Document:

Exhibit 10.29

 EXHIBIT 10.29 
 *Certain portions of this exhibit have been omitted pursuant to a request for confidential 
 treatment which has been filed separately with the SEC. 
 PACKAGING AGREEMENT

 This Agreement (“Agreement”) is entered into as of the 1st day of November, 2011 (the “Effective Date”), by and among
Mylan Institutional Inc. (formerly known as UDL Laboratories, Inc.), a corporation organized under the laws of the State of Illinois, having an address of 12720 Dairy Ashford, Sugar Land, Texas, USA 77478, Mylan Pharmaceuticals Inc., a corporation
organized under the laws of the State of West Virginia, having an address of 781 Chestnut Ridge Road, Morgantown, West Virginia, USA 26505 (Mylan Institutional Inc. and Mylan Pharmaceuticals Inc. shall be collectively referred to herein as
“Mylan”) and Cumberland Pharmaceuticals Inc., a corporation organized under the laws of the State of Tennessee with a place of business at 2525 West End Avenue, Suite 950, Nashville, Tennessee, USA 37203 (hereinafter referred to as
“Cumberland”). Mylan and Cumberland may each be referred to herein individually as a “Party” and collectively as the “Parties.” 
 WHEREAS, Cumberland is the owner of United States ANDA No. 074712 for Lactulose Crystals (the “Crystals”) and any supplements and amendments thereto; and 

WHEREAS, Cumberland has entered into a contract with a third party for the production of such Crystals; and 

WHEREAS, Mylan has the capability to package the Crystals, and Cumberland desires to purchase such packaging (the
“Packaging”) from Mylan and to have Mylan perform certain related Packaging services (the “Packaging Services”), pursuant to the terms and conditions set forth herein. The Packaging which incorporates the Crystals within it shall
sometimes be referred to herein as the “Product”). 
 In consideration of the mutual promises herein made and of the
representations, warranties and covenants herein contained, the Parties, intending to be legally bound, hereby agree as follows: 
 1.
Pricing, Estimated Quantities and Purchase Orders. 
 1.1 Mylan agrees to package the Crystals exclusively for Cumberland
at the prices set forth on Exhibit A, as amended from time to time by Mylan in accordance with this Agreement (the “Prices”). The Prices are based upon an annual minimum packaging volume of [***] ([***]) total pouches (20 gram and 10
gram pouches collectively) (“Minimum Packaging Volume Requirement”). Beginning on the Effective Date, if at any time it reasonably appears to Mylan that Cumberland will not order the Minimum Packaging Volume Requirement, Mylan will provide
written notice to Cumberland. The Minimum Packaging Volume Requirement will apply to each [***] ([***]) month period during the term of this agreement beginning on November 1 and ending on October 31 (“Annual Period”). Within ten
(10) days of receipt of such notice by Cumberland, the Parties will negotiate in good faith and agree on the amount that the Prices will be increased retroactively to the beginning of such Annual Period if Cumberland does not meet the Minimum
Packaging Volume Requirement in such Annual Period. Within five (5) business days of the Parties’ decision, Cumberland will notify Mylan in writing of Cumberland’s decision to either: (1) terminate this Agreement immediately, or
(2) agree to 

 
continue this Agreement and, if Cumberland does not meet the Minimum Packaging Volume Requirement at the end of the Annual Period, pay Mylan the difference between the Prices Cumberland paid
throughout the year and the new higher price agreed upon by the Parties (the “Price Differential”). Mylan shall have the ability to retroactively increase the Prices if Cumberland does not order the Minimum Packaging Volume Requirement in
the event that the shortfall is due to this Agreement being terminated pursuant to Sections 10.2 or 10.4 by Mylan wherein Cumberland has been found to be in breach of this Agreement, or 10.3 by Cumberland, regardless of whether Cumberland has
received written notice from Mylan of the increased Prices at the time of termination. In such event, the Price Differential will be paid by Cumberland for all Packaging ordered by Cumberland in the partial contract year prior to termination, but in
no event shall the price differential exceed the total net profit which would have been realized by Mylan in said calendar year had the Minimum Packaging Volume Requirement in such year been met. 

1.2 Cumberland will provide Mylan a twelve (12) month rolling projection of Packaging orders on a calendar quarterly basis. This
Packaging forecast will be a good faith estimate of the amount of Packaging Cumberland will purchase from Mylan during the following twelve (12) month calendar period. The first three (3) months of such forecast is binding. Mylan will use
commercially reasonable efforts to satisfy all orders submitted by Cumberland. 
 1.3 Cumberland will issue to Mylan written
purchase orders (“Purchase Orders”) covering requirements for a three (3) month calendar period, three (3) months in advance of the requested ship dates. Purchase Orders shall specifically identify the Packaging to be purchased
at the stated Prices then in effect, a reference to the applicable specifications, the quantities and the shipping schedule. The Purchase Order quantity shall be in full batch quantities of [***] ([***]) pouches and [***] ([***]) pouches for the 10
and 20 gram pouches respectively. All other terms of the Purchase Order, including, but not limited to, any terms on the reverse side of the Purchase Order, shall not apply unless agreed in writing in advance by the Parties. Purchase Orders will be
deemed accepted upon receipt, unless Mylan provides notice of rejection within ten (10) business days of receipt of such Purchase Order, but in the event of such rejection, Cumberland shall be permitted to purchase its Packaging requirements
from a third party packager, and such rejected orders shall apply against the Minimum Packaging Volume Requirements set forth in Section 1.1 above. 
 1.4 The Prices shall be fixed for all Packaging ordered and shipped to Cumberland prior to December 31, 2011 and shall be effective for the following 12 months, and thereafter shall be adjusted on
January 1, 2013, and each January 1 thereafter during the Term or extensions thereof by the change in the PPI from (a) December of the year immediately preceding the year of calculation to (b) December of the year of calculation.
Additionally, the Prices shall be adjusted (i) for any increase in the manufacturing cost per unit occasioned by a change in the Specifications (as defined in Section 4.1 below) requested by Cumberland, (ii) for changes in the
manufacturing or packaging process in response to a pronouncement of a regulatory authority or a change in applicable law, (iii) for changes resulting from a force majeure event, (iv) to reflect unanticipated, significant additional costs
incurred upon renewal or replacement of any contract with a third party for the supply of any materials or services used in the manufacture of the Product or (v) to reflect additional costs of manufacture not reasonably within Mylan’s
control. For purposes of this Agreement, “PPI” means the Producer Price Index for Pharmaceutical Preparations (“PPI”) issued by the United States Bureau of Labor Statistics or any successor agency of the United States that issues
such indexes or any successor index. 

  
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 1.5 Other than purchases made by Mylan in the ordinary course of business, Mylan agrees to
consult with Cumberland prior to the purchase of any packaging materials or components for use in the Packaging. To the extent that Cumberland wishes to change the Packaging in any way, Cumberland will bear all of the costs incurred by Mylan in
making any such changes, including, but not limited to, Mylan’s inability to use existing inventories of packaging materials and components. 
 1.6 Upon the Effective Date, Cumberland shall purchase Mylan’s current inventory and pending orders of Crystals as set forth on Exhibit C attached hereto, and such purchased inventory will be
deducted from Cumberland’s Minimum Packaging Volume Requirement. 
 2. Shipment, Packaging, and Delivery. 

