Document:

Exhibit
10.2

 

Certain
information identified by bracketed asterisks ([* * *]) has been omitted from this exhibit because it is both not material and
would be competitively harmful if publicly disclosed.

 

EXCLUSIVE
LICENSE AND SUPPLY AGREEMENT

 

THIS
EXCLUSIVE LICENSE AND SUPPLY AGREEMENT (this “Agreement”) is entered into as of February
8, 2019 (the “Effective Date”) by and between ETON PHARMACEUTICALS, INC., a Delaware corporation
with offices at 21925 W. Field Pkwy, Suite 235, Deer Park, Illinois, USA (“ETON”), and SINTETICA
SA, a company number CHE-105.272.121 with offices at Penate 5, CH-6850 Mendrisio, Switzerland (“Sintetica”).

 

RECITALS

 

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

 

WHEREAS,
Sintetica is engaged in the business of developing and manufacturing pharmaceutical drug products, including the Products (later
defined);

 

WHEREAS,
Sintetica desires to manufacture and supply the Products exclusively to ETON for Marketing (later defined) in the Territory (later
defined), and ETON is willing to purchase exclusively from Sintetica the Products under the terms and conditions set forth herein;

 

WHEREAS,
ETON desires to obtain an exclusive license to the Products, the MAs (later defined), and Sintetica Background Intellectual Property
(later defined) for Marketing the Products in the Territory, and Sintetica is willing to grant such an exclusive license to ETON
under the terms and conditions set forth herein; and

 

WHEREAS,
ETON and Sintetica will share in the Net Profits (later defined) obtained by the sale of Products in the Territory under the terms
and conditions set forth herein;

 

NOW,
THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ETON and Sintetica,
intending to be legally bound, hereby agree as follows:

 

1.
DEFINITIONS.

 

For
the purposes of this Agreement, the following terms whether used in singular or plural form shall have the meanings as defined
below:

 

1.1
“Accepted” shall have the meaning ascribed to the term in Section 4.8 of this Agreement.

 

1.2
“Affiliates” means, with respect to a Party or any Third Party, any corporation, firm, partnership or
other entity that controls, is controlled by or is under common control with such entity. For the purposes of this definition,
“control” means the ownership of at least 50% of the voting share capital of an entity or any other comparable equity
or ownership interest.

 

    	 	 	 

    	 	 	 

    

 

1.3
“Applicable Law” means the applicable laws, rules, regulations, guidelines and requirements of any Governmental
Entity related to the development, registration, manufacture, importation, commercialization of the Products in the Territory,
the manufacture in and export from the Territory of Manufacture, or any obligation under, or related to, this Agreement, including
those obligations applicable to the MAs.

 

1.4
“Breaching Party” shall have the meaning ascribed to the term in Section 11.2 of this Agreement.

 

1.5
“Business Day” means any day, other than Saturday, Sunday or other day on which commercial banks are
authorized or required to close in New York, New York or Rome, Italy.

 

1.6
“Calendar Quarter” means a three (3) consecutive month period ending on March 31, June 30, September
30 or December 31.

 

1.7
“Claim” includes a claim, notice, demand, action, proceeding, litigation, prosecution, arbitration,
investigation, judgment, award, damage, loss, cost, expense or liability however arising, whether present, unascertained, immediate,
future or contingent, whether based in contract, tort or statute and whether involving a Third Party or a Party or otherwise.

 

1.8
“COGS” means for each applicable Product the total of all actual, direct manufacturing costs (including
cost of raw materials and packaging materials) directly incurred by Sintetica and directly allocable to the manufacture and supply
of the applicable Product as of the Effective Date or as adjusted pursuant to Section 6.2.1 of this Agreement. For clarity, such
costs shall not include (a) any allocation or absorption of unused, excess or idle capacity, (b) any costs attributable to shipment
of the Product to the relevant facility, (c) any Taxes or Transfer Taxes, or (d) any depreciation expense (including but not limited
to any depreciation of any machinery or equipment).

 

1.9
“Confidential Information” shall have the meaning ascribed to the term in Section 10.2 of this Agreement.

 

1.10
“Confirmed Purchase Order” shall have the meaning ascribed to the term in Section 5.5.1 of this Agreement.

 

1.11
“Customer Penalties” shall have the meaning ascribed to the term in Section 4.11.3 of this Agreement.

 

1.12
“Deducted Customer Penalties” shall have the meaning ascribed to the term in Section 5.11.4 of this
Agreement.

 

1.13
“Delivery Date” shall have the meaning ascribed to the term in Section 4.5.1 of this Agreement.

 

    	 	2	 

    	 	 	 

    

 

1.14
“ETON Indemnified Parties” shall have the meaning ascribed to the term in Section 14.1 of this Agreement.

 

1.15
“Excessive Amount” shall have the meaning ascribed to the term in Section 4.5.2 of this Agreement.

 

1.16
“FDA” means the United States Food and Drug Administration and all divisions under its direct control
or any successor organizations.

 

1.17
“Firm Period” shall have the meaning ascribed to such term in Section 4.4 of this Agreement.

 

1.18
“Force Majeure Events” shall have the meaning ascribed to such term in Section 16.2 of this Agreement.

 

1.19
“GMP” means current good manufacturing practices as defined by the FDA.

 

1.20
“Governmental Entity” means any arbitrator, court, judicial, legislative, administrative, or regulatory
agency, commission, department, board, or bureau or body or other government authority or instrumentality or any Person or entity
exercising executive, legislative, judicial, regulatory, or administrative functions of or pertaining to government, whether foreign
or domestic, whether federal, state, provincial, municipal, or other.

 

1.21
“Gross Sales” shall have the meaning ascribed to the term in Section 1.36.

 

1.22
“Indemnitee” shall have the meaning ascribed to the term in Section 13.3.1 of this Agreement.

 

1.23
“Indemnitor” shall have the meaning ascribed to the term in Section 13.3.1 of this Agreement.

 

1.24
“Infringement Notification Date” shall have the meaning ascribed to the term in Section 7.4 of this
Agreement.

 

1.25
“Intellectual Rights Legal Expenses” shall have the meaning ascribed to the term in Section 7.6.1 of
this Agreement.

 

1.26
“Intellectual Rights Suit” shall have the meaning ascribed to the term in Section 7.4 of this Agreement.

 

1.27
“Latent Defect” shall have the meaning ascribed to the term in Section 4.10 of this Agreement.

 

1.28
“Losses” means all losses, costs, damages, judgments, settlements, interest, fees or expenses including,
without limitation, all reasonable attorneys’ fees, experts’ or consultants’ fees, expenses and costs.

 

    	 	3	 

    	 	 	 

    

 

1.29
“MAs” means the New Drug Applications pursuant to 21 U.S.C. §355(b)(1)-(2), and all amendments
and supplements thereof, for the Products as set forth in Exhibit A.

 

1.30
“Market” or “Marketing” shall have the meaning ascribed to the term in Section
2.1 of this Agreement.

 

1.31
“Material Delivery Delay” shall have the meaning ascribed to the term in Section 4.11.3 of this Agreement.

 

1.32
“MAQ” shall have the meaning ascribed to the term in Section 4.5.5 of this Agreement.

 

1.33
“MOQ” shall have the meaning ascribed to the term in Section 4.5.4 of this Agreement.

 

1.34
“NDC” means a national drug code as issued by the FDA.

 

1.35
“Net Profits” means with respect to a given Product sold by ETON in the Territory, (a) the Net Sales
of the Product less (b) the sum of (i) the Transfer Price or transfer price paid by ETON if manufactured by a Third Party, if
applicable, (ii) Sintetica’s share of the Regulatory Fees, (iii) the SG&A Fee.

 

1.36
“Net Sales” means, with respect to each Product sold in the Territory, the aggregate gross sales amount
invoiced by wholesalers, distributors or ETON on an arms-length basis to Third Parties in the Territory (“Gross Sales”),
less the following deductions per NDC number: (a) all trade discounts including a percentage off Gross Sales to cover cash discounts
given by ETON; (b) ETON’s adjustments on account of price adjustments, billing adjustments, bid defaults, shelf stock adjustments,
promotional payments or similar allowances; (c) ETON’s chargebacks, rebates, administrative fee arrangements, reimbursements,
and similar payments to wholesalers and other distributors, buying groups, health insurance carriers, managed care groups, pharmacy
benefit management companies, health maintenance organizations, other institutions or health care organizations or customers;
(d) ETON’s amounts due to third parties on account of rebate payments, including Medicaid rebates, or other price reductions
provided, based on sales by ETON to any Governmental Entity or regulatory authority in respect of state or federal Medicare, Medicaid,
government pricing or similar programs;; (f) any government-mandated manufacturing Tax including without limitation the brand
manufacturer’s Tax imposed pursuant to the Patient Protection and Affordable Care Act (Pub. L. No. 111-148) as amended or
replaced; (g) any costs incurred in connection with or arising out of compliance with any Risk Evaluation and Mitigation Strategies,
the Prescription Drug User Fee Act and (h) other specifically identifiable amounts that have been credited against or deducted
from ETON’s Gross Sales and are substantially similar to those credits and deductions listed above.

 

1.37
“Operating Expenses” shall mean with respect to a given Product in the Territory, the shipping, handling,
freight, import Tax, insurance cost for transportation of the Products (or any Third Party logistics’ warehouses) incurred
by ETON.

 

1.38
“Party” or “Parties” means ETON or Sintetica, as applicable.

 

    	 	4	 

    	 	 	 

    

 

1.39
“Payment Period” shall have the meaning ascribed to the term in Section 6.3.3 of this Agreement.

 

1.40
“Person” means any individual, partnership (general or limited), association, corporation, limited liability
company, joint venture, trust, estate, limited liability partnership, unincorporated organization, government (or any agency or
political subdivision thereof) or other legal person or organization.

 

1.41
“Pharmacovigilance Agreement” shall have the meaning ascribed to the term in Section 4.4 of this Agreement.

 

1.42
“Product” or “Products” means a product or products set forth in Exhibit A
for Marketing by or for ETON in the Territory (and covered or intended to be covered by an MA) and manufactured and supplied by
Sintetica (or a Third Party as permitted by this Agreement) to ETON in fully packaged and labeled form and ready for commercialization
by ETON.

 

1.43
“Product Labelling and Packaging” shall have the meaning ascribed to the term in Section 5.1.1 of this
Agreement.

 

1.44
“Quality Agreement” shall have the meaning ascribed to that term in Section 4.2.10 of this Agreement.

