Document:

Agreement to License and Purchase

 

Exhibit 10.100

 

 

AGREEMENT TO LICENSE AND PURCHASE

dated March 2, 2005

by and among

ANDRX LABS, LLC,

the other

SELLER ENTITIES signatory hereto

and

FIRST HORIZON PHARMACEUTICAL CORPORATION

 

 

 

 

AGREEMENT TO LICENSE AND PURCHASE

     THIS AGREEMENT, dated March 2, 2005, is entered into by and between Andrx Labs, LLC, a
Delaware limited liability company, Andrx Laboratories, Inc., a Mississippi corporation, Andrx
Laboratories (NJ), Inc., a Delaware corporation, and Andrx EU Ltd., a United Kingdom company (each,
a “Seller” and collectively, the “Seller Entities”), and First Horizon Pharmaceutical Corporation,
a Delaware corporation (“Buyer”).

     WHEREAS, the Seller Entities own assets used in the business relating to the following product
lines (as more fully described herein, collectively, the “Seller Product Lines” or “Products”):

     (a) the Altoprev brand products; and

     (b) the Fortamet brand products.

     WHEREAS, subject to the terms and conditions set forth herein, Seller desires to cause the
sale, assignment and transfer to Buyer, and Buyer desires to purchase, assume and take assignment
of certain assets, properties, rights and liabilities related to the Seller Product Lines.

     WHEREAS, the Seller will retain and license to Buyer certain patent and other intellectual
property rights relating to the Products pursuant to the License Agreement (as defined below), with
the exception of the Altoprev and Fortamet trademarks which will be sold to Buyer.

     WHEREAS, the Seller will retain all rights and assets relating to the manufacture of the
Products, and Buyer will engage Seller to manufacture the Products for Buyer pursuant to the Supply
Agreement (as defined below).

     NOW, THEREFORE, in consideration of the premises and mutual covenants, agreements and
provisions herein contained, the parties hereto agree as follows:

ARTICLE 1.

DEFINITIONS

     1.1. Definitions. The following terms have the following meanings when used herein:

     “Accounts Receivable” shall mean accounts receivable of Seller arising from the sale of the
Products prior to the Closing Date which have not been collected as of the Closing Date.

     “Affiliate” means with respect to any Person, any other Person directly or indirectly
controlling or controlled by, or under direct or indirect common control with, such Person.

     “Agreement” means this Agreement to License and Purchase, including all Schedules hereto, as
it may be amended from time to time in accordance with its terms.

     “Altoprev Amount” has the meaning set forth in Section 3.1.2.

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     “Altoprev Generic Product” means a generic Product that is bioequivalent to the Altoprev
Product and legally authorized for sale.

     “Altoprev Products” means the Altoprev brand Products.

     “Alzheimer’s Field of Use” means the administration of lovastatin sodium for the treatment or
prevention of Alzheimer’s disease or related APP processing disorders.

     “ANDA” means abbreviated new drug application.

     “Assignment and Assumption Agreement” means the Assignment and Assumption Agreement and Bill
of Sale in the form of Exhibit A.

     “Assumed Contracts” has the meaning set forth in Section 2.3.1.

     “Business Day” means a day other than a Saturday or a Sunday or other day on which commercial
banks in New York are authorized or required by law to close.

     “Buyer” has the meaning set forth in the recitals.

     “Buyer Product Liability Claims” shall mean any Product Liability Claims that do not
constitute Seller Product Liability Claims.

     “Change in Control” shall mean the occurrence of any of the following events:

     (i) The acquisition by any individual, entity, or group of beneficial ownership (which
for purposes of clauses (i) and (ii) below shall have the meaning ascribed to such term in
Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of fifty percent (50%) or
more of the combined voting power of the Company’s then outstanding securities with respect
to the election of directors of the Company; or

     (ii) The consummation of a reorganization, merger, or consolidation of the Company or
sale or other disposition of all or substantially all of the assets of the Company (a
“Corporate Transaction”); excluding, however, a Corporate Transaction pursuant to
which all or substantially all of the individuals or entities who are the beneficial owners
of the outstanding shares of Common Stock immediately prior to the Corporate Transaction
will beneficially own, directly or indirectly, more than fifty percent (50%) of the
outstanding securities entitled to vote for the election of directors of such entity.

     For purposes of this definition of Change of Control, “Company” shall mean any or all of the
Seller Entities, Andrx Corporation and any other entity which directly or indirectly controls the
Seller Entities.

     “Closing” refers to the closing of the transactions described in this Agreement.

     “Closing Date” has the meaning set forth in Section 4.1.

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     “Closing Payment” has the meaning set forth in Section 3.1.3.

     “Confidentiality Agreement” means that certain Confidentiality Agreement by and between Andrx
Corporation and First Horizon Pharmaceutical Corporation, dated as of January 6, 2005.

     “Conforming Products” has the meaning set forth in the Supply Agreement.

     “Contracts” shall mean all contractual rights and obligations and leasehold interests under
any agreement, arrangement or instrument, including open purchase and sales orders, marketing
contracts, advertising contracts and promotional programs.

     “Disclosure Schedule” means collectively the Schedules referred to in Article 5.

     “FDA” means the United States Food and Drug Administration or any successor governmental
agency performing similar functions.

     “Federal” refers to the United States federal government.

     “Force Majeure Event” shall have the meaning set forth in the Supply Agreement.

     “Fortamet Amount” has the meaning set forth in Section 3.1.1.

     “Fortamet Generic Product” means a generic product that is bioequivalent to the Fortamet
Product and legally authorized for sale.

     “Fortamet Products” means the Fortamet brand products.

     “GAAP” means United States generally accepted accounting principles as consistently applied in
accordance with past practice by Seller or Buyer, as the context indicates.

     “Governmental or Regulatory Authority” shall mean: (a) any domestic or foreign national,
federal, provincial, state, municipal or other governmental body, (b) any international or
multi-lateral body, (c) any subdivision, ministry, department, secretariat, bureau, agency,
commission, board, instrumentality or authority of any of the foregoing governments or bodies,
including, without limitation, the FDA, (d) any quasi-governmental or private body exercising any
regulatory, expropriation or taxing authority under or for any of the foregoing governments or
bodies, or (e) any domestic, foreign, international, multi-lateral, or multi-national judicial,
quasi-judicial, arbitration or administrative court, grand jury, tribunal, commission, board or
panel.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “Holdback Amount” has the meaning set forth in Section 3.2.1.

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     “Independent Accounting Firm” means an independent internationally recognized accounting firm
with no material relationship to either of the parties, chosen by agreement of the parties, which
agreement shall not be unreasonably withheld.

     “Intellectual Property” means all of the following in any jurisdiction throughout the world:
(a) all patents and patent applications, together with all divisions, reissuances, continuations
and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, slogans, trade
names, and Internet domain names, including all goodwill associated therewith, and all
applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all
copyrights, and all applications, registrations, and renewals in connection therewith, (d) all
trade secrets and confidential business information (including ideas, research and development,
know-how, formulas, compositions, manufacturing and production processes, standard operating
procedures and techniques, technical data, designs, drawings, specifications, customer and supplier
lists, pricing and cost information, and business and marketing plans and proposals), and (e) all
advertising and promotional materials.

     “Inventory” and “Inventories” means Product inventories of finished goods (i.e., packaged for
retail sale) and samples.

     “Knowledge” means, as related to any Seller, the actual knowledge, after reasonable inquiry
into the areas of their respective functions, of Tom Rice, Angelo Malahias, Steve Glover, Anne
Kelly and Jennifer Spokes.

     “Law” or “Laws” shall mean: (a) all constitutions, treaties, laws, statutes, codes,
ordinances, orders, decrees, rules, regulations, and municipal by-laws, whether domestic, foreign
or international, (b) all judgments, orders, writs, injunctions, decisions, rulings, decrees and
awards of any Governmental or Regulatory Authority, and (c) all policies, practices and guidelines
of any Governmental or Regulatory Authority.

     “License Agreement” means the License Agreement in the form of Exhibit B.

     “Licensed Intellectual Property” means the NDAs pertaining to the Products, the patent rights
(registered and unregistered), know-how, trade secrets and other Technical Information relating to
the Products more particularly set forth in, and licensed pursuant to, the License Agreement.

     “Licenses and Permits” shall mean all permits, licenses, approvals, registrations,
authorizations and indicia of authority and pending applications for any thereof issued by any
Governmental or Regulatory Authority, including NDAs, SNDAs and other FDA and other governmental
approvals relating to the Products.

     “Loss” or “Losses” has the meaning set forth in Section 10.1.1.

     “Manufacturing Requirements” has the meaning set forth in the Supply Agreement.

     “Marketing Media Materials” shall mean all promotional and advertising materials, including
files, books, records and other written information as well as all videos, recordings,

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proofs and other masters held by advertising agencies and others, together with copyrights
related to the foregoing.

     “Material Adverse Effect” means a material adverse effect on the assets, operations or
financial condition of the business of Seller related to the Products or on the Products;
provided, that, for purposes of this Agreement, a Material Adverse Effect shall not include
effects resulting from events, changes or circumstances relating to (a) the industry or markets in
which the Products operate that are not unique to the Products, (b) the announcement or disclosure
of the transactions contemplated herein, (c) matters, facts or circumstances reflected on any
Schedule to this Agreement, or (d) any inability or failure of the Seller to manufacture Altoprev.

     “NDA” means a New Drug Application and related filings.

     “Net Sales” means the net sales of the Products by Buyer, determined in accordance with GAAP
consistently applied by Buyer in the performance of its Securities and Exchange Act of 1934
reporting obligations (e.g. 10-Q and 10-K filings), for the period in question, provided, that Net
Sales shall be calculated without giving effect to any deductions that are not reasonable and
customary in nature and amount. Net Sales outside of the United States shall be determined on the
basis of the United States dollar equivalent of the foreign currency in which such sales are
invoiced as such currency conversions are effected by Buyer in the ordinary course of business
consistent with GAAP.

     “Other Agreements” means, collectively, the Assignment and Assumption Agreement, the License
Agreement, the Trademark Rights Assignment Agreement, the Transition Services Agreement, Quality
Assurance Agreement and the Supply Agreement.

     “Person” means any individual, corporation, partnership, joint venture, limited liability
company, trust or unincorporated organization or government or any agency or political subdivision
thereof.

     “Prime Rate” means the prime commercial rate of interest as published in The Wall Street
Journal (U.S. Edition). Any change in the prime rate shall take effect at the opening of business
on the day published in The Wall Street Journal (U.S. Edition).

     “Proceedings” shall mean claims, suits, actions, investigations or proceedings.

     “Product Liability Claims” means any third party Proceedings involving any actual or alleged
death or bodily injury arising out of or resulting from the use of the Products.

     “Purchase Price” has the meaning set forth in Section 3.1.

     “Purchased Assets” has the meaning set forth in Section 2.1.

     “Quality Assurance Agreement” means the Quality Assurance Agreement in the form of Exhibit
C.

     “Regulatory Information” means (i) all information relating to or contained in the Licenses
and Permits relating to the Products and all dossiers and correspondence relating to the

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foregoing, (ii) testing and clinical data relating to the Products which is included in the
Purchased Assets or subsequently developed by Buyer or its Affiliates or successors, and (iii) all
other data and information relating to the Products which is included in the Purchased Assets or
subsequently developed by Buyer or its Affiliates.

     “Royalties” has the meaning set forth in Section 3.4.

     “Royalty Report” means a report prepared by Buyer with regard to Net Sales setting forth, by
country, by dosage strength, in accordance with GAAP, (a) aggregate U.S. Dollar amounts and units
invoiced, (b) sales discounts and other allowances, (c) trade commissions, discounts, refunds and
rebates (d) product returns, (e) the total amount of the relevant Net Sales and (f) the royalty
due. It is further agreed that, with regard to the Royalty Reports provided by Buyer for Net Sales
in the United States, the reductions set forth in the above item (c) shall be itemized to indicate
(i) Medicaid rebate expenses and (ii) managed care rebate expenses. Each Royalty Report shall
include the information required above for the relevant month and calendar year to date, as
applicable, and other information reasonably requested by Seller.

     “Sandoz Agreement” means the Termination Agreement dated October 24, 2001 and Amendment No. 1
thereto dated January 17, 2005 in each case by and among Andrx Laboratories (NJ), Inc., a Delaware
corporation as the owner of all assets and liabilities of the company formerly known as Andrx Labs,
Inc., Andrx Pharmaceuticals Inc., a Florida corporation, and Anda, Inc., a Florida corporation,
each of which is a subsidiary of Andrx Corporation, and Sandoz Inc. (f.k.a. Geneva Pharmaceuticals,
Inc.), a Colorado corporation.

     “Seller” means each of and any of the Seller Entities. As used herein, any reference to
Seller shall mean each Seller individually and all of the Seller Entities collectively. Any
representation, warranty, covenant, agreement or other obligation of Seller referred to herein
shall mean the joint and several representation, warranty, covenant, agreement of each of the
Seller Entities individually and all of the Seller Entities collectively.

     “Seller Entities” has the meaning set forth in the recitals.

     “Seller Product Liability Claims” means any Product Liability Claims (i) relating to Products
sold by Seller or its Affiliates (or other activities of Seller or its Affiliates) prior to the
Closing Date, or (ii) caused by Seller’s failure to supply Product that is in compliance with the
Manufacturing Requirements.

     “SNDA” means Supplemental New Drug Applications.

     “Supply Agreement” means the Manufacturing and Supply Agreement in the form of Exhibit
D for each of the Products.

     “Tax” or “Taxes” shall mean all taxes, charges, fees, duties, levies or other assessments,
including (without limitation) income, gross receipts, net proceeds, ad valorem, turnover, real and
personal property (tangible and intangible), sales, use, franchise, excise, value added, stamp,
leasing, lease, user, transfer, fuel, occupational, interest equalization, severance and employees’
income withholding, estimated unemployment and Social Security, which are imposed by the

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United States, or any state, local or foreign government or subdivision or agency thereof,
including any interest, penalties or additions to tax related thereto.

     “Takeda Arrangement” means that certain agreement between Takeda Chemical industries Ltd. and
Seller, as in effect on the date of this Agreement.

     “Tax Return” or “Tax Returns” means all returns, declarations, reports, statements, and other
documents required to be filed in respect of Taxes.

     “Technical Information” shall mean all information in the nature of know-how, trade secrets,
inventions, processes, designs, devices, and related information and documentation.

     “Trademark Rights” means, collectively, trademarks and trade names, all goodwill associated
therewith, and all applications, registrations, service marks, brands and renewals in connection
therewith.

     “Trademark Rights Assignment Agreement” means the Trademark Rights Assignment Agreement in the
form of Exhibit E.

     “Transition Services Agreement” means the Transition Services Agreement in the form of
Exhibit F.

ARTICLE 2.

PURCHASE AND SALE

     2.1. Agreement to Purchase and Sell Purchased Assets. Subject to the terms and
conditions contained herein, at the Closing Seller shall sell, transfer, assign and deliver and
cause to be sold, transferred, assigned and delivered to Buyer, and Buyer shall purchase and accept
from Seller, all right, title, and interest of the Seller Entities in the following assets,
properties and rights (collectively, the “Purchased Assets”):

     (a) The Trademark Rights described on Schedule 2.1(a);

     (b) The Marketing Media Materials relating exclusively to and used exclusively in the
Seller Product Lines;

     (c) All orders for finished good Products to the extent relating exclusively to the
Products and incurred in the ordinary course of Seller’s business (“Open Orders”); and

     (d) Inventories of the Products specified on Schedule 2.1(d).

     2.2. Excluded Assets. Notwithstanding anything herein to the contrary, the Purchased
Assets shall not include any of the assets, properties, rights and interests of any kind, wherever
located, whether tangible or intangible, real or personal of Seller that are not exclusively
related to and exclusively used in the Seller Product Lines including, without limitation, the
following:

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     (a) Accounts Receivable;

     (b) Raw materials and work in process relating to the Seller Product Lines;

     (c) The assets, properties, rights and interests set forth on Schedule 2.2(c);
and

     (d) The Licensed Intellectual Property.

     2.3. Liabilities and Obligations.

          2.3.1. Buyer shall assume any and all liabilities and obligations to the extent arising out of
the marketing and sale of the Seller Product Lines on or after Closing, including, without
limitation, the following (the “Assumed Liabilities”):

     (a) All liabilities and obligations (financial or otherwise) under agreements and
covenants listed on Schedule 2.3.1 (the “Assumed Contracts”) to the extent accruing
after Closing; and

     (b) liabilities and obligations relating to the Inventories of the Products sold by
Buyer after the Closing and not arising out of the failure to comply with the applicable
Manufacturing Requirements, including for returns, rebates and similar items, or out of the
storage, packaging or distribution thereof.

          2.3.2. The Buyer shall be solely responsible for any and all liabilities and obligations
relating to, arising from or caused by any Buyer Product Liability Claims.

          2.3.3. The Seller Entities shall retain any and all liabilities and obligations of the Seller
Entities which are not Assumed Liabilities, including, without limitation, all liabilities related
to the Seller Product Lines to the extent arising prior to Closing. Without limiting the
generality of the foregoing, the following shall be retained by the Seller Entities (the “Excluded
Liabilities”):

     (a) Any liability for infringement, misappropriation or violation of the Intellectual
Property rights of any Person to the extent such infringement, misappropriation or violation
occurs prior to Closing (For the avoidance of doubt, Excluded Liabilities will not include
liability for infringement, misappropriation or violation of Intellectual Property Rights of
any Person that occurs after the Closing, even if such liability arises from a continuation
of actions that occurred prior to Closing);

     (b) Any liability of any Seller Entity to employees or former employees of any Seller;

     (c) Any liability arising out of the Sandoz Agreement, whether or not terminated, the
Takeda Arrangement, or the agreement to be entered into by Seller relating to the
Alzheimer’s Field of Use;

     (d) Any liabilities or obligations (financial or otherwise) under the Assumed Contracts
to the extent accruing prior to closing;

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     (e) Any Seller Product Liability Claims; and

     (f) Any liability of any Seller Entity for returns, chargebacks, rebates, allowances or
credits (including rebates to social welfare systems and amounts paid to third parties on
account of rebate payments) to the extent relating to Products sold by the Seller prior to
the Closing.