2.1 Cumberland shall ship or cause to be shipped to Mylan the necessary amount of Crystals to be packaged by Mylan. Such Crystals shall
be shipped to Mylan early enough to allow ample lead-time for Mylan to complete such orders and ship the Product by the requested ship date. Such Crystals shall be in the form delivered to Mylan prior to the Parties entering into this Agreement.
Notwithstanding the prior sentence, if such Crystals are provided in a different form, such form is to be approved in writing by Mylan in advance, and Cumberland shall be responsible for any costs associated with any such change in the form of
delivery of such Crystals. Once the Crystals are packaged by Mylan, they will be shipped FOB Mylan’s facilities (per INCOTERMS 2000) upon receipt from Cumberland of authorization to ship such Product. If Cumberland does not provide
authorization to ship Product within fifteen (15) days of the confirmed ship date in the Mylan Purchase Order Acknowledgement, Mylan shall have the right to ship such Product without authorization. Cumberland and Mylan shall maintain adequate
insurance coverage for the Crystals while being packaged by Mylan. Ship dates specified by Mylan are best estimates and Mylan’s responsibility will be to use reasonable efforts to meet all specified ship dates. In the event that Mylan is not
able to meet a requested ship date, through no fault of Cumberland, Mylan will, for a ship date missed by thirty (30) days, discount the price by one and one half percent (1.5%) for that portion of the shipment delayed to Cumberland, and
for every ship date missed by sixty (60) or more days, Mylan will discount the price by five percent (5%). Current lead time for Product is four (4) to six (6) weeks. Mylan will periodically advise Cumberland of the then-current lead
time for the Product. In the event Mylan is unable to meet a ship date specified by Cumberland in a particular Purchase Order, Cumberland shall have the right to utilize the services of a third party packager for its Packaging requirements for such
shipment, and such shipment shall apply against the Minimum Packaging Volume Requirement set forth in Section 1.1 above. 

2.2 Mylan shall not be liable for any delay in delivery, or failure to deliver, due to force majeur event, including, without limitation,
fires, floods, labor disputes, acts of sabotage, terrorism, riots, natural disasters, delay in receiving the Crystals, shortages of raw materials and energy supplies, government restrictions, a force majeure event occurring with respect to one of
Mylan’s suppliers, and any other cause beyond Mylan’s reasonable control. In the event of any delay in delivery or failure to deliver, Cumberland shall have the right to utilize the services of a third party packager for its Packaging
requirements for such shipment, and such shipment shall 

  
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apply against the Minimum Packaging Volume Requirement set forth in Section 1.1 above. If any delay or failure to deliver lasts for more than one hundred eighty (180) days, Cumberland
may terminate this Agreement with written notice and the retroactive price increase set forth in Section 1.1 shall not apply to any such termination. 
 3. Payment Terms; Suspension of Agreement. All payments pursuant to this Agreement shall be made by the method agreed to by the Parties and shall be in U.S. dollars. Invoices are due on receipt and
payable in full within [***] ([***]) days from date of invoice. Interest may be charged on any outstanding balance unpaid after [***] ([***]) days from the date of invoice at the rate of [***]% per month or the highest rate permitted by law,
whichever is lower, until such outstanding balance is paid. Mylan may suspend performance under this Agreement if Cumberland fails to remit payment to Mylan for a period of [***] ([***]) days. Any taxes (except taxes based on Mylan’s net
income, or as Mylan is required by law to withhold), duties, fees, charges or assessments of any nature levied by any governmental authority related to the sale of the Product, whether levied against Mylan or against Cumberland, shall be the
responsibility of Cumberland or its agent and shall be paid directly by Cumberland or its agent to the governmental authority concerned. 
 4.
Packaging. 
 4.1 Mylan shall package the Crystals and perform the Packaging Services in accordance with the
specifications set forth in Exhibit B attached hereto and the most current, approved version of the Master Packaging Specification Records (the “Specifications”). 
 4.2 If any Party desires to make a change to the Specifications, such Party shall notify the other of such desire, and the Parties shall meet to discuss any such requested changes. No changes to the
Specifications shall be made without the mutual written agreement of the Parties. However, in the event Mylan is unable or unwilling to accommodate changes to the Specifications reasonably required by Cumberland, Cumberland shall have the right to
terminate this Agreement without penalty to either Party. 
 4.3 During the term of the Agreement, Mylan shall neither directly
nor indirectly (through any other Persons, entity or otherwise) manufacture, package or supply a Competing Product defined as any crystalline lactulose product, to any party or Person other than Cumberland ([***]). 

5. Product Inspection, Acceptance and Rejection. 
 5.1 Upon receipt of the packaged Product from Mylan, Cumberland shall promptly inspect the Product for readily discernable Packaging and Packaging Services related defects and notify Mylan within ten
(10) days if the Product does not conform to the Specifications. Unless Cumberland notifies Mylan of any Packaging and Packaging Services related defects within the time period set forth in this Section 5.1, the Product shall be deemed
accepted. Cumberland shall notify Mylan of any latent Packaging and Packaging Services related defects within ten (10) days of the discovery of such defect. Upon Cumberland’s rejection of the Product and notification of

  
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such non-conformance to Mylan, at Mylan’s request, Cumberland shall return the non-conforming Product to Mylan. Notwithstanding the above, in any case where Cumberland rejects the Product
for non-conformance to Specifications, Mylan shall be offered a reasonable opportunity to offer proof or evidence as to why such Product should not be rejected for a Packaging and Packaging Services related defect and to independently inspect and/or
test such Product. Any notice of rejection by Cumberland shall be accompanied by a reasonably detailed statement of its reasons for rejection and a report of any pertinent analysis performed by Cumberland on the allegedly non-conforming Product,
together with the methods and procedures used. Such notice will confirm that the testing methods and procedures used to analyze the alleged non-conformance were conducted according to applicable current good manufacturing practices. Mylan shall
notify Cumberland as promptly as reasonably possible whether or not it accepts Cumberland’s assertion of non-conformity. 

5.2 In the event of any dispute as to whether the Product may be rightfully rejected by Cumberland, such Product shall be tested, using
the Product from the shipment or shipments in question, for conformance with Specifications and acceptance criteria by an independent GLP/cGMP certified laboratory of recognized repute, acceptable to both Parties who shall analyze the Product using
such procedures and tests as the laboratory may consider necessary or appropriate to reach conclusion. This analysis shall be binding on Mylan and Cumberland solely for the purpose of determining whether such Product may be rightfully rejected,
which, absent manifest error, shall be deemed final as to any dispute over compliance. Both Parties reasonably agree to cooperate with the independent laboratory’s reasonable requests for assistance in connection with its analysis hereunder,
and both Parties shall be permitted to audit such testing and analysis. The fees and expenses charged by such independent testing organization, as well as any expenses associated with the return of the Product to Mylan, shall be paid by the Party in
error. For the sake of clarity, if the rejection is in error, Cumberland shall pay for such fees and expenses, and if the rejection is correct, Mylan shall pay for such fees and expenses. 

