Document:

ASSIGNMENT
AND ASSUMPTION OF ASSIGNED CONTRACTS AGREEMENT

    

    THIS
ASSIGNMENT AND ASSUMPTION OF ASSIGNED CONTRACTS AGREEMENT (this “Agreement”) by
and between RxElite Holdings, Inc., a Delaware corporation (the “Acquired
Company”), and RxElite, Inc., a Delaware corporation (“Seller”) is effective
immediately prior to the closing of the transactions contemplated by the
Purchase Agreement (as defined below).

    

    WITNESSETH:

    

    WHEREAS,
as part of the Reorganization contemplated by that certain Stock Purchase
Agreement, dated as of January 27, 2009 (the “Purchase Agreement”), by and
between Piramal Healthcare, Inc., a Delaware corporation (“Purchaser”), and
Seller, whereby Purchaser will acquire from Seller all of the issued and
outstanding stock of the Acquired Company, Seller agrees to sell, assign,
transfer, convey and deliver certain of Seller’s contracts to the Acquired
Company prior to the closing of the transactions contemplated under the Purchase
Agreement; and

    

    WHEREAS,
Seller is a party to each of the Assigned Contracts and Seller desires to assign
all its right, title and interest in the Assigned Contracts to the Acquired
Company pursuant to the terms of the Purchase Agreement.

    

    NOW,
THEREFORE, in consideration of the premises and agreements set forth herein and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:

    

    1.           Definitions.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings given to them in the Purchase Agreement.

    

    2.           Assignment. Seller
hereby assigns, transfers and conveys to the Acquired Company all of Seller’s
right, title and interest in and to the Assigned Contracts.

    

    3.           Acquired Company
Undertaking. The Acquired Company assumes and agrees to pay, perform
and/or discharge in accordance with their terms the liabilities and obligations
of Seller arising hereafter under the Assigned Contracts (except for liabilities
or obligations arising out of any breach of any such Assigned Contract prior to
the date hereof).

    

    4.           Amendment and Modification;
Waiver. Subject to applicable law, this Agreement may be amended,
modified and supplemented only by written instrument authorized and executed by
Seller and the Acquired Company at any time with respect to any of the terms
contained herein. No waiver by any party of any of the provisions hereof shall
be effective unless explicitly set forth in writing and executed by the party so
waiving. The waiver by either party hereto of a breach of any provisions of this
Agreement shall not operate or be construed as a waiver of any other or
subsequent breach.

    

    5.           GOVERNING LAW. THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE PRINCIPLES OF THE CONFLICTS OF
LAWS THEREOF.

    

    6.           Inconsistencies with
Purchase Agreement. Notwithstanding anything to the contrary contained
herein, the terms of this Agreement are subject to the terms, provisions,
conditions and limitations set forth in the Purchase Agreement, and this
Agreement is not intended to alter the obligations of the parties to the
Purchase Agreement. In the event of any inconsistencies between the terms of
this Agreement and the terms of the Purchase Agreement, the parties hereto agree
that the terms of the Purchase Agreement shall control.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.           Headings. The
headings of this Agreement are for purposes of reference only and shall not
limit or otherwise affect the meaning hereof.

    

    8.           Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute only one
instrument.

    

    [Remainder
of page intentionally left blank.]

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
their names as of the date first above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                SELLER:

                              
	 
      	 
      
	 
      	
                                RxElite,
      Inc.

                              
	 
      	 
      
	 
      	
                                By:

                              	
                                /s/
      Earl Sullivan

                              
	 
      	
                                Name:
      Earl Sullivan

                              
	 
      	
                                Title:  
      CEO

                              
	 
      	 
      
	 
      	
                                ACQUIRED
      COMPANY:

                              
	 
      	 
      
	 
      	
                                RxElite
      Holdings, Inc.

                              
	 
      	 
      
	 
      	
                                By:

                              	
                                /s/
      Earl Sullivan

                              
	 
      	
                                Name:
      Earl Sullivan

                              
	 
      	
                                Title:  
CEOBILL
OF SALE AND ASSIGNMENT

     

    FOR VALUE RECEIVED, effective
immediately prior to the closing of the transactions as contemplated by that
certain Stock Purchase Agreement, dated January 27, 2009 (the “Purchase
Agreement”), by and between Piramal Healthcare, Inc., a Delaware corporation
(“Purchaser”), and RxElite, Inc., a Delaware corporation (“Transferee”), whereby
Purchaser will acquire from Transferee all of the issued and outstanding stock
of RxElite Holdings, Inc., a Delaware corporation (“Transferor”), Transferor
hereby transfers and delivers to Transferee, and Transferee hereby acquires and
takes assignment and delivery of those assets and liabilities of Transferor
included in the description of Excluded Assets on Exhibit A and
Excluded Liabilities on Exhibit B to the
Purchase Agreement, including, without limitation, (i) the Second Amended and
Restated Employment Agreement with Earl Sullivan, dated as of November 27, 2006
and the Third Amended and Restated Employment Agreement with Earl Sullivan,
dated as of January 12, 2009, (ii) the Employment Agreement with Shannon Stith,
dated as of January 11, 2008, (iii) the Employment Agreement with Rick
Schindewolf, dated as of January 21, 2008, as amended, (iv) the Initial
Employment Agreement, dated as of January 8, 2007, as amended and updated, with
Partick Poisson, (v) the Offer Letter Employment Agreement with Gene Ioli, dated
as of August 29, 2007, as amended, (vi) the Second Amended and Restated
Employment Agreement with Jonathan Houssian, dated as of November 27, 2006,
(vii) the Employment Agreement with Steven Anderson, dated November 15, 2006,
(viii) the Employment Agreement with Tri Slaven, dated May 10, 2006 and (ix) the
Second Amended and Restated Employment Agreement with Richard Tener, dated
November 27, 2006.