     2.4. Post-Closing Accounts Receivable. Notwithstanding Sections 2.2 and 2.3, if and
to the extent that there are any Open Orders at the Closing, the parties agree that Buyer shall be
entitled to any and all accounts receivable with respect thereto. Seller shall, from and after the
Closing, instruct any purchasers of Open Orders that any and all payment with respect thereto shall
be remitted to Buyer. Should any such amount, however, be received by Seller, Seller shall
promptly remit such amount to Buyer.

     2.5. Records Retention. From and after the Closing, Buyer shall be entitled to obtain
and retain indefinitely copies of all books, documents, data and records related to regulatory
information and documentation of the Products, the Licenses and Permits, all dossiers and
correspondence, testing and clinical data and other data and information related to the Products.

     2.6. Other Agreements. Subject to the terms and conditions contained herein, at the
Closing, Buyer and Seller shall enter into the License Agreement for the license of the Licensed
Intellectual Property, the Supply Agreement, for the manufacture of the Products on an ongoing
basis, and each of the Other Agreements.

ARTICLE 3.

PURCHASE PRICE

     3.1. Purchase Price. The total purchase price for the sale of the Purchased Assets
and the license of the Licensed Intellectual Property shall be an amount equal to the Altoprev
Amount, plus the Fortamet Amount (the “Purchase Price”).

          3.1.1. The “Fortamet Amount” shall be equal to $50,000,000 and shall be paid in full at the
Closing.

          3.1.2. The “Altoprev Amount” shall be equal to $35,000,000, subject to the adjustment and the
payment terms provided in Section 3.2 below.

          3.1.3. The “Closing Payment” shall be an amount equal to the sum of (x) the Fortamet Amount,
plus (y) the Altoprev Amount, less (z) the Outstanding Holdback Amount (as defined
below) at the time of Closing.

     3.2. Altoprev Holdback. The Altoprev Amount shall be adjusted and paid to Seller as
follows: 

          3.2.1. Holdback Amounts. Subject to the payment obligations in Section 3.2.2 below
and the offsets and refunds in Section 3.2.3 below, Buyer shall retain (the “Holdback Amount”) the
Altoprev Amount in the following amounts for the specified dosages

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of Altoprev: (i) with respect to the 60 milligram Altoprev dosage, [xxxx]*; (ii) with respect
to the 40 milligram Altoprev dosage, [xxxx]*; and (iii) with respect to the 20 milligram Altoprev
dosage, [xxxx]*. The “Outstanding Holdback Amount” shall be equal to the Holdback Amount less any
payments made by Buyer to Seller pursuant to Section 3.2.2.

          3.2.2. Holdback Release.

     (a) Upon satisfaction of the Initial Trigger (as defined below) for any Altoprev
Product, Buyer shall promptly pay to Seller, in immediately available funds, two-thirds of
the Holdback Amount for such Altoprev Product.

     (b) Upon satisfaction of the Safety Stock Trigger (as defined below) for any Altoprev
Product, Buyer shall promptly pay to Seller, in immediately available funds, one-third of
the Holdback Amount for such Altoprev Product.

     (c) The “Initial Trigger” is deemed to occur when Seller has shipped Products to Buyer
in accordance with Schedule 3.2.2(c).

     (d) The “Safety Stock Trigger” is deemed to occur when Seller has shipped products to
Buyer in accordance with Schedule 3.2.2(d).

     (e) Any amounts paid by Buyer to Seller for the initial 30-day supply (i.e. the second
purchase order described on Schedule 3.2.2 (c)) of Altoprev Products pursuant to the Supply
Agreement (the “Supply Payments”) contemplated by subsection (c) above shall be credited
against the first (and if necessary so as to fully credit the Supply Payments, any
subsequent) payment made to Seller in connection with the Holdback Amount under this
Section 3.2.2.

     (f) Any Altoprev Products delivered to Buyer and which are to be included in the
determination of the “Initial Trigger” or “Safety Stock Trigger” pursuant to this Section
3.2.2, in addition to being Conforming Product, shall: (i) if such Product is delivered on
or prior to [xxxx]*, have an expiration date not earlier than [xxxx]* from the date such
Product is shipped, and (ii) if such Product is shipped subsequent to [xxxx]*, have an
expiration date not earlier than [xxxx]* from the date such Product is shipped.

          3.2.3. Offsets and Refunds.

          (a) If at any time after [xxxx]*, an Altoprev Product is Out of Stock for a period of
[xxxx]*, then the Holdback Amount for such Altoprev Product shall be reduced by [xxxx]*.
Such reduction shall be applied first to any portion of the Holdback Amount for such
Altoprev Product that has not been paid and any excess will be promptly refunded by Seller
to Buyer from the portion of such Holdback Amount that Buyer has paid Seller. The [xxxx]*
reduction or refund in this Section 3.2.3(a) shall be referred to herein as the “[xxxx]*”.

          (b) In addition to the payments and/or reductions made pursuant to Section 3.2.3(a)
above, if at any time after [xxxx]*, an Altoprev Product is Out of Stock for [xxxx]*, then
the Holdback Amount for such Altoprev Product (unadjusted for and in

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addition to any reduction pursuant to subsection (a) above) shall be reduced by
[xxxx]*. Such reduction shall be applied first to any portion of the Holdback Amount for
such Altoprev Product that has not been paid and any excess will be refunded by Seller to
Buyer from the portion of such Holdback Amount that Buyer has paid Seller. The [xxxx]*
reduction or refund in this Section 3.2.3(b) shall be referred to herein as the “[xxxx]*”.

          (c) In addition to the payments and/or reductions made pursuant to Sections 3.2.3(a)
and (b) above, if at any time after [xxxx]*, any Altoprev Product is Out of Stock for
[xxxx]*, then the Holdback Amount for such Altoprev Product (unadjusted for and in addition
to any reduction pursuant to subsections (a) and (b) above) shall be reduced by [xxxx]*
Such reduction shall be applied first to any portion of the Holdback Amount for such
Altoprev Product that has not been paid and any excess will be refunded by Seller to Buyer
from the portion of such Holdback Amount that Buyer has paid Seller. The [xxxx]* reduction
or refund in this Section 3.2.3(c) shall be referred to herein as the “[xxxx]*”.

          (d) In no event shall Seller be obligated to pay to Buyer under this Section 3.2.3 more
than the Holdback Amount actually received by Seller (taking into account the reduction for
the Supply Amounts) and, with respect to each Altoprev Product, more than such Altoprev
Product’s allocated portion of the Holdback Amount.

          (e) Notwithstanding anything to the contrary herein, each of the [xxxx]* in Sections
3.2.3(a), (b) and (c), respectively, shall be reduced pro rata on a daily basis over the
[xxxx]* period beginning on [xxxx]*.

          (f) For the purposes of this Section 3.2.3, “Out of Stock” means with respect to a
particular Altoprev Product that the top three wholesalers (currently AmeriSourceBergen,
Cardinal Health and McKesson) on average have less than two weeks of such Altoprev Product
in remaining inventory (based on the average demand for the prior four weeks according to
Buyer’s EDI feed data), provided, that such Altoprev Product will not be deemed to be Out of
Stock when such shortfall is the result of (i) sales by the three (3) major wholesalers
measured over the previous [xxxx]* (the “Base Period”) in excess of [xxxx]* of sales by such
wholesalers for [xxxx]* immediately preceding the Base Period according to Buyer’s EDI feed
data from the wholesalers, (ii) the failure of Buyer to order sufficient Altoprev Products,
or (iii) the failure of Buyer to deliver Altoprev Products received from Seller to its
wholesalers. Buyer shall provide Seller weekly reports setting forth the calculation
pursuant this paragraph (f) and the corresponding data (in written form) received from the
wholesalers as described above.

          (g) This Section 3.2 contains Buyer’s sole and exclusive remedy to the extent relating
to any failure to manufacture or supply Altroprev Products during the [xxxx]* following
Closing. Buyer understands and acknowledges that the Seller Entities have made no
representations or warranty as to their ability to manufacture Altroprev Products.

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     3.3. Consistent Treatment. The parties will (a) allocate the Purchase Price among the
Purchased Assets and the other property licensed pursuant to the License Agreement in accordance
with an allocation reasonably agreed to by Buyer and the Seller Entities, (b) treat and report the
transactions contemplated by this Agreement in all respects consistently for purposes of any Tax or
Tax Return, and (c) not take any action inconsistent with such obligation.

     3.4. Royalty Payments. Buyer shall also pay to Seller royalties (the “Royalties”) on
a quarterly basis on Net Sales of Fortamet and Altoprev determined as follows:

          3.4.1. Buyer shall pay to Andrx a monthly royalty of 8% of Net Sales of Fortamet in each
country worldwide until the occurrence of the first commercial sale of a Fortamet Generic Product
in such country upon which case the monthly royalty shall become $0.00.

          3.4.2. Buyer shall pay Andrx monthly royalty of 15% Net Sales of Altoprev in each country
worldwide until the occurrence of the first commercial sale of an Altoprev Generic Product in such
country upon which case the monthly royalty shall become $0.00.

          3.4.3. Within fifteen (15) days after the end of each month, Buyer shall deliver to Andrx a
Royalty Report of Net Sales for such month and, within thirty (30) days after the end of each
calendar quarter, shall make the payment of the applicable Royalties for such quarter.

          3.4.4. Buyer agrees to keep full and accurate records and supporting documentation regarding
its Net Sales for five (5) years from the end of the month in which the sales were invoiced.

          3.4.5. No more than twice each calendar year during the term for which Royalty Payments are
due and for two years thereafter, upon the written request of Seller, and with not less than ten
(10) days written notice, Buyer shall permit, at Seller’s expense, Seller and/or its accountant or
other representative to have access during normal business hours to such records of Buyer as may be
reasonably necessary to verify the accuracy of the Royalty payments to Seller. If Seller disagrees
with any calculation of the Royalty set forth in any Royalty Report, then the parties will meet and
reasonably negotiate with respect to such disagreement. If the parties are unable to resolve such
disagreement, either party may engage an Independent Accounting Firm to finally determine the
amount the Royalty in dispute. The Independent Accounting Firm shall be directed to provide the
parties with a written report stating whether and to what extent and underpayment was made and a
summary of their calculations within forty-five (45) days of their engagement.

          3.4.6. If the Independent Accounting Firm concludes that an underpayment was made, then the
Buyer shall pay the amount due, plus interest thereon at the Prime Rate, within ten (10) days of
the day the Independent Account Firm’s written report is delivered to the parties. The Independent
Accounting Firm’s determination shall be final and binding upon the parties. Buyer shall pay the
fees and expenses charged by the Independent Accounting Firm if the Independent Accounting Firm
determines that Buyer has underpaid Seller by more than 5%

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of amounts owed; otherwise, Seller shall pay the fees and expenses charged by the Independent
Accounting Firm.

     3.5. Manner of Payments. All sums due under this Agreement shall be payable in United
States dollars by bank wire transfer of immediately available finds to such bank account(s) as
Seller shall designate. If Buyer shall fail to make a timely payment pursuant to this Agreement,
interest shall accrue on the past due amount at an annual rate equal to the Prime Rate, effective
from the date such payment is due for the first thirty (30) days during which such payment is
delinquent, and then at an annual rate equal to the Prime Rate +2% thereafter until paid in full,
calculated through and including the date of payment on the basis of 360-day years.

ARTICLE 4.

CLOSING

     4.1. Closing Date. The Closing hereunder shall take place at the office of Seller, at
12:00 noon local time upon the later of: (i) March 31, 2005 or (ii) three days after approval under
the HSR Act or termination of any applicable waiting period thereunder (as the case may be), or at
such other place, time and date as Seller and Buyer may agree (any such date, the “Closing Date”).

     4.2. Transactions at Closing. At the Closing, subject to the terms and conditions
hereof:

          4.2.1. Transfer of Assets. Seller shall: (i) transfer and convey or cause to be
transferred and conveyed to Buyer all of the Purchased Assets, (ii) license to Buyer all of the
Licensed Intellectual Property, (iii) deliver to Buyer the Other Agreements to which it is a party,
and (iv) deliver to Buyer the certificates required by Sections 8.2.1 and 8.2.2.

          4.2.2. Payment of Purchase Price and Assumption of Assumed Liabilities. In
consideration for the transfer of the Purchased Assets, and the license of the Licensed
Intellectual Property, Buyer shall (i) pay to Seller the Closing Payment by electronic bank
transfer in immediately available funds directly to the accounts specified by Seller, (ii) deliver
to Seller the Other Agreements to which it is a party, and (iii) assume the Assumed Liabilities.
In addition, Buyer shall deliver the certificates required by Sections 8.1.1 and 8.1.2.

ARTICLE 5.

REPRESENTATIONS AND WARRANTIES OF THE SELLER ENTITIES

     Each Seller Entity, jointly and severally, represents and warrants to Buyer on the date hereof
and on and as of the Closing Date, in each case as though the Closing Date were substituted for the
date of this Agreement, that, except as set forth on the Disclosure Schedule:

     5.1. Organization. Each Seller Entity is an entity duly organized and validly
existing in good standing under the laws of its jurisdiction of organization, duly qualified to
transact business as a foreign entity in such jurisdictions where the nature of the Seller Product
Lines makes such qualification necessary, except as to jurisdictions where the failure to qualify
would

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not reasonably be expected to have a Material Adverse Effect and with all requisite corporate
power and authority to own, lease and operate the business relating to the Seller Product Lines as
now being conducted.

     5.2. Due Authorization. Each Seller Entity has full corporate, limited liability
company or other entity power (as the case may be) and authority to execute, deliver and perform
this Agreement and the Other Agreements to which it is a party, and the execution and delivery of
this Agreement and the Other Agreements to which it is a party and the performance of all
obligations hereunder and thereunder has been duly authorized by the applicable Seller Entity. The
signing, delivery and performance of this Agreement and the Other Agreements to which it is a party
by each Seller Entity is not prohibited or limited by, and will not result in the breach of or a
default under, any provision of the charter, bylaws or other organizational documents of the
applicable Seller Entity, or of any material agreement or instrument binding on the applicable
Seller Entity (subject to obtaining consents to assign any Assumed Contract), or of any applicable
order, writ, injunction or decree of any court or governmental instrumentality. This Agreement has
been, and on the Closing Date the Other Agreements to which it is a party will have been, duly
executed and delivered by each Seller Entity and constitutes, or, in the case of the Other
Agreements to which it is a party will constitute, the legal, valid and binding obligation of each
Seller Entity, enforceable against each Seller Entity in accordance with their respective terms
except as enforceability may be limited or affected by the principles and laws of equity or
applicable bankruptcy, insolvency, moratorium, reorganization or other laws of general application
relating to or affecting creditors’ rights generally.

     5.3. Title and Inventory.

          5.3.1. Subject to obtaining any consents listed on Schedule 5.8: (i) upon delivery to
Buyer of the Assignment and Assumption Agreement, Buyer will receive legal and beneficial title of
each Seller Entity to all of the Purchased Assets, free and clear of all liens and encumbrances,
and (ii) upon delivery to Buyer of the License Agreement, Buyer will receive a valid and
enforceable license (except as enforceability may be limited or affected by the principles and laws
of equity or applicable bankruptcy, insolvency, moratorium, reorganization or other laws of general
application relating to or affecting creditors’ rights generally) to the Licensed Intellectual
Property, pursuant to the terms of the License Agreement, free and clear of all liens,
encumbrances, sublicenses, licenses and rights granted to third parties (other than as provided in
the Takeda Arrangement or with respect to the Alzheimer’s Field of Use).

          5.3.2. All items included in the Inventories consist of finished goods manufactured, packaged
and stored in accordance with all Manufacturing Requirements. All items included in the
Inventories are Conforming Products. The Inventory expiration date for each of the Inventory lots
included in the Purchased Assets is, together with a true and accurate schedule of such Inventory,
set forth on Schedule 2.1(d).

     5.4. Certain Financial Information; Customers.

          5.4.1. Seller has provided to Buyer, prior to the date hereof, certain historical financial
information (and excluding any projections) about the Seller and the financial history of the
Seller as it relates to the Products as set forth on Schedule 5.4.1 (the “Financial

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Information”). The Financial Information is complete in all material respects and fairly and
accurately reflects the financial results of the Products. The Financial Information was prepared
based on the books and records of the Seller Entities, consistent with their prior practices and is
included in the consolidated financials results of Andrx Corporation.

          5.4.2. Schedule 5.4.2 lists the trade level customers (i.e., mass merchandisers,
wholesalers and warehousing chains) of the Seller Product Lines accounting for at least 90% of the
revenues attributable to the Products for the two most recent fiscal years (“Customers”) and sets
forth opposite the name of each such Customer the gross sales revenues attributable to such
Customer. The schedule also lists any additional current customers that Seller anticipates will
account for material Product revenues in the current fiscal year and is included in the
consolidated financial results of Andrx Corporation.

     5.5. Certain Contracts. The Seller Entities have previously made available to Buyer
true and correct copies of all Assumed Contracts together with all amendments, waivers or changes
in respect thereof. Each Assumed Contract is legal, valid, binding upon and enforceable against
the Seller party thereto and, to Seller’s Knowledge, the other party (subject to bankruptcy laws
and general principles of equity), is in full force and effect and is not in default. Seller has
provided Buyer with a true and correct copy of each of the Takeda Arrangement and the Sandoz
Agreement, in each case as amended through the date hereof, and such agreements remain in effect
expressly on the terms and conditions set forth therein.

     5.6. Trademark Rights. The Trademark Rights are owned free and clear of all liens or
encumbrances. Except as set forth on Schedule 5.6, the Trademark Rights have not been and
are not the subject of any pending adverse claim, or any threatened litigation or claim of
infringement.

     5.7. Litigation and Legal Proceedings. Schedule 5.7 sets forth a list of all
litigation, proceedings, actions, suits, proceedings, hearings, investigations, charges,
complaints, claims, or demands pending or, to each Seller’s Knowledge, threatened by or against the
Seller Entities, in each case relating to the Seller Product Lines.

     5.8. Consents. Except for filings required by the HSR Act, no notice to, filing with,
authorization of, exemption by, or consent of, any Person or public or governmental authority is
required for any Seller Entity to consummate the transactions contemplated hereby. Schedule
5.8 will be updated at the Closing to reflect any consents required for the assignment of any
Assumed Contracts entered into after the date of this Agreement.

     5.9. Product Liability. Except as set forth on Schedule 5.9, no Person has
asserted any Product Liability Claim against any Seller Entity with respect to the Seller Product
Lines and, to Seller’s Knowledge, no such claims are threatened. Schedule 5.9 sets forth
the pending, adjudicated and settled product liability and third party personal injury claims with
respect to the Seller Product Lines.