5.3 All or part of any shipment of the Product determined to have been rightfully rejected by Cumberland shall be held by Cumberland for
a period of thirty (30) days following notice to Mylan for proper disposal by Mylan, at Mylan’s expense. If Mylan does not provide instructions for disposal of the Product within such period, then Cumberland may dispose of such Product in
accordance with all applicable laws, and Mylan shall either pay or reimburse Cumberland for all costs and expenses incurred by Cumberland in connection with the disposal of such Product. 

5.4 In the event Cumberland receives Product from Mylan which Cumberland rightfully rejected as determined under Section 5.2,
Cumberland may elect for Mylan to replace such Product with an equal quantity of the Product that conforms to the Specifications and is not otherwise defective or refund the amount paid by Cumberland to Mylan for such defective Product. Such refund
shall specifically be limited to expenses incurred for shipping costs and payments made to Mylan for Packaging or Packaging Services. With respect to rightfully rejected Product as determined pursuant to Section 5.2, Mylan will bear the cost of
replacement Crystals if Mylan’s negligence, including malfunction of Mylan packaging equipment, resulted in the defective Product. In all other cases, the Parties will share the cost of replacement Crystals; provided, however, if Mylan fails
more than three (3) batches of Product in any calendar year as part of its normal manufacturing process, Mylan will bear the costs of the replacement Crystals for any additional failed batches. If Cumberland requests Mylan to replace such
Product as set forth above, Mylan shall replace such Product as soon as is reasonably practicable at no additional cost to Cumberland. 

  
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 6. Representations and Warranties. 

6.1 Cumberland hereby represents and warrants to Mylan that Cumberland has full title in and ownership of, or the right to grant Mylan
the right to package the Crystals, that the Crystals are and shall be produced in accordance with cGMPs and are fully compliant with approved regulatory requirements, that the Specifications are and shall be in accordance with cGMPs, and that the
Crystals, the Packaging, and the Specifications do not infringe on any third party intellectual property rights. 
 6.2 Mylan
hereby represents and warrants to Cumberland that, at the time of shipment to Cumberland, the Product will substantially conform to the Specifications and be free from defects in materials and workmanship, except with respect to defects resulting
from any of the following: (i) acts or omissions of Cumberland or its authorized representatives or customers; or (ii) failure of Cumberland or its authorized representatives to properly store, use, and/or maintain the Packaging or the
packaged Crystals. In the event of any breach of this warranty, Cumberland will promptly inform Mylan so that Mylan can perform a concurrent analysis of the issue. 
 6.3 In the event of breach of the warranty set forth in Section 6.2 above, which shall include any loss or damage to Crystals provided by Cumberland for Packaging by Mylan, Cumberland’s sole
remedy and Mylan’s sole obligation is for Mylan, in its sole discretion, to (i) replace the non-conforming Product with conforming replacement Product; or (ii) reimburse Cumberland for the cost of such non-conforming Product in
accordance with Section 5.4. 
 6.4 EXCEPT AS SET FORTH ABOVE IN SECTION 6.2, AND SUBJECT TO THE LIMITATIONS SET FORTH
HEREIN, MYLAN DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE
OF TRADE. 
 7. Indemnification. Cumberland hereby agrees to indemnify, defend and hold Mylan harmless from all loss, liability, costs,
causes of action and expense, including reasonable attorneys’ fees resulting from or based upon on any third party claims arising out of the sale or use of the Crystals or the Product, including, but not limited to, intellectual property
infringement and product liability claims, unless caused by the acts or omissions of Mylan. Mylan hereby agrees to indemnify, defend and hold Cumberland harmless from all loss, liability, costs, causes of action and expense, including reasonable
attorneys’ fees resulting from or based upon any third party claims relating to the Packaging Services performed by Mylan hereunder through the fault of Mylan. No Party shall have any obligation under this Section 7 with regard to any
liability arising from (i) such Party’s compliance with formal specifications issued by another Party or (ii) use or sale of Crystals or the Product in combination with other items when infringement would not have occurred from the
use or sale of the Crystals or the Product solely for the purpose for which they were designed or sold by such Party. 

  
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 8. Confidential Information. The Parties hereby acknowledge that they may from time to time receive
from the other Party proprietary and confidential information of the other Party, its Affiliates, or a third party (“Confidential Information”). Such Confidential Information may include, without limitation, drawings, technical data,
future development plans, marketing strategies, and pricing information. No Party will disclose such Confidential Information to any third party or use the Confidential Information for any purposes other than as authorized in writing by the
disclosing Party. In the event of breach or threatened breach of this Section 8, the damage or imminent damage to the value and goodwill of the disclosing Party shall be irreparable and inestimable, and therefore any remedy at law or in damages
shall be inadequate. Accordingly, the Parties hereto agree that the non-breaching Party shall be entitled to injunctive relief against the breaching Party in the event of any breach or threatened breach of this Section, in addition to any other
relief (including damages) available to the disclosing Party under this Agreement or under law. For the purposes of this Agreement, an Affiliate shall mean any corporation, association, partnership, company, organization, or other entity which
directly or indirectly controls, is controlled by, or is under common control with a Party (“Affiliate”). For purposes of this definition, control means the ability, directly or indirectly, through ownership of securities or other equity
interests, by agreement, or by any other lawful method, to direct more than fifty percent (50%) of the outstanding equity votes of any entity, whether or not represented by securities, or to otherwise control the management decisions of any
entity. 
 9. Limitation of Liability. EXCEPT WITH RESPECT TO BREACHES OF THE CONFIDENTIALITY PROVISIONS SET FORTH IN SECTION 8 OF THIS
AGREEMENT, AND THE INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 7 OF THIS AGREEMENT, IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANOTHER PARTY OR ANY THIRD PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES RELATED TO
THIS AGREEMENT OR THE PRODUCT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND WHETHER SUCH DAMAGES ARE BASED ON CONTRACT OR TORT CLAIMS. NOTWITHSTANDING THE ABOVE, AND EXCEPT WITH RESPECT TO BREACHES OF THE
CONFIDENTIALITY PROVISIONS SET FORTH IN SECTION 8 OF THIS AGREEMENT, THE PRODUCT REPLACEMENT OBLIGATIONS SET FORTH IN SECTION 5.4 OF THIS AGREEMENT, AND THE INDEMNIFICATION OBLIGATIONS SET FORTH IN SECTION 7 OF THIS AGREEMENT, IN NO EVENT SHALL
MYLAN’S LIABILITY HEREUNDER EXCEED THE TOTAL FEES FOR PACKAGING PAID TO MYLAN BY CUMBERLAND HEREUNDER. 
 10. Term and Termination.

