Document:

Asset Purchase Agreement

 Exhibit 10.5 

 

	
	 CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “***”. A COMPLETE VERSION OF THE EXHIBIT HAS BEEN FILED SEPARATELY WITH
THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 406 OF THE SECURITIES ACT OF 1933.

 EXECUTION COPY 
 ASSET PURCHASE AGREEMENT 
 BETWEEN 

ELAN PHARMACEUTICALS, INC. 
 AND 
 AZUR PHARMA INTERNATIONAL LIMITED 

 
  

Dated as of March 4, 2010 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE 1
	  	 DEFINITIONS; INTERPRETATION
	  			
			
	 1.1
	  	 Definitions
	  	 	1	  
			
	 1.2
	  	 Other Defined Terms
	  	 	10	  
			
	 1.3
	  	 Accounting Conventions
	  	 	12	  
			
	 1.4
	  	 Business Days
	  	 	12	  
			
	 1.5
	  	 Terminology
	  	 	12	  
			
	 ARTICLE 2
	  	 PURCHASE AND SALE OF ASSETS; ASSIGNMENT AND ASSUMPTION; CONSIDERATION
	  			
			
	 2.1
	  	 Purchase and Sale of Assets
	  	 	12	  
			
	 2.2
	  	 Assignment of Contracts, Product Registrations, Etc.
	  	 	12	  
			
	 2.3
	  	 Assumption of Liabilities
	  	 	13	  
			
	 2.4
	  	 Purchase Price
	  	 	13	  
			
	 2.5
	  	 Allocation of Consideration
	  	 	14	  
			
	 2.6
	  	 Royalties
	  	 	15	  
			
	 2.7
	  	 Right to Offset
	  	 	17	  
			
	 2.8
	  	 Reports and Audit
	  	 	17	  
			
	 2.9
	  	 Payments
	  	 	18	  
			
	 2.10
	  	 Transfers
	  	 	18	  
			
	 ARTICLE 3
	  	 CLOSING; DELIVERIES
	  			
			
	 3.1
	  	 The Closing
	  	 	19	  
			
	 3.2
	  	 Deliveries by Buyer
	  	 	19	  
			
	 3.3
	  	 Deliveries by Seller
	  	 	20	  
			
	 3.4
	  	 Buyer Designees
	  	 	20	  
			
	 ARTICLE 4
	  	 REPRESENTATIONS AND WARRANTIES OF SELLER
	  			
			
	 4.1
	  	 Corporate Organization; Authority
	  	 	20	  
			
	 4.2
	  	 Due Authorization
	  	 	20	  
			
	 4.3
	  	 No Violations; Consents and Approvals
	  	 	21	  
			
	 4.4
	  	 Material Contracts
	  	 	21	  
			
	 4.5
	  	 Compliance with Law
	  	 	22	  
			
	 4.6
	  	 Litigation
	  	 	22	  

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 4.7
	  	 Financial Information
	  	 	23	  
			
	 4.8
	  	 Absence of Certain Developments
	  	 	23	  
			
	 4.9
	  	 Taxes
	  	 	23	  
			
	 4.10
	  	 Rights in Acquired Assets; Sufficiency
	  	 	24	  
			
	 4.11
	  	 Intellectual Property
	  	 	24	  
			
	 4.12
	  	 Permits
	  	 	26	  
			
	 4.13
	  	 Inventory
	  	 	27	  
			
	 4.14
	  	 Regulatory Matters
	  	 	27	  
			
	 4.15
	  	 Product Liability
	  	 	29	  
			
	 4.16
	  	 Customers
	  	 	29	  
			
	 4.17
	  	 Labor and Employment Matters
	  	 	29	  
			
	 4.18
	  	 Employee Benefits Matters
	  	 	29	  
			
	 4.19
	  	 Environmental Matters
	  	 	30	  
			
	 4.20
	  	 Commercial Considerations
	  	 	30	  
			
	 4.21
	  	 Brokers and Finders
	  	 	31	  
			
	 4.22
	  	 Disclaimer of Other Representations
	  	 	31	  
			
	 ARTICLE 5
	  	 REPRESENTATIONS AND WARRANTIES OF BUYER
	  			
			
	 5.1
	  	 Corporate Organization; Authority
	  	 	32	  
			
	 5.2
	  	 Due Authorization
	  	 	32	  
			
	 5.3
	  	 No Violations; Consents and Approvals
	  	 	32	  
			
	 5.4
	  	 Litigation
	  	 	32	  
			
	 5.5
	  	 Brokers and Finders
	  	 	33	  
			
	 5.6
	  	 Financial Capability
	  	 	33	  
			
	 ARTICLE 6
	  	 ADDITIONAL AGREEMENTS
	  			
			
	 6.1
	  	 Efforts
	  	 	33	  
			
	 6.2
	  	 Conduct of Business
	  	 	33	  
			
	 6.3
	  	 Governmental and Other Consents and Approvals
	  	 	35	  
			
	 6.4
	  	 Public Announcements
	  	 	36	  
			
	 6.5
	  	 Access to Information; Cooperation
	  	 	36	  
			
	 6.6
	  	 Conduct of Business Following Closing
	  	 	36	  

  
 -ii-

 TABLE OF CONTENTS 

(continued) 
  

							
			
	 	  	 	  	Page	 
			
	 6.7
	  	 Employee Matters
	  	 	37	  
			
	 6.8
	  	 Fees and Expenses
	  	 	39	  
			
	 6.9
	  	 Confidentiality
	  	 	39	  
			
	 6.10
	  	 Satisfaction of Third Party Obligations
	  	 	40	  
			
	 6.11
	  	 Noncompetition
	  	 	40	  
			
	 6.12
	  	 Enforcement of Acquired Intellectual Property Rights
	  	 	41	  
			
	 6.13
	  	 Carve-Out Financials
	  	 	41	  
			
	 6.14
	  	 Transfer Taxes
	  	 	42	  
			
	 6.15
	  	 Withholding
	  	 	42	  
			
	 6.16
	  	 Cooperation on Tax Matters
	  	 	43	  
			
	 6.17
	  	 Adverse Event Reporting
	  	 	43	  
			
	 6.18
	  	 Further Assurances
	  	 	43	  
			
	 6.19
	  	 Assigned Contracts
	  	 	43	  
			
	 6.20
	  	 Leased Automobiles
	  	 	44	  
			
	 ARTICLE 7
	  	 CLOSING CONDITIONS
	  			
			
	 7.1
	  	 Conditions to the Obligations of Seller
	  	 	44	  
			
	 7.2
	  	 Conditions to the Obligations of Buyer
	  	 	45	  
			
	 ARTICLE 8
	  	 TERMINATION
	  			
			
	 8.1
	  	 Termination
	  	 	46	  
			
	 8.2
	  	 Procedure and Effect of Termination
	  	 	46	  
			
	 ARTICLE 9
	  	 INDEMNIFICATION
	  			
			
	 9.1
	  	 Survival
	  	 	47	  
			
	 9.2
	  	 Indemnification Obligation of Seller
	  	 	47	  
			
	 9.3
	  	 Indemnification Obligation of Buyer
	  	 	48	  
			
	 9.4
	  	 Third Party Claims
	  	 	49	  
			
	 9.5
	  	 Non-Third-Party Claims
	  	 	51	  
			
	 9.6
	  	 Payment
	  	 	51	  
			
	 9.7
	  	 Treatment of Indemnification Payments
	  	 	51	  
			
	 9.8
	  	 Limitations
	  	 	51	  
			
	 ARTICLE 10
	  	 GENERAL PROVISIONS
	  			

  
 -iii-

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	 10.1
	  	 Amendment and Modification
	  	 	52	  
			
	 10.2
	  	 No Implied Waivers
	  	 	52	  
			
	 10.3
	  	 Notices
	  	 	52	  
			
	 10.4
	  	 Assignment; Successors and Assigns
	  	 	53	  
			
	 10.5
	  	 Specific Performance
	  	 	54	  
			
	 10.6
	  	 JURISDICTION OF DISPUTES; WAIVER OF JURY TRIAL
	  	 	54	  
			
	 10.7
	  	 Governing Law
	  	 	54	  
			
	 10.8
	  	 Counterparts
	  	 	55	  
			
	 10.9
	  	 Severability
	  	 	55	  
			
	 10.10
	  	 Captions
	  	 	55	  
			
	 10.11
	  	 Construction
	  	 	55	  
			
	 10.12
	  	 Entire Agreement
	  	 	55	  
			
	 10.13
	  	 No Third Party Beneficiaries
	  	 	55	  

 SCHEDULES 

					
	Schedule 1	  	-	    	The Product
	Schedule A	  	-	    	Product Registrations and Permits
	Schedule B	  	-	    	Product Related Assets
	Schedule C	  	-	    	Toll-Free Telephone Numbers
	Schedule D	  	-	    	Certain Patents
	Schedule E	  	-	    	Trademarks; Copyrights
	Schedule F	  	-	    	Domain Names
	Schedule G	  	-	    	Marketing Materials
	Schedule H	  	-	    	Employees With Knowledge
	Schedule 2.2	  	-	    	Assigned Contracts
	Schedule 4.3	  	-	    	Conflicts; Consents
	Schedule 4.4(a)	  	-	    	Material Contracts
	Schedule 4.4(c)	  	-	    	Material Contract Defaults
	Schedule 4.7	  	-	    	Financial Information
	Schedule 4.8	  	-	    	Certain Developments
	Schedule 4.11(a)	  	-	    	Registered IP
	Schedule 4.11(j)	  	-	    	IP Encumbrances
	Schedule 4.12	  	-	    	Permits
	Schedule 4.13	  	-	    	Inventory
	Schedule 4.15	  	-	    	Product Liability Insurance
	Schedule 4.16	  	-	    	Certain Customers
	Schedule 4.17	  	-	    	Business Employees
	Schedule 4.18	  	-	    	Employee Benefit Plans

  
 -iv-

 TABLE OF CONTENTS 

(continued) 
  

					
	Schedule 4.20(e)	  	-	    	Changes in Ziconotide Coverage
	Schedule 6.7(a)	  	-	    	Business Employees Offered Employment
	Schedule 7.1(e)	  	-	    	Buyer Consents, Waivers and Approvals
	Schedule 7.2(c)	  	-	    	Seller Consents, Waivers and Approvals
			
	EXHIBITS	  		    	
			
	Exhibit A	  	-	    	Form of Transition Services Agreement

  
 -v-

 ASSET PURCHASE AGREEMENT 

This Asset Purchase Agreement (this “Agreement”) is entered into as of March 4, 2010 by and between Elan
Pharmaceuticals, Inc., a Delaware corporation (“Seller”) and Azur Pharma International Limited, a Bermuda limited company (“Buyer”). Buyer and Seller are each referred to herein as a “Party” and
collectively herein as the “Parties.” 
 WHEREAS, Buyer desires to acquire the Acquired Assets (as defined
herein) from Seller and its applicable Affiliates upon the terms and subject to the conditions set forth herein; 
 WHEREAS,
Seller desires to sell to Buyer such Acquired Assets upon the terms and subject to the conditions set forth herein; and 
 NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual representations, warranties, covenants and agreements hereinafter set forth, the Parties hereby agree as follows: 

ARTICLE 1 

DEFINITIONS; INTERPRETATION 
 1.1 Definitions. Capitalized terms used in this Agreement, unless otherwise defined, shall have the meanings set forth below: 

“Acquired Assets” shall mean all of Seller’s and its Affiliates’ right, title, and interest in and to
(a) the Marketing Materials, (b) the Acquired Intellectual Property, (c) Seller’s rights under the Assigned Contracts, (d) all Product Registrations and Permits held by Seller that relate solely or primarily to the Product,
including those set forth on Schedule A, (e) the Inventory, (f) all Books and Records, (g) any other tangible assets related solely or primarily to the Product, including those specified on Schedule B;
(h) the toll-free telephone numbers listed on Schedule C; and (i) all causes of action, judgments and claims or demands of whatever kind or description arising out of or relating solely or primarily to the Product or any of the
foregoing assets, other than any such causes of action, judgments, claims or demands that relate solely to events or conduct occurring prior to Closing. Notwithstanding any of the foregoing, the Acquired Assets shall not include the Excluded Assets.

 “Acquired Intellectual Property” shall mean all Intellectual Property Rights comprising, necessary, or used
solely or primarily in the manufacture, importation, sale, offering to sell, marketing, distribution, or use of, or otherwise relating or pertaining solely or primarily to the Product in the Territory that is owned by Seller, or its Affiliates, or
to which Seller or its Affiliates has any rights, including: 
 (i) to the extent owned or licensed by Seller or
its Affiliates, solely or jointly with any other Person, all patent applications (including divisionals, continuations, continuations-in-part, reissues, reexaminations, extensions, substitutions and abandoned applications that could be revived or
reinstated) and issued patents (including inventors’ certificates, reissues, reexaminations, lapsed or expired patents that could be reinstated or revived, extensions and other 

  
 1 

 
governmental actions which extend any of the subject matter of a patent, and any substitutions, confirmations, registrations or additions of or to any of the foregoing) which disclose or claim
inventions necessary or useful to the manufacture, importation, sale, offering to sell, marketing, distribution, or use of the Product, including those patents identified on Schedule D hereto; 

(ii) all trademarks, trade names, service marks, copyrights and domain names that relate solely or primarily to the
Product, including those identified on Schedule E hereto, including all registrations or applications for registrations thereof with Governmental Authorities or other Persons; 

(iii) all information, trade secrets, data, inventions and know-how, other than the Excluded Testing Know-How, that
relates solely or primarily to the Product and that is (A) owned or licensed by Seller or its Affiliates, solely or jointly with any other Person, and (B) necessary or useful to the manufacture, importation, sale, marketing, distribution
or use of the Product; and 
 (iv) all Internet domain names used solely or primarily in relation to the Product,
including those indentified on Schedule F hereto. 
 “Affiliate” shall mean, with respect to any
Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlled” and “controlling” have meanings
correlative thereto. 
 “ANDA” shall mean an Abbreviated New Drug Application, as filed by Buyer or its
Affiliates or any of their licensees with the FDA. 
 “Applicable Rate” shall mean, as of a particular date,
the rate of interest announced by JPMorgan Chase Bank, N.A., New York, New York, as its prime rate of interest on such date, as reported in The Wall Street Journal. 

“Assumed Liabilities” shall mean the following (and only the following) liabilities and obligations: (a) subject to
Section 2.2(b), all liabilities and obligations of Seller or its applicable Affiliates under the Assigned Contracts to the extent arising after and related solely to the period following the close of business on the Closing Date and
which do not constitute a liability or obligation relating to a breach under the Assigned Contracts prior to the Closing, other than Seller’s and its Affiliates’ accounts payable thereunder to the extent owing as of the close of business
on the Closing Date; (b) all liabilities of Seller or its applicable Affiliates under or in respect of the Product Registrations and other Permits included among the Acquired Assets, solely to the extent arising after and related to the period
following the Closing; and (c) all liabilities and obligations of Seller or its applicable Affiliates relating to the Acquired Intellectual Property and all other Acquired Assets to the extent such liabilities and obligations relate solely to
the period following the Closing. Notwithstanding any of the foregoing, the Assumed Liabilities shall not include the Excluded Liabilities. Anything to the contrary notwithstanding, 

  
 2 

 
except as otherwise expressly set forth in this Agreement, Buyer shall have no responsibility, liability or obligation hereunder, whether matured, unmatured, liquidated or unliquidated, fixed or
contingent, or known or unknown, with respect to the Product, the Acquired Assets or the Business pertaining to the period prior to the Closing Date, unless it is set forth in this definition. 

“Assumed Medtronic Agreements” shall mean the Contracts with Medtronic included among the Assigned Contracts.

 “Bill of Sale” shall mean a bill of sale and assignment and assumption agreement, in customary form
reasonably acceptable to both Parties, providing for the transfer of the Acquired Assets and the assignment and assumption of the Assumed Liabilities, in each case, in accordance with the terms and conditions of this Agreement. 

“Books and Records” shall mean the files (including all electronic data files), documents, correspondence, lists
(including customer lists), drawings and specifications, creative materials, marketing plans, studies (including market research and market data), clinical data, reports, regulatory dossiers and other printed or written materials solely or primarily
relating to the Product or the Business held by Seller or its Affiliates (in whatever form or medium), including (a) any correspondence with any Governmental Authority related to the use, development, marketing, distribution or sale of the
Product (including any information on adverse events, written contact regulatory reports and formal minutes with any Governmental Authority to the extent Seller or its Affiliates normally retains such records and minutes in the ordinary course of
its regulatory activities), (b) any documents solely or primarily relating to the Product Registrations or to the subject matter of the Product Registrations, (c) all financial books, records, statements or reports of Seller or its
applicable Affiliates to the extent such items relate solely or primarily to the Acquired Assets, except, in each case, to the extent included in or primarily related to any Excluded Assets or Excluded Liabilities and also excluding human resources
and other employee books and records and (d) all books and records relating to reimbursement, contracting, managed market activities and pricing of the Product.  
 “Business” shall mean the commercialization and sale of the Product in the Territory, in each case, as conducted by Seller and its Affiliates on the date hereof. 

“Business Day” shall mean any day on which banking institutions are not required or authorized to close in New York, New
York. 
 “Buyer FDA Letter” shall mean the letter from Buyer to the FDA, duly executed by Buyer,
to be delivered to Seller on the Closing Date, which shall be in customary form reasonably acceptable to both Parties. 
 “cGMP” shall mean current good manufacturing practices required by the FDCA. 
 “Change in Control” shall mean with respect to any Party, the acquisition by any “person” or “group” (as such terms are defined in Sections 13(d) and 14(d) of the
Exchange Act) of “beneficial ownership” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, in the aggregate of a majority of the total voting power of the outstanding Voting Stock of such Party.

  
 3 

 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 “Commercially Reasonable Efforts” shall mean efforts and resources used by a participant in the
pharmaceutical industry consistent with the prudent exercise of reasonable business judgment with respect to a product owned by it or to which it has rights, which is of similar market potential, at a similar stage in its product life, taking into
account, amongst other factors, reasonable sales projections, expected profit margins, the competitiveness of the marketplace (including the existence or prospect of generic competition), the proprietary position of the Product’s technology,
applicable regulatory impediments, and reimbursements available for the Product. 
 “Contracts” shall mean any
contract, agreement, indenture, note, bond, loan, instrument, lease, conditional sale contract, mortgage, license, insurance policy, or other agreement, whether written or oral. 

“Employee Benefit Plan” shall mean each “employee benefit plan” (as such term is defined in ERISA
Section 3(3)) and each other material employee benefit plan, program or arrangement maintained by Seller or to which Seller contributes for the benefit of employees of Seller. 

“Encumbrances” shall mean any lien, pledge, option, charge, easement, deed of trust, security interest, mortgage,
right-of-way, encroachment, encumbrance, restriction on transfer (such as a right of first refusal or other similar rights), defect of title, reversionary rights, or other similar right of any third party whether voluntarily incurred or arising by
operation of law, and includes any agreement to give any of the foregoing in the future, and any contingent sale or other title retention agreement or lease in the nature thereof. 

“Environmental Law” shall mean any Law and any orders, consent orders, judgments, notices, Permits or demand letters
issued, promulgated or entered pursuant thereto, concerning pollution or the protection of human health, safety and the environment, including, but not limited to, the federal Comprehensive Environmental Response, Compensation and Liability Act, the
Resource Conservation and Recovery Act, the Clean Air Act, the Clean Water Act, and the Occupational Safety and Health Act, each as amended. 
 “EPIL” shall mean Elan Pharma International Limited. 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 

“ERISA Affiliate” shall mean any Person that, together with Seller, would be deemed a “single employer” within
the meaning of Section 414 of the Code. 
 “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
 “Excluded Assets”
shall mean (w) all assets of Seller and its Affiliates other than the Acquired Assets, (x) all computers, related hardware, cellular phones, PDAs, smartphones and similar hardware, (y) in respect of or relating to the rights of Seller
and its Affiliates under the 

  
 4 

 
Amended and Restated Agreement for the Sale and Purchase of the European Prialt Assets dated as of March 20, 2006 among Eisai Co., LTD., Seller and certain Affiliates of Seller, and
(z) all accounts receivable relating to Product sold prior to the Closing Date. 
 “Excluded
Liabilities” shall mean all debts, obligations and other liabilities of Seller or its Affiliates not expressly included in the definition of “Assumed Liabilities.” Anything to the contrary herein notwithstanding, Excluded
Liabilities shall include all debts, obligations, claims and other liabilities relating to: (a) any liability or obligation of Seller or its applicable Affiliates under this Agreement or the other Transaction Documents; (b) any and all of
Seller’s or its applicable Affiliates’ accounts payable or other amounts legally owing by Seller or its Affiliates, as recorded under GAAP or otherwise; (c) all product liability claims involving the Product in respect of which the
occurrence giving rise thereto (and not the date of manufacture, distribution or sale of the Product involved nor the date such claims are made) took place prior to or on the 45th day following the Closing Date; (d) any outstanding principal, interest, fees and expenses borrowed or incurred
by Seller in respect of borrowed money, letters of credit, lines of credit and capital leases; (e) liabilities or obligations incurred by Seller or its Affiliates relating to Taxes; (f) obligations relating to any litigation or other
proceeding affecting Seller or its applicable Affiliates or any of the Acquired Assets or the Business if such liability, obligation or proceeding arose in respect of periods prior to the Closing Date; (g) except to the extent set forth in or
arising pursuant to the Transition Agreement, liabilities of Seller to any Affiliate of Seller (including, without limitation, any and all intercompany indebtedness); (h) all liabilities relating to any Employee Benefit Plan or any other plan,
program, or arrangement for providing compensation (including equity or other incentive compensation), severance or benefits to employees, former employees or independent contractors of Seller or its Affiliates; (i) liabilities and obligations
of Seller or its applicable Affiliates arising out of any actions or omissions of employees, consultants, independent contractors and experts in connection with the performance of services for Seller or its applicable Affiliates prior to the Closing
Date; (j) any costs or expenses incurred by Seller or any Affiliate of Seller incident to the negotiation and preparation of this Agreement (including, without limitation, any legal fees, placement fees, financial advisory fees or accountants
fees); (k) obligations or liabilities relating to any officers’ and directors’ liability insurance policy acquired or maintained for Seller’s directors and officers in respect of acts or omissions occurring prior to the Closing
Date; (l) liabilities with respect to real property, fixtures or equipment (other than the Acquired Assets); (m) any other liabilities of Seller or its applicable Affiliates relating to products other than the Product; (n) subject to
Section 2.2(b), all liabilities under any Assigned Contract or Product Registration incurred at any time prior to the Closing Date; (o) any and all liabilities or obligations of Seller or any of its Affiliates arising under or in
respect of agreements or arrangements not assumed by Buyer hereunder including (i) that certain License Agreement between Neurex Corporation and Warner-Lambert Company, entered into in May of 1993, as amended from time to time, and
(ii) that certain Joint Research and Product Development Agreement between Neurex Corporation and Ono Pharmaceutical Company Limited, dated as of June 1, 1991, as amended from time to time; (p) any financial obligations to Medtronic
arising under the Assumed Medtronic Agreements, in each case, as such Contracts are in effect immediately prior to Closing, other than the payment obligations arising after Closing pursuant to Sections 3.2.1 and 3.2.2 of that certain Purchase and
Assignment Agreement, dated as of January 29, 1999 among Seller, Elan Pharma International Limited and Medtronic, as amended, and any obligation that may arise thereunder as a result of Buyer’s or its Affiliate’s or assignee’s
breach thereof; and (q) any and 

  
 5 

 
all liabilities attributable to any violation or non-compliance by Seller or its Affiliates or their employees or agents with applicable export control or other Laws prior to Closing. 

“Excluded Testing Know-How” shall mean certain proprietary know-how relating to the binding testing assay utilized in
the testing of the Product in Seller’s Affiliate’s Athlone, Ireland facility, which shall be retained by Seller or its Affiliates following the Closing Date, but which shall be made available to Buyer subject to and in accordance with the
Testing Services Agreement. 
 “FDA” shall mean the U.S. Food and Drug Administration, or any successor entity
thereto. 
 “FDCA” shall mean the Federal Food, Drug and Cosmetic Act of 1938, as amended, together with the
rules and regulations promulgated thereunder. 
 “GAAP” shall mean generally accepted accounting principles in
the United States, as in effect from time to time. 
 “Governmental Authority” shall mean any federal, state,
local or foreign governmental, regulatory or administrative body, agency, department, board, commission or governmental entity, any court or judicial governmental entity, any securities exchange or market on which a Party’s or its
Affiliate’s securities are listed or are proposed to be listed, any public, private or industry regulatory governmental entity, whether federal, state, local, foreign or otherwise, or any Person lawfully empowered by any of the foregoing to
enforce or seek compliance with any applicable Law. 
 “Hospira” shall mean Hospira, Inc. and its applicable
Affiliates, successors and assigns. 
 “Intellectual Property Rights” shall mean, collectively: (a) all
patents and applications therefor (including all continuations, divisionals, continuations-in-part, reissue applications/requests and patents, reexamination applications/requests and reexamined patents, abandoned applications that could be revived
or reinstated, lapsed or expired patents that could be reinstated or revived, amended patents, and term-extended patents), registered trademarks and service marks and applications therefor, domain name registrations and copyright registrations and
applications therefor (collectively, “Registered IP”); (b) unregistered trademarks and service marks, trade names, domain names, trade dress, product configurations or other marks, names, logos and slogans embodying business or
product goodwill or indications of origin, all translations, adaptations, derivations and combinations thereof, and all goodwill associated with the businesses in which the foregoing are used; (c) inventions (whether patentable or unpatentable
and whether or not reduced to practice), discoveries, improvements, ideas, know-how, formulae, methodology, processes, and technology; (d) unregistered copyrights, designs, mask works or other expressions and works of authorship, all moral
rights and visual artists’ rights in relation to the foregoing and to registered copyrights and applications therefor, and databases and database rights; (e) proprietary, confidential and other non-public information, and the right in any
jurisdiction to limit the use or disclosure thereof (including technical information relating to development, design, manufacture, scheduling, installation, assembly or testing, trade secrets, secret processes and procedures, know-how, business and
financial information, and all 

  
 6 

 
confidential information of any nature); (f) all computer software and programs (excluding off-the-shelf commercially available systems and computer programs included in purchased or leased
equipment); and (g) any other similar property, whether or not embodied in tangible form (including but not limited to technical drawings and specifications, shop drawings, manuals, forms, working notes and memos, market studies,
consultants’ reports, technical and laboratory data, notebooks, samples and engineering prototypes). 

“Improvement” shall mean any and all improvements and enhancements, patentable or otherwise, related to the Product
including, without limitation, in the manufacture, formulation, ingredients, preparation, presentation, means of delivery or administration, dosage, indication, use or packaging of Product or its active ingredient. 

“Inventory” shall mean (i) all finished Product and Product samples held for sale or distribution in the Territory
by or on behalf of Seller or its Affiliates on the Closing Date and (ii) all active pharmaceutical ingredient and other raw materials and packaging materials held for use in or in respect of the Product by or on behalf of Seller or its
Affiliates on the Closing Date. 
 “Law” shall mean any federal, state, local or foreign law, statute,
constitution, ordinance, decree, requirement, code, order, judgment, settlement agreement, injunction, restriction, rule or regulation, including, but not limited to, the terms of any license or Permit issued by any Governmental Authority and
including the PhRMA Code on Interactions with Healthcare Professionals and any related or replacement industry code of conduct. 

“Loss” or “Losses” shall mean, subject to Section 9.8, any and all losses, liabilities,
costs, deficiencies, fines, damages, penalties and expenses (including reasonable legal and other professionals’ fees and expenses and litigation, settlement, investigation, judgment and enforcement costs). 

“Mallinckrodt” shall mean Mallinckrodt, Inc. and its applicable Affiliates, successors and assigns. 

“Marketing Materials” shall mean all advertising and promotional materials in physical form that are in Seller’s or
its Affiliates possession or held for their account as of the Closing Date and camera-ready artwork used or held for use in the Business, including the materials described on Schedule G hereto. 

“Material Adverse Effect” shall mean any event, development, change, condition, occurrence, circumstance or effect that
has materially and adversely affected or would reasonably be expected to materially and adversely affect (i) the business, assets, condition (financial or otherwise) or result of operations of the Business or (ii) the ability of Seller to
consummate the transactions contemplated by this Agreement; provided, however, that in no event will any of the following, individually or in the aggregate, be deemed to constitute, nor shall any of the following be taken into account
in determining whether there has been, or will be, a “Material Adverse Effect”: (a) any change in general economic or financial market conditions; (b) any change in the general state of the industry in which Seller operates;
(c) calamities or other acts of God or national or international political or social conditions, including the engagement by the United States in hostilities, whether or not pursuant to the

  
 7 

 
declaration of a national emergency or war, or the occurrence of any military or terrorist attack within or without the United States or Ireland; (d) changes in Law or GAAP or the
interpretation or enforcement thereof; or (e) the announcement of the execution of this Agreement or the transactions contemplated hereby or by the Transaction Documents. 
 “Medtronic” shall mean Medtronic, Inc. and its applicable Affiliates, successors and assigns. 
 “NDA” shall mean a New Drug Application, as filed with the FDA. 

“Net Sales” shall mean, for any period, the gross amount invoiced by Buyer or any of its Affiliates, licensees or
sublicensees (without double counting) during such period to third parties who are not Affiliates of Buyer or such licensees or sublicensees for sales of the Product, less provisions for the following: 

(i) trade and reasonable and customary cash discounts actually given, paid or allowed; 

(ii) returns, credits, refunds, rebates, chargebacks, wholesalers or distribution fees, retroactive price adjustments, and
any other substantially similar allowances which effectively reduce the net selling price; 
 (iii) bad debts, to
the extent actually incurred; 
 (iv) transportation and distribution charges or allowances, including freight
pickup allowances actually paid or incurred by Buyer, or any of its Affiliates, licensees or sublicensees (excluding amounts reimbursed by third party customers); and 

(v) any Tax (excluding taxes on income), excise, or other governmental charges upon or measured by the production, sale,
transportation, delivery or use of the Product actually paid by Buyer or any of its Affiliates, licensees or sublicensees. 

For purposes of this definition, “Product” shall also include any composition of matter which would meet the definition of
“Product” but for any jurisdictional limitations inherent in the definition of “Product” or other defined terms used therein (such as NDA and ANDA) to the extent such sales occur to or within any province or territory of Canada.

 In addition, “Net Sales” are subject to the following: 

If Buyer or any of its Affiliates, licensees or sublicensees, effects a sale, disposition or transfer of a Product to a customer other
than on customary commercial terms or as part of a package of products and services, the Net Sales of the Product to such customer shall be deemed to be the value that would have been derived had the Product been sold as a separate product to
another customer on customary commercial terms. In the case of pharmacy incentive programs, hospital performance incentive program chargebacks, disease management programs and the like or discounts on “bundles” of products, all discounts
and the like shall be allocated among products on the basis on which such discounts and 

  
 8 

 
the like were actually granted or, if such basis cannot be determined, in proportion to the respective list prices of such products. 

“Ordinary Course of Business” shall mean the ordinary course of the Business, consistent with past custom and practice.

 “Permits” shall mean all licenses, permits, franchises, approvals, authorizations, consents or orders of, or
filings with, any Governmental Authority, including all authorizations under the FDCA, and the regulations of the FDA promulgated thereunder and all applications for any of the foregoing. 

“Permitted Encumbrances” shall mean (i) Encumbrances for current Taxes not yet due and payable or for Taxes the
validity of which is being contested in good faith; (ii) carriers’, mechanics’, materialmen’s and similar Encumbrances for amounts not yet due which have arisen in the ordinary course of business; and (iii) Encumbrances
arising solely as a result of actions of Buyer. 
 “Person” shall mean an individual, partnership, corporation,
limited liability company, joint stock company, unincorporated organization or association, trust, joint venture, association or other organization, whether or not a legal entity, or any Governmental Authority. 

“Product” shall mean the prescription pharmaceutical product marketed under the name Prialt®, as more specifically
described on Schedule 1 hereto. References in this Agreement to “Product” with respect to periods following the Closing shall also include any Improvements to the Product as described on Schedule 1 hereto that may
be marketed under the same NDA as the Product as described on Schedule 1 from time to time, including any authorized generic version of the Product marketed under such NDA or any ANDA filed by Azur or its Affiliate. 

“Product Registrations” shall mean, collectively, the INDs, NDAs, and other product authorizations and
registrations and approvals held by Seller or that are pending before the FDA, or any other Governmental Authority with respect to the Product in the Territory, including those specified on Schedule A hereto.  

“Registered IP” shall have the meaning set forth in the definition of “Intellectual Property Rights”.

 “Royalty Year” shall mean, as applicable, (i) the period commencing on the twenty-four (24) month
anniversary of the Closing Date and ending on December 31, 2012, or (ii) any subsequent twelve-month period thereafter commencing on January 1 and ending on the next subsequent December 31. 

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

  
 9 

 “Seller FDA Letter” shall mean the letter from Seller to the
FDA, duly executed by Seller, to be delivered to Buyer on the Closing Date, which shall be in customary form reasonably acceptable to both Parties. 
 “Seller’s Knowledge” shall mean the actual knowledge, after good faith investigation of the applicable subject matter, of any employee of Seller or its Affiliates listed on
Schedule H or any other employee of Seller or its Affiliates having a title equal to or more senior than “Senior Vice President” and having material responsibilities in relation to the Product or the Business. 

“Tax Return” shall mean any return, declaration, report, claim for refund or information return or statement relating to
Taxes, including any schedule or attachment thereto, and including any amendment thereof. 
 “Taxes” shall mean
all taxes, charges, fees, duties, levies or other similar assessments in the nature of a tax, including (without limitation) income, gross receipts, net proceeds, ad valorem, turnover, real and personal property (tangible and intangible), sales,
use, franchise, excise, value added, stamp, user, transfer, fuel, excess profits, occupational, interest equalization, windfall profits, and employees’ income withholding, unemployment and Social Security taxes, which are imposed by the United
States, or any state, local or foreign government or subdivision or agency thereof, including any interest, penalties or additions to tax related thereto. 
 “Territory” shall mean the entire world with the exception of Austria, Belgium, the Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom, Norway, Iceland, Liechtenstein, Monaco, Switzerland, Romania, Bulgaria, Croatia and Turkey. 

“Testing Services Agreement” shall mean an agreement pursuant to which Seller or its Affiliates shall perform for Buyer
or its Affiliates or designee testing services in relation to the Product in a manner consistent with the manner in which such services are performed prior to Closing, which agreement shall be negotiated by the Parties in good faith prior to Closing
and shall be reasonably acceptable to both Parties in both form and substance. 
 “Transaction Documents” shall
mean this Agreement, the Transition Agreement, the Testing Services Agreement, the Bill of Sale, the IP Assignments, and the other agreements, documents, instruments, exhibits, annexes, schedules or certificates contemplated hereby and thereby.

 “Transactions” shall mean the transactions contemplated by the Transaction Documents. 

“Voting Stock” shall mean, with respect to any Person, the equity interest of such Person entitling the holders thereof
to vote in the election of members of the board of directors or equivalent governing body of such Person. 
 1.2 Other
Defined Terms. The following terms are defined in the sections indicated. 
  

			
	30-Month Anniversary	  	2.4(c)
	Agreement	  	Preamble

  
 10 

			
	Allocation Schedule	  	2.5
	Assigned Contracts	  	2.2(a)
	Audited Statements	  	6.13(c)
	Benefit Plans	  	4.18(a)
	Business Employees	  	4.17(a)
	Buyer	  	Preamble
	Buyer Employees	  	6.7(a)
	Buyer Indemnitee	  	9.2(a)
	Carve-Out Financial Statements	  	6.13(a)
	Closing	  	3.1
	Closing Date	  	3.1
	Closing Date Payment	  	2.4(a)(i)
	Competing Product	  	6.11
	Confidential Information	  	6.9(b)
	Contingent Payment	  	2.4(b)
	Coverage Period	  	6.7(b)
	Covered Terminated Buyer Employee	  	6.7(b)
	 De Minimus Amount
 Ex-US
Securities Laws
	  	 9.2(b)

6.13(a)

	Existing Confidentiality Agreement	  	6.9(a)
	Financial Information	  	4.7
	Generic Launch	  	2.4(c)
	Indemnification Cap	  	9.2(b)
	Indemnified Party	  	9.4(a)
	Indemnifying Party	  	9.4(a)
	Independent Arbiter	  	2.6(c)
	Material Contracts	  	4.4(a)
	Minimum Threshold	  	9.2(b)
	Net Sales Report	  	2.8(a)
	Outside Date	  	8.1(b)
	Parent	  	6.11
	Party	  	Preamble
	Product Liability Claim	  	4.15(a)
	PTO	  	4.11(f)
	Purchase Price	  	2.4
	Quarterly Payment	  	2.6(a)
	Restriction Period	  	6.11
	SEC	  	6.13(a)
	Seller	  	Preamble
	Seller Indemnitees	  	9.3(a)
	Specified Amount	  	9.2(b)
	Supply Transition	  	2.6(c)
	Supply Transition Costs	  	2.6(c)
	Third Party Claim	  	9.4(a)
	Total Supply Transition Costs	  	2.6(c)
	Transfer Taxes	  	6.14

  
 11 

			
	Transferee	  	2.10
	Transition Agreement	  	3.2(b)
	WARN Act	  	6.7(c)

 1.3 Accounting Conventions. Each accounting term used herein, including within the defined terms
herein, shall have the meaning that is applied thereto in accordance with GAAP, consistently applied. 
 1.4 Business
Days. Whenever the last day for the exercise of any privilege or the discharge of any duty hereunder shall fall upon any day which is not a Business Day, the party having such privilege or duty may exercise such privilege or discharge such duty
on the next succeeding Business Day. 
 1.5 Terminology. Unless otherwise indicated to the contrary herein by the context
or use thereof: (i) the words, “herein,” “hereto,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph hereof; (ii) the word
“including” shall mean “including, but not limited to”; (iii) masculine gender shall also include the feminine and neutral genders, and vice versa; (iv) words importing the singular shall also include the plural, and
vice versa; and (v) references to statutes shall include all regulations promulgated thereunder and references to statutes or regulations shall be construed as including any and all further statutory and regulatory provisions consolidating,
amending, expanding, implementing, or replacing the statute or regulation. 
 ARTICLE 2 

PURCHASE AND SALE OF ASSETS; 
 ASSIGNMENT AND ASSUMPTION; CONSIDERATION 
 2.1 Purchase and Sale of Assets.
On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from Seller, and Seller agrees to, and to cause its applicable Affiliates to, sell, transfer, convey, assign and deliver to Buyer, at the Closing, all of the
Acquired Assets for the consideration specified below in Section 2.4 and the assumption of the Assumed Liabilities by the Buyer. 
 2.2 Assignment of Contracts, Product Registrations, Etc. 
 (a) Without
limiting Section 2.1 hereof, subject to the terms and conditions of this Agreement, Seller will, or will cause its applicable Affiliate to, assign and transfer to Buyer, and Buyer will accept and assume from Seller, effective as of the
Closing Date, Seller’s right, title and interest in and to, all of the Contracts set forth on Schedule 2.2 hereto (all of the Contracts assigned, transferred and assumed hereunder are referred to collectively herein as the
“Assigned Contracts”), and all of the Product Registrations and other Permits included among the Acquired Assets. 
 (b) Anything in this Agreement to the contrary notwithstanding, this Agreement shall not constitute an agreement to assign or transfer any Contract, Product Registration or Permit or any claim or right or
any benefit or obligation thereunder or resulting therefrom if an assignment or transfer thereof, without the consent of a third party, would 

  
 12 

 
constitute a breach or violation thereof or is otherwise prohibited. If such a consent is required and has not been obtained, or if an attempted assignment or transfer is ineffective, Seller
shall use its commercially reasonable efforts to cooperate with Buyer in any reasonable and lawful arrangement requested by Buyer to provide for Buyer the benefits under any such Assigned Contract, Permit or Product Registration, with the expense of
any such arrangement to be borne by Buyer. 
 2.3 Assumption of Liabilities. On and subject to the terms and conditions
of this Agreement, Buyer agrees to assume and become responsible for all of the Assumed Liabilities at the Closing. Buyer will not assume or have any responsibility, however, with respect to any Excluded Liabilities. 

