of any license issue fees (including but not limited to any initial or upfront fees) and milestone payments paid to all Third Parties by
Inspire pursuant to all such Third Party licenses against any Inspire Royalties or Minimum Royalties due under this Agreement. Offsets for such payments to Third Parties may be applied in any single calendar quarter or several calendar quarters
until the application of such payments in their entirety; provided, however, that in no event shall the aggregate of offsets under this Section 5.8(b)(ii) exceed in any particular calendar [***] of the sum of any Inspire Royalties or
Minimum Royalties due hereunder in such quarter. 
  
 *Indicates that certain
information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 31 

 (c) The Inspire Royalties payable by Inspire with respect to any Inspire Licensed Product in any country
in the Territory pursuant to this Article 5 shall be reduced by the following percentages effective during and after the calendar quarter when Generic Competition occurs at the following sales levels with respect to such Inspire Licensed Product in
such country. Where the sales of a Generic Equivalent, as to such Inspire Licensed Product, during a calendar quarter are equal to or greater than either [***] of total sales of such Inspire Licensed Product sold in such country, expressed in
units, or (v) [***] of the total sales of such Inspire Licensed Product sold in such country, expressed in local currency, the Inspire Royalties with respect to such Inspire Licensed Product shall be reduced, subject to Section 5.8(d), by
[***] of the amounts otherwise owed in such country. Where the sales of a Generic Equivalent, as to such Inspire Licensed Product, during a calendar quarter are equal to or greater than either (w) [***] of total sales of such Inspire Licensed
Product sold in such country, expressed in units, or (x) [***] of the total sales of such Inspire Licensed Product sold in such country, expressed in local currency, the Inspire Royalties with respect to such Inspire Licensed Product shall be
reduced, subject to Section 5.8(d), by [***] of the amounts otherwise owed in such country. Where the sales of a Generic Equivalent, as to such Inspire Licensed Product, during a calendar quarter are equal to or greater than either
(y) [***] of total sales of such Inspire Licensed Product sold in such country, expressed in units, or (z) [***] of the total sales of such Inspire Licensed Product sold in such country, expressed in local currency, the Inspire
Royalties with respect to such Inspire Licensed Product shall be reduced to an amount that is equal to [***] of applicable Net Sales of such Inspire Licensed Product. If such Generic Competition ceases to exist at such sales levels, then, beginning
with the first calendar quarter after such Generic Competition does not exist at such sales levels, the reduction of Inspire Royalties with respect to such Inspire Licensed Product in this Section 5.8(c) shall be reduced to the reduction
applicable to such lower sales levels, if any, in such country until such time as Generic Competition may again exist at such sales levels with respect to such Inspire Licensed Product in such country. 
 (d) Notwithstanding the provisions of Sections [***] permitting Inspire to reduce Inspire Royalties under certain circumstances, in no event shall Inspire
Royalties payable by Inspire to InSite pursuant to this Article 5 with respect to a particular Inspire Licensed Product in a particular country of the Territory in any single calendar quarter be reduced, as a result of the application of such
provisions, to an amount that is below [***] of applicable Net Sales of such Inspire Licensed Product in such country in such quarter. Subject to the foregoing, Inspire shall be permitted to apply any reduction or offset to which it is entitled
under Section 5.8(a) or Section 5.8(b) in any single calendar quarter or several calendar quarters until the application of such amounts in their entirety. For the avoidance of doubt, this Section 5.8(d) shall not limit the
application of any other reduction or offset to which Inspire is or may be entitled under this Agreement, and shall not preclude Inspire’s exercise of any other applicable rights or remedies from time to time. 
  
 *Indicates that certain information contained herein has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 (e) In the event that Inspire becomes a direct licensee of Pfizer under the Pfizer Patent Rights, Inspire
shall be entitled to offset, against any Inspire Royalties or Minimum Royalties due under this Agreement, any payment made by Inspire to Pfizer in connection with such license. 
 ARTICLE 6 
 TRADEMARKS 
 6.1 Registrations. InSite shall, at InSite’s expense, use its commercially reasonable efforts to secure and thereafter to maintain registrations for all of
the InSite Trademarks in each jurisdiction in the Territory. Inspire agrees to provide reasonable cooperation in connection with InSite’s preparation and filing of any applications, renewals or other documentation necessary or useful to protect
InSite’s intellectual property rights in the InSite Trademarks and Domain Names. 
 6.2 Inspire Trademarks. Subject to Section 3.2 of the
Trademark License Agreement, Inspire shall own any trademarks created by or on behalf of Inspire that Inspire elects, in its sole discretion, to use in connection with the Inspire Licensed Products (the “Inspire Trademarks”). InSite
acknowledges that the Inspire Trademarks and any domain names incorporating such trademarks will be selected by Inspire and will be registered in Inspire’s or its Affiliate’s name and will be the sole property of Inspire, and InSite agrees
that it will not have, assert or acquire any right, title or interest therein or thereto or any good will associated therewith, except as provided in Section 3.2 of the Trademark License Agreement. Subject to Section 3.2 of the Trademark
License Agreement, any trade names, brand names, slogans, logos, designs, trade dress, copyrights and good will used on or in connection with the Inspire Licensed Products may be selected by Inspire in its sole discretion and shall be the sole and
exclusive property of Inspire. Neither InSite nor its Affiliates shall have the right or license to use the Inspire Trademarks at any time before, during, or after the Term of this Agreement; provided, however, that InSite shall be permitted to
mention the Inspire Trademarks to the extent necessary in making any permitted disclosures under Article 8. 
 ARTICLE 7 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 7.1
Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as of the Effective Date that: 
 (a) such Party is a corporation or entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has full corporate power and authority to execute and deliver this Agreement and the
Trademark License Agreement and to carry out the provisions hereof and thereof; 
 (b) such Party is duly authorized, by all requisite
corporate action, to execute and deliver this Agreement and the Trademark License Agreement and to carry out the provisions hereof and thereof, and the Person executing this Agreement and the Trademark License Agreement on behalf of such Party is
duly authorized to do so by all requisite corporate action; 
  

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 (c) no consent, approval, order or authorization of, or registration, qualification, designation,
declaration or filing with, any federal, state or local governmental authority is required on the part of such Party in connection with the valid execution, delivery and performance of this Agreement and the Trademark License Agreement, except where
the failure to obtain any of the foregoing could not, individually or in the aggregate, reasonably be expected to materially adversely affect such Party’s ability to consummate the transactions contemplated herein or therein or perform its
obligations hereunder or thereunder; 
 (d) this Agreement and the Trademark License Agreement are legal and valid obligations binding upon
such Party and enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws; and 
 (e) the execution, delivery and performance by it of this Agreement and the Trademark License Agreement and its compliance with the terms and provisions
of this Agreement and the Trademark License Agreement does not and will not (i) conflict with or result in a violation or breach of any of the terms, conditions or provisions of its certificate or articles of incorporation or by-laws (or other
comparable corporate charter documents); (ii) conflict with or result in a violation or breach of any term or provision of any law or order applicable to it; or (iii) (A) conflict with or result in a violation or breach of,
(B) constitute (with or without notice or lapse of time or both) a default under, (C) require it to obtain any consent, approval or action of, make any filing with or give any notice to any Person as a result or under the terms of, or
(D) result in the creation or imposition of any Lien upon it or any of the InSite Intellectual Property under, any contract, instrument or license to which it is a party or by which any of its assets and properties is bound; except, in the case
of (i), (ii) and (iii) above, which could not, individually or in the aggregate, reasonably be expected to materially adversely affect its ability to consummate the transactions contemplated herein or perform its obligations hereunder, and
except, in the case of (iii)(A), (B) and (D) above, with respect to (x) that certain Amended and Restated Security Agreement, dated as of December 30, 2005, by and between InSite and The Bank of New York (the “Security
Agreement”) and (y) the 2003 Senior Notes, the 2005 Senior Notes (each as defined in the Security Agreement), as amended on December 22, 2006, and those senior secured promissory notes issued by InSite on January 11, 2006, as
amended on December 22, 2006 (the “2006 Senior Notes,” and together with the 2003 Senior Notes and the amended 2005 Senior Notes, the “Senior Secured Notes”). 
 7.2 Additional InSite Representations and Warranties. InSite additionally represents and warrants to Inspire as of the Effective Date that: 
 (a) InSite has the full right, power and authority to grant, and is not prohibited by the terms of any agreement to which it is a party from granting, the
licenses granted to Inspire under Article 2 hereof and under Article 2 of the Trademark License Agreement. InSite has not previously granted any rights inconsistent with the rights and licenses granted to Inspire under this Agreement or the
Trademark License Agreement; 
  

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 (b) InSite is the exclusive owner of all right, title and interest in the InSite Owned Patents as set
forth in Schedule 1, except with respect to the Container Patent Rights which are jointly owned with R.P. Scherer Technologies, Inc. Schedule 1 contains a complete and accurate description of all Patent Rights owned by, or otherwise
Controlled by, InSite or any of its Affiliates as of the Effective Date that are necessary or useful to develop, manufacture or commercialize Subject Products in the Field in the Territory. InSite’s rights and interests in the InSite Owned
Patents are through assignment, without reservation, from the designated inventors; except that it is expressly acknowledged that InSite derives no rights from Patrick Poisson, a co-inventor named in the Container Patent Rights, and that R.P.
Scherer Technologies, Inc., not InSite, is the assignee of Patrick Poisson; 
 (c) all InSite Intellectual Property is, and immediately after
the Effective Date will be, free and clear of all Liens other than the Liens imposed under the terms of the Security Agreement and the Senior Secured Notes, which Liens shall be automatically released upon full payment of the Redemption Amount by
Inspire on behalf of InSite in the manner set forth in Section 4.3. InSite has obtained the assignment or exclusive licenses of all material interests and all material rights from its employees and independent contractors and any other Third
Party contractors with respect to the InSite Know-How and the InSite Formulation Know-How. InSite has taken reasonable security measures to protect the secrecy, confidentiality and value as of the Effective Date of the InSite Know-How and the InSite
Formulation Know-How that it regards as material and in need of confidential treatment; 
 (d) the patent applications included in the InSite
Owned Patents have been duly filed; 
 (e) there are no actions, claims, demands, suits, citations, summons, subpoenas, inquiries or
investigations of any nature, civil, criminal, regulatory or otherwise, in law or in equity, or arbitral proceedings or any proceedings by or before any governmental authority (including any Regulatory Authority), pending or, to InSite’s
Knowledge, threatened against, relating to or affecting InSite or the Current Product or any of the InSite Intellectual Property (with the exception of normal Prosecution at the United States Patent and Trademark Office and equivalent foreign patent
offices or customary actions with the relevant Regulatory Authorities) which (A) could reasonably be expected to result in the issuance of an order restraining, enjoining or otherwise prohibiting or making illegal the consummation of any of the
transactions contemplated by this Agreement and the Trademark License Agreement or otherwise result in a diminution of the benefits contemplated by this Agreement or the Trademark License Agreement to Inspire; or (B) if determined adversely to
it, could reasonably be expected to result in any injunction or other equitable relief against it that would interfere in any material respect with its ability to perform its duties and obligations under this Agreement and the Trademark License
Agreement; 
 (f) to InSite’s Knowledge, neither the manufacture, use or sale of the Current Product nor the use of the InSite Know-How,
the InSite Formulation Know-How or the InSite Trademarks by Inspire as contemplated by this Agreement and the Trademark License Agreement will infringe upon any Third Party’s patents or will constitute a 

