Document:

Exhibit 10.8

 

DEVELOPMENT, SUPPLY AND COMMERCIALIZATION
AGREEMENT

 

THIS DEVELOPMENT, SUPPLY AND COMMERCIALIZATION
AGREEMENT (this “Agreement”) dated as of November 7, 2017 (the “Effective Date”), is entered into between
***, with a place of business at ***, and ETON PHARMACEUTICALS, INC., a Delaware corporation (“Eton”), with a place
of business at 21925 Field Pkwy, Suite 235, Deer Park, Illinois 60010. The parties hereby agree as follows:

 

1.           Definitions.
For the purposes of this Agreement, the following terms shall have the respective meanings set forth below, and grammatical variations
of such terms shall have corresponding meanings:

 

1.1           “Affiliate”
shall mean, with respect to any Person, any other Person which directly or indirectly controls, is controlled by, or is under common
control with, such Person. A Person shall be regarded as in control of another Person if it owns, or directly or indirectly controls,
more than fifty percent (50%) of the voting stock or other ownership interest of the other Person, or if it directly or indirectly
possesses the power to direct or cause the direction of the management and policies of the other Person by any means whatsoever.

 

1.2           “***
Development Activities” shall mean all activities reasonably necessary to generate all data and information reasonably
required for the chemistry, manufacturing, and controls (CMC) portion(s) of Regulatory Filings for Product in the Territory (as
set forth in 21 C.F.R. § 314.50(d)(1)), including the drug product (as detailed in 21 C.F.R. § 314.50(d)(1)(ii),
including the drug formulation, drug batch manufacturing, a list of all components used in the manufacture of the drug product
and a statement of the composition of the drug product, the specifications for each component, and the proposed or actual master
product record); (c) the environmental impact (as detailed in 21 C.F.R. § 314.50(d)(1)(iii)); and (d) developing and validating
(i) the final and scaled-up manufacturing process, (ii) all appropriate analytical methods related to Product, and (iii) the finished
dosage formulation for Product.

 

1.3           “***
Development Costs” shall mean the lesser of (a) all of *** out of pocket costs directly incurred (and actually paid to
Third Parties) for the *** Development Activities and (b) one million dollars ($1,000,000).

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

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1.4           “***
Technology” shall mean all technology and intellectual property rights that were conceived, created, generated, made,
derived, developed or reduced to practice by or on behalf of*** (solely or jointly) either unrelated to *** performance of the
*** Development Activities or prior to the Effective Date to the extent (a) incorporated into the Work Product or (b) the use or
exploitation of which is reasonably necessary for the use or exploitation of the Work Product or the research, development, commercialization
or other exploitation of Product.

 

1.5           “API”
shall mean the active pharmaceutical ingredient corticotropin.

 

1.6           “Certificate
of Analysis” shall mean the certificate to be issued by *** for each batch or lot of Product stating the Specifications,
the testing results, and the analytical methods used.

 

1.7           “Certificate
of Compliance” shall mean the certificate to be issued by *** stating that the Product was manufactured and tested in
compliance with the terms and conditions of this Agreement, cGMP, all applicable laws and regulations and the Quality Agreement.

 

1.8           “cGMP”
shall mean the principles detailed in the United States Current Good Manufacturing Practices (21 C.F.R. §§ 200, 211 and
600).

 

1.9           “Clinical
Costs” shall mean all costs and expenses incurred by Eton or its Affiliates in connection with any preclinical, clinical
or bioequivalence studies for Product less the *** Development Costs.

 

1.10         “FDA”
shall mean the Food and Drug Administration of the United States or any successor thereto.

 

1.11         “First
Commercial Sale” shall mean, with respect to any Product, the first sale of such Product to a Third Party after Registration
of such Product.

 

1.12         “Eton
Development Activities” shall mean all activities reasonably necessary to generate all data and information reasonably
required for Regulatory Filings for Product in the Territory, including all preclinical, clinical, and bioequivalence studies,
but excluding the *** Development Activities.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	2	 

     

    

 

1.13         “Gross
Profits” shall mean, with respect to a Product, Net Sales of such Product less the fully-burdened cost of goods sold
determined in accordance with generally accepted accounting principles, including any applicable Third Party royalty payments or
similar payments and the applicable Transfer Price.

 

1.14         “Litigation
Expenses” shall mean all costs and expenses (including attorneys’ fees and costs), but excluding any royalty payments
or similar payments covered by Section 1.13, incurred by Eton or its Affiliates in connection with any claim, demand, action or
proceeding regarding Product, not to exceed two million dollars ($2,000,000) in the aggregate except upon mutual written agreement.

 

1.15         “Net
Sales” shall mean the gross sales price of Product invoiced by Eton or its Affiliates to customers who are not Affiliates
(or are Affiliates but are the end users of such Product), less (a) credits, allowances, discounts and rebates to, and chargebacks
from the account of, such customers; (b) freight and insurance costs in transporting Products; (c) cash, quantity and trade discounts,
rebates and other price reductions for Product; (d) sales, use, value-added and other direct taxes; (e) customs duties, tariffs,
surcharges and other governmental charges incurred in exporting or importing Product; and (f) an allowance for uncollectible or
bad debts determined in accordance with generally accepted accounting principles, which shall not exceed one percent (1%) of Net
Sales of the Product, and will be updated annually based on actual losses.

 

1.16         “Person”
shall mean any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, as
well as any syndicate or group of any of the foregoing.

 

1.17         “Product”
shall mean the product, in such form and formulation for injectable administration, containing corticotropin as an active
pharmaceutical ingredient with a concentration of 80 USP units/mL, USP, to be developed by ***  for the benefit of Eton in
accordance with this Agreement.

 

1.18         “Product
Profits” shall mean, with respect to a Product and will be calculated every calendar quarter, Gross Profits of such Product,
less (a) the Recovery Amount not previously deducted; (b) the Clinical Costs not previously deducted up to twenty-five percent
(25%) of Gross Profits for such calendar quarter; and (c) selling, general and administrative expenses related to the Product,
which shall not exceed twenty percent (20%) of Net Sales in any calendar quarter as determined in accordance with generally accepted
accounting principles, including sales commissions incurred on the sale of such Product.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission. 

 

    	 	3	 

     

    

 

1.19         “Purchase
Order” shall mean a written purchase order provided by Eton or its Affiliate to *** for the supply and purchase of Product
under this Agreement.

 

1.20         “Recovery
Amount” shall mean all Litigation Expenses and all costs and expenses incurred by Eton or its Affiliates in connection
with the development, commercialization, obtaining and maintaining Registrations and other exploitation or use of Product (including
any costs or expenses related to safety monitoring or recall of Product), but excluding Clinical Costs.

 

1.21         “Registration”
shall mean any registration, license, permit or governmental approval or clearance from the FDA or other regulatory authority necessary
for the purchase, distribution, promotion, marketing or sale of a human pharmaceutical product.

 

1.22         “Regulatory
Filing” shall mean any New Drug Application or Abbreviated New Drug Application, or any other application, notification
or submission made to or with the FDA or other regulatory authority for Registration of a human pharmaceutical product, together
with all amendments and supplements to any of the foregoing.

 

1.23         “Specifications”
shall mean the specifications for Product provided by Eton to *** hereunder, as modified from time to time by mutual written agreement
between the parties.

 

1.24         “Territory”
shall mean collectively all the territories and possessions of the United States of America and worldwide as mutually agreed by
both Parties.

 

1.25         “Third
Party” shall mean any Person other than Eton, *** or their respective Affiliates.

 

1.26         “Transfer
Price” shall mean, with respect to a Product purchased by Eton or its Affiliates from *** hereunder, one hundred twenty
percent (120%) of *** demonstrated costs to manufacture such Product but excluding any costs to procure API.

 

1.27         “Work
Product” shall mean all methods of manufacture or use of Product and all discoveries, inventions (whether or not protectable
under patent laws), designs, developments, works of authorship, data, information, compositions, formulae, procedures, protocols,
techniques, results of experimentation and testing and other technology and all intellectual property rights therein and thereto
conceived, created, generated, made, derived, developed, reduced to practice, or otherwise resulting from performance of the ***
Development Activities, whether directly or indirectly or solely or jointly with others.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	4	 

     

    

 

2.            Representations
and Warranties.

 

2.1         By
Each Party. Each party represents and warrants to the other party as follows:

 

2.1.1       Such
party is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized.

 

2.1.2       Such
party (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations
hereunder, and (b) has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the
performance of its obligations hereunder. This Agreement has been duly executed and delivered on behalf of such party and constitutes
a legal, valid, binding obligation, enforceable against such party in accordance with its terms.

 

2.1.3       All
necessary consents, approvals and authorizations of all governmental authorities and other Persons required to be obtained by such
party in connection with this Agreement have been obtained.

 

2.1.4           The
execution and delivery of this Agreement and the performance of such party’s obligations hereunder (a) do not conflict with
or violate any requirement of applicable laws or regulations, and (b) do not conflict with, or constitute a default under, any
contractual obligation of it. Neither party, its Affiliates, its (sub)contractors, nor any of its or their officers, directors,
employees or consultants, have been debarred by the FDA or other applicable governing health authority (or authorities), under
any existing or prior law or regulation.

 

2.2         By
***. *** represents and warrants to Eton as follows:

 

2.2.1       All
data, information, results of experimentation and testing provided by *** to Eton regarding Product shall be accurate and complete
in all respects.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	5	 

     

    

 

2.2.2       The
*** Development Activities shall be performed in a professional and workmanlike manner in accordance with the highest applicable
industry standards.

 

2.2.3       All
Product supplied by *** shall be manufactured, stored and supplied in accordance with, and otherwise perform its obligations hereunder
in accordance with, all applicable laws (including cGMP and all applicable FDA or other regulatory authority requirements), the
Quality Agreement, this Agreement and generally accepted professional standards.

 

2.2.4       All
Product supplied by *** shall be free from defect in workmanship and material and shall meet all Specifications. Upon delivery
of a Product, the Product shall be in conformity with applicable law and the Quality Agreement, and shall not be adulterated, misbranded,
misused, contaminated, tampered with or otherwise altered, mishandled, or subjected to negligence. Title to all Products delivered
hereunder shall pass to Eton concurrently with risk of loss, free and clear of all liens, encumbrances and other adverse claims.

 

2.3         DISCLAIMER
OF WARRANTIES. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN SECTION 2, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES,
EXPRESS OR IMPLIED, REGARDING THE TECHNOLOGY, THE PRODUCT OR ANY OTHER MATTER, INCLUDING ANY REPRESENTATION OR WARRANTY REGARDING
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT.

 

3.           Development
and Registration.

 

3.1         Initial
Technology Transfer. As soon as reasonably practical following the Effective Date, Eton shall provide *** with a copy of the
Specifications, the anticipated formulation for Product, and the initial manufacturing process for Product.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	6	 

     

    

 

3.2         ***
Development.

 

3.2.1       ***
shall be responsible for and shall perform the *** Development Activities in accordance with this Agreement, cGMP and all applicable
laws and regulations. Eton, at its sole expense, shall supply *** with such quantities of API, at such times as reasonably requested
by *** as necessary for use in the *** Development Activities.

 

3.2.2       ***
shall perform the *** Development Activities at its sole expense, provided, however, that *** out of pocket costs directly incurred
(and actually paid to Third Parties) for the *** Development Activities in excess of one million dollars ($1,000,000) shall be
shared by the parties as follows: seventy percent (70%) by Eton and thirty percent (30%) by ***.