 

1.45
“Quality Assurance Liaison” shall have the meaning ascribed to that term in Section 5.3.4 of this Agreement.

 

1.46
“Recall Event” shall have the meaning ascribed to that term in Section 3.4 of this Agreement.

 

1.47
“Recovery Plan” shall have the meaning ascribed to that term in Section 4.11.3 of this Agreement.

 

1.48
“Regulatory Fees” shall have the meaning ascribed to that term in Section 3.2 of this Agreement.

 

1.49
“Rolling Forecast” shall have the meaning ascribed to that term in Section 4.4 of this Agreement.

 

1.50
“Selling, General, and Administrative Fee” or “SG&A Fee” shall have the
meaning ascribed to that term in Section 6.3.2 of this Agreement.

 

1.51
“Sintectica Background Intellectual Property” means any and all patents and trademarks, patent and trademark
applications or other patent and trademark rights, copyrights, inventions, know-how, trade secrets, proprietary knowledge, data,
and other information owned, licensed to or controlled by Sinetica relating to the Products, including but not limited to use,
manufacture, and packaging thereof.

 

1.52
“Sintetica Indemnified Parties” shall have the meaning ascribed to the term in Section 13.2 of this
Agreement.

 

    	 	5	 

    	 	 	 

    

 

1.53
“Sintetica Net Profit Share” shall have the meaning ascribed to the term in Section 6.3.1 of this Agreement.

 

1.54
“Specification” shall mean, for a particular Product, the specifications, methods and processes of the
product, as set forth in the applicable MAs for that Product.

 

1.55
“Supply Failure” has the meaning ascribed to that term in Section 4.11.2 of this Agreement.

 

1.56
“Supply Term” shall mean, on a Product by Product basis, an initial period of ten (10) years from the
date of first commercial sale of the applicable Product by ETON in the Territory, and any renewals or extensions thereof.

 

1.57
“Taxes” means taxes, duties, fees, premiums, assessments, imposts, levies and other charges of any kind
whatsoever imposed by any Governmental Entity, including all interest, penalties, fines, additions to tax or other additional
amounts imposed by any Governmental Entity in respect thereof, and including those levied on, or measured by, or referred to as,
income, gross receipts, profits, capital, transfer, land transfer, sales, goods and services, harmonized sales, use, value-added,
excise, stamp, withholding, business, franchising, property, development, occupancy, employer health, payroll, employment, health,
social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, countervail
and anti-dumping, all license, franchise and registration fees and all employment insurance, health insurance and government pension
plan premiums or contributions.

 

1.58
“Term” shall have the meaning ascribed to this term in Section 11.1 of this Agreement.

 

1.59
“Territory” shall mean the fifty states of the United States of America, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands and all territories and possessions of the United States
of America and United States military bases.

 

1.60
“Territory of Manufacture” means the country of Switzerland.

 

1.61
“Third Party” means any Person other than ETON, Sintetica or their respective Affiliates.

 

1.62
“Transfer Price” has the meaning ascribed to that term in Section 6.2.1 of this Agreement.

 

1.63
“Transfer Taxes” shall have the meaning ascribed to this term in Section 10 of this Agreement.

 

2.
GRANT OF RIGHTS

 

2.1
Sintetica, for itself and its Affiliates, hereby grants to ETON in accordance with the terms and conditions of this Agreement,
an exclusive (even as to and against Sintetica) right and license, including the right to sublicense, to the Products, MAs, and
all current and future Sinetica Background Intellectual Property that are owned or controlled by Sintetica or its Affiliates for
ETON to develop, manufacture, import, use, promote, distribute, market, advertise, offer for sale or sell (collectively, “Market”)
the Products in the Territory. For avoidance of doubt, Sinetica and its Affiliates shall remain the owner of the Product dossiers
and Sinetica Background Intellectual Property.

 

    	 	6	 

    	 	 	 

    

 

2.2
ETON, for itself and its Affiliates, hereby grants to Sintetica in accordance with the terms and conditions of this Agreement,
a right and license, to its trademark, including to its name and logo, that is owned or controlled by ETON or its Affiliates for
Sintetica to make the packs, labels, and leaflets for the Products for sale in the Territory. For avoidance of doubt, ETON and
its Affiliates shall remain the owner of its trademarks.

 

2.3
Except as otherwise expressly provided in this Agreement, Sintetica and its Affiliates, during the Term, shall manufacture and
supply exclusively to ETON and its Affiliates all of their requirements for the Products for Marketing in the Territory. For avoidance
of doubt, Sintetica and its Affiliates shall not manufacture and supply, during the Term, the Products or any pharmaceutically
equivalent products for themselves or any Third Party (not consented by ETON) for Marketing in and for the Territory.

 

2.4
Except as otherwise expressly provided in this Agreement, ETON and its Affiliates shall exclusively purchase all of their requirements
for the Products from Sintetica for Marketing in the Territory.

 

3.
PRODUCT DEVELOPMENT AND REGISTRATION

 

3.1
Development and Registration Responsibilities.

 

3.1.1
At its sole cost and expense, Sinetica shall be responsible and liable for developing the Products and filing and obtaining approval
of the MAs with the FDA. Within seven (7) days after receiving notice of approval of the MA(s) for the Product(s), Sintetica shall
file the necessary documentation to transfer the approved MA(s) to ETON’s name.

 

3.1.2
If ETON’s customer research shows demand that there is commercial demand for the Product in a container system that Sintetica
is unable to produce, then ETON shall have the right to secure additional suppliers to develop, file for registration, and obtain
approval with the FDA for the Product in that container system, and Sinetica shall grant ETON all the rights and licenses necessary
to develop, register, obtain approval, and Market the Product with that container system in the Territory. Any additional Products
would be subject to this agreement

 

3.2
Registration Maintenance and Regulatory Responsibilities. After the approved MAs are transferred to ETON’s name,
ETON shall be responsible for the maintenance of the approved MAs. In such an event, ETON will take all actions with the FDA,
including paying all fees accrued after time of transfer and conducting all communications with FDA or other Governmental Entities
as required by Applicable Law in respect of the MAs, including without limitation initial payment of fees owed under the Prescription
Drug User Fee Act, Annual Branded Prescription Drug Fees assessed under Section 9008 of the Patient Protection and Affordable
Care Act (ACA), Public Law 111-148 (124 Stat. 119 (2010)), as amended by section 1404 of the Health Care and Education Reconciliation
Act of 2010 (HCERA), Public Law 111-152 (124 Stat. 1029 (2010)), or any successor laws, and preparing and filing all required
reports (including adverse drug experience reports) with the appropriate Governmental Entity. The Parties shall share equally
in all maintenance and regulatory fees under this Section 4.2 (“Regulatory Fees”). Sintetica shall use
its best efforts to provide support, including providing any required information and documents, to ETON in the maintenance of
the approved MAs. Sintetica’s share of Regulatory Fees shall be deducted prior to Sintetica receiving its profit share.

 

    	 	7	 

    	 	 	 

    

 

3.3
ETON’s NDC Numbers. Sintetica and its Affiliates shall not sell any products under ETON’s or its Affiliates’
names or NDC numbers.

 

3.4
Medical Inquires, Product Complaints and Recalls. After the approved MAs are transferred to ETON’s name, ETON shall
assume all responsibility for responding to any medical inquiries or complaints about any Products as set forth in the Pharmacovigilance
Agreement attached hereto as Exhibit C (the “Pharmacovigilance Agreement”) and to be entered into by
the Parties as soon as practicable. Sintetica will notify ETON immediately of any circumstances that may result in a potential
recall, market withdrawal, inventory retrieval, or similar action (“Recall Event”) that may affect the
products or services under this proposal. ETON will administer the Recall Event, but Sintetica shall reimburse ETON for any costs
associated with the Recall Event, including but not limited to shipping charges, legal fees, and any action necessary to effectuate
a recall, to the extent the Recall Event is attributable to Sintetica’s performance of its obligations under this Agreement,
including but not limited to sanitation of Sintetica’s equipment, negligence in manufacturing, or poor quality standards.
If the Recall Event is related to ETON’s commercialization activities, then ETON will administer the Recall Event and be
solely responsible for costs and expenses associated with that Recall Event.

 

3.5
Competitive Products. During the Term of this Agreement, and for a period of five (5) years thereafter, Sintetica nor ETON
shall not research, develop, manufacture, file, sell, market, or distribute any competitive product, including a product containing
[* * *] as as the sole active ingredient that is marketed and sold in the Territory
in the injectable route of administration; nor will Sintetica nor ETON directly or indirectly assist any other Person or entity
in carrying or any such activities for eventual marketing or sale in the Territory.

 

4.
MANUFACTURE AND SUPPLY

 

4.1
Product Labeling and Packaging.

 

4.1.1
The packaging artworks will be prepared by Sintetica, at its sole cost and expense, with the proprietary trademark and design
artwork. Sintetica shall design the packaging, the containers, the labels, the user instructions, warning notices, master shipper,
pattlet layout, including the artwork necessary or beneficial for the distribution in the Territory (“Product Labelling
and Packaging”). Sintetica shall also be solely responsible for, at its cost and expense, the requirements to serialize
the Products under Applicable Law. Prior to commencing into production, Sintetica shall submit the Product Labelling and Packaging
to ETON for its review for accuracy. Only upon ETON’s approval shall Sintetica proceed to print the Product Labelling and
Packaging. Sintetica shall be responsible and liable for the final content of the Product Labelling and Packaging and their compliance
with Applicable Law in the Territory and Territory of Manufacture.

 

    	 	8	 

    	 	 	 

    

 

4.1.2
After ETON approves the Product Labelling and Packaging in Section 5.1.1, Sintetica shall supply ETON the Products in finished
dosage form and fully packaged and ready for Marketing by ETON in the Territory.

 

4.1.3
ETON shall distribute the Products exclusively with the Product Labelling and Packaging in which they are supplied to it by Sintetica.
For avoidance of doubt, ETON shall not modify the Product Labelling and Packaging in any way when distributing the Products in
the Territory.

 

4.1.4
Any modification of the Product Labelling and Packaging shall require prior written approval by both Parties and must comply with
all Applicable Laws in the Territory.

 

4.2
Manufacture and Supply of Products.

 

4.2.1
Sintetica shall exclusively manufacture and supply the Products to ETON, and ETON shall exclusively purchase from Sintetica the
Products and Market the Products in the Territory, except as otherwise expressly provided in this Agreement.

 

4.2.2
Sintetica shall use commercially reasonable efforts to supply on a timely basis one hundred percent (100%) of ETON’s requirement
for each Product for commercialization in the Territory.