  

 35 

 
misappropriation of a Third Party’s trade secrets or other intellectual property rights existing as of the Effective Date; neither InSite nor its
Affiliates and, to InSite’s Knowledge, its Third Party contractors, have received any notice in writing, or otherwise have Knowledge of any facts, which have, or reasonably should have, led InSite to believe that the manufacture, use or sale of
the Current Product or the use of the InSite Know-How, the InSite Formulation Know-How or the InSite Trademarks by Inspire as contemplated by this Agreement and the Trademark License Agreement will infringe any rights of a Third Party existing as of
the Effective Date; 
 (g) to InSite’s Knowledge, there is no Third Party using or infringing any of the InSite Owned Patents or InSite
Trademarks or misappropriating or using InSite Know-How or InSite Formulation Know-How in derogation of the rights granted to Inspire in this Agreement and the Trademark License Agreement; 
 (h) the development, testing, manufacture, labeling, storage and distribution of the Current Product have been conducted by InSite and its Affiliates and,
to InSite’s Knowledge, its Third Party contractors, in compliance in all material respects with all applicable laws, rules and regulations, including with respect to investigational use, good clinical practices, good laboratory practices, good
manufacturing practices, record keeping, security and filing of reports; neither InSite nor its Affiliates, and to InSite’s Knowledge, its Third Party contractors, have received any notice in writing, or otherwise have knowledge of any facts,
which have, or reasonably should have, led InSite to believe that any of the regulatory submissions relating to the Current Product are not currently in good standing with the FDA; 
 (i) InSite has provided to Inspire all material information, available to InSite or its Affiliates, with respect to the safety and/or efficacy of the
Current Product, including without limitation, all material information related to clinical and non-clinical studies, and, to InSite’s Knowledge, there is no issue that would prevent InSite from obtaining Regulatory Approval in each country in
the Territory for the Current Product and there are no material adverse effects that would preclude Inspire or Inspire’s Affiliates from exercising any rights granted hereunder or prohibiting the transactions contemplated by this Agreement and
the Trademark License Agreement; 
 (j) InSite is the exclusive owner of all right, title and interest in the InSite Trademarks. The InSite
Trademarks and registrations thereof are in full force and effect and will be maintained by InSite in the Territory during the Term in the ordinary course. There is no action, suit or proceeding pending or, to InSite’s Knowledge, that has been
threatened in writing by any Third Party which, if adversely determined, would have a material adverse effect upon the ability of Inspire to use the InSite Trademarks in connection with the Subject Products in the Territory under the terms of this
Agreement or the Trademark License Agreement; 
 (k) the Domain Names are duly registered, the registrations thereof are in full force and
effect and will be maintained by InSite during the Term in the ordinary course, and all applicable fees have been paid. InSite is the exclusive registrant of the Domain Names and has the unencumbered right to transfer the Domain Names to Inspire.
The 

  

 36 

 
Domain Names are, and immediately after the Effective Date will be, free and clear of all Liens. There is no action, suit or proceeding pending or, to
InSite’s Knowledge, that has been threatened in writing by any Third Party which, if adversely determined, would have a material adverse effect upon the ability of Inspire to use the Domain Names in connection with the Subject Products in the
Territory under the terms of this Agreement or the Trademark License Agreement; 
 (l) each of the Material Agreements is a legal and valid
obligation binding upon InSite and, as applicable, Pfizer, Columbia, Cardinal or [***], is in full force and effect, and is enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and similar laws. Neither InSite nor, to the Knowledge of InSite, Pfizer, Columbia, Cardinal or [***] is in default or breach of any of its respective obligations under any of the Material Agreements. Neither InSite nor,
to the Knowledge of InSite, Pfizer, Columbia, Cardinal or [***] has waived any rights or defaults or breaches under any of the Material Agreements that would adversely affect the ability of Inspire or Inspire’s Affiliates to exercise any rights
granted under this Agreement or that would prohibit the transactions contemplated by this Agreement. To InSite’s Knowledge, no event has occurred which, after the giving of notice or the lapse of time or both, would constitute a default or
breach under any of the Material Agreements by InSite, Pfizer, Columbia, Cardinal or [***]. True, correct and complete copies of the Material Agreements, including all amendments thereto, have been provided by InSite to Inspire. InSite has not
received any notice orally or in writing that any of the Material Agreements has been, will be, or is threatened to be, terminated (in whole or in part) or that InSite is in default or breach of its obligations under any of the Material Agreements.
InSite has no intention of terminating any of the Material Agreements (in whole or in part) and is not aware of any events, circumstances or grounds upon which any of the Material Agreements may be terminated (in whole or in part) by a party thereto
for default or breach; 
 (m) a true, correct and complete copy of the [***]Agreement, including all amendments thereto, has been provided by
InSite to Inspire. [***] has no right, title or interest in, to or under the InSite Intellectual Property except as expressly set forth in such agreement; and 
 (n) all written statements and other writings furnished by InSite pursuant hereto or in connection with this Agreement or the Trademark License Agreement or the transactions contemplated hereby or thereby, are
complete and accurate in all material respects to the best of InSite’s Knowledge. No representation or warranty by InSite in this Agreement contains any untrue statement of a material fact or omits to state any material fact necessary in order
to make any statement contained herein not misleading. There is no fact, event or condition known to InSite that materially adversely affects the Current Product that has not been set forth in this Agreement or disclosed by InSite to Inspire in
writing. 
  
 *Indicates that certain information contained herein has been omitted
and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 7.3 Additional Inspire Representations and Warranties. Inspire additionally represents and warrants to InSite as
of the Effective Date that there is no action, claim, demand, suit, proceeding, arbitration, grievance, citation, summons, subpoena, inquiry or investigation of any nature, civil, criminal, regulatory or otherwise, in law or in equity, pending or,
to Inspire’s Knowledge, relating to or threatened against Inspire in connection with or relating to the transactions contemplated by this Agreement. 
 7.4 No Implied Warranties. Except as expressly set forth in this Agreement, neither Party makes any representation or warranty, express or implied, with respect to the subject matter hereof or the transactions contemplated hereby.

 7.5 Certain Additional Covenants. 
 (a)
Each Party shall comply in all material respects with all laws, rules and regulations applicable to its performance under this Agreement and the Trademark License Agreement. Without limiting the foregoing, Inspire shall conduct its marketing and
sales activities under this Agreement in compliance with applicable laws, rules and regulations and prevailing pharmaceutical industry standards. Inspire shall use Commercially Reasonable Efforts to maintain an adequate sales force to market and
sell the Inspired Licensed Products as contemplated by this Agreement. 
 (b) InSite shall not grant to any Third Party any rights
inconsistent with the rights and licenses granted to Inspire under this Agreement and the Trademark License Agreement. 
 (c) InSite shall
promptly notify Inspire in writing upon becoming aware: 
 (i) of any actual or threatened claim, judgment or settlement against or owed by
InSite with respect to any of the InSite Intellectual Property, or of any threatened claims or litigation seeking to invalidate the InSite Licensed Patents; 
 (ii) of any actual or threatened investigation, inquiry, action or proceeding by any Regulatory Authority or other government agency with respect to any Subject Product; 
 (iii) of any actual or threatened action, suit or proceeding by any Third Party which, if adversely determined, would have a material adverse effect upon
the ability of Inspire to use the InSite Intellectual Property as licensed hereunder or under the Trademark License Agreement in connection with the Subject Products in the Field in the Territory; or 
 (iv) that the manufacture, use or sale of any Subject Product or the use of the InSite Know-How, the InSite Formulation Know-How or InSite Trademarks may
infringe any Patent Rights or other intellectual property rights of a Third Party. 
 (d) InSite will promptly disclose to Inspire all InSite
Developments that arise, if any. Information provided by InSite to Inspire with respect to such InSite Developments will be in reasonable detail but in no circumstance less than would be sufficient to permit an understanding of the nature of the
InSite Developments by a practitioner reasonably skilled in the relevant technical or scientific area. 
  