 

3.2.3       ***
shall keep Eton reasonably informed of its progress in performing the *** Development Activities. Without limiting the generality
of the foregoing, following the end of each calendar quarter, *** shall prepare and provide Eton with (a) an invoice for reimbursement
of Eton’s share of any Third Party expenses set forth in Section 3.2.2 and (b) a reasonably detailed written report describing
in detail (i) its progress in performing the *** Development Activities sufficient to enable Eton to understand and monitor ***
diligence and the results thereof, through such date of such report, and (ii) the calculation of Eton’s share, if any,
of the Third Party expenses set forth in Section 3.2.2. Eton shall remit payment for Eton’s share, if any, of the Third Party
expenses set forth in Section 3.2.2 as properly set forth in such invoice and report within forty-five (45) days after receiving
such invoice and report.

 

3.3         Eton
Development. Eton shall be responsible for and shall perform, at its sole expense, all Eton Development Activities in accordance
with this Agreement, cGMP and all applicable laws and regulations. ***, at its sole expense, shall supply Eton with such quantities
of Product, at such times as reasonably requested by Eton, for use in connection with the Eton Development Activities.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	7	 

     

    

 

3.4         Work
Product.

 

3.4.1       ***
promptly shall disclose all Work Product to Eton and provide copies thereof in a form reasonably requested by Eton. Eton shall
own all Work Product, and *** hereby assigns to Eton all right, title and interest therein and thereto. Notwithstanding anything
to the contrary herein, all Work Product shall be Confidential Information of Eton.

 

3.4.2       If
*** incorporates or permits to be incorporated any *** Technology into the Work Product, or the use or exploitation of any ***
Technology is reasonably necessary for the use or exploitation of the Work Product or the research, development, commercialization
or other exploitation of Product, then *** hereby grants to Eton and its Affiliates a non-exclusive, royalty-free, irrevocable,
worldwide, fully paid-up license (with the right to grant sublicenses through multiple tiers) to use, practice and exploit such
*** Technology for such purpose.

 

3.4.3       ***
shall perform, during and after the Term, all acts that Eton deems necessary or desirable to permit and assist Eton in obtaining,
perfecting and enforcing the full benefits, rights and title in the Work Product. If Eton is unable for any reason to secure ***
signature to any document required to file, prosecute, register or memorialize the assignment of any rights under any Work Product,
*** hereby irrevocably designates and appoints Eton as *** agent and attorney-in-fact to act for and on *** behalf and instead
of *** to take all lawfully permitted acts to further the filing, prosecution, registration, memorialization of assignment, issuance
and enforcement of rights under such Work Product, all with the same legal force and effect as if executed by ***. The foregoing
is deemed a power coupled with an interest and is irrevocable.

 

3.5         Registration.

 

3.5.1       Eton
shall own any and all Regulatory Filings and Registrations for Product.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	8	 

     

    

 

3.5.2       Eton
shall have the exclusive right (a) to prepare, file, prosecute, submit and control all Regulatory Filings for Product; (b) to interact
and communicate with the FDA and other regulatory authorities regarding Regulatory Filings and Registration of Product; (c) to
collect information on the adverse effects of Product and report the same to the FDA and other regulatory authorities; and (d)
to coordinate and control any Recall (as defined below) of Product in accordance with this Agreement and applicable laws and regulations
and reporting relevant information to the FDA and other regulatory authorities.

 

3.5.3       Eton
shall pay filing fees associated with Regulatory Filings, but all filing fee expenses can be recouped through product sales as
a Recovery Amount.

 

3.5.4       ***
shall reasonably assist, execute such certificates and other instruments and documents, perform all such other acts as may be necessary
or appropriate and otherwise cooperate with and provide reasonable assistance to Eton as Eton may request from time to time regarding
any Regulatory Filings or amendments to Registrations for Product, including qualifying a Third Party second source of Product
in accordance with this Agreement and all applicable laws and regulations.

 

3.5.5       ***
shall be responsible for obtaining, at its own expense, all permissions, licenses and approvals necessary to perform its obligations
under this Agreement.

 

4.           Manufacture
and Supply.

 

4.1         Supply
to Eton.

 

4.1.1       Subject
to the terms and conditions of this Agreement, *** shall manufacture and supply Product exclusively to Eton and Eton’s Affiliates
during the Term.

 

4.1.2       During
the Term and for a period of two (2) years thereafter, *** shall not (a) market, solicit orders for, offer for sale, sell, import,
distribute, commercialize or otherwise provide Product to any other party; (b) directly or indirectly engage in or assist any Third
Party in the research, development, obtaining Registration, manufacture, offering for sale, sale, distribution, commercialization
or other provision or disposition of any product that comprises or contains ***; or (c) enter into any agreement to do any of the
foregoing.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	9	 

     

    

 

4.1.3       Eton
shall have the right (a) to engage a Third Party second source for Product and to purchase such amounts of Product from such second
source supplier as reasonably necessary to qualify and maintain such second source supplier for commercial production of Product
in accordance with prudent industry practices, and (b) to procure Product if, at any time, *** is unable to demonstrate to Eton’s
satisfaction that it will be able to timely supply Eton’s requirements for Product hereunder or upon *** prior written consent
to Eton.

 

4.2         Forecasts.

 

4.2.1       Not
less than ninety (90) days prior to the anticipated First Commercial Sale of Product and before the first (1st) business day of
each month thereafter, Eton shall provide *** with a written rolling twelve (12) month forecast of its good faith estimated requirements
for Product under this Section 4 (“Forecast”). The first six (6) months of each Forecast shall be binding (the “Firm
Order Period”) and simultaneously with submission of the Forecast, Eton shall submit Purchase Order(s) for the Product to
be delivered during the Firm Order Period. The remaining Forecast quantities estimated shall be non-binding and for planning purposes
only.

 

4.2.2       ***
shall supply the quantity of Product ordered by Eton under this Section 4 in any calendar month up to one hundred twenty percent
(120%) of the quantity forecasted for such calendar month in the most recent Forecast. If Eton’s Purchase Orders in any calendar
month exceed one hundred twenty percent (120%) of the quantity forecasted in the most recent Forecast, then *** shall use good
faith efforts to supply such excess.

 

4.3         Purchase
Orders.

 

4.3.1       Eton
or its Affiliate shall submit a Purchase Order to *** for each order of Product under this Agreement. Each Purchase Order shall
(a) indicate the quantity of Product required and the delivery date and (b) be submitted at least ninety (90) days prior to the
required delivery date. If no delivery date is specified in the Purchase Order, the Product shall be delivered hereunder ninety
(90) days after the Purchase Order date.

 

4.3.2       ***
shall accept all Purchase Orders that comply with the terms of this Agreement in writing to Eton. Any Purchase Order that is not
rejected by *** in writing within three (3) business days after its receipt due to non-compliance with the terms of this Agreement
shall be deemed accepted by ***.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	10	 

     

    

 

4.3.3       Unless
otherwise agreed to by the parties, the minimum shelf life of Product provided to Eton by *** shall not be less than seventy-five
percent (75%) of the approved shelf life after receipt of Product by Eton.

 

4.4         Transfer
of API.

 

4.4.1       Except
as set forth herein, Eton shall provide *** with quantities of API necessary to fulfill orders for Product and otherwise fulfill
its obligations hereunder at no cost to ***. Title and risk of loss shall transfer to *** upon delivery. *** shall handle, store
and use all such API in accordance with industry standards and all applicable laws and regulations to maintain such API at all
times for its intended purpose. *** shall use the API to fulfill its obligations hereunder and shall not use the API for any other
purpose.

 

4.4.2       If,
due to *** negligence, recklessness, willful misconduct or breach of this Agreement, API delivered under Section 4.4.1 is wasted,
spoiled or otherwise rendered unfit for its intended use (including by reason of Product rejection in accordance with Section 4.10),
then (a) *** shall notify Eton in writing of the amount of wasted, spoiled or otherwise unfit API, (b) Eton shall use commercially
reasonable efforts to procure replacement API for ***, and (c) *** shall pay Eton an amount equal to Eton’s fully-burdened
costs to procure and supply such replacement API. Eton shall invoice *** for the replacement API, and *** shall pay all such invoiced
amounts within forty-five (45) days after receipt of such invoice.

 

4.5         Quality
Agreement. Within ninety (90) days after the Effective Date or such other date as the parties mutually agree, the parties shall
enter into a quality agreement (the “Quality Agreement”) regarding the manufacture and supply of Product by *** to
Eton hereunder. The Quality Agreement shall contain provisions consistent with the provisions of this Agreement and such other
provisions as customary in the industry or otherwise required for compliance with cGMP and all other applicable FDA or other regulatory
authority requirements.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	11	 

     

    

 

4.6         Quality
Control.

 

4.6.1       ***
(a) shall manufacture all Product in accordance with the Specifications, the terms and conditions of this Agreement, cGMP, the
Quality Agreement and all applicable laws and regulations; and (b) shall cause all Product to be free from adulteration or defects.

 

4.6.2       In
accordance with the Quality Agreement, *** shall test and release, or cause to be tested and released by Third Party testing facilities
specified in the Quality Agreement and audited by ***, Product manufactured and supplied hereunder.

 

4.6.3       For
each shipment of Product to Eton hereunder, *** shall provide a Certificate of Analysis and a Certificate of Compliance along with
the shipment.

 

4.6.4       ***
shall prepare methods and all necessary documentation to enable testing of Product by Eton or its designee and shall deliver such
methods and necessary documentation to Eton before the first shipment of Product hereunder.

 

4.6.5       ***
shall properly store and retain appropriate samples (identified by batch number) of Product that it supplies to Eton in conditions
and for times consistent with all Specifications (which shall not be less than (a) five (5) years from the date of manufacture,
or (b) one (1) year following the retest date, whichever is longer) and to permit appropriate or required internal or external
regulatory checks and references (collectively, the “Retention Samples”). *** shall provide Eton with access to and
portions of the Retention Samples for testing and other purposes upon request.

 

4.6.6       ***
shall maintain all records relating to the manufacture, stability and quality control of all Product and all records reasonably
necessary to support and verify *** compliance with this Agreement and the Quality Agreement. *** shall maintain all such records
for a period of not less than five (5) years from the manufacturing date of Product to which such records pertain, or such longer
period as may be required by any applicable law.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	12	 

     

    

 

4.7         Trademarks.

 

4.7.1       Eton
shall have the right to determine the names and trademarks, trade names, designs, logos and markings (“Trademarks”)
used in connection with the promotion, marketing and sale of Product and shall own all such Trademarks. *** shall label and package
all Products hereunder in accordance with the respective labeling approved by Eton and in accordance with applicable laws.

 

4.7.2       Subject
to the terms and conditions of this Agreement, Eton grants to *** a non-exclusive, non-transferable, revocable and terminable license
to affix Eton’s Trademarks to Products and Product packaging as contemplated herein.

 

4.7.3       Except
as set forth herein, *** shall not (a) use any of Eton’s Trademarks, or any mark or name confusingly similar thereto, as
part of a corporate or business name or in any other manner, or (b) register any Trademark (including any company name) which is
identical to or confusingly similar to or incorporates any Trademark which Eton or any of its Affiliates owns or claims to own.
Any goodwill associated with Eton’s Trademarks affixed, applied or used in connection with the Product shall accrue to Eton’s
sole benefit. Eton shall have the right, at reasonable times, to conduct such inspections as reasonably necessary or appropriate
to police and monitor the use of the Trademarks hereunder.