2.4 Purchase Price. The consideration payable by Buyer for the Acquired Assets shall be (i) *** (the “Purchase
Price”), payable subject to and in accordance with this Section 2.4 and (ii) the royalties to be paid in accordance with Section 2.6. 
 (a) The following one-time payments shall be made at the times specified below: 
 (i) US$5,000,000 (the “Closing Date Payment”) shall be paid on the Closing Date; 
 (ii) US$7,000,000 shall be paid on the first Business Day following the twenty-four (24) month anniversary of the Closing Date; and 

(iii) US$5,000,000 shall be paid on the first Business Day following the thirty (30) month anniversary of the Closing
Date. 
 For the avoidance of doubt, subject to clause (c) of this Section 2.4, the payments set forth in
clauses (i) through (iii) in Section 2.4(a) will be due and payable whether or not Buyer continues to market the Product. 
 (b) Subject to Section 2.7, the following one-time contingent payments (each, a “Contingent Payment”) shall be made subject to achievement of the following Net Sales
milestones: 
 (i) US$*** if Net Sales of the Product equal or exceed US$*** in a calendar year; 

(ii) US$*** if Net Sales of the Product equal or exceed US$*** in a calendar year; and 

(iii) US$*** if Net Sales of the Product equal or exceed US$*** in a calendar year. 

For purposes of this Section 2.4(b) Net Sales shall be determined based upon Net Sales actually achieved in a particular
calendar year. Each of the Contingent Payments contemplated 

  
  

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 13 

 
in clauses (i) through (iii) of this Section 2.4(b) shall be payable only once. Contingent Payments shall be paid, if at all, no later than April 30th of the year
following the calendar year in which the requisite level of Net Sales was achieved. 
 (c) Notwithstanding
Section 2.4(a), Buyer’s obligation to make the payment contemplated by Section 2.4(a)(iii) shall terminate and be of no further force or effect if either of the following shall occur on or prior to the date that is the
*** month anniversary of the Closing Date ***: (i) any Person other than the Buyer or its Affiliates or their licensees or sublicensees of the Product commences commercial sale of a generic version of the Product in the United States (a
“Generic Launch”) and in the first *** full calendar months after such Generic Launch, Net Sales of the Product in the U.S. are reduced by *** or more compared to the Net Sales amount in the prior *** months and by *** or more in
the second *** full calendar month period after such Generic Launch compared to the *** months prior to such Generic Launch; or (ii) any action or event occurs (which is not caused solely or primarily by, or attributable solely or primarily to,
any violation of applicable Law or gross negligence on the part of the Buyer or its Affiliates) that prevents or prohibits the sale or marketing of the Product and the occurrence of such action or event results in a *** or more reduction in Net
Sales of the Product in the U.S. in the *** month period following the date of such action or event compared to the *** month period prior to the date of occurrence of such action or event. In the event that a Generic Launch or any action or event
contemplated by the foregoing clause (ii) has occurred prior to the ***, but as of the *** it is not then possible to determine the applicable effects on Net Sales of such Generic Launch or such action or occurrence, then Buyer’s
obligation to make the payment contemplated by Section 2.4(a)(iii) shall be suspended until such time as the Net Sales over the applicable *** or *** period, as the case may be, are determined, whereupon either (x) Buyer shall make
such payment in the event that the relevant conditions contemplated by clause (i) or clause (ii) above have not been satisfied or (y) Buyer’s obligation to make the payment contemplated by Section 2.4(a)(iii) shall
terminate and be of no further force or effect if the relevant conditions contemplated by clause (i) or clause (ii) above have been satisfied. In addition, in the event that Buyer’s obligation to make the payment contemplated by
Section 2.4(a)(iii) is suspended in accordance with this Section 2.4(c), then the payment contemplated by Section 2.4(a)(iii) shall be deposited into an escrow account maintained by a third party escrow agent
mutually acceptable to the Parties hereto pursuant to an escrow agreement in a form reasonably satisfactory to the Parties hereto and which escrow agreement will provide for the release of such funds to the Buyer or Seller, as the case may be, in
accordance with the terms of this Section 2.4(c). Interest and other earnings earned on any amounts escrowed pursuant hereto shall be payable at the time such amounts are released to the Party to whom such funds are distributed in
accordance with the terms of this Section 2.4(c). The Parties shall share equally the fees owing to the escrow agent in respect of any such escrow. 
 2.5 Allocation of Consideration. Within 90 days after the Closing, Buyer and Seller shall mutually agree upon a schedule allocating the Purchase Price (including assumed liabilities) among the
Acquired Assets in accordance with Section 1060 of the Code and the regulations thereunder (the “Allocation Schedule”). In addition, within thirty (30) days following an indemnification payment made pursuant to
Article 9 or the payment of any Contingent Payment, the Parties shall amend the Allocation Schedule to the extent necessary to reflect such adjustment 

  
  

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	 or indemnification payment in accordance with the nature thereof. Each of the Parties agrees to (a) prepare and timely file all Tax Returns, in respect of
all affected taxable periods (or portions thereof), in a manner consistent with the Allocation Schedule, and (b) act in accordance with the Allocation Schedule for all Tax purposes, unless otherwise required by Law. Any unresolved disputes
regarding the Allocation Schedule, including any amendments thereto, shall be promptly submitted to a jointly-retained third party independent accounting firm for determination, which shall be final and binding on the Parties. The cost and expenses
of such third party independent accounting firm shall be borne equally by Buyer and Seller. Each of the Parties further agrees that a portion of each Contingent Payment shall be considered to be the payment of interest by Buyer to Seller for Tax
purposes in accordance with the requirements of the Code and the regulations promulgated thereunder.

 2.6 Royalties. 
 (a) Subject to Sections 2.6(b), 2.6(c) and 2.7, with respect to all sales made after the twenty-four month anniversary of the Closing Date, and during each Royally Year thereafter, Buyer
shall pay royalties to Seller in accordance with the following: 
 (i) Buyer shall pay Seller an amount equal to
***% of Net Sales of the Product in such Royalty Year up to and including aggregate Net Sales of US$***; and 

(ii) In the event that Net Sales of the Product in such Royalty Year exceed US$***, Buyer shall pay Seller an amount equal
to: 
 (A) ***% of Net Sales of the Product in such Royalty Year up to and including aggregate Net Sales of $***
(such payment to be due on all Net Sales up to such amount (and not solely Net Sales in excess of US$***)); provided that such amount owing pursuant to this clause (ii)(A) shall be reduced by the aggregate amount owing and/or paid pursuant to
the foregoing clause (i) of this Section 2.6(a) in respect of the same Royalty Year; 
 (B)
***% of Net Sales of Products in such Royalty Year in excess of US$*** and up to and including aggregate Net Sales of US$***; 
 (C) ***% of Net Sales of Products in such Royalty Year in excess of US$*** and up to and including aggregate Net Sales of US$***; and 

(D) ***% of Net Sales of Products in such Royalty Year in excess of US$***. 

Subject to any adjustments arising pursuant to Section 2.8(c), the amount of Buyer’s Net Sales of the Product shall be
determined on the basis of Buyer’s Net Sales Reports furnished pursuant to Section 2.8(a) hereof. Buyer shall make a royalty payment to Seller, not later than 

  
  

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 15 

 
sixty (60) days after the end of each calendar quarter (each such payment, a “Quarterly Payment”). 
 (b) Notwithstanding the foregoing, commencing on and continuing from and after the date of a Generic Launch, the royalty rates contemplated by Section 2.6(a) shall be reduced by ***%. Buyer
shall be entitled to reduce any future amount or amounts owing to Seller pursuant to this Section 2.6 by (i) the aggregate amount of all royalties and similar consideration that Buyer is obligated to pay to *** after *** anniversary
of the Closing Date pursuant to ***, as in effect on the Closing Date and (ii) the aggregate amount of all royalties and similar consideration that Buyer is obligated to pay any other third party at any time, in each case, in relation to the
Product by virtue of any arrangement agreed to by Seller or any of its Affiliates prior to Closing until such amounts have been fully set off; provided, however, that from and after the date the royalty rate contemplated by
Section 2.6(a) is reduced in accordance with the first sentence of this Section 2.6(b), then the amount of royalties due under Section 2.6(a) shall be reduced by only *** of the aggregate amount of all royalties
and similar consideration that Buyer is obligated to pay to *** pursuant to ***, as in effect on the Closing Date. 
 (c) The
Parties acknowledge that Buyer and its Affiliates are expected to incur significant out-of-pocket costs and third party expenses (collectively, “Supply Transition Costs”) attributable to or arising out of Buyer and/or its Affiliates
engaging new third parties in connection with the supply of finished Product and/or the active ingredient used therein to replace Hospira and/or Mallinckrodt, respectively, including any such costs associated with testing and regulatory acceptance
in relation thereto (the “Supply Transition”). In relation to such Supply Transition Costs, the Parties agree as follows: 
 (i) As soon as practicable after the date that is the second
(2nd) anniversary of the Closing Date, Buyer shall furnish
to Seller a written report setting forth a reasonably detailed summary of its and its Affiliates’ Supply Transition Costs incurred prior to such date, together with documentation for such Supply Transition Costs, and Buyer’s good faith
estimate of the total Supply Transition Costs that will be incurred by Buyer and its Affiliates through completion of the Supply Transition (the “Total Supply Transition Costs”). Seller shall be entitled to review Buyer’s
estimate of the Total Supply Transition Costs for a period of thirty (30) days after Buyer’s delivery of such report. If Seller agrees with Buyer’s estimate of the Total Supply Transition Costs or fails to notify Buyer in writing of any
disagreement therewith prior to the expiration of such thirty (30) day period, then Buyer’s estimate of the Total Supply Transition Costs shall be final and binding on the Parties for purposes of this Section 2.6(c). If, prior to the
expiration of such thirty (30) day period, Seller notifies Buyer in writing that it disagrees with Buyer’s estimate of the Total Supply Transition Costs and provides Buyer with Seller’s good faith written estimate of the Total Supply
Transition Costs, then the Parties shall discuss in good faith and endeavor to reconcile their respective estimates of the Total Supply Transition Costs for a period of not less than fifteen (15) Business Days. If the Parties are unable to agree
upon the Total Supply Transition Costs during such fifteen (15) Business Day period or during such longer period as they may mutually agree to, then the 

  
  

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Parties shall engage an independent expert in the pharmaceutical industry having expertise with the transitioning of product supply who is mutually acceptable to both Parties (the
“Independent Arbiter”). The Parties shall instruct such Independent Arbiter to review the facts relating to the Supply Transition, the Supply Transition Costs theretofore incurred by Buyer and its Affiliates and the Parties’
respective estimates of the Total Supply Transition Costs and instruct the Independent Arbiter to determine the Total Supply Transition Costs, which shall in any event not be lower than Seller’s estimate thereof or higher than Buyer’s
estimate thereof. The Total Supply Transition Costs agreed to by Buyer and Seller or determined by the Independent Arbiter, as applicable, shall be final and binding on the Parties for purposes of this Section 2.6(c). The fees and expenses of
the Independent Arbiter shall be shared equally by the Parties. 
 (ii) *** 

 
  
  

 
  
  

 
  
  

2.7 Right to Offset. Without limiting Buyer’s rights set forth elsewhere in this Agreement, Buyer shall have the right to set
off against any amount or amounts owing to Seller hereunder, including pursuant to Section 2.4 or 2.6, the amount of any Losses for which Seller has acknowledged liability or is obligated, as determined in a final judgment of a court
of competent jurisdiction, to indemnify Buyer pursuant to Section 9.2 hereof. Without limiting Seller’s rights set forth elsewhere in this Agreement, Seller shall have the right to set off against any amount or amounts owing to Buyer
under Article 9, any amounts which Buyer is obligated to pay to Seller pursuant to this Section 2 and which Buyer has failed to pay in accordance with the terms of this Section 2. 

2.8 Reports and Audit. 
 (a) Buyer shall report its Net Sales in respect of the Product (i) not later than April 30, 2011, in respect of Net Sales during the first calendar year ending after the Closing Date, (ii) not
later than April 30, 2012, in respect of Net Sales during the second calendar year ending after the Closing Date and (iii) within sixty (60) days following the end of each calendar quarter ending after the date that is twenty-four (24) months
following the Closing Date. Such reports (each, a “Net Sales Report”), shall be in writing certified by an authorized officer of Buyer and shall specify the Net Sales of the Product during the relevant year or quarter and include a
reasonably detailed calculation of such Net Sales and the royalties and/or Contingent Payment(s), if any, owing for the relevant period (including the exchange rates used in such calculations). 

  
  

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 17 

 (b) Buyer shall also provide a Net Sales Report for each twelve (12) month period referred
to in Section 2.4(c) within sixty (60) days following the end of each twelve (12) month period referred to in Section 2.4(c). Such Net Sales Report shall be in writing certified by an authorized officer of Buyer and shall
specify the Net Sales of the Product during the relevant year or quarter and include a reasonably detailed calculation of such Net Sales for the relevant period (including the exchange rates used in such calculations). 

(c) Buyer shall keep full, true and accurate books of account and supporting data containing all particulars that may be necessary for
the purpose of calculating Net Sales of the Product forming the basis for royalties and Contingent Payments payable to Seller under this Agreement. Such books and the supporting data shall be open, on ten (10) Business Days’ prior written
notice during normal business hours and in a manner so as not to unreasonably interfere with Buyer’s normal business operations, to the inspection by a firm of certified public accountants selected by Seller and reasonably acceptable to Buyer
who shall have executed appropriate confidentiality agreements, for the limited purpose of verifying Buyer’s Net Sales Reports; provided, however, that such examinations shall not take place more often than once during any twelve (12) month
period and shall not cover more than the preceding three (3) years. Except as otherwise provided in this Section 2.8(c), the cost of any such examination shall be paid by Seller. In the event that any such inspection reveals a deficiency
in excess of five percent (5%) of the reported royalty for the period covered by the inspection or would result in Buyer owing a Contingent Payment or a payment due under Section 2.4(a)(iii), Buyer shall promptly pay Seller the
deficiency, plus interest at a rate equal to the Applicable Rate as of the date on which such deficient amount was first due from the date first due until the date paid, and shall reimburse Seller for the fees and expenses paid to such accountants
in connection with such inspection. In the event that any such inspection reveals a deficiency that is less than or equal to five percent (5%) of the reported royalty for the period covered by the inspection, Buyer shall promptly pay Seller the
deficiency, plus interest at the Applicable Rate as of the date on which such deficient amount was first due from the date first due until the date paid. In the event that any such inspection reveals an overpayment of the required royalty, Seller
shall promptly refund such overpayment to Buyer. 
 2.9 Payments. All payments to be made by Buyer to Seller pursuant to
this Article 2 shall be made in U.S. Dollars in immediately available funds by wire transfer in accordance with wire instructions specified by Seller in writing. Seller shall specify such wire instructions in a written notice to Buyer
given not less than three (3) Business Days prior to the applicable payment date. 
 2.10 Transfers. Buyer shall not
sell, assign or otherwise transfer any material Acquired Intellectual Property Rights or any of the Product Registrations included among the Acquired Assets to any third party (each such third party, a “Transferee”), unless
(a) all amounts invoiced by such Transferee and its Affiliates, licensees and sublicensees are included in the definition of Net Sales hereunder or (b) prior thereto, such Transferee agrees in writing with the Seller to be subject to the
provisions of Sections 2.4(a), 2.4(b), 2.6 and 2.8 with respect to sales of Product attributable to such Transferee and its Affiliates, licensees and sublicensees. For purposes of this Section 2.10,
(i) the definition of Net Sales herein shall be deemed to refer solely to sales of Product by Transferee and its Affiliates, licensees and sublicensees and (ii) all Net Sales by Seller and its Affiliates, licensees and sublicensees and all
deemed Net Sales by all Transferees 

  
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and their Affiliates, licensees and sublicensees shall be aggregated for purposes of determining whether or not any threshold contemplated under Sections 2.4(c), 2.6 and 2.8
of this Agreement have been reached. 
 ARTICLE 3 
 CLOSING; DELIVERIES 
 3.1 The Closing. The closing of the sale and purchase
of the Acquired Assets and the assumption of the Assumed Liabilities (the “Closing”) shall take place at the offices of Mayer Brown LLP, 1675 Broadway, New York, NY 10019 on the date that is five (5) Business Days after
the date on which the conditions specified in Article 7 hereof have been satisfied, or at such other time or in such other location as the Parties may mutually agree, including via facsimile and/or email. The effective time of the
Closing shall be 5:00 pm, Eastern Daylight Time. At the Closing, the Parties will exchange the funds, certificates and other documents as specified in this Agreement. The date on which the Closing occurs is referred to herein as the
“Closing Date.” 
 3.2 Deliveries by Buyer. At the Closing, Buyer shall deliver or cause to be delivered
to Seller the following: 
 (a) the Closing Date Payment; 

(b) a counterpart to a Transition Services Agreement substantially in the form of Exhibit A hereto (the “Transition
Agreement”), duly executed on behalf of Buyer; 
 (c) a counterpart to the Testing Services Agreement, duly executed on
behalf of Buyer; 
 (d) a counterpart to the Bill of Sale, duly executed on behalf of Buyer; 

(e) a certificate, dated the Closing Date, of an executive officer of Buyer, certifying as to the satisfaction of the conditions set
forth in Sections 7.1(a) and 7.1(b); 
 (f) an incumbency certificate in customary form relating to each
person executing (as corporate officer or otherwise on behalf of another person) any Transaction Document executed by Buyer and delivered to Seller pursuant to the terms hereof; and 

(g) a certificate in customary form reasonably acceptable to the Parties, documenting the transfer of the Inventory and the Marketing
Materials as a sale made for the purpose of resale. 
 (h) the Buyer FDA Letter notifying the FDA of the transfer of the Product
Registrations contemplated thereby to Buyer. 

  
 19 

 3.3 Deliveries by Seller. At the Closing, Seller shall deliver to Buyer the
following: 
 (a) a counterpart of the Transition Agreement, duly executed on behalf of EPIL; 

(b) a counterpart of the Testing Services Agreement, duly executed on behalf of EPIL; 

(c) written evidence reasonably satisfactory to Buyer that the requisite consents have been obtained; 

(d) a counterpart to the Bill of Sale, duly executed on behalf of Seller; 

(e) the Seller FDA Letter, notifying the FDA of the transfer of the Product Registrations contemplated thereby to Buyer; 

(f) a certificate, dated the Closing Date, of an executive officer of Seller, certifying as to the satisfaction of the conditions set
forth in Sections 7.2(a) and 7.2(b); 
 (g) assignments of the Acquired Intellectual Property, in customary
form reasonably acceptable to the Parties and duly executed on behalf of Seller or its applicable Affiliate; and 
 (h) an
incumbency certificate in customary form relating to each person executing (as corporate officer or otherwise on behalf of another person) any Transaction Document executed by Seller or any of its Affiliates. 

3.4 Buyer Designees. At any time prior to the Closing Date, Buyer may designate one or more of its Affiliates not party to this
Agreement to participate in the purchase of any portion or all of the Acquired Assets; provided, that any such designation would not delay the Closing and does not require the procurement of any additional consents and provided,
further, that no such designation shall relieve Buyer of its obligations under this Agreement. 
 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF SELLER 
 Seller represents and warrants to Buyer that the following representations and warranties are true and correct as of the date of this Agreement and as of the Closing Date: 

4.1 Corporate Organization; Authority. Seller is a corporation duly organized, validly existing and in good standing under the
laws of Delaware and has all requisite corporate power and authority to conduct its business as it is now being conducted and to own, lease and operate the properties and assets it purports to own, lease or operate. 

4.2 Due Authorization. Seller has full corporate power and authority to execute and deliver this Agreement and the other
Transaction Documents to which it is a party and to consummate the transactions provided for herein and therein. The execution and delivery by 

  
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Seller of this Agreement and the other Transaction Documents to which it is a party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized
by all necessary corporate action on the part of Seller, and no other corporate proceedings on the part of Seller are necessary to authorize this Agreement or the other Transaction Documents to which it is a party or to consummate the transactions
contemplated hereby or thereby. This Agreement has been duly and validly executed and delivered by Seller, and, assuming this Agreement has been duly authorized, executed and delivered by Buyer, this Agreement constitutes a valid and binding
agreement of Seller, enforceable against Seller in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or specific) or other similar Laws now or hereafter in
effect relating to creditors’ rights generally. 
 4.3 No Violations; Consents and Approvals. Neither the execution
and delivery by Seller of this Agreement or the other Transaction Documents to which it is a party, nor the consummation of the transactions contemplated hereby or thereby, will (a) violate any applicable Law, (b) breach or violate any
provision of Seller’s or its Affiliates’ constituent documents, (c) except as set forth on Schedule 4.3 hereto, conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any
party a right to accelerate, terminate or modify or cancel, any Contract to which Seller or any of its Affiliates is a party or by which Seller or any of its Affiliates is bound, (d) result in the creation of any Encumbrance upon the Acquired
Assets, or (e) require any consent, waiver, approval, authorization of, Permit from, filing with, or notification to any Governmental Authority or any other Person on the part of Seller or its Affiliates, except as set forth on Schedule
4.3 hereto. 
 4.4 Material Contracts. 
 (a) Schedule 4.4(a) sets forth an accurate, correct and complete list of each Contract (collectively, the “Material Contracts”) in respect of or relating to the Business, the
Acquired Assets or the Assumed Liabilities, or Seller’s or its Affiliates’ operations in connection therewith which: 
 (i) relates to the research, development, conduct of clinical trials, supply, manufacture, testing, marketing, distribution or co-promotion of, or collaboration with respect to the Product, any active
ingredient or other raw material used therein or any device through which the Product is administered; 
 (ii)
has been entered into with any of the Business Employees; 
 (iii) restricts or purports to restrict Seller from
competing in any manner, or soliciting employees or consultants; 
 (iv) is a joint venture, partnership,
cooperative arrangement or any other Contract involving a sharing of profits; 
 (v) is a license, royalty or
other Contract relating to any continuing obligations, rights or interests of Seller or any other party thereto; 

(vi) vests in any third party any rights in any of the Acquired Assets; 

  
 21 

 (vii) is with a Governmental Authority; or 

(viii) includes a commitment to enter into any of the foregoing described in clauses (i) through (vii).

 (b) Correct and complete copies of each written Material Contract or summaries of each oral Material Contract, together with
any amendments thereto and any material correspondence to or from Seller or its applicable Affiliate relating thereto, have been made available or delivered by Seller to Buyer. 

(c) With respect to each of the Material Contracts, except as set forth in Schedule 4.4(c): (i) such Contract is legal,
valid, binding and enforceable against Seller or its applicable Affiliate and to Seller’s Knowledge, the other parties thereto, and is in full force and effect; (ii) Seller is not in material breach or default thereunder, and, to
Seller’s Knowledge, no other party to any such Contract is in material breach or default thereunder and, to Seller’s Knowledge, no event has occurred which with notice or lapse of time would reasonably be expected to constitute such a
material breach or default, or permit termination, modification, or acceleration, under such Contract; (iii) neither Seller nor its applicable Affiliate, nor, to Seller’s Knowledge, any other party to such Contract has repudiated any
material provision thereof and no such other party has given Seller any notice of its intention to terminate or not renew any such Contract or that it wishes to discontinue any of its material obligations thereunder; (iv) Seller or its
applicable Affiliate has performed, in all material respects, all requirements to be performed by it under such Contract; and (v) none of Seller nor any of its Affiliates has received any notice that it has violated, defaulted under or breached
such Contract. With respect to each Assigned Contract, assuming all requisite consents to assignment are obtained prior to the Closing, Buyer will have the same rights under such Assigned Contract from and after the Closing as Seller or its
applicable Affiliate has on the date hereof, and the consummation of the transactions contemplated by this Agreement will not impair any such rights in any material respect or otherwise prevent such Assigned Contract from continuing in full force
and effect without penalty or other material and adverse consequence following the Closing. 
 4.5 Compliance with Law.
Seller and its Affiliates have complied in all material respects with all Laws applicable to the Business, the Acquired Assets, the Assumed Liabilities, and Seller’s and its Affiliates’ operations in connection therewith, including the
Social Security Act, the rules and regulations and policies of the U.S. Department of Health and Human Services, and all public health and safety provisions of state Law. No action, suit, proceeding, hearing, investigation, charge, complaint, claim,
demand or notice has been filed or commenced against Seller or any of its Affiliates by any federal, state, local or foreign Governmental Authority in relation to the Product or the Business and, to Seller’s Knowledge, none of the foregoing has
been threatened. 
 4.6 Litigation. As of the date of this Agreement, there is no material action, suit or proceeding
pending before any court or Governmental Authority or arbitral body or, to Seller’s Knowledge, threatened, (a) against Seller or any of its Affiliates, and (b) which either (i) relates in any way to the Business, the Acquired
Assets, the Assumed Liabilities, Seller’s or its Affiliates’ operations in connection therewith, or the transactions contemplated hereby or the 

  
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events leading to the approval or execution of this Agreement, or (ii) could impair or delay Seller’s ability to consummate the transactions contemplated by this Agreement. 

4.7 Financial Information. Set forth on Schedule 4.7 are unaudited statements of gross revenues, gross to net
deductions, net revenues, costs of sales, gross margin, operating expenses, operating income, assets and liabilities for the fiscal years ended December 31, 2009 and 2008, with respect to the Acquired Assets and the Assumed Liabilities (the
“Financial Information”). The Financial Information was prepared in accordance with the books and accounts and other financial records of Seller and presents fairly in all material respects the gross revenues, gross to net
deductions, net revenues, costs of sales, gross margin, operating expenses, operating income, assets and liabilities attributable to the Acquired Assets and the Assumed Liabilities based on management’s reasonable assumptions as of and for the
periods indicated and such information has been prepared in accordance with GAAP, applied on a basis consistent with the past practices of Seller. There are no debts, liabilities or obligations with respect to the Acquired Assets or the Assumed
Liabilities or to which any of the Acquired Assets are subject, whether liquidated, unliquidated, accrued, absolute, contingent or otherwise, except for debts, liabilities or obligations set forth on the Financial Information or liabilities incurred
in the ordinary course of business which have not, individually or in the aggregate resulted in Material Adverse Effect. 

4.8 Absence of Certain Developments. Since December 31, 2009, except as set forth in Schedule 4.8,
(i) Seller and its Affiliates have operated the Business in all material respects in the Ordinary Course of Business; (ii) there has not been any change made by Seller or its Affiliates in their accounting practices relating to the
Business; (iii) there has not been any Encumbrance imposed or agreed to be imposed on or with respect to any of the Acquired Assets, other than Permitted Encumbrances; (iv) except for this Agreement, there has not been any agreement to
sell, lease or dispose of any of the Acquired Assets, other than sales of Inventory in the Ordinary Course of Business; (v) there has not been any material modification, waiver, change, amendment, release, rescission, accord and satisfaction or
termination of, or with respect to, any term, condition or provision of any Assigned Contract; (vi) there has not been any disposition or license of any Acquired Intellectual Property; (vii) there has not been any damage, destruction or
loss of any Acquired Asset, other than the sale of Inventory and ordinary wear and tear occurring in the Ordinary Course of Business; (viii) there has not been any notice or settlement of, or to Seller’s Knowledge, any threat from any
Person of commencement of or any service regarding the commencement of, any lawsuit or proceeding against Seller or any of its officers or directors with regards to or affecting the Acquired Assets or Assumed Liabilities; and (ix) no event has
occurred which has not resulted in a Material Adverse Effect. 
 4.9 Taxes. 

(a) Seller and its Affiliates have timely filed (or has had timely filed on its behalf) or will file or cause to be timely filed, all
federal and other material Tax Returns with respect to the Acquired Assets or the Business required by applicable Law to be filed by Seller or its Affiliates prior to or as of the Closing Date. All Taxes shown as due on such returns and other
filings have been or will have been paid. No deficiency or adjustment for any Taxes has been threatened, proposed, asserted or assessed in writing against Seller or any of its Affiliates in

  
 23 

 
relation to the Acquired Assets or the Business. There are no Encumbrances for Taxes upon the Acquired Assets, except for Encumbrances for current Taxes not yet due. 

(b) Seller is not a foreign person within the meaning of section 1445(f)(3) of the Code. 

4.10 Rights in Acquired Assets; Sufficiency. Seller and its applicable Affiliates have good title to all of the assets included in
the Acquired Assets free and clear of all Encumbrances, other than Permitted Encumbrances. At the Closing, Seller will, or will cause its applicable Affiliate to, convey to Buyer good and marketable title to and/or an enforceable right to use all of
the Acquired Assets (each of which is transferable or assignable to Buyer, subject to the receipt of any consents required in connection therewith), subject to Permitted Encumbrances. Except for the services to be provided under the Transition
Agreement and the Testing Services Agreement and the assets contemplated by clause (x) of the definition of Excluded Assets, the Acquired Assets constitute all of the assets, contracts, rights and services used to conduct the Business in the
ordinary course thereof and are sufficient for the conduct thereof following the Closing by Buyer in substantially the same manner in which the Business is currently conducted. Seller has or will have all necessary title and other rights as among
Seller and its Affiliates in order to perform the transactions contemplated by the Transition Agreement and the Testing Services Agreement or will cause its applicable Affiliates to perform as necessary thereunder. 

4.11 Intellectual Property. 
 (a) Schedule 4.11(a) sets forth, as of the date hereof, a complete and accurate list of all Registered IP included among the Acquired Intellectual Property. 

(b) Except as expressly stated in Schedule 4.11(a), all of the Acquired Intellectual Property is exclusively owned by Seller
or its Affiliates free and clear of all options, rights, licenses, restrictions, interests of any kind, and Encumbrances. Other than as expressly stated in Schedule 4.11(a), Seller and its applicable Affiliates have secured from all
consultants, employees, and other Persons who contributed to the creation invention or development of any Acquired Intellectual Property written assignments valid in the United States of their rights to their contributions and to the corresponding
Acquired Intellectual Property. Seller has duly recorded all assignments of the Acquired Intellectual Property in the United States. 
 (c) To Seller’s Knowledge, there are no claims pending or threatened with regard to the ownership by Seller or its Affiliates, or with regard to the licensing to or by Seller or its Affiliates, of
any of the Acquired Intellectual Property. Seller or its applicable Affiliate has the legal power to convey to a successor all of the ownership and license interests in the Acquired Intellectual Property set forth on Schedule 4.11(a)
(other than the ownership and license rights expressly identified in Schedule 4.11(a) as being held by another Person) and is not, and will not be, in breach of any license, sublicense, or other agreement relating to any of the Acquired
Intellectual Property as a result of Seller’s execution and delivery of this Agreement or the other Transaction Documents or the performance of Seller’s obligations hereunder or thereunder. 

  
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 (d) To Seller’s Knowledge, none of the Acquired Intellectual Property has been
infringed, is being infringed, has been misappropriated, or has been the subject of any unauthorized use or disclosure. To Seller’s Knowledge, there is no threatened or imminent infringement, misappropriation, or unauthorized use or disclosure
of any of the Acquired Intellectual Property. 
 (e) To Seller’s Knowledge, there are no claims pending or threatened that
any of the Acquired Intellectual Property or the practice thereof (including the development, manufacturing, use, importation, marketing, offering for sale, or sale of the Product in the United States) has infringed, is infringing, or will infringe
any Intellectual Property Rights of any other Person. To Seller’s Knowledge, there is no contractual, legal, or other restriction on the use of any of the Acquired Intellectual Property (including the development, manufacturing, use,
importation, marketing, offering for sale, or sale of the Product in the United States). The Product has not been offered for sale or sold in any country in the Territory other than the United States. 

(f) Except as expressly stated in Schedule 4.11(a), the patent applications within the Acquired Intellectual Property are
pending and have not been abandoned, and have been and continue to be timely prosecuted. Except as expressly stated in Schedule 4.11(a), all U.S. Registered IP within the Acquired Intellectual Property has been (or, with respect to
licenses, to Seller’s Knowledge, has been) duly registered and/or filed with or issued by the United States Patent and Trademark Office (the “PTO”) or the United States Copyright Office, as applicable, and all necessary
maintenance fees have been (or, with respect to licenses, to Seller’s Knowledge, have been) timely paid in the United States to continue all such rights in effect for the Acquired Intellectual Property. All of the jurisdictions within the
Territory in which the Registered IP has been registered or in which registration is pending are set forth on Schedule 4.11(a). Except as expressly stated in Schedule 4.11(a), none of the patents within the Acquired
Intellectual Property has (and no patents within the Acquired Intellectual Property that are licensed to Seller or its Affiliates have, to Seller’s Knowledge) expired, lapsed, been declared invalid (in whole or in part), or declared
unenforceable by the PTO or any court of competent jurisdiction in the United States. 
 (g) There are no ongoing interferences,
oppositions, protests, reissues, reexaminations or other proceedings involving any of the patents or patent applications within the Acquired Intellectual Property (or to Seller’s Knowledge, with respect to patents or patent applications
licensed to Seller or its Affiliates), including ex parte, inter partes and post-grant proceedings, in the PTO. To Seller’s Knowledge, there have been no public uses, disclosures to third parties not subject to confidentiality agreement,
publications, sales, or offers to sell of any inventions that are the subject of pending or issued patent claims within the Acquired Intellectual Property occurring prior to the date of application for patent. There are no patents, publications, or
other references or information (including inventions or activities by another Person) that, to Seller’s Knowledge, adversely affects the validity or enforceability of any pending or issued patent claims within the Acquired Intellectual
Property. Neither Seller nor any of its Affiliates has been informed by any Person, and to Seller’s Knowledge no other Person has alleged, that any patent, publication, or other reference or information (including any invention or activity by
another Person) adversely affects the validity or enforceability of any pending or issued patent claims within the Acquired Intellectual Property. 

  
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 (h) To Seller’s Knowledge, each of the patents and patent applications within the
Acquired Intellectual Property that are owned (in whole or in part) by Seller or its Affiliates properly identifies each and every inventor of the inventions claimed therein and do not identify any person as an inventor who is not correctly
identified as an inventor, as inventorship is determined in accordance with the Laws of the jurisdiction in which such patent is issued or such patent application is pending. To Seller’s Knowledge, no inventor named on any patent and patent
application within the Acquired Intellectual Property has any contractual or other obligation that would preclude or otherwise interfere with any assignment to Seller or its Affiliates (or, as to patents and applications within the Acquired
Intellectual Property that are licensed to Seller or its Affiliates, to the appropriate owner) or otherwise conflict with the obligations of such inventor to Seller or appropriate owners under such agreement with Seller, its Affiliate, or such
appropriate owners, as the case may be. 
 (i) To Seller’s Knowledge, all material prior art and information known to
Seller was disclosed to the PTO during the prosecution of the patents within the Acquired Intellectual Property in compliance with the duty of disclosure under United States patent law. Further, neither Seller nor any of its affiliates nor, to
Seller’s Knowledge, any officer, employee or agent of Seller or its Affiliates has made any untrue statement of a material fact or fraudulent statement or omission to the PTO regarding the subject of pending or issued patent claims within the
Acquired Intellectual Property. All statements made were true, accurate and complete in all material respects as of the date made, and to the extent required to be updated, as so updated, remain true, accurate and complete in all material respects.

 (j) Schedule 4.11(j) sets forth a complete and accurate list of all Contracts with respect to any options,
rights, licenses, restrictions, interests of any kind, or Encumbrances relating to the Acquired Intellectual Property (other than software licenses for generally available software), including any of the Acquired Intellectual Property that is
licensed to, licensed from, or partially- or jointly-owned by, a Person other than Seller. There are no such options, rights, licenses, restrictions, or interests of any kind relating to the Acquired Intellectual Property other than as set forth in
the agreements listed in Schedule 4.11(j). As to any Acquired Intellectual Property regarding which Seller is a joint- or co-owner with another Person, other than the contracts expressly identified in Schedule 4.11(j), Seller
or its Affiliates has entered into no agreements altering, restricting, or otherwise affecting Seller’s joint- or co-ownership rights of any jointly- or co-owned Acquired Intellectual Property. 

(k) Seller and its Affiliates have used commercially reasonable efforts to maintain its trade secrets and other confidential technical
information comprising or pertaining to the Acquired Intellectual Property in confidence, including entering into licenses and contracts that require licensees, contractors and other third Persons with access to such trade secrets to keep such trade
secrets and other confidential technical information confidential. Seller and its Affiliates have used commercially reasonable efforts to avoid any misuse or misappropriation of trade secrets and other confidential technical information of third
parties. 
 4.12 Permits. Schedule 4.12 sets forth a complete and accurate list of all Permits pertaining
solely or primarily to the Acquired Assets that Seller and its Affiliates have obtained. Such Permits are in full force and effect. To Seller’s Knowledge, (a) no material violations are or have been recorded in respect of any such Permit
by the entity that issued such Permit, and 

  
 26 

 
(b) no proceeding is pending or threatened, to suspend, revoke or limit any such Permit. Except as set forth in Section 6.3 and Schedule 4.3, no consent of any
Governmental Authority or other Person is required to transfer any material Permit included among the Acquired Assets to Buyer. 

4.13 Inventory. 
 (a) Schedule 4.13 sets forth the amount, kind (by SKU) and dating of the Inventory on hand as at February 24, 2010. The Inventory (i) was acquired or produced in the ordinary course,
(ii) has not been pledged as collateral or otherwise subjected to any Encumbrance, (iii) is not held on consignment, (iv) has been produced, labeled and stored in accordance with cGMP and all applicable Laws and specifications and in
the ordinary course, (v) is in good, saleable and useable condition, (vi) except as set forth on Schedule 4.13, as of the date of this Agreement, the Inventory set forth thereon has a minimum remaining shelf life of ten
(10) months. All Inventory has been tested in accordance with established protocol sufficient to release the Product for sale in the United States in accordance with applicable Law. 

