Document:

Exhibit

EXECUTION VERSION
        

Exhibit 10.7

STOCK AND ASSET PURCHASE AGREEMENT
by and among
IMPAX LABORATORIES, INC. 

and
BORA PHARMACEUTICALS CO., LTD.
Dated as of December 19, 2017

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TABLE OF CONTENTS
Page
ARTICLE I 
 
DEFINED TERMS
	
						
	1.1
	 
	Interpretation; Construction
	 
	1
	

	1.2
	 
	Certain Definitions
	 
	2
	

	1.3
	 
	Other Definitional Provisions
	 
	11
	

ARTICLE II 
 
PURCHASE AND SALE
	
						
	2.1
	 
	Purchase and Sale
	 
	11
	

	2.2
	 
	Transferred Loans
	 
	12
	

	2.3
	 
	Purchase Price Allocation
	 
	12
	

	2.4
	 
	Purchase Price and Payment at the Closing
	 
	12
	

	2.5
	 
	Holdback
	 
	14
	

ARTICLE III 
 
CLOSING
	
						
	3.1
	 
	Time and Place of Closing
	 
	15
	

	3.2
	 
	Deliveries at Closing
	 
	15
	

ARTICLE IV 
 
REPRESENTATIONS AND WARRANTIES RELATING TO THE SELLER
	
						
	4.1
	 
	Ownership
	 
	17
	

	4.2
	 
	Authority; Approval
	 
	17
	

	4.3
	 
	No Violations
	 
	17
	

	4.4
	 
	Transferred Loans
	 
	17
	

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ARTICLE V 
 
REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY
	
						
	5.1
	 
	Organization, Good Standing and Qualification
	 
	17
	

	5.2
	 
	Capital Structure
	 
	18
	

	5.3
	 
	Governmental Filing; No Violations
	 
	18
	

	5.4
	 
	Financial Statements
	 
	18
	

	5.5
	 
	Litigation and Liabilities
	 
	19
	

	5.6
	 
	Employee Benefits
	 
	19
	

	5.7
	 
	Compliance with Laws; Permits
	 
	20
	

	5.8
	 
	Material Contracts 
	 
	20
	

	5.9
	 
	Leased Real Property
	 
	21
	

	5.10
	 
	Environmental Matters
	 
	21
	

	5.11
	 
	Taxes
	 
	22
	

	5.12
	 
	Labor Matters
	 
	23
	

	5.13
	 
	Intellectual Property
	 
	23
	

	5.14
	 
	Insurance
	 
	23
	

	5.15
	 
	Brokers and Finders
	 
	24
	

	5.16
	 
	Assets
	 
	24
	

	5.17
	 
	Information Technology
	 
	24
	

	5.18
	 
	Certain Business Relationships with Affiliates
	 
	24
	

	5.19
	 
	Inventory; Bulk
	 
	25
	

	5.20
	 
	No Other Representation or Warranties
	 
	25
	

ARTICLE VI 
 
REPRESENTATIONS AND WARRANTIES OF BUYER
	
						
	6.1
	 
	Organization, Good Standing and Qualification
	 
	26
	

	6.2
	 
	Authority; Approval
	 
	26
	

	6.3
	 
	Governmental Filings; No Violations
	 
	26
	

	6.4
	 
	Litigation
	 
	27
	

	6.5
	 
	Available Funds
	 
	27
	

	6.6
	 
	Brokers
	 
	27
	

	6.7
	 
	Independent Investigation
	 
	27
	

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ARTICLE VII 
 
COVENANTS
	
						
	7.1
	 
	Interim Operations of the Company
	 
	28
	

	7.2
	 
	Filings; Other Actions; Notification
	 
	29
	

	7.3
	 
	Access and Reports
	 
	30
	

	7.4
	 
	Publicity
	 
	30
	

	7.5
	 
	Employee Benefits
	 
	31
	

	7.6
	 
	Confidentiality
	 
	31
	

	7.7
	 
	Tax Matters
	 
	32
	

	7.8
	 
	Use of "Impax" Name
	 
	34
	

	7.9
	 
	Intercompany Arrangements
	 
	34
	

	7.10
	 
	Insurance
	 
	35
	

	7.11
	 
	Financing 
	 
	35
	

	7.12
	 
	Non-solicitation
	 
	37
	

	7.13
	 
	Director Resignation
	 
	37
	

	7.14
	 
	Buyer Shareholder Meeting
	 
	37
	

	7.15
	 
	Anit-Trust Clearance Certificate
	 
	37
	

	7.16
	 
	Bank Accounts, Chops and Seals
	 
	37
	

	7.17
	 
	Buyer Registration
	 
	 

	7.18
	 
	Net Working Capital
	 
	38
	

ARTICLE VIII 
 
CONDITIONS
	
						
	8.1
	 
	Conditions to Obligations of Buyer
	 
	38
	

	8.2
	 
	Conditions to Obligations of the Seller
	 
	39
	

ARTICLE IX 
 
TERMINATION
	
						
	9.1
	 
	Termination 
	 
	39
	

	9.2
	 
	Effect of Termination and Abandonment
	 
	40
	

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ARTICLE X 
 
INDEMNIFICATION
	
						
	10.1
	 
	Survival
	 
	40
	

	10.2
	 
	Indemnification by the Seller
	 
	41
	

	10.3
	 
	Indemnification by Buyer
	 
	42
	

	10.4
	 
	Third Party Claim Indemnification Procedures
	 
	42
	

	10.5
	 
	Limitations on INdemnification
	 
	44
	

	10.6
	 
	Payments
	 
	45
	

	10.7
	 
	Characterization of Indemnification Paymnets
	 
	46
	

	10.8
	 
	Exclusive Remedy
	 
	46
	

ARTICLE XI 
 
MISCELLANEOUS
	
						
	11.1
	 
	Amendment;Waiver
	 
	46
	

	1.2
	 
	Expenses
	 
	46
	

	11.3
	 
	Counterparts
	 
	46
	

	11.4
	 
	GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL; SPECIFIC PERFORMANCE
	 
	47
	

	11.5
	 
	Specific Enforcement
	 
	47
	

	11.6
	 
	Notices
	 
	47
	

	11.7
	 
	Entire Agreement
	 
	48
	

	11.8
	 
	No Third Party Beneficiaries
	 
	49
	

	11.9
	 
	Severability
	 
	49
	

	11.10
	 
	Assignment
	 
	49
	

	11.11
	 
	Fulfillment of Obligations
	 
	49
	

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EXHIBITS
	
			
	Exhibit A
	 
	- Form of Assignment and Assumption Agreement

	Exhibit B
	 
	- Form of Bill of Sale

	Exhibit C
	 
	- MSA

	Exhibit D
	 
	- License Agreement

	Exhibit E
	 
	- Form of Transition Services Agreement

	Exhibit F
	 
	- Illustrative NEt Working Capital

	Exhibit G
	 
	- Purchase Price Allocation

	Exhibit H
	 
	- Disclosure Letter

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STOCK AND ASSET PURCHASE AGREEMENT
THIS STOCK AND ASSET PURCHASE AGREEMENT (including the exhibits hereto, each as amended or restated from time to time, this “Agreement”), dated as of December 19, 2017 (the “Execution Date”), is made by and among Bora Pharmaceuticals Co., Ltd., a corporation organized under the Laws of the Republic of China (“Buyer”), and Impax Laboratories, Inc., a Delaware corporation (the “Seller”). All of the signatories to this Agreement are collectively referred to as the “Parties”, and each of them individually is referred to as a “Party”.
RECITALS
WHEREAS, as of the date hereof, the Seller owns all of the issued share capital of Impax Laboratories (Taiwan), Inc., a company organized under the Laws of the Republic of China (the “Company”), which consists of 125,000,000 common shares, having a par value of NT$10.00 per share, of the Company (collectively, the “Shares”);
WHEREAS, as of the date hereof, the Seller owns all right, title and interest in, to and under, the Transferred Loans (as defined herein);
WHEREAS, the Seller desires to sell to Buyer, and Buyer desires to purchase from the Seller, the Shares and the Transferred Loans, in each case subject to the terms and conditions set forth in this Agreement;
WHEREAS, concurrently with the execution of this Agreement, the Parties (or one or more of their Affiliates) are entering into (i) a Master Supply Agreement (the “MSA”), pursuant to which the Company shall manufacture and supply the Products (as such term is defined in the MSA) to the Seller and (ii) a License Agreement (the “License Agreement”), pursuant to which the Seller shall grant to Buyer the exclusive right to commercialize the Numient® pharmaceutical product in the Republic of China, provided that each of the MSA and the License Agreement shall be effective as of the Closing; and
WHEREAS, Buyer and the Seller desire to make certain representations, warranties, covenants and agreements in connection with this Agreement.
NOW, THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements contained herein, the Parties agree as follows:
ARTICLE I
 
DEFINED TERMS
1.1    Interpretation; Construction.

    

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(a)    The table of contents and headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. Where a reference in this Agreement is made to an Exhibit, Article or Section, such reference shall be to an Exhibit, Article or Section to this Agreement unless otherwise indicated. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”
(b)    The Parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.
1.2    Certain Definitions.  As used in this Agreement, the following terms have the meanings set forth below:
“Accountant” has the meaning set forth in Section 2.4(b)(ii).
“Accrued Bonuses” has the meaning set forth in Section 7.5(a).
“Acquisition” means the purchase and sale of the Shares in accordance with this Agreement.
“Affiliate” means, with respect to an entity, any other entity controlling, controlled by or under common control with, such entity. The term “control”, including the correlative terms “controlling,” “controlled by” and “under common control with”, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through ownership of voting securities, by contract or otherwise.
“Affiliate Contract” has the meaning set forth in Section 5.18(b).
“Agreed Principles” has the meaning set forth in Section 2.4(a)(i).
“Agreement” has the meaning set forth in the Preamble.
“Ancillary Agreements” means the Assignment and Assumption Agreement, the Bill of Sale, the MSA, the License Agreement, the Transition Services Agreement, the Quality Agreement and the Pharmacovigilance Agreement.
“Anti-Trust Clearance Certificate” means the certificate issued by each of the Seller and Buyer, dated as of the date hereof, with respect to the Company’s or Buyer’s, as the case may be, good faith estimate of its market share and revenue data in the Republic of China.
“Assignment and Assumption Agreement” means the assignment and assumption agreement between the Seller and Buyer, attached as Exhibit A.
“Assumed Liabilities” has the meaning set forth in Section 2.2.

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“Bankruptcy and Equity Exception” has the meaning set forth in Section 4.2.
“Benefit Plans” has the meaning set forth in Section 5.6(a).
“Bill of Sale” means the bill of sale between the Seller and Buyer, attached as Exhibit B.
“Business Day” means any day except Saturday, Sunday or any other day on which commercial banks located in New York, California, Hong Kong or the Republic of China are authorized or required by Law to be closed for business.
“Buyer” has the meaning set forth in the Preamble.
“Buyer Indemnified Parties” has the meaning set forth in Section 10.2(a).
“Buyer Shareholder Approval” means the approval of this Agreement and the transactions contemplated hereunder by the holders of a majority of the outstanding shares of Buyer entitled to vote on such matter at a shareholders’ meeting duly called and held for such purpose.
“Buyer Shareholder Meeting” means a duly called meeting of the holders of the shares of Buyer who are entitled to vote on this Agreement and the transactions contemplated hereunder.
“Business IT” means all Information Technology which is owned by the Company.
“Cause” means the occurrence of any one of the following events:
(i)any act or omission by an employee resulting or intended to result in personal gain at the expense of the Company (or its Affiliates);
(ii)the improper disclosure by an employee of proprietary, privileged or confidential information of the Company (or its Affiliates ) that the Company (or its Affiliates or an employee are under a duty to protect or an employee’s breach of a fiduciary duty owed to the Company (or its Affiliates); 
(iii)the violation by an employee of any agreement to which such employee is party with the Company (or its Affiliates) including, without limitation, any confidentiality agreement or nondisclosure agreement;
(iv)misconduct by an employee, including, but not limited to, unethical conduct, fraud, falsification of the Company’s records, intentional violation of or negligent disregard for the policies, rules and procedures of the Company (including but not limited to policies, rules of and procedures set forth in the Company’s employee handbook or the Company code of conduct), insubordination, theft, violent acts or threats of violence, failure of a drug 

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screening, or the use of the property, facilities or services of the Company (or its Affiliates) for illegal purposes; or 
(v)the commission of any criminal act by an employees, whether or not performed in the workplace, that subjects, or if generally known would subject, the Company (or an Affiliate) to public ridicule or embarrassment. 
“Claim Notice” has the meaning set forth in Section 10.4(a).
“Closing” has the meaning set forth in Section 3.1.
“Closing Date” has the meaning set forth in Section 3.1.
“Closing Date Payment” means an amount equal to the Purchase Price minus the Holdback Amount plus the Estimated Buyer Working Capital Payment (if any) minus the Estimated Seller Working Capital Payment (if any).
“Company” has the meaning set forth in the Preamble.
“Company Approval” means (x) the Foreign Investment Approval of the sale and purchase of  the Shares from the Science and Industry Park Administration and (y) the cancellation of the Foreign Investment Approval in respect of the loan described in clause (ii) of the definition of “Transferred Loans”.
“Confidential Information” has the meaning set forth in Section 7.6.
“Confidentiality Agreement” has the meaning set forth in Section 11.7.
“Contract” means any agreement, lease, license, contract, note, mortgage, indenture, arrangement or other binding understanding, in each case other than any Benefit Plan.
“Current Assets” means, as of the Closing, the aggregate amount of the current assets of the Company included in the line items set forth on Exhibit F, as determined in accordance with the Agreed Principles; provided that Work-in-Process (as such term is defined in the MSA) shall be included as part of the calculation of Current Assets in an amount up to and not exceeding $250,000.00 in the aggregate.
“Current Liabilities” means, as of the Closing, the aggregate amount of the current liabilities of the Company included in the line items set forth on Exhibit F, as determined in accordance with the Agreed Principles.
“Data Room” means the virtual data room maintained by ShareVault® containing documents and information relating to the Seller and the Company and made available in electronic form to Buyer, its Affiliates and their respective Representatives.
“Direct Claim” has the meaning set forth in Section 10.5(c).

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“Disclosure Letter” means the disclosure letter delivered by the Company and the Seller, attached hereto as Exhibit H.
“EAS” means the Enterprise Accounting Standard in the Republic of China.
“Environmental Law” means any Law concerning the protection of the environment or the handling, use, disposal or release of any Hazardous Substance.
“Estimated Closing Date Balance Sheet” has the meaning set forth in Section 2.4(a)(i).
“Estimated Buyer Working Capital Payment” has the meaning set forth in Section 2.4(a)(ii).
“Estimated Seller Working Capital Payment” has the meaning set forth in Section 2.4(a)(ii).
“Estimated Net Working Capital” has the meaning set forth in Section 2.4(a)(i).
“Execution Date” has the meaning set forth in the Preamble.
“FDA” means the United States Food and Drug Administration.
“Final Closing Date Balance Sheet” has the meaning set forth in Section 2.4(b)(i).
“Final Determination” or “Finally Determined” has the meaning set forth in Section 10.6(b).
“Final Net Working Capital” has the meaning set forth in Section 2.4(b)(i).
“Financial Statements” has the meaning set forth in Section 5.4(a).
“Financing” has the meaning set forth in Section 7.11(a). 
“Financing Agreements” means the facility agreement by and between the Buyer and Chang Hwa Commercial Bank in connection with a commercial loan in the principal amount of NT$580,000,000.
“Financing Commitment” has the meaning set forth in Section 7.11(a).
“Financing Source” has the meaning set forth in Section 7.11(a).
“Fraud” means a knowingly and willfully false (a) representation of a fact, matter or circumstance; or (b) act or omission, in each case with the intent to deceive the other party to its detriment, or induce the other party to act or refrain from acting to its detriment in a manner that would be different than how the other party would act or refrain from acting if such party were aware of such fact, matter or circumstance.

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“Governmental Entity” means any domestic or foreign governmental or regulatory authority (including the TFDA, FDA and MHRA), securities exchange (including the Taipei Exchange where the Buyer is listed), agency, commission, body, court or other legislative, executive or judicial governmental entity.
“Hazardous Substance” means any substance that is listed, classified or regulated as a hazardous substance, a hazardous waste or pollutant pursuant to any Environmental Law.
“Holdback Amount” means $2,000,000.00.
“Indemnified Party” has the meaning set forth in Section 10.3(a).
“Indemnifying Party” has the meaning set forth in Section 10.4(a).
“Indemnity Cap” has the meaning set forth in Section 10.2(b)(i).
“Information” has the meaning set forth in the License Agreement.
“Information Technology” means computer systems, communication systems and software.
“Insurance Policies” has the meaning set forth in Section 5.14.
“Intellectual Property” means (i) trademarks, service marks, trade dress and trade names, registrations and applications for registration of the foregoing, and the goodwill associated therewith and symbolized thereby (“Trademarks”), (ii) patents and patent applications, (iii) trade secrets, as such term is defined in the Uniform Trade Secrets Act, published in 1979 and amended in 1985 and (iv) copyrights (including copyrights in computer software and Internet websites) and registrations and applications for registration of the foregoing.
“Inter-Company Payables” means the aggregate of the amounts owing, including in respect of interest accrued on all such amounts, from the Company to the Seller or its Affiliates (other than the Company).
“Inventory” means Raw Materials (as such term is defined in the MSA), Intermediate Product (as such term is defined in the MSA), Finished Product (as such term is defined in the MSA), Bulk Product (as such term is defined in the MSA), Components (as such term is defined in the MSA), Labeling (as such term is defined in the MSA), Containers (as such term is defined in the MSA) and other supplies related thereto, in each case, related to the business of the Company, while and to the extent under the ownership of the Company.
“Key Executives” has the meaning set forth in Section 5.6(e).
“Knowledge”, as to the Seller, means the actual knowledge of Tom Chang and Ingrid Li. “Knowledge” does not require the Seller to conduct, have conducted, obtain or have 

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obtained any non-infringement, inventorship, invalidity, freedom-to-operate or any other opinions of counsel of any nature, formal or informal, or any searches regarding Intellectual Property, including any subject matter, ownership, competitive intelligence or other searches, and no knowledge of any third-party Intellectual Property rights that would have been revealed by such inquiries, opinions or searches will be imputed to the Seller.
“Law” or “Laws” has the meaning set forth in Section 5.7.
“Legal Proceedings” means any judicial, administrative or arbitral actions, suits, proceedings (public, private, civil or criminal), complaints, disputes, investigations or similar actions.
“License Agreement” has the meaning set forth in the Recitals.
“Lien” means any lien, charge, pledge, security interest, claim or other encumbrance.
“Losses” means, subject to Section 10.5, any and all damages, losses, charges, liabilities (excluding contingent liabilities), claims, fines, deficiencies, obligations, payments (including those arising out of any settlement, judgment or compromise relating to any Legal Proceeding), and reasonable and documented costs and expenses (including interest and penalties due and payable with respect thereto and reasonable and documented attorneys’ and accountants’ fees and any other reasonable and documented out-of-pocket expenses incurred in investigating, preparing, defending, avoiding or settling any Legal Proceeding), in each case that are due and payable.
“Material Adverse Effect” means any change, event, effect, development or circumstance that, individually or in the aggregate, would: (I) prevent, materially delay or materially impair the consummation of the Acquisition or (II) have a material adverse effect on the financial condition, assets, liabilities, or business of the Company, taken as a whole; provided, however, that in the case of clause (II), none of the following, in and of itself or themselves, shall constitute a Material Adverse Effect:
(i)    changes in the economy or financial markets generally in the Republic of China, the United States or other countries in which the Company conducts its business;
(ii)    general economic or political conditions;
(iii)    acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof;
(iv)    changes that are the result of factors generally affecting the industry in which the Company operates;
(v)    any natural or man-made disaster or act of God;

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(vi)    the announcement, pendency or completion of the transactions contemplated by this Agreement or any Ancillary Agreement, including any loss of, or adverse change in, the relationship of the Company with its customers, employees or suppliers;
(vii)    changes in EAS or in any Law or the enforcement, implementation or interpretation thereof;
(viii)    any failure by the Company to meet any estimates of revenues or earnings;
(ix)    any action or inaction by the Company taken or omitted to be taken with the consent of Buyer; and
(x)    compliance by the Seller or the Company with the terms of, or the taking of any action required or permitted by, this Agreement or any Ancillary Agreement.
“Material Contract” has the meaning set forth in Section 5.8.
“MHRA” means the Medicines and Healthcare products Regulatory Agency in the United Kingdom.
“Minimum Claim Amount” has the meaning set forth in Section 10.2(b)(ii).
“Most Recent Balance Sheet” means the Company’s audited balance sheet as of December 31, 2016.
“MSA” has the meaning set forth in the Recitals.
“Net Working Capital” means an amount equal to, as of the Closing, (A) Current Assets, minus (B) Current Liabilities, in each case determined in accordance with the Agreed Principles. An illustrative example of Net Working Capital is attached hereto as Exhibit F. 
“Net Working Capital Threshold” means $0.00.
“Notice Period” has the meaning set forth in Section 10.4(a).
“Order” has the meaning set forth in Section 8.1(a).
“Organizational Documents” means the Company’s articles of incorporation, as amended to the Execution Date.
“Party” or “Parties” has the meaning set forth in the Preamble.
“Permits” has the meaning set forth in Section 5.7.