     

    Transferee
hereby assumes and agrees to pay, perform and/or discharge the liabilities and
obligations under the Excluded Liabilities.

     

    All terms
used by not defined in this Bill of Sale and Assignment that are defined in the
Purchase Agreement shall have the meanings given to them in the Purchase
Agreement.

    

    [Next
page is signature page.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN WITNESS WHEREOF, Transferor
and Transferee have caused this Bill of Sale and Assignment to be signed by
their respective duly authorized officers as of the date first above
written.

     

    
      
        
          
            
              
                
                  	 
      	
                          TRANSFEROR:

                        
	 
      	 
      
	 
      	
                          RxELITE
      HOLDINGS, INC.

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          /s/
      Earl Sullivan

                        
	 
      	
                          Name:
      Earl Sullivan

                        
	 
      	
                          Title:  
      CEO

                        
	 
      	 
      
	 
      	
                          TRANSFEREE:

                        
	 
      	 
      
	 
      	
                          RxELITE,
      INC.

                        
	 
      	 
      
	 
      	
                          By:

                        	
                          /s/ Earl Sullivan

                        
	 
      	
                          Name:
      Earl Sullivan

                        
	 
      	
                          Title:  
      CEOASSIGNMENT,
ASSUMPTION AND RELEASE AGREEMENT

    

    This Assignment, Assumption and Release
Agreement (this “Agreement”) is made as of January 27, 2009, by and among
RxElite, Inc., a Delaware corporation (“Assignor”), RxElite Holdings, Inc., a
Delaware corporation and wholly owned subsidiary of the Assignor (“Assignee”),
and Piramal Healthcare Inc. (“Lender”).

    

    WHEREAS, Assignor and Lender (as
successor by assignment from NPIL Pharma Inc.) are parties to that certain Loan
and Security Agreement dated as of May 30, 2008 (the “Loan and Security
Agreement”);

    

    WHEREAS, in connection with the Loan
and Security Agreement, Assignor issued a secured promissory note in the
principal amount of $3 million dated as of May 30, 2008 (the “Note” and,
together with the Loan and Security Agreement, the “Loan
Documents”);

     

    WHEREAS,
the Assignor, through ownership of the Assignee, owns certain assets consisting
of new and used vaporizers as well as the licenses and permits to permit the
marketing and distribution of Sevofluorane anesthetic gas within certain states
of the United States  (the “Business”);

    

    WHEREAS, the Assignor owns 100% of the
issued and outstanding capital stock of the Assignee (the
“Shares”);

    

    WHEREAS, the Assignor wishes to sell
the Shares to the Lender and the Lender wishes to purchase the Shares, in order
to acquire the Business pursuant to a Stock Purchase Agreement dated as of the
date hereof (the “Stock Purchase Agreement”);

    

    WHEREAS, Assignor desires to assign and
Assignee desires to assume the Loan Documents and related obligations and Lender
desires to consent to such assignment; and

    

    WHEREAS, Lender desires to release any
and all of its liens on and security interests in the Collateral.

    

    NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
pursuant to the terms of this Agreement, the parties hereto agree as
follows:

    

    1.      Defined
Terms.  Unless otherwise defined herein, capitalized terms
shall have the meanings given to them in the Loan Documents.

     

    2.      Assignment.  Assignor
hereby assigns and delegates to Assignee all of its right, title, benefit,
privileges and interest in and to, as well as all of its duties, obligations and
covenants under, the Loan Documents.

     

    3.      Assumption.  Assignee
hereby accepts such assignment from Assignor and assumes and agrees to observe
and perform all of Assignor’s duties, obligations and covenants under the Loan
Documents, and to assume, pay and discharge all of Assignor’s liabilities in
connection with the Loan Documents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.      Acceptance.  Lender
hereby: (a) consents to Assignor’s assignment and delegation of all of its
right, title, benefit, privileges, interest and obligations in and to the Loan
Documents to Assignee; and (b) accepts Assignee’s assumption of the duties,
obligations and covenants of Assignor under the Loan Documents occurring,
arising or accruing out of the period from and after the date of this
Agreement.