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     5.10. Regulatory Matters.

          5.10.1. Except where noncompliance would not result in a Material Adverse Effect, (i) the
Seller Entities are in compliance with all Laws with respect to the manufacture, sale, labeling,
storing, testing, distribution, promotion and marketing of the Products, and (ii) the Seller
Entities have all permits, approvals, registrations, licenses or the like necessary pursuant to the
requirements of any Governmental or Regulatory Authority having jurisdiction over Seller Entities
to conduct their business and relating to the manufacture, sale, labeling, storing, testing,
distribution, promotion and marketing of the Products. Seller Entities have previously delivered
or made available to Buyer an index of all applications, approvals, registrations, licenses or the
like obtained by Seller Entities from any Governmental or Regulatory Authority.

          5.10.2. Seller Entities have made available to Buyer all written communications and oral
communications to the extent reduced to written or other tangible form between any Seller and any
Governmental or Regulatory Authority from the date each NDA was initially filed through the date
hereof with respect to the Product Lines.

          5.10.3. Seller Entities have not made any material false statements on, or omissions from, the
applications, approvals, reports and other submissions to any Governmental or Regulatory Authority
prepared or maintained to comply with the requirements thereof relating to the Products.

          5.10.4. Seller Entities have not received any notification, written or oral, that remains
unresolved, from any Governmental or Regulatory Authority indicating that any Products are
misbranded or adulterated as defined in the U.S. Food, Drug & Cosmetic Act, 21 U.S.C. 321, et seq.,
as amended, and the rules and regulations promulgated thereunder or any similar law.

          5.10.5. No Products have been recalled, suspended or discontinued as a result of any action by
any Governmental or Regulatory Authority or, to the Knowledge of Seller Entities, any licensee,
distributor or marketer of the Products.

     5.11. Events Subsequent to Most Recent Fiscal Year End. Except as set forth in the
Disclosure Schedule, since the most recent fiscal year end of Seller:

          5.11.1. Seller Entities have not issued an invoice to any third party prior to the delivery of
the Products to which such invoice relates;

          5.11.2. Seller Entities have not transferred, assigned, or granted any license or sublicense
of any rights under or with respect to any Licensed Intellectual Property;

          5.11.3. Seller Entities have not failed to take any action necessary to maintain, renew, or
protect any patents included in the Licensed Intellectual Property;

          5.11.4. There has not been any material change in the pricing policies used by Seller relating
to its business related to the Products; and

          5.11.5. Seller has not committed to do any of the foregoing.

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     5.12. Undisclosed Liabilities. To each Seller’s knowledge, Seller Entities do not
have any liability relating to the business of the Seller Product Lines or the Purchased Assets for
which Buyer will become liable as a result of the transactions contemplated hereby other than the
Assumed Liabilities.

     5.13. Intellectual Property.

          5.13.1. Seller Entities own all right, title and interest in and to, or have the present and
valid right pursuant to an effective contract, to use all Intellectual Property necessary to make,
use and sell the Products in accordance with the current operation of the business relating
thereto. The Intellectual Property purchased pursuant to this Agreement and licensed pursuant to
the License Agreement (collectively, the “Business Intellectual Property”), together with the
Manufacturing Intellectual Property (as defined in the Supply Agreement) constitutes all of the
Intellectual Property necessary to the manufacture, sale, labeling, storing, testing, distribution,
promotion and marketing of the Products as currently conducted by the Seller Entities. Each item
of Business Intellectual Property that is licensed pursuant to the License Agreement will be
available for use by Buyer on the terms of the License Agreement, immediately subsequent to the
Closing. The conduct of the business of Seller with respect to the Products has not infringed and,
to the Knowledge of Seller, as of the Closing Date, will not infringe any Intellectual Property
rights (which, with respect to patents, shall only include currently issued patents) of any third
parties, and Seller has received no charge, complaint, claim, demand, or notice alleging any such
infringement. To Seller’s Knowledge there is no pending paragraph IV certification under the Drug
Price Competition and Patent Term Restoration Act (Hatch-Waxman Act) applicable to the Products or
any generic manufacturer presently manufacturing a Fortamet Generic Product or Altoprev Generic
Product.

          5.13.2. Schedule 5.13.2 identifies (A) each patent or registration which has been
issued to Seller Entities with respect to any of the Business Intellectual Property and each
pending patent application or application for registration which Seller Entities have made with
respect to any of the Business Intellectual Property (collectively, the “Registered Business
Intellectual Property”), and (B) each license, sublicense, agreement, or other permission which
Seller Entities have granted to any third party with respect to any of the Business Intellectual
property (together with any exceptions). Seller Entities have made available to Buyer correct and
complete copies of all such patents, registrations, applications, licenses, sublicenses,
agreements, and permissions (as amended to date). With respect to each item of Registered Business
Intellectual Property:

     (a) Seller Entities owns and possess all right, title, and interest in and to the item,
free and clear of any lien, encumbrance, license, third party right or other restriction or
limitation regarding use or disclosure;

     (b) the item is not subject to any outstanding injunction, judgment, order, decree,
ruling, or charge;

     (c) each such item is valid and enforceable and no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand is pending or is threatened which
challenges the legality, validity, enforceability, use, or ownership of the item; and

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     (d) no loss or expiration of the item is threatened, pending, or reasonably
foreseeable, except for patents expiring at the end of their statutory terms (and not as a
result of any act or omission by Seller Entities, including without limitation, a failure by
Seller Entities to pay any required maintenance fees).

          5.13.3. Seller Entities do not license any Intellectual Property that any third party owns
which Seller Entities utilizes to make, use or sell the Seller Product Lines.

     5.14. No Broker. Except as set forth on Schedule 5.14, Seller has not engaged
any broker or any other Person who would be entitled to any brokerage fee or commission from Buyer
in respect of the execution and delivery of this Agreement, the Other Agreements, or the
consummation of the transactions contemplated hereby and thereby.

BUYER IS ACQUIRING THE PURCHASED ASSETS AND ENTERING INTO OTHER TRANSACTIONS CONTEMPLATED HEREBY
WITHOUT ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, OR
ANY OTHER IMPLIED WARRANTIES WHATSOEVER. BUYER ACKNOWLEDGES AND AGREES THAT NO SELLER ENTITY, IT
AFFILIATES NOR ANY OF THEIR REPRESENTATIVES HAS MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED THAT IS NOT EXPLICITLY SET FORTH IN THE AGREEMENT AND THE OTHER AGREEMENTS.

ARTICLE 6.

REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer represents and warrants to the Seller Entities as follows:

     6.1. Organization. Buyer is a corporation duly organized and validly existing in good
standing under the Laws of the State of Delaware, duly qualified to transact business as a foreign
corporation in all jurisdictions except where the failure to be so qualified would not reasonably
be expected to have a material adverse effect on Buyer, and with all requisite corporate power and
authority to own, lease and operate its properties and to carry on its business as now being
conducted.

     6.2. Due Authorization. Buyer has full corporate power and authority to execute,
deliver and perform this Agreement and the Other Agreements to which it is a party and the
execution and delivery of this Agreement and the Other Agreements to which it is a party and the
performance of all obligations hereunder and thereunder has been duly authorized by Buyer. The
signing, delivery and performance of this Agreement and the Other Agreements to which it is a party
by Buyer is not prohibited or limited by, and will not result in the breach of or a default under,
any provision of the Certificate of Incorporation or By-Laws of Buyer or of any order, writ,
injunction or decree of any court or governmental instrumentality. This Agreement has been, and on
the Closing Date and the Other Agreements to which it is a party will have been, duly executed and
delivered by Buyer and constitutes, or, in the case of the Other Agreements to which it is a party
will constitute, the legal, valid and binding obligation of Buyer, enforceable against Buyer in
accordance with their respective terms except as enforceability may be limited

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or affected by the principles and Laws of equity or applicable bankruptcy, insolvency,
moratorium, reorganization or other Laws of general application relating to or affecting creditors’
rights generally.

     6.3. Consents. Except as required by the HSR Act, no notice to, filing with,
authorization of, exemption by, or consent of, any Person or public or governmental authority is
required for Buyer to consummate the transactions contemplated hereby.

     6.4. Litigation. There is no litigation, proceeding or claim pending or, to the
knowledge of Buyer, threatened relating to or affecting Buyer’s ability to purchase or operate the
Purchased Assets or assume the Assumed Liabilities relating thereto.

     6.5. No Contemplated Sales. Neither Buyer nor any Affiliate or representative of
Buyer has any agreements as of the date hereof relating to the sale or other disposition of all or
substantially all of the Purchased Assets following the Closing, other than in the ordinary course
of business.

     6.6. No Broker. Buyer has not engaged any broker or any other Person who would be
entitled to any brokerage fee or commission from any Seller Entity in respect of the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby.

     6.7. Sufficient Funds. Buyer has sufficient funds available to affect the purchase
and license by Buyer hereunder.

     6.8. Marketing Plan. Attached as Schedule 6.8 is Buyer’s business plan (the
“Business Plan”) for the Seller Product Lines, including but not limited to Buyer’s marketing/sales
plan, production plan, launch plan samples and product plan.

ARTICLE 7.

PRE-CLOSING COVENANTS OF SELLER AND BUYER

     7.1. Corporate and Other Actions. Each of Seller and Buyer shall take all necessary
corporate action required to fulfill its obligations under this Agreement and the Other Agreements
and the transactions contemplated hereby and thereby.

     7.2. Consents and Approvals. Each of Seller and Buyer shall use its commercially
reasonable efforts to obtain all necessary consents and approvals to the performance of its
obligations under this Agreement and the Other Agreements and the transactions contemplated hereby
and thereby. Each of Seller and Buyer shall make all filings, applications, statements and reports
to all Federal or state government agencies or entities which are required to be made prior to the
Closing Date by or on behalf of Seller or Buyer pursuant to any applicable statute, rule or
regulation in connection with this Agreement and the Other Agreements and the transactions
contemplated hereby and thereby.

     7.3. Competition Law Filings. Each of Buyer and Seller shall promptly prepare and
file (a) the notification and report form required under the HSR Act, and regulations promulgated

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thereunder, if applicable, and any further filings pursuant thereto as may be necessary and
(b) under other filings required under any other applicable competition Laws.

     7.4. Access to Information. Seller will permit representatives of Buyer from and
after the date hereof up to the Closing Date to have access at all reasonable times to the books,
accounts, and records pertaining to the Purchased Assets, and will furnish Buyer with such
financial and operating data concerning the Purchased Assets as Buyer shall from time to time
reasonably request, subject to the confidentiality restrictions contained in this Agreement and in
the Confidentiality Agreement.

     7.5. Operations of the Business prior to Closing. Subsequent to the date hereof and
prior to the Closing Date, Seller will continue to conduct the business of the Seller Product Lines
in substantially the same manner as heretofore conducted and engage in business in the usual and
normal course. Without limiting the generality of the foregoing, Schedule 7.5 shall apply
as specified therein for excessive sales of Fortamet between signing and Closing.

     7.6. Notification of Customers. Buyer shall notify the customers of the Products that
(i) Buyer has acquired, and Seller Entities have transferred, the right to distribute, promote,
market, use and sell the Products, and (ii) that all customer orders for Products received by
Seller Entities but not fulfilled as of the Closing Date will be transferred to Buyer and that
customers shall thereafter remit order payments for Products sold after Closing to Buyer. Seller
shall provide Buyer at the Closing with all purchase orders, sales orders and other similar
agreements for the purchase of Products that have been entered into by the Seller Entities after
the date of this Agreement and prior to the Closing Date, including those which would otherwise
have been required to be listed on Schedule 2.3.1. Following Closing, Seller Entities
shall transfer to Buyer any customer order for the Products that Seller Entities or any of their
Affiliates receives promptly after receipt of such order.

     7.7. Notice of Developments. Each party shall give prompt written notice to the other
party of any development causing any of its or their own representations and warranties in Article
5 and Article 6 above to become untrue or incomplete. No disclosure by any party pursuant to this
Section 7.7 shall be deemed to amend or supplement the Disclosure Schedule for purposes of
determining whether the representations and warranties herein have been breached when determining
compliance with the Closing conditions in Article 8. All disclosures by any party pursuant to this
Section 7.7 shall be deemed to amend and supplement the Disclosure Schedule when determining
whether a party is entitled to indemnification pursuant to Article 10 (as if such disclosure had
been included in the Disclosure Schedule on the date hereof).

ARTICLE 8.

CONDITIONS

     8.1. Conditions to Obligations of Seller. The obligations of Seller to consummate the
transactions contemplated by this Agreement shall be subject to fulfillment at or prior to Closing
of the following conditions (any one or more of which may be waived in whole or in part by Seller):

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          8.1.1. Performance of Agreements and Conditions. All agreements and conditions to be
performed and satisfied by Buyer hereunder on or prior to the Closing Date shall have been duly
performed and satisfied in all material respects, and there shall be delivered to Seller on the
Closing Date a certificate, in form and substance reasonably satisfactory to Seller and its
counsel, duly signed by an officer of Buyer, to that effect.

          8.1.2. Representations and Warranties True. The representations and warranties of
Buyer contained in this Agreement shall be true in all material respects, except for such
representations and warranties of Buyer contained in this Agreement as are qualified by reference
to materiality, in which case such representations and warranties shall be true and correct in all
respects on and as of the Closing Date, with the same effect as though made on and as of the
Closing Date, and there shall be delivered to Seller on the Closing Date a certificate, in form and
substance reasonably satisfactory to Seller and its counsel duly signed by an officer of Buyer, to
that effect.

          8.1.3. Payment of Purchase Price. Buyer shall have paid the Closing Payment and
assumed the Assumed Liabilities as provided in Section 4.2.2.

          8.1.4. Consents. The parties shall have received (a) all material governmental
consents and approvals necessary to consummate the transactions contemplated by this Agreement,
including, without limitation, the expiration or termination of any applicable waiting period under
the HSR Act without action by the Justice Department or the Federal Trade Commission to prevent
consummation of this Agreement and (b) the additional consents set forth on Schedule 8.1.4
attached hereto.

          8.1.5. No Court Order. No court order shall have been entered in any action or
proceeding instituted by any party which enjoins, restrains, or prohibits this Agreement or the
complete consummation of the transactions as contemplated by this Agreement.

     8.2. Conditions to Obligations of Buyer. The obligations of Buyer to consummate the
transactions contemplated by this Agreement shall be subject to fulfillment at or prior to the
Closing of the following conditions (any one or more of which may be waived in whole or in part by
Buyer):

          8.2.1. Performance of Agreements and Covenants. Except where failure to perform or
satisfy any agreement or condition would not have a Material Adverse Effect, all agreements and
conditions to be performed and satisfied by Seller Entities hereunder on or prior to the Closing
Date shall have been duly performed and satisfied in all respects and there shall be delivered by
Seller Entities on the Closing Date a certificate, in form and substance reasonably satisfactory to
Buyer and its counsel, duly signed by an officer of Seller Entities, to that effect.

          8.2.2. Representations and Warranties True. The representations and warranties of
Seller Entities contained in this Agreement shall be true and correct in all material respects,
except for such representations and warranties of Seller Entities contained in this Agreement as
are qualified by reference to materiality, in which case such representations and warranties shall
be true and correct in all respects on and as of the Closing Date with the same effect as though
made on and as of the Closing Date and there shall be delivered by Seller

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Entities on the Closing Date a certificate, in form and substance reasonably satisfactory to
Buyer and its counsel, duly signed by an officer of Seller Entities, to that effect.

          8.2.3. Consents. The parties shall have received all material governmental consents
and approvals necessary to consummate the transactions contemplated by this Agreement and the Other
Agreements, including, without limitation, the expiration or termination of any applicable waiting
period under the HSR Act without action by the Justice Department or the Federal Trade Commission
to prevent consummation of this Agreement.

          8.2.4. No Court Order. No court order shall have been entered in any action or
proceeding instituted by any party which enjoins, restrains, or prohibits this Agreement or the
complete consummation of the transactions as contemplated by this Agreement or the Other
Agreements.

          8.2.5. Generic Product. If prior to closing (i) Seller receives notice with respect
to either Product that a third party has filed an Abbreviated New Drug Application with the Food
and Drug Administration, together with a certification under Section 505(b)(2)(A)(iv) of the
Federal Food and Drug and Cosmetic Act, as amended (the “FFDC Act”), and (ii) Seller has not
instituted a responsive action under the FFDC Act, and (iii) the time period to institute such an
action has expired, then Buyer shall not be required to close and may terminate this Agreement with
no further liability. To the extent Seller has instituted an action as described above, following
Closing, Buyer shall indemnify and hold harmless Seller for any and all damages, losses, costs and
expenses (including reasonable attorneys’ fees) incurred, directly or indirectly, by Seller
resulting from any such action.

ARTICLE 9.

POST-CLOSING COVENANTS

     9.1. Retained Products; Non-Competition.

          9.1.1. Generic. Seller retains the exclusive rights to manufacture, market, sell, and
distribute the Products as an authorized Altoprev Generic Product or Fortamet Generic Product in
any country in the world, provided such Product is not sold without Purchaser’s consent prior to
the launch of an Altoprev Generic Product or Fortamet Generic Product, as applicable, by any other
Person in the relevant country. Following Closing, Buyer shall not, and shall not directly or
indirectly authorize or assist any Person other than Seller to, develop, manufacture, market or
sell any non-branded or generic version of Fortamet or Altoprev. Seller shall not, and shall not
directly or indirectly, authorize or assist any Person other than Buyer, to file an ANDA for the
approval of an Altoprev Generic Product or a Fortamet Generic Product without Buyer’s prior written
consent, which may be withheld in Buyer’s sole discretion. Upon the first to occur of: (i) the
consent of Buyer to introduce an Altroprev Generic Product or Fortamet Generic Product, as
applicable, or (ii) the launch by a third party of an Altoprev Generic Product or Fortamet Generic
Product, then Seller will have the right to sell the applicable generic product in the same dosages
as marketed by the third party, under a generic label, pursuant to the financial terms and
conditions set forth in Schedule 9.1.1 in the relevant country.

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          9.1.2. Right of First Negotiation. In the event that Seller elects to develop any new
branded metformin product in a greater than a 1000mg dosage, then Buyer shall have a right of first
negotiation to enter into an agreement with Seller (a “Development Agreement”) for the development,
submission of a new NDA, manufacture, marketing and sale of such product. Seller shall be entitled
to enter into a Development Agreement with another party if the Buyer and Seller do not agree after
good faith negotiations on terms for a Development Agreement within 45 days of the commencement of
negotiations.