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 (e) Except in connection with an assignment or transfer of this Agreement as permitted under
Section 12.2, InSite shall not sell, assign or transfer any of the Material Agreements without Inspire’s prior written consent (such consent not to be unreasonably withheld). InSite shall deploy and conduct itself under each of the
Material Agreements in a manner that will enable Inspire to perform its obligations and exercise its rights with regard to Subject Products and Inspire Licensed Products under this Agreement. In this regard, and without limiting the foregoing,
InSite shall: 
 (i) comply in all material respects with and perform all of its duties and obligations under each of the Material Agreements;

 (ii) not intentionally take or fail to take any action within InSite’s reasonable control under any of the Material Agreements that
could have a materially adverse effect on Inspire’s rights under this Agreement, including but not limited to any action or inaction that would empower Pfizer, Columbia, Cardinal or [***] to terminate any of the Material Agreements or otherwise
limit or reduce InSite’s rights thereunder in any material respect; 
 (iii) enforce the material provisions of each of the Material
Agreements against Pfizer, Columbia, Cardinal, or [***], as applicable, if failure to do so could have a materially adverse effect on Inspire’s rights with respect to Subject Products or Inspire Licensed Products under this Agreement; and

 (iv) not modify, amend or terminate any of the Material Agreements without the prior written consent of Inspire. 
 (f) InSite shall promptly (but no later than within five (5) Business Days) notify Inspire in writing of any actual or threatened (or InSite’s
receipt of notice of any actual or threatened) default (including failure to pay royalties when due, if applicable), breach, suspension of compliance or performance, or termination (in whole or in part) under or of any of the Material Agreements.
InSite shall promptly (but no later than within five (5) Business Days) notify Inspire in writing of the actual or threatened commencement of (or receipt of notice of the actual or threatened commencement of) any dispute, claim, suit,
litigation or arbitration proceeding related to any of the Material Agreements, including without limitation those disputes, claims, suits, litigations or arbitration proceedings alleging a Third Party’s infringement or misappropriation of any
of the Patent Rights licensed or sublicensed under the Pfizer Agreement or the Columbia Agreement. Each such notification shall contain a summary of the event described therein. At the request of Inspire, InSite shall promptly provide to Inspire
full particulars, of which it is aware, in writing of the applicable matter. InSite shall keep Inspire reasonably informed as to the status and proposed resolution of each such matter. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission.
Confidential treatment has been requested with respect to the omitted portions. 
  

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 (g) In the event that InSite receives notice of any default (including failure to pay royalties when due)
or breach under any of the Material Agreements and has not cured such breach or default within ten (10) days of receiving such notice, Inspire shall be entitled, but not obligated, to undertake payment or performance of the applicable
underlying obligation on behalf of InSite as necessary to cure such default or breach and to offset, against amounts payable to InSite under this Agreement, any reasonable costs and expenses incurred by Inspire in the course thereof. 
 (h) InSite shall notify Inspire in writing promptly after receipt by InSite of any notice from Pfizer or Columbia relating to the status, validity, or
change thereto, of any of the Patent Rights licensed or sublicensed under the Pfizer Agreement or the Columbia Agreement (including maintenance, filings, extensions, abandonments, surrenders, patent office proceedings, Third Party interference or
other challenges to, or Third Party potential infringement or misappropriation of such Patent Rights) (each, an “IP Communication”). InSite shall inform Inspire of the receipt and substance of each IP Communication and if in writing
shall furnish Inspire with a copy of such IP Communication. InSite shall promptly inform Inspire in writing if InSite receives, or becomes aware of, any certification filed under the U.S. “Drug Price Competition and Patent Term Restoration Act
of 1984” claiming that any patent licensed or sublicensed under the Pfizer Agreement or the Columbia Agreement is invalid or that infringement thereof will not arise from the manufacture, use, import, offer for sale or sale of any product by a
Third Party. 
 (i) InSite shall be responsible for and comply in all material respects with and materially perform all of its duties and
obligations under the [***] Agreement and under any other agreement by or through which any Third Party has any right, title or interest in or to any of the InSite Intellectual Property. 
 (j) InSite shall not create, incur, or allow any Lien on any of the InSite Intellectual Property, unless the Person that is to hold such Lien shall have
first entered into a mutually acceptable non-disturbance agreement with Inspire providing to the effect that, in the event such Person exercises its rights with respect to the InSite Intellectual Property under such Lien, such Person agrees to
recognize the existence and validity of, and Inspire’s rights with respect to the InSite Intellectual Property under, this Agreement or any agreement supplementary hereto. 
 (k) Inspire and its Affiliates shall not directly or indirectly challenge or induce any Third Party to challenge the validity or enforceability of the
Pfizer Patent Rights, or any patent claim(s) therein, or initiate or participate in any re-examination or other proceeding related to the validity, enforceability or patentability of any claim of the Pfizer Patent Rights before any tribunal or
patent office. This section shall not prohibit Inspire and its Affiliates from responding to a subpoena, process, or discovery requests in any litigation or administrative proceeding provided that Inspire gives prompt notice to Pfizer of the receipt
of said subpoena, process or discovery requests. 
 (l) The Parties acknowledge the provisions of Section 4(b) of the Pfizer Agreement
regarding estimated monthly net sales and the Parties agree to cooperate reasonably to 

  

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facilitate compliance with such provisions. The Parties further acknowledge that to the extent Inspire delivers information regarding such estimated monthly
net sales to InSite for further delivery by InSite to Pfizer then such further delivery shall not constitute a breach of Section 8.1 of this Agreement, provided that InSite shall advise Pfizer that such disclosure is Confidential Information
under the Pfizer Agreement and subject to the obligations of non-disclosure and non-use in Section 11(a) of the Pfizer Agreement. 
 ARTICLE 8 
 CONFIDENTIALITY, PUBLICATION AND PUBLIC ANNOUNCEMENTS 
 8.1 Confidentiality. The Parties agree that during the Term, and for a period of five (5) years after this Agreement expires or terminates, a Party receiving
Confidential Information of the other Party shall (i) maintain in confidence such Confidential Information to the same extent such Party maintains its own proprietary information of similar kind and value (but at a minimum each Party shall use
commercially reasonable efforts to maintain Confidential Information in confidence); (ii) not disclose such Confidential Information to any Third Party without prior written consent of the Disclosing Party, except for disclosures to its
sublicensees and commercial partners for Subject Products who agree to be bound by obligations of non-disclosure and non-use at least as stringent as those contained in this Article 8; and (iii) not use such Confidential Information for any
purpose except those purposes permitted by this Agreement. InSite acknowledges that notwithstanding any other provision of this Agreement, it shall be an uncurable material breach of this Agreement if InSite breaches this Section 8.1 with
respect to any Confidential Information of Inspire regarding actual or projected financial, sales or supply information or forecasts, including without limitation disclosing such Confidential Information or any portion thereof to investors, analysts
or any other Third Party or providing opinions or financial projections to any Third Party based on such Confidential Information. InSite shall in no event be restricted from providing its own financial projections, so long as Inspire’s
confidential projections are not disclosed and InSite’s projections are not in any way attributed to Inspire by InSite. For the avoidance of doubt, any financial information of Inspire that is made generally available to the public by Inspire
shall not be considered Confidential Information of Inspire. 
 8.2 Authorized Disclosure. Notwithstanding any other provision of this Agreement, the
Receiving Party may disclose Confidential Information of the Disclosing Party to a Third Party: (i) to the extent and to the Persons as required by an applicable law, rule, regulation, legal process or court order, or an applicable disclosure
requirement of any Regulatory Authority, the U.S. Securities and Exchange Commission (“SEC”), the Nasdaq market or any other securities exchange or market; or (ii) to the extent necessary to exercise the rights granted to or
retained by the Receiving Party under this Agreement in filing or prosecuting patent applications, prosecuting or defending litigation or otherwise establishing rights or enforcing obligations under this Agreement; provided, however, that the
Receiving Party shall provide prior notice of such intended disclosure to the Disclosing Party if possible under the circumstances and shall disclose only such Confidential Information of the Disclosing Party as is reasonably required to be
disclosed. 
 8.3 Scientific Publications. Subject to existing obligations of each Party to any Third Party and excluding any publications currently
being pursued, each as described in Schedule 8.3, prior 

  

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to making any formal scientific publication relating to any Inspire Licensed Product or Subject Product in the Field (a “Scientific
Publication”), each Party (the “Publishing Party”) agrees to provide the other Party (the “Reviewing Party”) the opportunity to review: (a) any proposed Scientific Publication comprising a formal
scientific paper for publication in any peer reviewed journal at least thirty (30) days prior to its intended publication, and (b) any proposed Scientific Publication comprising a formal scientific abstract or poster at least ten
(10) days prior to its intended publication. The Reviewing Party shall have the right (i) to request in good faith a delay in the Scientific Publication in order to protect patentable information; and (ii) to require the Publishing
Party to remove from the Scientific Publication the Reviewing Party’s Confidential Information. If the Reviewing Party requests a delay pursuant to clause (i) of the preceding sentence, the Publishing Party shall delay the Scientific
Publication for a period of sixty (60) days from such request to enable patent applications to be filed protecting each Party’s rights in such information. Upon the expiration of the applicable period specified above in this
Section 8.3, the Publishing Party shall be free to proceed with the Scientific Publication as transmitted to the Reviewing Party, except to the extent that the Reviewing Party has exercised its rights under clause (i) or (ii) of the
second preceding sentence. 
 8.4 Disclosure of Agreement. The Parties agree that the material terms of this Agreement shall be considered
Confidential Information of both Parties, subject to the special authorized disclosure provisions set forth below in this Section 8.4 (in lieu of the authorized disclosure provisions set forth in Section 8.2, to the extent of any conflict)
and without limiting the generality of the definition of Confidential Information set forth in Section 1.15. The Parties will mutually agree the text of a press release announcing the execution of this Agreement. Thereafter, if either Party
desires to make a public announcement concerning the terms of this Agreement, such Party shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for its prior review and approval, such approval not to
be unreasonably withheld. A Party shall not be required to seek the permission of the other Party to repeat or disclose any information as to the terms of this Agreement that has already been publicly disclosed by such Party in accordance with the
foregoing or by the other Party, or any similar or comparable information. Either Party may disclose the terms of this Agreement to such Party’s existing investors, lenders, directors and professional advisors and to potential investors,
lenders, acquirors or merger partners and their professional advisors who are bound by written or professional obligations of non-disclosure and non-use that are at least as stringent as those contained in this Article 8 or are customary for such
purpose. InSite also may disclose this Agreement to Pfizer as required under Section 2(c) of the Pfizer Agreement, provided that InSite shall advise Pfizer that such disclosure is Confidential Information under the Pfizer Agreement and subject
to the obligations of non-disclosure and non-use in Section 11(a) of the Pfizer Agreement. Inspire also may disclose the relevant terms of this Agreement to potential sublicensees who agree to be bound by obligations of non-disclosure and
non-use at least as stringent as those contained in this Article 8. Each Party acknowledges that the other Party may be obligated to file a copy of this Agreement with the SEC with its next quarterly report on Form 10-Q, annual report on Form 10-K
or current report on Form 8-K or with any registration statement filed with the SEC pursuant to the Securities Act of 1933, as amended, and each Party shall be entitled to make such filings, provided, however, that the filing Party requests (to the
extent legally permitted) confidential treatment of the terms hereof for which confidential treatment is customarily sought, to the extent such confidential treatment is reasonably available to such Party under the circumstances then prevailing. In
the event of any such filing, the filing 