 10.1 Unless otherwise terminated pursuant to this Section 10, this Agreement shall remain in force for an initial term
of five (5) years from the Effective Date (“Initial Term”). After the Initial Term, this Agreement shall automatically renew for subsequent one (1) year terms (each, a “Renewal Term”) unless a Party notifies the other
Party of their intent not to renew within one hundred eighty (180) days of the end of the Initial Term or any Renewal Term. Upon termination of this Agreement for any reason, (i) the Parties shall return all Confidential Information of the
other Party; (ii) all amounts due under this Agreement to Mylan shall be immediately due and payable; (iii) Mylan, at its option, may fulfill any outstanding Purchase Orders for Product received prior to termination in accordance with the
terms of this Agreement, 

  
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and (iv) Cumberland shall purchase all finished goods produced in good faith based upon Cumberland’s three (3) month forecast in Mylan’s inventory at the then current Prices,
and Cumberland shall purchase all raw materials and work in progress at Mylan’s documented cost. 
 10.2 In the event of
the material breach of this Agreement by any Party, the other Party shall provide written notice of such breach and the breaching Party shall thereafter have sixty (60) days (the “Cure Period”) to otherwise resolve or cure such
breach, unless such breach cannot reasonably be cured within sixty (60) days and the breaching Party is diligently acting to cure such breach, in which case the Cure Period shall extend for a reasonable period of time to allow the breaching
Party to cure such breach (except such Cure Period shall be ten (10) days for any breach by Cumberland of its payment obligations hereunder). In the event such breach is not cured within the Cure Period, the non-breaching Party may immediately
terminate this Agreement upon written notice to the breaching Party. 
 10.3 Any Party may terminate this Agreement for any
reason or no reason upon one hundred eighty (180) days prior written notice to the other Party. 
 10.4 This Agreement may
be immediately terminated by the non-breaching Party upon the occurrence of one or more of the following events: (i) a Party breaches the Confidentiality provisions set forth in Section 8 of this Agreement; or (ii) the suspension,
dissolution or winding-up of a Party’s business, the institution of bankruptcy, reorganization, liquidation or other such proceedings by or against a Party or the appointment of a custodian, trustee, receiver or similar person for any of the
Parties’ properties or businesses, or an assignment by any Party or for the benefit of its creditors. 
 11. Validity of Agreement.

 11.1 This Agreement shall become effective as of the Effective Date upon the execution of this Agreement by the Parties
hereto. 
 12. Testing and Release; Regulatory Matters and Recall. 

12.1 Cumberland shall at all times be responsible for all analytical testing and the final release of the Crystals and the Product to
market. 
 12.2 Mylan shall submit to Cumberland’s designated analytical services group representative samples from each
packaged lot of Product in accordance with the agreed upon sampling procedures. Upon submission of the representative samples, Mylan shall make available to Cumberland copies of all applicable packaging documents including: (i) material
accountability reports; (ii) label accountability reports; (iii) packaging batch records when requested; and (iv) any other documents required by Cumberland in order to maintain compliance with all regulatory authorities. 

12.3 Cumberland shall keep Mylan informed of all regulatory matters, investigations and/or actions in connection with the packaging of
the Product. 
 12.4 In the event any Party shall be required, or if Cumberland elects to voluntarily initiate a recall,
withdrawal, field correction, field alert report or comparable report with respect to the Product, such Party shall promptly notify the other Party of any material actions to be 

  
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taken. With respect to any such recall or market withdrawal or other corrective action, the Parties shall reasonably cooperate with each other to implement the same. All costs with respect to a
recall, market withdrawal or other corrective action shall be borne by Cumberland unless such recall, market withdrawal or other corrective action was due to the negligence, willful misconduct or breach of this Agreement or any Exhibit hereto by
Mylan, in which case such costs shall be borne by Mylan. 
 12.5 Within ninety (90) days following mutual signature of this
Agreement, or such later time as may be agreed to by the Parties, the Parties shall enter into a mutually agreeable technical/quality agreement in accordance with Mylan’s and/or Cumberland’s standard operating procedures and in conformity
with any regulatory authority requirements and applicable law. 
 13. Packaging Audit. Upon reasonable notice to Mylan, Cumberland may
conduct an inspection and audit only as to the Product. Such inspection and audit will relate to: (i) those portions of each of the packaging facilities at which any Packaging of the Product is performed, (ii) any facility that packages,
warehouses or stores the Crystals and/or the Product, (iii) any other facility to which Mylan transfers Packaging, warehousing or storing obligations in accordance with the terms of this Agreement and (iv) any of Mylan’s quality
control records and other documentation relating to the Packaging activities (including any internal quality control audits or reviews conducted by Mylan) for the Product. Such inspections and audits shall be for the purpose of ascertaining
compliance with cGMPs and Mylan’s obligations hereunder. Any information obtained by Cumberland through such inspections and audits shall be treated as Confidential Information of Mylan or of a third party, as the case may be. Such audits and
inspections shall be conducted at Cumberland’s expense during normal business hours, with at least one (1) week prior written notice and no more than once per year per manufacturing facility. 

14. Relationship of the Parties. Each Party is an independent contractor to the other in the operation and administration of this Agreement.
Nothing in this Agreement shall be construed as creating an employer-employee relationship, partnership, or joint venture between the Parties. 

15. Compliance with Law, Governing Law, Venue and Jurisdiction; Arbitration. 

15.1 The Parties shall comply with all laws, including, but not limited to, any statute, rule regulation, judgment, decree, order or
permit applicable to their respective performance under this Agreement, including those pertaining to U.S. export regulations. The Parties will promptly notify each other if a Party becomes aware of any additional regulations after the Effective
Date of this Agreement if such additional regulations could reasonably be expected to materially affect Mylan’s or Cumberland’s performance under this Agreement. Mylan shall promptly notify Cumberland of any inquiry or inspection by a
regulatory authority which pertains to the Product or to the facilities where the Crystals or the Product are being manufactured or stored, or any occurrences that arise out of Mylan’s activities that have or could reasonably be expected to
have adverse regulatory compliance or reporting consequences concerning the Crystals or Product. In the event that any applicable regulatory authority issues a report or warning letter related to or effecting the Product, Mylan shall promptly make
such applicable portions of the report or warning letter available to Cumberland. 

  
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 15.2 The validity and interpretation of this Agreement and the rights and duties of the
Parties hereto shall be governed by the internal substantive laws of the State of New York without reference to its conflicts of law rules. 
 15.3 Any dispute or controversy arising under, out of, or in connection with or in relation to this Agreement, or any amendment hereof, or the breach hereof, shall be determined and settled by arbitration
in New York, New York, in accordance with the rules of the American Arbitration Association. Any award rendered by the arbitrator shall be final and binding upon each of the Parties, and judgment thereon may be entered in any court having
jurisdiction thereof. During the pendency of any such arbitration and until final judgment thereon has been entered, this Agreement shall remain in full force and effect unless otherwise terminated as provided herein. The provisions of this
paragraph shall survive expiration or other termination of this Agreement regardless of the cause of such termination. 
 16. Notices.
Any notice, request, consent or approval required or permitted to be given under this Agreement or pursuant to law shall be sufficient if in writing, and if and when sent by certified or registered mail, with postage prepaid, or express mail, to a
Party at their address indicated below or at such other address as they may hereafter from time to time establish through the normal course of business: 
  

			
	If to Cumberland:	  	Cumberland Pharmaceuticals Inc.
		  	2525 West End Avenue, Suite 950
		  	Nashville, TN 37203
		  	Attention: CEO
		  	Facsimile: (615) 255-0094
		