(b) Based on average weekly sales rates (demand) in the last fiscal quarter of 2009, the amount of inventory of Product held by
distributor(s) to which Seller directly supplies the Product for resale in the United States does not exceed 2 weeks’ aggregate demand. In addition, to Seller’s Knowledge, during the six (6) months prior to the date of this Agreement,
no distributor, wholesaler or compounding pharmacy has materially altered its sales and distribution practices in relation to the Product outside the Ordinary Course of Business. 

(c) The finished Product comprising Inventory is located in McPherson, Kansas and Memphis, Tennessee; the active ingredient comprising
the Inventory is located in King of Prussia, Pennsylvania and McPherson, Kansas. 
 4.14 Regulatory Matters. 

(a) Schedule A sets forth a complete list of the Product Registrations. The Product has been marketed, distributed, labeled,
developed and tested in accordance with the specifications and standards contained in the applicable Product Registrations and has otherwise been manufactured, distributed, labeled, developed and tested in accordance with all applicable Laws. Except
as set forth on Schedule 4.3, the Product Registrations that have been granted are in full force and effect and no consent of any Governmental Authority is required in connection with the transfer of any Product Registrations pursuant to
the transactions contemplated hereby. To Seller’s Knowledge, with respect to the Product, the applicant of each Product Registration relating to the Product acted in compliance with 21 U.S.C. § 355 and 21 C.F.R. Parts 312 or 314 et seq.,
respectively, and all terms and conditions of such applications. None of Seller or its Affiliates has received written notice from any Governmental Authority that there are any circumstances currently existing that would reasonably be expected to
lead to any withdrawal of, loss of or refusal to renew any material Permit or Product Registration on terms less advantageous to Seller or any of its Affiliates than the terms of those Permits currently in force. 

(b) Seller has not received any written notice or other written communication, and to Seller’s Knowledge has not received any other
notice or communication, from the FDA or any other U.S. Governmental Authority (i) contesting the approval of, the uses of or the labeling 

  
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or promotion of the Product or (ii) otherwise alleging any violation by Seller of any applicable Law in connection with the Product, or (iii) asserting that any of the U.S. Product
Registrations are not currently in good standing with the FDA or any equivalent foreign Governmental Authority in the country or countries of its jurisdiction. 
 (c) With respect to current suppliers, Seller has delivered to Buyer copies of all (i) reports of the FDA Form 483 inspection observations, (ii) establishment inspection reports,
(iii) warning letters, and (iv) other documents that assert ongoing lack of compliance in any material respect with any applicable Laws (including those of the FDA), received by Seller or its Affiliates from the FDA or any equivalent
foreign Governmental Authority relating to the Product and/or arising out of the conduct of the Business. 
 (d) All serious
adverse event reports related to the Product have been submitted to the FDA and, to Seller’s Knowledge, no circumstances exist for which any other serious adverse event reports would reasonably be expected to be submitted. There have been no
recalls, field notifications or seizures ordered or threatened or any adverse regulatory actions taken or threatened by the FDA or any other U.S. Governmental Authority with respect to the Product, including any facilities where Product is produced,
processed, packaged, or stored. Seller has not, either voluntarily or at the request of any Governmental Authority, initiated or participated in a recall of Product or provided any post-sale warnings regarding the Product. 

(e) Neither Seller nor any of its Affiliates nor, to Seller’s Knowledge, any officer, employee or agent of Seller or its Affiliates
has made any untrue statement of a material fact or fraudulent statement or omission to the FDA or other U.S. Governmental Authority regarding the Product. Seller or its Affiliates have filed with the FDA all required notices, supplemental
applications and annual or other reports, including adverse experience reports, with respect to each Product Registration relating to the Product. All filings with and submissions to the FDA made by Seller regarding the Product were true, accurate
and complete in all material respects as of the date made, and to the extent required to be updated, as so updated, remain true, accurate and complete in all material respects. 

(f) None of the employees of Seller or its Affiliates or, to Seller’s Knowledge, any manufacturer of the Product, have been
disqualified or debarred by the FDA for any purpose, or have been charged with or convicted under the U.S. federal law for conduct relating to the development or approval, or otherwise relating to the regulation, of any drug product under the
Generic Drug Enforcement Act of 1992, the FDA Act or any other relevant Law. 
 (g) To Seller’s Knowledge, all
manufacturing and processing operations conducted by their current suppliers relating to the manufacturing of the Product have at all times been conducted in compliance with cGMP. 

(h) All clinical trials conducted in respect of the Product were conducted in accordance with applicable Law and good clinical practices
in the United Sates and in such other jurisdictions in the Territory in which such trials were conducted. 

  
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 4.15 Product Liability. 

(a) No material claims have been made against Seller or its Affiliates or their insurers alleging any personal injury, death or economic
damages, punitive or exemplary damages, contribution or indemnification, or any material defects in the Product, or alleging any material failure of Product or the marketing thereof to meet the requirements of applicable Laws (any such claim, a
“Product Liability Claim”) and, to Seller’s Knowledge, no such claim has been threatened. No payment or settlement of any kind has been made in response to or in anticipation of any such claim. 

(b) Schedule 4.15 describes the current product liability insurance held by Seller with respect to the Product as of the date
hereof. 
 4.16 Customers. Seller has used reasonable diligent efforts to maintain, and, as of the date of this
Agreement, currently maintains, good working relationships with all of the customers, processors and suppliers of the Product or any active ingredient, raw material, packaging, labeling or equipment used in or in respect of the Product. Schedule
4.16 specifies for the year ended December 31, 2009 the names of the customers that were, in the aggregate, the ten (10) largest customer accounts in terms of dollar value of Product sold by the Business during such year. None of such
customers has given Seller notice terminating or indicating their intent to terminate or cancel, or threatening to terminate or cancel, any contract or relationship with Seller relating to the Business or to materially reduce their purchases of the
Product. 
 4.17 Labor and Employment Matters. 
 (a) Schedule 4.17 lists as of the date hereof employees whose employment is primarily or exclusively associated with the Business (the “Business Employees”). Seller has provided
Buyer a statement identifying each such Business Employee’s job title, current rate of pay, any and all commissions, bonuses or other compensation arrangements, and leave status. 

(b) There are no collective bargaining agreements involving any Business Employees or any pending applications for certification of a
collective bargaining unit. There is no labor strike, material dispute, slowdown or stoppage actually pending or, to Seller’s Knowledge, threatened against or involving the Business. 

(c) Except as has not resulted in a Material Adverse Effect, there are no claims, actions, investigations, proceedings or other
litigation pending, or to Seller’s Knowledge, threatened against Seller or any Business Employee based on any alleged violation of applicable labor and employment Laws, including but not limited to those relating to collective bargaining, wages
and hours, non-discrimination, leaves of absence, workers’ compensation, safety and health , immigration or income tax. 

4.18 Employee Benefits Matters. 
 (a) Schedule 4.18 contains a correct and complete list of each “employee benefit plan,” as that term is defined in Section 3(3) of ERISA, and each bonus, incentive, commission,
deferred compensation, employment, severance, termination, retention, change of control, equity-based performance or other compensation or benefit plan, agreement or 

  
 29 

 
arrangement, written or unwritten (other than stock option plans and plans providing benefits of immaterial value to Business Employees), in each case (i) in which any Business Employee
participates, or (ii) with respect to which any Business Employee receives or may receive compensation or benefits (collectively, “Benefit Plans”). 
 (b) Seller has provided or made available to Buyer a copy of each Benefit Plan or, in the case of any unwritten Benefit Plan, a description of the material provisions of such Benefit Plan. 

(c) Except as has not resulted in a Material Adverse Effect, each Benefit Plan has been operated and administered in all material
respects in accordance with its terms and with all applicable provisions of ERISA (if applicable), the Code and all other Applicable Laws. 
 (d) No liability under Title IV or Part 3 of Title I, Subtitle B of ERISA or Section 4971 of the Code has been incurred or is reasonably be expected to be incurred by Seller or any ERISA Affiliate
for which Buyer would be liable under applicable Law as a result of the transactions contemplated by this Agreement. 
 4.19
Environmental Matters. To Seller’s Knowledge and/or except as has not resulted in a Material Adverse Effect: 
 (a)
Neither Seller nor any of its Affiliates is in violation, or alleged to be in violation, of any Environmental Law, including with respect to any location or facility at which the Product is manufactured or stored; 

(b) Neither Seller nor any of its Affiliates has received any written notice, complaint, order, directive, demand, request for
information, claim or citation from any third party, including, without limitation, any federal, state or local Governmental Authority, indicating or alleging that Seller or any of its Affiliates or any predecessor thereof may have any material
liability or obligation under any Environmental Law arising out of or relating to the Business or the Acquired Assets, including with respect to any location or facility at or to which the Product is stored, manufactured or shipped; 

(c) There are no liabilities of Seller or any of its Affiliates under any Environmental Law relating to the Business or the Acquired
Assets and there is no condition, occurrence, activity or circumstance that would reasonably be expected to result in or be the basis for any such liabilities; 
 (d) Neither Seller nor any of its Affiliates is conducting or paying, in whole or in part, for any investigation, response, or other corrective action under any Environmental Law at any location or
facility arising out of or relating to the Business or the Acquired Assets; and 
 (e) Neither Seller nor any of its Affiliates
has retained or assumed, either contractually or by operation of law, any liabilities or obligations under any Environmental Law at any location or facility arising out of or relating to the Business or the Acquired Assets. 

4.20 Commercial Considerations. 

  
 30 

 (a) No Person has commenced the commercial sale, no abbreviated new drug application has
been filed or approved and, to the Seller’s Knowledge, none of the foregoing is pending or threatened, in each case, with respect to any generic competitor of the Product and to Seller’s Knowledge, no Person is currently developing any
generic competitor of the Product for sale anywhere in the Territory. 
 (b) To Seller’s Knowledge, no change in
ziconotide’s clinical status as a “Level 1” therapy has been made or proposed by the Polyanalgesic Consensus Conference or any similar standard setting organization. 

(c) Medtronic has not given any notice, or expressed any intention, whether formal or informal, to Seller or, to Seller’s Knowledge,
any other Person, that the use of ziconotide should be discontinued in connection with Medtronic’s intrathecal pump products for any reason. 
 (d) To Seller’s Knowledge, there is no pending or proposed discontinuation, for medical, safety, commercial or other reasons of the Medtronic intrathecal pump products or the use of ziconotide in
such pumps. 
 (e) Except as set forth on Schedule 4.20(e), to Seller’s Knowledge, there is no discontinuance of, or
any material change in, payor coverage or reimbursement prices, for ziconotide, including by Medicare, the U.S. Veterans’ Administration and commercial payors since March 1, 2009. 

4.21 Brokers and Finders. Neither Seller nor any of its Affiliates or their respective officers, directors or employees has
employed any broker or finder or incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this Agreement. 

4.22 Disclaimer of Other Representations. 
 (a) SELLER HAS NOT MADE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER RELATING TO SELLER OR ANY OF ITS SUBSIDIARIES OR AFFILIATES OR THE BUSINESS OF SELLER OR ANY OF ITS
SUBSIDIARIES OR AFFILIATES OR OTHERWISE IN CONNECTION WITH THE TRANSACTIONS, OTHER THAN THOSE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE 4. 
 (b) Without limiting the generality of clause (a) above, except as expressly set forth in this Article 4, neither Seller nor any of its representatives has made, and shall not be deemed to
have made, any representations or warranties in the materials relating to the business of Seller and its Subsidiaries made available to Buyer and its representatives, including due diligence materials, or in any presentation of the business of
Seller and its Subsidiaries by management of Seller or others in connection with the Transactions, and no statement contained in any of such materials or made in any such presentation shall be deemed a representation or warranty hereunder or
otherwise or deemed to be relied upon by Buyer in executing, delivering and performing this Agreement and the Transactions. Except as expressly set forth in this 

  
 31 

 
Article 4, it is understood that any cost estimates, projections or other predictions, any data, any financial information or any memoranda or offering materials or presentations are not
and shall not be deemed to be or to include representations or warranties of Seller, and are not and shall not be deemed to be relied upon by Buyer in executing, delivering and performing this Agreement and the Transactions. Anything to the contrary
herein notwithstanding, the foregoing shall in no way limit Seller’s liability for fraud committed on the part of Seller or its representatives. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF BUYER 

Buyer represents and warrants to Seller that the following representations and warranties are true and correct as of the date of this
Agreement and the Closing Date: 
 5.1 Corporate Organization; Authority. Buyer is a limited liability company duly
organized and validly existing under the laws of Bermuda and has all requisite corporate power and authority to conduct its business as it is now being conducted and to own, lease and operate the properties and assets it purports to own, lease and
operate. 
 5.2 Due Authorization. Buyer has full corporate power and authority to execute and deliver this Agreement and
the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Buyer of this Agreement and the other Transaction Documents to which it is a party and the
consummation of the transactions contemplated hereby and thereby have been duly and validly authorized, and no other corporate proceedings on the part of Buyer are necessary to authorize the execution and delivery of this Agreement and the other
Transaction Documents to which it is a party or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by Buyer and, assuming this Agreement has been duly authorized, executed and
delivered by Seller, constitutes the valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium (whether general or
specific) or other similar Laws now or hereafter in effect relating to creditors’ rights generally. 
 5.3 No
Violations; Consents and Approvals. Neither the execution and delivery by Buyer of this Agreement or the other Transaction Documents to which it is a party, nor the consummation of the transactions provided for herein or therein, will
(a) violate any applicable Law, (b) breach or violate any provision of its constituent documents, (c) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party a right to
accelerate, terminate or modify or cancel, any Contract to which it is a party or by which it is bound, or (d) require any consent, waiver, approval, authorization of, Permit from, filing with, or notification to any Governmental Authority or
any other Person on the part of Buyer, except as contemplated by Section 6.3(b). 
 5.4 Litigation. As of the
date of this Agreement, there is no material action, suit or proceeding pending before any court or Governmental Authority or arbitral body, or, to the 

  
 32 

 
knowledge of Buyer, threatened, against Buyer which could impair or delay Buyer’s ability to consummate the transactions contemplated by this Agreement. 

5.5 Brokers and Finders. Neither Buyer nor any of its officers, directors or employees has employed any broker or finder or
incurred any liability for any investment banking fees, brokerage fees, commissions or finders’ fees in connection with the transactions contemplated by this Agreement. 
 5.6 Financial Capability. Buyer has, and at the Closing Date will have, sufficient unrestricted internal funds available and on hand to pay the Closing Date Payment and any expenses incurred by
Buyer in connection with the Transactions. 
 ARTICLE 6 
 ADDITIONAL AGREEMENTS 
 6.1 Efforts. Subject to the terms and conditions
herein provided, each of Seller and Buyer agrees to use commercially reasonable efforts and act in good faith to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make
effective as promptly as practicable the transactions contemplated by this Agreement, to cause each of the conditions set forth in Article 7 to be satisfied and to cooperate in connection with the foregoing. 

6.2 Conduct of Business. 
 (a) Except as may otherwise be contemplated by this Agreement or required by Law or as Buyer may otherwise consent to in writing (which consent shall not be unreasonably withheld, delayed, or
conditioned), from the date hereof and prior to the Closing, Seller will, and will cause its applicable Affiliates to, operate the Business in all material respects in the Ordinary Course of Business and shall use its commercially reasonable efforts
to the end that none of the Acquired Assets shall be impaired at the Closing. Without limiting the generality of the foregoing, Seller shall not, nor shall Seller permit any of its Affiliates to, do any of the following without the prior written
consent (which consent shall not be unreasonably withheld, delayed, or conditioned) of Buyer, except to the extent expressly contemplated hereby or by any other Transaction Document: 

(i) sell, lease, license, pledge, grant, encumber or otherwise dispose of or transfer any of the Acquired Assets, except
for Marketing Materials and the sale of Inventory in the Ordinary Course of Business; 
 (ii) fail to maintain
the Acquired Assets according to the standards it has maintained in the Ordinary Course of Business, subject only to ordinary wear and tear (as applicable); 
 (iii) institute or settle any legal proceeding involving the Product or the Acquired Assets or which would reasonably be expected to affect the Assumed Liabilities; 

  
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 (iv) waive or release any material right or claim related primarily to the
Business or affecting any of the Acquired Assets or the Assumed Liabilities; 
 (v) increase or change the
compensation or benefits for the Business Employees other than in the Ordinary Course of Business; 
 (vi) amend
or terminate any Material Contract included among the Assigned Contracts; 
 (vii) enter into any licensing or
distribution, or other similar Contract in respect of the Acquired Assets or Assumed Liabilities; 
 (viii)
commence or enter into any material marketing, sponsorship, advertising, merchant program or other similar Contract in respect of the Acquired Assets or Assumed Liabilities; 

(ix) commence or provide special promotional activities or special discounts in respect of the Acquired Assets or Assumed
Liabilities; 
 (x) make or change any election in respect of accounting or Taxes affecting the Business,
Acquired Assets or Assumed Liabilities, change any annual accounting period, adopt or change any accounting method or principle in respect of the Business, Acquired Assets or Assumed Liabilities, file any amended Tax Return containing amendments
relating to the Business, Acquired Assets or Assumed Liabilities, enter into any closing agreement affecting the Business, Acquired Assets or Assumed Liabilities, settle any claim for Taxes or assessment relating to the Business, Acquired Assets or
Assumed Liabilities, surrender any right to claim refund of Taxes relating to the Business, Acquired Assets or Assumed Liabilities, consent to any extension or waiver of the limitation period applicable to any claim for Taxes or assessment relating
to the Business, Acquired Assets or Assumed Liabilities, or take any other action or omit to take any action that, with respect to each of the foregoing, could reasonably be expected to have the effect of increasing the liability of Buyer for Taxes
(or Seller for Taxes to the extent such liability relates to the Business, Acquired Assets or Assumed Liabilities, or the transactions contemplated by this Agreement); 

(xi) (A) sell, assign, lease, terminate, abandon, transfer, permit to be encumbered or otherwise dispose of or grant any
security interest in and to any item of Acquired Intellectual Property, in whole or in part, (B) grant any license with respect to any Acquired Intellectual Property, (C) develop, create or invent any Acquired Intellectual Property jointly
with any third party, or (D) disclose, or allow to be disclosed, any confidential Acquired Intellectual Property, unless such Acquired Intellectual Property is subject to a confidentiality or non-disclosure covenant protecting against
disclosure thereof in a form reasonably acceptable to Buyer; or 

  
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 (xii) agree in writing or otherwise to take any of the actions described in
subsections (i) through (ix) above, or any action which is reasonably likely to make any of Seller’s representations or warranties contained in this Agreement untrue or incorrect in any material respect on the date made (to the extent
so limited) or as of the Closing Date. 
 (b) Notifications. Seller shall notify Buyer in writing promptly after learning
of any claim, action, suit, arbitration, mediation, proceeding or investigation by or before any court, arbitrator or arbitration panel, board or other Governmental Authority initiated by it or against it and relating to the Business or the Acquired
Assets, or that is, to Seller’s Knowledge, threatened and relating to the Business or the Acquired Assets. Seller shall also give prompt notice to Buyer of (i) the occurrence, or non-occurrence, of any event the occurrence, or
non-occurrence, of which would be likely to cause (x) any representation or warranty contained in this Agreement to be untrue or inaccurate in any material respect or (y) any covenant, condition or agreement contained in this Agreement not
to be complied with or satisfied in any material respect; and (ii) any failure or inability of Seller to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; provided,
however, that the delivery of any notice pursuant to this Section 6.2(b) shall not limit or otherwise affect the remedies available hereunder to Buyer. Seller shall further give prompt notice to Buyer of any material developments
affecting the Business, the Acquired Assets or the Assumed Liabilities. 
 6.3 Governmental and Other Consents and
Approvals. 
 (a) The Parties shall use commercially reasonable efforts to obtain any requisite approvals and authorizations
that may be required for the transactions contemplated by this Agreement under all applicable requirements of antitrust, competition or other similar laws, rules, regulations and judicial doctrines designed or intended to prohibit, restrict or
regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition through merger or acquisition. 
 (b) Seller shall use commercially reasonable efforts to apply for and obtain as soon as practicable following the date of this Agreement, any and all necessary approvals and licenses required from any
U.S. Government Authority, including the United States Department of Commerce, and any non-U.S. Governmental Authority that may be required under export control or other Laws in order to permit Seller to transfer the Acquired Assets to Buyer as
contemplated by this Agreement. Buyer shall use commercially reasonable efforts to cooperate with Seller in connection with obtaining such approvals and licenses to the extent reasonably requested by Seller, including by providing any information
relating to Buyer or its Affiliates that may be required by any applicable Governmental Authority for purposes thereof. 
 (c)
Buyer and Seller shall file the Buyer FDA Letter and the Seller FDA Letter, respectively, with the FDA on the Closing Date. Notwithstanding anything contrary herein, Seller shall be solely responsible for the payment of any filing or similar fees
payable to the FDA with respect to the transfer of the Acquired Assets to Buyer. 
 (d) In addition to the matters contemplated
by Section 6.3(a), Seller shall use its commercially reasonable efforts to obtain, prior to the Closing, all consents necessary or 

  
 35 

 
appropriate for the transfer, assignment or assumption of the Acquired Assets, the Assumed Liabilities and the Assigned Contracts and consummation of the transactions contemplated hereby and by
the other Transaction Documents. 
 6.4 Public Announcements. The Parties shall mutually and reasonably agree upon press
releases to be issued in respect of the transaction contemplated hereby upon or promptly following the Closing Date. The Parties shall consult with each other prior to issuing any other public announcement or statement with respect to this Agreement
or the transactions contemplated hereby and neither Party shall issue any other public announcement or statement without the prior written consent of the other Party hereto not to be unreasonably withheld, delayed or conditioned, except as may be
required by applicable Law or the rules or regulations of any securities exchange or pursuant to a form of press release agreed upon by the parties hereto prior to Closing. 
 6.5 Access to Information; Cooperation. From and after the date hereof and until the date that is eighteen (18) months following the Closing Date, Seller shall permit Buyer and its representatives
and agents, to make such investigation of the assets, properties, business and operations of Seller and such examination of the books, records, financial condition and operations of Seller and its Affiliates, in each case, to the extent reasonably
related to the Acquired Assets or the Assumed Liabilities, as Buyer may reasonably request; provided that such consultation shall not unreasonably disrupt Seller’s operations. Any such investigation and examination shall be conducted at
reasonable times, on reasonable prior notice and under reasonable circumstances and Seller shall cooperate fully therein. In order that Buyer may have full opportunity to make such a business, accounting and legal review, examination or
investigation as it or they may wish of the business and affairs of Seller reasonably related to the Acquired Assets or the Assumed Liabilities, Seller shall furnish, at Buyer’s cost and expense, the representatives of Buyer during such period
with all such information and copies of such documents reasonably related to the Acquired Assets or the Assumed Liabilities as such representatives may reasonably request; provided that Seller may redact or withhold any portion of such materials
that do not relate to the Product in the Territory or the Acquired Assets; provided, further, that Seller shall not be required to make available to Buyer any books, documents, records, files and similar materials (in each case,
whether or not in electronic form) prepared in connection with Transaction. Seller shall use commercially reasonable efforts to cause its officers, employees, consultants, agents, accountants and attorneys to cooperate fully with such
representatives in connection with such review and examination. Notwithstanding the foregoing, but subject to Section 6.9, Seller shall not be obligated to provide any information, documents or materials or take any other action that
would violate the provisions of any applicable Laws (including without limitation those relating to export controls). 
 6.6
Conduct of Business Following Closing. 
 (a) In relation to Buyer’s conduct of the Business after the Closing Date,
Buyer agrees that it will: (a) comply with all Laws applicable to the conduct of the Business; and (b) use Commercially Reasonable Efforts to commercialize the Product in the United States at all times until Buyer’s obligation to pay
royalties hereunder is reduced pursuant to the first sentence of Section 2.6(b). In addition, Buyer acknowledges that the Product and certain technology related to the Product are subject to export and re-export controls administered by
the 

  
 36 

 
United States Department of Commerce and agrees that the Buyer will comply with all such applicable controls, including export and re-export licensing requirements. 

(b) In the event that Buyer or its Affiliates change the price or other terms of sale used in filling purchase orders in respect of the
Product and such change has an adverse impact on any credit, chargeback or the best price for the Product granted or required to be given based on transactions entered into by Seller or its Affiliates prior to Closing, Buyer will promptly reimburse
Seller for the adverse financial impact caused thereby. 
 6.7 Employee Matters. 

(a) As soon as reasonably practicable, but in any event no later than ten (10) Business Days prior to the Closing Date (to be effective
as of the Closing Date), Buyer shall offer employment to each Business Employee who is listed on Schedule 6.7(a) and actively employed by Seller immediately prior to the Closing Date, in each case at an annual base compensation, and an
opportunity for cash incentive compensation (excluding, for clarity, equity and other non-cash compensation) not less than that which is in effect for such Business Employee, and with substantially the same responsibilities and duties, in each case
immediately prior to the Closing Date. For purposes of this Section 6.7(a), a Business Employee will be treated as “actively employed” if as of the Closing Date such person is actively at work, or on vacation, holiday, jury
duty, sick leave (not including short-term or long-term disability) or bereavement leave. The Business Employees to whom offers are made in accordance with the preceding sentence and who begin work with Buyer immediately after the Closing Date are
referred to herein as “Buyer Employees”. Seller shall terminate the employment of each Buyer Employee immediately prior to the Closing. Nothing in this Agreement shall create any obligation on the part of Buyer to continue to employ
any Buyer Employee for any period following the Closing Date. As of the Closing Date, Buyer shall, with respect to its vacation, 401(k) plan and other employee benefit plans, policies, programs or arrangements that contain a service-credit component
and that are maintained by Buyer after the Closing Date (solely to the extent applicable to such Buyer Employee), credit each Buyer Employee, for the purposes of eligibility or vesting but not for purposes of benefit accrual, with the applicable
service credited for such Buyer Employee’s duration of employment by Seller or its Affiliates (or any predecessor thereto). Notwithstanding the foregoing, for purposes of determining accrued vacation, each Buyer Employee shall be
credited with such amount of services as shall be necessary to entitle such Buyer Employee to a minimum of *** vacation days per calendar year, subject to, in the case of the current calendar year, any vacation days used by such Buyer Employee in
the current calendar year prior to the Closing. In addition, on or promptly following the Closing Date, Buyer shall pay to each Buyer Employee a “signing bonus” in an amount specified by Seller in writing, not to exceed ***, in the
aggregate. Promptly following Buyer’s notice to Seller that such amounts have been paid to the Buyer Employees, and in no event later than ten (10) Business Days thereafter, Seller shall reimburse Buyer for the full aggregate amount of such
payments, together with the amount, as specified by Buyer, of all payroll taxes or similar amounts paid or payable by Buyer in respect of such payments. 
 (b) Seller shall be responsible for paying to Buyer Employees any accrued but unpaid wages or other compensation (including earned, unused vacation, notice of termination or pay in lieu of notice,
severance, and change in control payments) upon their termination of 

  
  

	***	Portions of this page have been omitted pursuant to a request for Confidential Treatment and filed separately with the Commission. 

  
 37 

 
employment with Seller and in accordance with Seller’s policies and/or contracts. In no event shall Buyer have any responsibility or Liability for payment of any wages or other compensation
(including vacation or sick days) earned by any Buyer Employee or any other Business Employee impacted by this Agreement during his/her employment with Seller. In the event Buyer terminates a Buyer Employee’s employment, for any reason or no
reason, prior to the date that is four and one-half months after the Closing Date (the “Coverage Period”), then, solely with respect to the first seven (7) Buyer Employees so terminated (and no other Buyer Employees) (each a
“Covered Terminated Buyer Employee”), to the extent that Buyer shall make cash severance payments to a Covered Terminated Buyer Employee then within ten (10) days after receiving notification from Buyer that such a cash
severance payment was made, Seller shall pay to Buyer an amount equal to the lesser of (i) the actual amount cash severance payment made to such Covered Terminated Buyer Employee by Buyer and (ii) the amount that such Covered Terminated
Buyer Employee would have been entitled to receive on the date of his/her termination by Buyer under the rules of Seller’s severance plan in effect immediately prior to the Closing Date, if such Covered Terminated Buyer Employee had remained
continuously employed by Seller through to the date of his/her termination within the Coverage Period by Buyer. After the last day of the Coverage Period, and with respect to any Buyer Employees terminated during the Coverage Period who is not one
of the first seven (7) Buyer Employees so terminated, Seller shall have no obligation to make any payments to Buyer. 
 (c)
Seller shall be responsible for providing or discharging any and all notifications, benefits and Liabilities to Business Employees and governmental entities under the Worker Adjustment and Retraining Notification Act of 1988 (the “WARN
Act”) or by any other Law relating to plant closings, mass layoffs or employee separations or severance pay that are first required to be provided or discharged up to and including the Closing Date, and Buyer shall be responsible for
providing any notice required pursuant to the WARN Act with respect to a plant closing, layoff or employee separation or severance pay relating to Buyer Employees after the Closing Date. 

(d) Except as specifically provided otherwise herein, Seller shall retain all liabilities and obligations with respect to the Benefit
Plans. 
 (e) Except as specifically provided otherwise herein, Seller shall cause each Buyer Employee to cease participating in
the Benefit Plans with respect to the period beginning immediately after the Closing. Subject to the applicable policies, rules and regulations under any such plan offered by Buyer after the Closing Date, Buyer Employees shall be eligible to enroll
in a health plan determined by Buyer, as of the Closing Date, without (i) any waiting periods, (ii) any evidence of insurability, or (iii) application of any pre-existing physical or mental condition restrictions, except to the extent
that such waiting periods, evidence of insurability, pre-existing mental or physical condition restrictions would apply under Seller’s medical benefit plan and be permitted by law. Buyer shall use commercially reasonable efforts to recognize,
or cause to be recognized, the dollar amount of all expenses incurred by each Buyer Employee (and his or her eligible dependents) during the calendar year in which the date of hire by the Buyer occurs for purposes of satisfying such year’s
deductible and co-payment limitations and out-of-pocket maximums under the relevant welfare benefit plans in which such Buyer Employee (and his or her eligible dependents) will be eligible to participate after the Closing Date. 

  
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 (f) Seller shall retain responsibility for all claims for welfare benefits incurred by
Business Employees prior to Closing Date. For purposes of this subsection, a claim shall be deemed to have been incurred on the date the medical, dental or vision service giving rise to the claim is performed. 

(g) Contingent upon and effective as of the Closing, Seller shall cause the account balances of all Buyer Employees in any 401(k) plans
maintained by Seller or its Affiliates (Seller 401(k) Plans) to be fully vested. 
 (h) Buyer shall permit a Buyer Employee to
rollover a distribution from Seller 401(k) Plans into a 401(k) plan maintained by Buyer or its Affiliates, to the extent such rollover is in accordance with applicable law and the terms of the applicable plans. 

(i) The provisions of this Section 6.7 pertaining to the employment and employee benefits of Buyer Employees are solely for
the benefit of the parties to this Agreement, and no employee or former employee of Seller or Buyer or any other individual associated therewith shall be regarded for any purpose as a third party beneficiary of this Agreement. 

6.8 Fees and Expenses. Whether or not the transactions contemplated hereby are consummated, subject to Section 6.3(c),
each Party agrees to bear its own expenses in connection with the transactions contemplated hereby, including fees and expenses of accountants, attorneys, investment advisors and other professionals incurred in connection therewith. 

6.9 Confidentiality. 
 (a) Until the Closing, the confidentiality agreement between the Parties, dated November 24, 2008, as amended on January 14, 2010 (the “Existing Confidentiality Agreement”)
shall remain in full force and effect and the Parties shall comply with the terms thereof. The Existing Confidentiality Agreement shall be null and void and of no further force or effect following the Closing Date. 

(b) For a period of seven (7) years following the Closing Date, Seller shall not, and shall ensure that its Affiliates do not,
directly or indirectly, disclose to any other Person or make any other unauthorized use of any Confidential Information relating to the Business, the Acquired Assets, the Assumed Liabilities, Buyer or the transactions contemplated by this Agreement
or the other Transaction Documents, except to the extent such information is contained in any public statement approved by Buyer, or otherwise made, in accordance with Section 6.4. As used herein, the term “Confidential
Information” shall include any and all proprietary or material non-public information relating solely to the Acquired Assets (including the Acquired Intellectual Property), the Assumed Liabilities, Buyer, the Business or the transactions
contemplated by this Agreement, whether or not in written form and whether or not expressly designated as confidential, including any such information consisting of trade secrets or confidential know-how. Notwithstanding the foregoing, nothing
herein shall restrict Seller or any of its Affiliates from using or disclosing any Confidential Information to the extent (i) such information is or becomes (through no improper action or inaction by Seller or any of its Affiliates) generally
available to the public, (ii) such information was rightfully disclosed to Seller or its Affiliates by a third party not under an obligation of confidentiality with respect to 

  
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such information, (iii) Seller or its Affiliates can demonstrate that such information was independently developed by Seller or its Affiliates without use of any Acquired Intellectual
Property or other Confidential Information or (iv) such disclosure is required by Law or the rules and regulations of any securities exchange or any Governmental Authority; provided that, to the extent practicable, Seller shall give
Buyer adequate prior written notice thereof as reasonably necessary to allow Buyer to obtain confidential treatment or a protective order therefor. 
 (c) Seller acknowledges that in view of the nature of the Confidential Information and the objectives of the Parties in entering into this Agreement, the restrictions contained in this
Section 6.9 are reasonable and necessary to protect the legitimate business or other interests of the other Party after the Closing, and that any breach or threatened breach of the provisions of this Section 6.9 may cause
irreparable injury to Buyer for which an adequate monetary remedy may not exist. Accordingly, in the event of any such breach or threatened breach of this Section 6.9, each of Buyer and Seller shall be entitled, in addition to the
exercise of other remedies, to seek and obtain injunctive relief, without necessity of posting a bond, restraining the other Party from committing such breach or threatened breach. 

6.10 Satisfaction of Third Party Obligations. Seller shall take, or cause to be taken, all actions and to do, or cause to be done,
all things reasonably necessary, proper or advisable in order to pay and discharge all Excluded Liabilities that relate to the Business. Buyer shall take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably
necessary, proper or advisable in order to pay and discharge all Assumed Liabilities. 
 6.11 Noncompetition. Except with
respect to its performance of Seller’s Affiliates’ obligations under the Transition Agreement, during the period from the Closing Date until the date that is the *** anniversary of the Closing Date (the “Restriction
Period”), each of Buyer and Seller shall not, and shall ensure that its Affiliates do not, directly or indirectly, including through any acquisition, license, partnership, joint venture or distribution arrangement, market, distribute, offer
for sale, or sell anywhere in the Territory, or develop, test, or manufacture for sale in the Territory, any analgesic pharmaceutical product containing a conopeptide as its active ingredient, other than in the case of Buyer, the Product, (a
“Competing Product”), or knowingly aid or assist any third party in doing any of the foregoing. Notwithstanding anything herein to the contrary, nothing in this Section 6.11 shall prohibit or restrict the ability of
Buyer, Seller or their Affiliates, directly or indirectly, to retain any customers of the Product (including customers of the Product in the Territory) as a consultant on matters other than relating to a Competing Product or beneficially own less
than *** percent (***%) of the outstanding securities of any publicly-traded Person. If a Party or any of its controlled Affiliates or any Person that directly or indirectly owns a majority of the voting power of the capital stock of such Party
(such Person, a “Parent”) signs a definitive agreement with respect to a merger or acquisition by which it would acquire rights (other than residual financial rights) in a Competitive Product at any time during the Restriction
Period, then it (or its applicable controlled Affiliate or Parent) shall have *** months from the closing of such definitive agreement to divest itself of such rights in the Competitive Product and, during such *** month period, the sale, marketing
or distribution of such Competitive Product shall not be in violation of this Section 6.11. In the case of divestiture under the preceding sentence, such divestiture can occur by either (x) an outright sale of all rights in the
Competitive Product to a third party or (y) a license to one or more third parties of the right to sell, market and distribute 

  
  

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such Competitive Product so long as such Party and its Subsidiaries and parent entities only retain residual financial rights with respect to such Competitive Product and do not exercise or have
the ability to exercise any role or influence in any manner over the conduct of the business of such Competitive Product (other than the protection of reputational, intellectual property or similar rights or interests). For the avoidance of doubt,
if a Party enters into a transaction with any Person whereby such Party undergoes a Change in Control, then the foregoing limitations and requirements of this Section 6.11 shall not apply to such acquiring Person or any of its Affiliates
other than the applicable Party and its controlled Affiliates and Parents prior to such transaction nor shall such Party and its controlled Affiliates and Parents be prohibited from entering into intercompany transfers or services with such Person
or its other Affiliates as do not relate to a Competing Product. It is further understood and agreed that the remedies at law are inadequate in the case of any breach of this covenant and that Buyer or Seller, as the case may be, shall be entitled
to equitable relief, including the remedy of specific performance, with respect to any breach of such covenant. 
 6.12
Enforcement of Acquired Intellectual Property Rights. 
 (a) Seller shall notify Buyer of any alleged or threatened
infringement or misappropriation known to Seller by any Person of any Acquired Intellectual Property rights and shall provide Buyer with the available evidence, if any, of such infringement or misappropriation. 

(b) At Buyer’s expense Seller shall cooperate with Buyer in any action by Buyer, including if required to bring such an action, to
prosecute any alleged or threatened infringement or misappropriation of any Acquired Intellectual Property rights. In any infringement or misappropriation action that Buyer initiates to enforce or defend the Acquired Intellectual Property rights,
Seller shall, at Buyer’s expense, cooperate and, to the extent commercially reasonable, shall make available to Buyer and its counsel the inventors named on patents and applications within the Acquired Intellectual Property who are then
employees of Seller. To the extent commercially reasonable, Seller shall, at Buyer’s expense, make available to Buyer its current officers, employees, employees, consultants, agents, accountants and counsel when requested, as well as, to the
extent permitted by applicable Law, relevant documents, things and communications. If Seller is served with a subpoena in litigation involving the Acquired Intellectual Property rights, Seller shall, at Buyer’s expense, coordinate and cooperate
with Buyer. 
 6.13 Carve-Out Financials. 
 (a) If requested by Buyer at any time prior to the third anniversary of the Closing, Seller shall use its commercially reasonable efforts to prepare, at the sole cost and expense of Buyer, the financial
statements relating to the Products relating to periods ending on or prior to the Closing (the “Carve-Out Financial Statements”) required by (i) the United States Securities and Exchange Commission (“SEC”) in
connection with any reports, registration statements and other filings to be made by Buyer or its Affiliates with the SEC pursuant to the Securities Act or the Exchange Act or (ii) any other applicable Governmental Authority regulating
securities in a jurisdiction outside the United States to the extent that Buyer becomes subject to reporting requirements under the securities Laws of such jurisdiction (the “Ex-US

  
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Securities Laws”), in either case, in such form that such statements and the notes thereto can be audited. 
 (b) If requested by Buyer, Seller shall execute and deliver or cause to be executed and delivered to its auditors such representation letters, in form and substance customary for representation letters
provided to external audit firms by management of Seller (if the financial statements are the subject of an audit or are the subject of a review pursuant to Statement of Accounting Standards 100 (Interim Financial Information)), as may be reasonably
requested by such auditors with respect to the Carve-Out Financial Statements, if (i) to the extent such a representation letter is delivered by Seller’s management, or on its behalf, Seller’s management is indemnified and provided a
defense (including with respect to their own negligence) by Buyer with regard to the execution, delivery or any other action related to the provision of such representation letters to the same extent as any executive officer or director of Buyer
would be indemnified had they performed such action; (ii) Buyer provides a customary representation letter to such auditors, if reasonably requested; and (iii) Buyer’s existing outside auditors provide a customary representation
letter to such auditors, if reasonably requested. 
 (c) If reasonably requested by Buyer, Seller shall use commercially
reasonable efforts to engage its auditors to perform an audit of the Carve-Out Financial Statements and use commercially reasonable efforts to cause such auditors to issue unqualified opinions with respect thereto (the Carve-Out Financial Statements
and related audit opinions being hereinafter referred to as the “Audited Statements”) and provide its written consent for the use of its audit reports with respect to the Carve-Out Financial Statements in reports, registration
statements or other documents filed by Buyer or any of its Affiliates under, as applicable, the Securities Act or the Exchange Act, or the Ex-US Securities Laws as needed. Buyer shall reimburse Seller for all fees charged by the auditors with
respect to the preparation and delivery of the Audited Statements and any other fees charged by the auditor to facilitate Buyer’s ongoing compliance with SEC rules and regulations or Ex-US Securities Laws, as applicable. Seller shall use its
commercially reasonable efforts to facilitate the completion of such audit and delivery of the Audited Statements to Buyer or any of its Affiliates as soon as reasonably practicable. 