  

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Party will provide the other Party with a copy of the Agreement marked to show provisions for which the filing Party intends to seek confidential treatment
and shall reasonably consider the other Party’s timely comments thereon. 
 8.5 Unauthorized Use. If either Party becomes aware or has knowledge
of any unauthorized use or disclosure of the other Party’s Confidential Information, it shall promptly notify the other Party of such unauthorized use or disclosure. 
 8.6 Return of Confidential Information. Upon termination of this Agreement, the Receiving Party shall promptly return all of the Disclosing Party’s Confidential Information, including all reproductions and
copies thereof in any medium (except that the Receiving Party may retain one copy for its legal files) except as otherwise reasonably necessary to exercise the Receiving Party’s surviving rights under this Agreement. 
 ARTICLE 9 
 INDEMNIFICATION

 9.1 Inspire. Inspire shall indemnify, defend and hold harmless InSite and its Affiliates and their respective directors, officers, employees
and agents (the “InSite Indemnitees”) from and against any and all losses, costs, damages, liabilities fees or expenses (including reasonable attorney’s fees and expenses) (“Losses”) incurred in connection with
or arising out of any Third Party claim, suit, action or proceeding (a “Third Party Claim”) against any InSite Indemnitees to the extent resulting from (i) the breach by Inspire of any of its representations, warranties,
covenants or obligations under this Agreement or the Trademark License Agreement, (ii) any gross negligence or willful misconduct of Inspire in the exercise of any rights granted by InSite or the performance of any of Inspire’s obligations
under this Agreement or the Trademark License Agreement, or (iii) the development, manufacture, sale or use of any Subject Product by Inspire or its Affiliates and sublicensees. 
 9.2 InSite. InSite shall indemnify, defend and hold harmless Inspire and its Affiliates and their respective directors, officers, employees and agents (the “Inspire Indemnitees”) from and
against any and all Losses incurred in connection with or arising out of any Third Party Claim against any Inspire Indemnitees to the extent resulting from (i) the breach by InSite of any of its representations, warranties, covenants or
obligations under this Agreement or the Trademark License Agreement, (ii) any gross negligence or willful misconduct of InSite in the exercise of any of its rights or the performance of any of its obligations under this Agreement or the
Trademark License Agreement, (iii) the development or manufacture of any Subject Product by InSite or its Affiliates, or (iv) the sale or use of any Subject Product by InSite or its Affiliates. 
 9.3 Indemnification Procedures. 
 (a) In the case of a
Third Party Claim made by any Person who is not a Party to this Agreement (or an Affiliate thereof) as to which a Party (the “Indemnitor”) may be obligated to provide indemnification pursuant to this Agreement, such Party seeking
indemnification hereunder (the “Indemnitee”) will notify the Indemnitor in writing of the Third Party Claim (and specifying in reasonable detail the factual basis for the Third Party Claim and, to the extent known, the amount of the
Third Party Claim) reasonably 

  

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promptly after becoming aware of such Third Party Claim; provided, however, that failure to give such notification will not affect the indemnification
provided hereunder except to the extent the Indemnitor shall have been actually prejudiced as a result of such failure. 
 (b) If a Third
Party Claim is made against an Indemnitee and the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee therefor, the Indemnitor will be entitled, within one hundred twenty (120) days after receipt of written notice from
the Indemnitee of the commencement or assertion of any such Third Party Claim, to assume the defense thereof (at the expense of the Indemnitor) with counsel selected by the Indemnitor and reasonably satisfactory to the Indemnitee, for so long as the
Indemnitor is conducting a good faith and diligent defense. Should the Indemnitor so elect to assume the defense of a Third Party Claim, the Indemnitor will not be liable to the Indemnitee for any legal or other expenses subsequently incurred by the
Indemnitee in connection with the defense thereof; provided, however, that if under applicable standards of professional conduct a conflict of interest exists between the Indemnitor and the Indemnitee in respect of such claim, such Indemnitee shall
have the right to employ separate counsel (which shall be reasonably satisfactory to the Indemnitor) to represent such Indemnitee with respect to the matters as to which a conflict of interest exists and in that event the reasonable fees and
expenses of such separate counsel shall be paid by such Indemnitor; provided, further, that the Indemnitor shall only be responsible for the reasonable fees and expenses of one separate counsel for such Indemnitee. If the Indemnitor assumes the
defense of any Third Party Claim, the Indemnitee shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the Indemnitor. If the Indemnitor assumes the defense of any
Third Party Claim, the Indemnitor will promptly supply to the Indemnitee copies of all correspondence and documents relating to or in connection with such Third Party Claim and keep the Indemnitee informed of developments relating to or in
connection with such Third Party Claim, as may be reasonably requested by the Indemnitee (including, without limitation, providing to the Indemnitee on reasonable request updates and summaries as to the status thereof). If the Indemnitor chooses to
defend a Third Party Claim, all Indemnitees shall reasonably cooperate with the Indemnitor in the defense thereof (such cooperation to be at the expense, including reasonable legal fees and expenses, of the Indemnitor). If the Indemnitor does not
elect to assume control of the defense of any Third Party Claim within the one hundred twenty (120) day period set forth above, or if such good faith and diligent defense is not being or ceases to be conducted by the Indemnitor, the Indemnitee
shall have the right, at the expense of the Indemnitor, after three (3) Business Days notice to the Indemnitor of its intent to do so, to undertake the defense of the Third Party Claim for the account of the Indemnitor (with counsel selected by
the Indemnitee), and to compromise or settle such Third Party Claim, exercising reasonable business judgment; provided, however, that the Indemnitee shall not compromise or settle such Third Party Claim without the Indemnitor’s prior written
consent (which consent shall not be unreasonably withheld) if such compromise or settlement would result in an admission or liability or loss of right by the Indemnitor or payment by the Indemnitor. The Indemnitor agrees to reasonably cooperate with
the Indemnitee in such defense, at the Indemnitor’s expense, including being joined as a necessary party. 
  

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 (c) If the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee for a Third
Party Claim, the Indemnitee will agree to any settlement, compromise or discharge of such Third Party Claim that the Indemnitor may recommend that by its terms obligates the Indemnitor to pay the full amount of Losses (whether through settlement or
otherwise) in connection with such Third Party Claim and unconditionally and irrevocably releases the Indemnitee completely from all liability in connection with such Third Party Claim; provided, however, that, without the Indemnitee’s prior
written consent, the Indemnitor shall not consent to any settlement, compromise or discharge (including the consent to entry of any judgment), and the Indemnitee may refuse in good faith to agree to any such settlement, compromise or discharge, that
provides for injunctive or other non-monetary relief affecting the Indemnitee. If the Indemnitor acknowledges in writing its obligation to indemnify the Indemnitee for a Third Party Claim, the Indemnitee shall not (unless required by law) admit any
liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnitor’s prior written consent (which consent shall not be unreasonably withheld). 
 9.4 Insurance Proceeds. Any indemnification hereunder shall be made net of any insurance proceeds recovered by the Indemnitee (it being understood that an
Indemnitee may simultaneously pursue an insurance claim and a claim for indemnification hereunder); provided, however, that if, following the payment to the Indemnitee of any amount under this Article 9, such Indemnitee recovers any insurance
proceeds in respect of the claim for which such indemnification payment was made, the Indemnitee shall promptly pay an amount equal to the amount of such proceeds (but not exceeding the amount of such indemnification payment) to the indemnifying
Party. 
 9.5 Insurance. Each Party agrees to obtain and maintain commercial general liability insurance, including clinical trials and products
liability insurance, with reputable and financially secure insurance carriers, in such amounts and subject to such deductibles as are reasonable and customary in the pharmaceutical industry for companies of comparable size and activities. Each Party
shall maintain such insurance for so long as Subject Products in the Territory continue to be developed, manufactured or sold and thereafter for so long as is necessary to cover any and all Third Party Claims which may arise from the development,
manufacture or sale of Subject Products in the Territory. Upon reasonable request by a Party, the other Party shall produce evidence that such insurance policies are valid, kept up to date and in full force and effect. 
 ARTICLE 10 
 TERM AND TERMINATION

 10.1 Term. Except as set forth in Section 12.13, unless earlier terminated by mutual agreement of the Parties in writing or pursuant to
the provisions of this Article 10, this Agreement will become effective as of the Effective Date and continue in full force and effect until the expiration of the Inspire Royalty Term with respect to all Inspire Licensed Products throughout the
Territory (the “Term”). 
 10.2 Voluntary Termination by Inspire. Notwithstanding any other provision herein, Inspire may terminate
this Agreement in its entirety or on a country-by-country basis for its convenience 

  