 

4.2.3
Sintetica shall use commercially reasonable efforts to provide ETON with Product with expiration date that is at least seventy
five percent (75%) of the shelf-life for the applicable Product, but in no event less than eighteen (18) months from the date
such Product is delivered to ETON.

 

4.2.4
Sintetica shall ensure that it has an adequate supply of active and other ingredients required to manufacture the Products in
order to meet at least one hundred twenty-five percent (125%) of ETON’s forecasted requirements for the Products in the
Territory. In the event that for any reason Sintetica may have insufficient supply of active or other ingredients required to
meet its obligations under this Section 4.2.2, Sintetica, upon ETON’s approval, shall obtain a Third-Party source for such
active and other ingredients agreed to by ETON.

 

4.2.5
Sintetica shall manufacture each Product at its own manufacturing site. In the event Sintetica desires to transfer the manufacture
of any Product to another site other than those designated in the relevant MA, Sintetica shall require ETON’s written approval.

 

4.2.6
Sintetica shall, during the Term, maintain its relevant manufacturing site, all property, equipment, machinery and systems therein
in the ordinary course of business and in compliance with GMP and Applicable Law (including Drug Security and Supply Chain Act)
and free of material defects except for those attributable to wear and tear consistent with age and usage of such assets and except
for such defects as do not and will not in the aggregate impair the ability to use such assets in connection with this Agreement.

 

    	 	9	 

    	 	 	 

    

 

4.2.7
Sintetica will properly maintain a sample from each batch of Product as required by applicable regulatory standards in the Territory,
Territory of Manufacture, Applicable Law or as otherwise agreed in writing by the Parties.

 

4.2.8
Sintetica will validate all processes, methods, equipment, facilities and utilities used in the manufacture, storage, testing
and release of each Product in conformity with all Applicable Laws. ETON shall have the right to review the validation reports
upon written request.

 

4.2.9
Sintetica shall provide ETON with timely notification of all deviations that could materially impact the quality of any Product
as well as all reports or audits of any applicable regulatory authority or other applicable governmental agency regarding testing,
manufacture, storage, labeling, handling or packaging of any Product.

 

4.2.10
Notwithstanding anything to the contrary in this Agreement, all Product manufactured by Sintetica and sold to ETON under this
Agreement, when delivered by Sintetica to ETON, shall meet the specifications and the requirements as set forth in a Quality Agreement,
attached hereto as Exhibit B, to be entered into by the Parties as soon as practicable (the “Quality Agreement”).

 

4.3
Manufacturing and Quality Records and Audits.

 

4.3.1
Sintetica shall supply the Products to ETON in accordance with the terms and conditions of this Agreement, the Quality Agreement,
the relevant MAs and Applicable Law. Sintetica shall deliver to ETON, together with each delivery of each batch of Product, the
corresponding certificate of analysis relating to such batch and certification that all Product in such batch were manufactured
in accordance with GMP, the Quality Agreement and any Applicable Law. The certificate of analysis shall include the actual result
of the testing performed by Sintetica on such batch. Sintetica agrees that it shall not make any changes in the formulation, manufacture,
production, packaging, labeling or storage of any Product or any component thereof without consent of ETON unless Sintetica is
expressly required to do so by Applicable Law or a relevant regulatory authority, in which case Sintetica shall notify ETON in
writing promptly of such change and the reason therefor.

 

4.3.2
Sintetica shall prepare and maintain complete and accurate records relating to each Product and the manufacture, quality operation,
packaging, labeling, storage, handling and testing of each batch therefor as required by Applicable Law and GMP and Sintetica
shall make copies thereof available for review by ETON upon request. These records shall be subject to audit and inspection under
this Agreement. Records that include information relating to the manufacturing, finished product packaging, and quality operation
for each batch of each Product will be prepared by Sintetica at the time such operations occur. Sintetica will prepare such records
in accordance with GMP, this Agreement, the Specifications and Applicable Law.

 

4.3.3
On an annual basis, upon ETON’s prior written notice of at least thirty (30) days and at its expense, Sintetica shall permit
representatives of or selected on behalf of ETON to inspect Sintetica’s facilities relevant to the manufacture, testing,
packaging, labeling, quality control, storage and transport of any Product. Notwithstanding the foregoing, ETON may inspect at
any time without cost to ETON if the inspection is for cause, provided that the scope of such inspection is limited to the cause
for such inspection.

 

    	 	10	 

    	 	 	 

    

 

4.3.4
ETON and Sintetica shall each designate one (1) individual to whom all of the other Party’s communications may be addressed
with respect to the manufacturing of Product (the “Quality Assurance Liaison”). Each Party shall give
prompt notice to the other Party of any material adverse change or event that relates to a quality issue or related matter with
respect to the manufacturing site for a Product or the Product itself.

 

4.4
Forecasts. No later than sixty (60) days prior to ETON’s projected desired initial delivery of commercial batches
of each Product, ETON shall provide to Sintetica a forecast which shall indicate ETON’s reasonable estimate of its expected
requirements for each Product from Sintetica for the twelve (12) month period commencing on the desired initial Delivery Date
for such Product. Commencing on the fifth (5th) Business Day after the initial Delivery Date for a given Product and not later
than the third (3rd) Business Day of each third (3rd) calendar month thereafter, ETON shall submit a forecast of its requirements
from Sintetica for each Product which shall indicate ETON’s reasonable estimate of its expected requirements of Product
from Sintetica for the twelve (12) month period commencing on the first (1st) day of the fourth (4th) full calendar month after
the date of each such update (each a “Rolling Forecast”). The first three (3) calendar months of each
Rolling Forecast shall be considered binding forecasts for Product (the “Firm Period”). Except as expressly
provided in the foregoing sentence, such Rolling Forecasts constitute non-binding, good-faith estimates provided solely to assist
Sintetica in production planning and subject to the terms and conditions hereof the Rolling Forecast for any period may be revised
by ETON by written notice to Sintetica.

 

4.5
Purchase Orders and Minimum Order Requirements.

 

4.5.1
The purchase of each Product under this Agreement shall be implemented by ETON’s issuance of individual purchase orders
to Sintetica for specific quantities of each Product which purchase orders shall reflect the Firm Period, if applicable, and shall
specify the delivery date for each Product (the “Delivery Date”). The first order shall be placed no
earlier than fifteen (15) days from ETON receiving written confirmation from Sintetica of the approval of the MA for the Product
by FDA in the Territory. Subsequent orders shall be placed one hundred twenty (120) days prior to ETON’s requested Delivery
Date. Within seven (7) Business Days of its receipt of a purchase order, Sintetica shall accept in writing such purchase order
submitted in accordance with this Section 4.5.1 by delivering a confirmation of the Delivery Date set forth in each purchase order
(a “Confirmed Purchase Order”).

 

4.5.2
If a purchase order requests quantities of such Product in excess of one hundred twenty five percent (125%) of ETON’s most
recent forecast for such month, then Sintetica shall within seven (7) Business Days of its receipt of such a purchase order, notify
ETON whether and to what amount Sintetica can supply such excess. No purchase order shall be rejected provided that the purchase
order complies with the terms of this Agreement. For any given calendar month, Sintetica may be required to accept purchase orders
for quantities of Product up to one hundred twenty-five percent (125%) of ETON’s most recent forecast for such month and
shall use commercially reasonable efforts to supply quantities of Product in excess of one hundred twenty-five percent (125%)
of the forecasted amounts (the “Excessive Amount”). In the event Sintetica cannot supply the Excessive
Amount, then ETON shall be free to source and procure such Excessive Amount from a Third-Party alternative source at its own cost.
In such an event, Sintetica shall not receive its profit share for the Excessive Amount.

 

    	 	11	 

    	 	 	 

    

 

4.5.3
ETON shall assign a purchase order number to each order placed with Sintetica and notify such order numbers to Sintetica. Each
Party shall use the relevant purchase order number in all subsequent correspondence relating to the order.

 

4.5.4
[* * *]

 

4.5.5
[* * *]

 

4.5.6
[* * *]

 

4.6
Delayed Delivery. In the event of any changes in the Territory that could adversely affect sales of a given Product, ETON
shall have the right to delay delivery of Product ordered by ETON from Sintetica pursuant to a purchase order for a period of
up to six (6) months after the Delivery Date of the applicable shipment of the applicable Product. In the event ETON wishes to
delay any such shipments it will notify Sintetica in writing at least sixty (60) days in advance of the applicable Delivery Date.
ETON shall also have the right to cancel any purchase order, however, in the event of such cancellation ETON shall pay for (a)
all such applicable Product already manufactured by Sintetica that cannot be sold to ETON hereunder in a future shipment of such
Product without violating the terms of this Agreement; (b) all of the materials and components ordered by Sintetica specifically
for the manufacture of the affected Product that cannot be otherwise used or returned to the applicable supplier; (c) any reasonable,
documented costs and expenses for work-in-progress of the affected Product completed under the purchase order prior to cancellation;
and (d) the cost of destruction of the applicable Product, if any.

 

4.7
Shipment.

 

4.7.1
Products shall be invoiced and delivered Ex-Works Sintetica, Mendrsio, CH, in Sintetica’s standard packaging and delivery
units applicable from time to time.

 

4.7.2
Sintetica will not ship any Product that it reasonably believes will not conform to the relevant Specifications, MAs, this Agreement
or with Applicable Law. If Sintetica reasonably believes any such Product would not conform as such, then Sintetica shall, at
no cost to ETON, manufacture and supply replacement Product to replace the non-conforming Product as promptly as possible. Sintetica
shall be responsible for all costs and expenses, including expedited shipping and Customer Penalties related to such replacement.

 

4.7.3
Risk of loss shall pass in accordance with the applicable Incoterms, and at such time Sintetica shall pass to ETON good and marketable
title to each Product, free and clear of all liens, claims, security interests, pledges, charges, mortgages, deeds of trusts,
options, or other encumbrances of any kind.

 

    	 	12	 

    	 	 	 

    

 

4.8
Acceptance. Within thirty (30) days of receipt of each shipment of Product by Sintetica at ETON or its designated facility,
ETON shall perform or cause to be performed any inspections ETON deems necessary for each shipment of the Product and notify Sintetica
in writing within such thirty (30) day period if ETON believes that the Product fails to conform to the Specifications, MAs, this
Agreement, or Applicable Law, or if any defect, shortage, or other nonconformance exists. If ETON does not provide such notice
within the thirty (30) day period, the shipment shall be deemed to be accepted (“Accepted”), except
as otherwise provided by Section 5.10.