 

4.7.4       Only
the limited license and rights to Eton’s Trademarks expressly granted in this Section 4.7 shall be of legal force and effect.
No rights or licenses are granted under any intellectual property rights of Eton’s except as expressly provided herein, whether
by implication, estoppel or otherwise.

 

4.8         Packing
and Shipping. All amounts of Product ordered by Eton shall be packed for shipment and storage in full accordance with applicable
law, the Specifications, Eton’s instructions and in full compliance with the Quality Agreement. Delivery shall be Ex Works
(Incoterms 2010) *** U.S. warehousing facility. Upon learning of any potential delivery delays, *** shall notify Eton as to the
cause of such delays and the actions taken by *** to resolve such delays. If *** fails to make deliveries at the specified time
and such failure is not caused by Eton, *** shall, at no additional cost to Eton, employ accelerated measures such as material
expediting fees, premium transportation costs, or labor overtime required to meet the specified delivery schedule or minimize the
lateness of deliveries.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	13	 

     

    

 

4.9         Transfer
Price. Subject to the terms and conditions of this Agreement, for any Product purchased from *** hereunder, Eton shall pay
to *** the applicable Transfer Price. *** shall invoice Eton for the applicable Transfer Price for Product purchased hereunder
after delivery of such Product. Payment shall be due within forty-five (45) days after receipt of such invoice.

 

4.10       Acceptance.
If a shipment of Product or any portion thereof is not in conformance with the Specifications, then Eton shall have the right to
reject such shipment, or the portion thereof that fails to so conform. Eton shall give written notice to *** of its rejection hereunder,
within forty-five (45) days after Eton’s receipt of such shipment, specifying the grounds for such rejection. *** shall replace
such rejected Product within ninety (90) days after receipt of notice of rejection thereof.

 

4.11       Pharmacovigilance.

 

4.11.1     Each
party shall maintain an effective system for the review, evaluation and reporting of Product complaints and adverse drug experiences,
as defined in 21 C.F.R. § 314.80(a) and as required under applicable law and in accordance with the Quality Agreement.

 

4.11.2     Each
party shall promptly (but in any event within three (3) business days) advise the other of any safety or toxicity problem of which
either party becomes aware regarding the Product. *** shall, within five (5) business days following notification to ***, inform
Eton in the event of any FDA or other regulatory inspection relating to the Product and shall immediately (but in any event within
one (1) business day) notify Eton in writing of any adverse event relating to the Product.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	14	 

     

    

 

4.12       Recall.

 

4.12.1     Each
party promptly shall notify the other party if a Product is determined to be the subject of a recall, market withdrawal, or correction
(collectively, “Recall”). In the event of a Recall, Eton shall be responsible for coordinating and managing such Recall.
*** shall reasonably cooperate with Eton and take all necessary actions that may be necessary for Eton to manage the Recall, including
providing Eton with any and all data, information and documents requested by Eton within three (3) days of such request. The parties
agree to cooperate in case of a Recall and provide such information as may be necessary to effectuate the Recall and to satisfy
any regulatory requests about the Recall.

 

4.12.2     If
a Recall is due solely to Eton’s breach of its obligations herein, gross negligence or willful misconduct, then Eton shall
bear all reasonable out-of-pocket costs and expenses (including attorneys’ fees) in connection with the Recall incurred by
either party or its Affiliates, including all notification letters, postage, phone calls, faxes, courier charges and all shipping
expenses (collectively, “Recall Expenses”). In all other cases, *** shall bear all Recall Expenses.

 

4.13       Access
and Inspections.

 

4.13.1     ***
shall (a) permit, and shall cause its Affiliates to permit, the FDA and other regulatory agencies to perform inspections of its
factory which contains the manufacturing operations for Product; (b) as soon as reasonably practicable, but in no event later than
forty-eight (48) hours after being notified of any proposed visit to, or inspection of, the factory, notify Eton of such inspections;
and (c) permit Eton or its representatives to be present and participate in such visit or inspection. *** promptly shall notify
Eton of all results of an inspection that affect the manufacturing processes of Product or that may affect *** ability to supply
Products to Eton hereunder.

 

4.13.2     During
the Term and for a period of two (2) years thereafter, *** shall make available to Eton or its representatives upon request all
documentation, records, raw data, specimens, labeling, certificates, specifications, formulae, data, procedures, and other work
product relating to the manufacture or testing of the Product, equipment, and facilities relating to this Agreement within thirty
(30) days advance notice for inspection by Eton, its representatives, including authorized Third Party consultants, or representatives
of the FDA or any other regulatory authority.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	15	 

     

    

 

4.13.3     Notwithstanding
the foregoing, Eton shall have the right to conduct audits under this Section 4.13 for cause, including pursuant to a notice from
the FDA or any other regulatory authority or an audit by the FDA or any other regulatory authority, as soon as practicable, but
not more than once per year. Eton shall have the right to access any facility manufacturing the Product on behalf of *** pursuant
to this Agreement, and all applicable records related thereto, to oversee production of the Product, to discuss and inspect its
manufacturing processes, and to test the Product and review *** records or the records of the applicable facility.

 

4.13.4     If
Eton observes, discovers or is notified of any variances from established standards and methods of production of the Product (or
any component thereof) at a manufacturing facility, Eton shall give written notice thereof to *** (“Variance Notice”),
and upon receipt of any such notice, *** promptly shall take all appropriate remedial or corrective action and give written notice
to Eton describing in reasonable detail such actions taken. Upon any failure to cure such variance or noncompliance set forth in
the Variance Notice within a reasonable amount of time, not to exceed ninety (90) days, in addition to any rights and remedies
available to Eton pursuant to this Agreement or under applicable law, Eton shall have the option to (a) implement such necessary
remedial actions necessary to cure such variance, or (b) terminate this Agreement. No inspections, audits or testing performed
by Eton as set forth in this Section shall relieve *** of any liability for the Product later found to be defective or for ***
failure to meet its obligations under this Agreement.

 

5.           Financial
Terms.

 

5.1         Remittance
to ***.

 

5.1.1       Subject
to the terms and conditions of this Agreement, Eton shall pay to *** thirty percent (30%) of the Product Profits.

 

5.1.2       In
the event that a Product is sold by Eton or its Affiliates in combination with one or more products which is itself not a Product,
then Net Sales of such combination shall be adjusted by multiplying the Net Sales of such combination by the fraction A/(A+B) where
A is the fair market value of the Product(s) and B is the fair market value of the other product(s) in the combination sale, each
as reasonably determined by Eton.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	16	 

     

    

 

5.2         Reports
and Payments. Within forty-five (45) days after the end of each calendar quarter, Eton shall deliver to *** a report showing
for such calendar quarter in reasonably specific detail the calculation of Net Sales, Gross Profits and Product Profits. Eton shall
remit the total payments due during such calendar quarter at the time such report is made. Payment in whole or in part may be made
in advance of such due date. Reports before the First Commercial Sale of such Product will only detail amounts Eton has spent on
Clinical Costs and Recovery Amounts. No payments shall be due for any Product before the First Commercial Sale. With respect to
amounts received in United States dollars, all amounts shall be expressed in United States dollars. With respect to amounts received
in a currency other than United States dollars, all amounts shall be expressed both in the currency in which the amount is invoiced
(or received as applicable) and in the United States dollar equivalent. The United States dollar equivalent shall be calculated
using the average of the exchange rate (local currency per US $1) published in The Wall Street Journal, Eastern Edition, under
the heading “Currency Trading” on the last business day of each month during the applicable calendar quarter.

 

5.3         Withholding
Taxes. Eton shall be entitled to deduct the amount of any withholding taxes, value-added taxes or other taxes, levies or charges
with respect to such amounts payable by Eton or its Affiliates, or any taxes required to be withheld by Eton or its Affiliates,
to the extent Eton or its Affiliates pay to the appropriate governmental authority on behalf of *** such taxes, levies or charges.
Eton shall use reasonable efforts to minimize any such taxes, levies or charges required to be withheld on behalf of *** by Eton
or its Affiliates. Eton promptly shall deliver to *** proof of payment of all such taxes, levies and other charges, together with
copies of all communications from or with such governmental authority with respect thereto.

 

5.4         Audits.

 

5.4.1       Upon
the written request of a party (the “Auditing Party”) and not more than once in each calendar year, the other party
shall permit an independent certified public accounting firm of nationally recognized standing selected by the Auditing Party and
reasonably acceptable to the other party, at the Auditing Party’s expense, to have access during normal business hours to
such of the financial records of the other party as may be reasonably necessary to verify the accuracy of any invoices, reports,
or other records of any amounts owed hereunder for the eight (8) calendar quarters immediately prior to the date of such request
(other than records for which the Auditing Party has already conducted an audit under this Section).

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	17	 

     

    

 

5.4.2       If
such accounting firm concludes that additional amounts were owed during the audited period, the other party shall pay such additional
amounts within thirty (30) days after the date the Auditing Party delivers to the other party such accounting firm’s
written report so concluding. The fees charged by such accounting firm shall be paid by the Auditing Party; provided, however,
to the extent the auditor determines an underpayment discrepancy greater than ten percent (10%), then the other party shall pay
the reasonable fees and expenses charged by such accounting firm.

 

5.4.3       The
Auditing Party shall cause its accounting firm to retain all financial information subject to review under this Section 5.4 in
strict confidence; provided, however, that the other party shall have the right to require that such accounting firm, prior to
conducting such audit, enter into an appropriate and reasonable non-disclosure agreement with the other party regarding such financial
information. The accounting firm shall disclose to the Auditing Party only whether the amounts are correct or not and the amount
of any discrepancy. No other information shall be shared. The Auditing Party shall treat all such financial information as the
other party’s Confidential Information (as defined below), and shall not disclose such financial information to any Third
Party or use it for any purpose other than as specified in this Section 5.4.

 

6.           Indemnification
and Insurance.

 

6.1         Indemnification
by ***. *** shall indemnify, defend and hold harmless Eton, its Affiliates, and its and their respective officers, directors,
shareholders, employees, agents and representatives (collectively “Eton Indemnitees”) from any and all losses, liabilities,
damages and expenses, including reasonable attorneys’ fees and costs (collectively, “Losses”) arising from any
claim, demand, action or other proceeding by a Third Party, to the extent arising out of or caused by (a) gross negligence or willful
misconduct of ***, its agents or Affiliates; (b) any breach of any representation, warranty or covenant of this Agreement by ***;
(c) *** failure to fully comply with all applicable laws regarding Product, its use, or any part thereof; or (d) infringement of
any intellectual property rights of a Third Party or misappropriation by *** or its Affiliates of any know-how of a Third Party
by use or exploitation of the *** Technology; provided, however, that the foregoing indemnity obligations shall not apply to the
extent that any Loss arises from, is based on, or results from any matter set forth in Section 6.2 for which Eton is obligated
to indemnify *** Indemnitees.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	18	 

     

    

 

6.2         Indemnification
by Eton. Eton shall indemnify, defend and hold harmless ***, its Affiliates, and its and their respective officers, directors,
shareholders, employees, agents and representatives (collectively “*** Indemnitees”) from any and all Losses arising
from any claim, demand, action or other proceeding by a Third Party, to the extent arising out of or caused by (a) gross negligence
or willful misconduct of Eton, its agents or Affiliates; (b) any breach of any representation, warranty or covenant of this Agreement
by Eton; (c) Eton’s failure to fully comply with all applicable laws regarding Product, its use, or any part thereof; (d) the
use of Product in accordance with the applicable label by any customer; (e) infringement of any intellectual property rights of
a Third Party or misappropriation by Eton or its Affiliates of any know-how of a Third Party by the use, exploitation or commercialization
of the Product; or (f) use of Eton’s Trademarks; provided, however, that the foregoing indemnity obligations shall not apply
to the extent that any Loss arises from, is based on, or results from any matter set forth in Section 6.1 for which *** is obligated
to indemnify Eton Indemnitees.