 45 

 
at any time after the earlier of (i) the Regulatory Approval of the Current Product in the United States or (ii) April 27, 2008, subject to the
following. If Inspire so terminates prior to the First Commercial Sale of an Inspire Licensed Product, Inspire shall provide InSite no less than ninety (90) days advance written notice of such intent to terminate. If Inspire so terminates after such
First Commercial Sale, Inspire shall provide InSite no less than one hundred eighty (180) days advance written notice of such intent to terminate. During such one hundred eighty (180) day notice period (if applicable), Inspire’s obligations
under this Agreement shall continue, subject to all terms and conditions of this Agreement. 
 10.3 Material Breach. Upon a material breach of this
Agreement by a particular Party (in such capacity, the “Breaching Party”), the other Party (in such capacity, the “Non-Breaching Party”) may provide written notice (a “Breach Notice”) to the
Breaching Party specifying the material breach. If the Breaching Party fails to cure such material breach during the [***] day period following the date on which the Breach Notice is provided (or, if applicable, such longer period, but not to exceed
[***] days, as would be reasonably necessary for a diligent party to cure such material breach, provided the Breaching Party has commenced and continues its diligent efforts to cure during the initial [***] day period following the date on which the
Breach Notice is provided) (such failure, an “Uncured Breach”), then the Non-Breaching Party may terminate this Agreement on a country-by-country basis with respect to the particular country that was at issue in the Uncured Breach.
Notwithstanding the foregoing, the cure period for any failure by Inspire to make the Milestone Payment or to make royalty payments due hereunder shall be [***] days; provided, however, that the failure by Inspire to make any such payment shall not
be considered a breach to the extent that such payment is the subject of a good faith dispute by Inspire. 
 10.4 Bankruptcy or Insolvency. Either
Party may, subject to the provisions set forth herein, terminate this Agreement by giving the other Party written termination notice if, at any time, the other Party shall: (a) file in any court pursuant to any statute a petition for bankruptcy
or insolvency, or for reorganization in bankruptcy, or for an arrangement or for the appointment of a receiver, trustee or administrator of such Party or of its assets; (b) be served with an involuntary petition against it, filed in any
insolvency proceeding, and such petition shall not be dismissed within sixty (60) days after the filing thereof; (c) propose or be a party to any dissolution; or (d) make an assignment for the benefit of its creditors. 
 10.5 Continuing Rights of Sublicensees. Upon any termination of any license rights granted to Inspire under this Agreement, each sublicense previously granted by
Inspire or any of its Affiliates under such license rights to any Person that is not an Affiliate of Inspire (each, an “Independent Sublicensee”) shall remain in effect and shall become a direct license or sublicense, as the case
may be, of such rights by InSite to such Independent Sublicensee, subject to (i) the Independent Sublicensee agreeing in writing to assume Inspire’s terms, conditions and obligations to InSite under this Agreement as they pertain to the
sublicensed rights, and (ii) Inspire remaining liable for any liability to the Independent Sublicensee incurred by Inspire prior to such termination. 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions. 
  

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 10.6 Effect of Expiration or Termination of Agreement. 
 (a) Expiration or termination of this Agreement in its entirety pursuant to this Article 10 shall not (i) relieve a Party hereto of any obligation
accruing to such Party prior to such termination, or (ii) result in the waiver of any right or remedy by a Party hereto accruing to such Party prior to such termination. Without limiting the foregoing, upon expiration or termination of this
Agreement in its entirety pursuant to this Article 10, Inspire shall pay InSite all outstanding accrued payments under this Agreement in the manner required by this Agreement. 
 (b) Upon termination of this Agreement in its entirety by Inspire pursuant to Section 10.2 or by InSite pursuant to Sections 10.3 or 10.4:
(i) all licenses granted to Inspire by InSite under this Agreement will terminate, and all rights therein will revert to InSite; and (ii) Inspire promptly shall assign and surrender to InSite (A) the Regulatory Dossier in the
Territory for all Subject Products and (B) all Third Party agreements that relate solely to the Subject Products and are necessary for the development, manufacture or commercialization of Subject Products in the Territory, provided that Inspire
has the right to assign such agreements. Inspire promptly shall cease, and cause its Affiliates and sublicensees (subject to Section 10.5) promptly to cease, any sale of any Subject Product in the Territory. In addition, Inspire promptly shall
execute any and all other instruments, forms of assignment or other documents and take such further actions as InSite may reasonably request in order to give effect to or evidence the foregoing assignments. 
 (c) Upon termination of this Agreement in its entirety by Inspire pursuant to Sections 10.3 or 10.4, Inspire shall have a period of [***] months to
continue to sell any Inspire Licensed Products in its or its Affiliate’s or sublicensee’s inventory (the “Wind-Down Period”), subject to the payment of royalties and other terms of this Agreement. After the Wind-Down
Period, (i) all licenses granted to Inspire by InSite under this Agreement will terminate, and all rights therein will revert to InSite; and (ii) Inspire promptly shall assign and surrender to InSite (A) the Regulatory Dossier in the
Territory for all Subject Products and (B) all Third Party agreements that relate solely to the Subject Products and are necessary for the development, manufacture or commercialization of Subject Products in the Territory, provided that Inspire
has the right to assign such agreements. After the Wind-Down Period, Inspire shall promptly cease, and cause its Affiliates and sublicensees (subject to Section 10.5) promptly to cease, any sale of any Subject Product in the Territory. In
addition, Inspire promptly shall execute any and all other instruments, forms of assignment or other documents and take such further actions as InSite may reasonably request in order to give effect to or evidence the foregoing assignments.

  
 *Indicates that certain information contained herein has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

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 10.7 Effect of Partial Termination of Agreement. 
 (a) Termination of this Agreement with respect to a particular country pursuant to this Article 10 shall not (i) relieve a Party hereto of any
obligation accruing to such Party prior to such termination, (ii) result in the waiver of any right or remedy by a Party hereto accruing to such Party prior to such termination, or (iii) result in the termination or modification of any
rights or obligations of a Party under the Agreement not involved in such termination. 
 (b) Upon termination of this Agreement with respect
to a particular country by Inspire pursuant to Section 10.2 or by InSite pursuant to Section 10.3: (i) the licenses granted to Inspire by InSite under this Agreement solely with respect to such country will terminate, and all such
rights will revert to InSite; and (ii) Inspire promptly shall assign and surrender to InSite (A) the Regulatory Dossier in such country for all Subject Products and (B) all Third Party agreements that relate solely to the Subject
Products in such country and are necessary for the development, manufacture or commercialization of Subject Products in such country, provided that Inspire has the right to assign such agreements. Inspire promptly shall cease, and cause its
Affiliates and sublicensees (subject to Section 10.5) promptly to cease, any sale of any Subject Product in such country. In addition, Inspire promptly shall execute any and all other instruments, forms of assignment or other documents and take
such further actions as InSite may reasonably request in order to give effect to or evidence the foregoing assignments. 
 (c) Upon
termination of this Agreement with respect to a particular country by Inspire pursuant to Section 10.3, Inspire shall have a period of twelve (12) months to continue to sell Inspire Licensed Products in such country, subject to the payment
of royalties and other terms of this Agreement. After such period, (i) the licenses granted to Inspire by InSite under this Agreement solely with respect to such country will terminate, and all such rights will revert to InSite; and
(ii) Inspire promptly shall assign and surrender to InSite (A) the Regulatory Dossier in such country for all Subject Products and (B) all Third Party agreements that relate solely to the Subject Products in such country and are
necessary for the development, manufacture or commercialization of Subject Products in such country, provided that Inspire has the right to assign such agreements. After such period, Inspire shall promptly cease, and cause its Affiliates and
sublicensees (subject to Section 10.5) promptly to cease, any sale of any Subject Product in such country. In addition, Inspire promptly shall execute any and all other instruments, forms of assignment or other documents and take such further
actions as InSite may reasonably request in order to give effect to or evidence the foregoing assignments. 
 10.8 Inspire Remedy for Uncured Breach.
In the event of an Uncured Breach by InSite, the Inspire Royalties with respect to all Inspire Licensed Products immediately shall be reduced by [***] of the amounts otherwise owed by Inspire under this Agreement until such time as InSite

  
 *Indicates that certain information contained herein has been omitted and
filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 
  

 48 

 
has cured such Uncured Breach. For the avoidance of doubt, only one such reduction shall be in effect at any particular time during the Term. For the further
avoidance of doubt, such reduction shall be cumulative with, and shall not limit the application of, any other reduction or offset to which Inspire is or may be entitled under this Agreement. In addition, the enumeration of the remedy set forth in
this Section 10.8 is not intended to be to the exclusion of other applicable remedies, and it shall not preclude Inspire’s exercise of any other applicable rights or remedies under the Agreement or that may now or hereafter exist at law or
in equity. 
 10.9 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by InSite to Inspire are, for all
purposes of Section 365(n) of Title 11 of the U.S. Code (“Title 11”), licenses of rights to intellectual property as defined in Title 11. InSite agrees during the Term of this Agreement to maintain and preserve any current
copies of all such intellectual property that are in existence and in its possession as of the commencement of a case under Title 11 by or against InSite. If a case is commenced by or against InSite under Title 11, then, unless and until this
Agreement is rejected as provided in Title 11, InSite (in any capacity, including debtor-in-possession) and its successors and assigns (including, without limitation, a Title 11 Trustee) shall, as Inspire may elect in a written request, immediately
upon such request (a)(i) perform all of the obligations provided in this Agreement to be performed by InSite, or (ii) provide to Inspire copies of all such intellectual property (including all embodiments thereof) held by InSite and such
successors and assigns as of the commencement of a case under Title 11 by or against InSite and from time to time thereafter, and (b) not interfere with the rights of Inspire as provided in this Agreement, or any agreement supplementary hereto,
to such intellectual property (including all such embodiments thereof), including any right of Inspire to obtain such intellectual property (or such embodiment) from any other entity. 
 ARTICLE 11 
 INTELLECTUAL PROPERTY 
 11.1 Prosecution of InSite Licensed Patents. InSite shall have the obligation to diligently Prosecute the InSite Owned Patents, and, if and to the extent InSite
is permitted to do so under the Pfizer Agreement, to diligently Prosecute the Pfizer Patent Rights (the Pfizer Patent Rights with respect to which InSite has such rights, if any, the “Pfizer Prosecution Patents”), in the Territory
at no cost to Inspire. InSite and Inspire shall reasonably consult and cooperate with each other regarding the Prosecution of the AzaSite Patent Rights and the Pfizer Prosecution Patents with regard to matters affecting Subject Products. 

11.2 Right to Consult. During the Term, InSite shall copy Inspire, or have Inspire copied, on all substantive documents relating to the AzaSite Patent Rights
and the Pfizer Prosecution Patents received from or to be filed in any patent office in the Territory, within fifteen (15) days of receipt from the patent office and at least fifteen (15) days prior to filing with the patent office,
respectively, including without limitation copies of each patent application, official action, response to official action, declaration, information disclosure statement, request for terminal disclaimer, request for patent term extension, and
request for reexamination. Inspire may comment on the Prosecution of the AzaSite Patent Rights and the Pfizer Prosecution Patents with regard to matters affecting Subject Products and provide such comments to InSite’s patent counsel, and InSite
shall cause its patent counsel to consider in good faith such comments from Inspire. 
  