 

4.9
Non-Conformity; Shortage; Defectiveness. If ETON believes that (a) any Product has not been manufactured in accordance
with the requirements of the Specifications, MAs, this Agreement or Applicable Law; (b) any defect exists in any Product delivered,
or (c) there is a shortage of Product delivered; then in each case ETON will, within thirty (30) days of the receipt of such Product
by ETON, notify Sintetica in writing setting forth in reasonable detail the alleged nonconformity, defect or shortage. Upon any
such notification, Sintetica shall have the right to inspect the applicable Product itself or appoint, at its expense, a mutually
acceptable Third Party to perform such inspection. Sintetica or such Third Party will have fourteen (14) days to inspect the affected
Product to make an assessment of the alleged nonconformity, defect or shortage. If the Parties agree there is a nonconformity,
defect or shortage or if Sintetica fails to inspect or have inspected the applicable shipment of Product within such fourteen
(14) day period, then Sintetica at its sole cost and expense shall promptly replace any nonconforming or defective Product or
make up the shortage, to be shipped at Sintetica’s cost. Nonconforming or defective Product will be returned to Sintetica
at Sintetica’s cost. Sintetica shall, during any such inspection periods outlined in this Section 5.9, continue to supply
Product to ETON pursuant to the terms and conditions of this Agreement. Any dispute between the Parties concerning rejection of
all or any part of a shipment of Product which the Parties are unable to resolve within thirty (30) days of the aforementioned
fourteen (14) day period will be submitted to an agreed-upon, qualified, independent laboratory for testing using the test methods
set forth in the applicable MA or other mutually agreed upon methods. Sintetica shall replace promptly any shipment or portion
of a shipment of Product under dispute until the dispute is resolved. Such replacement Product and the cost of the laboratory
will be at Sintetica’s expense if the laboratory finds that the lot in question is non-conforming or otherwise defective.
The costs of the laboratory shall be ETON’s expense if the lot in question is found to be conforming or otherwise non-defective.
The findings of the laboratory shall be final and binding upon the Parties and not subject to appeal or review by any Third Party.
In the event the laboratory finds that the lot in question is nonconforming, then Sintetica shall pay for the destruction of such
nonconforming lot.

 

4.10
Latent Defects. The Parties acknowledge it is possible for Product to have manufacturing defects that are not discoverable
upon reasonable physical inspection or testing (such a “Latent Defect or “Latent Defects”).
Latent Defects may include, by way of example and not definition or limitation, loss of stability, separation, discoloration,
defects not present in pre-shipment samples or other manufacturing defects. Sintetica is responsible for all Latent Defects that
are attributable to the manufacture, labeling, packaging, shipping, handling or storage of Product by Sintetica or failure of
such Product to otherwise comply with the provisions of this Agreement. As soon as ETON becomes aware of any Latent Defect, it
will immediately notify Sintetica of the lot(s) involved and Sintetica shall replace such Product in the manner described in Section
4.9.

 

    	 	13	 

    	 	 	 

    

 

4.11
Failure to Supply.

 

4.11.1
In the event that Sintetica is unable to supply any quantity of Product ordered through a Confirmed Purchase Order for any reason,
then Sintetica shall promptly notify ETON of such inability to supply and if possible, will notify ETON of the date on which such
inability is expected to end. In such event, Sintetica and ETON will for a period up to thirty (30) days discuss in good faith
a resolution to such inability to supply. Sintetica shall also immediately prioritize its available production capacity, materials
and components to the manufacture of the affected Product to minimize the impact of the failure to supply.

 

4.11.2
Notwithstanding the foregoing, in the event Sintetica is unable to (i) supply Product to ETON as ordered by ETON per purchase
order, and in the amount of product equal to at least that specified in Section 5.2.2 of this Agreement for a period within thirty
(30) days of the Delivery Date or (ii) deliver Product in the amount of product equal to at least that specified in Section 4.2.2
of this Agreement to ETON by the Delivery Date on two (2) or more occasions over a period of three (3) months (a “Supply
Failure”), then ETON shall, in addition to its other rights and remedies available hereunder, have the right to
cancel the purchase order(s) for Product(s) without penalty or liability and to purchase such Product from an alternate source,
including a Third Party. For purposes of this Agreement, delivery within thirty (30) days before or after the Delivery Date shall
be deemed as meeting the Delivery Date.

 

4.11.3
In the event that Sintetica shall have reason to believe it will be unable to supply Product to ETON for a period of at least
three (3) months beyond the Delivery Date (a “Material Delivery Delay”), Sintetica shall promptly notify
ETON thereof. Following ETON’s receipt of such notice the Parties shall promptly meet to discuss in good faith and establish
a plan that shall contain all necessary activities to be implemented to avoid or eliminate interruption in supply, including but
not limited to permitting ETON to purchase the Products from a Third Party if necessary (the “Recovery Plan”).
Sintetica shall be obligated to perform the activities in accordance with the Recovery Plan. If, despite undertaking the measures
set forth in the preceding sentence, ETON purchases substitute product or incurs Customer Penalties as a result of any Supply
Failure or Material Delivery Delay, ETON will provide to Sintetica proof thereof which shall only include identity of the customer,
amount of the customer penalty and a reference to either a credit number or invoice number associated with the customer penalty
and Sintetica shall reimburse ETON for (A) the difference, if any, between (x) the purchase price ETON pays for product from an
alternate source and (y) the Transfer Price and (B) Customer Penalties, including the difference between (i) the purchase price
paid by ETON’s customer to source product from an alternative source and (ii) ETON’s price to the customer for the
Product if such difference is charged by the customer to ETON (each of (A) and (B) “Customer Penalties”).

 

4.11.4
In the event ETON incurs and pays for any Customer Penalties, except due to a Force Majeure Event (which Customer Penalties shall
be deducted from Net Profits), ETON will, as a first remedy, deduct for a period up to two (2) consecutive Calendar Quarters,
from its future payment of the Sintetica Net Profit Share an amount not to exceed the Customer Penalties (the “Deducted
Customer Penalties”) until the first to occur of: (a) the Deducted Customer Penalties equals the Customer Penalties
or (b) ETON does not owe to Sintetica any such Sintetica Net Profit Share. If, after such deductions or upon reaching the end
of the two (2) calendar quarter period, the Customer Penalties exceed the Deducted Customer Penalties, ETON will invoice Sintetica
for such difference and Sintetica will pay such invoice in full within sixty (60) days of receipt thereof. ETON will have the
right to withhold any future payments owed to Sintetica until all such invoices are paid in full.

 

    	 	14	 

    	 	 	 

    

 

4.11.5
Notwithstanding anything to the contrary in this Agreement, in the event of Supply Failure by Sintetica, ETON shall have the right
to use a Third-Party manufacturer to supply the Product for the Territory. In such an event, Sintetica (a) shall use commercially
reasonable efforts to effectuate such technology transfer to the Third-Party manufacturer, and (b) pay for the technology transfer
to the Third-Party manufacturer. Under this Section 4.11.5, ETON shall be fully released from its purchase orders and any Firm
Period section of a Rolling Forecast and shall be permitted to purchase such Products from a Third Party.

 

4.12
The rights and remedies provided in this Section 5 shall be cumulative and in addition to any other rights and remedies that may
be available to ETON.

 

4.13
Inventory: ETON shall keep an amount of inventory at all times greater than six (6) months of forecasted average unit sales
for all Products

 

5.
SALES AND MARKETING

 

5.1
ETON shall be solely responsible for the Marketing of the Products and shall have sole and exclusive right to make all Marketing
decisions for the Product in the Territory.

 

5.2
ETON shall use commercially reasonable efforts to Market the Products in the Territory during the Term of this Agreement.

 

5.3
ETON shall have the sole and exclusive right to determine all terms and conditions of sale of the Products to its or its prospective
consumers.

 

6.
MILESTONES AND PROFIT SHARE; PAYMENTS

 

6.1
Milestones. ETON will pay to Sintetica a total sum of one million seven hundred fifty thousand dollars ($1,750,000) after
the achievement of the following milestones:

 

(a)
An amount of one million dollars ($1,000,000) within thirty (30) days after the execution of this Agreement. If the MAs for the
Products are not accepted to file or review by the FDA, then the one million dollar ($1,000,000) payment shall be returned to
ETON within five (5) Business Days after Sintetica’s receipt of the FDA’s notice of non-acceptance to file or review
of the MAs.

 

(b)
An amount of seven hundred fifty thousand dollars ($750,000) within thirty (30) of the first commercial sale of [*
* *]. If Sintetica is able to supply Product to Eton and Eton has not achieved first commercial sale within ninety (90)
days, the payment shall become due.

 

6.2
Transfer Price.

 

6.2.1
[* * *].

 

    	 	15	 

    	 	 	 

    

 

6.2.2
Sintetica shall use commercially reasonable efforts in accordance with its standard manufacturing practices to reduce its COGS
for Products. The Parties will meet on annual basis to discuss plans to reduce the Transfer Price. Sintetica shall use commercially
reasonable efforts to implement such plans and reduce the Transfer Price.

 

6.2.3
Sintetica will invoice ETON when Product has been released by Sintetica, at a price per unit that is equal to the Transfer Price
for such Product. Except as otherwise provided for in this Agreement, ETON shall pay to Sintetica the Transfer Price for such
Product within thirty (30) days after the date of receipt of an invoice from Sintetica.

 

6.2.4
If ETON fails to cure any non-payment of an invoice within sixty (60) days after receipt of the invoice other than for reasons
outside of its control, then Sintetica may call for immediate payment of all outstanding invoices. Sintetica may also make further
deliveries subject to prepayment.

 

6.3
Net Profit Share.

 

6.3.1
ETON shall pay to Sintetica the first five hundred y thousand ($500,000) of Net Profits from sales by ETON of the Products in
the Territory. After five hundred thousand ($500,000) is paid to Sintetica, ETON and Sintetica will share the Net Profits from
sales by ETON of the Products in the Territory, if any, as follows: (a) ETON’s share is fifty percent (50%) of Net Profits,
and (b) Sintetica’s share is fifty percent (50%) of Net Profits (the “Sintetica Net Profit Share”).

 

6.3.2
ETON will have the right to withhold the following amounts on a Product-by-Product basis from the commercialization of such Products
by ETON in the Territory: five (5%) percent of Net Sales (the “Selling, General and Administrative Fee”
or “SG&A Fee”).