	If to Mylan:	  	Mylan Institutional Inc.
		  	12720 Dairy Ashford
		  	Sugar Land, Texas, 77478
		  	Attn: General Manager
		
	With a copy to:	  	Mylan Pharmaceuticals Inc.
		  	781 Chestnut Drive
		  	Morgantown, WV 26595
		  	Attn: President
		
	With a copy to:	  	Mylan Inc.
		  	1500 Corporate Drive
		  	Canonsburg, PA 15317
		  	Attn: Global General Counsel

 17. Integrated Agreement. The terms of this Agreement are intended by the Parties as a complete and final
expression of their agreement with respect to the subject matter contained herein, unless modified in a subsequent writing signed by both Parties. 
 18. Assignment and Change of Location. Except with respect to assignment of this Agreement to an Affiliate of a Party, or upon a sale of all or substantially all of the assets of

  
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Mylan, the Parties hereto may not assign its rights nor delegate its duties under this Agreement without the prior written consent of the other Parties, which such consent shall not be
unreasonably withheld. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns when permitted by this Agreement. In addition, Mylan shall have the right to transfer the Packaging
Services to a location owned or controlled by Mylan or a Mylan Affiliate during the term of this agreement. In such an event, the Parties agree to cooperate to ensure an uninterrupted supply of packaged Product. 

19. Legal Construction. If any part of this Agreement is held unenforceable or invalid or prohibited by law, it shall be struck from this
Agreement and shall not affect the enforceability of the other parts of this Agreement. The invalid or unenforceable provision shall then be replaced by a valid and enforceable provision that meets as closely as practicable the stricken provision.

 20. Modification. This Agreement may not be modified unless agreed to in a writing signed by both Parties. 

21. Survival. Any obligations incurred by the Parties under this Agreement prior to termination shall survive the termination of the Agreement for
any reason. In addition, the provisions of Sections 1.1, 6, 7, 8, 9, 10, 12, 14, 15, 16, 17, 19, 21 and 22 shall survive any termination or expiration of this Agreement. 
 22. Counterparts. This Agreement may be executed in multiple counterparts, all of which shall be deemed to be an original, and when taken together shall constitute one and the same instrument.

 SIGNATURE PAGE TO FOLLOW 

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized
representatives as of the date first set forth above. 
  

									
	MYLAN INSTITUTIONAL INC.	 		 	CUMBERLAND PHARMACEUTICALS INC.
					
	By:	 	 /s/ Dewayne Dickey
	 		 	By:	 	 /s/ A.J. Kazimi

					
	Print Name:	 	 Dewayne Dickey
	 		 	Print Name:	 	 A.J. Kazimi

					
	Title:	 	 VP Operations/GM
	 		 	Title:	 	 Chief Executive Officer

					
	Date:	 	 2-27-12
	 		 	Date:	 	 March 5, 2012

				
	MYLAN PHARMACEUTICALS INC.	 		 		 	
					
	By:	 	 /s/ Anthony Mauro
	 		 		 	
					
	Print Name:	 	 Anthony Mauro
	 		 		 	
					
	Title:	 	 President NA & MPI
	 		 		 	
					
	Date:	 	 02.28.12
	 		 		 	

  
 -12-

 EXHIBIT A 

PRICING 
  

									
	 	  	20 gram pouch price	 	  	10 gram pouch price	 
	 Packaging Services (includes insert and inner carton)
	  	$	[***]	  	  	$	[***]	  

 EXHIBIT B 

SPECIFICATIONS 

Specifications for Kristalose TM (Lactulose) for Oral Solution – 10 gram pouches 

Mylan shall package the Lactulose Crystals and perform the Packaging Services in accordance with the following specifications and the most current,
approved version of the Master Packaging Specification Records. (the “Specifications.”) 
 MATERIAL TO BE SUPPLIED BY CUMBERLAND
PHARMACEUTICALS INC., NASHVILLE, TENNESSEE, USA: 
  

	 	1.	Lactulose Crystals 

 MATERIAL TO BE SUPPLIED BY
MYLAN: 
  

	 	1.	Circular folded 5” x 1” package inserts 

  

	 	2.	Pre-printed shelf packs with current approved labeling 

  

	 	3.	Pouch material (30# clay coated paper/primer/7.5# polyethelyne/0.00035 aluminum foil/primer/21# polyethylene.) 

 

	 	4.	Shipper cartons; one carton contains 12 shelf packs of 30 pouches/shelf pack 

 

	 	5.	Shipper carton labels 

 SPECIAL INSTRUCTIONS; 10
gram unit dose pouches: 
 Pouch Size: 2
 3/4” x 4  3/8” ±  1/4” 

Seal Area: Not less than 3 mm 
 One pouch
contains 10 grams of Lactulose for Oral Solution. The average net content of the number of pouches tested shall be not less than 10 grams. 

Minimum Fill (per USP 755): 
 The average
net content of 10 pouches is not less than the labeled amount (i.e. 10.0 grams). 
 The net content of any single pouch is not less than 90% of
the labeled amount (or 9.0 grams for the 10-gram pouch) 
 Maximum Fill Weight: 
 The net content of any single pouch is not greater than 110% of the labeled amount (or 11.0 grams for the 10-gram pouch) 
 Lot number and expiration Date will be debossed in the side seal area of each pouch during the filling operation. 
 Each pre-printed shelf pack is packed with 30 pouches, along with 3 package inserts. Lot and Exp to be printed on the shelf pack in designated area. 

 Each shipping carton is packed with twelve shelf packs of thirty packets. 

Each shipper carton is labeled with a two panel shipper label, which adheres to the shipper carton in the lower right corner with left label panel
adhering to the narrow end of the carton and the right label panel wrapping around onto the long end of the carton. 
 Upon delivery to the
designated destination, the packaged product will be sampled and inspected according to the following incoming inspection plan: 
 ACCEPTANCE
SAMPLING PROTOCOL 
 Product: Kristalose 
 Configuration: 10-gram pouches; 30 pouches / shelf pack 
 Packager: Mylan 

Sample: 500 pouches / 125 shelf packs / 20 shippers 
 Inspection performed according to ANSI/ASQ Z1.4 
 Critical 0% Reject at 1

 Incorrect lot no./exp. date 
 Incorrect part number 
 Incorrect product 

Incorrect color 

Illegible lot no./exp. date 
 Illegible critical copy 
 Missing lot no./exp. date 

Major 0.15% 
 POUCH Acc/Rej 2/3

 Unsealed or empty pouch 
 CARTON Acc/Rej 0/1 (of 80) 
 Illegible lot no./exp. date 

Major 0.4% 
 POUCH Acc/Rej 5/6 

Illegible non-critical copy 
 Smeared copy/coding 
 Improper cut (past seal area) 

Major 0.65% 
 CARTON Acc/Rej 2/3

 No inserts 
 Pouch missing (<30) 
 Soiled or torn 

SHIPPER Acc/Rej 0/1 
 Missing
carton 
 Minor 1.0% 
 POUCH
Acc/Rej 10/11 
 Soiled 
 Discolored 