 

6.3         Procedure.
A party seeking indemnification (the “Indemnitee”) shall promptly notify the other party (the “Indemnifying Party”)
in writing of a claim, demand, action or proceeding; provided that an Indemnitee’s failure to give such notice or delay in
giving such notice shall not affect such Indemnitee’s right to indemnification under this Section 6 except to the extent
that the Indemnifying Party has been prejudiced by such failure or delay. The Indemnifying Party shall have the right to control
the defense of all indemnification claims hereunder. The Indemnitee shall have the right to participate at its own expense in the
claim, demand, action or proceeding with counsel of its own choosing. The Indemnifying Party shall consult with the Indemnitee
in good faith with respect to all non-privileged aspects of the defense strategy. The Indemnitee shall cooperate with the Indemnifying
Party as reasonably requested at the Indemnifying Party’s sole cost and expense. The Indemnifying Party shall not settle
or otherwise consent to an adverse judgment in any such claim, demand, action or other proceeding that diminishes the rights or
interests of the Indemnitee without the prior express written consent of the Indemnitee, which consent shall not be unreasonably
withheld or delayed.

 

6.4         Limitation
of IP Indemnification. If the Indemnifying Party reasonably determines that the aggregate of the Litigation Expenses and the
Losses arising out of or caused by infringement or misappropriation described in this Section 6 is likely to exceed two million
dollars ($2,000,000), then, without prejudice to any other rights or remedies the parties may have, the parties shall discuss in
good faith the merits of continuing to incur such Litigation Expenses or Losses.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	19	 

     

    

 

6.5         Insurance.
Each Party shall obtain, at its expense, the following minimum insurance coverages during the Term and for five (5) years thereafter.
Each party shall provide a certificate of insurance evidencing such coverage to the other party upon request.

 

6.5.1       ***
shall obtain the following insurance coverages:

 

(a)          worker’s
compensation insurance as required by applicable law;

 

(b)          product
liability insurance with respect to the Product with a minimum of five million dollars ($5,000,000) per occurrence and five million
dollars ($5,000,000) annual aggregate for bodily injury and property damage;

 

(c)          commercial
general liability insurance with a minimum of five million dollars ($5,000,000) per occurrence and five million dollars ($5,000,000)
annual aggregate; and

 

(d)          property
insurance (sufficient to fully cover the cost of replacement), through the designated freight carrier or otherwise, on all of the
Products at all times until receipt by Eton.

 

6.5.2       Eton
shall obtain the following insurance coverages:

 

(a)          worker’s
compensation insurance as required by applicable law;

 

(b)          product
liability insurance with respect to the Product with a minimum of five million dollars ($5,000,000) per occurrence and five million
dollars ($5,000,000) annual aggregate for bodily injury and property damage; and

 

(c)          commercial
general liability insurance with a minimum of five million dollars ($5,000,000) per occurrence and five million dollars ($5,000,000)
annual aggregate.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	20	 

     

    

 

6.6         LIMITATION
OF LIABILITY. WITHOUT LIMITING THE RIGHTS OR REMEDIES OF THE PARTIES REGARDING THE OBLIGATIONS TO INDEMNIFY, DEFEND AND HOLD
HARMLESS FOR INTELLECTUAL PROPERTY INFRINGEMENT PURSUANT TO SECTION 6.1(d) AND SECTION 6.2(e) THE MAXIMUM LIABILITY OF EACH PARTY
SHALL BE CAPPED AT $1 MILLION AND NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
WHETHER FORESEEABLE OR NOT, ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, REGARDLESS OF ANY NOTICE OF
SUCH DAMAGES.

 

7.           Confidentiality.

 

7.1         Confidential
Information. Each party shall maintain in confidence any and all information of the other party that is disclosed by the other
party, whether disclosed orally or in written, graphic, schematic, or electronic form, and identified as, or acknowledged to be,
confidential at the time of disclosure (the “Confidential Information”), and shall not use, disclose or grant the use
of the Confidential Information except on a strictly need-to-know basis to those directors, officers, affiliates, employees, permitted
licensees, permitted assignees and agents, consultants, clinical investigators or contractors, to the extent such disclosure is
reasonably necessary in connection with performing its obligations or exercising its rights under this Agreement. To the extent
that disclosure is authorized by this Agreement, prior to disclosure, each party hereto shall obtain agreement of any such Person
to hold in confidence and not make use of the Confidential Information for any purpose other than those permitted by this Agreement.
Each party shall notify the other promptly upon discovery of any unauthorized use or disclosure of the other party’s Confidential
Information.

 

7.2         Permitted
Disclosures. The confidentiality obligations contained in Section 7.1 above shall not apply to the extent that (a) any receiving
party (the “Recipient”) is required (i) to disclose information by law, regulation or order of a governmental agency
or a court of competent jurisdiction, or (ii) to disclose information to any governmental agency for purposes of obtaining approval
to test or market a product, provided in either case that the Recipient shall provide written notice thereof to the other party
and sufficient opportunity to object to any such disclosure or to request the highest level of confidential treatment thereof;
or (b) the Recipient can demonstrate that (i) the disclosed information was public knowledge at the time of such disclosure to
the Recipient, or thereafter became public knowledge, other than as a result of actions of the Recipient in violation hereof; (ii)
the disclosed information was rightfully known by the Recipient (as shown by its written records) prior to the date of disclosure
to the Recipient by the other party hereunder; (iii) the disclosed information was disclosed to the Recipient on an unrestricted
basis from a source unrelated to any party to this Agreement and not under a duty of confidentiality to the other party; or (iv)
the disclosed information was independently developed by the Recipient without use of the Confidential Information disclosed by
the other party.

 

7.3         Terms
of this Agreement. Except as otherwise provided in Section 7.2 above, neither party shall disclose any terms or conditions
of this Agreement to any Third Party without the prior consent of the other party. Upon a party’s request, the parties shall
discuss in good faith information that can be used to describe the terms of this transaction, and each party may disclose such
information, as modified by mutual agreement from time to time, without the other party’s consent.

 

    	 	21	 

     

    

 

7.4         Injunctive
Relief. Each party acknowledges that it will be impossible to measure in money the damage to the other party if such party
fails to comply with the obligations imposed by this Section 7, and that, in the event of any such failure, the other party may
not have an adequate remedy at law or in damages. Accordingly, each party agrees that injunctive relief or other equitable remedy,
in addition to remedies at law or damages, is an appropriate remedy for any such failure and shall not oppose the granting of such
relief on the basis that the disclosing party has an adequate remedy at law. Each party agrees that it shall not seek, and agrees
to waive any requirement for, the securing or posting of a bond in connection with the other party seeking or obtaining such equitable
relief.

 

8.           Term
and Termination.

 

8.1         Term.
The Agreement shall commence on the Effective Date and shall continue for a period of ten (10) years from the commercial launch
date of Product by Eton unless earlier terminated under Section 8.2 (the “Term”).

 

8.2         Termination.

 

8.2.1       In
the event of a material breach of this Agreement by either party, including for violation of any applicable trade control or anti-corruption
law, the non-breaching party may provide written notice of such breach to the breaching party, including a description of the breach,
and indicating the non-breaching party’s intent to terminate this Agreement. The breaching party shall have thirty (30) days
from its receipt of such notice to cure the breach, provided the breach is capable of being cured within the thirty (30) day period.
If the breaching party fails to cure the breach within such period, then unless otherwise agreed by the non-breaching party, this
Agreement shall terminate on the date that is thirty (30) days following the breaching party’s receipt of the notice of breach
from the non-breaching party. If the breach is not capable of being remedied within thirty (30) days, the Agreement terminates
upon the written notice.

 

8.2.2       Each
party shall have the right to terminate this Agreement immediately upon written notice if the manufacture, distribution or sale
of Product in the Territory materially contravenes any new or existing applicable law and cannot be brought into compliance with
such law within a reasonable period of time after notice thereof.

 

8.2.3       Eton
shall have the right to terminate this Agreement (a) immediately upon written notice to *** for *** failure to cure such variance
or noncompliance set forth in a Variance Notice pursuant to Section 4.13.3; (b) upon six (6) months prior written notice to ***
if any of *** Certificates of Analysis or Certificates of Conformance reveal that the Product is not in compliance with the Specifications
and such non-compliance is not cured before the expiration of such six (6) month period; or (c) upon thirty (30) days prior
written notice to *** if *** fails to complete the *** Development Activities and otherwise fulfill its obligations under Section
3.2.1 within two (2) years after the Effective Date.

 

    	 	22	 

     

    

 

8.2.4       Eton
shall have the right to terminate this Agreement upon thirty (30) days prior written notice to *** if (a) Eton determines that
the aggregate of Losses arising out of or caused by infringement or misappropriation described in clause (e) of Section 6.2
and Litigation Expenses is reasonably likely to exceed two million dollars ($2,000,000); (b) the FDA issues a Refusal to File
letter in response to the initial Regulatory Filing for Product; (c) Product is not first commercially sold within three (3) years
after the Effective Date; (d) Eton determines, after consulting with ***, that a Product presents patient safety or tolerability
issues; (e) Product Profits are less than thirty percent (30%) of the gross sales price invoiced by Eton for two (2) consecutive
calendar quarters; or (f) Eton otherwise reasonably determines to terminate this Agreement for regulatory, safety or commercial
reasons.

 

8.3         Effect
of Termination or Expiration.

 

8.3.1       Termination
or expiration of this Agreement shall be without prejudice to any rights which shall have accrued to the benefit of any party prior
to such termination or expiration. Without limiting the foregoing, Sections 2.3, 3.4, 3.5, 4.1.2, 4.6, 4.11, 4.12, 4.13, 6, 7,
8.3 and 9 shall survive any termination or expiration of this Agreement.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	23	 

     

    

 

8.3.1       If
Eton terminates this Agreement in accordance with Sections 8.2.2 or 8.2.4, then Eton shall, within thirty (30) days after
the date of termination, reimburse *** the positive remainder, if any, of the *** Development Costs minus the aggregate amount
of Product Profits paid by Eton to ***.

 

9.           Miscellaneous.

 

9.1         Relationship
of Parties. The relationship between *** and Eton, with respect to this Agreement, is only that of independent contractors
notwithstanding any activities set forth in this Agreement. Neither party is the agent or legal representative of the other party,
and neither party has the right or authority to bind the other party in any way. This Agreement creates no relationship as partners
or a joint venture, and creates no pooling arrangement.

 

9.2         Governing
Law and Resolution of Disputes.

 

9.2.1       This
Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to its conflict
of laws principles.

 

9.2.2       Any
and all disputes or claims arising from or out of this Agreement shall be litigated exclusively before a court of the State of
New York in New York City or, if subject matter jurisdiction exists, the United States District Court for the Southern District
of New York. Each party hereby irrevocably and unconditionally consents to the exclusive personal jurisdiction and service of,
and venue of, any such court, and further irrevocably and unconditionally waives and agrees not to plead or claim that any action,
lawsuit or proceeding brought in any such court has been brought in an inconvenient forum. Any judgment issued by such a court
may be enforced in any court having jurisdiction.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	24	 

     

    

 

9.3         Assignment.
Neither party shall assign its rights or obligations under this Agreement without the prior written consent of the other party,
which shall not be unreasonably withheld or delayed; provided, however, that a party may, without such consent, assign this Agreement
and its rights and obligations hereunder (a) to any Affiliate, or (b) in connection with the transfer or sale of all or substantially
all of its business to which this Agreement relates, or in the event of its merger, consolidation, change in control or similar
transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement. Any purported assignment
in violation of this Section 9.3 shall be void.