          9.1.3. Over the Counter. In the event that either Product is approved for over the
counter sale, Seller will have the right to commercialize an over the counter version of such
Product, subject to agreement between the parties as to the commercialization terms.

          9.1.4. Extensions. If requested by Buyer, Seller will reasonably consider developing
and/or manufacturing extension products to either of the Products, excluding products covered by
the Takeda Arrangement and products within the Alzheimer Field of Use but including other potential
combination products. Seller will in no event have any liability for failure to agree to develop
or manufacture any extension product.

          9.1.5. Fortamet. Notwithstanding anything herein to the contrary, Buyer acknowledges
that the Seller Entities retain all rights to develop, manufacture, market and sell products
pursuant to the Takeda Arrangement, including products that involve the combination of Fortamet
with glitazone, glitazaar compounds and other insulin sensitizers (“Compound Products”). Following
Closing, Buyer shall not, and shall not directly or indirectly authorize or assist any Person other
than Seller to, develop, manufacture, market or sell any product that involves the combination of
Fortamet with a glitazone or glitazaar compound or any other insulin sensitizer.

          9.1.6. Regulatory Information. The Buyer hereby acknowledges the Seller Entities
retain ownership of, as well as the right to rely on, reference, copy and use the Regulatory
Information and Buyer shall reasonably cooperate with Seller for the purpose of obtaining
governmental approvals anywhere in the world (i) with respect to Fortamet as necessary or desirable
for the manufacture, marketing or sale of Compound Products, (ii) with respect to Compound
Products, (iii) with respect to the development, manufacture, marketing and sale of Authorized
Generics and (iv) with respect to the development, manufacture, marketing and sale of OTC Products.
Notwithstanding the foregoing, in the event Seller registers a Product for sale outside of the
United States, Buyer shall retain the exclusive right to market such Product in such country.

          9.1.7. Branded Products. For a period beginning on the date hereof and ending on the
earlier of (i) ten (10) years following Closing and (ii) the expiration of the patents included in
Licensed Intellectual Property applicable to the relevant Product, the Seller Entities shall not,
and shall not directly or indirectly authorize or assist any Person other than Buyer to, develop or
manufacture any prescription branded lovastatin or metformin product, as applicable.
Notwithstanding the foregoing, upon a Change of Control, this Section 9.1.7 shall: (i) if such
acquiring entity was engaged in the bona fide development or sale of branded lovastatin products
prior to the Company entering into the Agreement resulting in the Change of Control, terminate as
to branded lovastatin products, and (ii) if such acquiring entity was engaged in the bona fide

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development or sale of branded metformin products prior to Company’s entering into the
Agreement resulting in the Change of Control, terminate as to branded metformin products. If such
acquiring entity was engaged neither in the bona fide development or sale of branded lovastatin
products or metformin products, this provision shall remain in full force and effect.

          9.1.8. Invalidity of Unenforceability. If the final judgment of a court of competent
jurisdiction declares that any term or provision of this Section 9.1 is invalid or unenforceable,
the parties agree that the court making the determination of invalidity or unenforceability shall
have the power to reduce the scope, duration, or area of the term or provision, to delete specific
words or phrases, or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified
after the expiration of the term within which the judgment may be appealable.

     9.2. Availability of Records. Buyer, on the one hand, and Seller Entities, on the
other hand, shall provide each other with such assistance as may reasonably be requested by any of
them in connection with the preparation of any Tax Return, any audit or other examination by any
taxing authority, or any judicial or administrative proceedings relating to liability for taxes.
The party requesting assistance hereunder shall reimburse the party whose assistance is requested
for the reasonable out-of-pocket expenses incurred by it in providing such assistance.

     9.3. Intellectual Property Matters.

     (a) Buyer shall not use or permit its distributors or any other Person to use the name
“Andrx”, “Altocor” or any other corporate, trade or service marks or names owned or used by
Seller or its Affiliates, unless such marks or names are specifically included in the
Purchased Assets. Buyer admits the validity of, and agrees not to challenge any of the
trademarks, trade names or service marks of Seller or its Affiliates. Buyer shall not use
the name “Andrx” or any other corporate, trade or service marks or names owned or used by
Seller or its Affiliates, or any part thereof, as part of its corporate name, nor use any
name or make confusingly similar to any trademarks, trade names or service marks of Seller
or its Affiliates.

     (b) Seller shall not use or permit its distributors or any other Person to use the name
“Altoprev”, “Fortamet” or any other corporate, trade or service marks or names owned or used
by Buyer or its Affiliates, except to the extent contemplated by the Supply Agreement.
Seller Entities admit the validity of, and agree not to challenge any of the trademarks,
trade names or service marks of Buyer or its Affiliates.

     9.4. Further Assurances. Subject to the terms and conditions of this Agreement, at
any time or from time to time after the Closing, at either party’s request and without further
consideration, the applicable party shall execute and deliver to the requesting party such
instruments and documents as are reasonably required to evidence or make effective the transactions
and agreements contemplated hereby.

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     9.5. Remedies. The parties agree and acknowledge that any breach of this Article
9 will cause irreparable damage to the parties and upon breach of this Article 9, the
non-breaching party shall be entitled to injunctive relief, specific performance or other equitable
relief; provided, however, that, this shall in no way limit any other remedies which the parties
may have (including, without limitation, the right to seek monetary damages).

     9.6. Marketing of Products. For a period of 12 months from the Closing, Buyer shall
comply with the marketing, detailing and reporting obligations described in the Business Plan,
provided that Buyer shall not have any responsibility for noncompliance with the Business Plan to
the extent arising from (i) Seller’s breach of any obligations under this Agreement or the Other
Agreements or (ii) any Force Majeure Event.

     9.7. Takeda Amendment. Seller shall not amend or permit the amendment or modification
of the Takeda Arrangment in a manner that would adversely affect or otherwise diminish, directly or
indirectly, the rights of Buyer pursuant to this Agreement and the Other Agreements.

     9.8. Litigation Support. In the event and for so long as any party actively is
contesting or defending against any proceeding in connection with (i) any transaction contemplated
under this Agreement or any other transaction document, or (ii) any fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act,
or transaction on or prior to the Closing Date involving the business, the other Party will
reasonably cooperate with the contesting or defending party and its counsel in the contest or
defense, make available its personnel, and provide such testimony and access to its books and
records as shall be reasonably necessary in connection with the contest or defense, all at the sole
cost and expense of the contesting or defending party (unless the contesting or defending party is
entitled to indemnification therefore under Article 10 below).

     9.9. Employment of Select Employees by Buyer.

          9.9.1. Buyer is not obligated to hire any employees of Seller Entities but may interview
select employees associated with the Products as expressly permitted by Seller Entities (“Select
Employees”). Buyer shall provide Seller Entities at Closing with a list of Select Employees to
whom it has made an offer of employment that has been accepted to be effective on the closing Date
(the “Hired Select Employees”). Effective immediately before the Closing, Seller Entities will
terminate the employment of all of the Hired Select Employees.

          9.9.2. It is understood and agreed that Buyer has no obligation to extend offers of employment
with any fixed term or duration or upon any terms or conditions other than those that Buyer may
establish pursuant to individual offers of employment, which may be “at-will.” Nothing in this
Agreement shall be deemed to prevent or restrict in any way the right of Buyer to terminate,
reassign, promote or demote any of the Hired Select Employees after the Closing or to change
adversely or favorably the title, powers, duties, responsibilities, functions, locations, salaries,
other compensation or terms or conditions of employment of such employees.

          9.9.3. The Confidentiality Agreement shall be deemed waived to the extent necessary for Buyer
to exercise its rights under this Section 9.9.

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     9.10. Seller Entities shall be responsible for (i) the payment of all wages and other
remuneration due to Hired Select Employees with respect to their services as employees of Seller
Entities through the close of business on the Closing Date; (ii) the payment of any termination or
severance payments and the provision of health plan continuation coverage in accordance with the
requirements of COBRA and Sections 601 through 608 of ERISA; and (iii) any and all other payments
to employees required by Law.

ARTICLE 10.

INDEMNIFICATION AND SURVIVAL

     10.1. Indemnification by Seller Entities.

          10.1.1. Seller Entities Indemnity. To the extent set forth in this Section 10.1, the
Seller Entities shall, jointly and severally, defend, indemnify and hold harmless Buyer and its
officers, directors, employees, and agents for all debts, obligations, monetary damages, fines,
fees, penalties, losses, costs, deficiencies sand expenses (including, without limitation,
reasonable attorneys’ fees, but not including any loss of profits, diminution in value, or
indirect, special, exemplary, consequential, incidental or punitive damages, except in the event of
willful misconduct or fraud) (individually, a “Loss” and collectively “Losses”) which are caused by
(i) any breach of any of (x) the representations and warranties of Seller set forth in this
Agreement, or (y) the representations, warranties, covenants or agreements of Seller under the
Supply Agreement (other than Sections 2.4.1, 2.4.3, 2.4.6, 7.6 and 7.7), the Quality Assurance
Agreement or the License Agreement, (ii) any breach of the covenants and agreements of Seller set
forth in this Agreement, and (iii) the Excluded Liabilities.

          10.1.2. Limitations on Seller’s Indemnity.

     (a) Seller Entities shall not be liable for a Loss covered under Section 10.1.1(i)
until the aggregate of all Losses for which Seller Entities are liable are in excess of
$1,000,000 (the “Basket”), in which event Buyer shall be entitled to assert a claim for the
amount of all Losses (including any losses relating back to “dollar one” of such Losses)
subject to the indemnification limit set forth in Section 10.1.2(b).

     (b) Seller Entities aggregate liability pursuant to Section 10.1.2(a) above shall not
exceed 25% of the sum of the Fortamet Amount plus the Altoprev Amount actually paid
(net of any amount required to be refunded pursuant to Section 3.2.3), plus the
cumulative amount of Royalties received by Seller (the “Indemnity Cap”).

     (c) The limitations set forth in subsections (a) and (b) of this Section 10.1.2 shall
not be applicable to any losses covered under Section 10.1.1(ii) or (iii) above, or in the
case of willful misconduct or fraud.

          10.1.3. Buyer Notice of Claims. Buyer shall promptly notify Seller in writing of all
matters which may give rise to the right to indemnification hereunder. Buyer shall not admit any
liability with respect to, or settle, compromise or discharge any such matter covered by this
Section 10.1 without Seller’s prior written consent (which will not be unreasonably withheld).
Seller shall have the right, with the consent of Buyer which shall not be unreasonably

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withheld, to settle all indemnifiable matters related to claims by third parties which are
susceptible to being settled, and to defend (without the consent of Buyer) through counsel of its
own choosing, at its own expense, any action which may be brought by a third party in connection
therewith, provided, however, that Buyer shall have the right to have its counsel participate in
such defense at its own expense, and provided, that it shall be deemed unreasonable to withhold
consent if: (i) there is no finding or admission of any violation of Law or any violation of the
rights of any Person, (ii) the sole relief provided is monetary damages that are paid in full by
the Seller, and (iii) Buyer shall have no liability with respect to any compromise or settlement of
such matter. Buyer and Seller shall keep each other informed of all settlement negotiations with
third parties and of the progress of any litigation with third parties. Buyer and Seller shall
permit each other reasonable access to books and records and otherwise cooperate with all
reasonable requests of each other in connection with any indemnifiable matter resulting from a
claim by a third party.

     10.2. Indemnification by Buyer. Buyer agrees to indemnify and hold harmless Seller
for all Losses which are caused by (i) any breach of any of (x) the representations and warranties
of Buyer set forth in this Agreement, or (y) the representations, warranties, covenants or
agreements of Buyer under the Supply Agreement, the Quality Assurance Agreement or the License
Agreement, (ii) any Buyer Product Liability Claims or (iii) any Assumed Liability.

     10.3. Seller Notice of Claims. Seller shall promptly notify Buyer in writing of all
matters which may give rise to the right to indemnification hereunder. Seller shall not admit any
liability with respect to, or settle, compromise or discharge any such matter covered by this
Section 10.3 without Buyer’s prior written consent (which will not be unreasonably withheld).
Buyer shall have the right, with the consent of Seller, which shall not be unreasonably withheld,
to settle all indemnifiable matters related to claims by third parties which are susceptible to
being settled, and to defend (without the consent of Seller) through counsel of its own choosing,
at its own expense, any action which may be brought by a third party in connection therewith;
provided, however, that Seller shall have the right to have its counsel participate fully in such
defense at its own expense, and provided, that it shall be deemed unreasonable to withhold consent
if: (i) there is no finding or admission of any violation of Law or any violation of the rights of
any Person, (ii) the sole relief provided is monetary damages that are paid in full by the Buyer,
and (iii) Seller shall have no liability with respect to any compromise or settlement of such
matter. Buyer and Seller shall keep each other informed of all settlement negotiations with third
parties. Buyer and Seller shall permit each other reasonable access to books and records and
otherwise cooperate with all reasonable requests of each other in connection with any indemnifiable
matter resulting from a claim by a third party.

     10.4. Survival. The representations and warranties of Seller contained in Articles 5
and 6 shall survive the Closing for a period of 18 months at which time they shall expire except
for claims previously made in writing with respect to breaches of such representations and
warranties; provided, however that the representations and warranties of Seller contained in
Sections 5.1, 5.2 and 5.3 shall survive the Closing without limitation as to time. No claim may be
made based upon an alleged breach of any of such representations or warranties whether for
indemnification in respect thereof or otherwise, unless written notice of such claim, in reasonable
detail, is given to Buyer or to Seller, as the case may be, within said period following the
Closing.

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     10.5. Set-Off. Buyer shall have the right to set-off all or any part of Losses it has
actually suffered and with respect to which it is entitled to indemnification, subject to the
Basket and the Indemnity Cap as well as the survival periods and other limits and conditions
applicable to indemnification herein, pursuant to this Section (in lieu of seeking any
indemnification to which it is entitled) from and against any Royalties due to Seller. Buyer shall
notify Seller Entities at any time that Buyer is making a reduction of any such amount in
accordance with this Article 10 and provide the Seller Entities with a reasonably detailed summary
of the basis for the reduction as well as reasonable evidence supporting Buyer’s rights to
indemnification and all other information as Seller shall reasonably request. To the extent Buyer
deducts any amount from the Royalties pursuant to this Section 10.5 for which it is not entitled to
be indemnified in accordance with this Agreement, Buyer shall pay such amounts to Seller together
with interest at an annual rate equal to the Prime Rate on the date the Royalty was otherwise due
plus 4% upon resolution of any dispute related to Buyer’s claim.

     10.6. Exclusive Remedy. The rights and remedies set forth in this Article 10 shall
constitute the sole and exclusive rights and remedies of either party with respect to this
Agreement; provided, that nothing contained in this Section shall be deemed to restrict a party
from seeking specific performance, an injunction or other equitable relief to enforce the terms and
conditions hereof, nor shall the foregoing limitation apply in the case of fraud or other willful
breach by a party to this Agreement.

     10.7. Net Losses and Subrogation.

     (a) Notwithstanding anything contained herein to the contrary, the amount of any Losses
incurred or suffered by a Person entitled to indemnification hereunder (an “Indemnified
Person”) shall be calculated after giving effect to (i) any insurance proceeds received by
the Indemnified Person (or any of its Affiliates) with respect to such Losses reduced to the
extent of any actual increase in insurance premiums arising from the insurer’s payment with
respect to such Losses, (ii) any Tax benefit realized by the Indemnified Person (or any of
its Affiliates) arising from the facts or circumstances giving rise to such Losses and
realized by the Indemnified Person, and (iii) any recoveries obtained by the Indemnified
Person (or any of its Affiliates) from any other third party. Each Indemnified Person shall
exercise commercially reasonable efforts to obtain such proceeds, benefits and recoveries
where commercially reasonable to do so. If any such proceeds, benefits or recoveries are
received by an Indemnified Person (or any of its Affiliates) with respect to any Losses
after an Indemnified Person with respect thereto, the Indemnified Person (or such Affiliate)
shall pay to the person providing the indemnification (the “Indemnifying Person”) the amount
of such proceeds, benefits or recoveries (up to the amount of the Indemnifying Person’s
payment). Any Tax benefit realized by the Indemnified Person pursuant hereto shall be
calculated based on the highest marginal federal and state tax rate for Buyer or Seller
Entities, as applicable, and assuming that the Tax benefit can be fully utilized, either
currently or in a carryback. Any Tax benefit derived from depreciation or amortization
shall be based on the present value of the Tax benefit computed using the prime lending rate
of Citibank at the time of computation of the indemnity at issue.

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     (b) Upon making any payment to an Indemnified Person in respect of any Losses, the
Indemnifying Person will, to the extent of such payment, be subrogated to all rights of the
Indemnified Person (and its Affiliates) against any third party in respect of the Losses to
which such payment relates. Such Indemnified Person (and its Affiliates) and Indemnifying
Person will execute upon request all instruments reasonably necessary to evidence or further
perfect such subrogation rights.

ARTICLE 11.

TERMINATION

     11.1. Termination of Agreement. This Agreement may be terminated at any time prior to
the Closing Date (a) with the mutual consent of Buyer and Seller, or (b) by either Buyer or Seller
if the other party breaches a representation, warranty, covenant or other obligation hereunder and
fails to cure such breach within five Business Days of receiving notice thereof.

     11.2. Termination for Passage of Time. Either party may terminate this Agreement if
the terminating party is not in breach, upon notice to the other party if each of the conditions
set forth in Sections 8.1 and 8.2 shall not have been satisfied or waived on or before May 15,
2005, or such later date as shall have been agreed to by the parties hereto.

     11.3. Continuing Confidentiality. If this Agreement shall be terminated as herein set
forth, the parties agrees that they will remain obligated under, and will comply with, the
provisions of Section 12.3.

     11.4. Effect of Termination. Except as set forth in Section 11.1(a), no termination
in accordance herewith shall limit the rights and remedies of either party hereunder with respect
to any willful breach or fraud by the other party of any representation, warranty, covenant or
agreement contained herein. Upon termination, neither party shall have any further liabilities or
obligations under this Agreement except in the event of a willful breach, in which case the party
in breach shall be responsible to the other party for all out of pocket fees and expenses paid to
professional advisors in connection with this Agreement. The remedy set forth in the preceding
sentence shall be the sole and exclusive monetary remedy of the parties upon termination of this
Agreement. Nothing herein shall limit either party’s right to injunctive relief, specific
performance or other equitable remedy.