 

6.3.3
Within sixty (60) days following the end of each Calendar Quarter following first commercial sale in the Territory, including
the first and last Payment Period which may be of a shorter duration (each, a “Payment Period”), ETON
shall: (a) compute and report to Sintetica in a mutually acceptable format the Net Sales, Net Profits and Sintetica Net Profit
Share for each Product sold in the Territory during the Payment Period, and (b) pay to Sintetica within thirty (30) days of the
delivery of the report, the aggregate Sintetica Net Profit Share for all Products for that Payment Period as reflected in the
report. For the first commercial year, if aggregate Net Profit for all Products for any Payment Period equals a negative amount,
then Sintetica shall not be entitled to receive any Sintetica Net Profit Share for such Payment Period and ETON shall be permitted
to carry over such negative amount to apply against aggregate positive Net Profit amounts in subsequent Calendar Quarters until
such negative amount is reduced to zero.

 

    	 	16	 

    	 	 	 

    

 

6.4
Interim and Final True-Ups. During the Supply Term, on an annual basis, following the first (1st) calendar
year from launch of Product and on a Product-by-Product basis, ETON shall perform an interim “true-up” reconciliation
and shall provide Sintetica with a written report of such outlining the deductions specified in the definition of Net Sales. The
reconciliation shall be based on actual cash paid or credits issued plus an estimate for any remaining liabilities incurred related
to the specified Product, but not yet paid at the end of the preceding calendar year. If the foregoing reconciliation report shows
either an underpayment or an overpayment between the Parties, the Party owing payment to the other Party shall pay the amount
of the difference to the other Party within thirty (30) days after the date of delivery of such report. In addition, within twenty-five
(25) months after the termination or expiration of the Term or Supply Term and on a Product-by-Product basis, ETON shall perform
a final “true-up” reconciliation and shall provide Sintetica with a written report of such outlining the deductions
specified in the definition of Net Sales. If the foregoing reconciliation report shows either an underpayment or an overpayment
between the Parties, the Party owing payment to the other Party shall pay the amount of the difference to the other Party within
thirty (30) days after the date of delivery of such report.

 

6.5
Taxes. Each Party shall be responsible for and shall pay all Taxes payable on any income earned or received by it
during the Term. Where required by law, ETON shall have the right to withhold applicable Taxes from any payments to be made hereunder
by ETON to Sintetica. Any Tax, duty or other levy paid or required to be withheld by ETON on account of any payments payable to
Sintetica under this Agreement shall be deducted from the amount of payments due to Sintetica. ETON shall secure and promptly
send to Sintetica proof of such Taxes, duties or other levies withheld and paid by ETON for the benefit of Sintetica. Each Party
agrees to cooperate with the other Party in claiming exemptions from such deductions or withholdings under any agreement or treaty
from time to time in effect.

 

6.6
Audits. Each Party shall permit an independent certified public accounting firm selected by the auditing Party and
reasonably acceptable to the non-auditing Party, that has agreed to be bound by a confidentiality agreement reasonably acceptable
to the Parties, to have access, during normal business hours and upon reasonable prior notice (not more often than once in any
calendar year), to those books and records maintained by the non-auditing Party necessary for the auditing Party to verify the
accuracy of the non-auditing Party’s calculations under this Section 6 (including the Transfer Price and Net Profit Share)
for any period ending not more than two (2) years prior to the date of such request, subject to any limitations in scope necessary
to comply with Applicable Law, Third Party confidentiality restrictions, or maintain legal privilege, including but not limited
to Third Party pricing information. All such information shall be retained on a confidential basis by the accounting firm, and
such accounting firm’s use of such information shall be limited to the aforementioned verification. Unless otherwise agreed
to by the Parties in writing, the accounting firm shall not be paid on a contingency or similar basis.

 

6.7
Accounting. ETON and Sintetica shall calculate and record calculations under this Section 7 in accordance with U.S.
GAAP, and shall maintain all books and records related thereto in accordance with standard cost accounting policies and practices,
in accordance with U.S. GAAP for the Supply Term plus an additional three (3) years thereafter.

 

7.
INTELLECTUAL PROPERTY AND OTHER RIGHTS

 

7.1
At its sole cost and expense, Sintetica shall be solely responsible and liable for any litigation in connection with the Product’s
development, manufacturing, and the Sintetica Background Intellectual Property.

 

    	 	17	 

    	 	 	 

    

 

7.2
At its sole cost and expense, ETON shall be solely responsible and liable for any non-patent litigation in connection with its
marketing activities.

 

7.3
Patents and Other Intellectual Property. Each Party shall be responsible, at its own expense, for filing and prosecuting
such patent applications, as it deems appropriate, and for paying maintenance fees on any patents issuing therefrom, for the Term,
with respect to intellectual property owned by it that relate to or are used in connection with the manufacture, sale or use of
the Product. Notwithstanding anything herein to the contrary, and provided that the Sintetica Background Intellectual Property
is covered by a patent or patent application, Sintetica, at its sole cost and expense, shall maintain and protect the Sintetica
Background Intellectual Property and continue to prosecute and maintain its patents covering the Sintetica Background Intellectual
Property and shall keep ETON advised of material actions relative to the same. Should Sintetica contemplate to abandon or otherwise
forfeit any patent/patent applications or patent rights in the Sintetica Background Intellectual Property, Sintetica shall notify
ETON in advance of such contemplation. In such an event, ETON may pursue filing and prosecuting such patent applications relating
to the Products, at its own cost and expense, and shall obtain from Sintetica rights and licenses to those patents and patent
applications with the same scope as that in Section 2.1. Sintetica shall maintain the confidentiality of any trade secrets covering
the Sintetica Background Intellectual Property. Each Party shall promptly render all necessary assistance reasonably requested
by the other Party, at the requesting Party’s expense, in applying for and prosecuting patent applications based on intellectual
property owned by such other Party pursuant to this Agreement.

 

7.4
Notice of Infringement. If either Party shall learn of (a) any claim or assertion that the manufacture, use or marketing
of the Product under this Agreement, or any other action taken by either Party in performance of its obligations hereunder infringes,
misappropriates or otherwise violates the intellectual property rights of any Third Party, or (b) the actual or threatened infringement,
misappropriation or other violation by any Third Party of the intellectual property rights of any Party hereto that are the subject
of this Agreement (“Intellectual Rights Suits”), then the Party becoming so informed shall as soon as
reasonably practicable, but in all events within fourteen (14) days thereafter (the “Infringement Notification Date”),
notify the other Party of such claim or assertion, or actual or threatened infringement, misappropriation or other violation.

 

7.5
Provision of Information. Sintetica shall promptly provide ETON with reasonable access to information and data about,
and personnel knowledgeable of, the Product, its formulation, use and process of manufacture, to enable ETON to: (a) ascertain
whether the manufacture or marketing of the Product would infringe any Third Party intellectual property rights; and (b) determine
its conduct in relation to any proceedings alleging infringement of the Third Party intellectual property rights.

 

7.6
Intellectual Rights Suit.

 

7.6.1
At its sole cost and expense, Sintetica shall be solely responsible and liable for and assume the direction and control of any
Intellectual Rights Suit and the defense of claims arising therefrom, including, without limitation, the selection of legal counsel;
provided, however, that Sintetica shall keep ETON apprised of material developments. ETON shall fully cooperate with Sintetica
in the defense of any such Intellectual Rights Suit (regardless of which Party is a named party to such suit), including joining
as a party to the suit, and shall be consulted by Sintetica in connection with the settlement of any such Intellectual Rights
Suit. Except as otherwise set forth in this Agreement, Sintetica shall be responsible for all reasonable attorneys’ fees
and costs, settlement amounts and/or awarded damages incurred by either Party or their respective Affiliates in connection with
the defense of any Intellectual Rights Suit provided such is directly related to this Agreement (“Intellectual Rights
Legal Expenses”).

 

    	 	18	 

    	 	 	 

    

 

7.6.2
Sintetica agrees that it will not, whether in the context of litigation or otherwise related thereto, without the prior written
consent of ETON enter into any agreement or arrangement with any Third Party which in any way compromises, relinquishes, waives,
or otherwise affects, in whole or in part, the rights of ETON under this Agreement in respect of the Product.

 

7.7
Third Party Infringement. In the event either Party believes that a Third Party is infringing or otherwise violating
a Party’s intellectual property rights in the Territory or Manufacturing Territory, which infringement involves the Product,
Sintetica and ETON shall consult with each other and their respective counsel in order to develop a strategy for addressing the
Third-Party infringement. Unless the Parties agree differently, the owner of the infringed intellectual property (the owning Party)
shall have the right at its sole discretion to bring action against the Third Party infringer, select counsel for, control, and
bear the costs of such action, shall indemnify and hold the non-owning Party harmless, and shall be entitled to any award or settlement
in respect thereof. In the event that the owning Party does not bring any action against the Third-Party infringer within the
earlier of ninety (90) days from the Infringement Notification Date or the relevant statute of limitations, the non-owning Party
shall be free to bring the action in its own name, at its own expense, and retain any award or settlement in its entirety. If
necessary, the non-participating Party shall join, or be joined as a Party to the suit, but shall be under no obligation to participate,
except to the extent that such participation is required as the result of being a named Party to the suit. The non-participating
Party shall offer reasonable assistance in connection therewith, at no charge to the participating Party, except for reimbursement
of reasonable out-of-pocket expenses.

 

7.8
Sections 7.1, 7.2 and 7.6 shall survive termination or expiration of this Agreement.

 

8.
INSURANCE

 

At
all times from the first commercial sale of any Product(s) or after the Effective Date through the date which is five (5) years
after the final sale of such Product(s), the Parties will maintain general liability insurance in amounts that are reasonable
and customary in the pharmaceutical industry, provided in no event shall the general liability insurance amounts be less than
five million dollars ($5,000,000) per occurrence and ten million dollars ($10,000,000) in the aggregate limit of liability per
year. The Parties shall provide written proof of such insurance to each other upon request.