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“Permitted Liens” means (i) Liens reflected or reserved against or otherwise disclosed in the Most Recent Balance Sheet, (ii) mechanics’, materialmen’s, warehousemen’s, carriers’, workers’, or repairmen’s liens or other similar common law or statutory Liens arising or incurred in the ordinary course of business consistent with past practice, (iii) liens for Taxes, assessments and other governmental charges not yet due and payable or due but not delinquent or being contested in good faith by appropriate proceedings, (iv) with respect to real property, (A) easements, quasi-easements, licenses, covenants, rights-of-way, rights of re-entry or other similar restrictions, including any other agreements, conditions or restrictions that would be shown by a current title report or other similar report or listing, (B) any conditions that may be shown by a current survey or physical inspection and (C) zoning, building, subdivision or other similar requirements or restrictions, (v) licenses, covenants and similar rights with respect to Intellectual Property, (vi) Liens incurred in the ordinary course of business consistent with past practice since the date of the Most Recent Balance Sheet, (vii) Liens that have been Previously Disclosed and (viii) Liens that would not have a Material Adverse Effect.
“Person” means any natural person, corporation, company, partnership (general or limited), limited liability company, trust or other entity.
“Pharmacovigilance Agreement” has the meaning set forth in the MSA. 
“Previously Disclosed” means, as applicable, information contained in this Agreement or any Ancillary Agreement and (i) all information contained in the Data Room; (ii) all information contained in the public filings of the Seller; (iii) all information contained in any diligence report prepared by Buyer, any of its Affiliates or any of their respective Representatives; (iv) all information disclosed in the Disclosure Letter; (v) all information disclosed in good faith to Buyer, any of its Affiliates or any of their respective Representatives in diligence sessions or management discussions; (vi) all information contained in the company registry of the Company and has been disclosed publicly; or (vii) any other information and records of or relating to the Company which are publicly disclosed.
“Purchase Price” has the meaning set forth in Section 2.1.
“Quality Agreement” has the meaning set forth in the MSA.
“Release Date” has the meaning set forth in Section 2.5(b).
“Representatives” means employees, directors, officers, financial advisors, legal advisors, accountants and other advisors or representatives.
“Resolutions” has the meaning set forth in Section 7.11(c).
“Retention Plan” means the retention or transaction bonus plans or arrangements established by the Seller and/or the Company for the retention of any employees prior to the Closing of this Agreement and for which execution of this Agreement or the consummation of the Acquisition would accelerate the timing of payment or vesting or result in any payment of 

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compensation or benefits, increase the amount payable or result in any other material obligation, as set forth in Section 5.6(d) of the Disclosure Letter.
“Seller” has the meaning set forth in the Preamble.
“Seller Fundamental Representations” has the meaning set forth in Section 10.1.
“Seller Indemnified Parties” has the meaning set forth in Section 10.3(a).
“Seller Mark” has the meaning set forth in Section 7.8(a).
“Shared Agreements” means agreements between the Seller or any of its Affiliates (other than the Company) on the one hand, and one or more third parties, on the other hand, pursuant to which the Company has any direct or indirect economic, commercial or other benefits, rights or liabilities.
“Shares” has the meaning set forth in the Recitals.
“Straddle Periods” has the meaning set forth in Section 7.7(a).
“Subsidiary” means, with respect to any Person, any other Person of which at least a majority of the securities or ownership interests having by their terms ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is directly or indirectly owned or controlled by such Person and/or by one or more of its Subsidiaries.
“Tax” (including, with correlative meaning, the term “Taxes”) means all federal, state, local and foreign income, profits, franchise, gross receipts, environmental, customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use, property, withholding, excise, production, value-added, occupancy and other taxes, duties or assessments of any nature whatsoever, together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such penalties and additions.
“Tax Claim” has the meaning set forth in Section 7.7(f).
“Tax Return” means all returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Taxing Authority relating to Taxes.
“Taxing Authority” means any federal, regional, state, provincial or local judicial, legislative or administrative body or other Governmental Entity with competent jurisdiction to impose Tax.
“Termination Date” has the meaning set forth in Section 9.1(b).
“TFDA” means the Taiwan Food and Drug Administration.

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“Third Party Claim” has the meaning set forth in Section 10.4(a).
“Trademarks” has the meaning set forth in clause (i) of the definition of “Intellectual Property”.
“Transferred Loans” means (i) the Term Loan Agreement, by and between the Seller and the Company, dated as of September 30, 2011; (ii) the Term Loan Agreement, by and between the Seller and the Company, dated as of November 16, 2011; and (iii) the Term Loan Agreement, by and between the Seller and the Company, dated as of December 14, 2011.
“Transfer Taxes” has the meaning set forth in Section 7.7(e).
“Transition Services Agreement” means that certain Transition Services Agreement in the form attached hereto as Exhibit E, to be executed contemporaneously with the Closing by the Seller, the Company and Buyer.
“Unreleased Amount” has the meaning set forth in Section 2.5(b).
“Working Capital Difference” has the meaning set forth in Section 2.4(b)(iii).
“YB Mark” means the registered trademark set forth in item 1 of Section 5.13(a) of the Disclosure Letter.
1.3    Other Definitional Provisions. Unless the express context otherwise requires:
(a)    the words “hereof”, “herein”, and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;
(b)    the terms defined in the singular have a comparable meaning when used in the plural, and vice versa;
(c)    the terms “Dollars” and “$” mean United States Dollars, and the term “NT$” means New Taiwan dollars;
(d)    references herein to a specific Article, Section, subsection shall refer, respectively, to Articles, Sections or subsections of this Agreement;
(e)    wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;
(f)    references herein to any gender includes each other gender; and
(g)    the term “days” shall refer to calendar days.

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ARTICLE II     
 
PURCHASE AND SALE
2.1    Purchase and Sale.  Subject to the terms and conditions of this Agreement, and in reliance on the representations, warranties and covenants contained herein, at the Closing, the Seller agrees to sell, assign, convey, transfer and deliver to Buyer, and Buyer agrees to purchase and accept from the Seller, (a) the Shares and (b) all of the Seller’s right, title, interest in, to and under the Transferred Loans, in each case as of the Closing, for (i) an aggregate purchase price of $18,500,000 in cash (the “Purchase Price”) and (ii) the assumption by Buyer of the Assumed Liabilities.  For the avoidance of doubt, the Parties acknowledge and agree that (x) the Purchase Price reflects a reduction of $500,000.00 to account for severance related payments and liabilities and (y) such payments and liabilities, notwithstanding anything to the contrary herein, shall be the sole responsibility of Buyer after the Closing (other than, for the avoidance of doubt, in respect of Buyer’s right to indemnification by the Seller in accordance with the terms of Article X).
2.2    Transferred Loans.  Upon the terms and subject to the conditions of this Agreement, Buyer shall assume, effective as of the Closing, and shall pay, perform and discharge when due, any and all obligations, liabilities and commitments of the Seller of any nature, whether known or unknown, express or implied, primary or secondary, direct or indirect, liquidated, absolute, accrued, contingent or otherwise and whether due or to become due, in each case to the extent arising out of and relating to the Transferred Loans, on and after the Closing (collectively, the “Assumed Liabilities”).  
2.3    Purchase Price Allocation.  The Purchase Price (including the Assumed Liabilities) shall be allocated among (i) the Shares and (ii) the Transferred Loans, as set forth on Exhibit G.  In the event an adjustment to the Purchase Price is made pursuant to Section 2.4 or otherwise under this Agreement, the allocation of the Purchase Price (including Assumed Liabilities) shall be revised to allocate such adjustment to the Shares, or the Transferred Loans, as the case may be, based upon the item to which such adjustment is attributable.
2.4    Purchase Price and Payment at the Closing.
(a)    Estimated Net Working Capital Procedures.
(i)    No later than five (5) Business Days prior to the Closing Date, the Seller shall prepare and deliver, or cause to be prepared and delivered, to Buyer an estimated balance sheet of the Company as of the Closing Date, which balance sheet will be prepared in accordance with EAS, applied consistent with the Company’s past accounting methods, policies, practices and procedures and in the same manner, with consistent classification and estimation methodology, as the Most Recent Balance Sheet was prepared (the “Agreed Principles”).  The balance sheet prepared in accordance with the foregoing is referred to as the “Estimated Closing Date Balance Sheet.” The Seller shall also prepare and deliver, or cause to be prepared and delivered, to Buyer a worksheet showing the 

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difference, if any, between the Net Working Capital shown on the Estimated Closing Date Balance Sheet (the “Estimated Net Working Capital”) and the Net Working Capital Threshold.
(ii)    The amount, if any, by which the Estimated Net Working Capital exceeds the Net Working Capital Threshold is referred to herein as the “Estimated Buyer Working Capital Payment”.  The amount, if any, by which the Net Working Capital Threshold exceeds the Estimated Net Working Capital is referred to herein as the “Estimated Seller Working Capital Payment”.
(b)    Final Net Working Capital Adjustment Procedures.
(i)    Buyer  shall prepare and deliver, or cause to be prepared and delivered, no later than sixty (60) days after the Closing Date, a balance sheet of the Company as of the Closing Date, which balance sheet will be prepared in the same manner as the Estimated Closing Date Balance Sheet (the “Final Closing Date Balance Sheet”), together with a worksheet showing the difference, if any, between the Net Working Capital shown on the Final Closing Date Balance Sheet (the “Final Net Working Capital”) and the Estimated Net Working Capital; provided that Buyer shall be entitled to take into account in its preparation of the Final Closing Balance Sheet any Inventory that has expired or is missing based on any stock counts performed in good faith by Buyer. From and after delivery of the Final Closing Date Balance Sheet, Buyer shall provide the Seller and its authorized representatives with reasonable access during normal business hours to the facilities, books and records, personnel and accountants of the Company.
(ii)    For thirty (30) days following its receipt of the Final Closing Date Balance Sheet, the Seller shall have the right to object thereto. Any such objection made by the Seller shall be accompanied by materials showing in reasonable detail the Seller’s support for its position. The Seller shall be deemed to have waived any rights to object to the Final Closing Date Balance Sheet unless the Seller furnishes its written objections, together with supporting materials, to Buyer within such thirty (30) day period. Buyer and the Seller shall meet to resolve any differences in their respective positions with respect to the Final Closing Date Balance Sheet. If Buyer and the Seller are unable to agree on the Final Closing Date Balance Sheet within thirty (30) days of Buyer’s receipt of the Seller’s written objections, then PricewaterhouseCoopers (or such other independent accounting firm of recognized international standing as may be mutually selected by Buyer and the Seller) shall resolve any remaining disagreements.  If neither PricewaterhouseCoopers nor any such mutually selected accounting firm is willing and able to serve in such capacity, then each of the Seller and the Buyer shall select an accounting firm of recognized national standing in the United States and such two accounting firms shall mutually agree and select the third accounting firm of recognized international standing (such firm as is ultimately selected pursuant to the aforementioned procedures being the 

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“Accountant”).  The Seller and Buyer shall execute any agreement reasonably required by the Accountant for its engagement hereunder. The Accountant shall be charged with determining as promptly as practicable, but in any event within thirty (30) days after the date on which such dispute is referred to the Accountant, whether Final Net Working Capital and the Final Closing Date Balance Sheet were prepared in accordance with this Agreement and (only with respect to the disagreements as to the items set forth in the notice of disagreement and submitted to the Accountant and any other items affected by the resolution of those disputed items) whether and to what extent, if any, Final Net Working Capital and the Final Closing Date Balance Sheet require adjustment. The Accountant shall allocate its costs and expenses between Buyer and the Seller based upon the percentage of the contested amount submitted to the Accountant that is ultimately awarded to Buyer on the one hand or the Seller on the other hand, such that Buyer bears a percentage of such costs and expenses equal to the percentage of the contested amount awarded to the Seller and the Seller bears a percentage of such costs and expenses equal to the percentage of the contested amount awarded to Buyer.  If there is no timely objection as provided above, the Final Closing Date Balance Sheet as determined by Buyer shall be binding and final for purposes of this Agreement. If there is a timely objection as provided above, the determination of the Accountant, acting as an expert and not an arbitrator, shall be binding and final for purposes of this Agreement.
(iii)    The difference between the Final Net Working Capital and the Estimated Net Working Capital shall be referred to as the “Working Capital Difference”. Within five (5) Business Days following the final determination of the Final Closing Date Balance Sheet as set forth in this Section 2.4(b)(iii), Buyer shall pay to the Seller an amount equal to the Working Capital Difference, if the Working Capital Difference is a positive number, and the Seller shall pay an amount to Buyer equal to the Working Capital Difference, if the Working Capital Difference is a negative number. Such amounts shall be paid, in immediately available funds, pursuant to the instructions previously delivered by Buyer or the Seller, as applicable.  Any payment made pursuant to this Section 2.4(b)(iii) shall, for tax purposes, be deemed to be an adjustment to the consideration payable to the Seller.  The Seller and Buyer understand that the original currency of the Working Capital Difference is in NT$ and have agreed that such amount shall be paid in United States dollars using the agreed foreign exchange rate of 0.03333 United States dollars per NT$ 1.00.
2.5    Holdback.
(a)    The Holdback Amount shall be available to satisfy any indemnity claims made by, and Finally Determined in favor of, the Buyer Indemnified Parties prior to the Release Date pursuant to Article X.  

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(b)    On the date that is fifteen months after the Closing Date (the “Release Date”), Buyer shall release the then remaining Holdback Amount, if any, to the Seller in immediately available funds to an account designated by the Seller; provided, that, to the extent there are any pending and unresolved claims for indemnification under Article X for which written notice has been timely provided to the Seller in accordance with Section 10.5(i) and Buyer has filed a claim with the appropriate court in accordance with Section 11.4(b) in respect of such claim, a portion of the Holdback Amount in an amount equal to such pending and unresolved claims, which amount shall be estimated and determined in good faith by Buyer (such amount, the “Unreleased Amount”), shall be retained by Buyer in accordance with this Agreement until a Final Determination of the amount of Loss relating to such claims.  If any such pending and unresolved claim is resolved in favor of the Seller, then Buyer shall pay to the Seller, as hereinabove provided, an amount equal to the Unreleased Amount plus the interest accrued on such Unreleased Amount from and including the Release Date to and including the date such payment has been made at a rate per annum equal to ten percent (10%).  Such interest shall be calculated daily on the basis of a 365 day year and the actual number of days elapsed.  In the event that Buyer and the Seller have agreed in writing that (i) a specified amount shall be retained by Buyer in connection with a pending and unresolved claim and (ii) the Seller waives the requirement in this Section 2.5(b) that Buyer is obligated to file a claim with the appropriate court in accordance with Section 11.4(b) in respect of such claim, then such retained amount shall not be subject to the aforementioned interest payment.
(c)    If Buyer fails to release the remaining Holdback Amount on the Release Date (other than pursuant to a claim in accordance with the procedures set forth in Section 2.5(b)), then notwithstanding anything to the contrary in the MSA, the Seller shall have the right to terminate the MSA in Contract Years 2 and/or 3 without the payment of any termination fee (including the termination fee set forth in Section 11.4(b) or 11.4(c) of the MSA), and such termination shall be effective immediately upon the date of such termination notice.
ARTICLE III     
 
CLOSING
3.1    Time and Place of Closing.  Subject to the terms and conditions of this Agreement, the closing of the transactions contemplated by this agreement (the “Closing”) will take place at 10:00 a.m., Hong Kong time, at the offices of Baker & McKenzie, 15/F, 168 Dunhua North Road, Taipei, Republic of China, on the fifth Business Day following the satisfaction or waiver of the last condition in Article VIII to be satisfied or waived (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions) or at such other time and place as Buyer and the Seller mutually agree (the “Closing Date”).
3.2    Deliveries at Closing.
(a)    By the Seller.  Subject to the terms and conditions of this Agreement, at the Closing, the Seller shall deliver (or cause to be delivered):

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(i)    the stock certificates representing ownership of the Shares, duly endorsed in blank by the record holder thereof or accompanied by duly executed stock power endorsed in blank by the record holder thereof (which stock certificates shall be duly certified by the Financing Sources as of the Closing Date);
(ii)    the certificate, signed by the Seller, required by Sections 8.1(b), 8.1(c) and 8.1(d);
(iii)    the Assignment and Assumption Agreement, dated as of the Closing Date, duly executed by the Seller;
(iv)    the Bill of Sale, dated as of the Closing Date, duly executed by the Seller;
(v)    the Quality Agreement, dated as of the Closing Date, duly executed by the Seller and the Company;
(vi)    the Pharmacovigilance Agreement, dated as of the Closing Date, duly executed by the Seller and the Company;
(vii)    the Transition Services Agreement, dated as of the Closing Date, duly executed by the Seller and the Company;
(viii)    the Company Approval in connection with the Seller’s sale of the Shares;
(ix)    the title deed of the Company’s factory located at No. 1, Kedong 3rd Road, Jhunan Science Park, Jhunan, Miaoli County, 35053, Taiwan; and
(x)    such other customary documents and instruments reasonably necessary to consummate the transactions contemplated by this Agreement upon the terms and conditions set forth herein.
(b)    By Buyer.  Subject to the terms and conditions of this Agreement, at the Closing, Buyer shall deliver:
(i)    the Closing Date Payment, by wire transfer of immediately available funds, to an account specified by the Seller to Buyer in writing no later than two (2) Business Days prior to the Closing Date;
(ii)    the certificate, signed by an authorized officer of Buyer, required by Sections 8.2(b) and 8.2(c);
(iii)    the Assignment and Assumption Agreement, dated as of the Closing Date, duly executed by Buyer;

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(iv)    the Bill of Sale, dated as of the Closing Date, duly executed by Buyer;
(v)    the Quality Agreement, dated as of the Closing Date, duly executed by Buyer;
(vi)    the Pharmacovigilance Agreement, dated as of the Closing Date, duly executed by Buyer;
(vii)    the Transition Services Agreement, dated as of the Closing Date, duly executed by Buyer;
(viii)    the Company Approval in connection with Buyer’s acquisition of the Shares; and
(ix)    such other customary documents and instruments reasonably necessary to consummate the transactions contemplated by this Agreement upon the terms and conditions set forth herein.
ARTICLE IV     
 
REPRESENTATIONS AND WARRANTIES RELATING TO THE SELLER
Except as Previously Disclosed, the Seller hereby represents and warrants to Buyer, as of the date hereof and as of the Closing (except to the extent any such representation or warranty relates to a specific date, in which case the Seller hereby makes to Buyer such representation or warranty only as of such date), as follows:
4.1    Ownership.
(a)    The Seller is the sole record and beneficial owner of the Shares. The Seller has good title to the Shares, free and clear of all Liens (other than any transfer restrictions imposed by applicable securities Laws).
(b)    The Seller has good and valid title to the Transferred Loans, free and clear of all Liens (other than Permitted Liens).
4.2    Authority; Approval.  This Agreement has been duly executed and delivered by the Seller and constitutes a valid and binding agreement of the Seller, enforceable against the Seller in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general equity principles (the “Bankruptcy and Equity Exception”).
4.3    No Violations.  Other than the Company Approval, the execution, delivery and performance of this Agreement by the Seller does not, and the consummation of the Acquisition will not, constitute or result in, conflict with, breach or violate any Law, Order or 

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Permit to which the Seller is a party or by which it or its properties or assets is subject or bound, except for any such breach, violation or default which would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the ability of the Seller to consummate the Acquisition.
4.4    Transferred Loans.  Section 4.4 of the Disclosure Letter sets forth the amounts outstanding under the Transferred Loans as of the Execution Date.
ARTICLE V     
 
REPRESENTATIONS AND WARRANTIES RELATING TO THE COMPANY
Except (x) as Previously Disclosed or (y) arising from or relating to the taking of any action required or permitted by this Agreement or any Ancillary Agreement, the Seller, on behalf of the Company, hereby represents and warrants to Buyer, as of the date hereof and as of the Closing (except to the extent any such representation or warranty relates to a specific date, in which case the Seller hereby makes to Buyer such representation or warranty only as of such date), as follows:
5.1    Organization, Good Standing and Qualification.  The Company (a) is a corporation duly organized, validly existing and in good standing under the Laws of the Republic of China, (b) has all requisite corporate power and authority to own, lease and operate its properties and assets and to carry on its business as presently conducted and (c) is qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of its business requires such qualification, except in the case of clause (b) or (c) where the failure to be so qualified or in good standing, or to have such power or authority, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or prevent, materially delay or materially impair the consummation of the Acquisition.
5.2    Capital Structure.
(a)    The authorized capital stock of the Company consists of 125,000,000 shares of common stock, par value NT$10.00, of which all such shares are issued and outstanding. The Shares constitute the only issued and outstanding shares of capital stock of the Company, have been duly authorized and are validly issued, fully paid and nonassessable. There are no issued and outstanding securities which are convertible into, or exercisable or exchangeable for, any capital stock or other equity securities of the Company.
(b)    The Company has no Subsidiaries and does not own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, association or other entity.
5.3    Governmental Filings; No Violations.