ARTICLE 12.

MISCELLANEOUS

     12.1. Assignment. This Agreement shall not be assignable (directly or indirectly by
change of ownership, operation of Law or otherwise) by either party without the written consent of
the other party.

     12.2. No Press Release Without Consent. No press release related to this Agreement or
the transactions contemplated herein, or other announcement to the employees, customers or
suppliers of Seller will be issued without the joint approval of Seller and Buyer, except any
public disclosure which Seller or Buyer in its good faith judgment believes is required by Law or

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by the rules of any stock exchange on which its securities are listed (in which case the party
making the disclosure will use its commercially reasonable efforts to consult with the other party
prior to making any such disclosure).

     12.3. Confidentiality. Except as required by Law, all information related to the
Seller Product Lines shall be maintained in strict confidence by both parties and their employees,
and in the event that this Agreement is terminated, all written materials relating thereto shall be
returned to Seller or destroyed and Buyer shall deliver an officer’s certificate to Seller
certifying as to such return or destruction. In such event, Buyer and its employees, advisors and
agent shall make no further use of such information whatsoever.

     12.4. Expenses. Each party shall bear its own expenses with respect to the
transactions contemplated by this Agreement; provided, however, that any sales,
transfer, use or other Tax (including excise Tax on inventory) or recording cost incurred upon the
sale or transfer of the Purchased Assets or the license of the Licensed Intellectual Property shall
be paid by Seller to the applicable Person.

     12.5. Severability. Each of the provisions contained in this Agreement shall be
severable, and the unenforceability of one shall not affect the enforceability of any others or of
the remainder of this Agreement.

     12.6. Entire Agreement. This Agreement may not be amended, supplemented or otherwise
modified except by an instrument in writing signed by all of the parties hereto. This Agreement,
the Confidentiality Agreement and the Other Agreements contain the entire agreement of the parties
hereto with respect to the transactions covered hereby, superseding all negotiations, prior
discussions and preliminary agreements made prior to the date hereof.

     12.7. No Third Party Beneficiaries. This Agreement is solely for the benefit of the
parties hereto and their respective affiliates and no provision of this Agreement shall be deemed
to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other
right in excess of those existing without reference to this Agreement.

     12.8. Waiver. The failure of any party to enforce any condition or part of this
Agreement at any time shall not be construed as a waiver of that condition or part, nor shall it
forfeit any rights to future enforcement thereof.

     12.9. Governing Law. This Agreement shall be construed and enforced in accordance
with and governed by the laws of the State of New York without regard to the conflicts of laws
provisions thereof.

     12.10. Headings. The headings of the sections and subsections of this Agreement are
inserted for convenience only and shall not be deemed to constitute a part hereof.

     12.11. Counterparts. More than one counterpart of this Agreement may be executed by
the parties hereto, and each fully executed counterpart shall be deemed an original.

     12.12. Choice of Forum. Buyer and Seller agree that any suit, action or proceeding
brought by either party against the other party to this Agreement in connection with or arising

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out of this Agreement shall be brought solely in the federal and state courts sitting in New
York New York. Each party consents to the jurisdiction and venue of such courts. EACH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.
EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH SUCH PARTY UNDERSTANDS AND HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY,
AND (iv) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION OF THIS AGREEMENT.

     12.13. Further Documents. Each of Buyer and Seller will, at the request of another
party, execute and deliver to such other party all such further instruments, assignments,
assurances and other documents as such other party may reasonably request in connection with the
consummation of the transactions contemplated hereby.

     12.14. Notices. All communications, notices and consents provided for herein shall be
in writing and be given in person or by means of facsimile transmission (with request for assurance
of receipt in a manner typical with respect to communications of that type) or by mail, and shall
become effective (i) on delivery if given in person, (ii) on the date of transmission if sent by
facsimile, or (iii) four Business Days after being deposited in the United States mails, with
proper postage and documentation, for first-class registered or certified mail, prepaid.

     Notices shall be addressed as follows:

If to Buyer, to:

First Horizon Pharmaceutical Corporation

6195 Shiloh Rd.

Alpharetta, Georgia 30005

Attn: Leslie Zacks

Facsimile:

with copies to:

Hunton & Williams LLP

Bank of America Plaza

600 Peachtree St. NE, Suite 4100

Atlanta, Georgia 30308

Attention: Tinley Anderson

Facsimile: (404) 602-9005

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If to Seller, to:

Andrx Labs, LLC

8151 Peters Road, 4th Floor

Plantation, Florida 33324

Attn: Scott Lodin, Esq.

Executive Vice President and General Counsel

Facsimile:

with copies to:

McDermott Will & Emery LLP

227 West Monroe Street

Chicago, Illinois 60606

Attention: Scott Williams

Facsimile: (312) 984-7700

provided, however, that if any party shall have designated a different address by notice to the
others, then to the last address so designated.

     12.15. Schedules. Items disclosed on any Schedule to the Agreement shall, to the
extent reasonably apparent from the text of such disclosure, be deemed to be disclosed on all other
Schedules hereto to which such items could reasonably be expected to apply, and the failure of
Seller to list any item on more than one Schedule shall not give rise to a claim on the part of
Buyer. No disclosure on any Schedule hereto shall establish materiality a threshold.

     12.16. Construction. The language in all parts of this Agreement shall be construed,
in all cases, according to its fair meaning. The parties acknowledge that each party and its
counsel have reviewed and revised this Agreement and that any rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement.

SIGNATURES ON FOLLOWING PAGES

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	ANDRX LABS, LLC

 	 
	 	By:  	/s/ Angelo C. Malahias
 	 
	 	 	Name:  	Angelo C. Malahias 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	ANDRX LABORATORIES, INC.

 	 
	 	By:  	/s/ Angelo C. Malahias
 	 
	 	 	Name:  	Angelo C. Malahias 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	ANDRX LABORATORIES (NJ), INC.

 	 
	 	By:  	/s/ Angelo C. Malahias
 	 
	 	 	Name:  	Angelo C. Malahias 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	ANDRX EU LTD

 	 
	 	By:  	/s/ Angelo C. Malahias
 	 
	 	 	Name:  	Angelo C. Malahias 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	FIRST HORIZON PHARMACEUTICAL CORPORATION

 	 
	 	By:  	/s/ Patrick P. Fourteau
 	 
	 	 	Name:  	Patrick P. Fourteau 	 
	 	 	Title:  	CEO and President 	 
	 

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Exhibit 10.101

MANUFACTURING AND SUPPLY AGREEMENT

     This Manufacturing and Supply Agreement (this “Agreement”) is effective as of March
28, 2005 (the “Effective Date”), by and between First Horizon Pharmaceutical Corporation, a
Delaware corporation with its principal place of business located at 6195 Shiloh Road, Alpharetta,
Georgia 30005 (“Purchaser”) and Andrx Pharmaceuticals, Inc., a Florida corporation with
its principal office located at 4955 Orange Drive, Davie, Florida 33314 (“Andrx”).

RECITALS

     WHEREAS, Andrx is engaged in the business of developing, manufacturing and selling
pharmaceutical products;

     WHEREAS, Purchaser is engaged in the business of marketing and distributing pharmaceutical
products; and

     WHEREAS, Purchaser, Andrx and certain Affiliates of Andrx have entered into an agreement to
license and purchase dated as of March 2, 2005 (the “Agreement to License”) and the other
agreements contemplated thereunder pursuant to which Purchaser has agreed to license from Andrx
certain rights to the Products (as defined below).

     NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

Article I.

Definitions

     1.1 Definitions. As used in this Agreement, the following capitalized terms shall
have the following meanings:

     “Act” shall mean the Federal Food Drug and Cosmetics Act of the United States of
America, United States Code Title 21, Chapter I, as amended.

     “Adverse Drug Experience Report” shall mean any oral, written or electronically
transmitted report of any “Adverse Drug Experience” (as defined in the Act, including, but
not limited to, 21 C.F.R. 314.80 or 312.32), associated with the use of the API (including the
Products).

     “Affiliate” shall mean any Person that directly or indirectly controls, is controlled
by or is under common control with Andrx or Purchaser, as the case may be, but only for so long as
said control shall continue. As used herein, the term “control” means possession of the power to
direct or cause the direction of the management and policies of a Person whether by ownership,

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	   	contract or otherwise. Andrx and Purchaser shall not be considered to be Affiliates of one
another.

     “Altoprev” shall have the meaning given on Exhibit A.

     “Alzheimer’s Field of Use” shall mean the administration of lovastatin sodium for the
treatment or prevention of Alzheimer’s disease or related APP processing disorders.

     “Andrx Product Liability Claims” shall mean any Product Liability Claims (i) relating
to Products sold by Andrx or its Affiliates prior to the Effective Date, or (ii) caused by Andrx’s
failure to supply Product that is in compliance with the Manufacturing Requirements.

     “API” shall mean active pharmaceutical ingredient; lovastatin for Altoprev, and
metformin for Fortamet.

     “Certificate of Analysis” shall have the meaning ascribed to it in Section 2.4.2.

     “Confidential Information” shall mean, with respect to any party (the “Disclosing
Party”), any information relating to the Disclosing Party, the Products or the Disclosing
Party’s business (including, but not limited, to the formulation or specifications for any Products
and any other know-how relating to the manufacture or use of any Products, or to the manufacture of
and the formulation and specifications for the active ingredients thereof and technical
information, research, personnel, financial, marketing, strategic or other information) that is
disclosed in writing to the other party (“Receiving Party”) in the course of the parties’
negotiation of or performance under this Agreement (it being understood that if any information is
disclosed verbally, in order for that information to be considered Confidential Information, the
Disclosing Party must notify the Receiving Party in writing that the information is Confidential
Information within thirty (30) days after disclosure), but shall not include information that: (a)
the Receiving Party knew, owned or controlled prior to receipt from the Disclosing Party; (b) is or
becomes public through no fault of the Receiving Party or any Affiliate thereof; (c) is developed
by the Receiving Party independent of any disclosure from the Disclosing Party or (d) the Receiving
Party obtains from a third party not under a confidentiality obligation to the Disclosing Party.
The existence, terms and conditions of this Agreement do not constitute Confidential Information.

     “Conforming Products” shall have the meaning ascribed to it in Section 2.4.2.

     “Dosage” shall mean the specific strength of a Product.

     “Facility” shall mean Andrx’s existing manufacturing facilities in Davie, Florida or
such other location that Andrx determines to manufacture or have manufactured the Product in
accordance with applicable Law and Section 2.1.2.

     “FDA” shall mean the United States Food and Drug Administration or any successor
governmental agency performing similar functions.

     “Firm Order Period” shall have the meaning ascribed to it in Section 3.1.

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     “Force Majeure” shall have the meaning ascribed to it in Section 11.13.

     “Forecast” shall have the meaning ascribed to it in Section 3.1.

     “Fortamet” shall have the meaning given on Exhibit A.

     “GMPs” and “GLPs” shall mean Good Manufacturing Practices and Good Laboratory
Practices as defined in Parts 210 and 211 of Title 21 of the Code of Federal Regulations, as
amended from time to time, or any successor thereto.

     “Governmental or Regulatory Authority” shall mean: (a) any domestic or foreign
national, federal, provincial, state, municipal or other governmental body, (b) any international
or multi-lateral body, (c) any subdivision, ministry, department, secretariat, bureau, agency,
commission, board, instrumentality or authority of any of the foregoing governments or bodies, (d)
any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority
under or for any of the foregoing governments or bodies, or (e) any domestic, foreign,
international, multi-lateral, or multi-national judicial, quasi-judicial, arbitration or
administrative court, grand jury, tribunal, commission, board or panel.

     “Laws” shall mean: (a) all constitutions, treaties, laws, statutes, codes, ordinances,
orders, decrees, rules, regulations, and municipal by-laws, whether domestic, foreign or
international, (b) all judgments, orders, writs, injunctions, decisions, rulings, decrees and
awards of any Governmental or Regulatory Authority, and (c) all policies, practices and guidelines
of any Governmental or Regulatory Authority.

     “License Agreement” means that certain License Agreement between the parties,
contemplated by the Agreement to License.

     “Manufacturing Intellectual Property” means inventions or discoveries (whether or not
patentable), Patent Rights, know-how, trade secrets, technical information and all other
intellectual property rights owned by or licensed to Andrx and its Affiliates that relate to or are
necessary to manufacture and distribute the Products, and all related documentation or other
tangible expressions thereof, anywhere in the world, including without limitation, rights to the
SCOT Technology.

     “Manufacturing Requirements” shall have the meaning ascribed to it in Section 2.4.1.

     “Material Breach” shall have the meaning ascribed to it in Section 6.2.3.

     “NDA” shall mean the New Drug Applications filed with the FDA for each of the
Products, as defined in the Act and the regulations promulgated thereunder.

     “Opening Inventory Products” shall mean the supply of Products initially acquired by
Purchaser pursuant to the Agreement to License.

     “Other Country Applications” shall mean applications similar to NDAs filed under the
laws of other countries, including without limitation Marketing Authorization Applications filed in
the United Kingdom.

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     “Patent Right(s)” shall mean any and all patent applications, patents, and patentable
subject matter, as well as any and all patent applications claiming priority to, or derived
therefrom, both domestic and foreign, including all additions, divisions, continuations,
continuations-in-part, divisions, improvements, reexaminations and substitutions, and any patents
issuing therefrom including extensions, registrations and reissues thereof.

     “Per Unit Price” shall have the meaning ascribed to it in Section 4.1.

     “Person” shall mean any natural person, corporation, partnership, limited liability
company, joint venture, trust, proprietorship or other entity or organization.

     “Proceedings” shall mean claims, suits, actions, investigations or proceedings.

     “Product(s)” shall mean Altoprev and Fortamet in various Dosages, including without
limitation the Opening Inventory Products, and any modifications thereto and additional Dosages, in
accordance with the terms of this Agreement.

     “Product Liability Claim” shall mean any third party Proceedings involving any actual
or alleged death or bodily injury arising out of or resulting from the use of the Products.

     “Purchase Order” shall have the meaning ascribed to it in Section 3.2.

     “Purchaser Product Liability Claims” shall mean all Product Liability Claims that do
not constitute Andrx Product Liability Claims.

     “Quality Assurance Agreement” shall mean the Quality Assurance Agreement of even date
herewith between Andrx and Purchaser, as in effect from time to time.

     “SCOT Technology” shall mean the know-how, applications, and patents relating to
single composition osmotic table technology, including but not limited to the trade secrets and
know-how required to manufacture the Products.

“Second Quarter” shall have the meaning ascribed to it in Section 3.1.

     “Serious Adverse Drug Experience Report” shall mean any Adverse Drug Experience Report
that involves an Adverse Drug Experience or any other event which would constitute a “serious”
Adverse Drug Experience under the Act, including, without limitation, 21 C.F.R Parts 20, 310, 312,
314 and 600 — Expedited Safety Reporting Requirement for Human Drug and Biological Products;
Federal Register Vol. 62, No. 194, pp. 52237-52253; Tuesday, October 7, 1997.

     “Specifications” shall mean the internal control and regulatory specifications for the
Products set forth on Exhibit A.

     “Standard Costs” shall be Andrx’s standard manufacturing cost as of January 1, 2005
for the applicable Conforming Product, as modified and reflected in accordance with Exhibit
B.

     “Supply Failure Notice” shall have the meaning set forth in Section 3.3.

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     “Takeda Arrangement” has the meaning set forth in the Agreement to License.

     “Term” has the meaning set forth in Section 6.1.

     “Territory” shall mean the United States of America, United Kingdom and any other
jurisdiction which approves an Other Country Application filed by Andrx for Products.

     “Trademark” shall mean any domestic or foreign registered or unregistered mark for
Altoprev, including but not limited to U.S. Registration No. 2911749 as well as any domestic or
foreign registered or unregistered mark for Fortamet, including but not limited to any registered
or unregistered mark for Fortamet, including but not limited to U.S. Serial No. 78115656, together
with any related marks, brands, logos, trade dress or designs, whether registered or unregistered.

Article II.

Manufacture and Supply of the Products

     2.1 Manufacturing and Supply.

          2.1.1 Obligations of Purchaser. During the Term, Purchaser shall purchase its entire
requirement of the Products exclusively from Andrx, except as provided in Sections 5.2 and 11.13.

          2.1.2 Obligations of Andrx. During the Term, Andrx shall manufacture and sell to
Purchaser all of Purchaser’s requirements (subject to the provisions of Article III) of the
Products on an exclusive basis within the Territory, subject to the exceptions set forth in Article
9 of the Agreement to License. Andrx shall manufacture the Products in the Facility. Andrx shall
obtain necessary regulatory approvals prior to manufacturing the Products in any other facility.

     2.2 Capacity. Andrx represents and warrants that it has and will continue to have at
all times during the Term the capacity to produce minimum annual volumes of Altoprev tablets of
various Dosages and Fortamet tablets of various Dosages. If at any time Purchaser’s volume
requirements for either of the Products exceeds the foregoing amounts, Purchaser will promptly
advise Andrx of same and Andrx will use its commercially reasonable efforts to increase its
capacity as soon as practicable, to meet Purchaser’s forecasted volume requirements; provided that
Andrx will not be required to increase its manufacturing capacity in order to accommodate volumes
in excess of the foregoing amounts unless Purchaser agrees to pay the incremental out-of-pocket
costs required to increase such capacity, either through increases in the Standard Costs or in
another mutually satisfactory manner. If Purchaser makes such request and Andrx refuses to
increase capacity as so requested, Purchaser will have the right to use or make the Manufacturing
Intellectual Property available to a third party manufacturer pursuant to Section 5.2 to satisfy
any capacity shortfall, provided Andrx is paid for its time and costs involved in assisting in this
initiative and further provided that Andrx shall have the right to select the third party
manufacturer to satisfy the capacity shortfall and shall do so diligently and in good faith. Upon
request of Purchaser and subject to good faith agreement on pricing, Andrx shall use commercially
reasonable efforts to increase its manufacturing capacity so that it can manufacture and distribute
the Products for sale outside the United States, to the extent required to sell

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Products outside the United States. Nothing in this Agreement will prohibit Purchaser from
selling Products outside the United States.