     

    5.      Representations of Lender.
Lender represents and warrants to Assignor and Assignee that (i) Lender
owns the Note and any equity securities of the Assignor issued to the Lender
pursuant to a Proposed Equity Offering, (ii) no persons other than Lender and
the Assignor has any rights or obligations under the Loan and Security
Agreement, the Note and the other Loan Documents and (iii) Lender has full right
and authority, without consent or action of any other person, to take the
actions set forth herein.

     

    6.      Release.  Lender
hereby waives, releases, and forever discharges Assignor and its Affiliates
(other than Assignee) and each of their past, present and future officers,
directors, partners, members, stockholders, employees, agents, and
representatives (the “Released Parties”) from any and all claims, obligations,
demands, actions, causes of action and liabilities, of whatsoever kind and
nature, character and description, whether in law or equity, whether sounding in
tort, contract or under other Laws, whether known or unknown, and whether
anticipated or unanticipated (collectively, the "Claims") which Lender and/or
its successors and assigns ever had, now have or may ever have, arising from any
event, transaction, matter, circumstance or fact in any way arising out of,
accruing, related to, with respect to or in connection with, based in whole or
in part on, the Loan Documents; provided, however, that this release shall not
affect any Claims that Lender, its successors and assigns may have against any
of the Released Parties pursuant to the Stock Purchase Agreement, or the
transactions contemplated thereby.

     

    7.      Release of
Collateral.  Lender hereby releases any and all of its liens on
and security interests in the Collateral.  Assignor is hereby
irrevocably made, constituted and appointed the true and lawful attorney for
Lender with full power of substitution to do the following (such power to be
deemed coupled with an interest): (i) file and sign the name of Lender to such
UCC-3 termination statements, assignments, instruments, documents and statements
as necessary to release the liens of Lender in the Collateral; and (ii) do such
other and further acts and deeds in the name of Lender necessary to release the
liens of Lender in the Collateral.

     

    8.      Grant of Security
Interest.  In furtherance and not by way of limitation of the other
provisions of this Agreement, Assignee hereby acknowledges that the Loan and
Security Agreement contains the grant of security interests in favor of Lender,
and by Assignee’s assumption hereunder Assignee hereby grants Lender the same
security interests in all its right, title and interest in the Collateral now
existing and hereafter acquired, as provided for in the Loan and Security
Agreement, and hereby agrees to execute and deliver at Assignee’s sole cost and
expense as of the date hereof amendments to the Loan and Security Agreement and
any and all additional agreements, acknowledgements, financing statements and
other documents Lender may reasonably require to effect and maintain Lender's
first priority security interest in the Collateral, whether  now
existing or hereafter acquired.

     

    
      
        
        

      

      
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    9.      Further Actions
Necessary.  Each of the Parties hereto covenants and agrees, at
its own expense, to execute and deliver, at the request of another Party hereto,
such further instruments of transfer and assignment and to take such other
action as such other Party may reasonably request to more effectively consummate
the assignments and assumptions contemplated by this
Agreement.  Without limiting the foregoing, Lender agrees that it
shall promptly (i) cause to be filed such UCC-3 termination statements or
analogous records evidencing the termination of its liens on and security
interest in the Collateral and (ii) deliver to Assignor such possessory
collateral that Lender or its agents may have in its possession.

     

    10.    Applicable Laws. The Laws of
the State of Delaware, other than its conflicts of laws rules, shall govern the
construction and interpretation of this Agreement and the validity and
enforceability of this Agreement, and of its provisions and the transactions
pursuant to this Agreement.

     

    11.    Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute but
one agreement.  Delivery of an executed counterpart of a signature
page to this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

     

    
      [Signature
Page Follows Immediately]

    

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, each party hereto has caused this Assignment, Assumption and
Release Agreement to be executed on its behalf, as of the day and year first
above written.

    

    
      
        
          
            	 
      	
                    ASSIGNOR:

                  
	 
      	 
      	 
      
	 
      	
                    RXELITE,
      INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Earl Sullivan

                  
	 
      	 
      	
                    Name:
      Earl Sullivan

                  
	 
      	 
      	
                    Title:  
      President and Chief Executive Officer

                  
	 
      	 
      	 
      
	 
      	
                    ASSIGNEE:

                  
	 
      	 
      	 
      
	 
      	
                    RXELITE
      HOLDINGS, INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Earl Sullivan

                  
	 
      	 
      	
                    Name:
      Earl Sullivan

                  
	 
      	 
      	
                    Title:  
      President and Chief Executive Officer

                  
	 
      	 
      	 
      
	 
      	
                    LENDER:

                  
	 
      	 
      	 
      
	 
      	
                    PIRAMAL
      HEALTHCARE INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	
                    /s/ Muraj Rajan

                  
	 
      	 
      	
                    Name:
      Muraj Rajan

                  
	 
      	 
      	
                    Title:  
      President

                  

          

        

      

    

     

    
      
        
        

      

      
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