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(a)    Other than the Company Approval, no notices, reports or other filings are required to be made by the Company with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by the Company from, any Governmental Entity in connection with the consummation of the Acquisition, except those that the failure to make or obtain would not reasonably be expected to have a Material Adverse Effect.
(b)    The consummation of the Acquisition will not (i) violate the Organizational Documents of the Company, (ii) subject to obtaining the Company Approval, conflict with, breach or violate any Law, Order or Permit to which the Company is a party or by which it or its properties or assets are subject or bound, (iii) conflict with, result in the breach or violation of, constitute a default under, or result in the termination, amendment, cancellation, suspension or acceleration of any rights, obligations or penalties under, or result in a loss of any benefit under, any Material Contract or (iv) result in the creation or imposition of any Liens other than (x) Liens created by or resulting from the actions of Buyer or any of its respective Affiliates or (y) in connection with the transactions contemplated by this Agreement or any Ancillary Agreement, except in the case of the foregoing clause (ii), (iii) or (iv) for such conflicts, breaches, violations, defaults, terminations, amendments, cancellations, suspensions, accelerations or Liens that would not reasonably be expected to have or result in a Material Adverse Effect.
5.4    Financial Statements.
(a)    Set forth in the Data Room are the following financial statements (collectively, the “Financial Statements”): (i) the Most Recent Balance Sheet; and (ii) the related audited statements of comprehensive income, statements of changes in equity and statements of cash flows.
(b)    Each of the Financial Statements (including the related notes and schedules thereto) fairly presents in all material respects the financial position of the Company as of its date and the balance sheets and statements of income (loss) included in the Financial Statements (including any related notes and schedules thereto) fairly present in all material respects the financial condition or results of operations, as the case may be, of the Company for the dates or time periods set forth therein, in each case in accordance the Agreed Principles, except as may be noted therein.
5.5    Litigation and Liabilities.  Since December 31, 2016, there have been no, and as of the Execution Date there are no, Legal Proceedings pending or, to the Seller’s Knowledge, threatened, against the Company that have had or if determined adversely to the Company would reasonably be expected to have a Material Adverse Effect.
5.6    Employee Benefits.
(a)    The Data Room contains a list of all material incentive, profit-sharing, stock option, stock purchase, other equity-based, employment, consulting, compensation, vacation or other leave, change in control, retention, supplemental retirement, severance, health, medical, disability, life insurance, deferred compensation and other employee compensation and 

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benefit plans, programs and agreements, in each case established or maintained by the Company or to which the Company contributes or is obligated to contribute or in respect of which the Company bears any liability, for the benefit of any of their employees or other service providers (collectively, the “Benefit Plans”).  With respect to each Benefit Plan, the Company has made available to Buyer, to the extent applicable, accurate and complete copies of (1) the Benefit Plan document, including any amendments thereto, and (2) a written description of such Benefit Plan if such plan is not set forth in a written document.
(b)    Except as would not reasonably be expected to have a Material Adverse Effect, (i) each Benefit Plan has been operated and administered in compliance with its terms and with applicable Law, (ii) there are no pending claims (other than routine claims for benefits) or proceedings by a Governmental Entity by, on behalf of or against any Benefit Plan and (iii) all Benefit Plans that are intended to be funded and/or book-reserved are funded and/or book-reserve, as appropriate, based upon reasonable actuarial assumptions.
(c)    The Company does not have any obligations for retiree welfare benefits other than coverage mandated by applicable Law.
(d)    Section 5.6(d) of the Disclosure Letter lists the retention payment and  compensation under the Retention Plan for the employees listed therein. Other than as set forth in Section 5.6(d) of the Disclosure Letter, there is no other Retention Plan that would result in any liability to the Company and/or the Buyer after the Closing. Neither the execution of this Agreement nor the consummation of the Acquisition will, either alone or together with any other event, (i) entitle any employees of the Company to severance pay or any increase in severance pay (other than severance pay required by any applicable Law), (ii) accelerate the time of payment or vesting or result in any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, increase the amount payable or result in any other material obligation pursuant to, any of the Benefit Plans, or (iii) limit or restrict the right of the Company or, after the consummation of the Acquisition, Buyer, to merge, amend or terminate any of the Benefit Plans.
(e)    (i) As of the Execution Date, to the Seller’s Knowledge, no Key Executive of the Company has given, or been given, notice of termination, resigned or been terminated. (ii) “Key Executives” means the employees set forth on Section 5.6(f)(ii) of the Disclosure Letter.
(f)    The Company is in compliance in all material respects with all applicable employment and social security Laws, including, without limitation and in all material respects, with respect to withholding and paying in full to the appropriate Governmental Entity all amounts required by applicable Laws to be withheld with respect to any of its employees and/or to be paid in full by the Company, including the withholding and payment of all individual income Taxes, health insurance premiums, labor insurance premiums and contributions to pension fund required by applicable Laws.
5.7    Compliance with Laws; Permits.  The Company is not currently being, and since December 31, 2016, has not been, conducted in violation of any federal, state, local or foreign law, statute or ordinance, common law, or any rule, regulation, standard, judgment, order, 

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writ, injunction, decree, arbitration award, agency requirement, license or permit of any Governmental Entity (collectively, “Laws”), except for violations that would not reasonably be expected to have a Material Adverse Effect. Except with respect to regulatory matters covered by Section 7.2(a), no investigation or review by any Governmental Entity with respect to the Company is pending or, to the Seller’s Knowledge, threatened, nor has any Governmental Entity indicated an intention to conduct the same, except for such investigations or reviews the outcome of which would not reasonably be expected to have a Material Adverse Effect.  The Company has obtained and is in compliance with all permits, licenses, certifications, approvals, registrations, consents, authorizations, franchises, variances, exemptions and orders issued or granted by a Governmental Entity necessary to conduct its business as presently conducted (“Permits”), except those the absence of which would not reasonably be expected to have a Material Adverse Effect.  The Company has filed all reports, notifications and filings with, and has paid all regulatory fees to, the applicable Governmental Entity necessary to maintain all of its Permits in full force and effect, except in each case for any Permits the failure of which to be in full force and effect has not had and would not reasonably be expected to have a Material Adverse Effect.
5.8    Material Contracts.
(a)    The Data Room contains each of the following Contracts to which the Company is a party or by which the Company or any of its assets is bound as of the Execution Date (other than the Organizational Documents, Benefit Plans and agreements related to labor matters, Affiliate Contracts, Shared Agreements and agreements related to the Transferred Loans) (each, a “Material Contract”):
(i)    any Contract pursuant to which the Company currently leases or subleases real property to or from any Person;
(ii)    any Contract that cannot be terminated without a monetary penalty on less than ninety (90) days’ notice and involves future payments, performance or services or delivery of goods or materials to or by the Company of any amount or value reasonably expected to exceed $1,000,000.00 in any future twelve (12) month period;
(iii)    any Contract providing for material indemnification by the Company of any Person, except for Contracts entered into in the ordinary course of business consistent with past practice;
(iv)    any Contract pursuant to which the Company receives or is obligated to pay annual fees, royalties or other amounts exceeding $500,000.00 on an annual basis in exchange for granting or receiving rights with respect to Intellectual Property; and
(v)    any Contract that limits the freedom of the Company to compete in any line of business or within any geographic area.

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(b)    Each of the Material Contracts is valid and binding on the Company and, to the Seller’s Knowledge, each other party thereto, and is in full force and effect, except for such failures to be valid and binding or to be in full force and effect as would not reasonably be expected to have a Material Adverse Effect. To the Seller’s Knowledge, there is no default under any such Contract by the Company and no event has occurred that would constitute a default thereunder by the Company, in each case except as would not reasonably be expected to have a Material Adverse Effect.
5.9    Leased Real Property.  The Company does not own any real property, other than the facility located in the Hsinchu Science Park.  With respect to the real property leased or subleased to the Company, the lease or sublease for such property is valid, legally binding, enforceable and in full force and effect, and the Company is not in breach of or default under such lease or sublease, and no event has occurred which would constitute a breach or default by any of the Company or permit termination, modification or acceleration by any third party thereunder, except in each case, for such invalidity, failure to be binding, unenforceability, ineffectiveness, breaches, defaults, terminations, modifications or accelerations that would not reasonably be expected to have a Material Adverse Effect.
5.10    Environmental Matters.   (a)  Except for such matters that would not reasonably be expected to have a Material Adverse Effect, (i) the Company is in compliance with all applicable Environmental Laws, (ii) to the Seller’s Knowledge, the Company possesses all permits, licenses, registrations, identification numbers, authorizations and approvals required under applicable Environmental Laws for the operation of the business as presently conducted, (iii) to the Seller’s Knowledge, the Company has not received any written claim, notice of violation or citation concerning any violation or alleged violation of any applicable Environmental Law during the past three (3) years except for matters that have been resolved and are no longer outstanding, and (iv) to the Seller’s Knowledge, there are no writs, injunctions, decrees, orders or judgments outstanding, or any actions, suits or proceeding pending or threatened concerning compliance by the Company with any Environmental Law except for matters that have been resolved.
(b)  Notwithstanding any other representation and warranty in this Article V, the representations and warranties contained in this Section 5.10 constitute the sole representations and warranties relating to the Company with respect to any Environmental Law.
5.11    Taxes.
(a)    Other than in respect of any matters relating to the Tax periods for which the statute of limitations for an audit by a Taxing Authority has expired, the Company (i) has prepared in good faith and duly and timely filed (taking into account any extension of time within which to file) all material Tax Returns required to be filed by it and all such filed Tax Returns are complete and accurate in all material respects, (ii) has paid all material Taxes that are shown as due on such filed Tax Returns and withheld all material Taxes that it is obligated to withhold from amounts owing to any employee, the Company’s Affiliates, creditor or third party, except in each case with respect to matters contested in good faith and (iii) has not waived any 

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statute of limitations with respect to material Taxes or agreed to any extension of time with respect to a material Tax assessment or deficiency.
(b)    As of the Execution Date, there are no pending audits, examinations, investigations or other proceedings against the Company by a Taxing Authority in respect of material Taxes or Tax matters.  As of the Execution Date, the Company has not received any written notice of any Taxing Authority’s intent to conduct any investigation, visit, enquiry or audit, which remains unsolved.
(c)    The Company has, within applicable time limits, kept and maintained records, invoices and other information in relation to Tax in accordance with applicable Law, which records, invoices and other information are complete and accurate in all material respects.  Such records, invoices and information form part of Tax accounting arrangements that enable the Company’s liabilities of Tax to be calculated in accordance with applicable Laws in all material respects.
(d)    Other than Tax in respect of normal trading income or receipts of the Company arising from transactions entered into by it in the ordinary course of its business, the Company has not been involved in any transaction which has given or reasonably may be expected to give rise to a liability to Tax (or would have given or might give rise to such a liability but for the availability of any relief, loss, allowance, credit, set off, deduction or exemption for any Tax purpose), in each case except as would not reasonably be expected to have a Material Adverse Effect.
(e)    There are no mortgage, charge, lien, pledge or other encumbrances with respect to any Tax upon any material tangible personal property and other material tangible assets of the Company reflected in the Financial Statements, other than Permitted Liens.
(f)    As of the Execution Date, the Company is not a party to any scheme, transaction or arrangement where the main purpose of which, or one of the main purposes of which, is securing, obtaining or achieving a material Tax advantage (including the production of a Tax loss with no corresponding commercial loss) or the avoidance of material Tax and is reportable to the relevant Taxing Authority.
(g)    Notwithstanding anything to the contrary in this Agreement (including, without limitation, Section 10.1), the Seller shall not be obligated to indemnify any Buyer Indemnified Party in respect of any matters relating to the Tax periods for which the statute of limitations for an audit by a Taxing Authority has expired.
5.12    Labor Matters.  The Company is not a party to or otherwise bound by any collective bargaining agreement or other Contract with a labor union or labor organization, nor the subject of any material proceeding that asserts that the Company has committed an unfair labor practice or that seeks to compel it to bargain with any labor union or labor organization, nor is there pending or to the Seller’s Knowledge, threatened, any labor strike, dispute, walk-out, work stoppage, slow-down or lockout involving the Company, in each case, except as would not be reasonably likely to have a Material Adverse Effect.

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5.13    Intellectual Property.
(a)    Details of all registered Intellectual Property (and application of such Intellectual Property) owned by the Company are set out in Section 5.13(a) of the Disclosure Letter, all of which are owned exclusively by the Company free and clear of any Liens other than Permitted Liens.
(b)    The Company has neither granted any licenses nor entered into any other agreements in respect of any registered Intellectual Property owned by the Company, other than any such licenses which would not materially affect the continued use by the Company of such registered Intellectual Property.
(c)    To the Seller’s Knowledge and except as would not be reasonably likely to have a Material Adverse Effect, the operation of the business of the Company, as currently conducted, does not infringe or misappropriate the Intellectual Property of any third party, no Person has asserted in a writing received by the Company that the Company has infringed or misappropriated the Intellectual Property of any third party and no third party has infringed or misappropriated any Intellectual Property owned by the Company. Notwithstanding any other representation and warranty in this Article V, the representations and warranties contained in Section 5.8(a)(iv) and in this Section 5.13 constitute the sole representations and warranties with respect to Intellectual Property.
5.14    Insurance.  All material insurance policies maintained by the Company or by the Seller on behalf of the Company (“Insurance Policies”) provide full and adequate coverage for all normal risks incident to the business of the Company and its properties and assets, and are in character and amount at least equivalent to that carried by Persons engaged in similar businesses and subject to the same or similar perils or hazards, except for any such failures to maintain insurance policies that would not reasonably be expected to have a Material Adverse Effect. Each Insurance Policy is in full force and effect and all premiums due with respect to all Insurance Policies have been paid, with such exceptions that would not reasonably be expected to have a Material Adverse Effect.
5.15    Brokers and Finders.  Neither the Company nor any of its directors, officers or employees has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the Acquisition.
5.16    Assets.
(a)    The Company has good and valid title to all material tangible personal property and other material tangible assets reflected in the Financial Statements other than properties and assets (x) depleted, sold, or otherwise disposed of in the ordinary course of business consistent with past practice or (y) that are leased or licensed assets.  This Section 5.16(a) does not relate to real property or interest in real property, Inventory, Intellectual Property, Contracts, Permits, Insurance Policies, Business IT or the Transferred Loans.

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(b)    All material plant, machinery, vehicles and other items of tangible personal property of the Company are, to the Seller’s Knowledge, in reasonable repair and condition and capable of being used in connection with the Company’s business as it is being currently conducted.
(c)    The properties, rights and other assets owned by, leased or licensed to or otherwise held for use by the Company, when utilized by a labor force substantially similar to the employees of the Company as of the Closing, when taken together with the Ancillary Agreements (including any Intellectual Property licensed to the Company pursuant to the Ancillary Agreements), are sufficient properties, rights and other assets to carry on the Company’s business immediately after the Closing in the same manner as it is currently being conducted, except for (x) the benefits and services provided to the Company as set forth in Section 7.9 hereof, (y) third party shrink wrap or similar software that is generally commercially available and (z) Inventory.
5.17    Information Technology.
(a)    Except as would not be reasonably likely to have a Material Adverse Effect, the Business IT (i) is virus-free, bug-free and (ii) is in good working order, functions in accordance with all applicable specifications in all material respects and has been regularly and properly maintained and supported.
(b)    Except as would not be reasonably likely to have a Material Adverse Effect, commercially reasonable disaster recovery plans are in place that are intended to ensure that the Business IT and the data stored on it can be replaced or substituted without material disruption to the business of the Company in the event of a failure of any part of the Business IT (whether due to natural disaster, power failure or otherwise).
5.18    Certain Business Relationships with Affiliates.
(a)    Except for (i) the services and benefits provided to the Company set forth in Section 7.9 hereof and (ii) any services provided by the Seller or its Affiliates pursuant to any Ancillary Agreement, neither the Seller nor any of its Affiliates (other than the Company) (x) owns any material property or right, tangible or intangible, which is used solely by the Company, (y) has any claim or cause of action against the Company or (z) owes any money to, or is owed any money by, the Company, other than pursuant to commercial relationships or services.
(b)    Section 5.18 of the Disclosure Letter sets forth a list of any Contract between the Company, on the one hand, and the Seller or any Affiliate of the Seller (other than the Company), on the other hand (any such Contract, an “Affiliate Contract”), which (i) is currently in effect and (ii) is reasonably expected to continue in effect after the Closing.
5.19    Inventory; Bulk.  
(a)    As of the Closing, the Inventory is of quality usable by Manufacturer (as such term is defined in the MSA) in performance of its obligations under the MSA; provided that 

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any claims for missing or expired Inventory based on any stock counts performed by Buyer shall be resolved through Section 2.4 and disregarded for the purposes of this Section 5.19 and Section 10.2.  
(b)    As of the Closing, Bulk Product (as described in the MSA) (i) has been Processed (as such term is defined in the MSA) in accordance with applicable Laws and in conformance with the specific Product Specifications (to the extent applicable), and shall not be adulterated, misbranded or mislabeled within the meaning of the applicable Laws, (ii) shall be conveyed free and clear of all Liens (other than Permitted Liens) and (iii) has the minimum shelf life provided for in Section 5.5 of the MSA.
5.20    No Other Representations or Warranties.  Except for the representations and warranties expressly set forth in Article IV or this Article V (in each case, as modified by any matters that have been Previously Disclosed), neither the Seller nor any of its directors, officers, employees, Affiliates, advisors, agents or representatives, nor any other Person, makes any other representation or warranty of any kind or nature whatsoever, oral or written, express or implied, with respect to the Seller, the Company, the Shares, the Transferred Loans, this Agreement or the transactions contemplated by this Agreement.  The representations and warranties made in Article IV or this Article V (in each case, as modified by any matters that have been Previously Disclosed) with respect to the Seller, the Company, the Shares, the Transferred Loans and the transactions contemplated by this Agreement are in lieu of all statements which may have been made or provided to Buyer, its Affiliates or any of their respective Representatives, including any implied warranties of merchantability and implied warranties of fitness for a particular purpose.  Except for the representations and warranties expressly set forth in Article IV or this Article V (in each case, as modified by any matters that have been Previously Disclosed), (a) the Seller disclaims, on behalf of itself and its Affiliates, any other representations or warranties, whether made by any of the Seller or the Company, any of their respective directors, officers, employees, Affiliates, advisors, agents or representatives or any other Person and (b) the Seller disclaims, on behalf of itself and its Affiliates, all liability and responsibility for any other representation, warranty, opinion, projection, forecast, advice, statement or information made, communicated or furnished (orally or in writing).  Neither the Seller nor any of its Affiliates, nor any of their respective directors, officers, employees, Affiliates, advisors, agents or representatives or any other Person, will have or be subject to any liability or indemnification obligation to Buyer or any other Person resulting from the delivery, dissemination or any other distribution to Buyer or any other Person, or the use by Buyer or any other Person, of any such information provided or made available to them, including any information, documents, estimates, projections, forecasts or other forward-looking information, business plans, advice or other material provided or made available to Buyer or any other Person in the Data Room or any other “data room” (electronic or physical), confidential information memoranda or management presentations in anticipation or contemplation of any transaction contemplated by this Agreement unless such information is not prepared, produced, provided, delivered, disseminated or distributed by the Seller, any of its Affiliates, any of their respective directors, officers, employees, Affiliates, advisors, agents or representatives or any other Person in good faith. For the avoidance of doubt, neither the Seller nor any of its Affiliates, nor any of their respective directors, officers, employees, Affiliates, advisors, agents or representatives or 

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any other Person, has made or is making any representations or warranties to Buyer or any other Person regarding the probable success or profitability of the Company (whether before, on or after the Closing).
ARTICLE VI     
 
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer hereby represents and warrants to the Seller, as of the date hereof, as follows:
6.1    Organization, Good Standing and Qualification.  Buyer (a) is a legal entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, (b) has all requisite corporate or similar power and authority to own, lease and operate its properties and assets and to carry on its business as presently conducted and (c) is qualified to do business and is in good standing as a foreign corporation or other legal entity in each jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of its business requires such qualification, except in the case of clause (b) or (c) where the failure to be so qualified or in good standing or to have such power or authority, would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the consummation of the Acquisition.
6.2    Authority; Approval.  Except for Buyer Shareholder Approval, (i) Buyer has all requisite corporate power and authority and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this Agreement;(ii)The execution, delivery and performance by Buyer of this Agreement and the performance by Buyer of its obligations hereunder have been duly authorized by all necessary corporate action of Buyer, and this Agreement has been duly executed and delivered by Buyer and, assuming the due authorization, execution and delivery of this Agreement by the other parties hereto, constitutes a valid and binding agreement of Buyer enforceable against Buyer in accordance with its terms, subject to the Bankruptcy and Equity Exception.
6.3    Governmental Filings; No Violations.
(a)    Except for the Company Approval, no notices, reports or other filings are required to be made by Buyer with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by Buyer from, any Governmental Entity in connection with the execution, delivery and performance of this Agreement by Buyer or the consummation of the Acquisition, except those that the failure to make or obtain would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the consummation of the Acquisition.
(b)    Except for the Company Approval, the execution, delivery and performance of this Agreement by Buyer does not, and the consummation of the Acquisition will not, (i) violate the organizational documents of Buyer or (ii) conflict with, breach or violate any Law, Order or Permit to which Buyer is a party or by which it or its properties or assets are 