 

    	 	19	 

    	 	 	 

    

 

9.
CONFIDENTIAL INFORMATION; PUBLICITY

 

9.1
Confidential Information. Each Party agrees that it shall not, without the prior written consent of the other Party,
(i) disclose to any Person such other Party’s Confidential Information (as defined below), except to those of its and its
Affiliates’ employees or representatives who need to know such information for the purpose of exploiting its rights or fulfilling
its obligations under this Agreement (and then only to the extent that such persons are under an obligation to maintain the confidentiality
of the Confidential Information), or (ii) use any of such other Party’s Confidential Information for any reason other than
as contemplated by this Agreement. If a Party has been advised by legal counsel that disclosure of Confidential Information of
the other Party is required to be made under Applicable Law (including to the FDA or pursuant to the requirements of a national
securities exchange or another similar regulatory body on which it’s or any of its Affiliates stock trades) or pursuant
to documents subpoena, civil investigative demand, interrogatories, requests for information, or other similar process, the Party
required to disclose the Confidential Information shall (to the extent legally permitted) provide the other Party with prompt
written notice of such request or demands or other similar process so that such other Party may seek an appropriate protective
order or waive the disclosing Party’s compliance with the provisions of this Section. In the absence of a protective order
or waiver or other remedy, the Party required to disclose the other Party’s Confidential Information may disclose only that
portion of the Confidential Information that its legal counsel advises it is legally required to disclose, provided that it exercises
its commercially reasonable efforts to preserve the confidentiality of such other Party’s Confidential Information, at such
other Party’s expense, including by cooperating with such other Party to obtain an appropriate protective order or other
reliable assurance that confidential treatment will be accorded the Confidential Information. Confidential Information shall remain
the sole property of the disclosing Party and all Confidential Information furnished in written form (and all copies thereof)
shall be promptly returned to the disclosing Party or destroyed by the receiving Party at the disclosing Party’s request;
provided, however, that the receiving Party may retain copies of such Confidential Information as necessary for its compliance
obligations under Applicable Laws and any archival purposes, subject to the ongoing obligation to maintain the confidentiality
of such information. This Section 9.1 shall survive termination or expiration of this Agreement and continue in effect thereafter
for a period of five (5) years.

 

9.2
Definition of Confidential Information. The term “Confidential Information” as used in
this Agreement means all confidential information relating to the Parties’ business and operation, this Agreement and its
terms, or other technical, business or financial information provided by the Parties as contemplated by this Agreement. The term
“Confidential Information” does not include information that (A) becomes generally available to the public other than
as a result of disclosure by the receiving Party, (B) becomes available to the receiving Party on a non-confidential basis from
a source other than the disclosing Party, provided that such source is not known by the receiving Party to be bound by
a confidentiality agreement with the disclosing Party, (C) was previously known by the receiving Party as evidenced by the receiving
Party’s written records, or (D) was independently developed by the receiving Party without use of or reliance on the Confidential
Information.

 

10.
TRANSFER TAXES

 

All
transfer, sales, value added, stamp duty and similar Taxes (“Transfer Taxes”) payable to the U.S. government
in connection with the transaction contemplated hereby will be borne by ETON and all Transfer Taxes payable to the Swiss government
in connection with the transaction contemplated hereby will be borne by Sintetica.

 

    	 	20	 

    	 	 	 

    

 

11.
TERM & TERMINATION

 

11.1
Term. The term of this Agreement shall begin on the Effective Date and shall end upon the termination or expiration
of every Supply Term, unless earlier terminated as set forth in Sections 11.2, 11.3 and 11.4 of this Agreement (the “Term”).
The Supply Term shall begin on the Effective Date and shall end ten (10) years after the first commercial sale of each Product,
and automatically be extended for successive three (3) year increments unless ETON or Sintetica provides each other with written
notice of its intention not to extend the particular Supply Term for a given Product at least six (6) months before the expiration
of the applicable initial Supply Term or any extension thereof.

 

11.2
Termination for Breach. The Agreement may be terminated by either Party by written notice to the other at any time
if the other Party (the “Breaching Party”) is in material breach or default of any of its obligations
hereunder or any of its representations or warranties as follows: (i) the terminating Party shall send a written notice of the
material breach or material default to the Breaching Party and (ii) the termination shall become effective sixty (60) days after
the sending of such written notice unless the Breaching Party has cured any such material breach or material default prior to
the expiration of the sixty (60) day period or if such material default or material breach is not capable of being cured within
such sixty (60) day period and the Breaching Party has commenced activities reasonably expected to cure such material breach or
material default within such sixty (60) day period and thereafter uses diligent efforts to complete the cure as soon as practicable,
but in no event shall such period exceed one hundred eighty (180) days.

 

11.3
Termination for Bankruptcy. Either Party may immediately terminate the Agreement in whole or in part if the other
Party: (a) makes an assignment for the benefit of creditors, admits in writing its inability to pay debts as they mature, or ceases
operating in the normal course of business; (b) has a receiver or trustee appointed by a court over the Party or any substantial
part of the Party’s assets; (c) becomes insolvent or is unable to pay its debts as they become due; (d) authorizes, applies
for or consents to the appointment of a trustee or liquidator of all or a substantial part of its assets or has proceedings seeking
such an appointment commenced against it which are not terminated within ninety (90) days of such commencement; (e) has any substantial
part of its property subjected to any levy, seizure, assignment or sale for, or by any creditor or governmental agency without
said levy, seizure, assignment or sale being lifted, released, reversed or satisfied within ten (10) days; (f) files a voluntary
petition under any chapters of the United States Bankruptcy Code or any other insolvency law or an involuntary proceeding has
been commenced by any Party against the Party under any one of the chapters of the United States Bankruptcy Code or any other
insolvency law and (A) the proceeding has been pending for at least sixty (60) days; or (B) the Party has consented, either expressly
or by operation of law, to the entry of an order for relief; or (C) the Party has been decreed or adjudged a debtor or equivalent.

 

11.4
Termination By ETON. ETON shall have the right to terminate the Agreement or any Supply Term in whole or in part
upon thirty (30) days prior written notice to Sintetica (a) in the event ETON determines in its sole discretion that a given Product
is no longer commercially viable in the Territory; (b) if Sintetica sells an MA for a Product or otherwise does not support maintaining
approval of the MA; (c) if Sintetica stops producing the Product; (d) if a Sintetica facility (i) fails to obtain or maintain
any necessary license, ; (e) if Eton determines in its sole discretion that the Product filings are unlikely to be approved by
the FDA and (f) any Product infringes upon any Third Party patents, trademarks, or other intellectual property rights in the Territory
or Territory of Manufacture.

 

    	 	21	 

    	 	 	 

    

 

11.5
Termination By Sintetica. Sintetica shall have the right to terminate the Agreement or any Supply Term in whole
or in part upon thirty (30) days prior written notice to ETON (a) if ETON develops competing product; and (b) if Government action
forces the cessation of ETON’s selling and marketing activities of all pharmaceutical products..

 

11.6
Effect of Termination.

 

11.6.1
If this Agreement is terminated by ETON under Sections 11.2, 11.3, and 11.4 (b,c,d,f) in addition to any remedies that ETON is
entitled to (a) Sintetica shall, at its cost, provide reasonable assistance in technology transfer to an alternative supplier
of ETON’s choice and make best efforts in reducing or avoiding any adverse impact to ETON, (b) ETON shall have the right
to purchase such Products from a Third Party and shall have a perpetual, fully-paid up, royalty-free, sublicensable, and exclusive
right and license (including as to and against Sintetica) to make and have made the Product inside and outside the Territory and
Market the Products in the Territory, at its option, and (c) Sintetica shall execute any documents or agreements reasonably necessary
to effectuate the foregoing (including but not limited to any amendment to this Agreement), as determined by ETON.

 

11.6.2
If this Agreement is terminated by Sintetica under Sections 11.2 and 11.3, then (a) ETON shall have the right to, and Sintetica
shall hereby grant ETON a license to, Market or otherwise dispose of any existing inventory of any Products then in ETON’s
possession, (b) Sinetica may keep all the licensing payments paid by ETON up to the point of termination and is free to commercialize
or relicense the Product with no further obligations owed to ETON, (c) ETON shall refrain from holding itself out as Sintetica’s
distributor, in particular, eliminate any reference to the Product and Sintetica from its business, trade style and promotional
material, (d) ETON will promptly transfer the MAs to Sintetica’s name, and (e) ETON shall transfer all rights, licenses,
and approvals to the Product to Sintetica or another company indicated by Sintetica within thirty (30) days of termination. This
Section 11.5 shall survive termination or expiration of this Agreement.

 

11.6.3
If this Agreement is terminated by ETON under Section 11.4(a) all milestones will become immediately due to Sintetica . All rights
to Products will immediately return to Sintetica.

 

11.6.4
If this Agreement is terminated by ETON under Section 11.4(e) prior to two years having elapsed since filing for the MA with the
FDA; all milestones will become immediately due to Sintetica, and a one time payment for lost Gross Profit of one million dollars
($1,000,000) will also become due. All rights to Products will immediately return to Sintetica.

 

    	 	22	 

    	 	 	 

    

 

12.
REPRESENTATIONS AND WARRANTIES

 

12.1
ETON Representations and Warranties. ETON represents and warrants to Sintetica that:

 

12.1.1
it has the corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby;

 

12.1.2
neither the execution and delivery of this Agreement by it, nor its performance hereunder, conflicts with or will result in any
violation or breach of, or constitutes (with or without due notice or lapse of time or both) a default under any of the terms
or conditions of any note, indenture, license, agreement or other instrument or obligation to which it is a party or by which
it or any of its properties or assets may be bound; or to its best knowledge, violates any Applicable Law;

 

12.1.3
this Agreement is a legal, valid and binding agreement of ETON, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights
generally from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness,
good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law; and

 

12.1.4
it has not been debarred, is not subject to debarment, and will not use, in any capacity in connection with the obligations to
be performed under this Agreement, any person who has been debarred pursuant to Section 306 of the United States Food, Drug and
Cosmetic Act;

 

12.1.5
there is no Claim, suit, investigation, action or proceeding pending or threatened against ETON before any court, governmental
agency, or arbitration panel which may in any way materially adversely affect the performance of its obligations hereunder or
transaction contemplated by this Agreement;

 

12.1.6
it has not and will not enter into any contract or any other transaction with any Third Party or Affiliate that conflicts with
or derogates from its undertakings hereunder;

 

12.1.7
it has and will at all times during Term have requisite expertise, experience, personnel, equipment and skill to perform its obligations
hereunder; and

 

12.1.8
it will not make nor will it promise to make any payment in violation of the U. S. Foreign Corrupt Practices Act or similar applicable
local, federal or national law.