 Incorrect dimensions 
 CARTON Acc/Rej 3/4 
 Wrong insert count 

Pouch count > 30 
 SHIPPER
Acc/Rej 0/1 (of 13) 
 Improper sealing 
 Minor 2.5% 
 POUCH Acc/Rej 21/22 

Ragged edge cut 

Wrinkles masking copy 
 CARTON
Acc/Rej 7/8 
 Lot no./exp. Wrong location 
 Minor 4.0% 
 SHIPPER Acc/Rej 2/3 

Torn shipper 
 Specifications
for Kristalose TM (Lactulose) for Oral Solution – 20 gram pouches 
 Mylan shall package the Lactulose Crystals and perform the
Packaging Services in accordance with the following specifications and the most current, approved version of the Master Packaging Specification Records. (the “Specifications.”) 
 MATERIAL TO BE SUPPLIED BY CUMBERLAND PHARMACEUTICALS INC., NASHVILLE, TENNESSEE, USA: 
  

	 	2.	Lactulose Crystals 

 MATERIAL TO BE SUPPLIED BY
MYLAN: 
  

	 	6.	Circular folded 5” x 1” package inserts 

  

	 	7.	Pre-printed shelf packs with current approved labeling 

  

	 	8.	Pouch material (30# clay coated paper/primer/7.5# polyethelyne/0.00035 aluminum foil/primer/21# polyethylene.) 

 

	 	9.	Shipper cartons; one carton contains 12 shelf packs of 30 pouches/shelf pack 

 

	 	10.	Shipper carton labels 

 SPECIAL INSTRUCTIONS; 20
gram unit dose pouches: 
 Pouch Size: 2
 3/4” x 5  1/2” ±  1/4” 

Seal Area: Not less than 3 mm 
 One pouch
contains 20 grams of Lactulose for Oral Solution. The average net content of the number of pouches tested shall be not less than 20 grams. 

Minimum Fill (per USP 755): 
 The average
net content of 10 pouches is not less than the labeled amount (i.e. 20.0 grams). 

 The net content of any single pouch is not less than 90% of the labeled amount (or 18.0 grams for the
20-gram pouch) 
 Maximum Fill Weight: 
 The net content of any single pouch is not greater than 110% of the labeled amount (or 22.0 grams for the 20-gram pouch) 
 Lot number and expiration Date will be debossed in the side seal area of each pouch during the filling operation. 
 Each pre-printed shelf pack is packed with 30 pouches, along with 3 package inserts. Lot and Exp to be printed on the shelf pack in designated area. 

Each shipping carton is packed with twelve shelf packs of thirty packets. 
 Each shipper carton is labeled with a two panel shipper label, which adheres to the shipper carton in the lower right corner with left label panel adhering to the narrow end of the carton and the right
label panel wrapping around onto the long end of the carton. 
 Upon delivery to the designated destination, the packaged product will be
sampled and inspected according to the following incoming inspection plan: 
 ACCEPTANCE SAMPLING PROTOCOL 

Product: Kristalose 
 Configuration: 20-gram
pouches; 30 pouches / shelf pack 
 Packager: Mylan 
 Sample: 315 pouches / 80 shelf packs / 13 shippers 
 Inspection performed according to ANSI/ASQ
Z1.4 
 Critical 0% Reject at 1 
 Incorrect lot no./exp. date 
 Incorrect part number 

Incorrect product 

Incorrect color 

Illegible lot no./exp. date 
 Illegible critical copy 
 Missing lot no./exp. date 

Major 0.15% 
 POUCH Acc/Rej 1/2

 Unsealed or empty pouch 
 CARTON Acc/Rej 0/1 
 Illegible lot no./exp. date 

Major 0.4% 
 POUCH Acc/Rej 3/4 

Illegible non-critical copy 

 Smeared copy/coding 
 Improper cut (past seal area) 
 Major 0.65% 

CARTON Acc/Rej 1/2 
 No inserts

 Pouch missing (<30) 
 Soiled or torn 
 SHIPPER Acc/Rej 0/1 (of 20) 

Missing carton 
 Minor 1.0%

 POUCH Acc/Rej 7/8 

Soiled 

Discolored 

Incorrect dimensions 
 CARTON
Acc/Rej 2/3 
 Wrong insert count 
 Pouch count > 30 
 SHIPPER Acc/Rej 0/1 

Improper sealing 
 Minor 2.5%

 POUCH Acc/Rej 14/15 
 Ragged edge cut 
 Wrinkles masking copy 

CARTON Acc/Rej 5/6 
 Lot no./exp.
Wrong location 
 Minor 4.0% 

SHIPPER Acc/Rej 1/2 
 Torn
shipper 

 EXHIBIT C 

INVENTORY AND PRNDING ORDERS 

Current Inventory as of October 24, 2011:     None 
 Pending Orders:         [***] kilograms 
 Cost of Pending
Orders:         $ [***]Unassociated Document

DIGITAL CINEMA DESTINATIONS CORP.

 

2012 STOCK OPTION AND INCENTIVE PLAN

 

1. Purpose and Eligibility

 

 The purpose of this 2012 Stock Option and Incentive Plan (the “Plan”) of Digital Cinema Destinations Corp., a Delaware corporation (the “Company”) , is to provide stock options, restricted stock grants, restricted stock units and stock awards,  in the Company (each, an “Award”) to employees, officers, directors, consultants, advisors and other persons performing services to the Company and its Subsidiaries (as defined below), all of whom are eligible to receive Awards under the Plan. Any person to whom an Award has been granted under the Plan is called a “Participant”. Additional definitions are contained in Section 9.

 

2. Administration

 

a. Administration with Respect to Directors and Officers. With respect to grants of Awards to directors or Employees who are also Officers or directors of the Company, the Plan shall be administered by (A) the board of directors of the Company (the “Board”) or (B) a committee designated by the Board, which committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b- 3 under the Exchange Act.  Once appointed, such committee shall continue to serve in its designated capacity until otherwise directed by the Board.

 

b. Administration With Respect to Consultants and Other Employees.  With respect to grants of Awards to Employees or consultants who are neither directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a committee designated by the Board, which committee shall be constituted in such a manner as to satisfy the Applicable Laws.  Once appointed, such committee shall continue to serve in its designated capacity until otherwise directed by the Board.  The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time.  Except for the power to amend the Plan as provided in Section 9(e) and except for determinations regarding Employees who are subject to Section 16 of the Exchange Act or certain key Employees who are, or may become, as determined by the Board or such committee, subject to Section 162(m) of the Code compensation deductibility limit, and except as may otherwise be required under applicable stock exchange rules, the Board or such committee may delegate any or all of its duties, powers and authority under the Plan pursuant to such conditions or limitations as the Board or such committee may establish to any Officer or Officers of the Company

 

3. Stock Available for Awards

 

 a. Number of Shares. Subject to adjustment under Section 3(c), the aggregate number of shares of Class A common stock of the Company (the “Common Stock”) that may be issued pursuant to the Plan is ___________ shares of Class A common stock. If any Award expires, or is terminated, surrendered or forfeited, in whole or in part, the unissued Common Stock covered by such Award shall again be available for the grant of Awards under the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased by, or are surrendered or forfeited to, the Company at no more than cost, such shares of Common Stock shall again be available for the grant of Awards under the Plan. Shares issued under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares.