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subject or bound, except in the case of the foregoing clause (ii) for such conflicts, breaches or violations that would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the ability of Buyer to consummate the Acquisition.
6.4    Litigation.  There are no Legal Proceedings pending or, to Buyer’s knowledge, threatened against Buyer that seek to enjoin or would reasonably be expected to have the effect of preventing, making illegal, or otherwise interfering with, the consummation of the Acquisition.
6.5    Available Funds.  Buyer has available, or as of the Closing will have available, all funds necessary to satisfy all of its obligations under this Agreement.
6.6    Brokers.  Neither Buyer nor any of its stockholders, directors, officers or employees has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders’ fees in connection with the Acquisition.
6.7    Independent Investigation.  Notwithstanding anything contained in this Agreement to the contrary, Buyer acknowledges and agrees that none of the Seller or any of its Affiliates or any of their respective Representatives is making any representations or warranties whatsoever, express or implied, beyond those expressly given by the Seller in Article IV and Article V (in each case, as modified by any matters that have been Previously Disclosed), and Buyer acknowledges and agrees that, except for the representations and warranties expressly contained therein, the Company and the business are being transferred on a “where is”, “as is” basis.  Any claims Buyer or any Buyer Indemnified Party may have for breach of representation or warranty shall be based solely on the representations and warranties of the Seller in Article IV and Article V, in each case as modified by any matters that have been Previously Disclosed).  Buyer acknowledges that it has conducted to its satisfaction its own independent investigation of the Company and, in making the determination to proceed with the transactions contemplated by this Agreement, Buyer has relied on the results of its own independent investigation. Neither Buyer nor any of its Affiliates or any of their respective Representatives is aware of any facts, events or circumstances that would cause any of the representations or warranties in Article IV or the Article V to be untrue or incorrect in any respect.
ARTICLE VII     
 
COVENANTS
7.1    Interim Operations of the Company.  From the Execution Date until the Closing, except (x) as otherwise permitted or contemplated by this Agreement, (y) as Buyer may approve in writing (such approval not to be unreasonably withheld or delayed) or (z) as Previously Disclosed, the Seller will cause the Company not to:
(i)    adopt or propose any change in the Organizational Documents;

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(ii)    issue, sell, pledge, dispose of, grant, transfer, encumber, dispose of or otherwise distribute or cause to be granted to any Person any shares of common stock or other equity securities of the Company;
(iii)    create, incur, assume or modify any financial indebtedness (other than in respect of Inter-Company Payables);
(iv)    transfer, sell, lease, mortgage, pledge, surrender, encumber, divest, cancel, abandon or allow to lapse or expire or otherwise dispose of any material assets or Permits of the Company, except (A) in connection with services provided in the ordinary course of business consistent with past practice or sales or other dispositions of obsolete assets, (B) pursuant to Contracts in effect prior to the Execution Date, (C) as Previously Disclosed, (D) as permitted or contemplated by this Agreement or any Ancillary Agreement or (E) the Seller shall have the right to purchase from the Company any and all API (as such term is defined in the MSA) and Bulk Product (as such term is defined in the MSA) under the ownership of the Company, in each case at a price not exceeding the book value thereof as of the date on which such API or Bulk Product, as applicable, was purchased by the Company;
(v)    terminate or materially breach the terms of the Contract Manufacturing & Supply Agreement, dated December 9, 2013, by and between the Seller and the Company; 
(vi)    except as required by Law or any Benefit Plan in effect as of the Execution Date or involving changes or increases in the ordinary course of business, (A) grant, increase or accelerate the payment of any wages, salaries, bonuses, severance pay or other compensation or benefits payable or potentially available to any employee of the Company or (B) establish, adopt, materially amend or terminate any Benefit Plan;
(vii)    terminate, cancel, fail to renew or reduce the coverage under any material policy of insurance of the Company;
(viii)    terminate the employment of any Key Executive other than for Cause or in accordance with the terms of such Key Executive’s employment agreement; or
(ix)    agree, authorize or commit to do any of the foregoing.
7.2    Filings; Other Actions; Notification.
(a)    Each of Buyer and the Seller shall cooperate with each other and use reasonable best efforts to take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable on its part under this Agreement and applicable Law, to consummate the transactions contemplated by this Agreement as soon as practicable, including 

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preparing and submitting as promptly as practicable all documentation to effect all necessary notices, reports, submissions and other filings and to obtain as promptly as practicable the Company Approval and any Permits necessary or advisable to be obtained from any third party or any Governmental Entity in order to consummate the transactions contemplated by this Agreement. Subject to (i) applicable Laws relating to the exchange of information and the direction of any Governmental Entity and (ii) matters not related to the business of the Company that the Seller or Buyer reasonably determines should not be disclosed to the other due to confidentiality concerns, Buyer, on the one hand, and the Seller, on the other hand, shall have the right to review in advance, and to the extent practicable each will consult the other on, all the information relating to Buyer or the Seller and the Company, as the case may be, and any of their respective Subsidiaries or Affiliates, as applicable, that appears in any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions contemplated by this Agreement. In exercising the foregoing right, each of the Seller, the Company and Buyer shall act reasonably and as promptly as practicable. Each of Buyer, the Seller and the Company will respond promptly under the circumstances to any requests for additional information by any Governmental Entity in connection with the transactions contemplated by this Agreement.
(b)    Subject to (i) applicable Laws relating to the exchange of information and the direction of any Governmental Entity and (ii) matters not related to the business of the Company that the Seller or Buyer reasonably determines should not be disclosed to the other due to confidentiality concerns, the Seller, on the one hand, and Buyer, on the other hand, shall, upon request by the other, furnish the other with all information concerning itself, its Subsidiaries (where applicable), directors, officers and stockholders and such other matters as may be reasonably necessary or advisable in connection with any statement, submission, filing, notice or application made by or on behalf of Buyer, the Seller, the Company or any of their respective Subsidiaries or Affiliates, as applicable, to any third party or any Governmental Entity in connection with the approval of the transactions contemplated by this Agreement.
(c)    Subject to applicable Laws relating to the exchange of information and the direction of any Governmental Entity, (i) the Seller, the one hand, and Buyer, on the other hand, shall keep the other apprised of the status of matters relating to completion of the transactions contemplated by this Agreement, including (A) promptly furnishing the other with copies of notices or other communications received by Buyer or the Seller and the Company, as the case may be, from any third party or any Governmental Entity and (B) promptly informing the other of any discussions with any such third party or Governmental Entity, in each case with respect to the transactions contemplated by this Agreement; (ii) the Seller shall give prompt notice to Buyer of any change that could reasonably have or result in a Material Adverse Effect or prevent, materially delay or materially impair the ability of the Seller to consummate the transactions contemplated by this Agreement; (iii) Buyer shall give prompt notice to the Seller of any change that could reasonably prevent, materially delay or materially impair the ability of Buyer to consummate the transactions contemplated by this Agreement; and (iv) neither the Seller, on the one hand, nor Buyer, on the other hand, shall permit any of its officers, directors or any other representatives or agents to participate in any meeting with any Governmental Entity in respect of any filings, investigation or other inquiry relating to the transactions contemplated by this 

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Agreement, unless it consults with the other Party in advance and gives the other Party the opportunity to attend and participate thereat.
(d)    Each of Buyer and the Seller shall not take or permit any of its Subsidiaries (where applicable) to take any actions that would, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the consummation of the transactions contemplated by this Agreement.
7.3    Access and Reports.
(a)    Subject to applicable Law, upon reasonable advance written notice, the Seller will cause the Company to afford Buyer’s officers and other authorized representatives reasonable access throughout the period prior to the Closing, during normal business hours and in such a manner as to not interfere with the conduct of the Company’s business, to its employees, properties, books, contracts and records and, during such period, the Seller will cause the Company to furnish promptly to Buyer all information concerning its business, properties and personnel as may reasonably be requested; provided, that the foregoing shall not require the Company (i) to permit any inspection, or to disclose any information, that in the reasonable judgment of the Company would result in the disclosure of any trade secrets of third parties or violate any of its obligations with respect to confidentiality or if any Law applicable to the Company requires the Company to restrict or prohibit access to such information or (ii) to disclose any privileged information of the Company. All requests for information made pursuant to this Section 7.3(a) shall be directed to the Seller. All such information shall be governed by the terms of the Confidentiality Agreement.
(b)    Subject to applicable Law, upon reasonable advance written notice, Buyer will cause the Company to afford the Seller’s officers and other authorized representatives reasonable access for the period commencing on the Closing and ending on the date that is three (3) years after the Closing Date, during normal business hours and in such a manner as to not interfere with the conduct of the Company’s business, to its employees, properties, books, contracts and records and, during such period, Buyer will cause the Company to furnish promptly to the Seller all information concerning its business, properties and personnel as may reasonably be requested. All requests for information made pursuant to this Section 7.3(b) shall be directed to Buyer.
7.4    Publicity.  The initial press release regarding the transactions contemplated by this Agreement and the Ancillary Agreements shall be a joint press release and thereafter each of the Seller and Buyer shall consult with each other prior to issuing any press releases or otherwise making public announcements with respect to the transactions contemplated by this Agreement or any Ancillary Agreement and prior to making any filings with any third party and/or any Governmental Entity with respect thereto, except as may be required by Law or by the request of any Governmental Entity.
7.5    Employee Benefits.

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(a)    The retention payments set forth in the Retention Plan shall be paid by the Company no later than 30 days after the Closing Date. In the event the actual retention payments paid or payable by the Company are more than the amount set forth in the Retention Plan, the Seller shall be liable for the excessive amount (but only to the extent that such excess amounts are required to be paid pursuant to agreements, plans or arrangements established by the Seller and/or the Company prior to the Closing of this Agreement).  The accrued annual bonuses under the Company’s annual cash bonus incentive plan in respect of the Company’s 2017 fiscal year (the “Accrued Bonuses”) shall be paid by the Company in the ordinary course of business consistent with past practice.
(b)    The provisions of this Section 7.5 are solely for the benefit of the Parties, and nothing in this Agreement, whether express or implied, is intended to, or shall, (i) limit the right of Buyer, the Company or their respective Affiliates to amend, terminate or otherwise modify any Benefit Plan (including any Retention Plan) or other benefit plan, agreement or arrangement following the Closing or (ii) create any third-party beneficiary or other right (x) in any Person, including any current or former employee of the Company or any Affiliate, any participant in any Benefit Plan (including any Retention Plan) or other benefit plan, agreement or arrangement (or any dependent or beneficiary thereof) or (y) to continued employment with Buyer, the Company or any of their respective Affiliates.
7.6    Confidentiality.  The Seller hereby agrees with Buyer that the Seller will not, and that the Seller will cause its Affiliates (other than the Company) not to, at any time on or after the Closing Date, directly or indirectly, without the prior written consent of Buyer, disclose or use any confidential or proprietary information involving or relating to the Company (collectively, “Confidential Information”); provided, however, that the information subject to the foregoing provision of this sentence will not include any information generally available to, or known by, the public (other than as a result of disclosure in violation hereof) or that was independently developed by the Seller without use or reference to Confidential Information or was in their rightful possession before the disclosure of the applicable Confidential Information to them; provided, further, that the provisions of this Section 7.6 will not prohibit any retention of copies of records or disclosure (a) required by applicable Law or applicable Governmental Entity or (b) made in connection with the enforcement of any right or remedy relating to this Agreement or any Ancillary Agreement; provided, further, that “Confidential Information” shall not include any Information that is owned or controlled by or otherwise in the possession of the Seller or the Company prior to the Closing, and such Information shall be deemed to be, and shall be treated for all purposes under this Agreement as, Information of the Seller regardless of whether such Information is, after the Closing, in the possession of Buyer or any of its Affiliates (including, after the Effective Date, the Company).  The obligations under this Section 7.6 shall terminate three (3) years after the Closing Date.
7.7    Tax Matters.
(a)    Except to the extent treated as a liability in the calculation of the Final Net Working Capital, the Seller shall be liable for and indemnify Buyer for all income Taxes imposed on the Company for any taxable period that ends on or before the Closing Date and, with respect 

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to any taxable period beginning before and ending after the Closing Date (a “Straddle Period”), the portion of such Straddle Period ending on and including the Closing Date.  Except to the extent treated as an asset in the calculation of the Final Net Working Capital, Buyer shall be liable for and indemnify the Seller for the income Taxes of the Company for any taxable period that begins after the Closing Date and, with respect to any Straddle Period, the portion of such taxable period beginning after the Closing Date.  With respect to any Straddle Period, the amount of Taxes attributable to the period ending on and including the Closing Date shall be determined on an interim closing of the books basis, except for ad valorem Taxes which shall be prorated on a daily basis. Buyer shall not take any action, or allow the Company to take any action on or after the Closing Date, that would increase the liability of the Seller for Taxes for which it is liable pursuant to this Section 7.7(a).
(b)    The Seller shall file or cause to be filed when due all income Tax Returns of the Company required to be filed on or before the Closing Date and shall pay any income Taxes due in respect of such Tax Returns, and Buyer shall file or cause to be filed when due all other income Tax Returns of the Company and shall remit any Taxes due in respect of such Tax Returns.  The Seller shall pay Buyer the income Taxes for which the Seller is liable pursuant to Section 7.7(a) but which are payable with Tax Returns to be filed by Buyer pursuant to this paragraph (b).  Any Tax Returns with respect to any taxable period beginning before and ending after the Closing Date (“Straddle Period Tax Returns”) shall be prepared in a manner consistent with prior Tax Returns. Buyer shall deliver (or cause to be delivered) the Straddle Period Tax Returns to the Seller for its review and comment not later than twenty (20) days prior to the due date of such Straddle Period Tax Returns. Buyer shall incorporate all changes requested by the Seller at least five (5) days prior to the due date of the Straddle Period  Tax Returns. Buyer shall cause such Straddle Period Tax Returns to be filed on a timely basis and shall pay all Taxes reflected on such Straddle Period Tax Returns.
(c)    The Seller shall be entitled to any refunds of Taxes received by the Company in respect of any taxable period (or pre-Closing portions thereof, in the case of a Straddle Period) that begins before the Closing Date.  Buyer shall cause the Company to use commercially reasonable efforts to obtain any such refunds to which they may be entitled and shall promptly deliver to the Seller for distribution to the Seller any such refunds, after deducting any reasonable costs or Taxes incurred in connection with obtaining and receiving the refund. Buyer shall be entitled to any refunds of Taxes of the Company received in respect of any taxable year or period that begins after the Closing Date (and with respect to any refunds of Taxes attributable to the post-Closing portion of any Straddle Periods, as noted above). The Seller shall use commercially reasonable efforts to obtain any such refunds to which they may be entitled and shall promptly deliver to Buyer any such refunds, after deducting any reasonable costs or Taxes incurred in connection with obtaining and receiving the refund.
(d)    The Seller and Buyer shall, and Buyer shall cause the Company to, reasonably cooperate and shall cause their respective Affiliates and representatives to reasonably cooperate, in preparing and filing all Tax Returns relating to any Tax period beginning before the Closing Date, including maintaining and making available to each other, and to any taxing authority as reasonably requested, all records necessary in connection with Taxes of the 

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Company and in resolving all disputes and audits with respect to any Tax period beginning before the Closing Date relating to Taxes.  The Seller and Buyer agree (i) to retain all books and records (or, in the alternative, to deliver such books and records to the Company) with respect to Tax matters pertinent to the Company relating to any Tax period beginning before the Closing Date until ninety (90) days after the expiration of the applicable statute of limitations and to abide by all record retention agreements entered into with any Governmental Entity, (ii) to allow the other Party and its representatives, at times and dates mutually acceptable to the Parties, to inspect, review and make copies of such records as such Party may deem necessary or appropriate from time to time, such activities to be conducted during normal business hours and at such Party’s expense and (iii) to give the other Party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other Party so requests, the Seller or Buyer, as the case may be, shall allow the other Party to take possession of such books and records prior to such transfer, destruction or discard.
(e)    Buyer hereby agrees, from and after the Closing, to pay all transfer, documentary, sales, use, stamp, recording, value added, registration and other similar Taxes and all conveyance fees, recording fees and other similar charges (all including penalties, interest and other charges with respect thereto, collectively, “Transfer Taxes”) incurred in connection with the consummation of the transactions contemplated by this Agreement.
(f)    If a claim with respect to Taxes shall be made by any Governmental Entity, which, if successful, might result in an indemnity payment to Buyer pursuant to Section 10.2, Buyer shall promptly and in any event no more than fifteen (15) days following Buyer’s receipt of notice of such claim, give written notice to the Seller of such claim (a “Tax Claim”); provided, however, the failure of Buyer to give such notice shall only relieve the Seller from their indemnification obligations hereunder to the extent it is actually prejudiced by such failure. With respect to any such Tax Claim, the Seller shall, upon written notification to Buyer, control all proceedings and may make all decisions taken in connection with such Tax Claim (including selection of counsel) at its own expense. The Seller shall promptly notify Buyer if it decides not to control the defense or settlement of any Tax Claim which it is entitled to control pursuant to this Agreement, and Buyer shall thereupon be permitted to defend and settle such proceeding, provided, however, no such Tax Claim can be settled, either administratively or after the commencement of litigation, without the written consent of the Seller, which consent shall not be unreasonably withheld. Buyer, the Seller and each of their respective Affiliates shall reasonably cooperate with each other in contesting any Tax Claim.
(g)    Any payment by Buyer or the Seller under this Section 7.7 will be an adjustment to the consideration paid under this Agreement.
(h)    The obligations of the Parties set forth in this Section 7.7 shall be unconditional and absolute and shall remain in effect without limitation as to time.
(i)    Notwithstanding anything to the contrary in this Agreement (including, without limitation, Section 10.1), the Seller shall not be obligated to indemnify any Buyer Indemnified Party in respect of any matters relating to the Tax periods for which the statute of limitations for an audit by a Taxing Authority has expired.

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(j)    For the avoidance of doubt, the Seller shall be responsible for all pre-Closing liabilities in respect of the Company’s withholding tax payable due as a result of the  service fee expense paid by the Company to the Seller or its Affiliates in the fiscal years 2016 and 2017.
7.8    Use of “Impax” Name.
(a)    Except as expressly permitted under the MSA and the License Agreement, none of Buyer or any of Buyer’s Affiliates (including, from and after the Closing, the Company) shall (A) use, reproduce or display the name “Impax” or any derivative or variation thereof, or any other Trademark owned by Seller or any of its Affiliates after the Closing (each, a “Seller Mark”) as an identifier for the Buyer or any of its Affiliates, (B) make, have made, sell, transfer, distribute or market any products or services bearing any Seller Mark or (C) enter into any agreement with any third party that would require the Company or any of its Affiliates to do any of the foregoing, in each case of (A) through (C), other than with Seller’s prior written consent.  Except as expressly permitted under the MSA and the License Agreement, Buyer shall ensure that the Company, as soon as reasonably practicable following the Closing Date eliminates all Seller Marks from, revises, paints over or otherwise permanently obscures all Seller Marks on, all signage or other public-facing materials (including all publicly distributable documents and other digital or physical public-facing materials bearing such Seller Mark) owned or controlled by the Company after the Closing Date.
(b)    Seller will retain all right, title and interest in and to the Seller Marks and all goodwill arising from the use, reproduction or display of the foregoing shall inure to the benefit of the Seller.  None of Buyer or any of Buyer’s Affiliates (including, from and after the Closing, the Company) shall hold itself out as having any affiliation with the Seller or any of the Seller’s Affiliates.
(c)    Following the Closing Date, Seller shall, at the Company’s reasonable written request and to the extent required to facilitate the Company’s transition away from using the Seller Marks following the Closing Date, provide written acknowledgement of the transactions contemplated by this Agreement and otherwise use commercially reasonable efforts to respond to any written inquiries from any Governmental Entity concerning this Agreement and the Company’s transition away from using the Seller Marks, in each case, in a manner mutually agreed upon by Seller and Buyer.
(d)    For the avoidance of doubt, the YB Mark shall not be considered a Seller Mark.
7.9    Intercompany Arrangements.
(a)    Intercompany Accounts.  Except pursuant to the Ancillary Agreements, all intercompany accounts relating to relationships or services as of the Closing Date between the Seller or its Affiliates (other than the Company), on the one hand, and the Company, on the other hand, shall be settled in full or, at the option of the Seller, but only to the extent permitted by Law, cancelled, in each case on or prior to the Closing.