 

9.4         Counterparts.
This Agreement may be executed in several counterparts that together shall be originals and constitute one and the same instrument.

 

9.5         Waiver.
The failure of any party to enforce any of its rights hereunder or at law shall not be deemed a waiver of any of its rights or
remedies against another party, unless such waiver is in writing and signed by the party to be charged. No such waiver shall be
deemed a waiver of any subsequent breach or default of the same or similar nature or any other breach or default by such other
party. All rights and remedies conferred herein shall be cumulative and in addition to all of the rights and remedies available
to each party at law, equity or otherwise.

 

9.6         Severability.
If any provision of this Agreement, or part thereof, is declared by a court of competent jurisdiction to be invalid, void or unenforceable,
each and every other provision, or part thereof, shall nevertheless continue in full force and effect.

 

9.7         Notices.
Any consent, notice or report required or permitted to be given or made under this Agreement by a party to the other party shall
be in writing, delivered by any lawful means to such other party at its address indicated below, or to such other address as the
addressee shall have last furnished in writing to the addressor and (except as otherwise provided in this Agreement) shall be effective
upon receipt by the addressee.

 

If to ***:***

	If to Eton:	Eton Pharmaceuticals, Inc.
	 	21925 Field Pkwy, Suite 235
	 	Deer Park, Illinois 60010
	 	Attention:  Chief Executive Officer

 

9.8           Further
Assurances. The parties agree to execute such additional documents and perform such acts as are reasonably necessary to effectuate
the intent of this Agreement.

 

9.9           Entire
Agreement. This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof, and supersedes
all prior or contemporaneous understandings or agreements regarding the subject matter hereof, whether oral or written. This Agreement
shall be modified or amended only by a writing specifically referring to this Agreement signed by both Eton and ***.

 

    	 	25	 

     

    

 

9.10         Force
Majeure. Neither Party shall be liable for delays in its performance caused by events beyond its control, such as fires, floods,
epidemics, computer virus, earthquakes, riots, acts of terror, acts of God, storms, acts of civil or military authority or similar
occurrences, provided the affected party gives the other party written notice of such event within three (3) business days of its
occurrence. Such notice shall state the estimated duration of such event and the cause thereof and the affected party shall use
commercially reasonable efforts to work around such event beyond its control.

 

9.11         Use
of Other Party’s Name. Neither Party shall use the name of the other Party or any of its Affiliates for advertising,
promotional or other purposes without the prior written consent of the other Party.

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	26	 

     

    

 

9.12         Headings
and Construction. No rule of construction shall be applied to the disadvantage of a party because that party was responsible
for the preparation of this Agreement or any part of this Agreement. The Article and Section headings in this Agreement are for
convenient reference only and shall be given no substantive or interpretive effect. With respect to all terms used in this Agreement,
words used in the singular include the plural and words used in the plural include the singular. The word ‘including’
means including without limitation, and the words ‘herein,’ ‘hereby,’ ‘hereto’ and ‘hereunder’
refer to this Agreement as a whole. Unless the context otherwise requires, references found in this Agreement: (i) to Articles
and Sections mean the Articles and Sections of this Agreement, as amended, supplemented and modified from time to time; (ii) to
an agreement, instrument or other document means such agreement; (iii) to an agreement, instrument or other document means such
agreement, instrument or other document as amended, supplemented and modified from time to time, to the extent provided by the
provisions thereof and by this Agreement; and (iv) to a statute or a regulation mean such statute or regulation as amended from
time to time.

 

[Remainder of Page Intentionally Left Blank]

 

    	 	27	 

     

    

 

IN WITNESS WHEREOF, each party has caused
a duly authorized representative to execute this Agreement as of the Effective Date.

 

	 	***
	 	 
	 	***
	 	 
	 	ETON PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Sean Brynjelsen
	 	Name:	Sean Brynjelsen
	 	Title:	CEO

 

 

***Text
has been omitted pursuant to Registrant’s confidential treatment request filed with the Securities and Exchange Commission
(“Commission”) pursuant to Rule 406 under the Securities Act of 1933.  The omitted text has been filed separately
with the Commission.

 

    	 	28Exhibit 10.14

 

EXCLUSIVE
LICENSE AND

SUPPLY
AGREEMENT

 

This Exclusive
License and Supply Agreement (“Agreement”) is made and entered into as of August 3, 2018 (“Effective Date”),
between ETON PHARMACEUTICALS, INC., a Delaware corporation (“ETON”), with a place of business at 21925 Field Parkway,
Suite 235, Deer Park, IL 60010, LIQMEDS WORLDWIDE LIMITED, a private company limited by shares, registered in England and Wales
(“LMW”), with a place of business at 65 Delamere Road, Hayes, Middlesex, United Kingdom, UB4 0NN, and LM MANUFACTURING,
LTD. (“LM”), each a “Party” and collectively the “Parties”).

 

RECITALS

 

WHEREAS,
LMW has developed a proprietary solution designated as  Levothyroxine Oral Solution (the “Product”);

 

WHEREAS,
ETON is engaged in the business of licensing, developing, marketing, distributing and selling pharmaceutical drug products;

 

WHEREAS,
LM is engaged in the business of manufacturing the Product;

 

WHEREAS,
the Parties desire to enter into a license and supply agreement for the development, manufacture and marketing of the Product within
the Territory (as defined below) subject to the terms set out in this Agreement.

 

NOW,
THEREFORE, in consideration of the respective covenants, agreements, representations, warranties and indemnities herein contained
and for other good and valuable consideration (the receipt and sufficiency of which are acknowledged by each Party), the Parties
agree to the following terms and conditions:

 

AGREEMENT

 

		1.	Definitions.

 

“Accounting Standards” shall mean, with
respect to a Person, the current applicable Generally Accepted Accounting Principles (GAAP) in the United States of America consistently
applied by such a Person.

 

    	 	 	 

    	 	 

    

 

“Affiliate” means with respect to any Party,
any party controlling, controlled by or under common control with any such Party. For purposes hereof, “control” and
its derivatives means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Party, whether through the ownership of voting securities or voting interests, by contract or otherwise.

 

“ANDA” means an Abbreviated New Drug Application,
or similar application for marketing approval of a Product submitted to the FDA.

 

“API” means the active pharmaceutical ingredient
in unfinished form.

 

“Applicable Law” means as to any person
or entity, any treaty, constitution, statute, ordinance, law, rule or regulation, guidance issued by a governmental or regulatory
authority, or order or other determination of an arbitrator or a court or other governmental or regulatory authority, in each case
applicable to or binding upon such person or entity or any of its property or to which such person or entity or any of its property
is subject (including, without limitation, the U.S. Act and cGMPs).

 

“Calendar Quarter” means the three-month
period beginning on January 1, April 1, July 1, and October 1 of each calendar year.

 

“cGMP” generally means current Good Manufacturing
Practices in the Territory. With respect specifically to the Registration (NDA or ANDA), cGMP means the current Good Manufacturing
Practices as established by FDA as the same may be amended from time to time.

 

“CMO” means the acronym, Contract Manufacturing
Organization, a third-party contract manufacturer. The initial CMO is LM Manufacturing, Ltd. (“LM”)

 

“Commercial Launch” means the first shipment
of the Product in commercial quantities for commercial sale to a third party in the Territory after receipt of all applicable regulatory
approvals therefor.

 

“Components” means raw materials for use
in manufacturing of the API and/or the Product.

 

“FDA” means the United States Food and Drug
Administration and its successors.

 

“NDA” shall mean a New Drug Application,
or similar application for marketing approval of a Product submitted to the FDA.

 

“Insignia” means trademarks, trade names,
logos, symbols, badges, labels, decorative designs, packaging designs or similar trade dress.

 

    	 	 	 

    	 	 

    

 

“Net Profit” shall mean Net Sales less (i)
ETON’s Transfer Price paid for the Product, (ii) the cost of any customs duties, tariffs, freight, recall fees, patient assistance/copay
programs and insurance for shipment of the Product, and (iii) supply marketing and management fee (“SMM Fee”) in connection
therewith billed to a Third Party by ETON or any of its Affiliates or sublicensees and before income taxes. Net Profits shall be
calculated in accordance with U.S. generally accepted accounting principles.

 

“Net Sales” shall mean, with respect to
any Calendar Quarter, the actual total gross sales of the Product (number of units times the invoice price per unit) by ETON or
its Affiliates in the Territory to Third Party customers (including hospital sales, mail orders, retail sales, and sales to governmental
entities, wholesalers, and medical institutions) less the following deductions: (i) cash or prompt payment discounts, credits or
allowances actually granted upon claims, damaged goods, rejections or returns of the Product; (ii) services fees, distribution
fees or commissions payable to Third Party customers; (iii) Freight, postage shipping and insurance charges for the delivery of
the Product to Third Party customers if separately stated on the invoice; (iv) taxes (excluding income taxes) or duties levied
on, absorbed or otherwise imposed on the sale of the Product; (v) adjustments on account of price adjustments or one-time per customer
stocking allowances; (vi) chargebacks resulting from resales by wholesalers and distributors to other Third Parties; (vii) rebates,
promotional allowances, administrative fee agreements and similar buying groups, health care insurance carriers, pharmacy benefit
management companies, health maintenance organizations, Medicaid or Medicare or similar type programs, professional allowances,
trade spend and payments to public or private third party payers; and (viii) other programs of monetary value usual or customary
in the pharmaceutical industry in the Territory provided to customers and (ix) any invoiced amounts which are not collectable by
ETON or its Affiliates (including bad debts), the entire set of aforementioned deductions (i through ix inclusive) as solely in
connection with the sale of the Product and as determined in accordance with U.S. generally accepted accounting principles.

 

“Person” shall mean an individual, a corporation,
a company, a firm, a joint venture, a partnership, an association, a trust or other business entity or organization, including
a government or agency or political subdivision thereof.

 

“Product” means Levothyroxine Oral Solution.

 

    	 	 	 

    	 	 

    

 

“Territory” means collectively all the territories
and possessions of the United States of America.

 

“US Regulatory Agent” means, the party responsible
for all communications with the FDA for the NDA or ANDA, including but not limited to compiling and submission of Annual Reports,
any necessary Pharmacovigilance, and AE reporting.

 

		2.	License Grants and Financial Terms.

 

		a.	License Grants. Subject to the terms of this Agreement, LMW hereby grants to ETON an exclusive
license of the Product for the development, manufacture, importation, use, sale and offer for sale of the Product, including any
and all intellectual property related to the Product, in the Territory.