6.14 Transfer Taxes. All sales, use and transfer taxes, including but not limited to any value added, stock transfer, gross
receipts, stamp duty and real, personal, or intangible property transfer taxes, due by reason of the transfer of the Acquired Assets and Assumed Liabilities, including but not limited to any interest or penalties in respect thereof (the
“Transfer Taxes”) shall be paid by equally by the Seller and the Buyer. Buyer and Seller shall cooperate with each other and use their commercially reasonable efforts to minimize the Transfer Taxes attributable to the transfer of
the Acquired Assets and Assumed Liabilities. 
 6.15 Withholding. All payments made by Buyer to Seller under this
Agreement shall be made without deduction for any withholding or other Taxes, except to the extent required by law. In the event that any withholding is imposed by Bermuda (or other jurisdiction, to the extent Buyer assigned this Agreement or
the payment obligations thereunder to an assignee located in such other jurisdiction), then Buyer (or such assignee) shall pay such additional amounts as are necessary so that the amount received by Seller equals an amount that would have been
received if such withholding had not been imposed, provided that Seller, to the extent legally entitled to do so, takes all reasonable measures to reduce or eliminate such withholdings through making

  
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applicable filings, providing appropriate documentation or taking other reasonable steps that would not be materially disadvantageous to Seller. 

6.16 Cooperation on Tax Matters. 
 (a) Each of Buyer and Seller agree to furnish or cause to be furnished to the other, upon request, as promptly as practicable, such information (including access to books and records) and assistance
relating to the Acquired Assets as is reasonably necessary for the filing of any Tax Return, the preparation for any tax audit, the prosecution or defense of any claim, suit or proceeding relating to any proposed tax adjustment relating to the
Acquired Assets. Buyer and Seller shall keep all such information and documents received by them confidential unless otherwise required by Law. 
 (b) Buyer and Seller agree to retain or cause to be retained all books and records pertinent to the Acquired Assets until the applicable period for assessment of Taxes under applicable Law (giving effect
to any and all extensions or waivers) has expired, and such additional period as necessary for any administrative or judicial proceedings relating to any proposed assessment, and to abide all record retention agreements entered into with any taxing
authority. Buyer and Seller agree to give the other reasonable notice prior to transferring, discarding or destroying any such books and records relating to Tax matters and, if so requested, Buyer and Seller shall allow the requesting party to take
possession of such books and records. 
 (c) Buyer and Seller shall cooperate with each other in the conduct of any audit or
other proceedings for any Tax purposes relating to the Acquired Assets and they shall each execute and deliver such powers of attorney and other documents as are reasonably necessary to carry out the intent of this Agreement. 

6.17 Adverse Event Reporting. Without limiting Seller’s and its Affiliates obligations under the other Transaction Documents,
for a period of three (3) years following the Closing Date, Seller will notify Buyer promptly, and in any event within five (5) days, of any and all adverse events involving the Product that Seller or its Affiliates receives notice of from
time to time. Upon or as promptly as practicable following Closing, the Parties will enter into a memorandum of understanding reasonably acceptable to both Parties with respect to the reporting of adverse events and other safety reporting.

 6.18 Further Assurances. Each of the Parties shall, at the request of the other Party, execute such documents and
other papers and take such further actions as may be reasonably required to carry out the provisions hereof and the transactions contemplated hereby. To the extent that any such request is made by Buyer in relation to registering the transfer of any
Acquired Intellectual Property outside the United States, Buyer shall reimburse the other Party for all documented out-of-pocket expenses reasonably incurred by Seller in undertaking such actions. 

6.19 Assigned Contracts. In relation to the Assigned Contracts, Seller agrees as follows: (i) Seller shall continue to
maintain any and all financial or other records or information relating to the Product from any period prior to Closing that are not included among the Books and Records transferred to Buyer hereunder to the extent required pursuant to any record

  
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retention or inspection obligation contained in any Assigned Contract and shall permit the counterparty to any such Assigned Contract to access such records and information in accordance with the
terms of the applicable Assigned Contract, in all cases solely for the period(s) contemplated by the relevant Assigned Contract(s); (ii) with respect to any information relating to the Product that is retained by Seller or its Affiliates that
may be within the scope of any obligations of confidentiality or non-use contained in any Assigned Contract, Seller shall continue to maintain as confidential and comply with any such obligations of confidentiality and non-use, in all cases solely
for the period(s) contemplated by the relevant Assigned Contract(s); and (iii) in relation to any obligations of Seller under the Assigned Contracts that relate to countries outside the Territory, but that do not arise by virtue of Buyer’s
or its Affiliates’ or their licensees’ activities (whether or not in the Territory), or by virtue of Buyer’s or its Affiliates’ or their licensees’ antecedent breach of the applicable Assigned Contract, Seller shall either
perform or cause to be performed such obligations upon Buyer’s request and shall indemnify and hold Buyer harmless for any Losses or liability arising from any performance or non-performance of such obligations that Buyer has requested Seller
to perform. 
 6.20 Leased Automobiles. The Parties shall use commercially reasonable efforts to arrange for the vehicles
currently leased by Seller or its Affiliates and used by the Buyer Employees to be transferred to Buyer or its designated Affiliate upon or promptly following Closing and for Buyer or its Affiliates to assume all obligations relating to such
vehicles for the period (i) from and after the Closing Date, assuming that the Buyer Employees continue to have use of such vehicles from and after the Closing Date or (ii) from and after the date of transfer, if the Buyer Employees do not
continue to have use of such vehicles from and after the Closing date. The Parties shall use commercially reasonable efforts to accomplish the foregoing by virtue of an assignment of the leases in respect thereof to Buyer or its Affiliates,
Buyer’s or one of its Affiliates entry into new leases in respect thereof, or such other means as may be mutually agreed upon by the Parties. 
 ARTICLE 7 
 CLOSING CONDITIONS 

7.1 Conditions to the Obligations of Seller. The obligations of Seller to effect the transactions contemplated hereby shall be
subject to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which may be waived by Seller: 
 (a) The representations and warranties of Buyer contained herein shall be true and correct in all material respects as of the Closing Date as though such representations and warranties were made at and as
of such date, except to the extent that such representations and warranties address matters only as of a particular date, in which case, such representations and warranties shall be true and correct as of such date and, in each case, except to the
extent that such representations and warranties are qualified by terms such as “material” or “Material Adverse Effect”, in which case such representations and warranties shall be true and correct in all respects at and as of the
Closing Date (or such other date, if applicable). 

  
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 (b) Buyer shall have performed and complied in all material respects with all agreements,
obligations and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing. 
 (c)
Seller shall have received all of the agreements, documents and other items specified in Section 3.2. 
 (d) No
temporary restraining order, preliminary or permanent injunction or other order or decree by any court of competent jurisdiction that prevents the consummation of the transactions contemplated hereby or imposes material conditions with respect
thereto shall have been issued and remain in effect (each Party agrees to use its commercially reasonable efforts to have any such injunction, order or decree lifted) and no action shall have been taken, and no statute, rule or regulation shall have
been enacted, by any Governmental Authority that would prevent the consummation of the transactions contemplated hereby or impose material conditions with respect thereto. 
 (e) Each of the consents, waivers, approvals, authorizations and Permits set forth on Schedule 7.1(e) shall have been obtained. 

7.2 Conditions to the Obligations of Buyer. The obligations of Buyer to effect the transactions contemplated hereby shall be
subject to the fulfillment, on or prior to the Closing Date of the following conditions, any one or more of which may be waived by Buyer: 
 (a) The representations and warranties of Seller contained herein shall be true and correct in all material respects as of the Closing Date as though such representations and warranties were made at and
as of such date, except to the extent that such representations and warranties address matters only as of a particular date, in which case, such representations and warranties shall be true and correct as of such date and, in each case, except to
the extent that such representations and warranties are qualified by terms such as “material” and “Material Adverse Effect”, in which case such representations and warranties shall be true and correct in all respects at and as of
the Closing Date (or such other date, if applicable). 
 (b) Seller shall have performed and complied in all material respects
with all agreements, obligations, covenants and conditions required by this Agreement to be performed or complied with by it on or prior to the Closing. 
 (c) Each of the consents, waivers, approvals, authorizations and Permits set forth on Schedule 7.2(c) shall have been obtained. 

(d) No fewer than seventy-five percent (75%) of the Business Employees to whom Buyer has offered employment pursuant to
Section 6.7(a) shall have accepted such offers of employment in writing. 
 (e) Buyer shall have received all of the
agreements, documents and other items specified in Section 3.3. 
 (f) During the period from the date hereof to the
Closing Date, no event shall have occurred and be continuing which has resulted in a Material Adverse Effect. 

  
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 (g) No temporary restraining order, preliminary or permanent injunction or other order or
decree by any court of competent jurisdiction that prevents the consummation of the transactions contemplated hereby or imposes material conditions with respect thereto shall have been issued and remain in effect (each Party agrees to use its
commercially reasonable efforts to have any such injunction, order or decree lifted) and no action shall have been taken, and no statute, rule or regulation shall have been enacted, by any Governmental Authority that would prevent the consummation
of the transactions contemplated hereby or impose material conditions with respect thereto. 
 ARTICLE 8 

TERMINATION 

8.1 Termination. This Agreement may be terminated at any time prior to the Closing Date: 

(a) by mutual consent of Buyer and Seller; 
 (b) by Seller or by Buyer if the Closing shall not have occurred on or prior to September 30, 2010 (the “Outside Date”), provided, however, that the right to terminate
this Agreement under this Section 8.1(b) shall not be available to any party whose failure to fulfill any obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before such date;

 (c) by Buyer, if there has been a material violation or material breach by Seller of any agreement, covenant, representation
or warranty contained in this Agreement, and such violation or breach, individually or in the aggregate with any other such violation or breach, (i) would cause the conditions set forth in Sections 7.2(a), 7.2(b), or
7.2(f) not to be satisfied and (ii) if capable of cure, is not cured by the Outside Date; 
 (d) by Seller, if there
has been a material violation or material breach by Buyer of any agreement, covenant, representation or warranty contained in this Agreement, and such violation or breach, individually or in the aggregate with any other such violation or
breach, (i) would cause the conditions set forth in Sections 7.1(a) or 7.1(b) not to be satisfied and (ii) if capable of cure, is not cured by the Outside Date; 

8.2 Procedure and Effect of Termination. In the event of termination of this Agreement and abandonment of the transactions
contemplated hereby by either or both of the Parties pursuant to Section 8.1, written notice thereof shall forthwith be given to the other Party in accordance with Section 10.3 and this Agreement shall terminate and the
transactions contemplated hereby shall be abandoned, without further action by any of the Parties. If this Agreement is terminated as provided in Sections 8.1(a) through 8.1(d), this Agreement, other than the obligations of each Party
under Sections 6.4, 6.8, 6.9, the last sentence of Section 6.3(c) and Sections 10.3, 10.4, 10.5, 10.6, 10.7, 10.11, 10.12 and 10.13 shall forthwith become null
and void, without any liability on the part of any party hereto, or any Affiliates of, or any officers, directors or employees of, any party; provided, however, that, nothing contained in this Section

  
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8.2 shall relieve any party from liability for a breach of any covenant or agreement contained in this Agreement. 
 ARTICLE 9 
 INDEMNIFICATION 

9.1 Survival. All of the terms and conditions of this Agreement, together with the warranties, representations, agreements and
covenants contained herein or in any instrument or document delivered or to be delivered pursuant to this Agreement, shall survive the execution of this Agreement and the Closing Date, notwithstanding any investigation heretofore or hereafter made
by or on behalf of any party hereto. Notwithstanding the foregoing, (a) the representations and warranties contained in Sections 4.1, 4.2, 5.1, and 5.2 of this Agreement shall survive the Closing and continue in
full force and effect indefinitely; (b) the representations and warranties of Seller contained in Sections 4.9, 4.10 and 4.21 of this Agreement shall survive the Closing and continue in full force and effect until date that
is *** after the expiration of the applicable statute of limitations (including any extensions or waivers thereof); (c) the representations and warranties of Seller contained in Sections 4.3, 4.11 and 4.19 of this Agreement
shall survive and continue for ***; and (d) all other representations and warranties contained herein shall survive and continue for *** from the Closing Date; provided, however, that in all cases, representations and warranties
in respect of which an indemnification claim shall be pending as of the end of the applicable period referred to above shall survive with respect to such indemnification claim until the final disposition thereof. Unless otherwise stated, the
agreements and covenants set forth in this Agreement shall survive and continue indefinitely or until all obligations set forth therein shall have been performed and satisfied. 

9.2 Indemnification Obligation of Seller. 
 (a) Seller shall indemnify Buyer and its successors and permitted assigns (each a “Buyer Indemnitee” and, collectively the “Buyer Indemnitees”) in respect of, and save
and hold each Buyer Indemnitee harmless against any Losses which any Buyer Indemnitee or any of its Affiliates or any of their respective officers, directors, employees, agents or representatives or their respective successors or assigns suffers,
sustains or becomes subject to as a result of or by virtue of, without duplication: 
 (i) any facts or
circumstances which constitute a misrepresentation or breach of any representation or warranty made by Seller set forth in this Agreement (disregarding, for purposes of such determination, any qualification or exception with respect to materiality
or Material Adverse Effect contained therein); 
 (ii) any nonfulfillment or breach of any covenant of Seller set
forth in this Agreement or any other Transaction Documents; or 
 (iii) any Excluded Liabilities. 

  
  

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 (b) Notwithstanding the foregoing, (i) Seller shall not be required to indemnify Buyer
Indemnitees in respect of any Losses any Buyer Indemnitee suffers, sustains or becomes subject to as a result of or by virtue of any of the occurrences referred to in Section 9.2(a)(i) above unless and until the aggregate of all such
Losses exceeds *** (the “Minimum Threshold”), at which point Seller will be obligated to indemnify Buyer for all such Losses, from and including the first Dollar thereof and (ii) in no event shall Seller be obligated to
indemnify Buyer Indemnitees in respect of any Losses any Buyer Indemnitee suffers, sustains, or becomes subject to, as a result of or by virtue of any of the occurrences referred to in Section 9.2(a)(i) in excess of the greater of
(1) *** and (2) *** percent (***%) of the aggregate of all amounts paid to Seller by Buyer or its Transferees or their Transferees pursuant to Sections 2.4, 2.6 and 2.8 hereof, in the aggregate for all such Losses (the
“Indemnification Cap”). Notwithstanding any other provision of this Section 9.2, (A) the Minimum Threshold and the Indemnification Cap shall not apply with respect to any Loss any Buyer Indemnitee suffers, sustains
or becomes subject to as a result of or by virtue of (x) any breach of Sections 4.1, 4.2, 4.13, 4.20 or 4.21 or (y) the fraud or the willful misconduct on the part of Seller and (B) Seller shall
not be liable for any particular Loss unless the amount thereof exceeds *** (the “De Minimus Amount”) and all Losses in respect of any claim less than the De Minimus Amount shall be excluded from calculations with respect to the
Minimum Threshold and the Indemnification Cap. Notwithstanding the foregoing, if a Buyer Indemnitee is determined under Section 9.2(b) to be entitled to indemnification hereunder in an amount (the “Specified Amount”)
that is more than the then-applicable Indemnification Cap, then Seller shall pay Buyer from time to time upon Buyer’s request an amount which, together with any payments made by Seller in respect of the Specified Amount prior to such payment,
equals the lesser of (x) the then-applicable Indemnification Cap and (y) the Specified Amount. 
 (c) Except
(i) as set forth in Sections 6.9, 6.11, 6.15 and 10.5 and (ii) with respect to claims based on fraud or willful misconduct on the part of Seller, the rights of Buyer Indemnitees under this
Article 9 shall be the sole and exclusive remedies of Buyer Indemnitees with respect to claims for which they are entitled to indemnification under this Agreement or otherwise relating to the transactions that are the subject of this
Agreement. None of Buyer Indemnitees shall attempt to collect any Losses arising pursuant to Section 9.2(a)(i) directly from Seller. 
 9.3 Indemnification Obligation of Buyer. 
 (a) Buyer shall indemnify Seller
and its successors and permitted assigns (collectively, the “Seller Indemnitees”) in respect of, and save and hold any Seller Indemnitee harmless against any Losses which such Seller Indemnitee or any of its Affiliates or any of
their respective officers, directors, employees, agents or representatives or their respective successors or assigns suffers, sustains or becomes subject to as a result of or by virtue of, without duplication: 

(i) any facts or circumstances which constitute a misrepresentation or breach of any representation or warranty made by
Buyer set forth in this Agreement (disregarding, for purposes of such determination, any qualification or exception with respect to materiality contained therein); 

  
  

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 (ii) any nonfulfillment or breach of any covenant or agreement of Buyer set
forth in this Agreement; or 
 (iii) any Assumed Liabilities. 

(b) Notwithstanding the foregoing, (i) Buyer shall not be required to indemnify Seller Indemnitees in respect of any Losses any
Seller Indemnitee suffers, sustains or becomes subject to as a result of or by virtue of any of the occurrences referred to in Section 9.3(a)(i) above unless and until the aggregate of all such Losses exceeds the Minimum Threshold, at
which point Buyer will be obligated to indemnify Seller for all such Losses, from and including the first Dollar thereof and (ii) in no event shall Buyer be obligated to indemnify Seller Indemnitees in respect of any Losses any Seller
Indemnitee suffers, sustains, or becomes subject to, as a result of or by virtue of any of the occurrences referred to in Section 9.3(a)(i) in excess of the Indemnification Cap. Notwithstanding any other provision of this
Section 9.3, (A) the Minimum Threshold and the Indemnification Cap shall not apply with respect to any Loss any Seller Indemnitee suffers, sustains or becomes subject to as a result of or by virtue of (x) any breach of
Sections 5.1, 5.2, or 5.5 or (y) the fraud or the willful misconduct on the part of Buyer and (B) Buyer shall not be liable for any particular Loss unless the amount thereof exceeds the De Minimus Amount and all Losses
in respect of any claim less than the De Minimus Amount shall be excluded from calculations with respect to the Minimum Threshold and the Indemnification Cap. 
 (c) Except (i) as set forth in Section 10.5 and (ii) with respect to claims based on fraud or willful misconduct of Buyer, the rights of Seller Indemnitees under this
Article 9 shall be the sole and exclusive remedies of Seller Indemnitees with respect to claims for which they are entitled to indemnification under this Agreement or otherwise relating to the transactions that are the subject of this
Agreement. 
 9.4 Third Party Claims. 
 (a) Any Person making a claim for indemnification pursuant to Section 9.2 or 9.3 above (each, an “Indemnified Party”) must give the party from whom indemnification is
sought (an “Indemnifying Party”) written notice of such claim promptly after the Indemnified Party receives any written notice of any action, lawsuit, proceeding, investigation or other claim by a third party (a “Third Party
Claim”) against or involving the Indemnified Party by any Person or otherwise discovers the liability, obligation or facts giving rise to such claim for indemnification; provided, that the failure to notify or delay in notifying an
Indemnifying Party will not relieve the Indemnifying Party of its obligations pursuant to Section 9.2 or 9.3 above, as applicable, except to the extent that such failure or delay actually harms the Indemnifying Party. Such notice
shall describe in reasonable detail the facts constituting the basis for such claim and the amount of claimed damages. 
 (b)
With respect to the defense of any Third Party Claim against or involving an Indemnified Party for which indemnification is provided in Section 9.2 or 9.3 above and which does not include a claim for any material injunctive or
other equitable relief, an Indemnifying Party, at its option and upon written notice to the Indemnified Party, may assume control of the defense of such Third Party Claim with lead counsel reasonably satisfactory to the

  
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Indemnified Party. If the Indemnifying Party does not assume control of such defense, the Indemnified Party shall have the right to control such defense. Notwithstanding anything to the contrary
contained herein, whether or not an Indemnifying Party assumes the defense of any Third Party Claim hereunder shall not constitute a presumption or omission with respect to whether the Losses related to such Third Party Claim are, in fact, subject
to indemnification hereunder. 
 (c) Notwithstanding Section 9.4(b) above: (i) the Indemnified Party will be
entitled to participate in the defense of such claim and to employ, at its own cost and expense, counsel of its choice for such purpose at its own expense (provided that the Indemnifying Party will bear the fees and expenses of one such separate
counsel incurred prior to the date upon which the Indemnifying Party effectively assumes control of such defense) and (ii) the Indemnifying Party will not be entitled to assume control of, or continue to control, as applicable, the defense of
such claim (but the Indemnifying Party will be entitled to participate in the defense of such claim), if: 
 (i)
the Indemnified Party reasonably believes after consultation with legal counsel that there exists a conflict of interest which, under applicable principles of legal ethics, prohibits a single legal counsel from representing both the Indemnified
Party and the Indemnifying Party in such Third Party Claim; or 
 (ii) the Indemnified Party reasonably believes
that the Indemnifying Party has failed or is failing to prosecute or defend vigorously such claim following written notice and a thirty (30) day opportunity to cure. 
 (d) The Indemnifying Party will not consent to the entry of any judgment or enter into any compromise or settlement with respect to the Third Party Claim without the prior written consent of the
Indemnified Party unless such judgment, compromise or settlement (i) provides for the payment by the Indemnifying Party of money as sole relief for the claimant, (ii) involves no finding or admission of any violation of legal requirements
on the part of the Indemnified Party and (iii) involves no injunctive or equitable relief; provided, however, that in the event that an Indemnifying Party proposes to consent to the entry of any judgment or enter into any
compromise or settlement without consent of the Indemnified Party pursuant to the foregoing clause (i), the Indemnifying Party shall consult with the Indemnified Party in good faith in advance thereof and consider in good faith such Indemnified
Party’s views. 
 (e) The Indemnified Party may not consent to the entry of any judgment or enter into any compromise or
settlement with respect to a Third Party Claim with respect to which indemnification is being sought hereunder without the prior written consent of the Indemnifying Party. If the Indemnifying Party does not assume the control and defense of a Third
Party Claim under Section 9.4(b), the Indemnified Party may defend such Third Party Claim and seek indemnification hereunder from the Indemnifying Party for any Losses associated therewith, including by providing reasonable access to
applicable personnel and books and records and reimbursing the Indemnified Party for its costs and expenses (including attorney’s fees and disbursements) in defending such Third Party Claim. 

  
 50 

 (f) The Party controlling the defense of any Third Party Claim shall at all times use
reasonable efforts to keep the other reasonably apprised of the status of the defense of any Third Party Claim and to cooperate in good faith with each other with respect to the defense of any such matter. 

9.5 Non-Third-Party Claims. In the event that the Indemnified Party asserts the existence of a claim giving rise to Losses (but
excluding claims resulting from the assertion of liability by third parties), it shall give written notice to the Indemnifying Party. Such written notice shall state that it is being given pursuant to this Section 9.5, specify the nature
and amount of the Losses asserted and indicate the date on which such assertion shall be deemed accepted (such date to be established in accordance with the next sentence). If the Indemnifying Party, within twenty (20) Business Days after the
receipt of notice by the Indemnified Party, shall not give written notice to the Indemnified Party announcing its intent to contest the assertion of such claim or the Losses in respect of such claim of the Indemnified Party, such assertion shall be
deemed accepted and the amount of Losses in respect thereof shall be deemed to have been agreed upon. In the event, however, that the Indemnifying Party contests the assertion of a claim or the amount of Losses in respect of such claim by giving
such written notice to the Indemnified Party within said period, then the parties shall act in good faith to reach agreement regarding such claim. In the event that litigation shall arise with respect to any such claim, the prevailing party shall be
entitled to reimbursement of costs and expenses incurred in connection with such litigation including attorney fees. 
 9.6
Payment. Upon the determination of the liability under this Article 9 or otherwise between the parties or by judicial proceeding, the appropriate party shall pay to the other within twenty (20) Business Days after such
determination, the amount of any claim for indemnification made hereunder. All amounts not paid when due under this Article 9 will accrue interest, payable on demand, at a rate equal to Applicable Rate then in effect, from the date due
until paid in full. 
 9.7 Treatment of Indemnification Payments. The amount of indemnity payable under
Section 9.2 or Section 9.3 shall be treated by the parties as an adjustment to the Purchase Price. 

9.8 Limitations. 
 (a) Notwithstanding anything herein to the contrary, no claim for indemnification pursuant to this Article 9 may be made unless the applicable Party or Indemnified Party gives notice thereof to the
Indemnifying Party prior to the expiration of the applicable representation, warranty or covenant, as provided in Section 9.1; provided that the applicable representation, warranty and covenant shall survive for a period contemporaneous
with the resolution of a claim for which a Party has properly asserted a claim. The amount of Losses recoverable by an Indemnified Party under this Article 9 with respect to an indemnity claim shall be reduced by (i) any proceeds
actually received by such Person, as compensation for the Losses to which such indemnity claim relates, from a third party (excluding the Indemnifying Party or its Affiliates) and (ii) the amount of any Tax savings actually realized by such
Person based on the Losses to which such indemnity claim relates and increased by the amount of any Tax detriment actually realized by such Person based on the Losses to which such indemnity claim relates. In any case where an Indemnified Party
recovers from third parties any amount in 

  
 51 

 
respect of a matter with respect to which an Indemnifying Party has indemnified such Party pursuant to this Article 9, such Indemnified Party shall promptly pay over to the Indemnifying
Party the amount so recovered, but not in excess of any amount previously so paid by the Indemnifying Party to or on behalf of the Indemnified Party in respect of such matter. 
 (b) Each of the Parties agrees that, to the fullest extent permitted by applicable Law, except in cases of fraud, the other Party may seek recourse subject to and in accordance with this Article 9
only against the other Party, and the respective directors, officers, employees, Affiliates, controlling Persons, agents and representatives of the other Party shall not have any personal liability or responsibility whatsoever to the claiming Party
or any of its directors, officers, employees, Affiliates, controlling Persons, agents or representatives on any basis (including in contract or tort, under federal or state securities laws or otherwise). Each Party hereby releases the other
Party’s and its Affiliates’ respective directors, officers, employees, Affiliates, controlling Persons, agents and representatives from any such liability or responsibility. 

(c) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NO PARTY SHALL BE LIABLE TO ANY OTHER PARTY FOR SPECIAL, INDIRECT,
INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR MULTIPLE DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS) UNDER THIS AGREEMENT EXCEPT TO THE EXTENT SUCH DAMAGES SHALL BE PAYABLE TO A THIRD PARTY. 

ARTICLE 10 

GENERAL PROVISIONS 
 10.1 Amendment and Modification. This Agreement may be amended, modified or supplemented only by written agreement of Seller and Buyer. 

10.2 No Implied Waivers. Any failure of any of the Parties to comply with any obligation, covenant, agreement or condition
contained herein may be waived by the Party entitled to the benefits thereof, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. 
 10.3 Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, by confirmed electronic or facsimile transmission, confirmed courier service, or by registered or certified mail (postage prepaid,
return receipt requested) to the respective Parties as follows: 
 If to Buyer: 

  
 52 

 Azur Pharma International Limited 

David J Doyle/Sandra Seymour 
 Clarendon House 
 2 Church Street, Hamilton HM 11 

Bermuda 

Facsimile: (441) 292 4720 
 with a copy to: 
 Mayer Brown LLP 

1675 Broadway 

New York, NY 10019 
 Attention: Reb D. Wheeler 
 Facsimile No.: 212-262-1910 

If to Seller: 

Elan Pharmaceuticals, Inc. 
 800 Gateway Boulevard 
 South San Francisco, CA 94080 

Attention: Senior Vice President Legal 
 Facsimile No.: 650-553-7165 
 with a copy to: 

Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, New York 10005 

Attention: Christopher T. Cox, Esq. 
 Facsimile No.: 212-269-5420 
 or to such other address as the person to whom notice is given may
have previously furnished to the others in writing in the manner set forth above (provided that notice of any change of address shall be effective only upon receipt thereof). 

10.4 Assignment; Successors and Assigns. This Agreement and all of the provisions hereof shall be binding upon and inure to the
benefit of the Parties and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any Party without the prior written consent of the other Party
(not to be unreasonably withheld); provided that (i) either Party may assign its rights, interests and obligations under this Agreement to any Affiliate of such Party or to any Person who acquires all or substantially all of such Party’s
assets, and (ii) subject to Section 2.10, Buyer may assign its rights, interests and obligations under this Agreement in their entirety, but not in part, to any Person to whom it transfers all or substantially all of the Acquired
Assets. In the event that either Party assigns its rights, interests and obligations hereunder without the consent of the other Party in accordance with the foregoing, the assigning Party shall promptly notify the other Party of such assignment and
the identity of the assignee. This Agreement shall inure to the benefit of, and be binding upon, the Parties and their successors and permitted assigns. Any 

  
 53 

 
assignment of this Agreement or any of the rights, interests or obligations hereunder, in whole or in part, in contravention of this Section 10.4 shall be void ab initio.

 10.5 Specific Performance. Each of the Parties acknowledge and agree that the other party may be damaged irreparably
and may not be made whole by monetary damages in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached. Therefore, except as otherwise provided herein, each Party agrees
to the granting of specific performance of this Agreement and injunctive or other equitable relief in favor of the other Party as a remedy for any such breach, in addition to any other remedy to which it may be entitled, at law or in equity.

 10.6 JURISDICTION OF DISPUTES; WAIVER OF JURY TRIAL. IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY
LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, WITH RESPECT TO ANY OF THE MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR
THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (A) AGREE THAT ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION SHALL BE INSTITUTED IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE CITY OF NEW YORK, NEW YORK, WHETHER A STATE OR FEDERAL
COURT; (B) AGREE THAT IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO PERSONAL JURISDICTION IN ANY SUCH COURT DESCRIBED IN CLAUSE (A) OF THIS SECTION 10.6 AND TO SERVICE OF
PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A FEDERAL COURT IN NEW YORK,
NEW YORK); (C) AGREE TO WAIVE TO THE FULL EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT ANY SUCH LITIGATION, PROCEEDING OR
ACTION WAS BROUGHT IN AN INCONVENIENT FORUM; (D) AGREE THAT SERVICE OF PROCESS IN ANY LEGAL PROCEEDING MAY BE MADE BY MAILING OF COPIES THEREOF TO SUCH PARTY AT ITS ADDRESS SET FORTH IN SECTION 10.3 FOR COMMUNICATIONS TO SUCH PARTY;
(E) AGREE THAT ANY SERVICE MADE AS PROVIDED HEREIN SHALL BE EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (F) AGREE THAT NOTHING HEREIN SHALL AFFECT THE RIGHTS OF ANY PARTY TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED
BY LAW. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, AND AGREE TO TAKE ANY AND ALL ACTION
NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER. 
 10.7 Governing Law. This Agreement shall be governed by the laws of
the State of New York (regardless of the laws that might otherwise govern under applicable New York 

  
 54 

 
principles of conflicts of law) as to all matters, including but not limited to matters of validity, construction, effect, performance and remedies. 

10.8 Counterparts. This Agreement may be executed in counterparts and such counterparts may be delivered in electronic format
(including by fax and email). Such delivery of counterparts shall be conclusive evidence of the intent to be bound hereby and each such counterpart and copies produced therefrom shall have the same effect as an original. To the extent applicable,
the foregoing constitutes the election of the Parties to invoke any Law authorizing electronic signatures. 
 10.9
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity of enforceability of the remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other situation or in any other situation or in any other jurisdiction. If the final judgment of a court of competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the parties agree that the court making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so
modified after the expiration of the time within which the judgment may be appealed. 
 10.10 Captions. The article and
section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or interpretation of this Agreement. 

10.11 Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their
mutual intent, and no rule of strict construction shall be applied against any party. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the
context requires otherwise. 
 10.12 Entire Agreement. This Agreement, including the documents, schedules, certificates
and instruments referred to herein, embody the entire agreement and understanding of the parties hereto in respect of the transactions contemplated by this Agreement. There are no restrictions, promises, representations, warranties, covenants or
undertakings, other than those expressly set forth or referred to herein or therein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such transactions. 

10.13 No Third Party Beneficiaries. Neither this Agreement nor any provision hereof is intended to confer upon any Person (other
than the Parties hereto and their respective successors and permitted assigns) any rights or remedies hereunder. Without limiting the generality of the immediately preceding sentence, no employee, shareholder or contractual counterparty (other than
the Parties hereto) of Seller or Buyer shall acquire any rights or remedies as a result of this Agreement, and the employees and shareholders of Seller and Buyer shall have no right whatsoever to enforce any provision of this Agreement. 

  
 55 

 [Signature page follows] 

  
 56 

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

					
	ELAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Douglas Love

		 	Name:	 	Douglas Love
		 	Title:	 	 Executive Vice President

Bioneurology Operations

	
	AZUR PHARMA INTERNATIONAL LIMITED
		
	By:	 	 /s/ DJ Doyle

		 	Name:	 	DJ Doyle
		 	Title:	 	DirectorAsset Purchase Agreement

 Exhibit 10.6 
 Execution Version 
  

 
  

ASSET PURCHASE AGREEMENT 
 by and among 
 AVANIR PHARMACEUTICALS, and 

ALAMO PHARMACEUTICALS, LLC 
 on the one hand 
 and 

AZUR PHARMA INTERNATIONAL III LIMITED, and 
 AZUR PHARMA INC. 
 on the other hand 

Dated as of July 2, 2007 
  

 
  

 TABLE OF CONTENT 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE I
	  	 DEFINITIONS
	  	 	1	  
			
	 1.1
	  	 Defined Terms
	  	 	1	  
	 1.2
	  	 Other Defined Terms
	  	 	13	  
	 1.3
	  	 Seller Knowledge
	  	 	14	  
			
	 ARTICLE II
	  	 PURCHASE AND SALE OF ASSETS
	  	 	14	  
			
	 2.1
	  	 Transfer of Assets
	  	 	14	  
	 2.2
	  	 Assumption of Liabilities
	  	 	14	  
	 2.3
	  	 Purchase Price
	  	 	15	  
	 2.4
	  	 Payment of Sales Percentage Amount
	  	 	16	  
	 2.5
	  	 Allocation of Purchase Price
	  	 	17	  
	 2.6
	  	 Closing Costs; Transfer Taxes and Fees
	  	 	17	  
	 2.7
	  	 Further Assurances
	  	 	18	  
	 2.8
	  	 Determination of Net Working Capital
	  	 	18	  
	 2.9
	  	 Withholding Tax
	  	 	20	  
			
	 ARTICLE III
	  	 CLOSING
	  	 	20	  
			
	 3.1
	  	 Closing
	  	 	20	  
	 3.2
	  	 Deliveries at Closing
	  	 	20	  
	 3.3
	  	 Consents to Assignment and Transfer of Certain Rights and Liabilities
	  	 	22	  
			
	 ARTICLE IV
	  	 REPRESENTATIONS AND WARRANTIES OF THE SELLING PARTIES AND PARENT
	  	 	23	  
			
	 4.1
	  	 Organization
	  	 	23	  
	 4.2
	  	 Authorization
	  	 	23	  
	 4.3
	  	 No Conflict or Violation; Consents and Approvals
	  	 	24	  
	 4.4
	  	 Financial Information
	  	 	24	  
	 4.5
	  	 Absence of Certain Changes or Events
	  	 	24	  
	 4.6
	  	 Title to Purchased Assets and Sufficiency
	  	 	24	  
	 4.7
	  	 Material Contracts
	  	 	25	  
	 4.8
	  	 Permits
	  	 	25	  
	 4.9
	  	 Litigation
	  	 	25	  
	 4.10
	  	 Compliance with Laws
	  	 	26	  
	 4.11
	  	 Brokers or Finders
	  	 	27	  
	 4.12
	  	 Employment, Labor and Employee Benefit Matters
	  	 	27	  
	 4.13
	  	 Intellectual Property
	  	 	28	  
	 4.14
	  	 Environmental Matters
	  	 	29	  
	 4.15
	  	 Inventory
	  	 	30	  

  
 -i-

							
	 4.16
	  	 Insurance
	  	 	30	  
	 4.17
	  	 Customers
	  	 	30	  
	 4.18
	  	 Taxes
	  	 	31	  
	 4.19
	  	 Cutler Agreement
	  	 	31	  
			
	 ARTICLE V
	  	 REPRESENTATIONS AND WARRANTIES OF BUYER
	  	 	31	  
			
	 5.1
	  	 Organization of Buyer
	  	 	31	  
	 5.2
	  	 Authorization
	  	 	31	  
	 5.3
	  	 Compliance with Applicable Law
	  	 	32	  
	 5.4
	  	 Litigation
	  	 	32	  
	 5.5
	  	 No Conflict or Violation; Consents and Approvals
	  	 	32	  
	 5.6
	  	 No Brokers or Finders
	  	 	33	  
	 5.7
	  	 Sufficiency of Consideration
	  	 	33	  
	 5.8
	  	 No ANDA
	  	 	33	  
			
	 ARTICLE VI
	  	 COVENANTS OF THE SELLING PARTIES AND BUYER
	  	 	33	  
			
	 6.1
	  	 Access by Buyer; Confidentiality Agreement
	  	 	33	  
	 6.2
	  	 Conduct of Business
	  	 	34	  
	 6.3
	  	 Employee Matters
	  	 	36	  
	 6.4
	  	 No Additional Representations and Warranties
	  	 	38	  
	 6.5
	  	 Disclaimer of Estimates and Projections
	  	 	39	  
	 6.6
	  	 Revision of Marketing Materials; Use of Names
	  	 	39	  
	 6.7
	  	 Customer Notifications
	  	 	39	  
	 6.8
	  	 Regulatory Matters, Etc
	  	 	40	  
	 6.9
	  	 Post Closing Cooperation
	  	 	41	  
	 6.10
	  	 Consents
	  	 	42	  
	 6.11
	  	 Financing
	  	 	42	  
	 6.12
	  	 Transition Services
	  	 	42	  
	 6.13
	  	 Transition Services Contracts
	  	 	46	  
	 6.14
	  	 Reporting Obligations
	  	 	46	  
	 6.15
	  	 Operation of Business by Buyer
	  	 	47	  
	 6.16
	  	 No ANDA
	  	 	47	  
	 6.17
	  	 Supplement of Disclosure Schedules
	  	 	48	  
			
	 ARTICLE VII
	  	 CONDITIONS TO THE SELLING PARTIES’ OBLIGATIONS
	  	 	48	  
			
	 7.1
	  	 Representations, Warranties and Covenants
	  	 	48	  
	 7.2
	  	 No Laws or Governmental Orders
	  	 	49	  
	 7.3
	  	 Deliveries
	  	 	49	  
			
	 ARTICLE VIII
	  	 CONDITIONS TO BUYER’S OBLIGATIONS
	  	 	49	  
			
	 8.1
	  	 Representations, Warranties and Covenants
	  	 	49	  
	 8.2
	  	 No Law or Governmental Orders
	  	 	49	  
	 8.3
	  	 Deliveries
	  	 	49	  
	 8.4
	  	 Consents
	  	 	49	  

  
 -ii-

							
	 8.5
	  	 Employees
	  	 	50	  
			
	 ARTICLE IX
	  	 POST-CLOSING COVENANTS
	  	 	50	  
			
	 9.1
	  	 Selling Parties Maintenance of Insurance
	  	 	50	  
	 9.2
	  	 Survival
	  	 	50	  
	 9.3
	  	 Indemnification
	  	 	51	  
	 9.4
	  	 Indemnification Procedures
	  	 	52	  
	 9.5
	  	 Limitation on Liability
	  	 	55	  
	 9.6
	  	 Calculation and Characterization of Damages
	  	 	55	  
	 9.7
	  	 Exclusive Remedy
	  	 	55	  
	 9.8
	  	 Mitigation of Damages
	  	 	56	  
	 9.9
	  	 Certain Damages
	  	 	56	  
	 9.10
	  	 Covenant Not to Compete
	  	 	56	  
			
	 ARTICLE X
	  	 MISCELLANEOUS
	  	 	57	  
			
	 10.1
	  	 Termination
	  	 	57	  
	 10.2
	  	 Assignment
	  	 	58	  
	 10.3
	  	 Cooperation
	  	 	58	  
	 10.4
	  	 Notices
	  	 	58	  
	 10.5
	  	 Governing Law
	  	 	59	  
	 10.6
	  	 Entire Agreement; Amendments and Waivers
	  	 	59	  
	 10.7
	  	 Counterparts
	  	 	60	  
	 10.8
	  	 No Third Party Beneficiaries; Expenses
	  	 	60	  
	 10.9
	  	 Severability
	  	 	60	  
	 10.10
	  	 Titles; Gender; Certain Interpretive Matters
	  	 	60	  
	 10.11
	  	 Publicity
	  	 	61	  
	 10.12
	  	 Exhibits and Schedules; Construction of Certain Provisions
	  	 	61	  
	 10.13
	  	 Bulk Transfer Laws
	  	 	61	  
	 10.14
	  	 Cumulative Remedies
	  	 	61	  
	 10.15
	  	 Arbitration
	  	 	62	  
	 10.16
	  	 Time of Essence
	  	 	62	  
	 10.17
	  	 Drafting
	  	 	62	  

  
 -iii-

 EXHIBITS 

 

					
	Exhibit A-1	  		    	Form of Inc. Assignment and Assumption Agreement
	Exhibit A-2	  		    	Form of Limited Assignment and Assumption Agreement
	Exhibit B-1	  	-	    	Form of Inc. Assignment of Contracts
	Exhibit B-2	  		    	Form of Limited Assignment of Contracts
	Exhibit C	  	-	    	Form of Assignment of Owned Intellectual Property
	Exhibit D	  	-	    	Form of Assignment and Assumption of Lease

  
 -iv-

 ASSET PURCHASE AGREEMENT 

THIS ASSET PURCHASE AGREEMENT, dated as of July 2, 2007, is by and among Avanir Pharmaceuticals, a California corporation
(“Parent”), Alamo Pharmaceuticals, LLC, a California limited liability company (“Seller” and together, the “Selling Parties”), and Azur Pharma Inc., a New York corporation (“Azur
Inc.”), and Azur Pharma International III Limited, a Bermuda limited liability company (“Azur Limited” and together with Azur Inc., “Buyer”). 