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(b)    Affiliate Contracts.  On or prior to the Closing Date, other than this Agreement and/or Ancillary Agreements, all Affiliate Contracts shall be terminated and all payables and receivables under such Affiliate Contracts so terminated shall have been settled.  To the extent any such Affiliate Contract is not so terminated, Buyer and the Seller shall reasonably cooperate to cause the prompt termination of such Affiliate Contracts (and the settlement of amounts in connection therewith in the manner contemplated by the preceding sentence).
(c)    Services from Affiliates.  Buyer acknowledges that the Company currently receives or benefits from certain services and benefits provided by the Seller or its Affiliates, including operations and information technology. Other than as may be provided pursuant to the terms of an Ancillary Agreement, Buyer further acknowledges that all such services and benefits shall cease, and any agreement in respect thereof shall terminate with respect to the Company, as of the Closing Date, and thereafter, the Seller’s and its Affiliates’ sole obligation with respect to the provision of any services with respect to the Company shall be as set forth in the Ancillary Agreements, as applicable.
(d)    Shared Agreements.  The Seller, as promptly as practicable following execution of this Agreement, shall use its reasonable best efforts to, and shall cause its Affiliates to use their respective reasonable best efforts to, amend, supplement, terminate or otherwise modify each Shared Agreement in order to terminate or commute, concurrently with the Closing, all direct and indirect economic, commercial or other benefits, rights and liabilities or other obligations (other than those that accrue or relate to a period in time prior to the Closing) with respect to the Company under the Shared Agreements. For the avoidance of doubt, Buyer agrees that on and after the Closing, neither it or any of its Affiliates (including the Company) shall have any benefits or rights under any Shared Agreement.
7.10    Insurance.  Buyer shall not have any rights under any Insurance Policy of the Seller covering some or all of the Company from and after the Closing and the Seller shall be entitled to remove all coverage in respect of the Company under such policies effective at, or any time following, the Closing.
7.11    Financing.
(a)    Buyer has delivered to the Seller true, complete and correct copies of the commitment letters, each dated as of the date hereof, from the financial institution (the “Financing Source”) identified therein (the “Financing Commitment”), pursuant to which the Financing Source has committed, subject to the terms and conditions set forth therein, to lend the amounts set forth therein for the purposes of financing the transactions contemplated by this Agreement and related fees and expenses (the “Financing”).  Buyer shall satisfy on a timely basis all conditions to draw down under the Financing Agreements by no later than immediately prior to the Closing (including by drawing down the Financing Commitment under the Financing Agreements).
(b)    Buyer shall not agree to or permit any amendment, supplement or other modification to be made to, or any waiver of any provision or remedy under, the Financing Agreements without the Seller’s prior written consent, or provide for the assignment of a portion 

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of the loan facilities under the Financing Agreements to additional agents or arrangers or to reallocate commitments or assign or reassign titles or roles to, or between or among, any entities party thereto.
(c)    On the Closing Date, the Seller shall provide to Buyer the resolutions of the Company’s board of directors approving the pledge of certain of the Company’s assets in connection with the Financing (the “Resolutions”), which approval shall be contingent on and subject to the Closing in all respects; provided that the Seller shall not be required to provide or cause the Company to take any action under or in connection with this Section 7.11(c) that (A) unreasonably interferes with the ongoing business of the Company, (B) causes any representation or warranty in this Agreement to be breached, (C) causes (i) any closing condition set forth in this Agreement to fail to be satisfied or otherwise causes the breach of this Agreement or (ii) any Contract to which the Seller or the Company is a party and which is not entered into for the purposes of reducing the obligations of the Seller and the Company under this Section 7.11(c), (D) requires the Company or its directors, officers, managers or employees to execute, deliver or enter into, or perform any agreement, document, certificate or instrument, including any Financing Agreement, with respect to the Financing that is not contingent upon the Closing or that would be effective prior to the Closing, and the directors and managers of the Company shall not be required to adopt resolutions approving the agreements, documents and instruments pursuant to which the Financing is obtained, in each case which are effective prior to the Closing, (E) would subject the Seller or its Affiliates (including the Company) or any director, officer, manager or employee thereof to actual or potential liability, to bear any cost or expense or to pay any commitment or other similar fee or make any other payment or incur any other liability or provide or agree to provide any indemnity in connection with the Financing or any of the foregoing or (F) requires the Seller or the Company to take any action that would reasonably be expected to conflict with or violate (1) any organizational documents of the Seller or any of its Affiliates (including the Company) or (2) any applicable Law; provided that without prejudice to the foregoing the Seller agrees to notify Buyer if entering into or providing the Resolutions (or any action to be taken in connection therewith) could reasonably be expected to result in the occurrence of any event set forth in any of clause (C)(ii), (E) or (F)(1) and the Seller will not provide the Resolutions as a result thereof.
(d)    Buyer hereby indemnifies and holds harmless the Seller and its Affiliates (including the Company) and its directors, officers, managers or employees from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with this Section 7.11.  Notwithstanding anything to the contrary, the condition set forth in Section 8.1(d), as it applies to the Seller’s obligations under this Section 7.11, shall be deemed satisfied unless the Financing (or any alternative financing) has not been obtained primarily as a result of the Seller’s knowing and intentional material breach of its obligations under this Section 7.11.  Buyer shall, promptly upon request by the Seller, reimburse the Seller for all reasonable out-of-pocket costs incurred by the Seller or its Affiliates (including the Company) in connection with this Section 7.11.  Buyer acknowledges and agrees that the obtaining of the Financing, or any alternative financing, is not a condition to Closing and reaffirms its obligation to consummate the transactions contemplated 

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by this Agreement irrespective and independently of the availability of the Financing or any alternative financing.
7.12    Non-solicitation.  From and after the Closing Date until the date that is three (3) years after the Closing Date, the Seller shall not, and shall procure that each of its Affiliates (other than the Company) shall not, without written consent from the Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), directly or indirectly, hire or solicit for employment any person who is employed by the Company as of the Closing or induce or encourage any such person to no longer be employed by the  Company; provided that (i) the Seller and its Affiliates may solicit or hire any such person who (x) was terminated by Buyer or its Affiliates (including the Company) or (y) has not been an employee of Buyer or its Affiliates (including the Company) for at least three (3) months prior to such solicitation or hiring and (ii) this Section 7.12 shall not prohibit the Seller and its Affiliates from making general solicitations for employment.
7.13    Director Resignation.  On or prior to the Closing, except as otherwise may be directed by Buyer in writing, the Seller shall obtain and deliver to Buyer resignation letters from each of the members of the board of directors of the Company, in each case with the resignation to be effective as of the Closing.
7.14    Buyer Shareholder Meeting.  As soon as practicable following the date of this Agreement (and in no event later than two Business Days after the date hereof), Buyer, through its board of directors, shall, in accordance with applicable Law and the organizational documents of Buyer, duly call, give notice of, convene and hold the Buyer Shareholder Meeting and Buyer shall and shall cause its Affiliates and its and their Representatives to use its and their reasonable best efforts to obtain the Buyer Shareholder Approval as soon as practicable. Buyer shall actively solicit and recommend to its shareholders that they vote in favor of the Buyer Shareholder Approval.
7.15    Anti-Trust Clearance Certificate.  Prior to the Closing, each of the Seller and Buyer shall deliver to the other Party its respective Anti-Trust Clearance Certificate.  Notwithstanding anything to the contrary in this Agreement, Buyer acknowledges and agrees that such certificate is only being provided by the Seller for informational purposes and the Seller is not making any representations or warranties as to the accuracy or completeness of the information contained in such certificate.
7.16    Bank Accounts, Chops and Seals.  On or prior to the Closing:
(a)    the Seller will change, effective as of the Closing, the individuals authorized to draw on or have access to the bank accounts maintained by the Company to the individuals designated in writing by Buyer no less than thirty (30) days prior to the Closing Date;
(b)    the Seller shall deliver to Buyer, or otherwise ensure that the Company is in possession of, the complete set of company chops and seals belonging to the Company; and

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(c)    the Seller shall remove from applicable registrations, including records at applicable Governmental Entities and banks, effective as of the Closing, the signatories registered in connection with the company chops and seals belonging to the Company.
7.17    Buyer Registration.  The Buyer will use its best efforts, in good faith, to obtain a Data Universal Numbering System number from Dun and Bradstreet, Inc., and a Facility Establishment Identifier number from the FDA, as promptly as practicable after the Closing (and in any event no later than 30 days after the Closing Date).
7.18    Net Working Capital.  Seller and Buyer acknowledge and agree that, to the extent permitted under the Agreed Principles and applicable Laws, the Estimated Closing Date Balance Sheet and the Final Closing Date Balance Sheet shall include net property, plant and equipment in value between $17,500,000.00 and $19,500,000.00.

ARTICLE VIII     
 
CONDITIONS
8.1    Conditions to Obligations of Buyer.  The obligation of Buyer to consummate the transactions contemplated by this Agreement is subject to the satisfaction or waiver by Buyer at or prior to the Closing of each of the following conditions:
(a)    No Orders.  No court or other Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits consummation of the Acquisition (collectively, an “Order”).
(b)    Representations and Warranties Relating to the Company.  Each of the representations and warranties relating to the Company set forth in Article V (i) that are qualified by reference to Material Adverse Effect shall be true and correct and (ii) that are not qualified by reference to Material Adverse Effect shall be true and correct (disregarding for this purpose any qualifications or reference to materiality contained in such representations and warranties) except for failures to be true and correct that, individually or in the aggregate, have not had and would not reasonably be expected to have, a Material Adverse Effect, in each case, as of the Closing Date, with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty need only so be true and correct as of such date. Buyer shall have received at the Closing a certificate signed on behalf of the Company by an authorized officer of the Seller to the effect that such authorized officer has read this Section 8.1(b) and the conditions set forth in this Section 8.1(b) have been satisfied.
(c)    Representations and Warranties Relating to the Seller.  Each of the representations and warranties relating to the Seller set forth in Article IV (i) that are qualified by reference to materiality shall be true and correct and (ii) that are not qualified by reference to 

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materiality shall be true and correct in all material respects, in each case, as of the Closing Date, with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty need only be true and correct as of such date. Buyer shall have received at the Closing a certificate signed by an authorized officer of the Seller to the effect that such authorized officer has read this Section 8.1(c) and the conditions set forth in this Section 8.1(c) have been satisfied.
(d)    Performance of Obligations of the Seller.  The Seller shall have performed and complied in all material respects with all covenants required to be performed by it under this Agreement on or prior to the Closing Date, and Buyer shall have received a certificate signed by an authorized officer of the Seller to such effect.
(e)    Net Working Capital.  As of the Closing, (i) the Estimated Buyer Working Capital Payment shall not exceed $16,000,000.00 and (ii) the amount of Inventory shall not exceed $11,000,000.00, in each case as set forth in the Estimated Closing Date Balance Sheet.
8.2    Conditions to Obligations of the Seller.  The obligation of the Seller to consummate the transactions contemplated by this Agreement is subject to the satisfaction or waiver by the Seller at or prior to the Closing of each of the following conditions:
(a)    No Orders.  No court or other Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered an Order.
(b)    Representations and Warranties.  Each of the representations and warranties of Buyer set forth in Article VI shall be true and correct, in each case, as of the date of this Agreement and as of the Closing Date, with the same effect as though those representations and warranties had been made on and as of the Closing Date, except to the extent that any such representation or warranty is made as of a specified date, in which case such representation or warranty need only be true and correct as of such date. The Seller shall have received at the Closing a certificate signed on behalf of Buyer by an authorized officer of Buyer to the effect that such authorized officer has read this Section 8.2(b) and the conditions set forth in this Section 8.2(b) have been satisfied.
(c)    Performance of Obligations of Buyer.  Buyer shall have performed and complied in all material respects with all covenants required to be performed by it under this Agreement on or prior to the Closing Date, and the Seller shall have received a certificate signed on behalf of Buyer by an authorized officer of Buyer to such effect.
(d)    Bulk Product.  Prior to the Closing, either (i) the Parties shall agree in good faith prior to the Closing on the pricing terms of the packaging of Bulk Product (as such term is defined in the MSA) by the Manufacturer (as such term is defined in the MSA) under the MSA or (ii) any and all Bulk Product under the ownership of the Company as of the Closing shall be purchased by the Seller at a price not exceeding the book value thereof as of the date on which such Bulk Product was purchased by the Company.

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ARTICLE IX     
 
TERMINATION
9.1    Termination.  This Agreement may be terminated at any time prior to the Closing:
(a)    by written agreement of Buyer and the Seller;
(b)    by either Buyer or the Seller, by giving written notice of such termination to the other Party, if (i) the Closing shall not have occurred on or prior to June 19, 2018 (the “Termination Date”) or (ii) any Order permanently restraining, enjoining or otherwise prohibiting the consummation of the Acquisition shall become final and non-appealable; provided, that the right to terminate this Agreement pursuant to this Section 9.1(b) shall not be available to any Party that has breached its obligations under this Agreement in any material respect that shall have proximately contributed to the occurrence of the failure of a condition to the consummation of the Acquisition;
(c)    by the Seller if there has been a breach of any representation, warranty, covenant or agreement made by Buyer in this Agreement, or any such representation and warranty shall have become untrue after the Execution Date, such that Section 8.2(b) or 8.2(c) would not be satisfied and such breach or condition is not curable or, if curable, is not cured by the Termination Date; or
(d)    by Buyer if there has been a breach of any representation, warranty, covenant or agreement made by Seller in this Agreement, or any such representation and warranty shall have become untrue after the Execution Date, such that Section 8.1(b), 8.1(c) or 8.1(d) would not be satisfied and such breach or condition is not curable or, if curable, is not cured by the Termination Date.
9.2    Effect of Termination and Abandonment.
(a)    In the event of termination of this Agreement pursuant to this Article IX, this Agreement shall become void and of no effect with no liability to any Person on the part of any Party (or of any of its representatives or Affiliates); provided, however, and notwithstanding anything in the foregoing to the contrary, that (i) no such termination shall relieve any Party of any liability or damages to the other Party resulting from any willful material breach of this Agreement prior to the time of such termination and (ii) the provisions set forth in this Section 9.2, Article I, Sections 7.4, 7.11(d), 11.2, 11.4, 11.6 and 11.8 shall survive the termination of this Agreement.
(b)    The Confidentiality Agreement shall remain in full force and effect notwithstanding any termination of this Agreement.

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ARTICLE X     
 
INDEMNIFICATION
10.1    Survival.  All representations and warranties contained in this Agreement shall survive until the date that is fifteen (15) months after the Closing Date, except that the representations and warranties contained in Sections 4.1, 4.2, 5.2 and 5.11 (the “Seller Fundamental Representations”) and Sections 6.2 and 6.7 shall survive until the date on which the applicable statute of limitations expires. None of the covenants or agreements contained in this Agreement shall survive the Closing, other than those which by their terms apply or are to be performed in whole or in part after the Closing and such surviving covenants and agreements shall survive the Closing only until the expiration of the term of the undertaking set forth in such agreements and covenants.
10.2    Indemnification by the Seller.
(a)    From and after the Closing and subject to the provisions of this Section 10.2, the Seller shall indemnify, defend and hold harmless Buyer, its Subsidiaries and their respective officers, directors and Affiliates, each in their capacity as such (collectively, the “Buyer Indemnified Parties”), from, against and in respect of any Losses suffered by any Buyer Indemnified Party, in each case net of any actual benefit, arising out of or relating to:
(i)    the breach of any Seller Fundamental Representation;
(ii)    the breach of any representation or warranty made by the Seller in this Agreement (other than any Seller Fundamental Representation);
(iii)    the breach of any covenant or agreement made by the Seller in this Agreement; and
(iv)    the failure of the Seller to pay, perform or otherwise discharge any liability relating to the Transferred Loans prior to the Closing (other than any Assumed Liability).
(b)    Notwithstanding anything to the contrary contained in this Agreement:
(i)    the maximum amount of indemnifiable Losses arising out of or resulting from (A) the matters described in Section 10.2(a)(ii) that may be recovered, in the aggregate, from the Seller shall not exceed the Holdback Amount and (B) the matters described in Section 10.2(a) (other than the matters described in Section 10.2(a)(ii)) that may be recovered, in the aggregate, from the Seller shall not exceed the Purchase Price (the “Indemnity Cap”), provided that the maximum amount of indemnifiable Losses arising out of or resulting from the breach of Section 5.11 that may be recovered, in the aggregate, from the Seller shall not exceed $8,000,000.00 (and any amount recovered for Losses shall be included for purposes of calculating the Indemnity Cap); provided, further, that 

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any amount of Losses that the Buyer Indemnified Parties recover from the Holdback Amount shall be deemed to have been paid by the Seller; and
(ii)    no indemnification payment by the Seller with respect to any indemnifiable Losses otherwise payable under Section 10.2(a) shall be payable with respect to any claim for indemnifiable Losses unless such claim exceeds $100,000.00 (the “Minimum Claim Amount”), in which case the Seller shall, subject to Section 10.2(b)(i), be liable for such Losses.
(c)    Notwithstanding anything to the contrary herein, the Seller shall not be liable to any Buyer Indemnified Party and no Buyer Indemnified Party shall be entitled to claim that any representation, warranty, covenant, agreement or obligation of the Seller has been breached on account of any fact, matter or circumstance which such Buyer Indemnified Party had knowledge of on or before the date of this Agreement, provided further that nothing in this Agreement shall be construed to prevent Buyer from asserting a claim pursuant to Article X after the Closing where Loss(es) are sustained by Buyer but are solely caused by the acts of Seller or the Company prior to the Closing. For the avoidance of doubt, the Parties acknowledge that this Section 10.2(c) has no effect on any entitlement of Buyer to indemnification pursuant to Section 7.7(a) and 7.7(j) herein.  
10.3    Indemnification by Buyer.
(a)    From and after the Closing and subject to the provisions of this Section 10.3, Buyer shall indemnify, defend and hold harmless the Seller and their respective officers, directors and Affiliates, each in their capacity as such (collectively, the “Seller Indemnified Parties”, and each of the Buyer Indemnified Parties and the Seller Indemnified Parties, an “Indemnified Party”) from, against and in respect of any and all Losses suffered by any Seller Indemnified Party, in each case net of any actual benefit, arising out of or relating to:
(i)    the breach of any representation or warranty made by Buyer in this Agreement;
(ii)    the breach of any covenant or agreement made by Buyer in this Agreement; and
(iii)    the failure of Buyer to pay, perform or otherwise discharge any Assumed Liability.
10.4    Third Party Claim Indemnification Procedures.
(a)    Except as provided in Section 7.7(f) with respect to Tax Claims, in the event that any written claim or demand for which an indemnifying party (an “Indemnifying Party”) is asserted against or sought to be collected from any Indemnified Party by a third party (a “Third Party Claim”), such Indemnified Party shall promptly, but in no event more than ten (10) days following such Indemnified Party’s receipt of any threatened Third Party Claim, notify the Indemnifying Party in writing of such Third Party Claim, the amount or the estimated amount 

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of damages sought thereunder to the extent then ascertainable (which estimate shall not be conclusive of the final amount of such Third Party Claim), any other remedy sought thereunder, any relevant time constraints relating thereto and, to the extent practicable, any other material details pertaining thereto (a “Claim Notice”); provided, however, that the failure timely to give a Claim Notice shall affect the rights of an Indemnified Party hereunder only to the extent that such failure has an adverse effect on the resolution or other rights available to the Indemnifying Party with respect to such Third Party Claim.  The Indemnifying Party shall have thirty (30) days (or such lesser number of days set forth in the Claim Notice as may be required by court proceeding in the event of a litigated matter) after receipt of the Claim Notice (the “Notice Period”) to notify the Indemnified Party that it desires to defend the Indemnified Party against such Third Party Claim.
(b)    In the event that the Indemnifying Party notifies the Indemnified Party within the Notice Period that it desires to defend the Indemnified Party against a Third Party Claim, the Indemnifying Party shall have the right to defend the Indemnified Party by appropriate proceedings and shall have the sole power to direct and control such defense at its expense. Once the Indemnifying Party has duly assumed the defense of a Third Party Claim, the Indemnified Party shall have the right, but not the obligation, to participate in any such defense and to employ separate counsel of its choosing. The Indemnified Party shall participate in any such defense at its expense unless (i) the Indemnifying Party and the Indemnified Party are both named parties to the proceedings and counsel of the Indemnifying Party has identified a non-waivable conflict or actual differing interests between the Indemnifying Party and the Indemnified Party, or (ii) the Indemnified Party assumes the defense of a Third Party Claim after the Indemnifying Party has failed to diligently pursue a Third Party Claim it has assumed, as provided in the first sentence of Section 10.4(c), in which case the Indemnifying Party shall be liable for the fees and expenses of one separate counsel to the extent such Third Party Claim is subject to indemnification or reimbursement under Sections 10.2 or 10.3.  The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise any Third Party Claim on a basis that would result in (i) the imposition of a consent order, injunction or decree that would restrict the future activity or conduct of the Indemnified Party or any of its Affiliates, (ii) a finding or admission of a violation of Law or violation of the rights of any Person by the Indemnified Party or any of its Affiliates or (iii) a finding or admission that would have an adverse effect on other claims made or threatened against the Indemnified Party or any of its Affiliates.
(c)    If the Indemnifying Party (i) elects not to defend the Indemnified Party against a Third Party Claim, whether by not giving the Indemnified Party timely notice of its desire to so defend or otherwise or (ii) after assuming the defense of a Third Party Claim, fails to take reasonable steps necessary to defend diligently such Third Party Claim within ten (10) days after receiving written notice from the Indemnified Party to the effect that the Indemnifying Party has so failed, the Indemnified Party shall have the right but not the obligation to assume its own defense and shall consult with the Indemnifying Party regarding the strategy for defense of such claim, including with respect to the Indemnified Party’s choice of legal counsel, it being understood that the Indemnified Party’s right to indemnification for a Third Party Claim shall not be adversely affected by assuming the defense of such Third Party Claim.  The Indemnifying 