     2.3 Packaging. If requested by Purchaser, and subject to Andrx’s right to subcontract
certain obligations pursuant to Section 11.5, Andrx shall package the Products with labels, product
inserts and other labeling as specified in Exhibit C. From time to time, Purchaser may, in
its sole discretion, make changes to labels, product inserts and other labeling for the Products,
which changes shall be prepared by Purchaser and provided to Andrx for review, approval and
submission to any Governmental Authority required to review or approve such change prior to or
effective with the effectuation of such change. Andrx shall not be permitted to withhold approval
for such change if such change is required by Law, unless such change does not comply with
applicable Law. In connection with Opening Inventory Products and Products ordered by Purchaser
during the six months immediately following the Effective Date, Andrx will be entitled to utilize
supplies of packaging, labels and inserts on hand and on order as of the date hereof, including
items reflecting brands and trademarks owned by Andrx. Purchaser will have the right to sell such
Products in accordance with this Agreement. Except as described in the fourth sentence of this
Section 2.3, Andrx’s brand shall not appear on the label nor anywhere else on the Products unless
required by a governmental authority or applicable Laws or as it appears on the existing and
in-transition inventory provided by Andrx to Purchaser at the Effective Date in accordance with the
terms and conditions set forth in the Agreement to License. Subject to the foregoing, Purchaser
shall provide all designs and artwork necessary to produce packaging, labeling and inserts for the
Products which shall be implemented into Product production immediately unless otherwise specified
by Purchaser. If the designs and artwork provided by Purchaser result in an increase in the
packaging cost incurred by Andrx, then Andrx shall give prompt notice of such increase to Purchaser
and the Per Unit Price shall increase by the amount of such additional cost. If Purchaser requests
that Andrx subcontract its obligations under this Section 2.3 to a different third party, Andrx
shall attempt in good faith to enter into an arrangement with such third party as soon as
reasonably practicable.

     2.4 Quality Control and Assurance.

          2.4.1 Manufacturing Requirements. Andrx shall manufacture, package, label, store,
test and ship the Products in accordance with: (a) all applicable Laws, (b) the Specifications,
including requirements for Product dating, (c) the requirements of the approved NDAs and any Other
Country Application and (d) the Quality Assurance Agreement. Andrx’s responsibilities and
obligations described in the foregoing sentence are hereinafter referred to as the
“Manufacturing Requirements”. Andrx shall perform such quality control and quality
assurance testing as is required (but in no event less than as generally practiced in the
pharmaceutical manufacturing industry) to ensure that the Products comply with all of the
Manufacturing Requirements. If the Products as manufactured by Andrx fail to meet the
Manufacturing Requirements, Andrx shall, at its sole cost and expense, manufacture additional
Products to replace such defective Products. Replacement of such non-conforming Products shall be
Purchaser’s sole remedy for such failure, except to the extent provided elsewhere in this
Agreement. In such circumstances, Purchaser will have no obligation to purchase or pay for any
rejected Products, but shall pay for the replacement product.

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          2.4.2 Certificate of Analysis. Each time Andrx ships the Products to or on behalf of
Purchaser, it shall provide Purchaser with a “Certificate of Analysis” that sets out the
actual test results for each lot of the Products, certifies that the Products shipped to Purchaser
have been evaluated by Andrx and that the Products comply with the Manufacturing Requirements and
describes the Products, Product numbers, lot numbers, expiration dates and test results for the
Products, in each case as required by the NDA for such Product. Products that meet the foregoing
are referred to as “Conforming Products.” Andrx shall not under any circumstances ship
Non-Conforming Products (as defined in Section 2.4.3) to Purchaser. Andrx shall also provide
Purchaser with Material Safety Data Sheets as required for the Products, and updates of same as
necessary.

          2.4.3 Rejection of the Products. Purchaser shall inspect each lot of the Products
manufactured by Andrx within thirty (30) days after the later of: (a) the date of Purchaser’s
receipt of such lot of the Products, or (b) the date of Purchaser’s receipt of the Certificate of
Analysis applicable to a Product, in order to determine whether a Product meets the Manufacturing
Requirements. Purchaser shall provide Andrx with written notice (a “Deficiency Notice”),
promptly, and, in no event later than ten (10) days, after determining that: (a) any of the
Products do not conform to the tests results as shown on the Certificate of Analysis or the
Manufacturing Requirements (“Non-Conforming Products”), or (b) the amount of delivered
Products in a lot is less than the amount ordered by Purchaser. Purchaser’s failure to notify
Andrx within the stipulated period will be deemed, for purposes of this Agreement, as Purchaser’s
acceptance of such lot of the Products, however, such acceptance will not limit Purchaser’s right
to reject such Product for latent defects discovered by Purchaser or Purchaser’s customer(s) after
such stipulated period has expired. If a Deficiency Notice relates to a shortage in the delivered
Products, then the parties shall deal with such shortage in accordance with normal commercial
practices. If a Deficiency Notice relates to Non-Conforming Products, then Purchaser shall return
to Andrx, at Andrx’s expense, all shipments of Non-Conforming Products. Andrx shall bear all cost
and responsibility for disposing of any Non-Conforming Products returned by Purchaser to Andrx.
Andrx will have no liability for any deviations or shortages for which it has not received notice
within such thirty (30) day period, except with respect to (i) Product Recalls and Product Returns
as provided in Sections 7.6 and 7.7, respectively and (ii) indemnification obligations under
Article X. Upon receipt of a Deficiency Notice relating to Non-Conforming Products, Andrx will
have ten (10) days to notify Purchaser in writing that it either: (x) agrees that the subject
Products are Non-Conforming Products or (y) disputes Purchaser’s determination that the Products
are Non-Conforming Products. If any dispute arises as to whether the subject Products are
Non-Conforming Products, then the parties shall mutually select an independent laboratory to
evaluate whether the Products are Non-Conforming Products. If the evaluation certifies that the
subject Products are Non-Conforming Products or Andrx agrees that the subject Products are
Non-Conforming Products, then Andrx shall, within thirty (30) days of such determination, replace
such returned Non-Conforming Products at its expense or, if it is unable to make prompt
replacement, either credit Purchaser’s account or refund any payment made on the rejected Products,
depending on Purchaser’s account balance as Purchaser’s sole remedy with respect to such
Non-Conforming Products, except to the extent provided elsewhere in this Agreement.

          2.4.4 Stability Testing. Andrx shall conduct stability testing on the Products as
required by GMPs and in accordance with the protocols approved in the NDA and any applicable

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Other Country Application. Andrx shall comply with the Quality Assurance Agreement in making
any changes to these testing procedures or specifications for stability testing. If any lot of
Products fails stability testing, Andrx, after consulting with Purchaser, shall determine the
Proceedings and methods to be undertaken to investigate the causes of such failure. Andrx shall
bear the cost of such investigation. Andrx shall provide any and all data and results relating to
the stability testing upon request by Purchaser, or as such results are generated.

          2.4.5 Product Line Extensions. If requested by Purchaser, Andrx will reasonably
consider developing and/or manufacturing an extension to Altoprev and/or Fortamet, including
combination products other than the products expressly permitted by the Takeda Agreement or the
Alzheimer’s Field of Use.

          2.4.6 Performance Credit. If (i) the aggregate quantity of Conforming Products
shipped by Andrx to Purchaser in any calendar quarter, in the case of Fortamet and any calendar
quarter following [xxxx]*, in the case of Altoprev, is less than [xxxx]* of the amount ordered by
Purchaser for such calendar quarter, (ii) the amount ordered is in accordance with the Forecast for
such quarter and not in excess of the maximum available capacity designated for the Product, and
(iii) such deficiency continues (in whole or in part) for at least ten (10) days, then, in addition
to any other right or remedy of Purchaser under this Agreement, Andrx will issue a credit,
applicable against the current invoiced amount, in an amount equal to [xxxx]* of the aggregate
price of the Products in such purchase order. [xxxx]*. The provisions of this Section 2.4.6 shall
not be applicable for any deficiency resulting from a Force Majeure event or an amount specified in
a Purchase Order to the extent it exceeds the maximum amount specified in Section 3.2.4.

     2.5 Sale of Inventory. All Opening Inventory Products sold by Andrx to Purchaser
pursuant to the Agreement to License shall be subject to the terms hereof.

Article III.

Forecasts, Purchase Orders and Delivery

3.1 Forecasts. Attached hereto as Exhibit D is an initial Forecast (as
hereinafter defined) of Purchaser’s expected requirements for Products for the periods set forth
therein (including a break-down of commercial quantities, dosages, samples and safety stock) . Not
less than ninety (90) days prior to the beginning of each subsequent calendar quarter, Purchaser
shall provide Andrx with a written, good faith, forecast (each, a “Forecast”) of the
expected volume of each Product that Purchaser expects to require during the immediately following
four (4) calendar quarters (including a break-down of commercial quantities, samples, and safety
stock). Each Forecast shall set forth Purchaser’s expected requirements on a month-by-month basis.
Purchaser’s sole obligations with respect to any Forecast will be (i) to purchase the volume of
Products set forth in such Forecast for the first calendar quarter commencing at least ninety (90)
days after such Forecast is delivered to Andrx (the “Firm Order Period”), as provided in
Section 3.2.3 below, and (ii) to have its purchase requirements for the calendar quarter
immediately following the Firm Order Period (the “Second Quarter”) be within the
requirements set forth in Section 3.2.4.

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     3.2 Purchase Orders.

          3.2.1 Delivery of Purchase Order. Upon execution of this Agreement and at least
thirty (30) days prior to the start of each calendar quarter, Purchaser shall provide a written
“Purchase Order” to Andrx for such following quarter that sets forth the following
information:

     (a) the identity of each Product ordered (including a break-down of commercial
quantities, safety stock (if any), dosages and samples);

     (b) the quantity of each Product ordered;

     (c) the Per Unit Price for each Product ordered and the total amount to be remitted by
Purchaser;

     (d) any special packaging, handling or labeling instructions;

     (e) the delivery destination for each Product;

     (f) the delivery date for each Product;

     (g) any other special instructions regarding the Products not inconsistent with this
Agreement; and

     (h) a reference to this Agreement.

          3.2.2 Acceptance of Purchase Order. Andrx shall accept any Purchase Order submitted
by Purchaser that complies with the requirements of Section 3.2.1 and may, in its discretion,
accept any Purchase Order that does not comply with Section 3.2.1, and in either case shall deliver
notice of its acceptance to Purchaser within five (5) days of its receipt of the Purchase Order;
provided, that Andrx’s failure to deliver such notice will not constitute non-acceptance of any
Purchase Order that complies with Section 3.2.1. Notwithstanding anything in this Agreement to the
contrary, Andrx shall have no obligation to deliver Product with respect to any Purchase Order for
a particular Dosage of Altoprev until it shall have met the Initial Trigger (as defined in the
Agreement to License) with respect to such Dosage and shall have been paid by Purchaser the portion
of the Holdback Amount (as defined in the Agreement to License) then payable with respect to such
Dosage.

          3.2.3 Performance of Purchase Order. If Purchaser submits a Purchase Order that
complies with Sections 3.2.1 and 3.2.2, or is otherwise accepted by Andrx, Andrx shall deliver the
Products so ordered to Purchaser in accordance with the terms of the Purchase Order and this
Agreement.

          3.2.4 Second Quarter. Unless otherwise agreed by Andrx, the volumes set forth in any
Purchase Order for the Second Quarter shall be at least eighty five percent (85%) of the volumes
ordered pursuant to the Purchase Order for the preceding Firm Order Period, and shall not exceed
one hundred fifteen percent (115%) of the volumes ordered pursuant to the Purchase Order for the
preceding Firm Order Period.

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          3.2.5 Transmission of Purchase Order; Governing Terms. Purchaser may submit a
Purchase Order to Andrx by facsimile transmission or e-mail, and Andrx shall confirm receipt of
each Purchase Order by facsimile transmission or e-mail. The terms set forth on any of Purchaser’s
Purchaser Order forms shall be of no effect except as to quantities and delivery dates consistent
with this Agreement.

          3.2.6 Introduction of Generic Products. Notwithstanding anything set forth in this
Section 3.2 and subject to the final sentence of this Section 3.2.6, if any third-party introduces
a generic form of a Product, in the same Dosage, Purchaser will not be obligated to issue a
Purchase Order for or purchase the forecasted volume for such Product or comply with its
obligations set forth in Section 3.2.4 in respect of such Product. In such event, Purchaser and
Andrx shall negotiate in good faith a revision to the forecast to reflect the effect of such
introduction. Purchaser shall honor all Purchase Orders that have been accepted by Andrx and shall
reimburse Andrx for all unused raw materials and packaging purchased in accordance with outstanding
forecasts for the succeeding two calendar quarters; provided, however, that Andrx shall use
commercially reasonable efforts to utilize any such unused raw materials and packaging materials in
an effort to mitigate Purchaser’s obligation set forth in this sentence.

     3.3 Delivery. Andrx shall deliver to Purchaser the amount of Products ordered by
Purchaser in accordance with the delivery terms set forth in the Purchase Order. Notwithstanding
anything to the contrary contained herein, Andrx shall not be required to deliver Products to
Purchaser less than one hundred twenty (120) days after its receipt of the applicable Forecast;
provided, that Andrx shall use commercially reasonable efforts to reduce its cycle time for the
manufacture of the Products but shall have no liability solely as a result of its failure to
achieve any level of cycle time reduction. Unless otherwise provided in a Purchase Order, title to
the Products and the risk of loss shall pass from Andrx to Purchaser F.O.B. at Andrx’s Facility,
and Purchaser shall be responsible for shipping costs related thereto. The parties may mutually
agree to modify the date of delivery. Andrx shall promptly notify Purchaser in writing if for any
reason Andrx has reason to believe that it will be unable to supply on a timely basis the
quantities of Product ordered by Purchaser (a “Supply Failure Notice”), but notification
shall not relieve Andrx from any obligation hereunder or limit any right or remedy of Purchaser in
respect of Andrx’s failure.

     3.4 Purchase of Products. All purchases of the Products shall be made solely pursuant
to this Agreement and the terms required by Section 3.2 in each Purchase Order submitted by
Purchaser to Andrx hereunder. This Agreement, the Agreement to License and the Purchase Orders
constitute the entire and exclusive statement by the parties of the terms of their agreement
regarding the manufacture and sale of the Products, notwithstanding any additional or different
terms (including, without limitation, preprinted terms and conditions) contained in any Purchase
Order, acknowledgment, invoice or other form furnished by either party. All such additional and
different terms are hereby specifically rejected by the parties. All prior and contemporaneous
proposals, negotiations, representations and agreements are merged into this Agreement.

     3.5 Monthly Reports. Andrx shall provide Purchaser, on a monthly basis, manufacturing
and supply reports containing reasonable and customary information on the status of outstanding
Purchase Orders, including: (i) a schedule of all work in progress, (ii) shipping

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information, expiration dating, lot numbers and release data, and the sufficiency of raw
materials on hand to cover open purchase orders, (iii) third party packaging information for all
packagers of Purchaser’s product, including status of all outstanding Purchase Orders and inventory
on hand at each such packager, and (iv) such other information as Purchaser may, from time to time,
reasonably request from Andrx.

Article IV.

Price and Payment

     4.1 Prices. The “Per Unit Price” for each Product (other than samples) shall
be equal to the [xxxx]* The Per Unit Price for samples shall be equal to [xxxx]*

     4.2 Payment. Purchaser shall pay to Andrx the amount properly invoiced by Andrx for
delivered, Conforming Products within thirty (30) days after Purchaser’s receipt of such invoice.
If Purchaser disputes in good faith the amount of any invoice, Purchaser shall pay Andrx the
undisputed portion of such invoice pending resolution of such dispute. Andrx shall not invoice
Purchaser for Opening Inventory Products of Fortamet, payment for which is included as part of the
Fortamet Amount under the Agreement to License.

          4.2.1 Payment Credits. Purchaser shall receive a payment credit of [xxxx]* per month
towards the Products purchased under its Purchase Orders for the [xxxx]* of this Agreement and a
payment credit of [xxxx]* per month towards the Product purchased under its Purchase Orders for the
subsequent 12 month period.

     4.3 Manner of Payments. All sums due under this Agreement shall be payable in United
States dollars by wire transfer of immediately available funds to such bank account(s) as Andrx
shall designate.

     4.4 Interest on Late Payments. If Purchaser fails to make timely payment of all
amounts not subject to a bona fide dispute pursuant to this Article IV, then following five (5)
days’ written notice from Andrx, interest shall accrue on the past due amount at a rate equal to
the prime rate effective for the date such payment is due, as published in the Wall Street Journal,
plus (i) two percent (2%) for the first thirty (30) days such payment is delinquent or (ii) four
percent (4%) thereafter.

     4.5 Adjustments to Per Unit Price.

          4.5.1 Product Changes.

     (a) Each party shall promptly inform the other party of any proposed changes to the
Products required by applicable Law. Andrx shall institute any such changes to the Products
required by Law and shall bear all of its costs and expenses associated with implementing
such changes. The parties shall mutually agree on an adjustment to the Per Unit Price
reflecting any additional expense to be incurred by Andrx (including costs of equipment)
resulting from ongoing compliance with such Law; provided, that, there shall be no increase
in the Per Unit Price from the Closing contemplated by the Agreement to License if such
requirement to change is promulgated: (i) in the case of Fortamet, within six months from
such Closing, and (ii) in the case of Altoprev, within one year from such

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Closing. If the parties are unable to agree to any permitted increase, then the
parties shall, at their joint expense, engage a qualified third party to determine the
appropriate adjustment to the Per Unit Price.

     (b) Any discretionary changes to the Products requested by Purchaser shall be subject
to the approval of Andrx, which approval shall not be unreasonably withheld. Andrx will
provide Purchaser with a good faith estimate of the additional expense, if any, Andrx would
incur as a result of such change. If Purchaser decides to proceed with the changes after
receiving Andrx’s estimate of the additional expense, then the parties shall then mutually
agree on an adjustment to the Per Unit Price reflecting the additional expense to be
incurred by Andrx (including costs of equipment). Andrx shall provide reasonable
documentation of all additional expenses incurred in connection with implementing the
discretionary change, subject to Section 11.19.

     (c) Andrx may make discretionary changes to the Products other than with respect to
labeling and packaging; provided, that, such changes do not adversely affect the supply of
the Products and such Products remain Conforming Products.

     (d) Any change to the Products made in accordance with this Section shall constitute
additional Intellectual Property which is deemed licensed, without further action required
by either party, to Purchaser pursuant to the terms of the License Agreement.