RECITALS 

WHEREAS, Seller is a pharmaceutical company focused on developing, acquiring and commercializing therapeutic products for the treatment
of chronic diseases, including a product known as FazaClo, an orally disintegrating tablet that addresses the adherence needs in patients with refractory schizophrenia; 
 WHEREAS, Seller is a wholly owned Subsidiary of Parent; and 
 WHEREAS, Buyer
desires to purchase from the Selling Parties, and the Selling Parties desire to sell to Buyer, certain assets relating to the Business (as defined in Section 1.1 below) and Buyer desires to assume from, and the Selling Parties desire to
transfer to Buyer, certain liabilities relating to the Business, in each case upon the terms and subject to the conditions of this Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing and
the respective representations, warranties, covenants and agreements of the parties contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Defined Terms. As used herein, the terms below
when used with an initial capital letter shall have the following meanings. Any of such terms, unless the context otherwise requires, may be used in the singular or plural, depending upon the reference. 

“Action” means any action, Claim, suit, litigation or other proceeding commenced, brought, conducted or heard by or
before, or otherwise involving, any Governmental Authority or arbitrator. 
 “Affiliate” has the meaning set
forth in Rule 12b-2 of the regulations promulgated under the Exchange Act. 

  
 1 

 “Agreement” means this Asset Purchase Agreement, including all exhibits and
schedules hereto (including the Disclosure Schedules), as the same may be amended, modified or supplemented from time to time in accordance with its terms. 
 “Ancillary Agreements” means, collectively, (a) the Assignment and Assumption Agreements, (b) the Assignments of Contracts, (c) the Assignment of Owned Intellectual
Property, (d) the Assignment and Assumption of Lease and (e) all other instruments, certificates and documents delivered by the parties pursuant to this Agreement, as each may be amended, modified or supplemented from time to time in
accordance with its terms. 
 “ANDA” means an Abbreviated New Drug Application, requesting permission to place
a generic drug product on the market in accordance with Section 505(j) (21 U.S.C. § 355(j)) of the Federal Food, Drug and Cosmetic Act. 
 “Assumed Liabilities” means all Liabilities, whether or not accruing, arising out of or relating to events or occurrences happening or conditions existing, before, on or after the Closing
Date, which relate directly or indirectly to the Business, other than Retained Liabilities. Without limiting the foregoing, Assumed Liabilities include: 
 (a) the UPA Payments; 
 (b) all rebates, chargebacks (including all
pricing allowances) and Product returns relating exclusively to the Business; 
 (c) all accounts payable and
accrued expenses relating exclusively to the Business; 
 (d) all payment and performance obligations of the
Selling Parties under the Business Contracts (including the lease under which Seller is the tenant and relating to the Facility, with respect to periods on and after the Closing Date); 

(e) the Assumed Tax Liabilities; 
 (f) except for Taxes to be paid by the Selling Parties under Section 2.6, all Liabilities, whether or not accrued, arising out of or relating to events or occurrences happening or conditions
occurring after the Closing, for any Tax that may be imposed by any Governmental Authority on the ownership, sale, operation or use of the Purchased Assets; and 
 (g) the Liabilities specified in Schedule 1.1(a). 
 “Assumed
Tax Liabilities” means all Liabilities for Taxes and fees with respect to the Purchased Assets for which Buyer is liable pursuant to Section 2.6 hereof. 
 “Business” means the business activities and operations of the Selling Parties involving the development, formulation, testing, production, licensing, commercialization and

  
 2 

 
distribution of the Product, including the development and maintenance of a patient registry and sub-registry with respect to the Product. 

“Business Contracts” means all executory Contracts between the Selling Parties or their Affiliates, on the one hand, and
a third party, on the other hand, relating exclusively to the operation of the Business, and all Contracts of the Business listed on Schedule 1.1(b) but in all events excluding the Contracts listed on Schedule 1.1(c).

 “Business Day” means any day other than Saturday, Sunday or any day that is a legal holiday or a day in
which banking institutions in Los Angeles, California are authorized by Law or other governmental action to close. 

“Business Employees” means employees of the Selling Parties or any of their Affiliates identified on
Schedule 1.1(d) attached hereto. 
 “Buyer Employees” means Business Employees who accept offers of
employment from Azur Inc. pursuant to Section 6.3(a) hereof. 
 “CERCLA” means the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601, et seq., as amended to date. 
 “CIMA Agreements” means, in each case as amended, supplemented or otherwise modified from time to time (a) that certain Amended and Restated Development, License and Supply
Agreement, dated as of August 22, 2005, by and between Cima Labs Inc. and Seller; (b) that certain Quality Agreement, dated as of December 29, 2003, by and between Cima Labs Inc. and Seller; and (c) that certain Feasability Plan
for Alamo Clozapine DuraSolv, dated as of May 2, 2005, by and between Cima Labs Inc. and Seller. 

“Claim” means any claim, demand, cause of action, chose in action, right of recovery or right of set-off of whatever
kind or description against any Person. 
 “Closing Net Working Capital Overage” shall exist when the Closing
Net Working Capital Estimate exceeds the Target Net Working Capital and shall be equal to the difference between the Closing Net Working Capital Estimate and the Target Net Working Capital. 

“Closing Net Working Capital Underage” shall exist when the Closing Net Working Capital Estimate is less than the Target
Net Working Capital and shall be equal to the difference between the Target Net Working Capital and the Closing Net Working Capital Estimate. 
 “Clozapine” or “clozapine” means the active ingredient in the currently marketed product known as FazaClo® and shall include 8-chloro-11-(4-methyl-l-piperaziny1)-5H-dibenzo(b,e)(1,4) diazepine and any salts, esters, metabolites, polymorphs, isomers, racemates, hydrates,
solvates, crystalline forms thereof and/or pro-drugs thereof. 

  
 3 

 “COBRA” shall mean the continuation coverage requirements set forth in
Sections 601 et seq. of the Employee Retirement Income Security Act of 1974 and Section 4980B of the Code. 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Confidentiality Agreement” means that certain confidentiality agreement dated March 13, 2007 by and between Azur
Pharma Limited and Seller. 
 “Contract” means all contracts, subcontracts, agreements, leases, licenses,
commitments, loan agreements, mortgages, security agreements, trust indentures, sales and purchase orders, statements of work, and other instruments, arrangements or understandings of any kind, including any amendments or alterations thereto.

 “Disclosure Schedules” means the disclosure schedules delivered by the Selling Parties to Buyer on the date
hereof which, among other things, set forth certain exceptions to the representations and warranties contained in Article IV. 
 “Domain Names” means the domain names listed on Schedule 1.1(e). 
 “Employee Records” means, with respect to Buyer Employees, copies of all job-related employment documents. 
 “Encumbrance” means any lien (including environmental and tax liens), pledge, charge, other security interest, easement, servient easement, reversion, reverter or purchase right.

 “Environmental Laws” means all Laws, as amended and now or hereafter in effect and as amended, and any
judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating to the environment (including ambient air, indoor air, surface water, ground water, land surface and subsurface
strata), health, safety, natural resources or Hazardous Substances, including CERCLA; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§ 6901 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C.
§§ 6901 et seq.; the Clean Water Act, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq.; the Clean Air Act, 42 U.S.C. §§ 7401
et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq. and the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 et seq. 

“ERISA” means the United States Employee Retirement Income Security Act of 1974 and the rules and regulations
promulgated thereunder. 
 “ERISA Affiliate” means any Person that, together with the Seller, would be deemed a
“single employer” within the meaning of Section 414 of the Code. 
 “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 

  
 4 

 “Excluded Assets” means any and all assets, properties, rights or interests
of the Selling Parties or their Affiliates that are not described in the definition of Purchased Assets. 

“Facility” means that certain facility used solely in connection with the Business and located in New Jersey.

 “FDA” means the United States Food and Drug Administration, or any successor agency thereto. 

“Federal Food, Drug and Cosmetic Act” means the Federal Food, Drug and Cosmetic Act of 1938, as amended. 

“Final Net Working Capital Overage” shall only exist when the Final Net Working Capital exceeds the Closing Net Working
Capital Estimate by more than Two Hundred Fifty Thousand Dollars ($250,000) and shall be equal to the difference between the Final Net Working Capital and the Closing Net Working Capital Estimate. 

“Final Net Working Capital Underage” shall only exist when the Final Net Working Capital is less than the Closing Net
Working Capital Estimate by more than Two Hundred Fifty Thousand Dollars ($250,000) and shall be equal to the difference between the Closing Net Working Capital Estimate and the Final Net Working Capital. 

“Fixtures and Equipment” means all of the computers (but not software), equipment, furniture, fixtures, furnishings,
machinery, vehicles and other tangible personal property owned or leased by the Selling Parties or their Affiliates and solely used in connection with the Business, including those items set forth on Schedule 1.1(f). 

“GAAP” means United States generally accepted accounting principles. 

“Governmental Authority” means any court, government (federal, state, local, foreign or multinational) or other
regulatory, administrative or governmental agency or authority. 
 “Governmental Order” means any judgment,
decision, consent decree, injunction, ruling, writ or order of or entered by any Governmental Authority that is binding on any Person or its property under applicable Law. 
 “Hazardous Substance” means petroleum, petroleum by-products, polychlorinated biphenyls, asbestos, or substances containing asbestos, mold and any other chemicals, compounds, constituents
materials, substances or wastes in any form regulated, or which can give rise to liability under any Environmental Law. 

“Inc. Assumed Liabilities” means all Assumed Liabilities other than the Limited Assumed Liabilities. 

  
 5 

 “Inc. Business Contracts” means all Business Contracts other than the
Limited Business Contracts. 
 “Inc. Purchased Assets” means all Purchased Assets other than the Limited
Purchased Assets. 
 “IND” means (a) the Investigational New Drug Application, as defined in the Federal
Food, Drug and Cosmetic Act and as it may be superseded or amended from time to time, and the regulations promulgated thereunder, which is required to be filed with the FDA before beginning clinical testing of a product in human subjects, or any
successor application or procedure, and (b) all supplements and amendments that may be filed in respect to the foregoing. 

“Intellectual Property” means (a) Know How, (b) trademarks (including service marks), trademark applications,
trade dress, logos, trademark rights, (c) United States, foreign and international patents and patent applications (including any divisionals, continuation, continuations in part), (d) copyrights, including registrations and applications
for registration thereof and (e) internet domain names. 
 “Inventory” means all of the Selling
Parties’ or any Affiliate’s inventory held for resale in the Business and all of the Selling Parties’ or any Affiliate’s raw materials, work in process or finished goods held for use in the Business, including the inventory set
forth on Schedule 1.1(g). 
 “Know How” means confidential specifications, processes, designs,
plans, trade secrets, manufacturing, engineering and other manuals and drawings, standard operating procedures, flow diagrams, safety, quality assurance and quality control information, data, invention disclosures, customer and supplier lists and
all other similar confidential technical and business information and data. 
 “Laws” means any laws, statutes,
ordinances, regulations, rules, executive orders, court decisions and orders of any Governmental Authority. 

“Liabilities” means any direct or indirect liability, indebtedness, obligation, commitment, expense, claim, deficiency,
guaranty or endorsement of or by any Person of any type, whether absolute or contingent, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, asserted or unasserted, known or unknown, whenever arising, including all costs and
expenses relating thereto, and including those liabilities, indebtedness and obligations arising under any Law, Action, threatened Action, Governmental Order or any award of any arbitrator of any kind, and those arising under any Contract,
commitment or undertaking. 
 “Licensing Revenues” means, with respect to the Product, the licensing revenues,
including royalties, actually received by the Buyer or any of its Affiliates from a Person (excluding any direct or indirect wholly-owned subsidiary of Azur Pharma Limited) pursuant to any sublicense agreement with such Person relating directly to
the Product in any territory 

  
 6 

 
outside the United States, reduced by (i) any royalty payments to CIMA Labs, Inc. pursuant to Seller’s current contractual obligations to CIMA Labs, Inc. for such payments,
(ii) any Net Non-US Licensing Revenues (as such term is defined in the Unit Purchase Agreement) payable pursuant to the Unit Purchase Agreement and (iii) any of such licensing revenues that are non-recurring milestone payments not based
upon Product sales. 
 “Licensed Intellectual Property” means the Intellectual Property subject to the
Licenses. 
 “Licenses” means the specific licenses and license rights set forth on
Schedule 1.1(h). 
 “Limited Assumed Liabilities” means the Assumed Liabilities consisting of
(i) the UPA Payments and (ii) those Assumed Liabilities identified in subsections (b) and (c) of the definition of Assumed Liabilities. 
 “Limited Business Contracts” means the CIMA Agreements and the Supply Agreements. 
 “Limited Purchased Assets” means all Transferred Intellectual Property, all Product Applications, all Product Registrations, all accounts receivable relating exclusively to the Business,
the Limited Business Contracts and all Inventory. 
 “Material Adverse Effect” means any event, circumstance or
occurrence that has had or that would be reasonably likely to have a material adverse change in, or material adverse effect on, the financial condition or results of operations of the Business, taken as a whole; provided that any such change or
effect resulting from (a) any change in general economic conditions or in the industries in which the Business operates, to the extent the Business is not disproportionately affected, (b) any change in Law, rule or regulation or GAAP or
interpretations thereof, or (c) the announcement or pendency of this Agreement, the Ancillary Agreements or the transactions contemplated hereby or thereby, shall not be considered when determining whether a Material Adverse Effect has
occurred. 
 “Most Recent Fiscal Month End” means May 31, 2007. 

“NDA” means a New Drug Application for any product, as appropriate, requesting permission to place a drug on the market
in accordance with the Federal Food, Drug and Cosmetic Act, and all supplements or amendments filed pursuant to the requirements of the FDA, including all documents, data and other information concerning a product which are reasonably necessary for
FDA approval to market a product in the United States. 
 “Net Sales” means, with respect to any period, the
sum (without duplication) of (i) the net sales of the Product in the Territory as would be shown in the consolidated financial statements of Buyer’s ultimate parent entity for such period, prepared in accordance with GAAP, (ii) the
net sales of the Product in the U.S. as would be shown in the consolidated financial statements for such period of any Person to which a sublicense directly related to the 

  
 7 

 
Product has been granted, prepared in accordance with GAAP and (iii) Licensing Revenues for such period. 
 “Net Sales Baseline” means Seventeen Million Dollars ($17,000,000); provided that, with respect to the calendar year ended December 31, 2007, the Net Sales Baseline shall be
Seventeen Million Dollars ($17,000,000) multiplied by the number of days between the Closing Date and December 31, 2007 and divided by 365. 
 “Net Working Capital” means (i) the value of Inventory, plus (ii) accounts receivable (less any reserves for uncollectibility and payment discounts), plus (iii) current
prepaid expenses related to the Business minus (iv) accounts payable to be assumed by Buyer under this Agreement, minus (v) all accrued expenses, including rebates, chargebacks, Product returns (relating exclusively to Products sold prior
to the Closing Date) and all other pricing allowances (but excluding accrued compensation expenses), with each amount determined in accordance with GAAP applied on a basis consistent with the past practices of Parent. For purposes of this Agreement,
Net Working Capital shall, in all events, exclude cash, fixed assets, deferred tax assets, goodwill, intangible assets and long term debt. 
 “Ordinary Course of Business” or “Ordinary Course” or any similar phrase means the ordinary course of the business conducted by the Selling Parties or any Affiliate with
respect to the Business consistent with past practice (including with respect to quantity and frequency). 
 “Owned
Intellectual Property” means all Intellectual Property owned by the Selling Parties that is exclusively used in the Business, including (i) the Product Trademarks, (ii) the Patent Rights, (iii) the Domain Names and
(iv) the other Intellectual Property set forth on Schedule 1.1(i). Included within Owned Intellectual Property shall be the right to sue for past infringement thereof. 

“Patent Rights” means the patents, patent applications (including any divisionals, continuation, continuations-in-part)
and patent rights set forth on Schedule 1.1(j). 
 “Permits” means permits, licenses, franchises
and other governmental authorizations, consents and approvals. 
 “Permitted Encumbrances” means
(a) Encumbrances imposed by Law, such as carriers’, cashiers’, workmen’s, warehousemen’s, repairmen’s, mechanics’, materialmen’s, landlords’, laborers’, suppliers’ and vendors’ liens
securing obligations which are not yet due or which are being contested in good faith, (b) Permitted Tax Liens, (c) other Encumbrances which do not materially detract from the value of, materially interfere with, or otherwise individually
or collectively materially adversely affect the present use and enjoyment of the asset or property subject thereto or affected thereby, (d) any extensions, renewals and replacements of any of the foregoing and (e) any of the foregoing
disclosed in the Disclosure Schedules. 

  
 8 

 “Permitted Tax Liens” means (a) Encumbrances securing the payment of
Taxes which are being contested in good faith by appropriate proceedings and (b) Encumbrances for current Taxes not yet due and payable. 
 “Person” means an individual, a partnership, a corporation, a limited liability company, a trust, an unincorporated organization, a Governmental Authority or any department or agency
thereof. 
 “Post-Closing Net Working Capital” means the Net Working Capital reflected on the Statement of
Post-Closing Net Working Capital. 
 “Product” means, individually and collectively, the orally disintegrating
pharmaceutical products that address the adherence needs in patients with refractory schizophrenia (and all improvements to and formulations thereof) currently marketed and sold in the United States pursuant to New Drug Application No. 21-590
(or the foreign equivalent thereof) under the Product Trademarks and, for the avoidance of doubt, includes the licenses applicable to the DuraSolv and OraSolv formulations. 
 “Product Applications” means (i) the application for approval or registrations by the Selling Parties and its Affiliates, for the investigation, sale, distribution and/or marketing
of the Product in the Territory set forth on Schedule 1.1(k), and (ii) all dossiers, reports, data and other written materials prepared by or filed as part of such applications for approvals or registrations, or maintained by the Selling
Parties and its Affiliates and relating to such applications for approvals or registrations. 
 “Product
Records” means to the extent permitted by Law, all existing books and records related solely to the conduct of the Business, including copies of all material customer and supplier lists, account lists, sales history, marketing studies,
consultant reports, registry, subregistry and correspondence (excluding invoices) with respect to the Product or the Business to the extent maintained by the Selling Parties, all annual reports and adverse event reports, correspondence with the FDA
or any equivalent foreign Governmental Authority (to the extent maintained by the Selling Parties), exception reports, specifications for raw materials and, to the extent maintained by the Selling Parties, FDA or any equivalent foreign Governmental
Authority communication thereon, communication relating to manufacturing or packaging with any of the FDA or any equivalent foreign Governmental Authority, vendors or suppliers, and all complaint files and adverse event files with respect to the
Product, provided, however, that (a) the Selling Parties may retain (i) a copy of any such books and records to the extent necessary for Tax, accounting, litigation or other valid business purposes and (ii) a copy of all
books, documents, records and files maintained by the Selling Parties and/or its Representatives, agents or licensees in connection with their respective Tax, legal, regulatory or reporting requirements, and (b) the following shall be excluded
from Product Records (i) attorney work product, attorney-client communications and other items protected by privilege, (ii) Employee Records and (iii) all books, documents, records and files prepared in connection with the Agreement
and the Ancillary Agreements, including bids received 

  
 9 

 
from other parties and strategic, financial or Tax analyses relating to the divestiture of the Purchased Assets, the Assumed Liabilities, the Product and the Business. 

“Product Registrations” means (i) the approvals or registrations which have been received by the Selling Parties or
their Affiliates, for the investigation, sale, distribution and/or marketing of the Product or a current Product improvement in the Territory (including any NDAs, INDs and other relevant applications/approvals), including those approvals and
registrations set forth on Schedule 1.1(l), and (ii) all dossiers, reports, data and other written materials filed as part of such approvals or registrations, or maintained by the Selling Parties and their Affiliates and
relating to such approvals or registrations. 
 “Product Trademarks” means trademarks (including service
marks), trademark applications, trade dress, logos and trademark rights as set forth on Schedule 1.1(m). 

“Purchased Assets” means all of the Selling Parties’ or any of their Affiliate’s right, title and interest in
and to only the following properties: 
 (a) all assets listed on Schedule 1.1(n) hereto; 

(b) all Inventory; 
 (c) all Business Contracts; 
 (d) all Fixtures and Equipment;

 (e) the Permits set forth on Schedule 1.1(o); 

(f) the Transferred Intellectual Property; 

(g) all Product Applications and Product Registrations; 

(h) the Software; 
 (i) all accounts receivable relating exclusively to the Business; and 
 (j) the Product Records, including those Product Records set forth on Schedule 1.1(p), other than to the extent they contain information, data, Know-How or trade secrets of the Selling Parties not
used in the Business. Notwithstanding the foregoing, the Purchased Assets shall not include any of the Excluded Assets. 

“Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping or disposing of a Hazardous Substance into the environment. 
 “Representative” means, with respect to
any Person, any officer, director, principal, attorney, agent, employee or other authorized representative of such Person. 

  
 10 

 “Retained Liabilities” means the following, and only the following,
Liabilities of the Selling Parties or any Affiliates relating to the Business, which, notwithstanding any other provision of this Agreement, will not be assumed by Buyer: 

(a) all Liabilities of the Selling Parties to the extent relating to Excluded Assets; 

(b) all Liabilities of the Selling Parties for Taxes incurred, or arising out of the operation of the Business through the
Closing, other than Liabilities that are apportioned to Buyer pursuant to Section 2.6 hereof; 
 (c)
all Liabilities arising out of, relating to or in connection with any Action involving the Purchased Assets which was asserted before the Closing; 
 (d) the notes in the original principal amount of $6.675 million, $14.4 million, $4 million, and $2 million (Alternate Contingent Note 1) each with Avanir as Payor and Neal R. Cutler as note holder,
as described in Section 1.04(d)(ii) of the Unit Purchase Agreement; 
 (e) the Subsequent Run Rate
Contingent Payment (that is dependent upon achieving $1.5 million of Net Product Revenues (as defined in the Unit Purchase Agreement) for three (3) consecutive months within a fiscal quarter), as more clearly described in the Unit Purchase
Agreement, and all other obligations and liabilities relating to the Unit Purchase Agreement (other than the UPA Payments); 
 (f) all Liabilities under the Selling Parties Plans, except as otherwise set forth in Section 6.3 hereof; 

(g) subject to Section 6.3 hereof, all Liabilities for wages, pensions, incentive compensation, equity
compensation, severance, COBRA, retiree or other benefits, overtime, workers compensation benefits, occupational safety and health liabilities and other similar Liabilities in respect of Buyer Employees relating to the period through the Closing and
in respect of employees of the Selling Parties or their Affiliates who are not Buyer Employees, whether relating to the period before or after the Closing; 
 (h) all Liabilities of the Selling Parties for costs and expenses (including legal fees and expenses) that the Selling Parties have incurred in connection with this Agreement and the transactions
contemplated hereby; 
 (i) all Liabilities resulting from any material quality, design manufacture or safety
defect in any Product sold prior to the Closing Date, whether used prior to or after the Closing Date; and 
 (j)
any liability or obligation of the Selling Parties under this Agreement and the Ancillary Agreements. 

  
 11 

 “Sales Percentage Amount” means three percent (3%) multiplied by the
difference between (a) the Net Sales minus (b) the Net Sales Baseline. 
 “Selling Parties Plans”
means any bonus, deferred compensation, pension, retirement, profit-sharing, thrift, savings, employment, termination, retention, severance, compensation, life insurance, retiree health benefits, workers’ compensation, medical, health or other
plans, agreements, policies or arrangements that cover the Business Employees, whether offered by the Selling Parties or any of their Affiliates. 
 “Software” means the computer software and programs set forth on Schedule 1.1(q). 
 “Supply Agreements” means, in each case as amended, supplemented or otherwise modified from time to time, (a) that certain Clozapine Supply Agreement, dated June 1, 2005, by and
among Betachem, Inc., Medichem, S.A. and Seller; (b) that certain Packaging Agreement, dated as of January 13, 2005, by and between Cardinal Health PTS, LLC and Seller; (c) that certain Quality Agreement, dated as of June 22,
2004, by and between Cardinal Health PTS, LLC and Seller; (d) that certain Exclusive Distribution Agreement, dated as of July 29, 2004, by and between Cardinal Health PTS, LLC and Seller; and (e) that certain Technical Test Protocol,
designated TTP-AHJ-M0004.00, titled “Retain Storage of Fazaclo Tablets” by and between Cardinal Health PTS, LLC and Seller. 
 “Target Net Working Capital” means a Net Working Capital of Zero Dollars ($0). 
 “Tax or Taxes” means all taxes (including franchise taxes), charges, fees, levies or other assessments imposed by any Taxing Authority and based on or measured solely with respect to net
income or profits, including any interest, penalties or additions attributable or imposed with respect thereto, and all taxes, charges, levies, fees or other assessments, including transfer, gross receipt, sales, use, service, occupation, ad
valorem, property, payroll, personal property, excise, severance, premium, stamp, documentary, license, registration, social security, employment, unemployment, disability, environmental (including taxes under Section 59A of the Code), add-on,
value-added, withholding (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return therefor), commercial rent and occupancy taxes, and any estimated taxes, deficiency assessments, interest, penalties and
additions to tax or additional amounts in connection therewith, imposed by any Taxing Authority, and including any obligation to indemnify or otherwise assume or succeed to the Tax Liability of any other Person. 

“Tax Return” means any return, report or similar statement or form required to be filed with respect to any Tax
(including any attached schedules and related or supporting information), including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax. 

  
 12 

 “Taxing Authority” means any Governmental Authority responsible for the
imposition of any Tax or exercising Tax regulatory authority. 
 “Transferred Intellectual Property” means all
Owned Intellectual Property and all Licenses. 
 “Unit Purchase Agreement” means that certain Unit Purchase
Agreement by and among the Selling Parties and certain other parties listed therein, dated as of May 22, 2006. 

“UPA Payments” means the Contingent Payments and the Non-U.S. Licensing Earn-Out Payments, as such terms are defined in
the Unit Purchase Agreement, including all reporting obligations related thereto. 
 1.2 Other Defined Terms. The
following terms shall have the meanings defined for such terms in the Sections set forth below: 
  

			
	 Term
	  	Section
		
	 Accounting Firm
	  	2.8(c)
	 Assignment and Assumption Agreements
	  	3.2(a)(i)
	 Assignment and Assumption of Lease
	  	3.2(a)(iv)
	 Assignments of Contracts
	  	3.2(a)(ii)
	 Assignment of Owned Intellectual Property
	  	3.2(a)(iii)
	 Buyer Indemnified Parties
	  	9.3(a)
	 Buyer Plans
	  	6.3(c)
	 Buyer Welfare Plans
	  	6.3(d)
	 Claim Notice
	  	9.4(a)
	 Closing
	  	3.1
	 Closing Date
	  	3.1
	 Closing Net Working Capital Estimate
	  	2.8(a)
	 Contingent Cash Purchase Price
	  	2.3
	 Contingent Payment Quarterly Report
	  	Unit Purchase
Agreement
	 Damages
	  	9.3(a)
	 Deductible Amount
	  	9.5(a)
	 Final Net Working Capital
	  	2.8(c)
	 Inc. Purchase Price Allocation Schedule
	  	2.5(a)
	 Inc. Up-Front Cash Purchase Price
	  	2.3(b)
	 Indemnified Party
	  	9.4(a)
	 Indemnifying Party
	  	9.4(a)
	 Indemnity Notice
	  	9.4(b)
	 Limited Purchase Price Allocation Schedule
	  	2.5(a)
	 Limited Up-Front Cash Purchase Price
	  	2.3(a)
	 Material Contracts
	  	4.7(a)
	 Notice of Disagreement
	  	2.8(c)

  
 13 

			
	 Term
	  	Section
		
	 Purchase Price
	  	2.3(b)
	 Reimbursement
	  	9.6(a)
	 Sales Percentage Amount Dispute Notice
	  	2.4(b)
	 Selling Parties
	  	Preamble
	 Seller Indemnified Parties
	  	9 .3 (b)
	 Selling Parties Welfare Plans
	  	6.3(d)
	 SOL Representations and Warranties
	  	9.2(b)
	 Statement of Post-Closing Net Working Capital
	  	2.8(b)
	 Surviving Covenants
	  	9.2(c)
	 Territory
	  	9.10
	 Third-Party Claim
	  	9.4(a)
	 Transfer Fees
	  	2.6
	 Up-Front Cash Purchase Price
	  	2.3
	 WARN Act
	  	6.3(e)

 1.3 Seller Knowledge. Whenever a phrase herein is qualified by “to the knowledge of
Seller” or a similar phrase, it shall mean, with respect to a fact, (a) the current actual knowledge of any of the following individuals: Keith Katkin, Michael Puntoriero, Greg Flesher, Matt Ruth, Eric Benevich, Randall Kaye, Mike Cruse,
Susan Work and Laura Randa-King and (b) the knowledge of such individuals obtained after making an inquiry of their direct reports or current counsel or consultants of Parent most likely to have knowledge of such fact; provided,
however, that with respect to this subsection (b), with respect to facts related to the Licensed Intellectual Property, the knowledge of Seller shall only relate to facts of which the foregoing individuals have been informed of by the
applicable licensor. 
 ARTICLE II 
 PURCHASE AND SALE OF ASSETS 
 2.1 Transfer of Assets. 

(a) Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, the Selling Parties shall sell, convey,
transfer, assign and deliver to Azur Limited, and Azur Limited shall purchase and acquire from the Selling Parties, the Selling Parties’ right, title and interest in and to the Limited Purchased Assets free and clear of all Encumbrances, except
for Permitted Encumbrances, for the consideration specified below in Section 2.3(a). 
 (b) Upon the terms and
subject to the conditions set forth in this Agreement, at the Closing, the Selling Parties shall sell, convey, transfer, assign and deliver to Azur Inc. the Inc. Purchased Assets free and clear of all Encumbrances, except for Permitted Encumbrances,
for the consideration specified below in Section 2.3(b). 
 2.2 Assumption of Liabilities. 

  
 14 

 (a) Upon the terms and subject to the conditions set forth in this Agreement, at the
Closing, Azur Limited shall assume, pay and perform and discharge in due course the Limited Assumed Liabilities. Azur Limited shall take, or cause to be taken, all actions necessary to cause the assumption at the Closing Date by Azur Limited of the
Limited Assumed Liabilities, including the execution and delivery at the Closing of the Limited Assignment and Assumption Agreement. 
 (b) Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Azur Inc. shall assume, pay, perform and discharge in due course the Inc. Assumed Liabilities. Azur Inc. shall
take, or cause to be taken, all actions necessary to cause the assumption on the Closing Date by Azur Inc. of the Inc. Assumed Liabilities, including the execution and delivery at the Closing of the Inc. Assignment and Assumption Agreement.

 2.3 Purchase Price. (a) The purchase price for the Limited Purchased Assets (the “Limited Purchase
Price”) shall be an amount equal to the sum of (a) (i) Forty Million Seven Hundred Thousand Dollars ($40,700,000) plus (ii) the Closing Net Working Capital Overage, if any, minus (iii) the Closing Net Working Capital
Underage, if any (the sum of the foregoing “(i)”, “(ii)” and “(iii)”, the “Limited Up-Front Cash Purchase Price”), payable in cash at the Closing, plus (b) Four Million Dollars ($4,000,000) payable
on May 1, 2009 (the “First Contingent Payment”), plus (c) Six Million Dollars ($6,000,000) payable on December 31, 2009 (the “Second Contingent Payment” and, together with the First Contingent
Payment, the “Contingent Cash Purchase Price”) plus (d) the Sales Percentage Amount, payable as set forth in Section 2.4, plus (e) the assumption of the Limited Assumed Liabilities. Notwithstanding the
foregoing, Azur Limited shall have no obligation to make the First Contingent Payment and/or the Second Contingent Payment in the event that on or before the date such payment is otherwise required to be made Buyer provides (i) notice to the
Selling Parties, together with reasonable supporting documentation, that an ANDA using the Product as the referenced listed drug has been filed with, and accepted by, the FDA and (ii) a certificate executed by an executive officer of Azur
Pharma Limited certifying that Buyer and its Affiliates have at all times been in compliance with the covenant set forth in Section 6.16. If on or prior to September 30, 2010, Buyer provides (i) a certificate executed by an
executive officer of Azur Pharma Limited certifying that Buyer and its Affiliates have at all times been in compliance with the covenant set forth in Section 6.16 and (ii) notice to the Selling Parties, together with reasonable
supporting documentation, that an ANDA using the Product as the referenced listed drug has been filed with, and accepted by, the FDA prior to (y) the date the First Contingent Payment was required to be paid, the Selling Parties shall, within
ten (10) Business Days after the receipt of such notice, remit the First Contingent Payment to Azur Limited and/or (z) the date the Second Contingent Payment was required to be paid, the Selling Parties shall, within ten (10) Business
Days after the receipt of such notice, remit the Second Contingent Payment to Azur Limited. 
 (b) The purchase price for the
Inc. Purchased Assets (the “Inc. Purchase Price” and together with the “Limited Purchase Price,” the “Purchase Price”) shall be an 

  
 15 

 
amount equal to One Million Three Hundred Thousand Dollars ($1,300,000) (the “Inc. Up-Front Cash Purchase Price”) plus the assumption of the Inc. Assumed Liabilities. 