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Party shall have no liability with respect to a Third Party Claim settled without its consent, which consent shall not be unreasonably withheld or delayed.
(d)    The Indemnified Party and the Indemnifying Party shall cooperate in order to ensure the proper and adequate defense of a Third Party Claim, including by providing access to each other’s relevant business records and other documents and employees, it being understood that the costs and expenses of the Indemnified Party relating thereto shall be considered Losses.  The Indemnified Party and the Indemnifying Party shall keep each other fully informed with respect to the status of such Third Party Claim.
(e)    The Indemnified Party and the Indemnifying Party shall use reasonable best efforts to avoid production of confidential information (consistent with applicable Law), and to cause all communications among employees, counsel and others representing any party to a Third Party Claim to be made so as to preserve any applicable attorney-client or work-product privileges.
(f)    Each of Buyer and the Seller hereby consents to the non-exclusive jurisdiction of any court in which a Third Party Claim is brought for purposes of any claim for indemnification or reimbursement with respect to such Third Party Claim or the matters alleged therein.
10.5    Limitations on Indemnification.
(a)    Consequential Damages.  Notwithstanding anything to the contrary contained in this Agreement, no Person shall be liable under this Article X for any consequential, punitive, special, exemplary, incidental or indirect damages, including lost profits or diminution in value.  No “multiple of profits” or “multiple of cash flow” or other valuation methodology shall be used in calculating the amount of any Losses unless such Losses were awarded to a third party pursuant to a Third Party Claim.
(b)    Mitigation.  Each Indemnified Party shall use its reasonable best efforts to mitigate any indemnifiable Loss to the same extent as it would if such Loss were not subject to indemnification pursuant to the terms of this Article X. In the event an Indemnified Party fails to so mitigate an indemnifiable Loss, the Indemnifying Party shall have no liability for any portion of such Loss that reasonably could have been avoided had the Indemnified Party made such efforts.
(c)    Insurance.  In calculating the amount of any Loss, the proceeds received or reasonably expected to be received by the Indemnified Party or any of its Affiliates under any insurance policy or pursuant to any claim, recovery, settlement or payment by or against any other Person, in each case relating to the Third Party Claim or a claim for indemnification hereunder for a Loss that does not result from a Third Party Claim (a “Direct Claim”), shall be deducted; it being understood that the Indemnified Party shall seek to recover under insurance policies or indemnity, contribution or other similar agreements for any Losses prior to seeking indemnification under this Agreement.  In the event that an Indemnified Party has any rights against a third party with respect to any occurrence, claim or loss that results in a payment by an 

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Indemnifying Party under this Article X, such Indemnifying Party shall be subrogated to such rights to the extent of such payment; provided, that until the Indemnified Party recovers full payment of the Loss related to any such Direct Claim, any and all claims of the Indemnifying Party against any such third party on account of said indemnity payment is hereby expressly made subordinate and subject in right of payment to the Indemnified Party’s rights against such third party. Without limiting the generality or effect of any other provision hereof, each Indemnified Party and Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the subrogation and subordination rights detailed herein, and otherwise cooperate in the prosecution of such claims.
(d)    Financial Statements.  No Buyer Indemnified Party shall be entitled to indemnification hereunder for any Losses arising from a breach of any representation, warranty, covenant or agreement set forth herein (and the amount of any Losses incurred in respect of such breach shall not be included in the calculation of any limitations on indemnification set forth herein) to the extent such Losses are specifically accrued or reserved for in the Financial Statements.
(e)    Taxes.  In calculating the amount of any Loss, there shall be deducted an amount equal to any Tax benefit actually realized (including the utilization of a Tax loss or Tax credit carried forward) as a result of such Loss by the Party claiming such Loss.
(f)    Reimbursement.  If an Indemnified Party recovers an amount from a third party in respect of a Loss that is the subject of indemnification hereunder after all or a portion of such Loss has been paid by an Indemnifying Party pursuant to this Article X, the Indemnified Party shall promptly remit to the Indemnifying Party the excess (if any) of (i) the amount paid by the Indemnifying Party in respect of such Loss, plus the amount received from the third party in respect thereof, less (ii) the full amount of the Loss.
(g)    Contingent Losses.  No Indemnifying Party shall have any liability for an otherwise indemnifiable Loss that is contingent unless and until such contingent Loss becomes an actual Loss of the Indemnified Party and is due and payable, so long as the claim for such Loss was timely submitted pursuant to the provisions of this Article X.
(h)    Changes in Law.  No Indemnifying Party shall be liable for any Loss to the extent arising from (A) a change in accounting or taxation law, policy or practice made after the Closing, other than a change required to comply with any law, policy or practice in effect on the date hereof, or (B) any Law not in force on the date hereof or any change in Law which takes effect retroactively or occurs as a result of any increase in the rates of taxation in force on the date hereof.
(i)    Claim Procedures.  No Indemnifying Party shall be liable for any otherwise indemnifiable Loss arising out of any breach of any representation, warranty, covenant or agreement of such party unless a claim therefore is asserted with specificity and in writing by the Indemnified Party timely in accordance with this Article X, failing which such claim shall be waived and extinguished.

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(j)    Purchase Price Adjustment.  In calculating the amount of any Loss for which Buyer is entitled to indemnification hereunder, the amount of any reserve or other negative provision reflected in the Estimated Closing Date Balance Sheet related to such Loss shall be deducted.
10.6    Payments.
(a)    If a Buyer Indemnified Party is entitled to indemnification from the Seller under this Article X, then such Losses shall first be satisfied from the Holdback Amount, and no amount shall be recovered by Buyer pursuant to this Article X unless and until the Holdback Amount has been exhausted or released pursuant to Section 2.5.
(b)    The Indemnifying Party shall pay all amounts payable pursuant to this Article X, in immediately available funds, to an account specified by the Indemnified Party following receipt from an Indemnified Party of a bill, together with all accompanying reasonably detailed supporting documentation, for a Loss that is the subject of indemnification hereunder, unless the Indemnifying Party in good faith disputes the Loss, in which event it shall so notify the Indemnified Party.  In any event, the Indemnifying Party shall pay to the Indemnified Party the amount of any Loss for which it is liable hereunder, in immediately available funds, to an account specified by the Indemnified Party no later than three (3) days following any Final Determination of such Loss and the Indemnifying Party’s liability therefor. A “Final Determination” shall exist, or a claim shall be “Finally Determined”, when (a) the parties to the dispute have reached an agreement in writing, (b) a court of competent jurisdiction shall have entered a final and non-appealable Order or judgment or (c) an arbitration or like panel shall have rendered a final non-appealable determination with respect to disputes the parties have agreed to submit thereto. No Indemnified Party shall be entitled to recover from an Indemnifying Party more than once in respect of the same Loss or series of Losses.
10.7    Characterization of Indemnification Payments.  All payments made by an Indemnifying Party to an Indemnified Party in respect of any claim pursuant to Sections 10.2 or 10.3 hereof shall be treated as adjustments to the consideration paid pursuant to the transactions contemplated by this Agreement for Tax purposes.
10.8    Exclusive Remedy.  Except in the case of Fraud, if the Closing occurs, this Article X shall provide the sole and exclusive remedies arising out of or in connection with this Agreement and the transactions contemplated by this Agreement.  The Parties acknowledge and agree that the remedies available in this Article X following the Closing supersede any other remedies available at law or in equity including rights of rescission and claims arising under applicable Law. The Parties covenant not to sue, assert any arbitration claim or otherwise threaten any claim following the Closing other than those described in this Article X as being available under the particular circumstances described in this Article X.

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SC1:4515121.14

ARTICLE XI     
 
MISCELLANEOUS
11.1    Amendment; Waiver.  Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by Buyer and the Seller, or in the case of a waiver, by the Party against whom the waiver is to be effective. No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Law except as otherwise specifically provided in Article X hereof.
11.2    Expenses.  Except as otherwise provided herein, each Party will bear its respective fees and expenses incurred in connection with the preparation, negotiation, execution and performance of this Agreement and the Acquisition, including all fees and expenses of its representatives; provided that Buyer shall be responsible for (a) all Transfer Taxes (as well as the filing of all Tax Returns with respect thereto) and (b) all filing fees in connection with any filings, applications or submissions under any filings or notifications with Governmental Entities.
11.3    Counterparts.  This Agreement may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement.
11.4    GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL; SPECIFIC PERFORMANCE.
(a)    THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW RULES THEREOF THAT WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.   IN CONNECTION WITH ANY CONTROVERSY ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE PARTIES HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA. EACH OF THE PARTIES IRREVOCABLY CONSENTS TO SERVICE OF PROCESS OUT OF THE AFOREMENTIONED COURTS AND WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN THE AFOREMENTIONED COURTS AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN SUCH COURTS THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN SUCH COURTS HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

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(b)    EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE ACQUISITION. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.4.
11.5    Specific Enforcement.  The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, this being in addition to any other remedy to which such Party is entitled at law or in equity.
11.6    Notices.  Any notice, request, instruction or other document to be given hereunder by any Party to the any other Party or Parties shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, by facsimile or overnight courier:
If to Buyer:  
 

Bora Pharmaceuticals Co., Ltd.
6F., No.69, Xing’ ai Rd., Neihu Dist.,
Taipei City 114, Taiwan (R.O.C .)
 
Attention: Bobby Sheng  
fax:  +886 2 2790-6596
with a copy to: 

Bora Pharmaceuticals Co., Ltd.
6F., No.69, Xing’ ai Rd., Neihu Dist.,
Taipei City 114, Taiwan (R.O.C .)
 
Attention:  Alice Wang 
fax:  +886 2 2790-6596

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If to the Seller:
Impax Laboratories, Inc.
31047 Genstar Road
Hayward, CA 94544
Attention: General Counsel
fax: (510) 240-6096
with a copy to: 
 
Sullivan & Cromwell LLP, 
125 Broad Street
New York, NY 10004 
Attention: Francis J. Aquila 
fax:    (212) 291-9004
(212) 291-9067
or to such other Persons or addresses as may be designated in writing by the Party to receive such notice as provided above. Any notice, request, instruction or other document given as provided above shall be deemed given to the receiving Party upon actual receipt, if delivered personally, three (3) Business Days after deposit in the mail if sent by registered or certified mail, upon confirmation of successful transmission if sent by facsimile; (provided, that if given by facsimile such notice, request, instruction or other document shall be confirmed within one Business Day by dispatch pursuant to one of the other methods described herein) or on the next Business Day after deposit with an overnight courier.
11.7    Entire Agreement.  This Agreement (including any exhibits hereto), the Confidentiality Agreement, dated June 14, 2017, between Buyer and the Seller (the “Confidentiality Agreement”), the Bill of Sale, the Assignment and Assumption Agreement and the Transition Services Agreement constitute the entire agreement and supersede all other prior agreements, understandings, representations and warranties both written and oral, among the Parties, with respect to the subject matter hereof.  EACH PARTY AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, NEITHER BUYER, THE SELLER OR THE COMPANY MAKES OR RELIES ON ANY OTHER REPRESENTATIONS, WARRANTIES OR INDUCEMENTS, AND EACH HEREBY DISCLAIMS ANY OTHER REPRESENTATIONS, WARRANTIES OR INDUCEMENTS, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY OTHER INFORMATION, MADE BY, OR MADE AVAILABLE BY, ITSELF OR ANY OF ITS REPRESENTATIVES, WITH RESPECT TO, OR IN CONNECTION WITH, THE NEGOTIATION, EXECUTION OR DELIVERY OF THIS AGREEMENT OR THE CONSUMMATION OF THE ACQUISITION, NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO THE OTHER PARTY OR THE OTHER PARTY’S REPRESENTATIVES OF ANY DOCUMENTATION OR OTHER INFORMATION WITH RESPECT TO ANY ONE OR MORE OF THE FOREGOING.  No Party shall be bound by, or be liable for, any alleged representation, promise, inducement or statement of intention not contained herein.

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11.8    No Third Party Beneficiaries.  Except as provided in Article X only, the Parties hereby agree that their respective representations, warranties and covenants set forth herein are solely for the benefit of the other Party, in accordance with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the Parties any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein.
11.9    Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application of such provision to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other jurisdiction.
11.10    Assignment.  No Party may assign any of its rights or delegate any of its obligations under this Agreement, by operation of law or otherwise, without the prior written consent of the other Party, except that Buyer may assign any and all of its rights under this Agreement to one or more of its wholly-owned Subsidiaries (but no such assignment shall relieve Buyer of any of its obligations hereunder). Any purported assignment in violation of this Agreement is void.
11.11    Fulfillment of Obligations.  Any obligation of any Party to any other Party under this Agreement, which obligation is performed, satisfied or fulfilled completely by an Affiliate of such Party, shall be deemed to have been performed, satisfied or fulfilled by such Party.
[Signature Page Follows]

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

	
			
	IMPAX LABORATORIES, INC.

	 
	 
	 

	 
	 
	 

	By:
	/s/ Paul Bisaro

	 
	Name:
	Paul Bisaro

	 
	Title:
	Chief Executive Officer

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	BORA PHARMACEUTICALS CO., LTD.

	 
	 
	 

	 
	 
	 

	By:
	/s/ Bobby Sheng

	 
	Name:
	Bobby Sheng

	 
	Title:
	Chairman

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SC1:4515121.14Exhibit

EXECUTION VERSION

Exhibit 10.8

MASTER SUPPLY AGREEMENT

Between

IMPAX LABORATORIES, INC.

And

BORA PHARMACEUTICALS CO., LTD

And

IMPAX LABORATORIES (TAIWAN), INC.

For

Manufacturing and Packaging of Pharmaceutical Products

December 19, 2017

SC1:4529841.10

AGREEMENT
This Master Supply Agreement (the “Agreement”) by and between Impax Laboratories, Inc. (“Customer”), a corporation existing under the laws of Delaware, and each of Bora Pharmaceuticals Co., Ltd., a company existing under the laws of the Republic of China (“Bora”) and Impax Laboratories (Taiwan), Inc., a company existing under the laws of the Republic of China (“Impax Taiwan” and, together with Bora, the “Manufacturer”) is entered into as of the last date of the  parties’ signatures below and the terms and conditions under this Agreement are binding on the Parties upon such date; provided that, such terms and conditions shall not be in full force and effect unless and until the Closing (as defined below) and which will automatically become effective upon such Closing without any further action by Customer and Manufacturer (the “Effective Date”).
WHEREAS, Customer and Bora are party to that certain Stock and Asset Purchase Agreement (the “Purchase Agreement”) of even date herewith, pursuant to which Customer has agreed to sell all of the outstanding shares of Impax Taiwan and certain assets of Customer to Bora; 
WHEREAS, Impax Taiwan currently manufactures and packages certain pharmaceutical products for Customer; and 
WHEREAS, Customer wishes to continue to purchase certain pharmaceutical products from Manufacturer, and Manufacturer wishes to continue to manufacture and supply such pharmaceutical products for Customer, in each case after completion of the transactions contemplated by the Purchase Agreement pursuant to the terms and conditions of this Agreement;
NOW, THEREFORE, in consideration of the above and of the promises and mutual covenants, agreements, guarantees and representations contained herein and intending to be legally bound, the Parties agree as follows:

ARTICLE 1
INTERPRETATION/DEFINITIONS

The following terms shall, unless the context otherwise requires, have the following meanings, respectively:
“ANDA” means an Abbreviated New Drug Application filed by Customer with the FDA and any amendments thereto.
“Acknowledgement” shall have the meaning set forth in Section 4.2.
“Adverse Supply Event” shall have the meaning set forth in Section 4.7.

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“Affiliate” means any person or business entity which owns, directly or indirectly, a controlling interest in a Party to this Agreement, by stock ownership or otherwise; or any person or business entity which is owned by a Party to this Agreement, either directly or indirectly, by stock ownership or otherwise; or any person or business entity, the majority ownership of which is directly or indirectly common to the majority ownership of a Party to this Agreement.
“API” means the compound, as further described in the Schedule attached hereto with respect to a specific Product, that, unless the Parties agree otherwise in a Schedule with respect to a specific Product, has been released by Customer and provided to Manufacturer, along with a certificate of analysis, as provided hereafter in this Agreement.
“Batch” means one (1) production lot of a Product.
“Batch Record” means the document created as and after each Batch is processed and/or packaged that, when complete and accurate, reflects and incorporates all aspects of the Master Batch Record and/or Master Packaging Record, the Certificate of Analysis, Certificate of Manufacture, and any Manufacturing Investigation or Deviation reports issued, with respect to such Batch.
“Bulk Product” means a Product in the form of bulk capsules, tablets, caplets or blister packs, as applicable, for the relevant Product before final Packaging.
 “cGMPs” means the then-current good manufacturing practices applicable to the manufacture of pharmaceutical products for human use as promulgated in U.S. C.F.R. (Title 21, Parts 210-211) and European Community Guide to Good Manufacturing Practices.
“Certificate of Analysis” means a certificate issued by Manufacturer stating that a Batch has been Processed and/or Packaged in accordance with the Master Batch Record and/or Master Packaging Record and stating the final release results.
“Certificate of Manufacture” means a certificate issued by Manufacturer stating that a Batch has been Processed and/or Packaged in accordance with registration documents and the Master Batch Record and in conformity with cGMPs.
“Change Control” means the quality assurance process by which any change which affects a Product or its regulatory filings, including but not limited to changes in the Specifications, Process, Packaging, Raw Materials, Containers, Components, or Facility is agreed to, reviewed and approved in writing prior to implementation by both Customer and Manufacturer as specified in the Quality Agreement.
“Closing” has the meaning set forth in the Purchase Agreement.
“Components” means the materials used for Packaging the Product as identified in the Master Batch Record or Master Packaging Record.

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“Confidential Information” means a Party’s technology, data, know-how, or information whether written or oral, technical or non-technical, including, but not limited to, financial statements, reports, pricing, trade secrets, secret processes, formulae, samples, customer data (including customer lists), and the like (collectively, “Information”), that has been or will be disclosed to the other Party in connection with the negotiation of this Agreement and the other documents contemplated thereby or the consummation of the transactions contemplated thereby; provided, however, that all Information that is owned or controlled by or otherwise in the possession of Customer or Impax Taiwan prior to the Closing shall be deemed to be, and shall be treated for all purposes under this Agreement as, Information of Customer, regardless of whether such Information is, after the Closing, in the possession of Manufacturer or any of its Affiliates (including, after the Effective Date, Impax Taiwan).
“Containers” means packaging boxes and shipping containers other than Components.
“Contract Year” means a twelve (12) month period commencing on each anniversary of the Effective Date during the term of this Agreement.
“Defective Packaged Product” shall have the meaning set forth in Section 8.1.
“Defective Product” shall have the meaning set forth in Section 8.1.
“Directions for Testing” means the quality control analytical methods used for testing of a Product and the Raw Materials, Components and Containers with respect thereto.
“Equipment” means any and all of the equipment used in the Processing and/or Packaging and testing of the Product, whether such equipment is the property of Manufacturer or Customer.
“Existing Inventory” means the Bulk Product, Raw Materials, Work-In-Process, Components, Containers, Labeling, and Intermediate Products that are in the possession of the Company as of the Effective Date, which shall be mutually agreed by the Parties on the basis of the levels of Bulk Product, Raw Materials, Work-In-Process, Components, Containers, Labeling, and Intermediate Products set forth in the Estimated Closing Date Balance Sheet and thereafter revised to reflect the Final Closing Date Balance Sheet or as otherwise finally determined pursuant to Section 2.4(b) of the Purchase Agreement, which Attachment C shall (a) identify each Intermediate Product by type, quantity and per unit cost to Manufacturer and (b) if applicable, the date by which such Existing Inventory must be incorporated into a relevant Product in order for Manufacture to satisfy the shelf-life requirements set forth in Section 5.5.    
 “Facility” means Impax Taiwan’s manufacturing and packaging facility located at No. 1, Kedong 3rd Road, Jhunan Science Park, Jhunan, Miaoli County, 35053, Taiwan.
“FDA” means the United States Food and Drug Administration or any successor organization thereto.

3

SC1:4529841.10

“FFDCA” means the United States Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §§ 301 et seq., as amended.
“Finished Product” means a Product at the completion of Processing and/or Packaging into the final form with respect to such Product to be delivered by Manufacturer.
1.1.1    “Firm Commitment” shall have the meaning set forth in Section 4.1.