          4.5.2 Annual Adjustments. At the beginning of each calendar year, the Per Unit
Purchase Price shall be adjusted for inflation as follows: the portion of the Standard Cost not
associated with the API shall be adjusted for inflation by: (a) taking the product of: (y) the
Standard Cost not associated with the API in the calendar year preceding the calendar year in which
the inflation adjustment is being made and (z) the percentage increase in the pharmaceutical price
sub-index of the producer price index published by the Bureau of Labor Statistics for the calendar
year preceding the calendar year in which the inflation adjustment is being made, and (b) adding
the resulting product to the Standard Cost not associated with the API for the calendar year
preceding the calendar year for which the inflation adjustment is being made.

          4.5.3 Other Adjustments. If at any time API for any Product increases or decreases
from the amount included in the Standard Cost set forth in Exhibit B (the “Benchmark
API”), Andrx shall change the Per Unit Cost for the Product once the API purchased at the
Benchmark API price for use by Purchaser has been depleted, using the same costing methodology
employed by this Agreement. [xxxx]*

     4.6 Other Expenses. Except for the amounts for which Purchaser is expressly obligated
to pay hereunder, Andrx shall bear all costs and expenses to manufacture the Products and to
fulfill its obligations under this Agreement.

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Article V.

Intellectual Property Licenses

     5.1 License of Trademark. Purchaser hereby grants to Andrx (at Purchaser’s sole
discretion) a revocable, non-exclusive, royalty free and non-transferable license, with the right
to sublicense solely to Affiliates of Andrx, to use the Trademarks in the Territory for the limited
purpose of Andrx performing the obligations of Andrx under this Agreement. Upon expiration or
termination of this Agreement for any reason, the above license to use the Trademarks shall
immediately terminate without any action by Purchaser. All goodwill associated with the use of the
Trademarks under this Agreement shall inure to the benefit of Purchaser.

     5.2 License of Manufacturing Intellectual Property. Andrx hereby grants to Purchaser
an irrevocable (except as provided below), non-exclusive, and royalty-free license to use and
employ the Manufacturing Intellectual Property, solely for the purpose of manufacturing or having
manufactured the Products. Purchaser shall not exercise its rights to the foregoing license except
under the following limited circumstances: (a) Andrx is declared insolvent or bankrupt by a court
of competent jurisdiction; a voluntary petition of bankruptcy is filed in any court of competent
jurisdiction by Andrx; or this Agreement is assigned by Andrx for the benefit of creditors; (b) in
the case of [xxxx]*, for a [xxxx]* during the term of this Agreement, Andrx fails to provide
Purchaser with at least [xxxx]* of its requirements for Products set forth in [xxxx]* or more of
the proper Purchase Orders delivered during such [xxxx]*, for any reason other than the
unavailability of API; (c) in the case of [xxxx]*, for a consecutive, rolling [xxxx]* period
commencing on or after [xxxx]* during the term of this Agreement, Andrx fails to provide Purchaser
with at least [xxxx]* of its requirements of Products set forth in [xxxx]* or more of the proper
Purchase Orders delivered during such [xxxx]*, for any reason other than the unavailability of API;
(d) Purchaser terminates this Agreement pursuant to Section 6.2.3 in respect of Andrx’s breach of
its obligations under this Agreement; (e) Andrx terminates this Agreement pursuant to Section
6.2.2; (f) Andrx fails to use commercially reasonable efforts to increase its capacity as provided
in Section 2.2; or (g) as provided in Section 11.13 upon the expiration of the time period therein
provided for the resolution of a Force Majeure event. If any such event occurs, Purchaser will
have the right to sublicense or transfer, or both, this license to a third party for the
manufacture of Product. The license granted to Purchaser under this Section 5.2 will terminate
automatically without any further action of Purchaser upon the termination of this Agreement by
Purchaser pursuant to Section 6.2.1, or by Andrx pursuant to Section 6.2.4 or 6.2.5.

Article VI.

Term and Termination

     6.1 Term. The term of this Agreement shall commence on the Effective Date and shall
extend for an initial term of ten (10) years thereafter, unless earlier terminated in accordance
herewith (collectively, the “Term”).

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     6.2 Termination.

          6.2.1 Termination by Purchaser without Cause. Purchaser may terminate this Agreement
at any time after the fifth anniversary of the Effective Date, without cause, by providing Andrx
with written notice at least 180 days prior to the date of termination.

          6.2.2 Termination by Andrx without Cause. Andrx may terminate this Agreement at any
time after the fifth anniversary of the Effective Date, without cause, by providing Purchaser with
written notice at least two (2) years prior to the date of termination.

          6.2.3 Termination by Purchaser for Material Breach. Purchaser may terminate this
Agreement in respect of a material breach by Andrx of this Agreement or any representation,
warranty or covenant contained herein (a “Material Breach”) if Andrx fails to cure such
Material Breach within sixty (60) days after receipt of written notice from Purchaser specifying
the Material Breach in sufficient detail to give Andrx adequate notice of and opportunity to cure
such Material Breach.

          6.2.4 Termination by Andrx for Material Breach. Andrx may terminate this Agreement in
respect of a Material Breach by Purchaser if Purchaser fails to cure any such breach within thirty
(30) days after receipt of written notice from Andrx specifying the Material Breach in sufficient
detail to give Purchaser adequate notice of and opportunity to cure such Material Breach.

          6.2.5 Termination for Insolvency or Bankruptcy. Either party may immediately
terminate this Agreement upon written notice to the other party in the event that: (a) the other
party is declared insolvent or bankrupt by a court of competent jurisdiction; (b) a voluntary
petition of bankruptcy is filed in any court of competent jurisdiction by such other party; or (c)
this Agreement is assigned by such other party for the benefit of creditors.

          6.2.6 Termination for Governmental Action. Purchaser may terminate this Agreement as
to any Products upon thirty (30) days’ written notice in the event that any Governmental Authority
takes any action or raises any objection that prevents Purchaser from selling the Products in the
Territory.

     6.3 Effect of Termination.

          6.3.1 Termination of Rights and Obligations. On the date of termination or expiration
of this Agreement, all rights and obligations granted under or imposed by this Agreement will cease
and terminate, except as set forth in Section 6.4. Except as provided in Section 6.3.2, and
notwithstanding any other provision to the contrary contained herein, such expiration or
termination shall not affect any claim, demand, liability or right of a party arising pursuant to
this Agreement prior to the expiration or termination hereof.

          6.3.2 Transitional Matters.

     (a) The exercise by Purchaser or Andrx of the right to terminate this Agreement under
Section 6.2 will not affect any Purchase Order that was delivered to Andrx and accepted by
Andrx in accordance with this Agreement and that is outstanding

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on the date that such right is exercised, except that, in the case of a termination by
Purchaser pursuant to Section 6.2.3, Purchaser will have the right to terminate any
outstanding Purchase Order in whole or in part.

     (b) Andrx agrees that the continuity of supply of Products is critical to the success
of Purchaser’s business. In the event that either party terminates this Agreement, Andrx
will use commercially reasonable efforts (subject to cost allocations as provided below) to
provide for the continued supply of Products to Purchaser on the terms (including pricing)
under this Agreement, and an amicable transition of manufacture of the Products. If
Purchaser terminates this Agreement, Andrx will use commercially reasonable efforts to
assist Purchaser in the transfer of the manufacturing of the Products to a manufacturer of
Purchaser’s choosing, provided such manufacturer agrees, in a writing reasonably acceptable
to Andrx, to limit its application of the manufacturing know-how it obtains by or through
Andrx for the application of the SCOT technology solely to the Products. In addition, in
the event Purchaser terminates this Agreement pursuant to Section 6.2.3, Andrx shall, if
requested by Purchaser, continue to fill orders for Products in accordance with this
Agreement, until such time as the new site for manufacturing the Products is qualified by
the FDA to manufacture the Products not to exceed [xxxx]*.

     (c) In the case of [xxxx]*, unless such transition is caused by a termination of this
Agreement due to Force Majeure, [xxxx]* shall be responsible for the payment of all
reasonable third party costs and out of pocket expenses incurred by [xxxx]* in performing
any activities relating to the manufacturing transfer of [xxxx]*, if [xxxx]* requests such
transfer.

     (d) In the case of [xxxx]*, if such transition is a result of [xxxx]* breach of this
Agreement or is caused by a termination of this Agreement due to Force Majeure, then [xxxx]*
shall be responsible for the payment of all reasonable third party costs and out of pocket
expenses incurred by [xxxx]* relating to the manufacturing transition of [xxxx]*.

     (e) In the case of any transition of the manufacturing other than due to the
circumstances contemplated in subsections (c) and (d) above, including, without limitation,
due to [xxxx]* excess capacity needs as contemplated by Section 2.2 or upon a permitted
termination by [xxxx]* without cause pursuant to Article VI, then [xxxx]* shall be
responsible for the payment of all reasonable third party costs and out of pocket expenses
relating to the manufacturing transition.

     (f) Upon termination of this Agreement other than for breach by Andrx (or such later
completion of Andrx’s commitment to supply Product hereunder following a termination for
other than breach), Purchaser shall reimburse Andrx for all unused raw materials and
packaging purchased by Andrx in accordance with outstanding forecasts for the succeeding two
calendar quarters; provided, that, if requested by Purchaser, Andrx shall use commercially
reasonable efforts to utilize such unused materials into the market and, to the extent not
utilized, shall deliver such unused raw materials and packaging to Purchaser or its
designee. Upon termination of this Agreement by Purchaser for breach

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     by Andrx, Purchaser shall have no obligation to reimburse Andrx for unused raw
materials and packaging.

          6.3.3 Business Disruption. No party shall be liable to another party hereto for
damages, losses, indemnity, compensation, costs or expenses of any kind or character whatsoever on
account of the expiration or termination of this Agreement, whether such damages, losses, costs or
expenses arise from loss of prospective sales, or expenses incurred or investments made in
connection with the establishment, development or maintenance of a party’s business, creation of
goodwill, markets and customers for the Products or any other reason whatsoever.

     6.4 Survival. The following provisions shall survive the termination or expiration of
this Agreement for a period of ten (10) years: Section 5.2, Article VI, Article VII, Article VIII,
Article IX, Article X, and Section 11.14.

Article VII.

Regulatory Matters and Product Returns

     7.1 Regulatory and Legal Matters. Except as otherwise provided in this Article VII,
Andrx and its Affiliates will have the sole authority and responsibility to obtain and maintain any
FDA or other Governmental or Regulatory Authority approvals with respect to the Products,
including, without limitation, those relating to labels, labeling, package inserts and packaging
used in connection with the Products. Each party shall, promptly upon receipt of any communication
from the FDA or from any other Governmental or Regulatory Authority relating to the Products or the
API generally, forward a copy or description of the same to the other party and respond to all
inquiries by the other party relating thereto. Each party shall provide the other party in advance
with a copy of any proposed written communication with the FDA or any other Governmental or
Regulatory Authority, and to the extent any communication reasonably relates to the other party’s
obligations hereunder, shall cooperate with any and all reasonable requests of the other party
concerning any meeting or written or oral communication with the FDA or any other Governmental or
Regulatory Authority. Purchaser will be responsible for providing Andrx with the information it
needs to respond to all FDA inquiries, Notices of Violation, Warning Letters and other actions of
the FDA addressed to Andrx and related to promotional activities, and Andrx shall bear the cost of
such response. Andrx will be responsible for providing Purchaser with the information it needs to
respond to all FDA inquiries, Notices of Violation, Warning Letters and other actions of the FDA
addressed to Purchaser and related to promotional activities and Purchaser shall bear the cost of
such response. Purchaser shall provide Andrx with copies of all final submissions that are
intended to change or modify the packaging, label or labeling for, or the indications of, the
Products, for submission to the FDA. Andrx will remain solely responsible for responding to and
complying with, all FDA inquiries, Notices of Violation, Warning Letters and other regulatory
matters related to manufacturing of the Products by Andrx, including the payment of all expenses
associated with the foregoing.

     7.2 Communication with Regulatory Authorities. Each party shall provide the other
party with copies of all complaints which it receives concerning the Product within five (5)
business days after its receipt of the same provided, that all complaints concerning suspected or
actual Product tampering, damage, contamination or mix-up (e.g., wrong ingredients or incorrect

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labeling) shall be delivered to the other party within two (2) business days of a party’s
receipt of the same. Neither party shall take any other action in respect of any such complaint
that could reasonably be expected to adversely affect the other party without the other party’s
consent, unless otherwise required by Law.

     7.3 Regulatory Information. Each party agrees to provide the other party with all
reasonable assistance and take all actions reasonably requested by the other party that are
necessary or desirable to enable the other party to comply with any Law applicable to the Products
or the API in general. Such assistance and actions shall include, among other things, keeping the
other party informed, commencing within two (2) business days of notification of any action by, or
notification or other information which it receives (directly or indirectly) from, the FDA or any
other Governmental or Regulatory Authority which: (a) raises any material concerns regarding the
safety or efficacy of the Product; (b) indicates or suggests a potential material liability for
either party to third parties arising in connection with the Product or (c) is reasonably likely to
lead to field alert report, recall or market withdrawal of the Products; provided, that neither
party shall be obliged to disclose information in breach of any contractual restriction.

     7.4 Adverse Drug Experience Reports.

          7.4.1 Reporting Adverse Drug Experiences. Each party shall promptly notify the other
party of any potential serious Adverse Drug Experience Reports as defined in 21 C.F.R. Section
314.80(a), within three (3) calendar days after such report becomes known to such party. For all
other Adverse Drug Experience Reports, the notification shall be five (5) calendar days. Each
party shall consult with, and reasonably consider input of the other party in making the
determination whether any complaint, Adverse Drug Experience Report or Serious Adverse Drug
Experience Report must be reported to the FDA or any other Governmental or Regulatory Authority or
any other Person. Andrx will have sole responsibility for evaluating and reporting of Adverse Drug
Experiences to the FDA as required by Law. Prior to reporting any Adverse Drug Experience to the
FDA, Andrx shall deliver to Purchaser copies of any report it proposes to deliver.

          7.4.2 Provision of Reports. In accordance with periodic reporting requirements,
Purchaser shall provide Andrx with copies of all adverse event reports relating to the Product and
submitted to the FDA in accordance with 21 C.F.R. 314.80(c)(1). Within ten business days after
submission, Andrx shall provide Purchaser with copies of all Periodic Adverse Drug Experience
Reports relating to the Product and submitted in accordance with 21 C.F.R. 314.80(c)(2).

          7.4.3 Further Cooperation. Purchaser and Andrx shall enter into such other agreements
as are reasonably necessary to ensure that satisfactory systems and procedures are in place to
effect the effective exchange of safety and other medical information between the two parties as
necessary to fulfill all applicable legal and regulatory requirements.

     7.5 Records and Accounting.

          7.5.1 By Andrx. Andrx shall keep records of the manufacture, testing and shipping of
the Products, and retain samples of such Products in order to comply with applicable

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Law as well as to assist with resolving product complaints and other similar investigations.
Copies of such records and samples shall be made available to Purchaser upon its request and shall
be retained by Andrx and be available to Purchaser for a period of one (1) year after the
expiration dates of the packaged batch, or longer if required by Law.

          7.5.2 By Purchaser. Purchaser shall keep records of the shipping of the Products, and
retain samples of such Products in order to comply with applicable Law as well as to assist with
resolving product complaints and other similar investigations. Copies of such records and samples
shall be made available to Andrx upon its request and shall be retained by Purchaser and be
available to Andrx for a period of one (1) year after the expiration dates of the packaged batch,
or longer if required by Law.

     7.6 Product Recalls.

          7.6.1 Records. The parties shall each maintain records as may be necessary to permit
a recall or a field correction of any the Products delivered to Purchaser or customers of
Purchaser, effected voluntarily or under a threat of, or a directive by, any Governmental or
Regulatory Agency. Each party shall give notice within twenty four (24) hours by telephone (to be
confirmed in writing promptly) or in person to the other party upon discovery that any Products
should be recalled or corrected, or may be required to be recalled or corrected, and, each party
upon receiving any such notice or upon any such discovery, shall cease and desist from further
shipments of such Products in its possession or control until a decision has been made whether a
recall or some other corrective action is necessary. Each party shall co-operate with the other in
developing any necessary recall plan, and the manner and extent of such plan shall be subject to
prior consultation, which consultation shall not unreasonably delay such plan.

          7.6.2 Responsibilities Respecting Recall. Notwithstanding Section 7.6.1, except as
otherwise set forth below in this Section 7.6.2, Andrx and its Affiliates shall make all decisions
(but shall follow requirements of Law) with respect to any recall, market withdrawal or any other
corrective action related to the Products. Andrx shall consult with Purchaser in connection with
such decision. Purchaser will co-operate with Andrx as reasonably required by Andrx with regard to
all applicable Laws. If a recall, discretionary or required by law, results predominately from any
breach by Andrx of the Manufacturing Requirements then: (a) such recall and all reasonable out of
pocket costs and expenses incurred by Purchaser to third parties to perform such corrective action
shall be made at Andrx’s cost and expense, and (b) Andrx shall use its reasonable efforts to
replace the recalled Products with new Products within one hundred twenty (120) days from the date
that Andrx decides to recall the Products. In the event that: (x) Andrx is unable to replace the
recalled Products within this one hundred twenty (120) day period, or (y) such new Products are
also recalled or returned due predominately to a breach by Andrx of the Manufacturing Requirements,
then Purchaser may request Andrx to reimburse Purchaser for the purchase price that Purchaser paid
Andrx for the affected Products plus all of the reasonable out of pocket costs and expenses
incurred by Purchaser to third parties to perform such corrective action. Purchaser will also have
the right to effect a recall, market withdrawal or other corrective action related to the Products
(a “Purchaser Recall”). If Purchaser elects to conduct a Purchaser Recall, then Andrx
shall cooperate to effectuate such recall. Any Purchaser Recall shall be at Purchaser’s expense;
provided, that, if the Purchaser Recall results predominately from a breach by Andrx of the Manufacturing Requirements and results in a bona
fide health and/or safety concern, such recall shall be at Andrx’s expense.

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     7.7 Product Returns. To the extent that any return of Products results solely from
any breach by Andrx of the Manufacturing Requirements, in addition to any other rights and remedies
available to Purchaser at Law or under this Agreement, Andrx shall, at its sole cost, replace the
returned Products with new Products within a period of up to one hundred twenty (120) days from the
date that Purchaser notifies Andrx about the returned Products or sooner if reasonably practicable.
In the event that: (a) Andrx is unable to replace the returned Products within a period of up to
one hundred twenty (120) day period or (b) such new Products are also returned or recalled due
predominately to a breach by Andrx, then in addition to any other right or remedy available to
Purchaser, Purchaser may request Andrx to reimburse Purchaser the purchase price that Purchaser
paid Andrx for the affected Products plus all of the reasonable out of pocket costs and expenses
actually incurred by Purchaser to third parties to perform such corrective action. In all other
circumstances, customer returns shall be made at Purchaser’s cost and expense.