 

____________________________

 

		b.	Milestone Payments. Within thirty (30) days following the first achievement of each of the
following milestone events, ETON shall pay to LMW the corresponding non-reimbursable milestone payments, not to exceed four million
six hundred thousand dollars ($4,600,000.00 US), as follows:

 

	Milestone Event	   	Milestone Payment
	 	 	 
	Upon execution of this exclusive license and supply agreement (“Agreement”)	 	Three hundred fifty thousand dollars ($350,000.00 US)
	 	 	 
	Upon FDA acceptance of NDA filing for review	 	
        One million five hundred thousand dollars

        ($1,500,000.00 US)

	 	 	 
	Upon FDA approval of NDA, provided that the approval is received prior to December 31, 2020	 	
        One million dollars

        ($1,000,000.00 US)

	 	 	 
	Upon issuance of Product patent listed in the FDA’s Orange-Book	 	
        One million two hundred fifty thousand dollars

        ($1,250,000.00 US)

	 	 	 
	If Product sales exceed $10 million US within a calendar year	 	
        Five hundred thousand dollars

        ($500,000.00 US)

 

		c.	Profit Sharing. Subject to the terms of this Agreement, ETON shall pay to LMW thirty-five
(35%) of the Net Profit, payable on a quarterly calendar basis; provided however, that if during any Calendar Quarter the Net Profits
are negative (less than zero) then a negative balance will accrue and will be offset by future milestone or profit share payments
owed to LMW. Profit sharing payments, accompanied by a statement reasonably setting forth the basis for the calculation, shall
be tendered by ETON to LMW within forty-five (45) days following the end of the Calendar Quarter. Deductions under Net Profits,
if any, shall be summarized in reasonable detail with corresponding supporting documentation.

 

    	 	 	 

    	 	 

    

 

		3.	Product NDA/ANDA.

 

		a.	NDA/ANDA. Subject to the terms and conditions of this Agreement, LMW hereby grants to ETON
the exclusive right to develop, obtain regulatory approval for, make, have made, use, sell, offer to sell, import and otherwise
commercialize Products in the Territory. ETON will be the owner of the NDA/ANDA and shall take all reasonably necessary steps to
obtain an NDA/ANDA for the Product in the Territory by performing such development and obtaining such data and information as reasonably
necessary therefor.

 

		b.	NDA/ ANDA Submission Fees. ETON shall be responsible for the submission fees for the NDA/ANDA.
ETON shall have the right to recoup thirty-five (35%) any such fees from initial profits prior to any profit sharing with LMW.
Both Parties shall cooperate in the performance of the regulatory obligations and shall provide each other, in a timely manner
(for the Annual Report this is defined as 40 days after the anniversary date for approval of the NDA or ANDA) with such information,
assistance, documents and reports reasonably required to perform such obligations.

 

		c.	Pre-IND Meeting. Within forty-five (45) days after the Effective Date, ETON will request
a Pre-IND meeting with the FDA. LMW agrees to cooperate with ETON’s requests for information required in preparation for
the meeting and preparation of the briefing package.

 

		d.	Bioequivalence Study. LMW shall be solely responsible for the coordination and management
of the bioequivalence study, subject to ETON’s written approval of the study design, protocols, clinical research organizations
prior to initiation of the study. LMW shall be solely responsible for the cost of the bioequivalence study, except that ETON shall
reimburse LMW for forty (40%) of the costs actually incurred by LMW in the performance of the study. The study shall be completed
by no later than December 31, 2018.

 

		e.	Quality Agreement. As soon as practicable following the Effective Date, but not later than
ninety (90) days, the Parties shall enter into the Quality Agreement. The Quality Agreement shall be substantially similar to ETON’s
standard quality agreement, and shall contain provisions consistent with the provisions in this Agreement and such other provisions
as otherwise required for compliance with cGMP and all other applicable FDA requirements.

 

    	 	 	 

    	 	 

    

 

		4.	Manufacturing and Supply.

 

		a.	Manufacturer. The Product shall be manufactured by LM MANUFACTURING, LTD. (“LM”), exclusively for ETON in
conformity with the applicable requirements and specifications (for both the API or the Product, as applicable) as set forth in
this Agreement (including, but not limited to, the Specifications and Applicable Law). ETON shall be granted rights of inspection
and audit over the manufacturing facility. LM shall be responsible for maintaining applicable governmental licenses and permits,
including Finished Dosage Form facility fee, at its own expense. LM shall purchase raw materials and Components through vendors
approved for the API and the Product by the FDA pursuant to the NDA or ANDA. LMW shall be responsible for ensuring that LM complies
with the terms of this Agreement and delivers Product in conformance with the requirements of (i) all Applicable Law; (ii) cGMP;
(iii) the Quality Agreement; and (iv) the Agreement. Any and all manufacturers manufacturing the Product or any component thereof
must have received and continue to maintain satisfactory cGMP inspection status. Under no circumstances whatsoever, may the API
or any Component of the Product manufactured under this Agreement be manufactured at a facility that fails to maintain the inspection
status or requirements of this Agreement.

 

		b.	Secondary Supply. If LM does not receive FDA approval by June 30, 2019 or if ETON believes LM will have issues meeting
Product demand, ETON shall have the right to transfer manufacturing of the Product to an alternate manufacturer of its sole and
exclusive choosing, however LMW will be informed about this within appropriate time. Any costs incurred by ETON for the qualification
of a manufacturer pursuant to this section shall be deducted from any profit share or milestone payment owed to LMW pursuant to
this Agreement.

 

		c.	Purchase Orders. This Agreement applies to all Purchase Orders that ETON, and/or any of its current or future Affiliates,
may place with LM for the purchase of Product. The terms and conditions of this Agreement including those presented in all exhibits
attached hereto shall apply to any Purchase Order, regardless whether this Agreement or its terms and conditions are expressly
referenced in such Purchase Order. Any term or condition set forth in (i) any Purchase Order; or (ii) any acknowledgment or sale
document from LM that is inconsistent or not provided in this Agreement shall not be applicable to any orders for the Product placed
by ETON during the Term, unless expressly agreed to by the Parties in writing. LM shall be deemed to have accepted a Purchase Order
for which LM does not notify ETON in writing within seven (7) business days after its receipt, provided that LM may only reject
such Purchase Order to the extent it is inconsistent with the terms of this Agreement. LM shall be deemed to have accepted all
Purchase Orders that are consistent with this Agreement. Product will be delivered in the timeframe set forth in the applicable
Purchase Order; provided, however, that: (a) if no timeframe is specified in the Purchase Order, Product will be delivered ninety
(90) days after the Purchase Order date and (b) unless otherwise agreed by the Parties, any delivery date specified in a Purchase
Order will not be earlier than ninety (90) days after the Purchase Order date.

 

    	 	 	 

    	 	 

    

 

		d.	No Minimum Orders or Forecasts. ETON shall not be subject to any minimum order requirements. Eton will be required to
provide annual forecasts of upcoming Product purchases with six months’ firm forecast.

 

		e.	Transfer Price. ETON shall pay to LM a transfer price equal to LM’s actual direct costs to manufacture the product,
including API, material, and direct labor costs (the “Transfer Price”). LM shall provide ETON with an itemized calculation
of the Transfer Price. The initial Transfer Price is estimated at approximately twenty dollars $20.00 US per bottle.

 

		f.	Invoices. Except as mutually agreed by the Parties, LM will invoice ETON for the Transfer Price of Product purchased
under this Agreement and any applicable freight costs owed for such Product. Payments are due within thirty (30) days after invoice
receipt for Product purchased by ETON.

 

		g.	SMM Fees. ETON shall be entitled to compensation for managing the supply and marketing of the Product in the Territory
(the “SMM Fee”), as follows:

 

		·	Fifteen percent (15%) of Net Sales realized in the first twelve (12)
months following the Commercial Launch of the Product.

 

		·	For each subsequent twelve (12) month period thereafter:

		·	Fifteen percent (15%) of Net Sales, for Net Sales between $0 and $15,000,000
US;

		·	Twelve and one-half percent (12.5%) of Net Sales, for Net Sales between
$15,000,001 and $30,000,000 US;

		·	Ten percent (10%) of Net Sales, for Net Sales of greater than $30,000,000
US.

 

Notwithstanding the foregoing, in the event the parties
launch an Authorized Generic of the Product (“AG”), the SMM Fee for such AG shall be seven and one-half (7.5%) of the
Net Sales attributable to such AG for each twelve (12) month period, following the Commercial Launch of the AG.

 

		5.	Delivery and Acceptance.

 

		a.	Deliveries. Failure to deliver the Product of the quality and quantity in accordance with this Agreement or by the scheduled
shipment date stated in the applicable Purchase Order shall, at the option of ETON, relieve it of any obligation to accept and
pay for any of the Product which is not of proper quality or quantity (product not delivered or shorted) under such Purchase Order,
as well as any undelivered shipments, if any. Any failure by ETON to exercise its option with respect to any shipment of the Product
as set forth in this section shall not be deemed to constitute a waiver with respect to subsequent shipments.

 

    	 	 	 

    	 	 

    

 

		b.	Batch Certifications. LM or a duly authorized representative (CMO) shall conduct quality control tests on the API and
the Product prior to shipment in accordance with all applicable laws, regulations and requirements set forth in the NDA/ANDA specifications,
and all applicable test methods; (ii) at ETON’s request, furnish samples of the API or Product to ETON; and (iii) deliver
with each shipment of Product, a Certificate of Analysis for each Product lot included in a shipment in accordance with the Specifications.

 

		c.	Acceptance of Product.

 

		(i)	ETON may examine and test Product as it sees fit and may reject Product provided hereunder by LM if such Product is defective
for any reason, adulterated or misbranded in any manner, or otherwise poses a threat of harm to the public (including, without
limitation, by failing to meet the requirements of this Agreement, the Quality Agreement, any Applicable Law, the Specifications
or the NDA/ANDA’s requirements) (collectively, a “Product Defect”); provided, however that ETON shall give written
notice to LM of its rejection of any Product hereunder, together with appropriate documentation for its decision (a “Rejection
Notice”), within fifteen (15) days after ETON’s receipt of shipment of such Product. The Rejection Notice shall specify
the grounds for rejection. If such Rejection Notice is not received within fifteen (15) days after ETON’s receipt of any
Product, such Product shall be deemed to be accepted by ETON. However, any Product Defect that would not be discoverable upon a
reasonable inspection of a Product (a “Hidden Defect”) will not be deemed accepted by ETON at any time. As soon as
possible but not exceeding the shelf life of any Product, if either Party becomes aware of a Hidden Defect in such Product, it
will, within five (5) business days of becoming aware of such Hidden Defect, notify the other Party in writing about all Product
involved (a “Hidden Defect Rejection Notice”). At ETON’s discretion, any Product subject to a Hidden Defect shall
be deemed rejected as of the date of any such Hidden Defect Rejection Notice.

 

		(ii)	LM may dispute a Rejection Notice or Hidden Defect Rejection Notice by providing written notice to ETON of the dispute within
fifteen (15) days after receipt of such Rejection Notice or Hidden Defect Rejection Notice (as applicable), which notice from LM
shall specify, in reasonable detail, the grounds for the dispute.

 

		(iii)	If a Rejection Notice or Hidden Defect Rejection Notice for any Product is not disputed by LM as set forth in this section
or if, in the event of a rejection dispute between the Parties, the contract laboratory referred to below gives a decision in favor
of ETON, then:

 

		a.	ETON may withhold all payment for the rejected Product;

 

    	 	 	 

    	 	 

    

 

		b.	Where payment for the rejected Product has been made, LM will promptly issue a full credit or pay a full refund (as selected
by ETON) to ETON for the rejected Product;

		c.	LM will promptly pay to ETON any and all reasonable out-of- pocket costs and expenses resulting from the Product Defect, Hidden
Defect or Product rejection, including but not limited to customer failure- to-supply penalties and destruction costs; and

		d.	LM will promptly supply ETON with conforming Product in replacement of the rejected Product.