 

  

  

  

 

 b. Participant Limit. Subject to adjustment under Section 3(c), no Participant may be granted Awards during any one fiscal year to purchase or otherwise acquire more than 100,000 shares of Common Stock.

 

 c. Adjustment to Common Stock. In the event of any stock split, stock dividend, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off, split-up, or other similar change in capitalization or event, (i) the number and class of securities available for Awards under the Plan and the per-Participant share limit, (ii) the number and class of securities, vesting schedule and exercise price per share subject to each outstanding Option, (iii) the repurchase price per security subject to repurchase, and (iv) the terms of each other outstanding stock-based Award shall be adjusted by the Company (or substituted Awards may be made) to the extent the Administrator shall determine, in good faith, that such an adjustment (or substitution) is appropriate. If Section 8(d)(i) applies for any event, this Section 3(c) shall not be applicable.

 

4. Stock Options

 

 a. General. Subject to the provisions of the Plan, the Administrator may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of Common Stock to be covered by each Option, the exercise price of each Option and the conditions and limitations applicable to the exercise of each Option and the Common Stock issued upon the exercise of each Option, including vesting provisions, repurchase provisions and restrictions relating to applicable federal or state securities laws, as it considers advisable.  Each Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Administrator may deem appropriate.  Options granted to employees of the Company shall expire 90 days after termination of employment with the Company for whatever reason, unless the agreement with respect to any such Option provides for a shorter period of time.  All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant.

 

 b. Incentive Stock Options. An Option that the Administrator intends to be an “incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall be granted only to Employees including those who are Officers of the Company and shall be subject to and shall be construed consistently with the requirements of Section 422 of the Code. The Administrator and the Company shall have no liability if an Option or any part thereof that is intended to be an Incentive Stock Option does not qualify as such. An Option or any part thereof that does not qualify as an Incentive Stock Option is referred to herein as a “Nonstatutory Stock Option.”

 

  

  

  

 

c. Exercise Price of an Incentive Stock Option. Subject to the provisions of Section 4(e) regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.

 

d. Exercise Price of a Nonstatutory Stock Option. The exercise price of each Nonstatutory Stock Option granted shall be not less than eighty-five percent (85%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted.

 

e. Ten Percent Stockholder.  No Ten Percent Stockholder shall be eligible for the grant of an Incentive Stock Option unless the exercise price is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable after the expiration of five (5) years from the date of grant.

 

 f. Duration of Options. Subject to the provisions of Section 4(e) regarding Ten Percent Stockholders, each Option shall be exercisable at such times and subject to such terms and conditions as the Administrator may specify in the applicable option agreement, provided that no Option shall be exercisable after the expiration of ten (10) years from the date it was granted.

 

g. Exercise of Option. Options may be exercised only by delivery to the Company of a written notice of exercise signed by the proper person together with payment in full as specified in Section 4(i) for the number of shares for which the Option is exercised.

 

h. Limits on Incentive Stock Options.  The aggregate Fair Market Value of all shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by a Participant in any one calendar year, under this Plan or any other stock option plan maintained by the Company (or by any Subsidiary or parent of the Company), shall not exceed $100,000.

 

 i. Payment Upon Exercise. Common Stock purchased upon the exercise of an Option shall be paid for by one or any combination of the following forms of payment as determined by the Administrator:

 

	
  

	
(i)

	
by check payable to the order of the Company;

 

	
  

	
(ii)

	
except as otherwise explicitly provided in the applicable option agreement, and only if the Common Stock is then publicly traded, delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the exercise price; or

 

  

  

  

 

	 	
(iii)

	
to the extent explicitly provided in the applicable option agreement, by (a) delivery of shares of Common Stock owned by the Participant valued at Fair Market Value, (b) delivery of a promissory note of the Participant to the Company (and delivery to the Company by the Participant of a check in an amount equal to the par value of the shares purchased), or (c) payment of such other lawful consideration as the Administrator may determine.

 

5. Restricted Stock

 

 a. Grants. The Administrator may grant Awards entitling recipients to acquire shares of Common Stock, subject to (i) delivery to the Company by the Participant of cash or other lawful consideration in an amount at least equal to the par value of the shares purchased, and (ii) the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price from the Participant in the event that conditions specified by the Administrator in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by the Administrator for such Award (each, a “Restricted Stock Award”).

 

 b. Terms and Conditions. The Administrator shall determine the terms and conditions of any such Restricted Stock Award. Any stock certificates issued in respect of a Restricted Stock Award shall be registered in the name of the Participant and, unless otherwise determined by the Administrator, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). After the expiration of the applicable restriction periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or, if the Participant has died, to the beneficiary designated by a Participant, in a manner determined by the Administrator, to receive amounts due or exercise rights of the Participant in the event of the Participant's death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall mean the Participant's estate.

 

6. Restricted Stock Units.

 

The Administrator may grant Awards which consist of the right to receive shares of Common Stock, cash or other Awards or a combination thereof at the end of a specified deferral period (each, a “Restricted Stock Unit” or an “RSU”).  Restricted Stock Awards shall be subject to such risk of forfeiture and other restrictions, if any, as the Administrator may impose.   The grant, issuance, retention, vesting risk of forfeiture and other restrictions and/or settlement of RSUs shall occur at such time and in such installments as determined by the Administrator or under criteria established by the Administrator. The Administrator shall have the right to make the timing of the grant and/or the issuance, ability to retain, vesting and/or settlement of RSUs subject to continued employment, passage of time and/or such performance conditions as deemed appropriate by the Administrator at the date of grant or thereafter.

 

  

  

  

 

7.  Bonus Stock and Awards in Lieu of Obligations.

 

The Administrator is authorized to grant shares of Common Stock as a bonus, in consideration for services rendered or to be rendered to the Company or a Subsidiary or affiliate of the Company, or to grant shares of Common Stock or other Awards in lieu of obligations of the Company or a Subsidiary or affiliate, to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Administrator.

 

8. General Provisions Applicable to Awards

 

a. Transferability of Awards. Except as the Administrator may otherwise determine or provide in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.

 

b. Documentation. Each Award under the Plan shall be evidenced by a written instrument in such form as the Administrator shall determine or as executed by an Officer pursuant to authority delegated by the Administrator. Each Award may contain terms and conditions in addition to those set forth in the Plan provided that such terms and conditions do not contravene the provisions of the Plan.

 

c. Administrator Discretion. The terms of each type of Award need not be identical, and the Administrator need not treat Participants uniformly.

 

d. Acquisition of the Company

 

	
  

	
(i)

	
Acquisition Defined. An “Acquisition” shall mean: (x) the sale of the Company by merger in which the shareholders of the Company in their capacity as such no longer own a majority of the outstanding equity securities of the Company (or its successor); or (y) any sale of all or substantially all of the assets or capital stock of the Company (other than in a spin-off or similar transaction) ; or (z) any other acquisition of the business of the Company, as determined by the Administrator.