“Intermediate Product” means a material supplied by Customer to Manufacturer for further Processing and/or Packaging of a Product, which Intermediate Product shall be set forth on the Schedule, attached hereto, with respect to the applicable Product.
“Labeling” means all printed labeling, including but not limited to, labels, package inserts and cartons, for a Product.
“Latent Defect” means a defect in the Product that existed at or prior to delivery attributable to Manufacturer Defective Processing or Manufacturer Defective Packaging that occurred while Product was under the sole control and possession of Manufacturer, and which was not discoverable upon inspection by Customer in accordance with its internal procedures.
“Lot Number” means the unique number applied to a Batch of a Product by Customer and/or Manufacturer; provided, however, that all Batches with respect to a Product shall reference the Customer number with respect to such Product.
“Manufacturing Cost” means, with respect to a Product that is Processed and/or Packaged and analyzed for quality control, release and stability testing by or on behalf of Manufacturer and supplied to Customer hereunder, the costs incurred by Manufacturer or its Affiliate that are [****], consisting of: (a) costs of [****] used in the manufacturing of the relevant Product; (b) [****]; (c) costs of [****], including costs for [****]; (d) [****]; (e) [****]; (f) costs of [****]; (g) [****]; and (h) [****].  All of the foregoing listed costs shall be included in the Manufacturing Cost [****].  Notwithstanding the foregoing, Manufacturing Cost shall not include any (i) [****], (ii) [****], (iii) [****], (iv) [****], (v) [****], or (vii) [****].  The Manufacturing Cost shall be computed by Manufacturer and its Affiliates in accordance with US generally accepted accounting principles.  
“Manufacturing Investigation or Deviation Report” means a report by Manufacturer indicating any deviation from the Processing and/or Packaging procedures with respect to a Product as set forth in the Quality Agreement with respect to such Product. 
“Manufacturer Defective Packaging” shall have the meaning set forth in Section 8.1.
“Manufacturer Defective Processing” shall have the meaning set forth in Section 8.1.
“Master Batch Record” means the document containing the formula (listing API and/or Intermediate Product and Raw Materials), procedures for the Processing, quality control and assurance of a specific Product, and in-process and finished Specifications for such 

4

SC1:4529841.10

Product as set forth in the applicable Schedule with respect to such Product, and reviewed and approved by both Manufacturer and Customer Quality Assurance.
1.1.2    “Master Packaging Record” means the document containing a specific Product description (listing Intermediate Product, Components, Containers and Labeling), procedures for the Packaging, quality control and assurance of the Product, and in-process and finished Specifications for such Product as set forth in the applicable Schedule with respect to such 

Product; and reviewed and approved by both Manufacturer and Customer quality assurance groups.
“NDA” means any New Drug Application filed by Customer with the FDA and any amendments thereto.
“Package and/or Packaging” means the act of inspecting, filling a specific Product into Components, placing the Labeling on and with such Product, and final packing of such Product into Containers in accordance with the applicable Master Packaging Record or the registration or Validation protocol, in each case with respect to such Product.
“Party and/or Parties” means any or all of Customer, Bora and/or Impax Taiwan.
“Pharmacovigilance Agreement” has the meaning set forth in Section 7.9.
“Process and/or Processing” means the pharmaceutical manufacturing procedures, or any part thereof, involved in manufacturing a specific Product from the API and/or Intermediate Product and Raw Materials, in each case with respect to such specific Product, in accordance with the applicable Master Batch Record or registration or Validation protocol, in each case with respect to such Product.
“Product” means a pharmaceutical product that Customer desires to have Processed and Packaged pursuant to this Agreement and which is described in an applicable Schedule attached hereto.
“Product Change Control Request” means a form filled out and submitted by one Party to the other Party for the purposes of proposing making any change to an approved process or equipment used to Process and/or Package a specific Product.  Each Party shall submit to the other Party using its own respective Product Change Control Request form for the use of Processing and/or Packaging changes or changes to the Master Batch Record or Master Packaging Records.  All such Product Change Control Requests shall go through proper procedures as described in each Party’s internal operating procedures prior to implementation.
“Product Specifications” means the applicable Specifications with respect to a specific Product.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

“Production Fees” means the amounts charged by Manufacturer for its services as detailed on the applicable Schedule, attached hereto, with respect to a specific Product.
“Product Maintenance Services” has the meaning set forth in Section 2.11.
“Purchase Agreement” has the meaning set forth in the Recitals.
“Purchase Order” means the firm, written orders for Processing and/or Packaging of a specific Product submitted by Customer to Manufacturer pursuant to Section 4.2. 
“Quality Agreement” means the master quality document agreed to pursuant to Section 7.1, between Customer and the Manufacturer quality assurance groups outlining the operational responsibilities of each group in regards to the Product(s) and the Processing and/or Packaging of such Product(s) in Manufacturer’s Facility.  For the avoidance of doubt, if required there will be a Product-specific addendum attached to the Quality Agreement with respect to each specific Product prior to the initiation of Processing of such Product hereunder.
“Raw Materials” means the excipients other than the API and/or Intermediate Product necessary for Processing a specific Product, as listed in the Master Batch Record with respect to such Product.
“Regulatory Authorities” means the FDA, European Union and Taiwanese (including the Taiwanese Food and Drug Administration) regulatory agencies having the authority to approve and/or control the right to manufacture, import, conduct clinical testing, market or sell a Product.
“Review Period” shall have the meaning set forth in Section 8.1.
“Rolling Forecast” shall have the meaning set forth in Section 4.1.
“Schedules” mean the schedules, in the form set forth in Attachment A (Form of Product Schedule)  hereto, each such schedule (Product Schedule 1, Product Schedule 2, etc.) attached hereto and incorporated herein by reference each of which shall relate to a specific Product hereunder and which shall contain the following information with respect to such Product (each, a “Product Schedule”):
(i)    Specifications for the Processing and Packaging of such Product;
(ii)   API, Intermediate Product, Raw Materials, Components, Labeling, and Containers, and specifications with respect thereto, in each case for the Processing and Packaging of the applicable Product;
(iii)  Production Fees and Unit Cost; and
(iv)  any other unique information or requirements agreed between the Parties with respect to such Product.

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“SDS” means the material Safety Data Sheets for the API for a specific Product and a Finished Product.
“Shortfall” shall have the meaning set forth in Section 4.6.
“Specifications” means the API and/or Intermediate Product, Raw Material, Components, Labeling, and Containers specifications and the in-process and Finished Product specifications for testing and release and stability as approved by Customer and Regulatory Authorities for the Products set forth on the Schedules attached hereto.
“Territory” means the United States of America and its territories, protectorates and possessions.
“Unit Cost” means the cost charged by Manufacturer per unit of a specific Product as detailed on the applicable Schedule attached hereto.
“Validation” means all installation qualification (IQ), operational qualification (OQ), performance under load qualification (PQ), cleaning validation, and method validation procedures for the Facility, Equipment, Processing and/or Packaging processes, and analytical testing methods for quality control and cleaning that may affect a specific Product.
“Work-In-Process” means the API and/or Intermediate Product and Raw Materials, or Bulk Product and Components, Labeling and Containers, with respect to a Batch of a specific Product during the time period beginning at the time Manufacturer begins work in accordance with the Master Batch Record or Master Packaging Record with respect to such Product and ending upon completion of the Processing and Packaging of a Finished Product in accordance with this Agreement.
ARTICLE 2
PROCESSING/PACKAGING ARRANGEMENT

2.1    Scope of Work.  
(a)  Manufacturer shall Process, Package and/or, as the Parties agree in writing, store, and shall analyze for quality control, release and stability testing, each Product in accordance with the Specifications contained in the Master Batch Record, the Master Packaging Record and the Directions for Testing as listed in the applicable Schedule, attached hereto, with respect to such Product and deliver such Product in accordance with  the terms and conditions of this Agreement and Manufacturer shall perform these services for Customer at the Production Fees and Unit Costs listed in the applicable Schedule attached hereto with respect to such Product (such Production Fees and Unit Costs being subject to adjustment in accordance with the terms hereof).
(b)  Manufacturer shall Process each Product in accordance with the Specifications, applicable laws and the terms and conditions of this Agreement.  During the Term, Customer and its Affiliates shall purchase exclusively from Manufacturer all of 

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Customer’s and its Affiliates’ requirements of Product in the Territory; provided, however, that pursuant to the terms of Section 4.6 and Section 4.7 and for the time period described therein, upon the occurrence of a Shortfall or an Adverse Supply Event, Customer may purchase its requirements for the Products affected by the Shortfall or Adverse Supply Event from any one or more third persons or produce the Product itself.  
1.2    2.2    Lot Numbering/Expiration Dates.  With respect to Packaging specific Product, Manufacturer shall make arrangements for and implement the imprinting of Lot Numbers and expiration dates on, as applicable, the packaging of each Product shipped.  Such Lot Numbers and expirations dates shall be affixed on the Product packaging and on the shipping carton of each product as is required by cGMPs and consistent with the Specifications.  Electronic on-line verification of the Lot Number/ Expiration date and serialization will be performed by 

Manufacturer.  If Manufacturer places an internal Lot Number on a Product package and/or shipping carton that is different from the Customer Lot Number referenced in the Purchase Order for that Batch of Product, Manufacturer shall provide a cross-reference for the Customer Lot Number on all documents associated with the Batch of Product.
2.3    Product Identifier and Serial Numbering.  If applicable, Manufacturer shall make arrangements for the imprinting of the product identifier, i.e., global trade identification number (GTIN) and serial number on the packaging of each Product shipped.  Such product identifier and serial number shall be affixed on the product packaging and on the shipping carton of each product as required by cGMPs and consistent with the Specifications. Electronic on-line verification of the product identifier and serial number will be performed by Manufacturer.  
2.4    Data Carrier Printing and Encoding.  If applicable, Manufacturer shall make arrangements for the imprinting of the data carrier, i.e., 2D Data Matrix or barcode, on the packaging of each Product shipped.  Such data carrier shall encode the Lot Number, expiration date, product identifier and serial number.  Such data carriers shall be affixed on the product packaging and on the shipping carton of each Product as required by cGMPs and consistent with the Specifications.  Electronic on-line verification of the data carrier will be performed by Manufacturer.
2.5    Sub-Contracting.  Manufacturer shall not without prior written approval of Customer sub-contract any part of its obligations or responsibilities under this Agreement to a third party.  For the avoidance of doubt, for purposes of this Section 2.5, Manufacturer’s Affiliates shall not be third parties.
2.6    Product Change Control Requests.  Any proposed change to the Master Batch Record, Master Packaging Record or Specifications with respect to a Product must be approved by each of Customer and Manufacturer through the issuance and acceptance of a Product Change Control Request.  All changes thereto agreed to by the Parties from time to time shall be in writing, dated and signed by the Parties.  No change in the Product Change Control Request shall be implemented by Manufacturer, whether requested by Customer or 

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requested or required by any Regulatory Authority, until the Parties have agreed in writing to such change, the implementation date of such change, and any increase or decrease in costs, expenses or fees associated with such change (including any change to Unit Cost).  Manufacturer shall respond promptly to any Product Change Control Request made by Customer (and in any event no later than [****] business days within receipt of any such request), and both Parties shall use commercially reasonable efforts to agree to the terms of such requested change in a timely manner.  As soon as practicable after a Product Change Control Request is made, Manufacturer shall notify Customer of the costs associated with such Product Change Control Request and shall provide such supporting documentation as Customer may reasonably request.  Any costs associated with such Product Change Control Request shall be borne by Customer, except where such change is specific to the Facility and not related to any Product, in which case such costs shall be borne by Manufacturer.  If there is a conflict between the terms of this Agreement and the terms of the Product Change Control Request, this Agreement shall control. Manufacturer reserves the right to postpone effecting changes until such time as the Parties agree to and execute the required written amendment.  No revisions to the Specifications that would affect the Processing and/or Packaging of a Product shall be submitted to any Regulatory Authorities unless approved by all Parties in writing.  It is understood by all Parties that changes mandated by Regulatory Authorities shall be acted upon with due diligence and at Customer’s expense.
2.7    Changes and Modifications to Facility or Equipment by Manufacturer.
(a)    Change in Location.  Manufacturer shall not change the Facility at which it Processes and/or Packages a Product.  Manufacturer shall not move the physical location within its Facility for Processing, testing and/or Packaging the Product without obtaining Customer’s prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed.  If any changes are proposed by Manufacturer and agreed to by Customer in writing in regard to movement of Processing and/or Packaging within Manufacturer’s Facility, responsibility for the costs of any Validation activities required in connection with such change will be discussed among and agreed to by the Parties.
(b)    Modifications to Facility.  Manufacturer shall notify Customer in writing at least [****] calendar days prior to any planned modifications to parts of the Facility used for Processing, Packaging or storage of the Product if such modifications will materially affect a Product.  In the event of such planned modifications of the Facility, Manufacturer shall use commercially reasonable efforts to accommodate Customer’s requirements for Product by compiling Product inventory and bridge stock of Product for such period of Facility modifications.
2.8    On Time Delivery. Matrices for Manufacturer performance for on time delivery for each Product will be developed and maintained by the Parties. The Parties shall review such matrices quarterly to maintain terms that are acceptable to both Parties throughout the term of this Agreement.  In the event that Manufacturer delivers Product more than [****] days after the mutually agreed delivery date for such Product on [****], then the Parties shall 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

meet to discuss steps to address such late deliveries and shall jointly develop an action plan with respect thereto.
2.9    No Volume Guarantee.  Except for Manufacturer’s Firm Commitments (as defined in Section 4.1) and subject to Customer’s compliance with Section 2.1, Manufacturer acknowledges that Customer is not guaranteeing any volume of Product will be ordered by Customer. 
2.10    Product Maintenance Services.  Customer will receive the product maintenance services set out in Attachment B (the “Product Maintenance Services”) at no additional charge to Customer.

ARTICLE 3
RAW MATERIALS, API, COMPONENTS, CONTAINERS AND LABELING

3.1    Supply.  
(a)  API.  
(i) In Processing and/or Packaging Products, Manufacturer will use its commercially reasonable efforts to utilize the Existing Inventory before utilizing other Raw Materials, Containers, Components and Intermediate Product.  With respect to any Intermediate Product that is not included in the Existing Inventory, and upon full utilization of the Existing Inventory, in each case unless the Parties agree otherwise with respect to a specific Product as set forth in the applicable Product Schedule, Customer shall supply to Manufacturer for Processing, at Customer’s sole cost and risk, API and Intermediate Product, and any other Customer-supplied materials, in quantities sufficient to meet Customer’s requirements for a specific Product as set forth in the applicable Schedule with respect to such Product.  Customer shall deliver such items with respect to the applicable Product, together with associated certificates of analysis, to the Facility no later than [****] calendar days before, but not earlier than [****] calendar days before, the date upon which the Parties agree pursuant to Section 4.2 that delivery with respect to such Product will occur.  Customer shall be responsible at its expense for securing any necessary export or import clearances or permits required in respect of supply to Manufacturer of such items.  Manufacturer shall use such items solely and exclusively for Processing such Product pursuant to the terms of this Agreement.  Prior to Effective Date, for each item of Existing Inventory, Customer shall provide to Manufacturer (if not then in Manufacturer’s possession) a copy of all associated SDS, safe handling instructions, storage requirements and conditions and health and environmental information, and shall promptly provide any updates or revisions thereto.  After the Effective Date, prior to delivery of any API and Intermediate Product by Customer, Customer shall provide to Manufacturer a copy of all associated SDS, safe handling instructions, storage requirements and conditions and health and environmental information, and shall promptly provide any updates or revisions thereto.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

(ii)  Within [****] calendar days of receipt by Manufacturer of API, Intermediate Products or any other Customer-supplied materials, Manufacturer shall inspect such items to verify their identity.  Manufacturer shall follow the current site level standard operating procedures to receive, test, and release articles per annual testing and reduced testing requirements.  Unless otherwise expressly required by the Specifications as set forth in the Schedule with respect to the applicable Product, Manufacturer shall have no obligation to test such items to confirm that they meet the associated specifications or certificate of analysis or otherwise; but in the event that Manufacturer detects a nonconformity with such specifications, Manufacturer shall give Customer prompt oral and written notice of such nonconformity.  Manufacturer shall not be liable for any defects in API, Intermediate Products or any other Customer-supplied materials, or in the applicable Product to the extent any defect is attributable to defective API, Intermediate Product or any other Customer-supplied Materials, unless Manufacturer failed to properly perform the foregoing obligations.  Manufacturer shall follow Customer’s reasonable written instructions in respect of return or disposal of defective API, Intermediate Product or any other Customer-supplied materials, at Customer’s sole cost and risk.
(iii)  Customer shall retain title to API, Intermediate Product and any other Customer-supplied materials at all times and, subject to Section 3.4, shall bear the risk of loss thereof. 
(iv)  If Manufacturer notifies in writing Customer of a discrepancy in the quantity, appearance or identity of the API and/or Intermediate Product within the [****] business day period after Manufacturer receives such materials, Customer shall endeavor in good faith to ship additional API and/or Intermediate Product within the time period necessary for Manufacturer to Process and/or Package the Product in accordance with the scheduled Processing date in accordance with the applicable Purchase Order.  If Manufacturer informs Customer of any discrepancies in the quantity, appearance or identity of the API and/or Intermediate Product after such [****] business day period, then Customer shall endeavor to supply the Manufacturer with additional API and/or Intermediate Product sufficient to Process and/or Package the scheduled Product in accordance with the applicable Purchase Order.  Manufacturer reserves the right to cancel or delay the delivery of all, or any part of, a Purchase Order upon written notice to Customer, and Manufacturer shall have no further obligations or liability with respect to such Purchase Order, if Customer refuses or fails to timely supply conforming API, Intermediate Product, or any other Customer-supplied materials in accordance with this Section 3.1.  Any such cancellation of Purchase Orders or delay in delivery shall not constitute a breach of this Agreement by Manufacturer.
1.3        (b)  Raw Materials, Components, Containers.  Manufacturer shall be responsible for procuring, inspecting and releasing adequate Raw Materials, Components and Containers from the manufacturer or vendor (“Supplier”) specified in the Product Specifications as necessary to meet the Firm Commitment, unless otherwise agreed to by the Parties in writing.  Manufacturer shall be responsible for audits of any Suppliers; provided that, if any on-site audit of a Supplier is necessary, Customer shall reimburse Manufacturer for all costs and expenses incurred by Manufacturer for such on-site audit. Customer shall pay 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

Manufacturer at its then prevailing hourly rate charged by Manufacturer for such on-site audit for each hour spent, and reimburse Manufacturer for all reasonable, actual and documented expenses incurred in, conducting such on-site audit.  Manufacturer shall not be liable for any delay in delivery of the applicable Product if (A) Manufacturer is unable to obtain, in a timely manner, a particular Raw Material or Component necessary for Processing or Packaging due to reasons beyond its reasonable control and (B) Manufacturer placed orders for such Raw Materials, Components and Containers promptly following receipt of Customer’s Firm Commitment.  In the event that any Raw Materials, Components or Containers become subject to purchase lead time beyond the Firm Commitment time frame, the Parties will negotiate in good faith an appropriate amendment to this Agreement.  Manufacturer shall not be liable for any defects in Raw Materials, Components or Containers or in Packaging or Product as a result of such defective Raw Materials, Components or Containers from such Supplier, unless Manufacturer failed to properly perform any testing required by the Product Specifications set forth in the Schedule attached hereto with respect to the specific Product.