2.4 Payment of Sales Percentage Amount. 
 (a) Until such time as Azur Limited has paid to Parent an aggregate Sales Percentage Amount equal to Two Million Dollars ($2,000,000), Azur Limited shall pay to Parent the Sales Percentage Amount in
respect of each prior calendar year (or with respect to the calendar year ended December 31, 2007, the portion of such calendar year between the Closing Date and December 31, 2007), if any. The Sales Percentage amount in respect of a
calendar year, if any, shall be due and payable concurrently with the delivery of the Contingent Payment Quarterly Report to the Selling Parties pursuant to Section 6.14, delivered pursuant to the Unit Purchase Agreement for the quarter
ending December 31 of such prior calendar year. 
 (b) Not more than one (1) time during each calendar year, the
Selling Parties and their Representatives shall have the right, at their sole cost and expense, to audit the Net Sales during the eight (8) fiscal quarters preceding the commencement of such audit to the extent such fiscal quarters have not
previously been audited by the Selling Parties. Following such audit or review of the materials supporting the preparation of a Contingent Payment Quarterly Report, the Selling Parties shall have the right to dispute one or more Contingent Payment
Quarterly Reports covered by such audit that it reasonably believes contain any errors. If the Selling Parties elect to dispute one or more such Contingent Payment Quarterly Reports, in whole or in part, then the Selling Parties shall provide a
written notice to Azur Limited specifying in reasonable detail its objections thereto (“Sales Percentage Amount Dispute Notice”). Promptly following receipt by Azur Limited of any Sales Percentage Amount Dispute Notice from the
Selling Parties, Azur Limited and the Selling Parties shall attempt to reconcile their differences, and any resolution by them as to any disputed amounts shall be final, binding and conclusive on the parties hereto. If the Selling Parties and Azur
Limited are unable to reach a resolution with such effect within twenty (20) Business Days after the receipt by Azur Limited of the Sales Percentage Amount Dispute Notice, the Selling Parties and Azur Limited shall submit the items remaining in
dispute for resolution to the Accounting Firm, which shall, within thirty (30) days after such submission, determine and report to the Selling Parties and Azur Limited upon such remaining disputed items, and such report shall be final, binding
and conclusive on the Selling Parties and Azur Limited. The fees and disbursements of any accounting firm retained by the Selling Parties or Azur Limited to assist it in any dispute regarding any Contingent Payment Quarterly Report, together with
the fees and expenses of the Accounting Firm, shall be borne by the Selling Parties if an adjustment to the Sales Percentage Amount for the period under dispute is less than five percent (5%) of the Sales Percentage Amount reported for such
prior calendar year. Otherwise, the fees and disbursements of any accounting firm retained by the Selling Parties or Azur Limited to assist it in any dispute regarding any Contingent Payment Quarterly Report, together with the fees and expenses of
the Accounting Firm, shall be borne by Azur Limited. 

  
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 2.5 Allocation of Purchase Price. 

(a) The Limited Purchase Price shall be allocated among the Limited Purchased Assets in accordance with Schedule 2.5(a)(i) hereof,
as revised pursuant to Section 2.5(b) hereof (the “Limited Purchase Price Allocation Schedule”), and the Inc. Purchase Price shall be allocated among the Inc. Purchased Assets in accordance with Schedule
2.5(a)(ii) hereof (the “Inc. Purchase Price Allocation Schedule”). The Selling Parties and Azur Limited shall prepare mutually acceptable and substantially identical IRS Forms 8594 “Asset Acquisition Statements Under
Section 1060” consistent with the Limited Purchase Price Allocation Schedule and the Selling Parties and Azur Inc. shall prepare mutually acceptable and substantially identical IRS Forms 8594 consistent with the Inc. Purchase Price
Allocation Schedule, which forms the parties shall use to report the transactions contemplated by this Agreement to the applicable Taxing Authorities. Each of the Selling Parties and Buyer agrees to provide the other promptly with any other
information required to complete IRS Form 8594. Except as otherwise required by a “determination” within the meaning of Section 1313(a) of the Code, the Selling Parties and Buyer agree not to take any position inconsistent with that
allocation on their respective Tax Returns or during any audit, examination or other administrative or judicial proceeding. 

(b) Within thirty (30) days after the determination of the Final Working Capital, the Selling Parties shall prepare and deliver to
Azur Limited an amended Limited Purchase Price Allocation Schedule prepared in accordance with Schedule 2.5(a)(i) hereof and Section 1060 of the Code and the regulations thereunder that reflects (i) the Final Working Capital
and (ii) any adjustments in the allocation of the initial Limited Purchase Price and Limited Assumed Liabilities among the Limited Purchased Assets reasonably necessary to reflect changes in the Limited Purchased Assets between the date hereof
and the Closing Date. 
 2.6 Closing Costs; Transfer Taxes and Fees. Buyer, on the one hand, and the Selling Parties, on
the other hand, shall each pay half (1/2) of (a) all U.S. sales, use, transfer and other Taxes and fees, if any, imposed by reason of the transfer of the Purchased Assets and the assumption of the Assumed Liabilities provided hereunder
(and any deficiency, interest or penalty asserted with respect thereto), and (b) all recording, filing and registration fees or other charges in connection with or as a direct result of the transfer of the Purchased Assets (the foregoing a
“Transfer Fee” and collectively, the “Transfer Fees”). At Closing, upon the delivery by Buyer of reasonable documents identifying such Transfer Fees, the Selling Parties’ half of the Transfer Fees shall be deducted
from the Limited Up-Front Cash Purchase Price, to the extent that such Transfer Fees relate to the Limited Purchased Assets, and the Inc. Up-Front Cash Purchase Price, to the extent that such Transfer Fees relate to the Inc. Purchased Assets. Azur
Limited shall pay all non-U.S. sales, use, transfer and other Taxes and fees, if any, imposed by reason of the transfer of the Limited Purchased Assets and the assumption of the Limited Assumed Liabilities provided hereunder. Azur Inc. shall pay all
non-U.S. sales, use, transfer and other Taxes and fees, if any, imposed by reason of the transfer of the Inc. Purchased Assets and the assumption of Assumed Liabilities other than Limited Assumed Liabilities. Buyer shall provide the Selling Parties
with any documentation that would 

  
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exempt Buyer from or reduce sales, use, transfer and other Taxes and shall file all necessary documentation and Tax Returns required to be filed by Buyer with respect to such Transfer Fees, and
the Selling Parties shall reasonably cooperate upon Buyer’s request. 
 2.7 Further Assurances. Upon the terms and
subject to the conditions contained herein, the parties agree, both before and after the Closing, (i) to use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper
or advisable to consummate and make effective the transactions contemplated by this Agreement, including using commercially reasonable efforts to satisfy the conditions precedent to each party’s obligations hereunder, (ii) to execute any
documents, instruments or conveyances of any kind which may be reasonably necessary or advisable to carry out any of the transactions contemplated hereunder and (iii) to cooperate with each other in connection with the foregoing. In furtherance
and not in limitation of the foregoing, each party hereto agrees (1) to file all necessary applications for all necessary Governmental Approvals with the appropriate Governmental Authority with respect to the transactions contemplated hereby as
promptly as practical after the date hereof, (including the FDA transfer of ownership letters with respect to the transfer of the NDAs with respect to the Products from the Selling Parties to Buyer), and (2) to use commercially reasonable
efforts to obtain from any Governmental Authority any non-actions, clearances, waivers, consents, approvals, authorizations, permits or orders required to be obtained in connection with the execution and performance of this Agreement or the
transactions contemplated by this Agreement. 
 2.8 Determination of Net Working Capital. 

(a) At least one (1) Business Day prior to the Closing Date, the Selling Parties shall deliver to Buyer a certificate signed by an
executive officer of Parent, stating the estimated Net Working Capital as of the Closing Date, prepared using the same principles as the unaudited statement of net assets as of May 31, 2007 described in Section 4.4 (the
“Closing Net Working Capital Estimate”) and, if any, the resulting Closing Net Working Capital Overage (which amount shall be used in determining the Limited Up-Front Cash Purchase Price), or the resulting Closing Net Working
Capital Underage (which amount shall be used in determining the Limited Up-Front Cash Purchase Price), together with related supporting schedules, calculations and documentation. 

(b) Prior to the fifth (5th) month anniversary of the Closing Date, Buyer shall review the records and inventory of the Business to determine
the Net Working Capital existing as of the Closing Date and deliver a statement of Net Working Capital to the Selling Parties and Buyer signed by an executive officer of Buyer’s ultimate parent (the “Statement of Post-Closing Net
Working Capital”). The Statement of Post-Closing Net Working Capital shall set forth the Net Working Capital, including a detailed breakdown of the various amounts of each component of Net Working Capital at the Closing Date, prepared using
the same principles as the unaudited statement of net assets as of May 31, 2007 described in Section 4.4, but taking into account additional information that becomes available or events occurring after the Closing Date and prior to
the preparation of the Statement of Post-Closing Net Working Capital. 

  
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 (c) Within thirty (30) days following the Buyer’s delivery of the Statement of
Post Closing Net Working Capital, Parent shall deliver written notice (the “Notice of Disagreement”) to Buyer of any dispute Parent has with respect to the preparation or content of the Statement of Post Closing Net Working Capital,
including the Post Closing Net Working Capital. The Notice of Disagreement shall describe in reasonable detail the items contained in the Statement of Post Closing Net Working Capital that Parent disputes and the basis for any such disputes. If
Parent does not notify Buyer of a dispute with respect to the Statement of Post Closing Net Working Capital within such 30-day period, such Statement of Post Closing Net Working Capital shall be final, conclusive and binding on the parties and the
Post Closing Net Working Capital reflected thereon shall become the “Final Net Working Capital.” In the event a Notice of Disagreement is delivered to Buyer, Buyer and Parent shall negotiate in good faith to resolve such dispute and
agree upon the “Final Net Working Capital.” If Buyer and Parent, notwithstanding such good faith effort, fail to resolve such dispute within fourteen (14) days after Parent delivers the Notice of Disagreement, then Buyer and
Parent jointly shall engage a U.S. accounting firm of national reputation as is reasonably acceptable to Buyer and Parent that has not provided services to either of Buyer or its Affiliates or the Selling Parties or their Affiliates during the prior
three (3) years (the “Accounting Firm”) to resolve such dispute in accordance with the standards set forth in this Section 2.8. Parent and Buyer shall use commercially reasonable efforts to cause the Accounting Firm
to render a written decision resolving the matters submitted to the Accounting Firm within thirty (30) days after the making of such submission. The Accounting Firm shall address only those items in dispute. The Accounting Firm shall determine,
on such basis, whether and to what extent, the Post Closing Net Working Capital or Closing Net Working Capital Estimate require adjustment, which de-termination shall be consistent with either the position of Buyer or the position of Parent or
between the positions of Buyer and Parent and the amount determined by the Accounting Firm shall become the “Final Net Working Capital.” Judgment may be entered upon the determination of the Accounting Firm in any court having
jurisdiction over the party against which such determination is to be enforced. All determinations made by the Accounting Firm will be final, conclusive and binding on the parties. Buyer and/or Parent shall share the fees and expenses of the
Accounting Firm proportionately based on which party’s position was closer to the determination by the Accounting Firm. 

(d) If there is a Final Net Working Capital Overage, then, within five (5) Business Days after the determination of the Final Net
Working Capital, Azur Limited shall pay to the Selling Parties an amount equal to the Final Net Working Capital Overage by wire transfer to an account designated by Parent. 
 (e) If there is a Final Net Working Capital Underage, then, within five (5) Business Days of the determination of the Final Working Capital the Selling Parties shall pay to Azur Limited an amount
equal to the Final Net Working Capital Underage by wire transfer to an account designated by Azur Limited. 
 (f) Any amount
payable by Buyer to the Selling Parties or by the Selling Parties to Buyer pursuant to Section 2.8(d) or Section 2.8(e) shall constitute an adjustment to the Purchase Price. 

  
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 (g) For purposes of complying with the terms set forth in this Section 2.8, each
party shall cooperate with and make available to the other parties and their respective representatives all information, records, data and working papers, and shall permit reasonable access to its facilities and personnel, as may be reasonably
required in connection with the preparation and analysis of the Closing Net Working Capital Estimate and the Statement of Post Closing Net Working Capital. 
 2.9 Withholding Tax. Solely to the extent required by Law, Buyer shall be entitled to deduct and withhold, or cause to be deducted and withheld, the applicable Taxes from the amounts otherwise
payable pursuant to this Agreement. To the extent that amounts are so withheld, they shall be treated for all purposes of this Agreement as having been paid to the Person for whom such deduction and withholding was made. 

ARTICLE III 

CLOSING 
 3.1 Closing. Unless this Agreement shall have been terminated in accordance with Section 10.1 hereof, the closing of the purchase and sale of the Purchased Assets, the assumption of the
Assumed Liabilities and the consummation of the other transactions contemplated herein relative thereto (the “Closing”) shall be held at 8:00 a.m. Pacific time at 101 Enterprise, Suite 300, Aliso Viejo, California on the
later of (a) the thirtieth (30th) day after the
date of this Agreement or (b) the third
(3rd) Business Day following the satisfaction or
waiver of all of the conditions precedent to the obligations of the parties set forth in Articles VII and VIII (other than conditions which are not capable of being satisfied until the Closing, but subject to the fulfillment or waiver
of those conditions at the Closing) (the “Closing Date”), unless the parties hereto otherwise agree in writing. 
 3.2 Deliveries at Closing. 
 (a) To effect the transactions contemplated
hereby, the Selling Parties shall, at the Closing, deliver to Buyer, or cause to be delivered to Buyer (unless previously delivered): 
 (i) (x) an instrument of assignment and assumption in substantially the form attached hereto as Exhibit A-1 conveying to Azur Inc. the owned tangible personal property included in the Inc.
Purchased Assets and assumption by Azur Inc. of the Inc. Assumed Liabilities (the “Inc Assignment and Assumption Agreement”), and (y) an instrument of assignment and assumption in substantially the form attached hereto as
Exhibit A-2 conveying to Azur Limited the owned tangible personal property included in the Limited Purchased Assets and assumption by Azur Limited of the Limited Assumed Liabilities (the “Limited Assignment and Assumption
Agreement”), each duly executed by the Selling Parties (collectively, the “Assignment and Assumption Agreements”); 

  
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 (ii) subject to Section 3.3 hereof, (x) an assignment and assumption
document in substantially the form attached hereto as Exhibit B-1 assigning the Inc. Business Contracts to Azur Inc. (the “Inc Assignment of Contracts”), and (y) an assignment and assumption document in
substantially the form attached hereto as Exhibit B-2 assigning the Limited Business Contracts to Azur Limited (the “Limited Assignment of Contracts”, duly executed by the Selling Parties (collectively, the
“Assignments of Contracts”); 
 (iii) an assignment of the Intellectual Property in substantially the form
attached hereto as Exhibit C (the “Assignment of Owned Intellectual Property”), duly executed by the Selling Parties; 
 (iv) an assignment and assumption of lease in substantially the form attached hereto as Exhibit D (the “Lease Assignment”), duly executed by Seller; 

(v) counterparts to any other Ancillary Agreements, duly executed by Parent or Seller or other Person, as applicable; 

(vi) a certificate from each of Seller and Parent, dated as of the Closing Date, stating that such Person is not a “foreign
person” within the meaning of Section 1445(b)(2) of the Code; and 
 (vii) the certificates and other documents
required to be delivered at Closing as described in Article VIII, duly executed by the Selling Parties, as applicable. 
 (b) To effect the transactions contemplated hereby, Buyer shall, at the Closing, deliver to the Selling Parties, or cause to be delivered to the Selling Parties (unless previously delivered): 

(i) an amount in cash equal to the Inc. Up-Front Cash Purchase Price, payable by Azur Inc., and an amount in cash equal to the Limited
Up-Front Cash Purchase Price payable by Azur Limited, each by wire transfer of immediately available funds to an account designated in writing by Parent; 
 (ii) a counterpart to the Inc Assignment and Assumption Agreement, duly executed by Azur Inc., and a counterpart to the Limited Assignment and Assumption, duly executed by Azur Limited; 

(iii) a counterpart to the Inc Assignment of Contracts, duly executed by Azur Inc., and a counterpart to the Limited Assignment of
Contracts, duly executed by Azur Limited; 
 (iv) a counterpart to the Assignment of Owned Intellectual Property, duly executed
by Azur Limited; 

  
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 (v) a counterpart to the Assignment and Assumption of Lease duly executed by Azur Inc.;

 (vi) counterparts to any other Ancillary Agreements, duly executed by Buyer; and 

(vii) the certificates and other documents required to be delivered at the Closing as described in Article VII, duly
executed by Buyer. 
 (c) To the extent that a form of any document to be delivered hereunder is not attached as an Exhibit
hereto, such documents shall be in form and substance, and shall be executed and delivered in a manner, reasonably satisfactory to the parties. 
 3.3 Consents to Assignment and Transfer of Certain Rights and Liabilities. Notwithstanding anything in this Agreement to the contrary, this Agreement shall not constitute an agreement to assign any
Business Contract or any claim or right or any benefit arising thereunder or resulting therefrom if an attempted assignment or transfer thereof, without the consent of a third party thereto, would constitute a breach or default thereof or give rise
to a right of termination or cancellation thereunder, or in any way materially adversely affect the rights of Buyer thereunder. If such consent is not obtained, or if an attempted assignment thereof would be ineffective or would materially adversely
affect the rights of Buyer thereunder, the Selling Parties will cooperate with Buyer, and use commercially reasonable efforts, at Buyer’s expense, to provide to Buyer the benefits under any such Business Contract or claim or right, including
enforcement for the benefit of Buyer of any and all rights of the Selling Parties against a third party thereto arising out of the breach, default, termination or cancellation by such third party or otherwise or, at the Selling Parties’ option,
to the maximum extent permitted by Law and such Business Contract, appoint Buyer to be the Selling Parties’ Representative and agent with respect to such Business Contract, as applicable. Following the Closing, Buyer and the Selling Parties
shall continue to cooperate and use commercially reasonable efforts to effect the transfer to Buyer of such Business Contracts. Subject to Article IX, Buyer shall indemnify, defend and hold harmless the Selling Parties from and against
any and all Liabilities incurred by the Selling Parties in connection with, arising out of or resulting from any actions taken or not taken by Buyer after the Closing Date as Representative or agent with respect to any Business Contract or the
non-compliance by Buyer on or following the Closing Date with any Laws applicable to any such Business Contract. Subject to Article IX, the Selling Parties shall indemnify, defend and hold harmless Buyer from and against any and all
Liabilities incurred by Buyer in connection with, arising out of or resulting from any actions taken by the Selling Parties on or after the Closing Date with respect to any such Business Contract, other than actions taken in compliance with any such
Business Contract or as directed by Buyer. 

  
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 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE SELLING PARTIES AND PARENT 

Contemporaneously with the execution and delivery of this Agreement by the Selling Parties, the Selling Parties are delivering to Buyer
the Disclosure Schedules with numbered sections and subsections corresponding to the relevant sections and subsections in this Agreement. Disclosures included in any Schedule to this Agreement shall be considered to be made for purposes of all
sections and subsections of the Disclosure Schedules to the extent that such item of disclosure is made with such specificity that it is reasonably apparent that such disclosure applies to such other Schedules. Nothing in the Disclosure Schedules is
intended to broaden the scope of any representation, warranty or covenant of the Selling Parties contained in this Agreement. The inclusion of any information in the Disclosure Schedules shall not be deemed to be an admission or acknowledgment, in
and of itself, that such information is required by the terms hereof to be disclosed, is material to the Business, has resulted in or would result in a Material Adverse Effect or is outside the Ordinary Course of Business. The Selling Parties hereby
represent and warrant to Buyer as of (a) the date hereof and (b) the Closing Date, except (i) as to certain representations and warranties that address matters as of a particular date, which are given only as of such date and
(ii) as otherwise set forth on the Disclosure Schedules, as follows: 
 4.1 Organization. Seller is a limited
liability company duly organized, validly existing and in good standing under the laws of the State of California. Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of California. The Selling
Parties are in good standing in each jurisdiction where such qualification is required, except for any jurisdictions where the failure to so qualify does not have, individually or in the aggregate, a Material Adverse Effect. 

4.2 Authorization. Each Selling Party has all requisite power and authority to execute and deliver this Agreement and the
Ancillary Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby. Without limiting the generality of the foregoing, the execution and delivery of this Agreement and the Ancillary Agreements to which a
Selling Party is a party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized and approved by all requisite action on the part of such Selling Party and its equity owners. This Agreement has
been, and as of the Closing each of the Ancillary Agreements to which each Selling Party is a party will have been, duly executed and delivered by such Selling Party, and, assuming the due authorization, execution and delivery of this Agreement and
the Ancillary Agreements by Buyer, will be at the Closing valid and binding obligations of the Selling Parties, enforceable against the Selling Parties in accordance with their terms, except as may be limited by the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating to or affecting creditors’ rights generally and general equitable principles (whether considered in a proceeding in equity or at law). 

  
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 4.3 No Conflict or Violation; Consents and Approvals. 

(a) Neither the execution, delivery or performance by the Selling Parties of this Agreement or the Ancillary Agreements nor the
consummation by the Selling Parties of the transactions contemplated hereby and thereby will (i) violate or conflict with any provision of the articles of organization or operating agreement of Parent or Seller (as applicable),
(ii) violate, conflict with, or result in or constitute a breach or default under (with the giving of notice or passage of time or both), or result in the termination of, or accelerate the performance required by, or result in a right of
termination or acceleration under, any Business Contract, or (iii) violate any Law or Governmental Order applicable to the Selling Parties, the Business or the Purchased Assets, except in the case of each of clauses (ii) and
(iii) above, for such violations, conflicts, breaches, defaults, terminations or accelerations which do not, individually or in the aggregate, have a Material Adverse Effect or materially and adversely affect the ability of the Selling Parties
to consummate the transactions contemplated hereby. 
 (b) No consent, approval, order or authorization of, or registration,
declaration or filing with any Governmental Authority is required by or with respect to the Business as a result of the execution and delivery of this Agreement by the Selling Parties or the consummation of the transactions contemplated hereby,
except for any approval of or filing with a Governmental Authority required by virtue of Buyer’s or their ultimate parent’s identity. 
 4.4 Financial Information. Set forth on Schedule 4.4 is an unaudited statement of net assets as of May 31, 2007 and an unaudited statement of net wholesale shipments and direct
operating expenses for the eight (8) month period ended May 31, 2007 for the Business. Such statements were prepared in accordance with the books and accounts and other financial records of the Selling Parties and present fairly in all
material respects the net wholesale shipments, direct operating expenses and net assets of the Business based on managements’ reasonable assumptions as of and for the periods indicated and such statements have been prepared in accordance with
GAAP, applied on a basis consistent with the past practices of Parent, except as indicated on Schedule 4.4. 
 4.5
Absence of Certain Changes or Events. Since December 31, 2006, (a) the Selling Parties have not engaged in any practice or taken any action, or entered into any transaction with respect to the Business outside the Ordinary Course of
Business, (b) there has not occurred any event which if it had occurred between the date hereof and the Closing Date would have been prohibited by Section 6.2(b), and (c) there has not occurred any Material Adverse
Effect. 
 4.6 Title to Purchased Assets and Sufficiency. The Selling Parties have good and valid title to the Purchased
Assets, free and clear of all Encumbrances, except for Permitted Encumbrances. All the tangible personal property (other than the Inventory) included in the Purchased Assets is suitable for purposes for which it is used in good working condition,
reasonable wear and tear excepted. The Purchased Assets constitute all the assets required for the operation of the Business, as currently conducted, in all material respects. 

  
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 4.7 Material Contracts. 

(a) Schedule 4.7(a) sets forth as of the date hereof each Business Contract (i) involving individual annual payments in
excess of One Hundred Thousand Dollars ($100,000) and pursuant to which a Selling Party has continuing obligations (other than an obligation of confidentiality), (ii) relating to the Transferred Intellectual Property, (iii) that limits or
purports to limit the ability of a Selling Party to compete in any line of business or with any Person in any geographic area or for any period of time or (iv) requiring the Selling Parties to make payments to an unaffiliated third party based
on the level of income or revenues of the Selling Parties (collectively, the “Material Contracts”). 
 (b)
Copies of the Material Contracts and all amendments and agreements relating thereto have been made available to Buyer. To the knowledge of the Selling Parties, all Business Contracts are in full force and effect and capable of assignment without any
additional consents or approvals. Except for such exceptions as would not be material, (i) the Selling Parties have performed all obligations required to be performed by them under each of the Business Contracts, (ii) the Selling Parties
are not in breach or violation of, or default under, any of the Business Contracts, (iii) the Selling Parties have not received any written notice that either is currently in breach or violation of any of the Business Contracts and (iv) to
the knowledge of the Selling Parties, no other party to any Business Contract is (with or without the lapse of time or the giving of notice or both) in breach thereof. 
 4.8 Permits. To the knowledge of the Selling Parties, the Selling Parties or their Affiliates have all Permits necessary to own and operate the Business and the Purchased Assets as presently
conducted, in all material respects. Such Permits are in full force and effect, except for such failures to be in full force and effect as do not have, individually or in the aggregate, a Material Adverse Effect. The Selling Parties are not in
material default, nor have they received written notice of any claim of default, with respect to any such Permit. 
 4.9
Litigation. 
 (a) There is no material Action pending or, to the knowledge of the Selling Parties, threatened, against
or affecting the Purchased Assets or the Business, (b) neither the Selling Parties nor Parent is subject to any material Governmental Order relating to the Purchased Assets or the Business and (c) there are no unsatisfied judgments against
the Purchased Assets or the Business. 
 (b) Between May 26, 2006 and the date of this Agreement, (i) the Selling
Parties have not been notified of any Claim against them or their insurers relating to product liability or similar Liability in respect of the Product and (ii) no payment or settlement of any kind has been made in response to or in
anticipation of such a Claim. 
 (c) There are no outstanding Government Orders that apply to the Purchased Assets or the
Business that restrict the ownership, disposition or use of the Purchased Assets or the conduct of the Business. 

  
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 (d) Schedule 4.9(d) lists, as of the date hereof, all litigation to which any of
the Selling Parties or their Affiliates is a party relating to the Business. 
 4.10 Compliance with Laws. 

(a) The Business is conducted by the Selling Parties and their Affiliates in compliance with Laws including the Social Security Act, the
rules and regulations and policies of the U.S. Department of Health and Human Services, and all public health and safety provisions of state Law and regulations, permits, governmental licenses, registrations, approvals, concessions, franchises,
authorizations, orders, injunctions and decrees and applicable laws, except as does not have, individually or in the aggregate, a Material Adverse Effect. 
 (b) Except as does not have, individually or in the aggregate, a Material Adverse Effect, since May 26, 2006, no Governmental Authority has given written notice to the Selling Parties or any of their
Affiliates that the Business (as of the date of this Agreement) or the Purchased Assets were or are in violation of any Law or the subject of any investigation. 
 (c) Except as does not have, individually or in the aggregate, a Material Adverse Effect, since May 26, 2006, none of the Selling Parties or their Affiliates has received written notice from any
Governmental Authority that there are any circumstances currently existing that would reasonably be expected to lead to any withdrawal of, loss of or refusal to renew any material Permit or Product Registrations relating to the Product or the
Purchased Assets on terms less advantageous to the Selling Parties or any of their Affiliates than the terms of those Permits currently in force. 
 (d) (i) Except as does not have, individually or in the aggregate, a Material Adverse Effect, (A) the Business is conducted in compliance with all applicable Laws in connection with the
preparation and submission to the FDA or any equivalent foreign Governmental Authority of each of the Product Applications (including the INDs or NDAs) relating to the Product, (B) each of the Product Registrations (including the INDs or NDAs)
relating to the Product has been approved by the FDA, (C) none of the Selling Parties or their Affiliates has received any written notice that any of the Product Registrations (including the INDs or NDAs) relating to the Product are not
currently in good standing with the FDA in the United States or any equivalent foreign Governmental Authority in the country or countries of its jurisdiction. The Selling Parties or their Affiliates have filed with the FDA all required notices,
supplemental applications and annual or other reports, including adverse experience reports, with respect to each Product Registration and Product Application (including IND or NDA) relating to the Product, except as does not have, individually or
in the aggregate, a Material Adverse Effect. To the knowledge of the Selling Parties, with respect to the Product, the applicant of each Product Registration and Product Application (including IND or NDA) relating to the Product acted in compliance
with 21 U.S.C. § 355 and 21 C.F.R. Parts 312 or 314 et seq., respectively, and all terms and conditions of such applications. 

  
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 (ii) To the knowledge of the Selling Parties, no Governmental Authority (including the FDA)
has commenced or threatened to initiate any action to request the recall of the Product, or commenced or threatened to initiate any action to enjoin production of the Product at any facility, nor have the Selling Parties or their Affiliates received
any notice to such effect. To the knowledge of the Selling Parties, no ANDA for a therapeutically equivalent product to the Product has been submitted to, or approved by, the FDA. 

(iii) To the knowledge of the Selling Parties, all manufacturing and processing operations conducted by their current suppliers relating
to the manufacturing of the Product have, since May 26, 2006, been conducted in compliance in all material respects with the FDA’s current Good Manufacturing Practice regulations at 21 CFR Parts 210 and 211 as applicable to products sold
in the United States. 
 (iv) With respect to current suppliers, the Selling Parties and their Affiliates have delivered to
Buyer copies of all (A) reports of the FDA Form 483 inspection observations, (B) establishment inspection reports, (C) warning letters, and (D) other documents that assert ongoing lack of compliance in any material respect with
any applicable laws or regulatory requirements (including those of the FDA), in each case to the extent received since May 26, 2006 by the Selling Parties or their Affiliates from the FDA or any equivalent foreign Governmental Authority
relating to the Product and/or arising out of the conduct of the Business. 
 (v) To the knowledge of the Selling Parties, no
employees or agents of the Selling Parties or their Affiliates have made an untrue statement of a material fact to any Governmental Authority with respect to the Product or a current Product improvement (whether in any submission to such
Governmental Authority or otherwise), or failed to disclose a material fact required to be disclosed to any Governmental Authority with respect to the Product or a current Product improvement. 

(vi) To the knowledge of the Selling Parties, since May 26, 2006 the Selling Parties have materially complied with all regulations
promulgated by the FDA specific to the controlled distribution and operation and maintenance of a patient registry in respect of the Product and complied with FDA regulations and other applicable law in relation to the development of the
subregistry. 
 4.11 Brokers or Finders. Except for Reedland Capital Partners, neither the Selling Parties nor Parent has
engaged or made any agreement with any broker, finder or similar agent or any Person or firm which will result in the obligation of Buyer to pay any finder’s fee, brokerage fees or commission or similar payment in connection with the
transactions contemplated hereby. The Selling Parties shall be solely responsible for the payment of any fees, commissions or similar payments owed to Reedland Capital Partners. 

4.12 Employment, Labor and Employee Benefit Matters. 

  
 27 

 (a) No liability under Title IV or Part 3 of Title I, Subtitle B of ERISA or
Section 4971 of the Code has been incurred by the Selling Parties or any ERISA Affiliate for which the Buyer would be liable under applicable Law as a result of the transactions contemplated by this Agreement. 

(b) There are no collective bargaining agreements involving any Business Employees or any pending applications for certification of a
collective bargaining agreement against the Seller as of the date of this Agreement. There are no employment or wage and hour claims pending or, to the knowledge of the Selling Parties, threatened against or involving the Business. There is no claim
with the United States Equal Employment Opportunity Commission or similar Governmental Authority pending or, to the knowledge of the Selling Parties, threatened against or involving the Business. There is no unfair labor practice complaint against
the Business or pending before the National Labor Relations Board or any other Governmental Authority relating to labor practices of the Business. There is no labor strike, material dispute, slowdown or stoppage actually pending or, to the knowledge
of the Selling Parties, threatened against or involving the Business. 
 (c) The Selling Parties have made available to Buyer
copies of the Selling Parties Plans to which the Business Employees set forth on Schedule 6.3(a)(i) are subject. 

4.13 Intellectual Property. 
 (a) (i) No claim has been asserted or, to the knowledge of the Selling Parties, threatened against the Selling Parties that the conduct of the Business as currently conducted infringes upon the
Intellectual Property rights of any third party; (ii) the Selling Parties own the Owned Intellectual Property free and clear of all Encumbrances, other than Permitted Encumbrances; (iii) the Selling Parties have the right to assign their
rights with respect to the Licenses; (iv) the Owned Intellectual Property and, to the knowledge of the Selling Parties, the Licenced Intellectual Property, has not been adjudged, nor, to the knowledge of the Selling Parties, asserted to be,
invalid or unenforceable in whole or in part; (v) to the knowledge of the Selling Parties, no loss or expiration of any Transferred Intellectual Property is threatened, pending or reasonably foreseeable, except for patents expiring at the end
of their statutory terms (and not as a result of any act or omission by the Selling Parties, including a failure by the Selling Parties to pay any required maintenance fees); (vi) to the knowledge of the Selling Parties, the conduct of the
Business as currently conducted does not infringe upon the Intellectual Property rights of any third party; (vii) to the knowledge of the Selling Parties, no Person is engaging in any activity that infringes upon the Transferred Intellectual
Property; (viii) the Transferred Intellectual Property contains all of the Intellectual Property materially necessary to conduct the Business as presently conducted; (ix) the Selling Parties have neither licensed any of the Owned
Intellectual Property nor sublicensed any of the Licensed Intellectual Property to any third parties; (x) to the knowledge of the Selling Parties, Parent has not failed to assert any breach of any representation and warranty set forth in
Section 4.15 of the Unit Purchase Agreement that it has the legal right to assert; and (xi) to the knowledge of the Selling Parties, the representations and warranties provided by the applicable licensor with respect to the licensee are
true and correct in all material respects. 

  
 28 

 (b) The Selling Parties have the unrestricted right to assign, transfer and/or grant to
Buyer all rights in the Product Trademarks that are being assigned, transferred and/or granted to Buyer under this Agreement and the Ancillary Agreements, in each case free of Encumbrances, other than Permitted Encumbrances. 

(c) Any necessary registration, maintenance and renewal fees due in connection with the Product Trademarks have been paid in a timely
manner and all materially necessary documents and certificates in connection with the Product Trademarks have, for the purposes of maintaining such Product Trademarks, been filed in a timely manner with the relevant Governmental Entities.

 (d) The Selling Parties have taken reasonable and customary measures to maintain and protect, as applicable, the
confidentiality of the Know-How. 
 (e) All current and former employees and consultants of the Selling Parties who are or have
been substantively involved in the design, review, evaluation or development of the inventions embodied in the Product or the Know-How have executed written contracts or are otherwise obligated to protect the confidential status and value thereof
and to vest in the Selling Parties’ exclusive ownership of such Product Trademarks or Know-How. 
 4.14 Environmental
Matters. Except as does not have a Material Adverse Effect: 
 (a) The Business and Purchased Assets, and the Selling
Parties as relates to the Business and Purchased Assets, are in compliance in all material respects with applicable Environmental Laws; 
 (b) The Selling Parties have not received any written claim, complaint, demand, notice of violation, notice of potential liability or request for information, and there is no suit, action, proceeding or
investigation pending, or to the knowledge of the Selling Parties threatened, regarding any alleged violation of, or potential liability under, any Environmental Law relating to the Business or Purchased Assets; 

(c) There has been no Release of Hazardous Substances at, on, under or from any properties or facilities currently or formerly owned,
operated or leased by the Selling Parties in connection with the Business, or any Purchased Assets which would reasonably be expected to result in any material liability of the Selling Parties under any Environmental Law; 

(d) No Hazardous Substances generated in connection with the Business or any of its operations, properties or facilities, have been
disposed of at, or transported for disposal or treatment to, any location that would reasonably be expected to result in material liability on the part of the Selling Parties under any Environmental Law; 

(e) The Selling Parties are not currently financing or conducting any investigation, response or corrective action at the Purchased
Assets, or at any other location, pursu-

  
 29 

 
ant to any Environmental Law relating to the Business nor are the Selling Parties subject or party to any decree, order or agreement which would reasonably be expected to result in liability of
the Selling Parties under any Environmental Law relating to the Business or the Purchased Assets; 
 (f) To the knowledge of the
Selling Parties, there are no aboveground or underground storage tanks or related piping, or asbestos or asbestos-containing materials at any Purchased Assets; and 
 (g) The Selling Parties have provided to Buyer all assessments, audits, reports and other information in their possession or under their control relating to environmental conditions at the Purchased
Assets, if any. 
 4.15 Inventory. 
 (a) All finished Product that is included in the Inventory is in a condition such that it would be saleable in the Ordinary Course of Business. To the knowledge of the Selling Parties, the Inventory has
been produced or manufactured and stored in accordance with the Selling Parties specifications established for the manufacture and storage thereof. All work-in-progress included in the Inventory is, to the knowledge of the Selling Parties, usable in
the Ordinary Course of Business. 
 (b) The amount of Product in the wholesale channel does not exceed seven
(7) weeks’ of demand for the Product. The value at which the Inventory is carried on the books and records of the Selling Parties is at the lower of cost (determined on a first-in or first-out method) or market values. The Inventory does
not consist of, in any material amount, items that are obsolete or damaged, except as reflected or reserved on the statement of net assets to be delivered pursuant to Section 4.4 or the Closing Net Working Capital Estimate. The Inventory
does not consist of any items held on consignment. Neither of the Selling Parties is under any obligation or liability with respect to accepting returns of items of Inventory in the possession of their customers other than in the Ordinary Course of
Business and consistent with the Selling Parties’ Product returns policy. Schedule 4.15 contains a complete list of the addresses of all warehouses and other facilities in which the Inventory is located. Schedule 4.15
sets forth a complete schedule of all wholesaler reports received by the Selling Parties since January 1, 2007 and complete and accurate copies of all such wholesalers reports have been provided by the Selling Parties to the Buyer. 

4.16 Insurance. Schedule 4.16 sets forth the current product liability insurance held by Parent with respect to the
Product as of the date hereof. 
 4.17 Customers. The Selling Parties have used commercially reasonable efforts to
maintain, and, as of the date of this Agreement, currently maintain, good working relationships with all of the customers, processors and suppliers of the Business, taken as a whole. Schedule 4.17 specifies for the year ended
December 31, 2006 and the three-month period ended March 31, 2007 the names of the customers that were, in the aggregate, the three 

  
 30 

 
(3) largest customers in terms of dollar value of Products sold by the Business during such periods. As of the date of this Agreement, none of such customers has given the Selling Parties written
notice terminating, canceling or threatening to terminate or cancel any contract or relationship with the Selling Parties relating to the Business. 
 4.18 Taxes. 
 (a) The Selling Parties have timely filed all material Tax
Returns required to be filed relating to the Purchased Assets and such Tax Returns were correct and compete in all material respects at the time of filing. 
 (b) The Selling Parties have timely paid all material Taxes relating to the Purchased Assets required to be paid or collected by them. 

(c) Neither of the Selling Parties has received from any Taxing Authority any written notice of proposed adjustment, deficiency or
underpayment of any material Taxes relating to the Purchased Assets that has not been satisfied by payment or withdrawn, and no written claims related to such Taxes have been asserted or threatened against the Selling Parties. 

(d) No agreement for the extension of time for the assessment of any material Taxes relating to the Purchased Assets is currently in
effect. 
 (e) There are no liens for Taxes on the Purchased Assets other than Permitted Tax Liens. 

(f) Neither of the Selling Parties is a “foreign person” within the meaning of Section 1445(b)(2) of the Code. 

4.19 Cutler Agreement. As of the date hereof, the Selling Parties have entered into an agreement with Neal R. Cutler,
substantially in the form previously provided to Buyer. 
 ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF BUYER 
 Each Buyer hereby represents and warrants to the Selling Parties and their Affiliates as of (a) the date hereof and (b) the Closing Date as follows: 

5.1 Organization of Buyer. Azur Inc. is duly organized, validly existing and in good standing under the laws of New York. Azur
Limited is duly organized and validly existing under the laws of Bermuda. 
 5.2 Authorization. Each Buyer has all
requisite corporate power and authority, and has taken all corporate action necessary, to execute and deliver this Agreement and the Ancillary Agreements to which it is a party, to consummate the transactions
contem-

  
 31 

 
plated hereby and thereby and to perform its obligations hereunder and thereunder. Without limiting the generality of the foregoing, the execution and delivery of this Agreement and the Ancillary
Agreements to which each Buyer is a party and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized and approved by all requisite action on the part of each Buyer and its equity owners. This
Agreement has been, and as of the Closing each of the Ancillary Agreements to which either Buyer is a party will have been, duly executed and delivered by such Buyer, and, assuming the due authorization, execution and delivery of this Agreement and
the Ancillary Agreements by the Selling Parties, is or, if executed at the Closing, will be, the valid and binding obligations of such Buyer, enforceable against such Buyer in accordance with their terms, except as may be limited by the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar Laws relating to or affecting creditors’ rights generally and general equitable principles (whether considered in a proceeding in equity or at law).