Article VIII.

Representations, Warranties and Covenants

     8.1 Andrx Representations, Warranties and Covenants. Andrx hereby represents,
warrants and covenants to Purchaser as follows:

     (a) Andrx has, and will maintain throughout the term of this Agreement, all permits,
licenses, representations and governmental authorizations and approvals as required by Law
in order for Andrx to execute, deliver and perform its obligations hereunder;

     (b) Andrx shall carry out, or shall cause its Affiliates to carry out, the
manufacturing and distribution of the Product and Andrx’s other obligations and activities
under this Agreement in accordance with: (i) the terms of this Agreement and the Quality
Assurance Agreement; (ii) the Manufacturing Requirements and (iii) all applicable Laws;

     (c) upon delivery, the Products will be free and clear from all liens and encumbrances,
other than any liens and encumbrances that are a result of actions taken by Purchaser;

     (d) the Products will be manufactured at an FDA approved facility and in compliance
with the applicable regulatory requirements for such a facility;

     (e) any new intellectual property to the extent created as a result of any change to
the Product manufacturing process or to the Products or any component thereof will not
infringe any intellectual property rights of any third parties (this representation will
expire after a period of 18 months from the date that Product is first manufactured with the
new intellectual property);

     (f) the Products delivered to Purchaser under this Agreement shall not, at the time of
delivery, be adulterated or misbranded within the meaning of the Act, as amended, or within
the meaning of any applicable Laws in which the definition of adulteration and

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misbranding is substantially the same as that contained in the Act, as such Act and such Laws are
effective at the time of delivery;

     (g) Andrx and its employees, Affiliates and agents have never been (i) debarred or (ii)
convicted of a crime for which a person can be debarred, under Section 306(a) of the Generic
Drug Enforcement Act of 1992 (Section 306 (a) or (b)); and

     (h) the amounts set forth in the Standard Costs identified in Exhibit B
represent the current standard cost for manufacturing Conforming Products, and do not
include any materially significant costs associated with any Products that are
Non-Conforming; and.

     (i) Andrx has never been and, to the best of its knowledge after due inquiry, none of
its employees, affiliates or agents has ever been (i) threatened to be debarred or (ii)
indicted for a crime or otherwise engaged in conduct for which a person can be debarred,
under Section 306(a) or (b). Andrx shall promptly notify Purchaser upon learning of any
such debarment, conviction, threat or indictment.

     (j) For the period prior to August 31, 2005, any and all Altoprev Product delivered by
Andrx to Purchaser shall have an expiration date not less than 15 months from the date such
Product is delivered, unless otherwise accepted by Purchaser, in its sole discretion. For
the period from and after August 31, 2005, any and all Altoprev Product delivered by Andrx
to Purchaser shall have an expiration date not less than 18 months from the date such
Product is delivered, unless otherwise accepted by Purchaser, in its sole discretion.

     (k) Throughout the term of this Agreement, any and all Fortamet Product delivered by
Andrx to Purchaser (other than the Opening Inventory) shall have an expiration date not less
than 18 months from the date such Fortamet Product is delivered.

     8.2 DISCLAIMER OF WARRANTIES. EXCEPT AS SET FORTH IN THIS SECTION 8.2 OR THE
AGREEMENT TO LICENSE, ANDRX GIVES NO OTHER WARRANTY, EXPRESS OR IMPLIED. ALL WARRANTIES,
INCLUDING, WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
OTHER THAN THOSE SET FORTH IN THIS AGREEMENT, ARE EXPRESSLY DISCLAIMED.

     8.3 Purchaser Representations, Warranties and Covenants. Purchaser hereby represents,
warrants and covenants to Andrx as follows:

     (a) Purchaser is properly registered, licensed and qualified, and has all requisite
power and authority under its organizational documents and in accordance with the Laws of
the Territory to market and sell the Products, and to conduct its business and perform its
obligations hereunder and, during the Term of this Agreement and the Quality Assurance
Agreement and any extensions thereof, it shall take all action as may be

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required and necessary to obtain and keep current any governmental licenses, permits,
registrations and approvals that are necessary or advisable for it to carry out its
activities hereunder;

     (b) Purchaser shall carry out its obligations and activities under this Agreement and
the Quality Assurance Agreement in accordance with: (i) the terms of this Agreement and the
Quality Assurance Agreement, and (ii) all applicable Laws.

Article IX.

Confidentiality and Press Releases

     9.1 Confidentiality. For a period of five (5) years following termination of this
Agreement, each party shall hold in confidence and use only in furtherance of its rights and
obligations under this Agreement all Confidential Information that it acquires from the other party
pursuant to this Agreement, unless (a) the Disclosing Party consents to the Receiving Party’s
disclosure or use or (b) disclosure of the Disclosing Party’s Confidential Information by the
Receiving Party is required by law or by order of any Governmental or Regulatory Authority, in
which event the Receiving Party will notify the Disclosing Party of that order as soon as
practicable, shall use reasonable efforts (at the Disclosing Party’s expense) to obtain a
protective order covering the Confidential Information and shall disclose only such Confidential
Information that its legal counsel determines is legally required. Each party shall make
Confidential Information that it acquires from the other party pursuant to this Agreement available
only to those of its Affiliates, directors, officers, employees, consultants, advisors or
representatives who need to have access thereto for the purposes of this Agreement and who are
bound by an obligation of confidentiality consistent with the provisions herein.

     9.2 Press Releases. Except as required by Law (including securities laws and rules of
any securities exchange or quotation system) or any Governmental or Regulatory Authority, neither
party shall make any press release or other public announcement relating to the Agreement or the
transactions described herein without the prior written consent of the other party.

Article X.

Indemnification

     10.1 Indemnification by Andrx. Andrx agrees to defend, indemnify and hold harmless
Purchaser, its Affiliates, officers, directors, employees and agents as provided in the Agreement
to License. Notwithstanding the foregoing, Purchaser shall not be entitled to indemnification with
respect to any matters covered by Sections 2.4.1, 2.4.3, 2.4.6, 7.6 and 7.7 and not involving third
party claims.

     10.2 Indemnification by Purchaser. Purchaser agrees to defend, indemnify and hold
harmless Andrx, its Affiliates, officers, directors, employees and agents as provided in the
Agreement to License.

     10.3 Exclusive Remedy. The rights and remedies set forth in this Agreement and
Article 10 of the Agreement to License shall constitute the sole and exclusive rights and remedies
of either party with respect to this Agreement; provided, that nothing contained in this

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Section shall be deemed to restrict a party from seeking specific performance, an injunction
or other equitable relief to enforce the terms and conditions hereof, nor shall the foregoing
limitation apply in the case of fraud or other willful breach by a party to this Agreement.

     10.4 CONSEQUENTIAL DAMAGES. NO PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR
OTHERWISE RESPONSIBLE TO ANY OTHER PARTY HERETO OR ANY BENEFICIARY HEREOF FOR ANY LOSS OF PROFITS,
DIMINUTION IN VALUE, OR INCIDENTAL, INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES
THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR OTHERWISE AND
WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, EXCEPT AND TO THE EXTENT THAT ANY SUCH
DAMAGES SHALL HAVE RESULTED FROM THE WILLFUL MISCONDUCT OF SUCH PARTY.

Article XI.

Miscellaneous

     11.1 Choice of Law. This Agreement shall be governed by and construed exclusively in
accordance with the law of the State of New York, without regard to the conflicts of law rules of
such state. The parties hereby agree to the non-exclusive jurisdiction of any state or federal
court sitting in New York, New York for purposes of any dispute arising out of this Agreement.

     11.2 Waiver. The waiver by any party of a breach of any provision of this Agreement
shall not operate, or be construed, as a waiver of any subsequent breach.

     11.3 Modification. No change, modification, or waiver of any term of this Agreement
shall be valid unless it is in writing and signed by both parties.

     11.4 Entire Agreement. This Agreement and the Purchase Orders delivered in accordance
herewith constitute the entire agreement between the parties with respect to the subject matter
hereof, and supersede all prior agreements and understandings, whether oral or written, between the
parties.

     11.5 Assignments. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. Neither party may assign
its rights or delegate its duties under this Agreement without the prior written consent of the
other party, except as expressly provided herein. Notwithstanding the foregoing, a party may
assign all or any portion of its rights or delegate its duties to any subsidiary or, in the event
of a merger or sale of all or substantially all of its assets, any successor entity, without the
necessity of obtain the other party’s consent. Andrx may subcontract all or a portion of its
obligations hereunder to any third party without the prior written consent of Purchaser, provided,
that Andrx shall be responsible for such third party subcontractor’s performance in accordance with
this Agreement and such third party shall be bound by an obligation of confidentiality
substantially similar to that by which Andrx is bound hereunder. Any prohibited assignment shall
be null and void and of no force or effect.

     11.6 Independent Contractor. This Agreement shall not be construed as constituting a
partnership, joint venture or any other form of legal association that would impose liability upon
one party for the act or failure to act of the other party, or as providing either party with
the right, power or authority (express or implied) to create any duty or obligation of the other
party.

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     11.7 Third Party Beneficiaries. The parties do not intend, nor will any Section of
this Agreement be interpreted, to create for any person any third party beneficiary rights.

     11.8 Headings. The headings have been inserted for convenience only and are not to be
considered when interpreting the provisions of this Agreement.

     11.9 Time of Essence. Time is of the essence in the performance of this Agreement.

     11.10 Counterparts. This Agreement may be executed in multiple counterparts, each of
which will be deemed an original, but all of which together shall constitute one and the same
instrument.

     11.11 Severability. Each provision of this Agreement will to the extent possible be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited by or invalid under applicable law, such provision will
be ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     11.12 Incorporation of Exhibits. The Exhibits identified in this Agreement and
attached hereto are incorporated herein by this reference and made a part hereof.

     11.13 Force Majeure. If the actual performance of this Agreement (other than the
obligation to pay money) is prevented with by any circumstance beyond the reasonable control of the
party affected, including any act of God (such as fire, flood, earthquake or other natural cause),
terrorist events, riots, insurrections, declared or undeclared war or national emergency, strikes
by laborers of third parties, boycotts by laborers of third parties, lockouts by laborers of third
parties or other labor difficulties by laborers of third parties, the party affected by such
“Force Majeure” event is excused on a day-by-day basis to the extent of the prevention;
provided, that such party notifies the other party as soon as practicable of the nature and
expected duration of the claimed Force Majeure, uses all commercially reasonable efforts to avoid
or remove the causes of nonperformance and resumes performance promptly after the causes have been
removed. If a party is unable to perform its obligations under this Agreement (other than the
obligation to pay money) due to a Force Majeure event for a period in excess of three (3) months,
then the other party may terminate this Agreement with no further obligation to the non-performing
party, subject to Section 5.2. During the foregoing three month period (and without prejudice to
Purchaser’s rights under the preceding sentence), Andrx may, at its election, either: (i) procure
another manufacturer for the Products, such manufacturer to be to the reasonable satisfaction of
Purchaser, or (ii) if Andrx demonstrates to Purchaser’s reasonable satisfaction that it would be
more expeditious for Andrx to continue manufacturing the Products than to qualify another
manufacturer, Andrx may continue to manufacture the Products on the terms of this Agreement.

     11.14 Disputes. If there is a dispute arising out of this Agreement that cannot be
reasonably resolved in the ordinary course of business, either party may initiate the dispute
resolution process by providing written notice to the other party’s first level of dispute
management of the nature of the dispute accompanied by relevant documents and facts supporting
the party’s position. The other party shall have ten (10) business days to provide its

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written answer accompanied by relevant documents and facts supporting the party’s position. Within ten
(10) business days following delivery of the answer, if the parties have not agreed to a resolution
of the dispute or mutually agreed to extend the time for resolution of the dispute, the second
level management of each party shall meet and negotiate in good faith to resolve the dispute. If
the parties are unable to resolve the dispute within ten (10) business days thereafter or mutually
agree to extend the time for resolution of the dispute, either party may seek resolution of the
dispute through litigation, or if both parties agree, through binding arbitration. Notwithstanding
the foregoing, if a dispute arises that if not immediately resolved would result in immediate and
irrevocable harm to a party (such as a breach of the confidentiality and/or the data protection
provisions of this Agreement), such affected party may seek immediate judicial relief.

     11.15 Notices. All notices or other communications hereunder shall be deemed
sufficient if given in writing, mailed registered mail (return receipt requested), postage paid, or
by facsimile (confirmed by such registered mail) or by courier addressed to the appropriate party
at the address set forth below, or at such other place as such party may designate in writing to
the other party.

	 	 	 
	If to Andrx:

	 	Andrx Pharmaceuticals, Inc.
	

	 	8151 Peters Road, 4th Floor
	

	 	Plantation, Florida 33324
	

	 	Attn: Scott Lodin, Esq.
	

	 	Executive Vice President and General Counsel
	 
	 	 
	If to Purchaser:

	 	First Horizon Pharmaceutical Corporation
	

	 	6195 Shiloh Road
	

	 	Alpharetta, Georgia 30005
	

	 	Attn: Leslie Zacks, Esq.
	

	 	General Counsel

All such notices shall be effective five (5) days following the date of mailing.

     11.16 Permits. Each party shall, at its own expense, obtain and maintain the
necessary permits required to perform its obligations hereunder.

     11.17 Annual Product Review Report. Andrx shall prepare on an annual basis supply
product data, including, without limitation, release test results, complaint investigation results,
and all investigations (in manufacturing, testing and storage) as required by GMPs.

     11.18 Insurance. Each party shall maintain comprehensive general liability insurance,
including blanket contractual liability insurance covering the obligations of that party under this
Agreement through the term of this Agreement and for five (5) years thereafter, which insurance
shall afford limits of not less than $10,000,000 for each occurrence for bodily injury liability,
personal injury liability, products liability, property damage liability, contractual liability and
completed operations liability with an aggregate annual cap of at least $40,000,000. Each party
will provide the other with a certificate of insurance evidencing the above and showing the
name of the issuing company, the policy number, the effective date, the expiration date and the
limits

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of liability. The insurance certificate shall further provide for a minimum of thirty (30)
days written notice to the recipient of a cancellation of, or material change in, the insurance,
subject to the insurer’s agreement to so state on the certificate. Each party shall cause its
insurance policy to name the other party hereto as an additional insured and a loss payee. Each
party’s general liability insurance policy shall contain a waiver of subrogation rights which that
party’s insurer(s) may have against the other party.

     11.19 Audit Rights. During the term of this Agreement, Andrx, its Affiliates and any
sublicensees shall afford Purchaser and its representatives full access, at all reasonable times
and upon reasonable notice to the offices, properties, books, records, officers, employees and
other assets of the Andrx, and shall provide such assistance as is reasonably requested by
Purchaser in order to provide Purchaser a full opportunity to investigate, evaluate and confirm the
accuracy of the invoices and reports provided by Andrx under this Agreement, including, without
limitation, any such invoices or reports relating to Andrx’s: determination of the API cost, the
pharmaceutical price index and packaging costs, in each case in connection with the determination
of the Per Unit Price. Purchaser may exercise the foregoing audit rights once per calendar year,
to be exercised in December or January of each calendar year, unless Purchaser demonstrates a
compelling need to conduct such audit at a different time of year. If an audit concludes that
Andrx has not fully satisfied its obligations under this Agreement or has misstated any of the
foregoing costs or prices resulting in excess payments by Purchaser, then Andrx shall immediately
take action to cure any failure to perform its obligations under this Agreement within the thirty
(30) days period provided in Section 6.2.3, and refund any resulting overpayments within thirty
(30) days of the conclusion of the audit. If an audit concludes that the costs or prices set forth
above were understated, then Purchaser shall pay any additional fees required within thirty (30)
days of concluding such audit. If either party disputes the conclusion of an audit, then the
parties shall engage a qualified arbitrator to resolve the dispute. The fees charged by such
arbitrator shall be paid in equal shares by Purchaser and Andrx; provided, that if the audit
discloses that the payments by Purchaser for the audited period are more than one hundred ten
percent (110%) of the payments required for such period, then Andrx shall pay all fees and expenses
charged by such accounting firm.

     11.20 Manufacturing Forecasting Meeting. The parties shall meet every six months
during the term of this Agreement to discuss the manufacturing capacity of Andrx and shall discuss
in good faith Andrx’s ability to meet the ongoing manufacturing capacity needs of Purchaser.

     11.21 Covenant of Cooperation. The parties covenant to timely and diligently
cooperate to effect the goals, objectives and purposes of this Agreement and to facilitate the
performance of their respective duties and obligations under this Agreement in a commercially
reasonable manner. Further, the parties agree to deal and negotiate with each other diligently and
in good faith in the execution and implementation of their duties and obligations under this
Agreement. There may be functions, responsibilities, activities and tasks not specifically
described in this Agreement which are required for the performance and provision of the parties’
obligations and are an inherent part of, or a necessary element included within, the parties’
obligations. If such functions, responsibilities, activities and tasks are mutually determined by
the parties to be required for the proper performance of the other obligations or are an inherent part, or a
necessary part, thereof, such functions, responsibilities, activities and tasks shall be deemed to
be

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implied by and included within the scope of this Agreement and the obligations established
hereunder to the same extent and in the same manner as if specifically described in this Agreement;
provided, that this Section 11.21 shall not be interpreted to impose any material obligations or
liabilities on any party that are not expressly set forth in this Agreement.

[Signatures on following page]

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     IN WITNESS WHEREOF, this Agreement has been executed by a duly authorized officer of each
party as of the Effective Date.

	 	 	 	 	 
	 	“Purchaser”

FIRST HORIZON PHARMACEUTICAL CORPORATION

 	 
	 	By:  	/s/ Patrick P. Fourteau
 	 
	 	 	Name:  	Patrick P. Fourteau 	 
	 	 	Title:  	CEO and President 	 
	 

	 	 	 	 	 
	 	“Andrx”

ANDRX PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Angelo C. Malahias
 	 
	 	 	Name:  	Angelo C. Malahias 	 
	 	 	Title:  	Executive Vice President 	 
	 

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