 

		(iv)	If there is a dispute between the Parties with respect to the rejection of Product, the Parties will first seek to amicably
resolve the dispute among themselves. If, after thirty (30) days, the Parties believe that the dispute cannot be amicably resolved,
then the Parties shall mutually agree on a contract laboratory to conduct further testing of rejected Product in or order for the
laboratory to determine whether the rejected Product meets the requirements for rejection set forth in this section. The Party
whose conclusions are not borne out by the laboratory shall bear the cost of such testing. If the contract laboratory gives a decision
in favor of LM, ETON shall promptly pay for the Product subject to the dispute, if such payment had not earlier been made; if the
contract laboratory gives a decision in favor of ETON, LM shall immediately perform its obligations pursuant to this section. The
decision of the contract laboratory, to the extent dispositive of a Product rejection dispute between the Parties, shall be binding
upon the Parties with respect to such rejection dispute.

 

		6.	Commercialization, Marketing and Distribution.

 

		a.	ETON, its affiliates, or designated third-party marketing partner shall use reasonable commercial efforts consistent with normal
business practices to develop and commercialize the Product in the Territory. ETON shall be responsible, in its sole and absolute
discretion to direct the sale, marketing and promotional activities of the Product. Pricing, methods of distribution, contracting
and any other decisions related to the sales and marketing of the Product shall be solely decided by ETON.

 

		7.	Intellectual Property.

 

		a.	Licensing. LMW grants ETON, its affiliates or designated marketing partner an exclusive, royalty-free license to any
and all current and future intellectual property related to the Product in the Territory.

 

    	 	 	 

    	 	 

    

 

		b.	Branding of Product.

 

		(i)	LMW shall label and package all Product in accordance with the respective labeling approved by ETON and in accordance with
Applicable Laws. Once approved by ETON, LMW will not change in any manner any labeling of any Product manufactured by LM for ETON
without the prior written consent of ETON.

 

		(ii)	ETON’s Insignia shall be affixed to the Product as directed by ETON. All related sales brochures, marketing materials,
and packaging shall only bear ETON’s Insignia as directed by ETON.

 

		(iii)	ETON shall be responsible for submission of all marketing and promotional materials utilized by either Party to FDA as required
by Applicable Law.

		(iv)	LMW grants to ETON during the Term a non-exclusive, indivisible, revocable and terminable license, without the right to sublicense,
to use the LMW Insignia in the Territory as specifically directed by ETON in writing, and only to the extent necessary to label
and brand the Product and related sales brochures, marketing materials, and packaging pursuant to ETON’s specifications,
and for no other purposes.

 

		(v)	Notwithstanding any of the provisions of this Agreement, LMW shall not at any time do anything or act in any way that would
or might adversely affect the value or validity of any ETON Insignia or other Intellectual Property Rights belonging to ETON. LMW
shall immediately notify ETON in writing upon becoming aware of any infringement, misappropriation or imitation of any Intellectual
Property Rights of ETON or of any facts that LMW believes might constitute infringement, misappropriation or imitation thereof.
All uses of ETON’s Insignia shall inure exclusively to ETON’s sole benefit.

 

		8.	Non-Compete.

 

		a.	During the Term of this Agreement, and for a period of five (5) years thereafter, LMW will not research, develop, manufacture,
file, sell, market, or distribute any competitive product, nor will LMW directly or indirectly assist any other person or entity
in carrying out any such activities. “Competitive Product” means any product containing the same API as the Product(s)
which is marketed and sold for the oral route of administration.

 

    	 	 	 

    	 	 

    

 

		9.	Confidentiality.

 

		a.	The Receiving Party shall keep the Disclosing Party’s Confidential Information confidential
and shall not directly or indirectly, use, divulge, publish or otherwise disclose or allow to be disclosed any aspect of the Disclosing
Party’s Confidential Information, except (i) with the Disclosing Party’s prior written consent, (ii) as permitted
by this Agreement or (iii) to the Receiving Party’s Representatives (as defined below) who need to know such Confidential
Information for the purposes of this Agreement, provided that prior to such disclosure to such a Representative, the Representative
shall be bound by obligations of confidentiality to the Receiving Party at least as restrictive as those of this Agreement and
shall be advised of the confidential nature of such information. The Receiving Party will be responsible for any breach of this
section resulting from the conduct of its Representatives. “Representative” of a Party means such Party’s Affiliates
and its and their officers, directors, employees, agents and advisors. Upon written request by the Disclosing Party, the Receiving
Party shall promptly return to the Disclosing Party or, if elected by the Receiving Party, destroy, any Confidential Information
of the Disclosing Party in the possession or control of the Receiving Party or its Representatives, provided that the Receiving
Party may retain one (1) copy of such information to be used solely for determining the rights of the Parties hereunder or as required
by Applicable Law and may retain copies thereof in its information technology systems (all of which retained Confidential Information
will remain subject to the terms and conditions of this Agreement). Notwithstanding anything to contrary herein, Confidential Information
of the Disclosing Party shall not include any information that falls within any of the following exceptions, provided the Receiving
Party produces credible written evidence to establish or otherwise establishes that such information:

 

		(i)	is or becomes part of the public domain without breach of this Agreement by the Receiving Party or any of its Representatives;

		(ii)	is independently developed or discovered by or for the Receiving Party without use of or reference to Confidential Information
of the Disclosing Party;

		(iii)	is received from a third party who lawfully acquires such information without an obligation of confidentiality, and without
breach of this Agreement by the Receiving Party; or

		(iv)	was in the Receiving Party’s possession without an obligation of confidentiality to the Disclosing Party prior to the
disclosure by the Disclosing Party.

 

		b.	If the Receiving Party or any of its Representatives becomes required pursuant to Applicable Law, any rule or regulation (including,
without limitation, subpoena, civil investigative demand, compulsory process or other legal requirement) to disclose any Confidential
Information of the Disclosing Party, then (i) the Receiving Party will promptly notify the Disclosing Party in writing thereof
and will cooperate with the Disclosing Party, at the Disclosing Party’s expense, in seeking a protective order or confidential
treatment and (ii) the Receiving Party and its Representatives may disclose such Confidential Information to the extent so required.

 

		c.	The Disclosing Party would be irreparably injured by a breach of this section by the Receiving Party, and such a breach would
not be compensable in money damages. Accordingly, in addition to any other rights and remedies of the Disclosing Party pursuant
to this Agreement and Applicable Law, the Disclosing Party shall be entitled to seek injunctive and other equitable relief with
respect to any breach or threatened breach of this section.

 

    	 	 	 

    	 	 

    

 

		d.	The rights and obligations of the Parties pursuant to this section will terminate five (5) years
after the termination or expiration of this Agreement.

 

		10.	Insurance. Each Party shall obtain, at its expense, the following minimum insurance coverages during the term of this Agreement
and for five (5) years thereafter:

 

		a.	For ETON, the following insurance coverages:

 

		(i)	Worker’s compensation insurance as required by applicable law;

		(ii)	Product liability insurance with respect to the Product with a minimum of Five Million Dollars ($5,000,000) per occurrence
and Five Million Dollars ($5,000,000) annual aggregate for bodily injury and property damage;

		(iii)	Commercial general liability insurance with a minimum of Five Million Dollars ($5,000,000) per occurrence and Five Million
Dollars ($5,000,000) annual aggregate; and

		(iv)	Property insurance (sufficient to fully cover the cost of replacement), through the designated freight carrier or otherwise,
on all of the Products at all times until receipt by ETON.

 

		b.	LMW shall be liable for any Product defects, to the extent of the maximum value of the defective goods or the aggregate amount
payable pursuant to this Agreement, whichever is greater.

 

		c.	Limitation of Liability.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,
NEITHER PARTY SHALL BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, WHETHER FORESEEABLE OR
NOT, THAT ARE IN ANY WAY RELATED TO THIS AGREEMENT.

 

    	 	 	 

    	 	 

    

 

		11.	Indemnification.

 

		a.	LMW Indemnification Obligations. LMW shall indemnify, defend and hold harmless ETON, and its Affiliates, and their respective
officers, directors, shareholders, employees, agents and representatives (collectively “ETON Indemnitees”) for, from
and against all third-party claims, damages, liabilities, losses and other expenses, including but not limited to reasonable attorneys’
fees and costs (collectively, “Third Party Claims”), whether or not a lawsuit or other proceeding is filed, to the
extent arising out of or caused by (i) any dispute or claim that the Product, its design or any of its elements, or any LM manufacturing
processes or methods employed or to be employed by or on behalf of LM, infringe, misappropriate or violate any third party’s
Intellectual Property Rights; (ii) product liability claims, injury to or death of persons or damage to property that may have
been caused, or that may be alleged to have been caused, directly or indirectly, by LMW, LM or any the manufacturing, storage or
transportation processes or methods employed or to be employed at a manufacturing facility used by or on behalf of, LMW, LM, or
any Affiliate thereof, any subcontractor of LMW, LM or any of their Affiliates, or any of their respective employees or agents;
(iii) any defect in the Product, its design, manufacture, or other failure of the Product to comply with its respective Specifications,
Applicable Law (including, without limitation, cGMPs) or the other requirements of this Agreement, including but not limited to
any costs associated with Product recalls; (iv) any negligent act or omission, recklessness, willful misconduct or fraud of LMW,
LM, or any of their respective agents, or subcontractors; (v) any breach of any representation, warranty, or covenant of this Agreement
by LMW, whether resulting from the conduct of LMW, LM or otherwise; (vi) LMW’s or LM’s failure to fully conform to
all Applicable Laws, ordinances, rules and regulations which affect the Product, its use, or any part thereof or that are otherwise
applicable to LMW or LM (including, without limitation, cGMPs), or (vii) any claim of a third party that any right granted to ETON
under this Agreement is in conflict with any of the rights granted to such third party or otherwise infringes, conflicts with,
breaches or results in a default under any agreement to which such third party is or claims to be entitled; provided, however,
that LMW shall have no such obligation to indemnify, defend or hold harmless with respect to any Third Party Claim to the extent
such Third Party Claim is caused by the recklessness, willful misconduct or fraud of any ETON Indemnitee, or ETON’s breach
of this Agreement.

 

		b.	ETON Indemnification Obligations. ETON shall indemnify, defend and hold harmless LMW, and its affiliates, and their
respective officers, directors, shareholders, employees, agents and representatives (collectively “LMW Indemnitees”)
for, from and against all Third Party Claims, whether or not a lawsuit or other proceeding is filed, to the extent arising out
of or caused by (i) any dispute or claim that any of ETON Insignia or any of their elements infringe or violate any third party’s
Intellectual Property Rights; (ii) any negligent act or omission, recklessness, willful misconduct or fraud of ETON, its agents,
or Affiliates; (iii) any breach of any representation, warranty, or covenant of this Agreement by ETON; or (iv) ETON’s failure
to fully conform to Applicable Laws which affect the Product, its use, or any part thereof or that are otherwise applicable to
ETON; provided, however, that ETON shall have no such obligation to indemnify, defend or hold harmless with respect to any Third
Party Claim to the extent such Third Party Claim is caused by the recklessness, willful misconduct or fraud of any LMW Indemnitee,
or LMW’s breach of this Agreement.

 

    	 	 	 

    	 	 

    

 

		12.	Representations and Warranties.

 

		a.	ETON Representations and Warranties. ETON represents, warrants and covenants: (i) that it has the full power, right
and authority to execute and deliver this Agreement and that it shall use commercially reasonable best efforts to perform its obligations
hereunder; (ii) that it will assign to its performance of this Agreement professional personnel, qualified to perform the process
procedures consistent with the technical requirements of this Agreement; (iii) that none of the ETON personnel to be assigned to
this Agreement have or shall have been subject to debarment under the United States Generic Drug Enforcement Act or any other penalty
or sanction by FDA; and (iv) ETON will comply (and will cause any agents, subcontractors or other third parties conducting business
relating to the ANDA on ETON’s behalf to comply) with the requirements of GDUFA that are applicable to ETON.