 5.3 Compliance with Applicable Law. Each Buyer conducts its business in compliance in all material respects with all
applicable Laws, except for violations, if any, which would not, individually or in the aggregate, reasonably be expected to materially affect or delay the ability of either Buyer to consummate the transactions contemplated hereby. 

5.4 Litigation. There is no material Action pending, or to the knowledge of each Buyer, threatened against such Buyer that is
reasonably likely to adversely affect such Buyer’s performance under this Agreement or the consummation of the transactions contemplated herein. 
 5.5 No Conflict or Violation; Consents and Approvals. 
 (a) Neither the
execution, delivery or performance by either Buyer of this Agreement or the Ancillary Agreements nor the consummation by either Buyer of the transactions contemplated hereby and thereby will (i) violate or conflict with any provision of the
organizational documents of such Buyer, (ii) violate, conflict with, or result in or constitute a breach or default under (with the giving of notice or passage of time or both), or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration under, any of the terms, conditions or provisions of any Contract to which such Buyer is a party or by which its assets are bound or (iii) violate any Law or Governmental Order
applicable to such Buyer, except in the case of each of clauses (ii) and (iii) above, for such violations, breaches, defaults, terminations or accelerations which would not reasonably be expected to materially adversely affect the ability
of such Buyer to consummate the transactions contemplated hereby or subject any of the Selling Parties to any Liability. 
 (b)
No material consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or other Person, is required by or with respect to each Buyer or any Affiliate of such Buyer as a result of the
execution and delivery of this Agreement by Buyer or the consummation of this transaction. 

  
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 5.6 No Brokers or Finders. Each Buyer has not engaged or made any agreement with any
broker, finder or similar agent or any Person or firm which will result in the obligation of the Selling Parties or any of their Affiliates to pay any finder’s fee, brokerage fees or commission or similar payment in connection with the
transactions contemplated hereby. 
 5.7 Sufficiency of Consideration. Each Buyer has cash on hand or commitments (which
commitments are in full force and effect and neither Buyer is in breach of any term thereof) sufficient, in the aggregate, to consummate the transactions contemplated by this Agreement to pay the Limited Up-Front Cash Purchase Price, the Inc.
Up-Front Cash Purchase Price and all other costs and expenses arising in connection herewith and therewith. 
 5.8 No
ANDA. To the knowledge of Buyer, after due inquiry, no ANDA for a therapeutically equivalent product to the Product has been submitted to, or approved by, the FDA, or is planned to be submitted to the FDA. Neither Buyer (including any
partnership or joint venture of which Buyer or any of its Affiliates is a party), nor any of its Affiliates (other than their employees outside of their capacity as such) or Representatives (in their capacity as such) is currently: 

(a) working to file on their own behalf; 
 (b) advising or consulting with any Person in preparation for or in connection with filing; 
 (c) holding an investment in (other than the acquisition of less than five percent (5%) of the voting securities of a publicly traded entity) or providing debt financing to any Person that is
preparing to file; or 
 (d) assisting or encouraging any Person in connection with the filing of, an ANDA using the Product as
the reference listed drug with the FDA. 
 ARTICLE VI 
 COVENANTS OF THE SELLING PARTIES AND BUYER 
 The Selling Parties and Buyer
each covenant with the other as follows: 
 6.1 Access by Buyer; Confidentiality Agreement. 

(a) From the date hereof through the Closing, the Selling Parties shall permit (and shall cause their Representatives to permit) Buyer
and its Representatives to have access at reasonable times within normal business hours, to all personnel, books, records (including Tax records), Business Contracts and offices of the Business as may be reasonably requested by Buyer. Any
information furnished to Buyer or which Buyer receives in exercising its rights pursuant to this Section 6.1(a) shall be subject to the terms of Section 6.1(b) hereof; provided,

  
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however, that (i) any such investigation shall be conducted in such a manner as not to interfere unreasonably with the operation of the Business or the conduct of the Business,
(ii) the Selling Parties shall not be required to take any action which would constitute a waiver of the attorney-client privilege, (iii) the Selling Parties need not supply Buyer with any access or information (A) which the Selling
Parties are under a legal obligation not to supply or (B) with respect to a Retained Liability or Excluded Asset, and (iv) the Selling Parties shall not be required to provide such information or access to any employee records other than
the Employee Records. In the event that the Selling Parties or their Affiliates receive written notice by a Governmental Entity of a violation of any regulatory or other requirement relating to the Business, any Purchased Assets, the Product or
Product Registrations, they shall promptly provide Buyer a copy of any such written notice and use commercially reasonable efforts to undertake, in consultation with Buyer, all such actions as may be reasonably necessary to cure such violation.

 (b) The parties to this Agreement hereby agree to be bound by and comply with the terms of the Confidentiality Agreement,
which are hereby incorporated into this Agreement by reference and shall continue in full force and effect after the Closing Date, such that the information obtained by any party to this Agreement, or its Representatives, during any investigation
conducted pursuant to this Section 6.1, or in connection with the negotiation and execution of this Agreement or the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements, or otherwise, shall be
governed by the terms of the Confidentiality Agreement. 
 (c) The Selling Parties agree to keep confidential for five
(5) years after the Closing date all information regarding the Business, except as required by Law, Exchange Act regulation or the rules of any national securities exchange on which its securities are listed. Notwithstanding the foregoing, the
Selling Parties shall not be obligated to keep any information confidential that (i) is or becomes generally available to the public, other than as a result of a disclosure by the Selling Parties, or (ii) becomes available to the Selling
Parties on a non-confidential basis from a Person that is not, to the knowledge of Seller, bound by a confidentiality agreement with, or other contractual, legal or fiduciary obligation of confidentiality to, Buyer or any other party with respect to
such information. 
 6.2 Conduct of Business. 
 (a) From the date hereof through the Closing, the Selling Parties shall, except as contemplated by this Agreement and except as set forth on Schedule 6.2, or as consented to in advance by
Buyer in writing, operate the Business in the Ordinary Course of Business and shall use their commercially reasonable efforts to maintain intact the Business as it is currently organized and maintain good relations with their suppliers, customers,
creditors, employees, agents and others (taken as a whole) having a relationship with the Business (taken as a whole); provided, however, the Selling Parties shall use commercially reasonable efforts to (i) market, sell and
distribute the Product and deal with any customer orders for Product in the Ordinary Course of Business, (ii) continue to meet any contractual obligations owing and pay any amounts due in respect of the Business, Product and the Purchased
Assets as they mature in the Ordinary Course of Business, (iii) continue to procure, and order the processing and manufacturing of, the Product in the Ordinary Course of Business and (iv) continue the pre-launch activities related to

  
 34 

 
DuraSolv. The parties do not intend the foregoing provisions of this Section 6.2 or any other provision in this Agreement to effect an assignment of, or transfer of control related
to, the Purchased Assets prior to Closing. 
 (b) Without limiting the generality of Section 6.2(a), the Selling
Parties shall not, with respect to the Business, except as set forth on Schedule 6.2 or as consented to in advance by Buyer in writing, which consent shall not be unreasonably withheld or delayed, take any of the following actions from
the date hereof through the Closing: 
 (i) (other than with respect to any confidentiality or non-competition agreement
relating to the Business) enter into, extend, modify, terminate or renew any Material Contract, except in the Ordinary Course of Business; 
 (ii) sell, assign, transfer, convey, lease or otherwise dispose of any of the Purchased Assets, or any interests therein, except, subject to clause (vi) of this Section 6.2(b), for sales
of Product in the Ordinary Course of Business; 
 (iii) subject any of the Purchased Assets or any part thereof, to any
Encumbrance, other than Permitted Encumbrances; 
 (iv) pay, loan or advance any material amount to any Affiliate of the
Selling Parties in connection with the Business; 
 (v) settle, release or forgive any Action relating to the Purchased Assets
or the Business, or waive any right thereto; 
 (vi) fulfill any orders for the Product other than in the Ordinary Course of
Business; 
 (vii) grant any license or sublicense to any Transferred Intellectual Property; 

(viii) fail to maintain all Product Records in the Ordinary Course of Business in all material respects; 

(ix) fail to hold and store all Inventory in material compliance with (i) all applicable Laws, (ii) in compliance in all
material respects with the FDA’s current Good Manufacturing Practice regulations at 21 CFR Parts 210 and 211 as applicable to products sold in the United States and (iii) the approvals of Governmental Authorities, and (iv) applicable
analytical methods and procedures, material specifications, master batch records and stability protocols established by the Selling Parties, if any; and 

  
 35 

 (x) enter into any agreement, or otherwise become obligated, to do any of the foregoing.

 6.3 Employee Matters. 
 (a) As soon as reasonably practicable but in any event within five (5) Business Days after the date hereof, Azur Inc. shall make offers of employment (to be effective as of the Closing Date) to the
Business Employees set forth on Schedule 6.3(a)(i) who are then actively employed by Seller or Parent immediately prior to the Closing. Effective as of the Closing, the Selling Parties shall terminate the employment of all Buyer
Employees. Azur Inc. shall communicate offers of employment to such Business Employees in accordance with applicable legal requirements and in a form determined by Azur Inc., which form is reasonably acceptable to the Selling Parties. Such offers of
employment shall provide each of such Business Employees, effective immediately after the Closing and for a period of six months thereafter, with (i) employment at a level and with responsibilities that are substantially commensurate with their
level and responsibilities immediately prior to the Closing, (ii) base salary that is at least comparable to the present base salary and bonus opportunity that is at least comparable to their bonus opportunity immediately prior to the Closing,
(iii) health, dental, vision, 401(k) and other insurance benefits that are at least comparable in the aggregate to their benefits immediately prior to the Closing, (iv) a plan that would allow Buyer Employees that have over funded their
healthcare spending accounts with a Selling Party as of the Closing Date to elect to continue to participate in such Selling Party’s healthcare spending plan by electing COBRA coverage with respect to such plan at the Buyer Employee’s
expense, and (v) severance benefits equal to two weeks per year of service with the Selling Parties or their Affiliates (recognizing such Buyer Employee’s service with a Selling Party or any Affiliate of a Selling Party that is recognized
under the Selling Parties Plans for severance purposes). In addition, Azur Inc. shall offer the Business Employees set forth on Schedule 6.3(a)(i) employment at a location within a reasonable commuting distance from their place of
employment immediately prior to the Closing; provided that Azur Inc. may require the Business Employees set forth on Schedule 6.3(a)(ii) to relocate their principal location of employment anywhere within the United States as a
condition to such Business Employees’ employment with Azur Inc. Following the Closing Date, Azur Inc. shall not be obligated to continue the employment of any Buyer Employee for any period of time. 

(b) As soon as practicable following the Closing Date, the Selling Parties shall cause the account balances of all Buyer Employees in any
401(k) plans maintained by the Selling Parties to be fully vested and distributed and Azur Inc. shall permit Buyer Employees who are participants in said plans to rollover such distributions (including outstanding participant loan balances) into
Azur Inc.’s 401(k) plan. As soon as practicable following the Closing Date, Parent shall cause all unvested equity awards held by the Buyer Employees (including stock options, stock grants and restricted stock units which do not provide for
accelerated vesting) to become fully vested and exercisable by the holder thereof for the period specified in the relevant Selling Parties Plan. 

  
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 (c) Effective as of the Closing Date, Azur Inc. or its designated
Affiliate shall cause each Buyer Employee who was covered under the Selling Parties Plans immediately prior to such date to be covered under employee benefit plans, programs and arrangements maintained or established by Azur Inc. (the “Buyer
Plans”). However, the Buyer Employees shall continue to participate in the Selling Parties Plans providing for medical, dental and vision benefits through the sixtieth (60th) day anniversary of the date of this Agreement, and Azur Inc. shall bear the cost of such continued
participation, which cost shall be an amount equal to the COBRA continuation premium for the Selling Parties Plans applicable to each Buyer Employee for the period of continued coverage after the Closing Date. The Buyer Plans shall recognize each
Buyer Employee’s service with the Selling Parties or any Affiliate that is recognized under the Selling Parties Plans (and prior service with the Selling Parties’ predecessors to the extent such prior service is recognized under the
Selling Parties Plans) for eligibility and vesting purposes, but not benefit accrual purposes. 
 (d) Effective as of the
Closing Date, each Buyer Employee shall cease to be covered by the Selling Parties Plans, except as otherwise described above. The Selling Parties shall retain responsibility for all claims for welfare benefits incurred by Business Employees prior
to Closing Date. For purposes of this subsection, a claim shall be deemed to have been incurred on the date the medical, dental or vision service giving rise to the claim is performed. With respect to the Buyer Employees, effective as of the Closing
Date, Azur Inc. shall use commercially reasonable efforts to cause all applicable Buyer Plans that provide medical or dental coverage, life and accident insurance, and disability or similar coverage (collectively, the “Buyer Welfare
Plans”) to waive pre-existing condition exclusions, evidence of insurability provisions, waiting period requirements or similar provisions to the extent such exclusions, requirements and provisions were waived or satisfied under the
applicable Selling Parties Welfare Plan as of the Closing Date. In addition, Azur Inc. shall cause the applicable Buyer Welfare Plans to credit Buyer Employees with amounts credited by the Selling Parties under the Selling Parties’ health and
dental plans toward the satisfaction of annual deductible and out-of-pocket maximums under such Azur Inc. health and dental plans during the calendar year which includes the Closing Date. 

(e) The Selling Parties shall provide to Azur Inc., at Buyer’s request, access to job-related employment documents with the
exception of non-work-related medical records or other records the disclosure of which would be in violation of applicable Law, as needed for Buyer to comply with this Section 6.3 prior to the Closing Date. The Selling Parties and Azur
Inc. shall each cooperate with the other and shall provide to the other such documentation, information and assistance as is reasonably necessary to effect the provisions of this Section 6.3. Buyer is solely responsible for the use of
the Employee Records and other employee information furnished by the Selling Parties and, subject to Article IX Buyer shall indemnify and hold the Selling Parties harmless from and against any Damages or Liabilities incurred by the
Selling Parties as a result of Azur Inc.’s use of such Employee Records or other employee information. 
 (f) The Selling
Parties shall be responsible for providing or discharging any and all notifications, benefits and Liabilities to Business Employees and governmental 

  
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entities under the Worker Adjustment and Retraining Notification Act of 1988 (the “WARN Act”) or by any other Law relating to plant closings, mass layoffs or employee separations
or severance pay that are first required to be provided or discharged on or prior to the Closing Date, and Azur Inc. shall be responsible for providing any notice required pursuant to the WARN Act with respect to a plant closing, layoff or employee
separation or severance pay relating to the Buyer Employees after the Closing Date. Azur Inc. shall be responsible for the administration of and shall assume any and all obligations, if any, arising after the Closing Date under COBRA with respect to
Buyer Employees and their beneficiaries. 
 (g) From the date hereof until the Closing Date, the Selling Parties shall not
increase or change the compensation or benefits for the Business Employees other than in the Ordinary Course of Business. 
 (h)
The provisions of this Section 6.3 pertaining to the employment and employee benefits of the Buyer Employees are solely for the benefit of the parties to this Agreement, and no employee or former employee of the Selling Parties or Buyer
or any other individual associated therewith shall be regarded for any purpose as a third party beneficiary of this Agreement. 

6.4 No Additional Representations and Warranties. Buyer acknowledges and agrees that except for the representations and warranties
contained in Article IV (as modified by the Disclosure Schedules), neither the Selling Parties nor any other Person makes any express or implied representation or warranty, including as to the accuracy or completeness of any information
regarding the Business, on behalf of the Selling Parties. The Selling Parties specifically disclaim any such representation or warranty, whether by the Selling Parties or any of their Representatives or any other Person, with respect to the
execution and delivery of this Agreement, the Ancillary Agreements or the consummation of the transactions contemplated hereby or the Business or Purchased Assets notwithstanding the delivery or disclosure to Buyer or any of its Representatives or
any other Person of any documentation or other information with respect to the foregoing. Buyer further agrees that neither the Selling Parties nor any other Person shall have or be subject to any Liability to Buyer or any other Person resulting
from the distribution to Buyer or such Person, or Buyer’s or such Person’s use of, any such information, including any information, documents, data or materials made available to Buyer by the Selling Parties, management presentations or
other form in expectation of the transactions contemplated by this Agreement. OTHER THAN THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE IV (AS MODIFIED BY THE DISCLOSURE SCHEDULES), IT IS THE EXPRESS INTENT OF THE
PARTIES HERETO THAT THE SELLING PARTIES MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY IN RE- SPECT OF THE BUSINESS OR THE PURCHASED ASSETS OR ANY OTHER MATTER, INCLUDING, ANY IMPLIED REPRESENTATION OR
WARRANTY AS TO THE CONDITION, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PURCHASED ASSETS, AND ANY SUCH REPRESENTATIONS OR WARRANTIES ARE EXPRESSLY DISCLAIMED. THE SELLING PARTIES RECOGNIZE AND AGREE THAT BUYER, IN
CONNECTION WITH THE EXECUTION 

  
 38 

 
AND DELIVERY OF THIS AGREEMENT, IS RELYING UPON THE REPRESENTATIONS AND WARRANTIES EXPRESSLY GIVEN IN ARTICLE IV OF THIS AGREEMENT (AS MODIFIED BY THE DISCLOSURE SCHEDULES).

 6.5 Disclaimer of Estimates and Projections. In connection with Buyer’s investigation of the Business and the
Purchased Assets, Buyer may have received from or on behalf of the Selling Parties certain estimates, forecasts, plans and financial projections. Buyer acknowledges that (a) there are uncertainties inherent in making such estimates, forecasts,
plans and projections and that Buyer is familiar with such uncertainties, and (b) Buyer is taking full responsibility for conducting its own evaluation of the adequacy and accuracy of such estimates, forecasts, plans and projections (including
the reasonableness of the assumptions underlying such estimates, forecasts, plans and projections) and (c) Buyer shall have no Claim against Seller, Parent, any of their Affiliates or any other Person with respect to such estimates, forecasts,
plans or projections. Accordingly, the Selling Parties are making no representation or warranty with respect to such estimates, forecasts, plans and projections (including such underlying assumptions). 

6.6 Revision of Marketing Materials; Use of Names. 
 (a) Removal of Names. Buyer shall revise all marketing materials and other product literature related to the Product to delete all reference to the names and other references to the Selling Parties
and implement such materials as soon as reasonably practicable, and in any event, within one (1) year after the date of this Agreement. 
 (b) Transitional Use of Names. For one (1) year after the Closing Date, Buyer may continue to distribute marketing materials in connection with the marketing of the Product that use names,
addresses or phone numbers to the extent that such marketing materials exist at the Closing Date. 
 (c) No Other Use.
Other than as expressly provided in this Agreement, Buyer shall not use or permit any of its Affiliates or distributors to use any of the names or any other corporate, trademarks or service marks or names now or hereafter owned or used by the
Selling Parties or any of its Affiliates, other than the Transferred Intellectual Property (on the terms provided herein and in the Ancillary Agreements). 
 (d) Website Information. Within thirty (30) days following the Closing Date, the Selling Parties shall remove all references to the Product from the “Products” section of their
website. 
 6.7 Customer Notifications. Promptly after the Closing Date, Buyer shall notify all current customers of the
Product (i) of the transfer of the Purchased Assets to Buyer and (ii) that all purchase orders for Product received by the Selling Parties or any of their Affiliates prior to the Agreement Date but not filled as of such date will be
transferred to Buyer; provided, however, that to the extent that any purchase order cannot be so transferred, the Selling Parties and Buyer shall cooperate with each other to ensure that such purchase order is

  
 39 

 
filled and that Buyer receives the same economic benefit and assumes the same liability associated with filling such purchase order as if such purchase order had been so transferred; provided,
however, that Buyer’s obligations to provide such notices is subject to the Selling Parties providing Buyer with a complete list of all current customers of the Product and their contact information. 

6.8 Regulatory Matters, Etc.  
 (a) From and after the Closing Date, Buyer shall assume all regulatory responsibilities in connection with the Products and the Product Applications, including responsibility for (i) all periodic and
annual reports or other regulatory filings with the FDA or any equivalent foreign Governmental Authority with respect to the 2007 calendar year (provided that Selling Parties shall provide assistance as reasonably requested in connection with
such reports and filings), (ii) reporting any product quality complaints and adverse drug events in connection with the NDA, and (iii) compliance with the Federal Food, Drug and Cosmetic Act and the Public Health Service Act, as the same
may be amended from time to time. For a period of six (6) months after the Closing Date, if the Selling Parties receive any adverse event reports regarding the Product, the Selling Parties shall promptly notify Buyer of such. 

(b) Notwithstanding anything in this Agreement to the contrary and subject to Section 2.7, the Selling Parties shall have no
obligation whatsoever in connection with any regulatory filings, requests or applications related to the Product. 
 (c) From
and after the Closing Date, the Selling Parties shall direct all complaints or inquiries concerning the Product to Buyer to the attention of the “Senior Director of Medical Affairs” of Buyer, or such other person or persons as Buyer may
specify from time to time by written notice to the Selling Parties. 
 (d) From and after the Closing Date, Buyer shall have all
responsibility for any and all Governmental Authority fee obligations for holders or owners of the Product Registration and the Product Applications that relate to periods on or after the Closing Date, and the Selling Parties shall retain
responsibility for such fee obligations as they relate to periods prior to the Closing Date. Each party shall promptly reimburse the other to the extent a party pays amounts that are the responsibility of the other party hereunder. 

(e) From and after the Closing Date, Buyer shall have the sole authority and responsibility to respond to any Governmental Authorities,
to respond to product technical complaints and medical complaints and to handle all recalls, market withdrawals and field corrections of the Product in accordance with applicable Laws, all at Buyer’s sole cost and expense. 

(f) Beginning at the Closing Date and ending two (2) years thereafter, Buyer shall promptly (but in any case, within forty-eight
(48) hours) notify the Selling Parties in writing of any decision, order, request or directive of a court or other Governmental Authority to recall, withdraw, or field correct the Product. Buyer has the sole authority and
re-

  
 40 

 
sponsibility for determining if and when to issue any recall, withdrawal, or field correction (but shall comply with all applicable laws, rules, regulations, directives and orders in making such
determination), with respect to all Products whether they are sold or distributed before, on or after the Closing Date. Except as otherwise provided in this Agreement, Buyer shall be responsible for, and, subject to Article IX, shall
indemnify the Selling Parties with respect to, the cost and expense of any such recall, withdrawal, or field correction, with respect to any Products sold or distributed by Buyer after the Closing Date. The Selling Parties shall have sole
responsibility for, and, subject to Article IX, shall indemnify the Buyer with respect to, the cost and expense of any such recall, withdrawal, or field correction, with respect to any Product sold or distributed by the Selling Parties
on or prior to the Closing Date. 
 6.9 Post Closing Cooperation. 

(a) Each party further agrees that it will cooperate with and make available to the other party, its employees, auditors, counsel and
representatives, during normal business hours, all books and records, information and employees (without substantial disruption of employment) retained and remaining in existence after the Closing which are necessary or useful in connection with any
Tax filing inquiry, audit, investigation or dispute, any litigation or investigation or any other matter requiring any such books and records, information or employees for any reasonable business purpose. Buyer shall retain all such books and
records in a manner consistent with the Selling Parties’ record retention policy. The party requesting any such books and records, information or employees shall bear all of the out-of-pocket costs and expenses (including attorneys’ fees,
but excluding reimbursement for salaries and employee benefits) reasonably incurred in connection with providing such books and records, information or employees. All information received pursuant to this Section 6.9 shall be subject to
the terms of Section 6.1(b) hereof. 
 (b) For a period of four (4) years after the Closing Date, the Selling
Parties shall (i) cooperate with Buyer in connection with Buyer’s preparation of financial statements, and use commercially reasonable efforts to provide Buyer with such information or documents, pertaining to the Product that Buyer
reasonably requests in connection therewith and (ii) use commercially reasonable efforts to cause the accountants for the Selling Parties to deliver such information and provide access to files and work papers in connection therewith as Buyer
may reasonably request. Buyer shall pay for all third party costs related to such work and those reasonable costs related to the Selling Parties’ time and expenses. 
 (c) After the Closing Date, upon reasonable written notice, Buyer and the Selling Parties shall furnish or cause to be furnished to each other, as promptly as practicable, such information and assistance
(to the extent within the control of such party) relating to the Purchased Assets (including access to books and records) as is reasonably requested for the filing of all Tax Returns, and making of any election related to Taxes, the preparation for
any audit by any Taxing authority, and the prosecution or defense of any claim, suit or proceeding related to any Tax Return. In the event it is necessary under this Agreement to allocate any Tax between pre- and post- Closing periods, such
allocation shall be performed based on the number of days in each such period, on the basis of a 365-day calendar year, or such other 

  
 41 

 
method as the parties hereto shall reasonably agree. The Selling Parties and Buyer shall cooperate with each other in the conduct of any audit or other proceeding relating to Taxes involving the
Purchased Assets. Buyer shall retain the books and records of the Selling Parties and their Affiliates included in the Purchased Assets for a period of seven years after the Closing Date. After the end of such seven-year period, before disposing of
such books or records, Buyer shall give notice to such effect to the Selling Parties and shall give the Selling Parties, at the Selling Parties’ cost and expense, an opportunity to remove and retain all or any part of such books or records as
the Selling Parties may select. 
 (d) The Selling Parties shall provide assistance to Buyer as reasonably requested with
respect to financial and other information relating to the conduct of the Business prior to the Closing Date in connection with Buyer’s performance of obligations and enjoyment of benefits under the Business Contracts. 

6.10 Consents. The parties hereto shall use commercially reasonable efforts to obtain the approvals of the FDA and consents of the
Persons listed on Schedule 6.10 on the Closing Date. The Selling Parties shall use commercially reasonable efforts to deliver to each relevant Governmental Authority and to Buyer a copy of the Selling Parties’ FDA transfer of
ownership letter, and each other document required to initiate transfer of any Permits. 
 6.11 Financing. Buyer shall
use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and obtain the financing on the terms and conditions described in its financing
commitment letter, including using commercially reasonable efforts to (a) maintain in effect the financing commitment letter and negotiate and enter into definitive agreements with respect to the financing on the terms and conditions reflected
in the financing commitment letter, (b) satisfy on a timely basis all material conditions applicable to Buyer in such definitive agreements that are within its control, (c) consummate the financing at such time or from time to time as is
necessary for Buyer to satisfy its obligations under this Agreement, (d) enforce its rights under the financing commitment letter; provided, however, that Buyer shall have the right to substitute alternative financing with a
different letter or a letter from alternative lenders so long as such substitute letter is subject to financing conditions that are at least as favorable to Buyer as the financing conditions set forth in the financing commitment letter. In the event
any portion of the financing becomes unavailable on the terms and conditions contemplated in the financing commitment letter for any reason, Buyer shall use it’s commercially reasonable efforts to obtain alternative financing from alternative
sources as promptly as practicable following the occurrence of such event. For the avoidance of doubt, Buyer’s obligation to consummate the transactions contemplated by this Agreement are not (and shall not be) subject to any financing
condition. 
 6.12 Transition Services. 
 (a) Following the Closing and for a period of six (6) months thereafter (the “Transition Period”), Azur Inc. shall have the right, subject to Sections 6.12(b) and
(f) through (k) below, to utilize the services of each employee or consultant of the Selling Parties 

  
 42 

 
identified on Schedule 6.12 as a “FazaClo Transition Services Employee” (the “FazaClo Transition Services Employees”) for transition services within such
employee’s area of responsibility mutually agreed to by the parties (such services, the “FazaClo Transition Services”). As used in this Section 6.12, a month shall be defined as each monthly anniversary of the
Closing Date. The parties agree that in the event Azur Inc. seeks, after the Closing, to utilize services of additional employees of the Selling Parties that were useful in the operation of the Business and did not become Buyer Employees, the
parties will consult with one another to reach mutual agreement regarding an amendment to Schedule 6.12 that identifies the terms of, and payment associated with, the services to be provided by such employees. 

(b) Azur Inc. shall pay a monthly fee for each FazaClo Transition Services Employee equal to the amount set forth opposite such FazaClo
Transition Services Employee’s name for the applicable month following the Closing on Schedule 6.12 (the aggregate of such monthly fees payable is referred to herein as the “FazaClo Monthly Fee”). In the event that,
during the Transition Period, Azur Inc. determines that it no longer requires the services of a FazaClo Transition Services Employee, Azur Inc. may provide Parent with written notice to that effect (a “Termination Notice”). Such
Termination Notice shall be effective beginning on the first Monday following five (5) Business Days after its receipt by Parent and the monthly fee amount applicable to such FazaClo Transition Services Employee shall thereafter no longer be
taken into account in calculating the FazaClo Monthly Fee (with any amount of FazaClo Monthly Fee relating to such FazaClo Transition Services Employee for the month in which the Termination Notice is delivered, pro rated on the basis of a 30 day
month). 
 (c) During the Transition Services Period, Azur Inc. shall have the right, subject to Sections
6.12(e)-(k) below, to utilize the services of each employee of the Selling Parties identified on Schedule 6.12 as an “Administrative Transition Services Employees” (the “Administrative Transition
Services Employees”) for transition services within such employee’s area of responsibility mutually agreed to by the parties (such services, the “Administrative Transition Services”), up to the maximum percentage of
such Administrative Transition Services Employee’s time during such month as is set forth opposite such Administrative Transition Services Employee’s name on Schedule 6.12. The monthly rate payable for each such Administrative
Transition Services Employee’s time shall be equal to the fully burdened annual base salary and bonus (which amount is listed opposite such Administrative Transition Services Employee’s name on Schedule 6.12 under the heading
“Annual Base Salary”), divided by 365 and multiplied by the number of days (including any fraction of a day and with partially worked days aggregated) in such month in which such Administrative Transition Services Employee provided
Administrative Transition Services (the aggregate of such monthly fees payable is referred to herein as the “Admin Monthly Fee”). 
 (d) During the Transition Services Period, Azur Inc. shall have the right, subject to Sections 6.12(e)-(k) below, to utilize the services of each consultant of the Selling Parties
identified on Schedule 6.12 as a “Transition Consultant” (the “Transition Consultants”, and along with the FazaClo Transition Services Employees and the Administrative

  
 43 

 
Transition Services Employees, the “Transition Services Employees”) for transition services within such consultant’s area of responsibility mutually agreed to by the parties
for up to the maximum percentage of such Transition Consultant’s time set forth opposite such Transition Consultant’s name on Schedule 6.12 (such services, the “Consultant Transition Services”). In respect of
the Consultant Transition Services, Azur Inc. shall pay the monthly rate set forth opposite such Transition Consultant’s name on Schedule 6.12 (the aggregate of such monthly fees payable is referred to herein as the
“Consultant Monthly Fee”; the aggregate FazaClo Monthly Fee, Admin Monthly Fee and the Consultant Monthly Fee referred to herein as the “Monthly Fee”). Notwithstanding the foregoing provisions of this
Section 6.12(d), following the sixtieth (60th) day after the Closing, Parent may notify Azur Inc. that it no longer requires the services of any one or more Transition Consultants. Within five (5) days of receiving such notice,
Azur Inc. shall indicate either (i) that the services of the Transition Consultant may be terminated (which shall have the same effect as the delivery of a Termination Notice as described in the remainder of this Section 6.12(d)) or
(ii) that it commits to increase the percentage of time associated with such Transition Consultant on Schedule 6.12, and until a Termination Notice is delivered and effective, to pay for, 100% of such Transition Consultant’s
time. In the event that, during the Transition Period, Azur Inc. determines that it no longer requires the services of a Transition Consultant, Azur Inc. may provide Parent with a Termination Notice. Such Termination Notice shall be effective
beginning on the first Monday following five (5) Business Days after its receipt by Parent and the monthly fee amount applicable to such Transition Consultant shall thereafter no longer be taken into account in calculating the Consultant
Monthly Fee (with any amount of Consultant Monthly Fee relating to such Transition Consultant for the month in which the Termination Notice is delivered, pro rated on the basis of a 30 day month). 

(e) The Monthly Fee shall be payable each month in which Administrative Transition Services are provided within five (5) Business
Days after the end of such month by wire transfer of immediately available funds to an account designated by Parent. 
 (f) The
parties agree that neither the Selling Parties nor any of their Affiliates shall be obligated to replace any Transition Services Employee whose employment terminates during the Transition Period either at the election of the Transition Services
Employee or at the election of Parent for cause or, with respect to an Administrative Transition Service Employee, in connection with layoffs or other reorganization by Parent. In the event of such a termination, the Monthly Fee, as applicable to
such Transition Services Employee, shall no longer be payable by Buyer; provided that if Parent elects to replace any Administrative Transition Services Employee whose employment is terminated, such replacement employee shall provide the
Administrative Transition Services to Azur Inc. on the same terms and at the same rate as the terminated Administrative Transition Services Employee provided such services. Except as otherwise provided herein, the Selling Parties agree not to
terminate the employment of any FazaClo Transition Services Employee during the Transition Period, unless Azur Inc. has delivered a Termination Notice in respect of such FazaClo Transition Services Employee. In no event shall Parent be obligated to
provide any replacement services or arrange for substitute employees to provide services during the Transition Services Period, 

  
 44 

 
if any, that a Transition Services Employee is absent from work and uses illness, personal or vacation time accrued under Parent’s illness, personal or vacation policy in the Ordinary Course
of Business. Notwithstanding anything to the contrary in this Section 6.12, if and only if the Selling Parties terminate the contract of a Transition Consultant, then Azur Inc. may engage such Transition Consultant for all of the
services provided under such contract. 
 (g) During the Transition Period, Parent shall make available the Transition Services
Employees that are then providing Transition Services pursuant to this Section 6.12 for reasonable consultation with Azur Inc.’s representatives, whether via telephone, written or electronic correspondence or in person at the
Parent’s facilities, for the purpose of conveying and transferring information and performing activities related to the Business. Such consultation shall occur for reasonable periods of time and during Parent’s normal business hours. All
Transition Services shall be performed at or from the premises of Parent or an Affiliate of Parent, unless otherwise agreed by Parent and Azur Inc. 
 (h) Parent shall use commercially reasonable efforts to cause the Transition Services Employees to perform Transition Services with at least the same level of quality and efforts they rendered in relation
to the Business prior to the Closing Date; provided, that Azur Inc.’s sole recourse for any breach of this Section 6.12 by a Transition Services Employee (e.g., for failure or refusal of such employee to provide
Transition Services or to provide Transition Services of an acceptable quality) shall be the termination of such Transition Services in the manner set forth in Section (b) above. The parties agree to cooperate in good faith to realize
their intent in relation to the provision of Transition Services, including: 
 (i) Parent and Azur Inc. agree to each appoint
and maintain a coordinator with responsibility for coordinating the provision of the Transition Services; 
 (ii) Parent shall,
consistent with past practice, supervise the activities of its officers, employees and representatives with respect to provision of the Transition Services; 
 (iii) Parent shall maintain books and records relevant to the provision of the Transition Services in a manner consistent with past practice and shall make such books and records available to Azur Inc.
upon reasonable request by Azur Inc.; and 
 (iv) The parties will use their commercially reasonable efforts to en-sure that
all transactions and activities conducted by Transition Services Employees hereunder are conducted in material compliance with all applicable Laws. 
 (i) Transition Services Employees shall act, and the parties intend that they be treated, as employees of Parent or its Affiliates. Nothing contained in this Agreement shall be construed or implied to
create an agency, partnership, joint venture, or employer and employee relationship between Azur Inc. and the Transition Services Employees. 

  
 45 

 (j) Except as otherwise provided herein, neither party may make any representation, warranty
or commitment, whether express or implied, on behalf of or incur any charges or expenses for or in the name of the other party. No party shall be liable for the act of any other party except as otherwise provided herein or unless such act is
otherwise expressly authorized in writing by both parties hereto. For the avoidance of doubt, Transition Services Employees shall not have the authority to negotiate or enter into contracts or agreements on behalf of Azur Inc. or any of their
Affiliates. 
 (k) Notwithstanding anything to the contrary set forth in this Section 6.12, Selling Parties shall
provide Azur Inc. a credit in the amount of Four Hundred Thousand Dollars ($400,000) to be applied exclusively to each consecutive Monthly Fee after the Closing Date, and Azur Inc. shall not be required to make any cash payments to the Selling
Parties for any Transition Services under this Section 6.12 until such credit has been exhausted. 
 6.13
Transition Services Contracts. Schedule 6.13 lists certain Contracts that are included in the Excluded Assets but may be useful to Azur Inc. in the operation of the Business (the “Transition Services Contracts”).
Following the Closing and for a period of ninety (90) days thereafter, Parent shall request on behalf of Azur Inc. that the other party to the applicable Transition Services Contract provide such services as Azur Inc. requests and Azur Inc.
shall pay all amounts due and payable for such services to Parent or, if so directed by Parent, to the other party to the Transition Services Contract upon the terms and subject to the conditions of such Transition Services Contract. Subject to
Article IX, Buyer shall indemnify Parent for Buyer’s failure to comply with the foregoing sentence. It is expressly understood by the parties that nothing in this Section 6.13 shall limit or in anyway modify
Parent’s rights under the Transition Services Contracts. It is further understood that Parent is not liable for any loss incurred by the Azur Inc. due to the expiration or termination of any of the Transition Services Contracts. 