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 11.3 Abandonment of Prosecution by InSite. InSite shall notify Inspire in the event it for any reason elects to
abandon the Prosecution of a particular patent application or maintenance of an issued patent within the AzaSite Patent Rights or the Pfizer Prosecution Patents in the Territory (other than in favor of a continuing application based on such parent
application). Such notification shall specify the application to be abandoned or patent that will not longer be maintained by InSite and shall be given within a reasonable period (i.e., with sufficient time for Inspire to take action as may be
necessary or desired) prior to the date on which such patent application(s) or patent(s) will lapse or go abandoned. With respect to any such patent application(s) or patent(s) that relate to Subject Products, Inspire shall then have the option with
respect to the AzaSite Patent Rights, exercisable upon written notification to InSite, and InSite shall not interfere with any rights Inspire may have with respect to the Pfizer Prosecution Patents, to assume full responsibility, at Inspire’s
discretion and at Inspire’s cost and expense, for Prosecution of the affected patent application(s) or maintenance of any of the affected patent(s) in such country or countries in the Territory; provided, however, that Inspire may offset any
such costs and expenses against the Milestone Payment or Inspire Royalties or Minimum Royalties due to InSite. 
 11.4 Patent Term Extensions. Inspire
shall have the right to request that InSite file all applications and take actions necessary to obtain patent extension pursuant to 35 U.S.C. § 156 or similar foreign statutes for the AzaSite Patent Rights in the Territory (to the extent
affecting Subject Products), which extensions shall be owned by InSite. If InSite declines to pursue such patent extensions, then Inspire shall have the right (at Inspire’s cost and expense) on behalf of InSite to file all such applications and
take all such actions necessary to obtain such patent extensions. InSite agrees to sign such further document and take such further actions (at Inspire’s cost and expense) as may be requested by Inspire in this regard. Inspire may offset any
costs and expenses incurred by it under this Section 11.4 against the Milestone Payment or Inspire Royalties or Minimum Royalties due to InSite. 
 11.5
Third Party Infringement. 
 (a) Suits for Infringement of the InSite Licensed Patents or InSite Trademarks. If InSite or
Inspire becomes aware of infringement of any patent included in the InSite Licensed Patents by a Third Party in the Territory, or any material instance of an actual or potential infringement of, or unfair competition by a Third Party affecting, any
InSite Trademark used in connection with Inspire Licensed Products in the Territory, such Party shall promptly notify the other Party in writing to that effect and provide a summary of the relevant facts and circumstances known to such Party
relating to such infringement (“Infringement Notice”). Promptly after receipt of an Infringement Notice, the Parties shall discuss in good faith the infringement or unfair competition and appropriate actions that could be taken to
cause it to cease. Upon Inspire’s request, InSite shall submit to Pfizer a writing approved by Inspire evidencing any infringement of the Pfizer Patent Rights and shall request that Pfizer assert the Pfizer Patent Rights to restrain such
infringement. InSite shall keep Inspire informed with respect to any such proceeding as may be instituted by Pfizer. InSite shall have the right, but not be obligated, at its sole 

  

 50 

 
discretion, on its own behalf, to institute, prosecute and control any action or proceeding to restrain infringement of any InSite Owned Patents or to abate
infringement or unfair competition with respect to any InSite Trademarks. In addition, if and to the extent InSite is permitted to do so under the Pfizer Agreement, InSite shall, upon Inspire’s request, institute and diligently prosecute an
action or proceeding to restrain infringement of any Pfizer Patent Rights. Inspire shall provide all reasonable cooperation required to prosecute such litigation. InSite shall have sole control of any such suit and all negotiations for its
settlement or compromise; provided, however, that (i) InSite shall keep Inspire informed and consult with Inspire with respect to any such proceeding and (ii) InSite shall not settle or compromise any such suit or enter into any agreement
or consent order for the settlement or compromise thereof without the prior written consent of Inspire, which consent shall not be unreasonably withheld. 
 (b) Step-in Right for Inspire. If, prior to the expiration of three (3) months from said Infringement Notice, (i) (A) InSite has not obtained a discontinuance of an alleged infringement of the
InSite Owned Patents or an alleged infringement or unfair competition with respect to any InSite Trademarks by a Third Party or brought an infringement action or proceeding or otherwise taken appropriate action to abate such infringement or unfair
competition, or (B) if InSite shall notify Inspire at any time prior thereto of its intention not to bring suit against an alleged infringer and (ii) such infringement or unfair competition is not de minimis and is adverse to an
Inspire Licensed Product in the Field in the Territory, then Inspire shall have the right, but not be obligated, to institute, prosecute and control any action or proceeding to restrain such infringement or unfair competition. In addition, if InSite
is permitted to institute and prosecute an action or proceeding to restrain infringement of any Pfizer Patent Rights, and InSite does not diligently do so within ten (10) days of Inspire’s request therefor, then Inspire shall, subject to
any rights of Pfizer with respect to the Pfizer Patent Rights, have the right, but not be obligated, to institute, prosecute and control any action or proceeding to restrain such infringement. InSite agrees to be joined as a party plaintiff if
necessary to prosecute any such action or proceeding and shall provide all reasonable cooperation, including any necessary use of its name, required to prosecute any such litigation. InSite shall have the right to join any such action, using counsel
of its own choosing and at its own expense. Inspire shall have sole control of any such suit and all negotiations for its settlement or compromise; provided, however, that (i) Inspire shall keep InSite informed and consult with InSite with
respect to any such proceeding and (ii) Inspire shall not settle or compromise any such suit or enter into any agreement or consent order for the settlement or compromise thereof without the prior written consent of InSite, which consent shall
not be unreasonably withheld. 
 (c) Costs and Recoveries from Infringement Action. Each Party shall assume and pay all of its own
out-of-pocket costs incurred in connection with any litigation or proceedings described in this Section 11.5 including, without limitation, the fees and expenses of that Party’s counsel. Any recovery obtained by any Party as a result of
any proceeding described in this Section 11.5, by settlement or otherwise, shall be applied in the following order of priority: (i) first, to reimburse each Party for all litigation costs in connection with such proceeding paid by that
Party and not otherwise recovered (on a pro rata basis based on each Party’s respective litigation costs, to the extent the recovery was less than all such litigation costs); and (ii) second, the remainder of the recovery shall be shared
equally. 
  

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 (d) Declaratory Actions and Counterclaims Against Inspire or InSite. In the event that an action
alleging invalidity or non-infringement of any of the InSite Owned Patents shall be brought against InSite or Inspire, InSite, at its sole discretion, shall have the right, but not be obligated, within thirty (30) days after the commencement of
such action, to take or regain control of the action at its own expense. If InSite shall determine not to exercise this right, Inspire may take over or remain as lead counsel for the action at Inspire’s sole discretion. Any recovery obtained
from such litigation, proceeding or settlement shall be shared in accordance with Section 11.5(c). 
 11.6 Infringement of Third Party Rights.

 (a) Infringement Claims. With respect to any and all claims instituted by Third Parties for patent infringement involving the
manufacture, use, offer for sale or sale of an Inspire Licensed Product in the Field in the Territory during the Term, Inspire shall promptly notify InSite of such claim and the Parties shall discuss in good faith such infringement and determine the
best course of action. If the Parties cannot agree on the best course of action after such good faith discussions and Inspire in good faith believes that the claim is significant and adverse to the manufacture, use, offer for sale or sale of an
Inspire Licensed Product in the Field in the Territory during the Term, then Inspire may proceed with what it deems to be the best course of action in its good faith judgment under the terms of this provision (either this course of action or the
agreed upon course of action will be referred to herein as “Course of Action”). Except for any such claims for which InSite is obligated to indemnify Inspire under Section 9.2, Inspire shall have the right, but not be
obligated, at its sole discretion, on its own behalf, to pursue any Course of Action. InSite agrees to be joined as a party if necessary to pursue any Course of Action and shall provide all reasonable cooperation, including any necessary use of its
name, required for such Course of Action. Inspire shall have sole control of any such Course of Action, including without limitation any associated settlement or compromise; provided, however, that (i) Inspire shall keep InSite informed and
consult with InSite with respect to any such Course of Action and (ii) Inspire shall not settle or compromise any such action or proceeding or enter into any agreement or consent order for the settlement or compromise thereof without the prior
written consent of InSite, which consent shall not be unreasonably withheld. 
 (b) Step-in Right for InSite. If, prior to the
expiration of three (3) months from said claim being brought, or such sooner period as may be necessary to appropriately respond to said claim, Inspire has not elected to pursue any Course of Action, or if Inspire shall notify InSite at any
time prior thereto of its intention not to pursue any Course of Action, then InSite shall have the right, but not be obligated, to defend and control such action or proceeding. Inspire shall provide all reasonable cooperation required to defend such
claim, including any necessary use of its name. InSite shall have sole control of any such defense and all negotiations for its settlement or compromise; provided, however, that (i) InSite shall keep Inspire informed and consult with Inspire
with respect to any such Course of Action and (ii) InSite shall not settle or compromise any such suit or enter into any agreement or consent order for the settlement or compromise thereof without the prior written consent of Inspire, which
consent shall not be unreasonably withheld. 
  