 

12.2
Sintetica Representation and Warranties. Sintetica represents and warrants to ETON that:

 

12.2.1
it has the corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby;

 

    	 	23	 

    	 	 	 

    

 

12.2.2
neither the execution and delivery of this Agreement by it, nor its performance hereunder, conflicts with or will result in any
violation or breach of, or constitutes (with or without due notice or lapse of time or both) a default under any of the terms
or conditions of any note, indenture, license, agreement or other instrument or obligation to which it is a Party or by which
it or any of its properties or assets may be bound; or to its best knowledge, violates any Applicable Law;

 

12.2.3
this Agreement is a legal, valid and binding agreement of Sintetica, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights
generally from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness,
good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law;

 

12.2.4
it has not been debarred, is not subject to debarment, and will not use, in any capacity in connection with the obligations to
be performed under this Agreement, any person who has been debarred pursuant to Section 306 of the United States Food, Drug and
Cosmetic Act;

 

12.2.5
there is no Claim, suit, investigation, action or proceeding pending or threatened against Sintetica before any court, governmental
agency, or arbitration panel which may in any way materially adversely affect the performance of its obligations hereunder or
transaction contemplated by this Agreement;

 

12.2.6
it will not divest, sell, fail to maintain or otherwise dispose of any MA related to Products during the Term of this Agreement;

 

12.2.7
it has not and will not enter into any contract or any other transaction with any Third Party or Affiliate that conflicts with
or derogates from its undertakings hereunder;

 

12.2.8
it has and will at all times during Term have requisite expertise, experience, personnel, equipment and skill to perform its obligations
hereunder;

 

12.2.9
it has the unencumbered right to the MAs and Products and the right, power and authority to grant a license to ETON hereunder;

 

12.2.10
it has and will maintain until the end of the Term the capacity to manufacture the Products in quantities ordered by ETON;

 

12.2.11
it will not make nor will it promise to make any payment in violation of the U. S. Foreign Corrupt Practices Act or similar applicable
local, federal or national law;

 

12.2.12
it has obtained and will maintain all required licenses, authorizations, and approvals required by federal, state, or local governmental
authorities, including the FDA and any other applicable regulatory agency to manufacture, export and supply each Product for the
Territory and in accordance with this Agreement;

 

    	 	24	 

    	 	 	 

    

 

12.2.13
its manufacturing facilities applicable to Products conform, and shall conform throughout the Term, in all respects to all Applicable
Laws governing such facilities and it shall maintain all records as are necessary and appropriate to demonstrate compliance in
the manufacture of each Product with GMP, the Specifications, the applicable MA, the Quality Agreement and all Applicable Laws;

 

12.2.14
all Product supplied to ETON shall: (i) meet the applicable Specifications at the time of shipment; (ii) meet regulatory requirements
of any relevant regulatory authority in the Territory and Territory of Manufacture; (iii) be manufactured, packaged, tested, stored
and shipped in accordance with applicable GMP, the MA, Applicable Law and this Agreement; (iv) not be adulterated or misbranded
under the U. S. Food, Drug and Cosmetic Act or any other relevant laws and regulations as amended from time to time; and (v) be
produced, packaged, tested and stored in facilities that have been approved by applicable regulatory authorities to the extent
required by Applicable Laws;

 

12.2.15
Sintetica has not been informed of any proceeding or similar action pending or threatened in writing seeking the revocation, suspension
or amendment of any MAs for reasons related to safety or efficacy;

 

12.2.16
The FDA has not requested or demanded in writing that Sintetica discontinue any MAs for reasons related to safety or efficacy;

 

12.2.17
Sintetica has not been informed of any pending or threatened in writing product liability claims relating to any Product; and

 

12.2.18
Sintetica has not been informed of any pending or threatened in writing Claims alleging infringement of a Third Party’s
intellectual property rights relating to any MAs or the use, manufacture, import, distribution, sale or offer for sale of any
Product.

 

12.3
Survival of Representations and Warranties. All representations and warranties of ETON and Sintetica contained
herein or made pursuant hereto shall be ongoing during the Term and for a period of twelve (12) months thereafter. In the event
of any breach of the representations and warranties set forth herein, the applicable Party shall immediately notify the other
Party of such breach.

 

13.
INDEMNIFICATION

 

13.1
Sintetica’s Indemnification Obligations. Sintetica shall indemnify, defend and hold ETON and its owners, officers,
directors, Affiliates, and employees (collectively, “ETON Indemnified Parties”) harmless from and against
any and all Losses arising out of or resulting from any Third Party Claims made or suits brought against ETON Indemnified Parties
which arise or result from (i) Sintetica’s material breach of any of its representations, warranties or covenants set forth
in this Agreement, or any of its obligations hereunder; (ii) Sintetica’s manufacture, registration, handling, storage, use,
transportation of any Product on or after the Effective Date, including, without limitation, any Claim for personal injury or
death, to the extent such Third Party Claims arise from the period of time commencing on or after the Effective Date and to the
extent such is not attributable to ETON’s breach of this Agreement or any Applicable Laws; or (iii) Sintetica’s negligence
or willful misconduct with regard to the Products to the extent such is not attributable to ETON’s breach of this Agreement
or any Applicable Laws.

 

    	 	25	 

    	 	 	 

    

 

13.2
ETON’s Indemnification Obligations. ETON shall indemnify, defend and hold Sintetica and its officers, directors,
agents, Affiliates, and employees (collectively, “Sintetica Indemnified Parties”) harmless from and
against any and all Losses arising out of or resulting from any Third Party Claims made or suits brought against Sintetica Indemnified
Parties which arise or result from (i) ETON’s material breach of any of its representations, warranties or covenants set
forth in this Agreement, or any of its obligations hereunder; (ii) ETON’s marketing, distribution, or sale of any Product
on or after the Effective Date, including, without limitation, any Claim for personal injury or death, to the extent such Third
Party Claims arise from the period time commencing on or after the Effective Date and to the extent such is not attributable to
Sintetica’s breach of this Agreement or any Applicable Law; or (iii) ETON’s negligence or willful misconduct with
regard to the Products to the extent such is not attributable to Sintetica’s breach of this Agreement or any Applicable
Laws.

 

13.3
Indemnification Procedure.

 

13.3.1
Notice of the matter which may give rise to such Claim shall be given in writing by the indemnitee (the “Indemnitee”)
to the Party against whom indemnification may be sought (the “Indemnitor”) as soon as reasonably practicable
after such Indemnitee becomes aware of such Claim; provided, however, that the failure to notify the Indemnitor shall not relieve
it from any liability that it may have to the Indemnitee otherwise unless the Indemnitor demonstrates that the defense of the
underlying Claim has been materially prejudiced by such failure to provide timely notice. Such notice shall request indemnification
and describe the potential Losses and Claim giving rise to the request for indemnification, and provide, to the extent known and
in reasonable detail, relevant details thereof. If the Indemnitor fails to give Indemnitee notice of its intention to defend any
such Claim as provided in this Section 13.3.1. the Indemnitee involved shall have the right to assume the defense thereof with
counsel of its choice, at the Indemnitor’s expense, and defend, settle or otherwise dispose of such Claim with the consent
of the Indemnitor, not to be unreasonably withheld or delayed.

 

13.3.2
In the event the Indemnitor elects to assume the defense of a Claim, the Indemnitee of the Claim in question and any successor
thereto shall permit Indemnitor’s counsel and independent auditors, to the extent relevant, reasonable access to its books
and records and otherwise fully cooperate with the Indemnitor in connection with such Claim; provided, however, that (i) the Indemnitee
shall have the right fully to participate in such defense at its own expense; (ii) the Indemnitor’s counsel and independent
auditors shall not disclose any Confidential Information of the Indemnitee to the Indemnitor without the Indemnitee’s consent;
(iii) access shall only be given to the books and records that are relevant to the Claim or Losses at issue. The defense by the
Indemnitor of any such actions shall not be deemed a waiver by the Indemnitee of its right to assert a Claim with respect to the
responsibility of the Indemnitor with respect to the Claim or Losses in question. The Indemnitor shall not have the right to settle
or compromise any Claim against the Indemnitee (that the Indemnitor has defended pursuant to this Section 13.3.2) without the
consent of the Indemnitee which shall not be unreasonably withheld or delayed. No Indemnitee shall pay or voluntarily permit the
determination of any Losses which is subject to any such Claim while the Indemnitor is negotiating the settlement thereof or contesting
the matter, except with the prior written consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed.

 

13.3.3
This Section 13 shall survive termination or expiration of this Agreement.

 

    	 	26	 

    	 	 	 

    

 

14.
LIMITATION OF LIABILITY

 

14.1
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.

 

15.
MISCELLANEOUS

 

15.1
Governing Law; English Language. This Agreement shall be governed, interpreted and construed in accordance with
the substantive laws of Switzerland. To the extent that it may otherwise by applicable, the Parties hereby expressly agree to
unconditionally waive and exclude from the operation of this Agreement the United Nations Convention on Contracts for the International
Sale of Goods, concluded at Vienna, on 11 April 1980, as amended and as may be amended further from time to time. This Agreement
has been negotiated and drafted by the Parties in the English language. Any translation into any other language shall not be an
official version thereof. In the event any translation of this Agreement is prepared for convenience or for any other purpose,
the provisions of the English version shall prevail.

 

15.2
Force Majeure. Neither Party shall be liable for non-performance or delay in the fulfillment of its obligations
when any such non-performance or delay shall be occasioned by any unforeseeable cause beyond the reasonable control of Sintetica
or ETON, as the case may be, including without limitation, acts of God, fire, flood, earthquakes, explosions, sabotage, strikes
or labor disturbances, civil commotion, riots, military invasions, war, terrorism, failure of utilities, failure of carriers,
or any acts, restraints, requisitions, regulations, or directives issues by a Governmental Entity (“Force Majeure
Events”). In the event either Party is prevented from discharging its obligations hereunder on account of a Force
Majeure Event, such Party shall notify the other forthwith and shall nevertheless make every endeavor in good faith to discharge
its said obligations even if in a partial or compromised manner. If either Party is unable to perform its obligations hereunder
as a result of a Force Majeure Event for a period of thirty (30) days or greater, then the other Party shall have the right, following
sixty (60) days’ notice to the other Party to terminate the Supply Term if the Force Majeure Event still exists following
such sixty (60) day notice period. Notwithstanding anything to the contrary in this Agreement, any Customer Penalties attributable
to such Force Majeure Event shall be deducted from Net Profits.