 

		b.	LMW Representations and Warranties. LMW represents, warrants and covenants: (i) that it has the full power, right and authority
to execute and deliver this Agreement and that it shall use commercially reasonable best efforts to perform its obligations hereunder;
(ii) that it will assign to its performance of this Agreement professional personnel, qualified to perform the process procedures
consistent with the technical requirements of this Agreement; (iii) that none of the LMW personnel to be assigned to this Agreement
have or shall have been subject to debarment under the United States Generic Drug Enforcement Act or any other penalty or sanction
by FDA or under any U.S. Federal or State healthcare program; (iv) that it will manufacture and supply the Product in conformity
with, and otherwise perform its obligations hereunder in accordance with, and it will cause the CMO to perform in accordance with,
all Applicable Laws (including but not limited to cGMP and all applicable FDA regulatory requirements), the Quality Agreement,
this Agreement and generally accepted professional standards; (v) that all rights granted to ETON under this Agreement will not
conflict with those granted to any third-parties; (vi) that all data, information, results of experimentation and testing incorporated
by LMW into an NDA or ANDA prepared in accordance with this Agreement are accurate and complete in all respects; and (vii) that
LMW will comply (and will cause CMO, and any agents, subcontractors or other third parties conducting business relating to the
ANDA on LMW’s behalf to comply) with the requirements of GDUFA that are applicable to LMW, including, without limitation,
all provisions relating to self-identification. LMW will ensure the payment of all applicable GDUFA facility and DMF fees, whether
payable by LMW or CMO, its agent(s) or suppliers.

 

		c.	Product Warranties. LMW represents, warrants and covenants: (i) that the Product shall be free from defect in workmanship
and materials; (ii) that the Product shall meet its Specifications; (iii) that, upon delivery of a Product and during such time
as such Product was under LMW’s control, the Product will be in conformity with Applicable Law and the Quality Agreement,
and shall not be adulterated, misbranded, misused, contaminated, tampered with or otherwise altered, mishandled, or subjected to
negligence; and (iv) that title to all Products delivered hereunder shall pass to ETON concurrently with risk of loss, free and
clear of all liens, encumbrances and other adverse claims. LMW additionally warrants that the Product supplied hereunder shall
only be built using Components purchased from vendors approved by FDA pursuant to the ANDA.

 

    	 	 	 

    	 	 

    

 

		13.	Further development of the product;

 

Both parties may agree to further develop the product
for new indications/usage and in such case, both parties will agree on further licensing agreement.

 

		14.	Term and Termination.

 

		a.	Term. This Agreement shall commence on the Effective Date and shall continue for a period of ten (10) years from the
first commercial sale of the Product in the Territory. Agreement shall auto-renew for two years’ terms unless either party
provides written notification of termination at least 12 months prior to expiration of the then current term.

 

		b.	Termination.

 

Material Breach. In the event of a material
breach of this Agreement by either Party, the non- breaching Party may provide written notice of such breach to the breaching Party,
including a description of the breach, and indicating the non-breaching Party’s intent to terminate this Agreement. The breaching
Party will have sixty (60) days from its receipt of such notice to cure the breach, provided the breach is capable of being cured
within the sixty (60) day period. If the breaching Party fails to cure the breach within such period, then unless otherwise agreed
by the non-breaching Party, this Agreement will terminate on the date that is sixty (60) days following the breaching Party’s
receipt of the notice of breach from the non- breaching Party. If the breach is not capable of being remedied within sixty (60)
days, the Agreement terminates upon the written notice.

 

Bankruptcy or Insolvency. If either party shall
(a) become bankrupt or insolvent, (b) file for a petition thereof, (c) make an assignment for the benefit of creditors, or (d)
have a receiver appointed for its assets, which appointment shall not be vacated within sixty (60) days after the filing, then
the other party shall be entitled to terminate this Agreement forthwith by written notice to such party.

 

Applicable Law. If the manufacture, distribution
or sale of the Product in the Territory would materially contravene any existing or new applicable law which cannot be brought
into compliance with such law within a reasonable period of time following a notice of non-compliance or violation. Or a violation
by any party of a trade control law and/or anti-corruption law.

 

    	 	 	 

    	 	 

    

 

Product Deficiencies. If there is a negative
outcome of a facilities cGMP audit where the Product is manufactured for which deficiencies are not cured within three (3) months.

 

Eton’s Option. ETON may, in its sole
and absolute discretion, terminate this Agreement at any time for regulatory or commercial reasons.

 

		c.	Effect of Termination. Termination of this Agreement shall not affect a Party’s entitlement to profit sharing
or milestone payments that accrue prior to the date of termination or that accrue after termination with respect to Product supplied
hereunder prior to the date of termination, provided that the uncured breach, status or actions of the Party causing such termination
do not impair its entitlement to such profit sharing or milestone payments. Upon termination of this agreement for any reason,
ETON shall retain sole and exclusive ownership of the NDA/ANDA filing.

 

		15.	General Terms.

 

		a.	Relationship of Parties. The relationship between LMW, LM and ETON, with respect to this Agreement, is only that of
independent contractors notwithstanding any activities set forth in this Agreement. Neither Party is the agent or legal representative
of the other Party, and neither Party has the right or authority to bind the other Party in any way. This Agreement creates no
relationship as partners or a joint venture, and creates no pooling arrangement.

 

		b.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
U.S.A., without reference to its conflict of laws principles.

 

		c.	Resolution of Disputes. Any and all disputes or claims arising or out of this Agreement shall be litigated exclusively
before a court of the State of New York, U.S.A. or, if subject matter jurisdiction exists, the United States District Court for
the District of New York. Each party hereto hereby irrevocably and unconditionally consents to the exclusive personal jurisdiction
and service of, and venue of, any such court, and further irrevocably and unconditionally waives and agrees not to plead or claim
that any action, lawsuit or proceeding brought in any such court has been brought in an inconvenient forum. Any judgment issued
by such a court may be enforced in any court having jurisdiction.

 

		d.	Assignment. Neither party shall assign its rights or obligations under this Agreement without the prior written consent
of the other party, which shall not be unreasonably withheld or delayed; provided, however, that a party may, without such consent,
assign this Agreement and its rights and obligations hereunder (a) to any Affiliate, or (b) in connection with the transfer or
sale of all or substantially all of its business to which this Agreement relates, or in the event of its merger, consolidation,
change in control or similar transaction. Any permitted assignee shall assume all obligations of its assignor under this Agreement.

 

    	 	 	 

    	 	 

    

 

		e.	Counterparts. This Agreement may be executed in several counterparts that together shall be originals and constitute
one and the same instrument.

 

		f.	Waiver. The failure of any Party to enforce any of its rights hereunder or at law shall not be deemed a waiver of any
of its rights or remedies against another Party, unless such waiver is in writing and signed by the Party to be charged. No such
waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature or any other breach or default
by such other Party.

 

		g.	Severability. If any provision of this Agreement, or part thereof, is declared by a court of competent jurisdiction
to be invalid, void or unenforceable, each and every other provision, or part thereof, shall nevertheless continue in full force
and effect.

 

		h.	Notices. All notices or communications given pursuant to this Agreement shall be in writing, if to ETON, addressed to
the attention of CEO, Eton Pharmaceuticals, Inc., 21925 Field Parkway, Suite 235, Deer Park, IL 60010, and if to LMW to the attention
of Mohammed Arsalaan Khan, Liqmeds Worldwide, Ltd., 65 Delamere Road, Hayes, Middlesex, United Kingdom, UB4 0NN, and shall be:
(a) hand delivered, (b) sent by prepaid express courier service, or (c) sent by electronic mail (e-mail) or facsimile transmission.
A Party may change its address for the receipt of notices and communications hereunder by providing the other Party with written
notice thereof given in accordance with this section. All notices and other communications shall be deemed given when received.

 

		i.	Further Assurances. The Parties agree to execute such additional documents and perform such acts as are reasonably necessary
to effectuate the intent of this Agreement.

 

		j.	Compliance With Laws. Each Party agrees to comply with all Applicable Laws, including, without limitation, GDUFA or
PDUFA, cGMPs and state licensing laws, in its performance under this Agreement.

 

		k.	Entire Agreement. This Agreement, including all exhibits and attachments, constitutes the entire agreement between the
Parties regarding the subject matter hereof, and supersedes all prior or contemporaneous understandings or agreements regarding
the subject matter hereof, whether oral or written. This Agreement shall be modified or amended only by a writing signed by both
ETON and LMW.

 

		l.	Authority. The parties executing this Agreement on behalf of ETON and LMW represent and warrant that they have the authority
from their respective governing bodies to enter into this Agreement and to bind their respective companies to all the terms and
conditions of this Agreement.

 

    	 	 	 

    	 	 

    

 

		m.	Force Majeure. Neither Party shall be liable for delays in its performance caused by events beyond its control, such
as fires, floods, labor shortages, strikes, epidemics, computer virus, earthquakes, riots, acts of terror, acts of God, storms,
acts of civil or military authority or similar occurrences, provided the affected Party gives the other Party written notice of
such event within three (3) business days of its occurrence. Such notice shall state the estimated duration of such event and the
cause thereof and the affected Party shall use commercially reasonable efforts to work around such event beyond its control.

 

		n.	Headings and Construction. No rule of construction will be applied to the disadvantage of a party because that party
was responsible for the preparation of this Agreement or any part of this Agreement. The Article and Section headings in this Agreement
are for convenient reference only, and will be given no substantive or interpretive effect. With respect to all terms used in this
Agreement, words used in the singular include the plural and words used in the plural include the singular. The word ‘including’
means including without limitation, and the words ‘herein’, ‘hereby’, ‘hereto’ and ‘hereunder’
refer to this Agreement as a whole. Unless the context otherwise requires, references found in this Agreement: (i) to Articles
and Sections mean the Articles and Sections of this Agreement, as amended, supplemented and modified from time to time; (ii) to
an agreement, instrument or other document means such agreement; (iii) to an agreement, instrument or other document means such
agreement, instrument or other document as amended, supplemented and modified from time to time, to the extent provided by the
provisions thereof and by this Agreement; and (iv) to a statute or a regulation mean such statute or regulation as amended from
time to time.

 

		o.	Drug Supply Chain Security Act. The Parties agree to strictly comply with the Drug Supply Chain Security Act, and all other
laws related to the subject matter of this Agreement.

 

    	 	 	 

    	 	 

    

 

IN WITNESS WHEREOF, the Parties have hereunto
set forth their hands and seals as of the Effective Date above.

 

	On behalf of:	 	On behalf of:
	ETON PHARMACEUTICALS, INC.	 	LIQMEDS WORLDWIDE LTD.
	 	 	 
	/s/ Sean Brynjelsen	 	/s/ Mohammed Arsalaan Khan
	By:	Sean Brynjelsen	 	By:	Mohammed Arsalaan Khan
	Its:	President	 	Its:	Director
	 	 	 
	 	 	On behalf of:
	 	 	LM MANUFACTURING, LTD.
	 	 	 
	 	 	/s/ Mohammed Arsalaan Khan
	 	 	By:	Mohammed Arsalaan Khan
	 	 	Its:	Director

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