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 (c) Costs and Expenses from Defending an Infringement Action. Inspire may offset its out-of-pocket
costs, losses and expenses incurred in connection with any Course of Action described in this Section 11.6, including without limitation, the fees and expenses of counsel, against any Inspire Royalties or Minimum Royalties or the Milestone
Payment due under this Agreement. Offsets for such costs and expenses may be applied in any calendar quarter or several calendar quarters until the application of such costs and expenses in their entirety. 
 ARTICLE 12 
 MISCELLANEOUS

 12.1 Consideration. The Parties acknowledge that each of the licenses and rights granted by InSite in Article 2 and each of the provisions of
this Agreement for efforts or assistance by InSite and access to InSite Intellectual Property and Pfizer Patent Rights, individually and collectively, constitute good, valuable, and sufficient consideration for each and all of the fees and payments
called for hereunder and for each and all of the other obligations of Inspire and its Affiliates and sublicensees; and the Parties further acknowledge that the individual and collective rights under and access to InSite Licensed Patents, InSite
Trademarks, InSite Know-How, and InSite Formulation Know-How renders the way in which those fees and payments hereunder are determined, and their duration, appropriate and desirable as a matter of convenience. 
 12.2 Assignment. This Agreement may not be assigned or otherwise transferred (in whole or in part, whether voluntarily, by operation of law or otherwise) by
either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld); provided, however, that such consent shall not be required in connection with (a) assignment or transfer to an Affiliate of
the Party; (b) a merger, consolidation or reorganization of the Party, (c) a sale or transfer of all or substantially all of the voting stock, or all or substantially all of the assets, of the Party, or (d) a sale or transfer by the
Party of all or substantially all of the assets of the Party with respect to its program related to Subject Products. Notwithstanding the foregoing, any such assignment or transfer to an Affiliate shall not relieve the assigning Party of its
responsibilities for performance of its obligations under this Agreement. The rights and obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties. Any
attempted assignment not in accordance with this Agreement shall be void. 
 12.3 Further Actions. Each Party agrees to execute, acknowledge and
deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 
 12.4 Notices. Notices to InSite shall be addressed to: 
  

			
		 	InSite Vision Incorporated
		 	965 Atlantic Avenue
		 	Alameda, California 94501
		 	Attention: Chief Executive Officer
		 	Facsimile No.: 510-865-5700

  

 53 

			
	With a copy to:	 	O’Melveny & Myers LLP
		 	2765 Sand Hill Road
		 	Menlo Park, California 94025
		 	Attention: Tim Curry, Esq.
		 	Facsimile No.: 650-473-2601
	
	Notices to Inspire shall be addressed to:
		
		 	Inspire Pharmaceuticals, Inc.
		 	4222 Emperor Boulevard, Suite 200
		 	Durham, North Carolina 27703
		 	Attention: General Counsel
		 	Facsimile No.: 919-941-9797
		
	With a copy to:	 	Smith, Anderson, Blount,
		 	Dorsett, Mitchell & Jernigan, L.L.P.
		 	2500 Wachovia Capitol Center
		 	Raleigh, North Carolina 27601
		 	Attention: Christopher Capel
		 	Facsimile No.: 919-821-6800

 Either Party may change the address to which notices shall be sent by giving notice to the other Party in the
manner herein provided. Any notice required or provided for by the terms of this Agreement shall be in writing and shall be (i) sent via a reputable overnight courier service, or (ii) sent by facsimile transmission, in each case properly
addressed in accordance with the paragraphs above. The effective date of any notice shall be the actual date of receipt by the Party receiving the same. 
 12.5 Amendment. No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized representative of each Party. 
 12.6 Waiver. No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in
writing expressly waiving such provision and signed by a duly authorized officer of the waiving Party. 
 12.7 Counterparts; Facsimile Signatures.
This Agreement may be executed in counterparts and such counterparts taken together shall constitute one and the same agreement. This Agreement may be executed by facsimile signatures, which signatures shall have the same force and effect as
original signatures. 
  

 54 

 12.8 Descriptive Headings. The descriptive headings of this Agreement are for convenience only, and shall be of no
force or effect in construing or interpreting any of the provisions of this Agreement. 
 12.9 Governing Law; Dispute Resolution. This Agreement shall
be governed and construed in accordance with the laws of the State of New York, without giving effect to any choice of law provisions thereof. Prior to bringing a legal action against the other Party, such dispute shall be separately negotiated by
the Parties hereto in good faith and all reasonable efforts undertaken to settle amicably such matters before resorting to further legal recourse, as follows: upon the occurrence of a dispute between the Parties, including, without limitation, any
breach of this Agreement or any obligation relating thereto, or any dispute with respect to whether a product is an Inspire Licensed Product, the matter shall be referred first to the officers of InSite and Inspire having responsibility for the
subject matter of the dispute, or their designees. The officers, or their designees, as the case may be, shall negotiate in good faith to resolve such dispute in a mutually satisfactory manner for up to thirty (30) days. If such efforts do not
result in mutually satisfactory resolution of the dispute, the matter shall be referred to the chief executive officers of InSite and Inspire, or their designees. The chief executive officers, or their designees, as the case may be, shall negotiate
in good faith to resolve such dispute in a mutually satisfactory manner for up to thirty additional (30) days, or such longer period of time to which the chief executive officers may agree. 
 12.10 Severability. If any provision hereof should be held invalid, illegal or unenforceable in any respect in any jurisdiction, the Parties hereto shall use
reasonable efforts to substitute, by mutual written consent, valid provisions for such invalid, illegal or unenforceable provisions which valid provisions in their economic effect are sufficiently similar to the invalid, illegal or unenforceable
provisions that it can be reasonably assumed that the Parties would have entered into this Agreement with such valid provisions. In case such valid provisions cannot be agreed upon, the invalid, illegal or unenforceable provisions of this Agreement
shall not affect the validity of this Agreement as a whole, unless the invalid, illegal or unenforceable provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into
this Agreement without the invalid, illegal or unenforceable provisions. 
 12.11 Entire Agreement of the Parties. This Agreement hereby, together
with the Trademark License Agreement and the Schedules and Exhibits hereto and thereto, constitutes and contains the complete, final and exclusive understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations,
correspondence, understandings and agreements whether oral or written, between the Parties respecting the subject matter hereof and thereof. 
 12.12
Independent Parties. The relationship between the Parties created by this Agreement is one of independent contractors and is not a joint venture, partnership or any similar arrangement. Neither Party shall have the power or authority to bind
or obligate the other except as expressly set forth in this Agreement. 
 12.13 Accrued Rights; Surviving Obligations. Unless explicitly provided
otherwise in this Agreement, termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit to any Party prior to such 

  

 55 

 
termination, relinquishment or expiration, including damages arising from any breach hereunder. Such termination, relinquishment or expiration shall not
relieve any Party from obligations which are expressly indicated to survive termination or expiration of the Agreement. Without limiting the foregoing, the obligations and rights set forth in Sections 2.1(e), 5.7, 6.2, 10.5, 10.6, and Articles 1 (to
the extent required to enforce other surviving rights or obligations), 8, 9 and 12 hereof shall survive the termination or expiration of this Agreement. 
 12.14 Certain Remedies. Each Party acknowledges and agrees that the other Party would be irreparably damaged if any of the provisions of this Agreement (other than provisions involving the payment of money) are not performed by a
Party in accordance with their specific terms, and that any breach of, or failure to perform or comply with, this Agreement by a Party could not be adequately compensated in all cases by monetary damages alone. Accordingly, in addition to any other
right or remedy to which a Party may be entitled at law or in equity, it shall be entitled to enforce any provision of this Agreement (other than provisions involving the payment of money) by a decree of specific performance and to temporary,
preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without posting any bond or other undertaking. 
 12.15 Expenses. Unless otherwise provided herein, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party that shall have incurred
the same and the other Party shall have no liability relating thereto. 
 12.16 No Third Party Beneficiaries. No person or entity other than the
Parties hereto and their respective Affiliates, successors and permitted assigns shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement. 
 12.17 No Strict Construction. This Agreement has been prepared jointly and shall not be strictly construed against either Party. 
 [Signature Page Immediately Follows] 
  

 56 

 IN WITNESS WHEREOF, duly authorized representatives of the Parties have duly executed this Agreement as of the Effective
Date. 
  

			
	INSITE VISION INCORPORATED
		
	By:	 	 /s/ S. Kumar Chandrasekaran

	Name:	 	S. Kumar Chandrasekaran
	Title:	 	CEO
	
	INSPIRE PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Christy L. Shaffer

	Name:	 	Christy L. Shaffer
	Title:	 	President & CEO

 SIGNATURE PAGE TO LICENSE AGREEMENT 
  

 57 

 Schedule 1 
 InSite Licensed Patents 
 DuraSite Patent Rights: 
 [***] 
 AzaSite Patent Rights: 
 U.S. Patent Nos. 6,239,113; 6,569,443, 7056,893 
 [***] 
 Columbia Patent Rights: 
 [***] 
 Container Patent Rights: 
 [***] 
 Pfizer Patent Rights: 
 U.S. Patent No. 6,861,411 
 [***] 
  
 *Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 Schedule 1.24 
 InSite Trademarks 
 Trademarks 
 U.S.: 
 DuraSite 
 DuraSite®
US Trademark Number: 1769077 
 AzaSite 
 AzaSiteTM US Trademark Application Number: 78/426,374 
 Canada:

 DuraSite 
 DuraSite® Canadian Registration Number 432299 
 AzaSite 
 AzaSiteTM Canadian Trademark Application Number 1325128

 Domain Name 
 www.AzaSite.com 

 Schedule 2.3(b) 
 AzaSite Trademark Assignment Agreement 
 (See attached document) 