 

15.3
Notices. All notices and other communications required or permitted to be given or made pursuant to this Agreement
shall be in writing signed by the sender and shall be deemed duly given (a) on the date delivered, if personally delivered, (b)
on the date sent by telecopier with automatic confirmation by the transmitting machine showing the proper number of pages were
transmitted without error, (c) on the Business Day after being sent by Federal Express or another recognized overnight mail service
which utilizes a written form of receipt for next day or next Business Day delivery or (d) three (3) Business Days after mailing,
if mailed by U.S. postage-prepaid certified or registered mail, return receipt requested, in each case addressed to the applicable
Party at the address set forth below; provided that a Party may change its address for receiving notice by the proper giving of
notice hereunder:

 

    	 	27	 

    	 	 	 

    

 

	 	If
    to ETON, to:
	 	 
	 	ETON
                                         Pharmaceuticals, Inc.

        21925
        W. Field Pkwy, Suite 235

        Deer
        Park, Illinois, USA

	 	Attention:
    CEO
	 	 
	 	With
    a copy (which shall not constitute notice) to: 
	 	 
	 	ETON
                                         Pharmaceuticals, Inc.

        21925
        W. Field Pkwy, Suite 235

        Deer
        Park, Illinois, USA

	 	Attention:
    Legal
	 	 
	 	if
                                         to Sintetica, to:

         

        Sintetica
        S.A.

        Via
        Penate 5,

        6850
        Mendrisio, Switzerland

        Attention:
        CEO

 

15.4
Relationship of Parties. The status of the Parties under this Agreement shall be that of independent contractors,
without the authority to act on behalf of or bind each other. Nothing in this Agreement shall be construed as establishing a partnership
or joint venture relationship between the Parties hereto. No Party shall have the right to enter into any agreements on behalf
of the other Party, nor shall it represent to any person that it has such right or authority. All persons employed by a Party
shall be employees of such Party and not of the other Party and all costs and obligations incurred by reason of any such employment
shall be for the account and expense of such Party.

 

15.5
Entire Agreement; Amendment. This Agreement (and all Exhibits attached hereto) supersedes all prior discussions
and agreements among the Parties with respect to the subject matter hereof and contains the sole and entire agreement among the
Parties hereto with respect to the subject matter hereof. This Agreement may not be amended or modified except in writing executed
by the duly authorized representatives of the Parties.

 

    	 	28	 

    	 	 	 

    

 

15.6
No Third-Party Beneficiaries. This Agreement is not intended to confer upon any Person other than the Parties hereto
any rights or remedies hereunder.

 

15.7
Severability. Should any part or provision of this Agreement be held unenforceable or in conflict with Applicable
Law, the invalid or unenforceable part or provision shall, provided that it does not affect the essence of this Agreement, be
replaced with a revision which accomplishes, to the greatest extent possible, the original commercial purpose of such part or
provision in a valid and enforceable manner, and the balance of this Agreement shall remain in full force and effect and binding
upon the Parties hereto.

 

15.8
Assignment. The terms and provisions hereof shall inure to the benefit of, and be binding upon the Parties and their
respective successors and permitted assigns. The Parties shall not assign, encumber or otherwise transfer this Agreement or any
part of it to any Third Party, without the prior written consent of the other Party. Notwithstanding the foregoing, each Party
may assign the rights and obligations under this Agreement in whole, without consent of the other Party, to a Third Party or Affiliate
in connection with the transfer or sale of all or substantially all of its business or in the event of a merger, consolidation
or change in control provided that the assignee assumes in writing and becomes directly obligated to the other Party to perform
all of the obligations of assignor under this Agreement.

 

15.9
Waiver. No waiver of a breach or default hereunder shall be considered valid unless in writing and signed by the
Party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar
nature.

 

15.10
Survival. Any provision which by its terms is intended to survive the termination or expiration of this Agreement
will survive the termination or expiration of this Agreement and remain in full force and effect thereafter.

 

15.11
Counterparts; PDF. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed
an original but all of which, taken together, shall constitute one and the same instrument. PDF and facsimile signatures shall
constitute original signatures. The Parties agree that the electronic signatures appearing on this Agreement are the same as handwritten
signatures for the purposes of validity, enforceability and admissibility pursuant to the Electronic Signatures in Global and
National Commerce (ESIGN) Act of 2000, and Uniform Electronic Transactions Act (UETA) model law, or similar applicable laws.

 

[Signature
Page Follows]

 

    	 	29	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

 

	ETON
    PHARMACEUTICALS, INC.	 
	 	 
	By:
    	 	 
	Name:
    	                         	 
	Title:
    	 	 
	 	 	 
	SINTETICA
    S.A.	 
	 	 
	By:
    	 	 
	Name:
    	 	 
	Title:
    	 	 

 

    	 	 	 

    	 	 	 

    

 

CONFIDENTIAL

 

EXHIBIT
A: PRODUCTS AND TRANSFER PRICES

 

Products:

[*
* *]

 

Transfer
Price:

[*
* *]Exhibit
10.3

 

Certain
information identified by bracketed asterisks ([* * *]) has been omitted from this exhibit because it is both not material and
would be competitively harmful if publicly disclosed.

 

EXCLUSIVE
LICENSE AND

SUPPLY
AGREEMENT

 

This
Exclusive License and Supply Agreement (“Agreement”) is made and entered into as of January
23, 2019 (“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 [* * *] (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.

 

    	1

    	 

    

 

“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.

 

“LMW/LM
Background Intellectual Property” shall mean any and all patents and trademarks, patent and trademark applications or other
patent and trademark rights, copyrights, inventions, know-how, trade secrets, proprietary knowledge, data, and other information
owned, licensed to or controlled by LMW or LM relating to the Product, including but not limited to use, manufacture, and packaging
thereof.

 

    	2

    	 

    

 

“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, (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, (iv) LMW’s share of the Regulatory Fees for the Product, and (v) any customer penalties
due to a Force Majeure event. 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 [* * *].

 

“Regulatory
Fees” shall have the meaning ascribed to that term in Section 3.b. of this Agreement.

 

    	3

    	 

    

 

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

 

“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 and LM hereby grant to ETON an
                                         exclusive license, including the right to sublicense, to the Product and all current
                                         and future LMW/LM Background Intellectual Property related to the Product for the development,
                                         manufacture, importation, use, sale and offer for sale of the Product in and for 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 two million five hundred thousand dollars ($2,500,000.00
                                         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)
	 	 	 
	[*
    * *]	 	[*
    * *]
	 	 	 
	[*
    * *]	 	[*
    * *]
	 	 	 
	[*
    * *]	 	[*
    * *]
	 	 	 
	[*
    * *]	 	[*
    * *]
	 	 	 
	[*
    * *]	 	[*
    * *]

 

    	4

    	 

    

 

		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 and sublicensable right to develop, obtain regulatory approval for, make, have
                                         made, use, sell, offer to sell, import and otherwise commercialize Product 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 filing and any ongoing fees
                                         in connection with the submission and maintenance of the NDA/ANDA for the Product (“Regulatory
                                         Fees”). ETON shall have the right to recoup thirty-five (35%) of any Regulatory
                                         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.
                                         [* * *].
	 	 	 
		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.

 

    	5

    	 

    

 

		f.	IP
                                         for Further Development. ETON shall solely own any intellectual property obtained
                                         in connection with exercising its rights under Section 3.a. to develop, obtain regulatory
                                         approval for, make, have made, use, sell, offer to sell, import and otherwise commercialize
                                         Product in the Territory.

 

		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 December 31, 2020 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. In such an
                                         event, LMW and LW shall provide the appropriate rights and licenses to the Product and
                                         any LMW Background Intellectual Property for the manufacture and supply of the Product
                                         by the alternate manufacturer to ETON for sale and marketing in the Territory.
	 	 	 
		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.

 

    	6

    	 

    

 

		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
                                         [* * *]. LM shall use commercially reasonable
                                         efforts in accordance with its standard manufacturing practices to reduce its direct
                                         costs to manufacture the Product. The Parties will meet on an annual basis to discuss
                                         plans to reduce the Transfer Price, if necessary.
	 	 	 
		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.	[*
                                         * *]

 

		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.
                                         Customer penalties incurred by ETON due to LM’s failure to deliver the Product
                                         timely, except in a Force Majeure event, shall be paid by LM; and such invoices to LM
                                         from ETON shall be due within thirty (30) days of the receipt of the invoices.

 

    	7

    	 

    

 

		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.

 

    	8

    	 

    

 

		(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.	Other
                                         Intellectual Property.

 

		a.	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.

 

    	9

    	 

    

 

		(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.
	 	 	 
		(vi)	Intellectual
                                         Property Litigation. In the event a Party believes that a third party is infringing
                                         or otherwise violating a party’s intellectual property rights in the Territory
                                         or country of manufacture, which infringement involves the Product, the parties shall
                                         consult with each other and their respective counsel in order to develop a strategy for
                                         addressing the third-party infringement. Unless the parties agree differently, the owner
                                         of the infringed intellectual property (the owning Party) shall have the right at its
                                         sole discretion to bring action against the third party infringer, select counsel for,
                                         control, and bear the costs of such action, shall indemnify and hold the non-owning Party
                                         harmless, and shall be entitled to any award or settlement in respect thereof. In the
                                         event that the owning Party does not bring any action against the third-party infringer
                                         within the earlier of ninety (90) days from the infringement notification date or the
                                         relevant statute of limitations, the non-owning Party shall be free to bring the action
                                         in its own name, at its own expense, and retain any award or settlement in its entirety.
                                         If necessary, the non-participating Party shall join, or be joined as a Party to the
                                         suit, but shall be under no obligation to participate, except to the extent that such
                                         participation is required as the result of being a named Party to the suit. The non-participating
                                         Party shall offer reasonable assistance in connection therewith, at no charge to the
                                         participating Party, except for reimbursement of reasonable out-of-pocket expenses. In
                                         such an event, the expense and cost of such a litigation shall be deducted from any profit
                                         share.

 

    	10

    	 

    

 

		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;

 

    	11

    	 

    

 

		(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.

 

    	12

    	 

    

 

		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.

 

    	13

    	 

    

 

		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.

 

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		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.

 

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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 and its license under Section 2.a.

 

		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.

 

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		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.

 

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		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.

 

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

 

	On
        behalf of:

                                                                      

        ETON
        PHARMACEUTICALS, INC.
	 	On
        behalf of:

                                                                      

        LIQMEDS
        WORLDWIDE LTD.

	 	 	 
	 	 	 
	By:
    	Sean
    Brynjelsen	 	By:
    	Mohammed
    Arsalaan Khan
	Its:
    	President	 	Its:
    	Director
	 	 	 
	 	 	On
        behalf of:

                                                                      

        LM
        MANUFACTURING, LTD.

	 	 	 
	 	 	 
	 	 	By: 	 
	 	 	Its:	 

 

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