6.14 Reporting Obligations. Azur Limited acknowledges and agrees that it shall deliver to Sellers’ Representative (as defined
in the Unit Purchase Agreement) the Contingent Payment Quarterly Report throughout the term of the Contingent Payment Period (as defined in the Unit Purchase Agreement) at the time and in the manner required under the Unit Purchase Agreement.
Furthermore, Azur Limited acknowledges and agrees that it shall deliver to Seller, at least five (5) Business Days before the delivery to the Sellers’ Representative, and thereafter so long as Azur Limited has an obligation to make payment
of the Sales Percentage Amount, a copy of the Contingent Payment Quarterly Report (provided that such reports shall be deliverable by Azur Limited once annually within seventy five (75) days after the end of each calendar year after the
Subsequent Run Rate Contingent Payment has become due and payable by Parent under the Unit Purchase Agreement). In addition to the applicable Contingent Payment Quarterly Report, Azur Limited shall deliver to Parent a consolidated report of each of
the Contingent Payment Quarterly Reports delivered in the applicable calendar year. Upon reasonable notice, Azur Limited shall make available to the Selling Parties and their Representatives during normal business hours all of the books, records,
personnel and workpapers used by Azur Limited to prepare each Contingent Payment Quarterly Report. Azur Limited shall notify Parent as soon as reasonably practicable if Buyer reasonably be-

  
 46 

 
lieves the Subsequent Run Rate Contingent Payment (that is dependent upon achieving One Million Five Hundred Thousand Dollars ($1,500,000) of Net Product Revenues for three (3) consecutive
months within a fiscal quarter) will be earned under the Unit Purchase Agreement. 
 6.15 Operation of Business by Buyer.
Buyer agrees that, to the full extent that it fails to operate the Business in such a manner as to not negatively affect the Final Net Working Capital (or the financial components contained therein), including failing to use its commercially
reasonable efforts to collect all accounts receivable reflected in the Closing Net Working Capital Estimate or taking actions to accept Product returns other than in accordance with the Selling Parties’ return policy in effect as of the date of
this Agreement (including, with the commercial launch of DuraSolv), the effect of such actions on the Net Working Capital shall not be taken into account by the parties or the Accounting Firm in determining the Post-Closing Statement of Net Working
Capital or otherwise calculating the Final Net Working Capital. 
 6.16 No ANDA. Prior to the earlier of
(i) January 1, 2010 and (ii) the date on which the full amount of the Contingent Cash Purchase Price has been paid or is no longer payable, neither Buyer (including any successor (that at the time of becoming a successor is not
already actively engaged in taking any of the actions set forth in this Section 6.16), partnership or joint venture of which Buyer or any of its Affiliates is a party), nor any of its Affiliates (other than their employees outside of
their capacity as such) or Representatives (in their capacity as such) shall: 
 (a) file on their own behalf; 

(b) advise or consult with any Person in preparation for or in connection with filing; 

(c) invest in (other than the acquisition of less than five percent (5%) of the voting securities of a publicly traded entity) or
provide financing to any Person that is preparing to file; or 
 (d) assist or encourage any Person in connection with the
filing of, 
 an ANDA using the Product as the reference listed drug with the FDA; provided, however, that Buyer may
(i) agree with a Person for such Person to be the designated distributor and seller of a product for which the FDA has approved an ANDA using the Product as the reference listed drug to take effect only after another third party files an ANDA
using the Product as the reference listed drug not in violation of the foregoing provisions of this Section 6.16 (“Competing ANDA”), and (ii) advise, consult and assist such Person so that they may be in a position
to distribute and sell a product for which the FDA has approved an ANDA using the Product as the reference listed drug at any time after a third party has filed a Competing ANDA, provided, further, however, if Buyer or an Affiliate of Buyer
invests in or provides financing to any Person which Buyer or such Affiliate does not control and continues not to 

  
 47 

 
control, and at the time of such investment the Person in which the investment is being made, to the knowledge of Buyer and its Affiliates after due inquiry, does not plan to and is not preparing
to file an ANDA using the Product as the referenced listed drug with the FDA, such Person thereafter filing an ANDA using the Product as the referenced listed drug with the FDA shall not be a violation of this Section 6.16. 

6.17 Supplement of Disclosure Schedules. The Selling Parties may (but shall not be required to) from time to
time, prior to the Closing Date, supplement the Disclosure Schedules in writing to disclose events or information that occurred or became available after the date of this Agreement that would otherwise render any representation or warranty of the
Selling Parties contained in Article IV, if made on such Closing Date (or, in the case of representations and warranties which address matters only as of a particular date, as of such date), untrue or inaccurate in a manner that would
reasonably be expected to cause the Selling Parties to be unable to satisfy the condition set forth in Section 8.1 hereof (any such notice, a “Seller Notice”). For a period of five (5) Business Days following its
receipt of a Seller Notice (and in the event such Seller Notice is provided within five (5) Business Days of the Closing, the Closing shall occur not earlier than the sixth (6th) Business Day after the delivery of such Seller Notice), Buyer shall have the right to, in its sole discretion,
terminate this Agreement by providing written notice of such termination to the Selling Parties. Such right to terminate shall be Buyer’s sole and exclusive remedy relating to any matters set forth in the Seller Notice. If Buyer fails to
provide written notice of such termination to the Selling Parties by the fifth Business Day after Buyer’s receipt of the Seller Notice then the Seller Notice shall be deemed to have amended the Disclosure Schedules, to have qualified the
representations and warranties in Article IV, and to have cured any misrepresentation or breach of representation or warranty that otherwise might have existed hereunder by reason of the occurrence, or failure to occur, of the event or
events set forth in the Seller Notice. 
 ARTICLE VII 
 CONDITIONS TO THE SELLING PARTIES’ OBLIGATIONS 
 The obligations of
the Selling Parties to consummate the transactions contemplated by this Agreement are subject to the satisfaction, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by the Selling Parties: 

7.1 Representations, Warranties and Covenants. All representations and warranties of Buyer contained in this Agreement
(disregarding all qualifications and exceptions contained herein relating to materiality or Material Adverse Effect) shall be true and correct as of the Closing Date or, in the case of representations and warranties that address matters only as of a
particular date, as of such date, in each case except to the extent that the failure of such representations and warranties to be true and correct would not, individually or in the aggregate, (a) have a material adverse effect on the ability of
Buyer to consummate the transactions contemplated hereby or (b) subject the Selling Parties to any Liability. Buyer shall have performed and satisfied in all material respects the agreements and covenants
re-

  
 48 

 
quired hereby to be performed by it prior to or on the Closing Date. Buyer shall furnish the Selling Parties with a certificate executed by a duly authorized officer of Buyer to the effect that
the conditions set forth in this Section 7.1 are satisfied. 
 7.2 No Laws or Governmental Orders. No
preliminary or permanent injunction or other Governmental Order which prevents the consummation of the sale of the Purchased Assets contemplated hereby shall have been issued and remain in effect (each party agreeing to use its commercially
reasonable efforts to have any such injunction or Governmental Order lifted) and no Law shall have been enacted which prohibits the consummation of the sale of the Purchased Assets. 

7.3 Deliveries. The Selling Parties shall have received from Buyer each of the deliveries described in Section 3.2(b)
hereof 
 ARTICLE VIII 
 CONDITIONS TO BUYER’S OBLIGATIONS 
 The obligations of Buyer to
consummate the transactions contemplated by this Agreement are subject to the satisfaction, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by Buyer: 

8.1 Representations, Warranties and Covenants. All representations and warranties of the Selling Parties contained in this
Agreement (disregarding all qualifications and exceptions contained herein relating to materiality or Material Adverse Effect) shall be true and correct as of the Closing Date or, in the case of representations and warranties that address matters
only as of a particular date, as of such date, in each case except to the extent that the failure of such representations and warranties to be true and correct do not, individually or in the aggregate, have a Material Adverse Effect. The Selling
Parties shall have performed and satisfied in all material respects the agreements and covenants required hereby to be performed by them prior to or on the Closing Date. The Selling Parties shall furnish Buyer with a certificate executed by a duly
authorized officer of each Selling Party to the effect that the conditions set forth in this Section 8.1 are satisfied. 
 8.2 No Law or Governmental Orders. No preliminary or permanent injunction or other Governmental Order which prevents the consummation of the sale of the Purchased Assets contemplated hereby shall
have been issued and remain in effect (each party agreeing to use its commercially reasonable efforts to have any such injunction or Governmental Order lifted) and no Law shall have been enacted which prohibits the consummation of the sale of the
Purchased Assets. 
 8.3 Deliveries. Buyer shall have received from the Selling Parties each of the deliveries described
in Section 3.2(a) hereof. 
 8.4 Consents. The consents of the Persons listed on Schedule 8.4
shall have been duly obtained and shall be in full force and effect on the Closing Date. 

  
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 8.5 Employees. At least eighty percent (80%) of the Business Employees
identified on Schedule 6.3(a)(i) shall have accepted Azur Inc.’s offer of employment pursuant to Section 6.3. 
 ARTICLE IX 
 POST-CLOSING COVENANTS 

9.1 Selling Parties Maintenance of Insurance. The Selling Parties shall maintain product liability insurance against claims
regarding the manufacture and use of the Products in amounts of not less than Five Million Dollars ($5,000,000) for each claim and Ten Million Dollars ($10,000,000) in the aggregate for a period of not less than one (1) year following the
Closing Date. 
 9.2 Survival. 
 (a) The representations, warranties and covenants of the parties contained in this Agreement shall survive the Closing Date for the applicable period set forth in this Section 9.2, and no
party shall have any liability to the other for breach of a representation, warranty or covenant except to the extent that notice of a Claim is asserted in writing and delivered to it prior to the termination of the applicable survival period. No
notice of a Claim with respect to a breach of a representation, warranty or covenant may be given after the applicable time set forth above. 
 (b) Each and every representation and warranty contained in this Agreement and the Ancillary Agreements (other than the representations and warranties contained in Sections 4.1 (the Selling
Parties’ Organization), 4.2 (the Selling Parties’ Authorization), 4.6 (Title to Purchased Assets), 4.11 (No Brokers or Finders), (Buyer’s Organization), 5.2 (Buyer’s Authorization), and 5.6 (No
Brokers or Finders) hereof (collectively, the “SOL Representations and Warranties”)) shall survive the Closing Date solely for purposes of Section 9.3 hereof until the first anniversary of the Closing Date and then
expire. Each SOL Representation and Warranty shall survive the Closing Date solely for purposes of Section 9.3 hereof until, and will expire when, the statute of limitation applicable to such SOL Representation and Warranty expires.

 (c) Each and every covenant contained in this Agreement and the Ancillary Agreements (other than the covenants contained in
Section 6.1(b), covenants for which a party hereto has brought a Claim prior to the Closing Date against the other party for a breach of such covenant and the covenants contained in this Agreement and the Ancillary Agreements, which by
their terms are to be performed by the parties following the Closing (collectively, the “Surviving Covenants”)), shall expire with, and be terminated and extinguished by, the consummation of the sale of the Purchased Assets and the
transfer of the Assumed Liabilities pursuant to this Agreement and shall not survive the Closing Date; and none of the Selling Parties, Buyer or any Representative or Affiliate of any of them shall have any Liability whatsoever with respect to any
such covenant. Each Surviving Covenant shall survive the Closing Date solely for purposes of Sections 3.3, 6.3, 6.8, 6.13 and this Article IX until, and

  
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will expire when, the statute of limitation applicable to the performance of such covenant expires. The Selling Parties’ indemnification obligations pursuant to
Section 9.3(a)(iii) and Buyer’s indemnification obligations pursuant to Section 9.3(b)(iv) shall survive the Closing Date in perpetuity. 
 (d) The expiration of the representations, warranties, covenants and indemnification obligations as provided in this Section 9.2 shall not affect the rights of a party in respect of any Claim
made by such party in a writing received by the other party prior to the expiration of the applicable survival period provided herein, which Claim shall survive until its ultimate resolution. 

9.3 Indemnification. 
 (a) Subject to the provisions of this Article IX, after the Closing, the Selling Parties shall indemnify and hold harmless Buyer and its Affiliates and Buyer’s and such Affiliates’
respective Representatives, and each of their respective successors and assigns (collectively, the “Buyer Indemnified Parties”) from and against all losses, liabilities, damages, (excluding, except as stated in the last paragraph of
Section 9.9, consequential, incidental, special or punitive damages), Actions, Claims, judgments, injunctions, orders, decrees, rulings, settlements, costs, expenses (including reasonable fees and expenses of counsel, consultants,
experts and other professional fees), demands, penalties, fines, interest and assessments (collectively, “Damages”) incurred by the Buyer Indemnified Parties or any of them arising from or as a result of: 

(i) the breach of any representation or warranty of the Selling Parties in this Agreement (provided that any “Material Adverse
Effect” qualification limiting the scope of such representation or warranty shall not be given effect and any such representation or warranty so modified shall be breached only if such representation or warranty as so modified is not accurate
in all material respects); 
 (ii) the breach or non-performance of any Surviving Covenant made by the Selling Parties in this
Agreement or any Ancillary Agreement; 
 (iii) any Retained Liabilities; and 

(iv) the indemnification obligations of the Selling Parties under Section 3.3 and 6.8(f) hereof. 

(b) Subject to the provisions of this Article IX, after the Closing, Buyer shall indemnify and hold harmless each of the
Selling Parties and their Affiliates and the Selling Parties’ and such Affiliates’ Representatives, and each of their respective successors and assigns (collectively, the “Seller Indemnified Parties”) from and against all
Damages as incurred by the Seller Indemnified Parties or any of them arising from or as a result of: 
 (i) the breach of any
representation or warranty of Buyer in this Agreement (provided that any “Material Adverse Effect” qualification limiting the scope of 

  
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such representation or warranty shall not be given effect and any such representation or warranty so modified shall be breached only if such representation or warranty as so modified is not
accurate in all material respects); 
 (ii) the breach or non-performance of any Surviving Covenant made by Buyer in this
Agreement or any Ancillary Agreement; 
 (iii) the indemnification obligations of Buyer under Sections 3.3, 6.3,
6.8, and 6.13 hereof; and 
 (iv) any Assumed Liabilities. 

(c) The knowledge of an Indemnifying Party of a breach of representation, warranty or covenant hereunder (other than by virtue of any
Disclosure Schedule) shall not affect the obligation of an Indemnifying Party to indemnify an Indemnified Party for Damages resulting from such breach. 
 9.4 Indemnification Procedures. Claims for indemnification under this Agreement shall be asserted and resolved as follows: 
 (a) A party claiming indemnification hereunder (an “Indemnified Party”) with respect to any Claims asserted against it by an unaffiliated third-party (a “Third-Party
Claim”) that could give rise to a right of indemnification hereunder shall promptly (and in any event within ten (10) Business Days) (i) notify the party from whom indemnification is sought (such notified party, the
“Indemnifying Party”) of the Third-Party Claim, and (ii) transmit to the Indemnifying Party a written notice (a “Claim Notice”) describing in reasonable detail the nature of the Third-Party Claim, a copy of all
papers served with respect to such Claim (if any), the basis of the Indemnified Party’s request for indemnification hereunder and a good-faith estimate of the amount of Damages attributable to such Claim. Failure to provide such Claim Notice
shall not affect the right of the Indemnified Party’s indemnification hereunder, except to the extent that the Indemnifying Party is materially prejudiced as a result of such failure. 

(b) The Indemnifying Party shall have the right to defend the Indemnified Party against such Third-Party Claim, it being understood that
such election shall be without prejudice to the right of the Indemnifying Party to dispute whether such Claim involves indemnifiable Damages hereunder. If the Indemnifying Party notifies the Indemnified Party within thirty (30) days after
receipt of any Claim Notice that the Indemnifying Party elects to assume the defense of the Third-Party Claim, then the Indemnifying Party shall have the right to defend such Third-Party Claim with counsel selected by the Indemnifying Party who is
reasonably acceptable to the Indemnified Party, by all appropriate proceedings. If the Indemnifying Party irrevocably agrees that the Third Party Claim involves Damages entitled to be indemnified, all costs of such defense or any settlement by
Seller as Indemnifying Party, including reasonable attorneys’ fees, accountants’ fees and any other reasonable fees and expenses related to such defense, shall, subject to the limitations set forth in this Article IX, be
indemni-

  
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fiable Damages. The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof, provided that the Indemnifying Party shall
not consent to the entry of a judgment or enter into any settlement with respect to the matter without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed). If an Indemnifying Party assumes
such defense, the Indemnifying Party shall not be liable for any amount required to be paid by the Indemnified Party that exceeds, where the Indemnified Party has withheld or delayed consent in connection with the proposed compromise or settlement
of a Third-Party Claim, the amount for which that Third-Party Claim could have been settled pursuant to that proposed compromise or settlement (provided that (i) such final compromise or settlement is on substantially the same terms (other than
the monetary amount) as the proposed compromise or settlement where the Indemnified Party has withheld or delayed such consent, or (ii) any final judgment in such matter is for a larger monetary amount). No Third-Party Claim that is being
defended in good faith by the Indemnifying Party shall be settled or compromised by the Indemnified Party without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed). Notwithstanding any
dispute as to liability as between any parties hereunder, if requested by the Indemnifying Party, the Indemnified Party shall act in good faith in responding to, defending against, settling or otherwise dealing with any Third-Party Claim and the
Indemnified Party shall (in addition to, and not in limitation of, its obligation to act in good faith), at the sole cost and expense of the Indemnifying Party, cooperate with the Indemnifying Party and its counsel in contesting any Third-Party
Claim which the Indemnifying Party elects to contest, including the making of any related counterclaim against the Person asserting the Third-Party Claim or any cross complaint against any Person and making available to the Indemnifying Party all
witnesses, records, materials and information in the Indemnified Party’s possession or under its control (or in the possession or control of any of its Affiliates or Representatives) relating to the Third-Party Claim as may be reasonably
requested by the Indemnifying Party or its counsel. The Indemnified Party may participate in, but not control, any defense or settlement of any Third-Party Claim controlled by the Indemnifying Party pursuant to this Section 9.4(b), and
the Indemnified Party shall bear its own costs and expenses with respect to such participation; provided, however, if in the opinion of counsel of the Indemnified Party there is a conflict of interest between the Indemnifying Party and
the Indemnified Party, the Indemnifying Party shall bear the reasonable costs and expenses of one counsel to the Indemnified Party in connection with such defense. 
 (c) If the Indemnifying Party fails to notify the Indemnified Party within thirty (30) days after receipt of any Claim Notice that the Indemnifying Party elects to defend the Indemnified Party
pursuant to Section 9.4(b), the Indemnified Party shall have the right to defend, at, subject to the limitations of this Article IX and the last sentence of this Section 9.4(c), the sole cost and expense of the
Indemnifying Party, the Third-Party Claim by all appropriate proceedings. The Indemnified Party shall have full control of such defense and proceedings; provided, however, that the Indemnified Party may not enter into any compromise or
settlement of such Third-Party Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent, which consent shall not be unreasonably withheld or delayed. The Indemnifying Party may participate in, but not
control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 9.4(c), and the Indemnifying 

  
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Party shall bear its own costs and expenses with respect to such participation. If the Indemnifying Party elects not to (or is deemed to have elected not to) assume the defense of a Third-Party
Claim, or elects to assume the defense of a Third-Party Claim, but reserves the right to dispute whether such Claim is an indemnifiable Damage hereunder, the determination of whether the Indemnified Party is entitled to indemnification hereunder
shall be resolved either by the parties hereto or pursuant to arbitration as provided herein. 
 (d) With respect to any
indemnification sought by an Indemnified Party from the Indemnifying Party that does not involve a Third-Party Claim, the Indemnified Party shall promptly provide written notice to the Indemnifying Party of any Claim with respect to which the
Indemnified Party believes it is or may be entitled to indemnification hereunder (an “Indemnity Notice”). The Indemnity Notice shall describe in reasonable detail the nature of the Claim, the Indemnified Party’s best estimate
of the amount of Damages attributable to such Claim (the “Claimed Amount”) and the basis of the Indemnified Party’s request for indemnification hereunder. 

(e) If the Indemnifying Party does not notify the Indemnified Party within thirty (30) days after its receipt of the Indemnity
Notice that the Indemnifying Party disputes such Claim (the “Dispute Notice”) in which the Indemnifying Party (i) agrees that part, but not all, of the Claimed Amount is owed to the Indemnified Party (the “Agreed
Amount”) or (ii) asserts that no part of the Claimed Amount is owed to the Indemnified Party (any part of the Claimed Amount that is not agreed by the Indemnifying Party to be owed to the Indemnified Party pursuant to the Dispute
Notice (or the entire Claimed Amount if the Indemnifying Party asserts that no part of the Claimed Amount is owed) shall be referred to as the “Contested Amount”), the Indemnifying Party shall be deemed to have accepted and agreed
with such Claim. The Indemnifying Party shall pay within fifteen (15) days of the receipt of the Dispute Notice the Agreed Amount. 
 (f) If the Indemnifying Party has disputed a Claim for indemnification (including any Third-Party Claim), the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a
resolution to such dispute. If the Indemnifying Party and the Indemnified Party are unable to resolve such dispute regarding a Contested Amount within thirty (30) days after delivery of the Dispute Notice, such dispute shall be resolved by
confidential binding arbitration as provided in Section 10.15. Neither party shall have the right to offset any amounts owed to the other party for Damages such party is otherwise entitled to recover unless so determined by the
arbitrator or such amount is an Agreed Amount. 
 (g) The term “Damages” as used in this Article IX is not
limited to matters asserted by third parties against an Indemnified Party, but includes Damages incurred or sustained by an Indemnified Party in the absence of Third-Party Claims. An Indemnified Party’s right to indemnification pursuant to this
Article IX shall not be conditioned upon the payment of amounts by such Indemnified Party. 

  
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 9.5 Limitation on Liability. Notwithstanding anything to the contrary in this
Agreement: 
 (a) (i) the Selling Parties shall not be obligated to indemnify any Buyer Indemnified Party under
Sections 9.3(a)(i) or 9.3(a)(ii), and (ii) Buyer shall not be obligated to indemnify any Seller Indemnified Party under Section 9.3(b)(i) or 9.3(b)(ii), unless and until the aggregate Damages suffered by
all Buyer Indemnified Parties or by all the Seller Indemnified Parties, as the case may be, that would otherwise be subject to indemnification hereunder, exceeds the sum of Five Hundred Thousand Dollars ($500,000) (the “Deductible
Amount”), and then such Indemnified Party shall be entitled to indemnification for all Damages in excess of the Deductible Amount; 
 (b) Except for Damages indemnified pursuant to Section 9.3(a)(iii) or Section 9.3(b)(iv), no Indemnifying Party shall be responsible for indemnifying any Indemnified Party for any
individual Claims or series of related Claims under this Agreement where the Damages relating thereto are less than Thirty Thousand Dollars ($30,000), and such items shall not be aggregated for purposes of clause (a) above; and 

(c) (i) the Selling Parties shall not be obligated to indemnify any Buyer Indemnified Party under Sections 9.3(a)(i) or
9.3(a)(ii), and (ii) Buyer shall not be obligated to indemnify any Seller Indemnified Party under Section 9.3(b)(i) or 9.3(b)(ii), to the extent the aggregate liability of the Selling Parties to the Buyer Indemnified
Parties and Buyer to the Seller Indemnified Parties for indemnification, as the case may be, exceeds an aggregate amount equal to Eight Million Dollars ($8,000,000). 
 9.6 Calculation and Characterization of Damages. 
 (a) In calculating the
amount of the Damages to any Indemnified Party hereunder, the amount of Damages will be net of (i) any amounts recovered by the Indemnified Party from any third party (including insurance proceeds) as a result of the facts or circumstances
giving rise to the Damages and (ii) any Tax benefits or Tax losses that are actually realized by the Indemnified Party as a result of the incurrence of Damages from which indemnification is sought (such amounts referred to in clauses
(i) or (ii), a “Reimbursement”). The Indemnified Parties shall pursue payment under or from any insurer or third party in respect of such Damages prior to pursuing payment from any Indemnifying Party. 

(b) Any indemnity payment made pursuant to the provisions of this Article IX shall be deemed to be and treated, to the extent
permitted by Law, as an adjustment to the Purchase Price for all purposes. 
 9.7 Exclusive Remedy. From and after the
Closing, except for any equitable relief to which any party hereto may be entitled or in the case of actual fraud, the indemnification provisions of Sections 3.3, 6.3, 6.8, 6.13 and this Article IX shall be
the sole and exclusive remedy with respect to any and all Claims relating to the subject matter of this Agreement and no party shall pursue or seek to pursue any other remedy. In furtherance of

  
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the foregoing, Buyer hereby waives, to the fullest extent permitted under applicable Law, any and all rights, Claims and causes of action it or any of its Affiliates may have against the Selling
Parties arising under or based upon any Law. 
 9.8 Mitigation of Damages. The parties hereto shall cooperate with each
other to mitigate any Damages. 
 9.9 Certain Damages. IN NO EVENT SHALL THE INDEMNIFICATION OBLIGATIONS UNDER THIS
AGREEMENT (INCLUDING UNDER THIS ARTICLE IX) OR THE TERM “DAMAGES” COVER OR INCLUDE CONSEQUENTIAL, INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES OR LOST PROFITS, DIMINUTION IN VALUE OR ANY DAMAGES BASED ON ANY TYPE OF
MULTIPLE, WHETHER BASED ON STATUTE, CONTRACT, TORT OR OTHERWISE, AND WHETHER OR NOT ARISING FROM THE INDEMNIFYING PARTY’S SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT. 

For the avoidance of doubt, in the event a third party obtains consequential, incidental, special, indirect or punitive Damages or lost
profits from a Buyer Indemnified Party or a Seller Indemnified Party, such Damages shall, to the extent they would otherwise be indemnifiable under this Agreement but for the fact that they are consequential, incidental, special, indirect or
punitive Damages, be direct Damages to such Buyer Indemnified Party or Seller Indemnified Party for purposes of this Agreement. 

9.10 Covenant Not to Compete. 
 (a) As an inducement to Buyer to enter into this Agreement, the Selling Parties and their Affiliates agree that for a period of five (5) years after the Closing Date the Selling Parties shall not,
directly or indirectly, own an interest in, manage, operate, join, control or participate in the ownership, management, operation or control of any profit or non-profit business or organization which anywhere in the world (the
“Territory”) develops, formulates, tests, produces, licenses, commercializes, manufactures or distributes a product for medical or industry purposes incorporating Clozapine. 

(b) If a court determines that the foregoing restrictions are too broad or otherwise unreasonable under applicable Law, including with
respect to time or space, the court is hereby requested and authorized by the parties to revise the foregoing restriction to include the maximum restrictions allowable under applicable Law. Each of the parties acknowledges, however, that this
Section 9.10 has been negotiated by the parties and that the geographical and time limitations on activities are reasonable in light of the circumstances pertaining to the parties. 

(c) In the event of any breach or threatened breach by the Selling Parties of any provision of this Section 9.10, Buyer shall
be entitled to seek injunctive or other equitable relief restraining such party from competing or soliciting in violation of this Section. Such 

  
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relief, if obtained, shall be in addition to and not in lieu of any other remedies that may be available, including an action for the recovery of Damages. 

(d) Notwithstanding the foregoing, the covenant not to compete contained in this Section 9.10 shall not apply to any
independent third party that has initiated the development, formulation, test, production, license, commercialization, manufacture or distribution of a product for medical or industry purposes incorporating Clozapine and that subsequently acquires
control of a Selling Party or any of its Affiliates by way of merger, stock purchase, unit purchase or otherwise, or acquires all or substantially all of the assets of the Selling Parties or any of their Affiliates and holds such assets in a
separate subsidiary, but the provisions of this Section 9.10 shall thereafter continue to apply to the acquired Selling Party, Affiliate or such Subsidiary. 
 ARTICLE X 
 MISCELLANEOUS 

10.1 Termination. 
 (a) This Agreement may be terminated at any time prior to Closing: 
 (i) by
mutual written consent of Buyer and Parent; 
 (ii) by Buyer or either Selling Party if the Closing shall not have occurred on
or before the date which is sixty (60) days after date of this Agreement, unless the failure to consummate the transactions contemplated hereby on or prior to such date is the result of any action or inaction under this Agreement by the party
seeking to terminate the Agreement pursuant to the terms of this Section 10.1(a)(ii); or 
 (iii) by Buyer or
either Selling Party by written notice to the other party if any Governmental Authority with jurisdiction over such matters shall have issued a Governmental Order permanently restraining, enjoining or otherwise prohibiting the transactions
contemplated hereby, and such Governmental Order shall have become final and unappealable; provided, however, that the terms of this Section 10.1(a)(iii) shall not be available to any party unless such party shall have used
its commercially reasonable efforts to oppose any such Governmental Order or to have such Govern-mental Order vacated or made inapplicable to the transactions contemplated hereby. 

(b) In the event of termination of this Agreement, no party hereto shall have any Liability under this Agreement to any other party
hereto, except for any willful breach of this Agreement occurring prior to the termination of this Agreement for which all legal remedies will remain available. Upon any such termination, each party will redeliver all documents, work papers and
other material of any other party relating to the transactions contemplated hereby, whether so obtained before or after the execution hereof, to the party furnishing the same. The provisions of Section 6.2(b) and this
Article X shall continue in full 

  
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force and effect notwithstanding any termination of this Agreement or any provision hereof to the contrary. 
 10.2 Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by any party (by Contract, operation of Law or otherwise) without the prior written consent of
the other party. Notwithstanding the foregoing, each of the Selling Parties and Buyer shall have the right, in its sole and absolute discretion, to assign this Agreement and its rights and obligations hereunder to the acquiring party in connection
with the sale of all or substantially all of its assets or in connection with a merger between it and a Person that is not an Affiliate of Parent. No such assignment shall relieve the assignor of its obligations hereunder. Subject to the foregoing,
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 10.3 Cooperation. To the extent the parties determine after the Closing that any of the Purchased Assets were not conveyed or delivered to Buyer at the Closing, the Selling Parties shall and shall
cause their Affiliates to, subject to Section 3.3, transfer and deliver such assets to Buyer without additional consideration and, upon reasonable request, execute and deliver a bill of sale or other instrument of transfer evidencing
such transfer. To the extent the parties determine after the Closing that any of the Excluded Assets were conveyed or are in the possession of Buyer, Buyer shall and shall cause its Affiliates to, subject to Section 3.3, transfer and
deliver such assets to the Selling Parties without consideration and, upon reasonable request, execute and deliver a bill of sale or other instrument of transfer evidencing such transfer. 

10.4 Notices. All notices, requests, demands and other communications which are required or may be given under this Agreement
shall be in writing and shall be deemed to have been duly given (a) when received if personally delivered, (b) when transmitted if transmitted by telecopy, electronic or digital transmission with confirmation of delivery, (c) the day
after it is sent, if sent for next day delivery to a domestic address by recognized overnight delivery service and (d) upon receipt, if sent by certified or registered mail, return receipt requested. In each case any such notice, request,
demand or other communication shall be sent to: 
 If to the Selling Parties or Parent, to: 

Avanir Pharmaceuticals 
 101 Enterprise, Suite 300 
 Aliso Viejo, CA 92656 

Attention: Greg Flesher 
 Facsimile: (949) 643-6869 

  
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 with a copy to (which shall not constitute notice): 

Latham & Watkins LLP 
 650 Town Center Drive, 20th Floor 
 Costa Mesa, CA 92626-1925 

Attention: Jonn R. Beeson, Esq. 
 Facsimile: (714) 755-8212 
 If to Buyer, to: 

Azur Pharma International III Limited 
 Clarendon House 
 2 Church Street 

Hamilton HM11 Bermuda 
 Attention: Secretary 
 Facsimile: (441) 295-2408 

Azur Pharma Inc. 
 102 Pickering Way, Suite 200 
 Exton, PA 19341 

Attention: Michael Kelly 
 Facsimile: (484) 875-5814 
 with a copy to (which shall not constitute
notice): 
 Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, NY 10005 

Attention: Christopher T. Cox 
 Facsimile: (212) 378-2173 
 or to such other place and with such other copies as either party
may designate as to itself by written notice to the other. 
 10.5 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED,
INTERPRETED AND THE RIGHTS OF THE PARTIES AND ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS). 

10.6 Entire Agreement; Amendments and Waivers. This Agreement (together with all Exhibits and Schedules hereto), the
Confidentiality Agreement and the Ancillary Agreements constitute the entire agreement among the parties pertaining to the subject matter hereof and thereof and supersede all prior agreements, understandings, negotiations and discussions, whether
oral or written, of the parties. This Agreement may not be amended 

  
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except by an instrument in writing signed on behalf of each of the parties hereto. No amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in writing
by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless
otherwise expressly provided. 
 10.7 Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same instrument, binding upon the parties hereto. A facsimile signature page shall be deemed an original, unless an original is required by applicable Law.

 10.8 No Third Party Beneficiaries; Expenses. 
 (a) This Agreement and all of its conditions and provisions are for the sole and exclusive benefit of the parties hereto and their respective successors and permitted assigns, and nothing in this
Agreement, express or implied, is intended to confer upon any other Person, including any union or employee or former employee of the Selling Parties any rights or remedies of any nature whatsoever, including any rights of employment for any
specified period, under or by reason of this Agreement or any provision hereof; provided, however, that any Person that is not a party to this Agreement, but, by the terms of Article IX, is entitled to indemnification,
shall be considered a third-party beneficiary of this Agreement, with full rights of enforcement as though such Person was a signatory to this Agreement; provided, however, that Cutler (as defined in the Unit Purchase Agreement) and
the Sellers’ Representative (as defined in the Unit Purchase Agreement) shall be considered a third-party beneficiary of this Agreement, with full rights of enforcement as though such Person was a signatory to this Agreement with respect to
Buyer’s assumption of the obligations relating to the Contingent Payments and Non-U.S. Licensing Earn-Out Payment, including the reporting obligations related thereto. 
 (b) Except as otherwise provided in Section 2.6 hereof, each party hereto shall pay the fees and expenses incurred by it in connection with the negotiation and preparation of this Agreement
and the Ancillary Agreements, the performance of the terms of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. 

10.9 Severability. In the event that any one or more of the provisions contained in this Agreement or in any other instrument
referred to herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by Law, such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement or any other such instrument. 
 10.10 Titles; Gender; Certain Interpretive Matters. The titles, captions or
headings of the Articles and Sections herein, and the use of a particular gender, are for convenience of reference only and are not intended to be a part of or to affect or restrict the mean-

  
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ing or interpretation of this Agreement. Any terms used in this Agreement, unless the context otherwise requires, may be used in the singular or plural, depending upon the reference. All
references in this Agreement to Dollars or “$” shall mean U.S. Dollars. Except as otherwise provided or if the context otherwise requires, whenever used in this Agreement, (a) the terms “include” and “including”
shall be deemed to be followed by the phrase “without limitation,” (b) the words “herein,” “hereof’ and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any
particular Section or other subdivision, (c) any definition of or reference to any Law, agreement, instrument or other document herein will be construed as referring to such Law, agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified and (d) any definition of or reference to any statute will be construed as referring also to any rules and regulations promulgated thereunder. 

10.11 Publicity. Except as required by Law, the rules of any national securities exchange on which its securities are listed or
otherwise consistent with Parent’s past practices as a publicly traded company, the parties hereto shall not, without the prior consent of the other parties, which shall not be unreasonably withheld or delayed, issue any press release or make
any public statement regarding the transactions contemplated hereby. Notwithstanding anything to the contrary herein, the Buyer may make such disclosure, after Closing, as it reasonably deems appropriate in connection with communications with its
co-investors or in connection with a private placement of its equity or debt securities. Notwithstanding anything to the contrary herein, Buyer, the Selling Parties or any of their respective Affiliates may make any public statement in response to
specific questions by the press, analysts, investors or those attending industry conferences or financial analyst conference calls, so long as any such statements are not inconsistent with previous press releases, public disclosures or public
statements made by Buyer and the Selling Parties and do not reveal non-public information regarding Buyer or the Selling Parties. 
 10.12 Exhibits and Schedules; Construction of Certain Provisions. The Exhibits and Schedules referred to in this Agreement shall be construed with and be deemed as an integral part of this
Agreement to the same extent as if the same had been set forth in their entirety herein. 
 10.13 Bulk Transfer Laws.
Buyer acknowledges that the Selling Parties will not comply with the provisions of any bulk transfer laws of any jurisdiction in connection with the transactions contemplated by this Agreement and waives any remedies against the Selling Parties for
noncompliance therewith. 
 10.14 Cumulative Remedies. Subject to Section 9.7 hereof, all rights and remedies
of either party hereto are cumulative of each other and of every other right or remedy such party may otherwise have at Law or in equity, and the exercise of one or more rights or remedies shall not prejudice or impair the concurrent or subsequent
exercise of other rights or remedies. 

  
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 10.15 Arbitration. If any controversy or claim arising out of or relating to this
Agreement or any Ancillary Agreement, or the breach thereof, cannot first be resolved by the parties within thirty (30) days after the written notice thereof, then either party may submit the controversy or claim to confidential binding
arbitration in accordance with the JAMS Comprehensive Arbitration Rules and Procedures then in effect. The arbitration will be conducted by one arbitrator, mutually selected by the Indemnified Party and the Indemnifying Party; provided,
however, that if the Indemnified Party and the Indemnifying Party fail to mutually select an arbitrator within fifteen (15) Business Days after the contested portion of the indemnification claim is submitted to arbitration, then the
arbitrator shall be selected by JAMS in accordance with its Comprehensive Arbitration Rules and Procedures then in effect. The parties agree to use commercially reasonable efforts to cause the arbitration hearing to be conducted within seventy-five
(75) days after the appointment of the arbitrator, and to use commercially reasonable efforts to cause the decision of the arbitrator to be furnished within fifteen (15) days after the conclusion of the arbitration hearing. The final
decision of the arbitrator shall be furnished in writing to the Indemnifying Party and the Indemnified Party and include (a) the dollar amount of the award to the Indemnified Party, if any, and (b) a determination as to whether either
party to the arbitration shall be required to bear and pay all or a portion of the other party’s attorneys’ fees and other expenses relating to the arbitration. Judgment upon any award, judgment, decree or order rendered by the arbitrator
may be entered in any court having competent jurisdiction. The place of the arbitration shall be in the City of New York, New York and the language of the arbitration shall be English. 

10.16 Time of Essence. Time is of the essence in this Agreement. If the date specified in this Agreement for giving any notice or
taking any action is not a Business Day (or if the period during which any notice is required to be given or any action taken expires on a date which is not a Business Day), then the date for giving such notice or taking such action (and the
expiration date of such period during which notice is required to be given or action taken) shall be the next day which is a Business Day. 
 10.17 Drafting. The parties hereto agree that this Agreement is the product of negotiations between sophisticated parties and individuals, all of whom were represented by counsel, and each of whom
had an opportunity to participate in and did participate in, the drafting of each provision hereof. Accordingly, ambiguities in this Agreement, if any, shall not be construed strictly or in favor of or against any party hereto but rather shall be
given a fair and reasonable construction without regard to the rule of contra proferentem. 
 [Signature Page Follows]

  
 62 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on
their respective behalves, by their respective officers thereunto duly authorized, all as of the day and year first above written. 
  

					
	Seller:
	
	 ALAMO PHARMACEUTICALS, LLC,
 a California limited liability corporation

		
	By:	 	Avanir Pharmaceuticals, its sole member
			
		 	By:	 	 /s/ Keith Katkin

		 	Name:	 	Keith Katkin
		 	Title:	 	President and Chief Executive Officer
	
	Parent:
	
	 AVANIR PHARMACEUTICALS,
 a California corporation

		
	By:	 	 /s/ Keith Katkin

	Name:	 	Keith Katkin
	Title:	 	President and Chief Executive Officer

 SIGNATURE PAGE TO ASSET
PURCHASE AGREEMENT 

 [Signature Page of Buyer] 

 

			
	Buyer:
	
	AZUR PHARMA INTERNATIONAL III LIMITED
		
	By:	 	 /s/ Kevin Insley

	Name:	 	 Kevin Insley

	Title:	 	 President

	
	AZUR PHARMA INC.
		
	By:	 	 /s/ David Brabazon

	Name:	 	 David Brabazon

	Title:	 	 Secretary

 SIGNATURE PAGE TO ASSET
PURCHASE AGREEMENT

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