 ASSIGNMENT OF TRADEMARKS 
 This ASSIGNMENT OF TRADEMARKS (this “Assignment”) is dated and made as of
                    , 2007, by and between InSite Vision Incorporated, a Delaware corporation (“Assignor”), and Inspire
Pharmaceuticals, Inc., a Delaware corporation (“Assignee”). 
 RECITAL 
 Assignee and Assignor are parties to a License Agreement dated as of February 15, 2007. In accordance therewith, Assignor desires to transfer and
assign to Assignee, and Assignee desires to accept the transfer and assignment of, all of Assignor’s right, title and interest in, to and under Assignor’s registered and unregistered trademarks with respect to AzaSite [AzaSite Plus to
be added as applicable] in the United States of America, and the territories and possessions thereof, and all registrations and registration applications associated therewith, including without limitation any and all of the foregoing listed on
Schedule A annexed hereto and incorporated herein by reference (all of the foregoing being referred to herein as the “Marks”). 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor does hereby irrevocably and unconditionally transfer and assign to Assignee, and Assignee does hereby accept such
transfer and assignment, all of Assignor’s right, title and interest in, to, and under (i) the Marks, together with the goodwill associated therewith and which is symbolized thereby, and any and all renewals and extensions thereof that may
hereafter be secured, now or hereafter in effect, and (ii) all claims and causes of action for damages and other relief by Assignor by reason of all past and future infringements, dilutions, and other violations of any and all rights under such
Marks along with Assignor’s right to sue under such claims and to collect and enjoy damages, benefits, and other remedies resulting therefrom, all the foregoing to be held and enjoyed by Assignee, its successors and assigns from and after the
date hereof as fully and entirely as the same would have been held and enjoyed by Assignor had this Assignment not been made. 
 Assignor
agrees to assist Assignee by executing such other instruments and taking such other actions as requested by Assignee to vest sole and exclusive ownership of the Marks in Assignee’s name and to otherwise give full effect to the rights granted to
Assignee hereunder. 
 Assignor hereby authorizes and requests the Director of the U.S. Patent and Trademark Office, and the similar
authorities in all trademark, intellectual property, or other offices where any of the registration applications included in the Marks have been or may be filed, to issue any registrations arising from said applications to Assignee for its sole use
and advantage; and for the use and advantage of its legal representatives and assigns, to the full end of the term, and any extensions thereof, for which such registrations may be granted, as fully and entirely as the same would have been held by
Assignor had this Assignment not been made. 
 Assignor hereby authorizes Assignee to file this Assignment and any other documents relating
thereto with the U.S. Patent and Trademark Office and the trademark, intellectual property, or other offices where any registrations or registration applications for Marks have been or may be filed or issued for purposes of having the Assignment
recorded therein and to place sole and exclusive right, title, and interest in and to such Marks in the name of Assignee. 
 This Assignment
is effective as of                     , 2007. 

 Except to the extent that federal law preempts state law with respect to the matters covered hereby, this
Assignment shall be governed and construed in accordance with the laws of the State of New York, without giving effect to any choice of law provisions thereof. 
 IN WITNESS WHEREOF, each party has caused its duly authorized officer to execute this Assignment as of the date set forth below. 
  

			
	InSite Vision Incorporated
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	Inspire Pharmaceuticals, Inc.
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 SCHEDULE A 
 AzaSite 
 AzaSiteTM US Trademark Application Number: 78/426,374 
 [AzaSite Plus to be added as applicable.] 

 Schedule 3.1(a) 
 Final Audited Study Reports 
 [***] 
  
 *Indicates that certain information contained herein has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Schedule 3.1(c) 
 Data and Information Related to AzaSite 
 All data supplied in NDA-50-810 and Amendments to 50-810 which has
been supplied to Inspire 

 Schedule 4.3 
 Wire Transfer Instructions for Redemption Amount 
  

			
	Bank:	 	[***]
	ABA #:	 	[***]
	Credit Account #:	 	[***]
	Acct Name:	 	[***]
	Reference:	 	[***]
	Attn:	 	[***]

  
 *Indicates that certain information
contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Schedule 5.3(a) 
 Minimum Royalties 
  

			
	 Minimum Royalty Period
	  	 Required Minimum Royalty for Period (US$)

	 First Minimum Royalty Period:
	  	[***]
		
	 Second Minimum Royalty Period:
	  	[***]
		
	 Third Minimum Royalty Period:
	  	[***]
		
	 Fourth Minimum Royalty Period:
	  	[***]
		
	 Fifth Minimum Royalty Period:
	  	[***]

  
 *Indicates that certain information
contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Schedule 5.5 
 Wire Transfer Instructions 
  

			
	Bank:	 	[***]
	ABA #:	 	[***]
	Credit Account #:	 	[***]
	Acct Name:	 	[***]
	Attn:	 	[***]

  
 *Indicates that certain information
contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

 Schedule 8.3 
 Scientific Publications 
 Abstracts and Articles: 
  

	1.	Ocular Bioavailability and Systemic Levels of an Ophthalmic Formulation of Azithromycin, ISV-401. E.C. Si, L.M. Bowman, S.D. Roy. Invest Ophthalmol Vis Sci. 2003. E—Abstract
1461. Presented at: The Association for Research in Vision and Ophthalmology, Monday, May 5, 2003. 

  

	2.	A Randomized Trial Assessing Microbial Eradication and Clinical Efficacy of 1% Azithromycin Ophthalmic Solution vs. Tobramycin in Pediatric and Adult Subjects with Bacterial
Conjunctivitis. M. B. Abelson, E. E. Protzko, A. M. Shapiro, AzaSite Clinical Study Group. Invest Ophthalmol Vis Sci. 2006. E—Abstract 3589. Presented at: The Association for Research in Vision and Ophthalmology, Wednesday, May 3,
2006. 

  

	3.	A Randomized Trial Assessing Safety and Tolerability of 1% Azithromycin Ophthalmic Solution vs. Tobramycin in Pediatric and Adult Subjects with Bacterial Conjunctivitis. E. E.
Protzko, M.B. Abelson, A.M. Shapiro, AzaSite Clinical Study Group. Invest Ophthalmol Vis Sci. 2006. E—Abstract 4958 Presented at: The Association for Research in Vision and Ophthalmology, Thursday, May 4, 2006.

  

	4.	Safety and Tolerability of Azithromycin 1% Eye Drops as Anti-infective Therapy for Bacterial Conjunctivitis. W. Heller, M.B. Abelson, A.M. Shapiro, The AzaSite Clinical Study Group.
Presented at: The Annual Meeting of the American Academy of Ophthalmology, November 11-14, 2006. 

  

	5.	Efficacy of Azithromycin 1% Eye Drops vs. Vehicle as First-Line Therapy for Bacterial Conjunctivitis. M.B. Abelson, A.M. Shapiro, W. Heller, The AzaSite Clinical Study Group.
Presented at: The Annual Meeting of the American Academy of Ophthalmology, November 11-14, 2006. 

	 6.
	 DuraSite as a Drug Delivery Platform. M.H. Friedlaender, L. Bowman, E. Si Presented at: The Annual Meeting of the
Association for Ocular Pharmacology and Therapeutics 8th Scientific Meeting, February 9-11, 2007. 

  

	7.	Frequent Dosing with Topical 1% Azithromycin is Effective in Reducing Azithromycin-Resistant Pseudomonas aeruginosa Colony Counts in a NZW Rabbit Model. K.A. Yates, E.G.
Romanowski, R.P. Kowalski, F.S. Mah, Y.J. Gordon. Accepted at: The Association for Research in Vision and Ophthalmology 2007. 

  

	8.	Development of a Commercial Eye Drop Formulation of Azithromycin. L.M. Bowman, E. Si, J. Pang, M. Friedlaender Accepted at: The Association for Research in Vision and
Ophthalmology 2007. 

  

	9.	Phase 3 Safety Comparisons for 1.0% Azithromycin in a Polymeric Mucoadhesive Eyedrop vs. 0.3% Tobramycin Eyedrops for Bacterial Conjunctivitis. Protzko E., Bowman L., Shapiro A.,
Abelson M.B. and AzaSite Study Group. Invest Ophthalmol Vis Sci. in press. 

  

	10.	“Study results promising: Antibiotic product treats bacterial conjunctivitis effectively” Ophthalmology Times, Nov 2002: Advanstar Communications. Article
Link. 

  

	11.	Groves N, Abelson MB “Antibiotic combats acute bacterial conjunctivitis” Ophthalmology Times April 2003: Advanstar Communications. Article Link.

  

	12.	“Patent covers all azalide use for ocular infections” Ophthalmology Times, May 2003: Advanstar Communications. Article Link 

  

	13.	Abelson M.B. Chapin M., Plumer A. “Ophthalmic drugs: What’s in the pipeline?” Ophthalmology Times, May 2005: Advanstar Communications. Article Link

  

	14.	Lines L., Abelson M.B. “The Ophthalmic Pharmaceutical Pipeline Expands” Ophthalmology Times, Jul 2006: Advanstar Communications. Article Link

  

	15.	Guttman C. “Long-acting azithromycin safe, effective in treating bacterial conjunctivitis.” Ophthalmology Times, Jul 2006: M.B. Abelson (editor) Advanstar
Communications. Article Link 

  

 70 

	16.	Donnenfeld E. “Azithromycin with DuraSite offers stability, increased corneal contact.” Ocular Surgery News, November 2006: vol. 24 issue 22. Slack Incorporated.

  

	17.	Abelson M.B. “Pearls from ARVO—allergies, AMD and therapeutics” Eye World August 2006: Lisa Lines (Editor). ASCRS Ophthalmic Services Corp. Article
Link. 

  

	18.	Realini T. “New Topical Broad Spectrum Antibiotic on the Horizon: Phase 3 Trial of Azithromycin Yields Promising Results.” Eye World, February 2007: Vol. 12;2:20-21
A. Shapiro and W.H. Heller (editors) : ASCRS Ophthalmic Services Corp. Current Issue Main Page 

 Submitted Chapters and Manuscripts:

  

	19.	Donnenfeld E., Friedlaender M.H. “Azithromycin in Ophthalmology: A New Therapy” in Clinical Applications of Antibiotics and Antiinflammatory Drugs in Ophthalmology
A. Garg, E. Donnenfeld, J. Shepard, M. Friedlaender (Editors). M/S Jaypee Brothers Medical Publisher Pvt. Ltd, New Delhi, Publishers. 2007 

  

	20.	Friedlaender M.H., Protzko E. 1% Azithromycin in DuraSite: Clinical Development of Topical Azalide Anti-Infective for Ocular Surface Therapy. Clinical Ophthalmology. 2007.

  

	21.	A Randomized Trial Assessing the Clinical Efficacy and Microbial Eradication of 1% Azithromycin Ophthalmic Solution vs. Tobramycin in Adult and Pediatric Subjects with Bacterial
Conjunctivitis Abelson M.B., Bowman L., Shapiro A., Protzko E. and AzaSite Study Group. Clinical Ophthalmology 

 Manuscripts in
Progress 
  

	22.	Abelson M.B., Bowman L., Shapiro A., Heller W.H. and AzaSite Study Group “Efficacy and Safety of Topical 1% Azithromycin in DuraSite vs. Vehicle for Bacterial
Conjunctivitis”

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