 

	
  

	
(ii)

	
Consequences of an Acquisition. Upon the consummation of an Acquisition, the Administrator or the board of directors of the surviving or acquiring entity (as used in this Section 8(d)(ii), also the “Administrator”), shall, as to outstanding Awards (on the same basis or on different bases as the Administrator shall specify), make appropriate provision for the continuation of such Awards by the Company or the assumption of such Awards by the surviving or acquiring entity and by substituting on an equitable basis for the shares then subject to such Awards either (a) the consideration payable with respect to the outstanding shares of Common Stock in connection with the Acquisition, (b) shares of stock of the surviving or acquiring corporation or (c) such other securities or other consideration as the Administrator deems appropriate, the fair market value of which (as determined by the Administrator in its sole discretion) shall not materially differ from the fair market value of the shares of Common Stock subject to such Awards immediately preceding the Acquisition. In addition to or in lieu of the foregoing, with respect to outstanding Options, the Administrator may, on the same basis or on different bases as the Administrator shall specify, upon written notice to the affected optionees, provide that one or more Options then outstanding must be exercised, in whole or in part, within a specified number of days of the date of such notice, at the end of which period such Options shall terminate, or provide that one or more Options then outstanding, in whole or in part, shall be terminated in exchange for a cash payment equal to the excess of the fair market value (as determined by the Administrator in its sole discretion) for the shares of Common Stock subject to such Options over the exercise price thereof. Unless otherwise determined by the Administrator (on the same basis or on different bases as the Administrator shall specify), any repurchase rights or other rights of the Company that relate to an Option or other Award shall continue to apply to consideration, including cash, that has been substituted, assumed or amended for an Option or other Award pursuant to this paragraph. The Company may hold in escrow all or any portion of any such consideration in order to effectuate any continuing restrictions.

 

  

  

  

 

	 	
(iii)

	
Assumption of Options Upon Certain Events. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property or stock of an entity, the Administrator may grant Awards under the Plan in substitution for stock and stock-based awards issued by such entity or an affiliate thereof. The substitute Awards shall be granted on such terms and conditions as the Administrator considers appropriate in the circumstances.

 

 e. Withholding. Each Participant shall pay to the Company, or make provisions satisfactory to the Company for payment of, any taxes required by law to be withheld in connection with Awards to such Participant no later than the date of the event creating the tax liability. The Administrator may allow Participants to satisfy such tax obligations in whole or in part by transferring shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their fair market value (as determined by the Administrator or as determined pursuant to the applicable option agreement). The Company may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a Participant.

 

 f. Amendment of Awards. The Administrator may amend, modify or terminate any outstanding Award including, but not limited to, substituting therefor another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that the Participant's consent to such action shall be required unless the Administrator determines that the action, taking into account any related action, would not materially and adversely affect the Participant.

 

 g. Conditions on Delivery of Stock. The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been met or removed to the satisfaction of the Company, (ii) in the opinion of the Company's counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations.

 

  

  

  

 

 h. Acceleration. The Administrator may provide that, upon consummation of a Change In Control or the death of a Participant, any Options shall become immediately exercisable in full or in part, any Restricted Stock Awards shall be free of some or all restrictions, any Common Stock which is the subject of a Restricted Stock Award or Restricted Stock Unit shall be granted to the Participant subject to some or no restrictions or that any Awards may become exercisable in full or in part or free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be, despite the fact that the foregoing actions may (i) cause the application of Sections 280G and 4999 of the Code if a Change In Control of the Company occurs, or (ii) disqualify all or part of the Option as an Incentive Stock Option. In the event of the acceleration of the exercisability of one or more outstanding Options, including pursuant to Section 8 (d)(ii), the Administrator may provide, as a condition of full exercisability of any or all such Options, that the Common Stock or other substituted consideration, including cash, as to which exercisability has been accelerated shall be restricted and subject to forfeiture back to the Company at the option of the Company at the cost thereof upon termination of employment or other relationship, with the timing and other terms of the vesting of such restricted stock or other consideration being equivalent to the timing and other terms of the superseded exercise schedule of the related Option.

 

9. Miscellaneous

 

 a. Definitions.

 

	
  

	
(i)

	
“Administrator” means the Board or any committee thereof appointed to administer the Plan.

 

	
  

	
(ii)

	
“Applicable Laws” means the legal requirements relating to the administration of stock incentive plans, if any, under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein.

 

	
  

	
(iii)

	
“Committee” means any committee appointed by the Board to administer the Plan.

 

	
  

	
(iv)

	
“Company” for purposes of eligibility under the Plan, shall include any present or future  subsidiaries of the Company, as defined in Section 424(f) of the Code (a “Subsidiary”), and any present or future parent corporation of Digital Cinema Destinations Corp., as defined in Section 424(e) of the Code. For purposes of Awards other than Incentive Stock Options, the term “Company” shall include any other business venture in which the Company has a direct or indirect significant interest, as determined by the Administrator in its sole discretion.

 

	
  

	
(v)

	
“Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

 

	
  

	
(vi)

	
“Change In Control” means any of the following transactions, but excluding any such transaction that the Administrator, in its sole and absolute discretion determines not to constitute a Change In Control:

 

  

  

  

 

	
  

	
(a)

	
a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the Company is incorporated;

 

	
  

	
(b)

	
the sale, transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company’s subsidiary corporations) in connection with the complete liquidation or dissolution of the Company;

 

	
  

	
(c)

	
any reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger; or

 

	
  

	
(d)

	
an acquisition by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding voting securities.

 

	
  

	
(vii)

	
“Employee” means (a) an employee of the Company and (b) for purposes of eligibility under the Plan (but not for purposes of Section 4(b)), a person to whom an offer of employment has been extended by the Company.

 

	
  

	
(viii)

	
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

	
  

	
(ix)

	
“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

 

	
  

	
(a)

	
If the Common Stock is listed on any established stock exchange or traded on the Nasdaq markets, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable.

 

  

  

  

 

	
  

	
(b)

	
In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator.

 

	
  

	
(x)

	
“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

 

	
  

	
(xi)

	
“Ten Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company.

 

  b. No Right To Employment or Other Status. No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan.

 

 c. No Rights As Stockholder. Subject to the provisions of the applicable Award, no Participant or authorized transferee shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to an Award until becoming the beneficial holder thereof.

 

 d. Effective Date and Term of Plan. The Plan shall become effective on the consummation of the Company’s initial public offering of shares of Common Stock under the Securities Act of 1933, but no Option shall be exercised and no Restricted Stock Award shall be granted until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months after date the Plan is adopted by the Board.  No Awards shall be granted under the Plan after the completion of ten years from the date on which the Plan was adopted by the Board, but Awards previously granted may extend beyond that date.

 

 e. Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time.  However, except as provided in Section 3(c) relating to adjustments upon changes in stock, no amendment shall be effective unless approved by stockholders of the Company to the extent stockholder approval is required under Delaware law, the Code, United States securities laws and regulations, or Nasdaq or exchange listing requirements.  Notwithstanding the foregoing, the Administrator may amend the plan or any Award agreement for the purposes of conforming the Plan or Award agreement to the requirements of law, including the requirements of Section 490A of the Code.

 

 f. Governing Law. The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of Delaware, without regard to any applicable conflicts of law, and applicable federal law.

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