3.2    Cost.  The cost of the above Raw Materials, Components and Containers and testing of such shall be included in the Production Fees/Unit Cost as set forth in the applicable Schedule for a specific Product; provided, however, that Customer shall be responsible for the cost of supplying (but not any testing that is performed by Manufacturer in accordance with its standard operating procedures) all API, Intermediate Product or any other Customer-supplied materials. 
3.3    Artwork and Labeling.  Customer shall be responsible for supplying Manufacturer with a copy of all artwork and Labeling with respect to a Product and for ensuring that the copy for artwork and Labeling conforms to all applicable laws, rules, regulations, and requirements of all appropriate Regulatory Authorities.  Such artwork and Labeling is and shall remain the exclusive property of Customer.  Customer shall be solely responsible for the content thereof.  Manufacturer shall be responsible for ordering and paying for sufficient quantities of artwork and Labeling as required by the applicable Firm Commitment; provided that, Customer will reimburse Manufacturer for costs or expenses incurred for any artwork changes requested by Customer.  Customer shall review and approve proofs for artwork and Labeling.  The artwork and Labeling shall be shipped directly from the vendor to Manufacturer.  Manufacturer shall store the artwork and Labeling as required by any relevant laws or regulations and shall place the artwork and Labeling on and with the applicable Product as specified by Customer.  Such artwork and Labeling or any reproduction thereof may not be used by Manufacturer in any manner other than performing its obligations hereunder.
(a) Manufacturer’s Name.  Manufacturer’s name shall not appear on the Labeling nor anywhere else on the Product unless required by a Regulatory Authority, governmental agency or other applicable laws or regulations.
(b) Labeling Changes.  Upon reasonable prior written notice to Manufacturer, Customer may, in its sole discretion, make changes to labels, product inserts and other 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

Labeling for the Product, which changes shall be submitted by Customer to all applicable Regulatory Authorities responsible for the approval of the Product, if required.
3.4    Other Damage or Loss.  Except for any damage or loss resulting from fire (other than one caused by the negligence of Manufacturer), flood, tornado, earthquake, or other act of God beyond Manufacturer’s ability to control or to the extent caused by Customer’s gross negligence or willful misconduct, subject to the limitation of liability set forth in Section 14.4, Manufacturer shall assume all responsibility and liability for any loss of or damage to the API and/or Intermediate Product while Manufacturer has custody and control over the API and/or Intermediate Product, Work-In-Process, Bulk Product and/or Finished Product.  Such responsibility and liability shall commence upon the receipt of the API and/or Intermediate Product at the Facility and end upon the delivery of the Product to Customer.  Manufacturer shall insure itself for this potential loss pursuant to Section 17.  
1.4    3.5     Repurchase of Existing Inventory.  If, despite compliance by Manufacturer with its obligations under Section 3.1(a)(i) and the other provisions of this Agreement, any of the Existing Inventory becomes unusable in the Processing and Packaging of Products as reasonably determined by Manufacturer, then Manufacturer may deliver to Customer a notice to that effect 

identifying the relevant Existing Inventory.  Customer shall within [****] calendar days after delivery of such notice purchase such Existing Inventory at the rates set forth on Attachment C and either take delivery of such Exiting Inventory or request Manufacturer to arrange for the destruction of such Existing Inventory (in each case at the sole cost and expense of Customer).
ARTICLE 4
FORECASTS AND ORDERS

4.1    Forecasts.  On or before the [****] calendar day of each month of each Contract Year, Customer shall provide Manufacturer with a written [****] rolling forecast of the volume of each Product that Customer anticipates will be required to be Processed, Packaged and delivered to Customer during each of the [****] (the “Rolling Forecast”). Such Rolling Forecast shall include detailed ordering requirements for each of Processing and Packaging. With respect to Packaging, Customer shall provide detailed instructions as to the packaging configuration and requested delivery date for packaged Product. The first [****] of such Rolling Forecast shall constitute a binding order for the quantities of Product specified therein (“Firm Commitment”) and the following [****] of the Rolling Forecast shall be non-binding, good faith estimates.
4.2    Purchase Orders.  From time to time as provided in this Section 4.2, Customer shall submit to Manufacturer a binding, non-cancelable purchase order for each Product specifying the number of Batches to be Processed and Packaged, the Batch size (to the extent the Product Specifications permit Batches of different sizes) and the requested delivery date for each Batch (“Purchase Order”). Concurrently with the submission of each Rolling Forecast, Customer shall submit a Purchase Order for the [****] of the then applicable Firm Commitment.  Within [****] calendar days following receipt of a Purchase Order, Manufacturer shall issue a 

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written acknowledgement (“Acknowledgement”) that it accepts or rejects such Purchase Order.  Each acceptance Acknowledgement shall either confirm the delivery date set forth in the Purchase Order or set forth a reasonable alternative delivery date.  Manufacturer may only reject Purchase Orders pursuant to Section 3.1(a)(iv) for [****] or for the failure of such Purchase Order to comply with the provisions of this Agreement, including if such Purchase Order exceeds the forecast for the applicable Firm Commitment for a Product by more than [****] pursuant to Section 4.3. In the event that a Purchase Order is so rejected, Manufacturer shall provide to Customer the reasons for rejection in writing and Manufacturer and Customer will cooperate in good faith to promptly resolve any supply issues raised by such order. If a rejected Purchase Order is so resolved, Manufacturer shall use commercially reasonable efforts to timely supply any Products in accordance with the resolution of such rejected Purchase Order. Customer and Manufacturer agree that the Parties shall cooperate in good faith in order to develop a mutually acceptable method to maintain an appropriate safety stock for long lead time items (i.e., items with a lead time longer than [****] calendar days).
4.3    Permitted Amount to be Ordered.  The minimum size of any Purchase Order for a Product shall be the number of Batches that the Parties have agreed upon in the Product Schedules with respect to such Product.  The maximum quantities ordered will be no more than [****] in excess of the forecast for the applicable Firm Commitment for a Product.  Manufacturer shall use its commercially reasonable efforts, but shall be under no obligation, to supply Product more than [****] in excess of the applicable Firm Commitment.   
4.4    Customer’s Modification or Cancellation of Purchase Orders.  Customer may modify the delivery date or quantity of a Product in a Purchase Order only by submitting a written change order to Manufacturer at least [****] calendar days in advance of the agreed delivery date with respect to such Product, covered by such change order.  Such change order shall be effective and binding against Manufacturer only upon the written approval of Manufacturer.  Manufacturer shall make commercially reasonable efforts to accommodate any changes to Purchase Orders requested by Customer, but if Manufacturer is unable to accommodate such changes, Customer shall remain responsible for any approved Purchase Orders.
4.5    Reliance by Manufacturer.  Customer understands and acknowledges that Manufacturer will rely upon the Purchase Orders submitted pursuant to Section 4.2 in ordering Raw Materials, Containers, Components and Labeling required to meet such orders.  In addition, Customer understands that to ensure an orderly supply of such Raw Materials, Containers, Components and Labeling and to achieve economies of scale in the costs therefore, it may be desirable for Manufacturer to purchase such Raw Materials, Containers, Components and Labeling in sufficient volumes to meet the production requirements for the Product during part or all of the forecasted periods referred to in Section 4.1 or to meet the production requirements of any longer forecasted period as Manufacturer and Customer may agree to.  Accordingly Customer agrees that purchases may be made by Manufacturer in respect of the Raw Materials, Containers, Components and Labeling identified in the applicable Product Schedule to satisfy the production requirements for the Product for such forecasted periods as may be agreed to in writing from time to time by Customer (such 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

agreement not to be unreasonably withheld, delayed or conditioned) at the request of Manufacturer.  In such circumstances, if such Raw Materials, Containers, Components and Labeling are not included in the Finished Product purchased by Customer within [****] after the forecast in respect of which such purchases have been made (or such longer period as the Parties may have agreed to), Customer will pay to Manufacturer its reasonable and documented out-of-pocket costs thereof and, in the event such Raw Materials, Containers, Components and Labeling are incorporated into the Product subsequently purchased by Customer, Customer will receive credit for any such costs previously paid to Manufacturer by Customer.
4.6    Shortfalls.  On a Product-by-Product basis, if there is a Shortfall, Customer may do one or more of the following: (a) cancel the quantity of Product subject to the Shortfall (rounded up to the nearest Batch) from the applicable Purchase Order accepted by Manufacturer without further obligation regarding the cancelled Purchase Order, including any payment obligations; or (b) obtain the quantity of Product subject to the Shortfall from any one or more third persons or produce the Product itself until up to [****] after Manufacturer resumes supply of such Product in such quantities ordered under firm Purchase Orders in accordance with this Agreement. Each of the following circumstances is a “Shortfall”: (i) in any [****] calendar month period, Manufacturer fails to timely deliver at least [****] of a Product ordered under firm Purchase Orders and Manufacturer is unable to fulfill such Shortfall in the subsequent [****] month period; and (ii) in any [****], Manufacturer fails to timely deliver at least [****] of a Product ordered under Purchase Orders accepted by Manufacturer; provided that, the circumstances set forth in (i) and (ii) shall not be considered a Shortfall if the cause of such circumstances is attributable to the acts or omissions of Customer.  Customer’s obligations to purchase such Product in the applicable Firm Commitment period under this Agreement [****]. Customer’s rights under this Section 4.6 are in addition to any other rights or remedies of Customer available under applicable law.  For purposes of this Section 4.6, Products shall be considered timely delivered if such Products are delivered to Customer pursuant to Section 5.2 within [****] calendar days of the agreed upon delivery date for such Products set forth in the Acknowledgement corresponding to the applicable Purchase Order for such Products (or such later date as may be applicable under Section 3.1(a)(v)).
4.7    Adverse Supply Events.  On a Product-by-Product basis, if there is an Adverse Supply Event that Manufacturer does not or cannot remediate so that Processing and delivery of such Product continues or can resume within [****] calendar days after the occurrence of the Adverse Supply Event, Customer may cancel some or all of the affected outstanding Purchase Orders and forecasts and obtain all of its requirements for such Product affected by the Adverse Supply Event from any one or more third persons or produce such Product itself [****] after Manufacturer resumes supply of such Product in accordance with this Agreement unless the cause of such Adverse Supply Event is attributable to the actions or omissions of Customer.  Each of the following circumstances is an “Adverse Supply Event”: (a) [****]; (b) [****]; (c) [****]; (d) [****]; and (e) [****]. Even if Customer exercises any of its rights under this Section 4.7, Manufacturer shall use commercially reasonable efforts to resume Processing of the Products after any Adverse Supply Event.  [****] months after Manufacturer 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

resumes supply of such Product in accordance with this Agreement, Manufacturer shall fulfill Purchase Orders and Customer shall no longer procure quantities of such Product from any third person or produce such Product itself.

ARTICLE 5
DELIVERY AND PAYMENT TERMS

5.1    Storage.  If Customer fails to take delivery of any Product on any scheduled delivery date, Manufacturer shall store such Product as Customer’s agent, and Customer shall be invoiced on the first day of each month following such scheduled delivery for reasonable administration and storage costs. For each such Batch of stored Product, Customer agrees that: (A) Customer has made a fixed commitment to purchase such Product, (B) title and risk of loss for such Product passes to Customer upon the scheduled delivery date (of if no delivery date is determined, within [****] after billing), (C) such Product shall be on a bill and hold basis for legitimate business purposes, (D) if no delivery date is determined at the time of billing, Manufacturer shall have the right to ship such Product to Customer within [****] after billing, and (E) Customer will be responsible for any decrease in market value of such Product that relates to factors and circumstances outside of Manufacturer’s control.  Within [****] business days following a written request from Manufacturer, Customer shall provide Manufacturer with a letter confirming items (A) through (E) of this Section for each Batch of stored Product.  
5.2     Delivery.  Manufacturer shall tender Product for delivery [****] the Facility promptly following Manufacturer’s release of Product as applicable.  Manufacturer shall segregate and store all Product until tender of delivery.  Each shipment of a Batch of Product shall include a copy of the Certificate of Analysis for that Batch.  Title and all costs and risk of loss associated with shipment of the Product shall pass to Customer upon delivery to the applicable carrier.  Customer shall qualify at least [****] carriers to ship Product and then designate the priority of such qualified carriers to Manufacturer.  The shipping labels for each shipment shall contain information as specified in writing by Customer and be delivered to Manufacturer reasonably in advance of the date of production or supply, as applicable.  
5.3    Invoices.  Except as otherwise provided in this Agreement, including without limitation amounts owed by Customer pursuant to Section 4.4 hereof, Manufacturer shall issue an invoice Customer for the fees applicable to the Batch, upon receipt of Purchase Order, which shall be based on the fees set forth in the applicable Purchase Order and in accordance with the applicable Product Schedule.  Each such invoice shall, to the extent applicable, identify the Purchase Order number, Product name, quantity and Lot Number, Unit Price, and the total amount to be remitted by Customer.  Customer shall pay all such invoices within [****] calendar days following the date of invoice by check or electronic funds transmission in United States dollars as specified in any invoice, without any offset or deduction of any nature whatsoever.  
5.4    Taxes.  All taxes, duties and other amounts assessed (excluding tax based on net income and franchise taxes) on services, components, or Product prior to or upon provision or 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

sale to Manufacturer or Customer, as the case may be, and on any other Customer-supplied materials, are the responsibility of Customer, and Customer shall reimburse Manufacturer for all such taxes, duties or other documented assessed amounts paid by Manufacturer or such sums will be added to invoices directed at Customer, where applicable.  
5.5    Shelf Life at Delivery.  All Product delivered to Customer shall upon delivery have at least [****] of its respective remaining shelf-life, unless otherwise specified in the Schedules.  
ARTICLE 6
PRICING 

6.1    Unit Pricing.  Customer shall pay Manufacturer the unit pricing for a Product set forth on the applicable Product Schedule attached hereto (“Unit Cost”).  Such fees shall be paid as set forth in Section 5.3.  Customer shall pay Manufacturer for all other reasonable and documented fees and expenses of Manufacturer owing in accordance with the terms of this Agreement, including payments to Regulatory Authorities, and assistance with regulatory matters, as set forth in Section 7.5.  Such fees and expenses shall be paid within thirty (30) calendar days following date of invoice, which invoice shall be submitted to Customer by Manufacturer as and when appropriate.
6.2    Adjustments to Pricing.  The Unit Cost for a specific Product shall be adjusted on an annual basis, effective on January 1st of each Contract Year, upon [****] calendar days’ written notice from Manufacturer to Customer.  Such increase shall not be more than [****].  Any price increases for [****] shall be passed through to Customer.  At Customer’s request, Manufacturer will provide sufficient documentation to support the price increases related to [****].  If Manufacturer does not provide sufficient documentation to support the price increases related to the [****] within [****] business days after Customer’s request, such price increase with respect to [****] will not be effective. As set forth in the applicable Product Schedule, Unit Costs have been calculated on the basis of estimated volumes negotiated by the Parties in good faith.  If at the end of the [****] Contract Year, the Customer’s Firm Commitment [****]. 
ARTICLE 7
QUALITY ASSURANCE; REGULATORY MATTERS

7.1    Quality Agreement.  Prior to the Effective Date, the Parties shall negotiate in good faith and enter into a Quality Agreement.  The Quality Agreement shall be used by both Parties to assign the day-to-day responsibilities and manage the operations of both the Customer and the Manufacturer quality assurance groups in regards to the Processing and Packaging of this Product by Manufacturer for Customer.  The Quality Agreement will cover roles and responsibilities for both Customer and Manufacturer for subjects including, but not limited to, Master Batch Records and/or Master Packaging Records, Manufacturing Investigation or Deviation Reports, Validation activities, Batch release, and Equipment qualification.  The Quality Agreement shall in no way determine liability or financial 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

responsibility of the Parties for the responsibilities set forth therein.  In the event of a conflict between any of the provisions of this Agreement and the Quality Agreement with respect to quality-related activities, including compliance with cGMP, the provisions of the Quality Agreement shall govern.  In the event of a conflict between any of the provisions of this Agreement and the Quality Agreement with respect to any commercial matters, including allocation of risk, liability and financial responsibility, the provisions of this Agreement shall govern.
7.2    Manufacturer Responsibility.  Manufacturer shall be responsible to ensure that its Processing and Packaging, the Facility, Manufacturer’s Equipment and systems meet regulatory requirements for cGMPs for the United States of America, the European Union and Taiwan, Republic of China.  Manufacturer shall be responsible for Validation of its Facility, Manufacturer’s Equipment, Processing and Packaging processes and the costs of such Validation shall be absorbed by Manufacturer and/or agreed to in writing by Customer.  Customer shall be responsible for all costs related to the Validation of Customer’s Equipment and any testing methods that apply solely to any Products.  In addition, Manufacturer shall be responsible for all necessary education and training of its employees in regards to the Facility, Equipment, Processing and Packaging, and testing methods that apply to each specific Product.  The costs of such education and training will be absorbed by Manufacturer.  Subject to Section 5.1, Manufacturer shall be responsible for storage of all API and/or Intermediate Product, Raw Materials, Containers, Components and Labeling, and Processing and Packaging, holding, release testing and storage of the Product in accordance with (a) Manufacturer’s internal systems and standard operating procedures relating to quality assurance in its manufacturing operations, and (b) the specific Product Specifications.
7.3    Batch Records and Data.  Upon Customer’s prior written request, within [****] calendar days following the completion of Processing and Packaging of each Batch, Manufacturer shall provide Customer with properly completed copies of Processing and Packaging Batch records prepared in accordance with the Specifications; provided, that if testing reveals an out-of-Specification result, Manufacturer shall use commercially reasonable efforts to provide such Processing and Packaging Batch records within [****] calendar days following resolution of the out-of-Specification result.
7.4    Recordkeeping.  Manufacturer shall maintain materially complete and accurate books, records, test and laboratory data, reports and other information relating to Processing and Packaging, including all information required to be maintained by applicable laws, in accordance with Manufacturer standard operating procedures and all applicable laws.  Such information shall be maintained in accordance with cGMP and the terms of the Quality Agreement.
7.5    Regulatory Compliance.  Customer shall be solely responsible for and will obtain all Regulatory Approvals, including any applications and amendments in connection therewith.  Manufacturer will be solely responsible for and will maintain all permits and licenses required by any Regulatory Authority with respect to the Facility generally.  During the term of this Agreement, upon the written request of Customer, the Parties shall discuss 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

whether and how Manufacturer may assist Customer with regulatory matters relating to Processing and Packaging under this Agreement.  In the event that the Parties mutually agree upon Manufacturer’s assistance with respect to such regulatory matters, then Manufacturer shall assist Customer as the Parties agree at Customer’s sole expense.  Each Party intends and commits to cooperate to satisfy all applicable laws relating to Processing and Packaging under this Agreement.
7.6    Governmental Inspections and Requests.  Manufacturer shall promptly advise Customer if an authorized agent of any Regulatory Authority visits the Facility concerning the Processing or Packaging of a Product.  Manufacturer shall furnish to Customer a copy of the report by such Regulatory Authority, if any, within [****] calendar days of Manufacturer’s receipt of such report, as it relates to such Product, and redacted appropriately for confidential information not relevant to such Product.  Further, upon receipt of a Regulatory Authority request to inspect the Facility or audit Manufacturer’s books and records with respect to Processing or Packaging of a Product under this Agreement, Manufacturer shall promptly notify Customer, and shall provide Customer with a copy of any written document received from such Regulatory Authority as it relates to such Product, appropriately redacted to account for Manufacturer’s confidentiality rights and obligations.  Customer is permitted to have not more than [****] representatives be present at the Facility for such inspection and available for questions regarding any such Product.
7.7    Customer Inspections and Audits.  During the term of this Agreement, duly-authorized employees, agents and representatives of Customer shall be granted access upon such date mutually agreed by the Parties at reasonably agreed times during regular business hours to (i) the portion of the Facility where Manufacturer performs Processing or Packaging Products, (ii) relevant personnel involved in Processing or Packaging Products and (iii) Processing or Packaging records described in Section 7.3, in each case solely for the purpose of inspecting and verifying that Manufacturer is Processing and Packaging Products in accordance with cGMPs, the applicable Specifications and the Product master Batch records.  Customer will arrange audit visits with Manufacturer’s Quality Assurance department.  Inspections shall be designed to minimize disruption of operations at the Facility.  Customer may not conduct an inspection under this Section 7.7 more than once (1X) during any Contract Year; provided, that additional inspections may be conducted in the event that such inspection during such Contract Year reveals a material Processing, Packaging or other material issue with respect to Manufacturer’s compliance with its obligation with respect to a Product under this Agreement, in which case a second audit may be conducted during such Contract Year solely to the extent reasonably necessary to confirm resolution of such issue.  In addition, if (a) the FDA or other applicable Regulatory Authority asserts that Manufacturer has failed to comply with any applicable regulatory standard in connection with the Process or Packaging of any Product or (b) a Regulatory Authority orders or requires a Recall (as defined below), then Customer shall have the right to inspect such portions of the Facility that relate to the Process or packaging of such Product for supply to Customer upon [****] Business Days’ notice, at its own expense and at a mutually agreeable time during normal business hours, and regardless of whether another audit or audits have been conducted within such Contract Year.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

7.8    Facility Qualification.  Manufacturer shall, at no cost to Customer, take all such actions to qualify (and thereafter to maintain qualification of) the Facility (or facilities) at which Manufacturer Processes and Packages Products hereunder, as required under applicable law in the United States of America.
7.9    Pharmacovigilance Agreement.  Prior to the Effective Date, the Parties shall negotiate in good faith and enter into an agreement which shall specify the process and procedure for sharing adverse event information amongst the Parties (the “Pharmacovigilance Agreement”).   In the event of a conflict between any of the provisions of this Agreement and the Pharmacovigilance Agreement with respect to drug safety-related activities, including the sharing of adverse event information, the provisions of the Pharmacovigilance Agreement shall govern.   In the event of a conflict between any of the provisions of this Agreement and the Pharmacovigilance Agreement with respect to any commercial matters or quality-related activities, including compliance with cGMP, including allocation of risk, liability and financial responsibility, the provisions of this Agreement (including Section 7.1) shall govern.
ARTICLE 8
TESTING AND INSPECTION OF THE PRODUCT

8.1    Releasing; Testing; Rejection.  Within [****] calendar days after Manufacturer completes Processing of a Batch, Manufacturer shall provide Customer or its designee with a Certificate of Analysis for such Batch.  With respect to Packaging, Manufacturer shall provide Customer or its designee with a certificate of release for each Batch. Following Customer’s receipt of a shipment of a Batch, Customer or Customer’s designee may test samples of such Batch to confirm that the applicable Specifications have been met.  Unless within [****] business days after Customer’s receipt of a Batch (“Review Period”), Customer or its designee notifies Manufacturer in writing (an “Exception Notice”) that such Batch does not meet the warranty set forth in Section 13.2 (“Defective Product” or “Defective Packaged Product”, as applicable), and provides a sample of the alleged Defective Product or Defective Packaged Product, the Batch shall be deemed accepted by Customer and Customer shall have no right to reject such Batch; provided, however, that such acceptance shall be subject to Customer’s right to reject Product for Latent Defects discovered by Customer at any time prior to [****] days from the date of delivery of the Product and within [****] business days after discovery of such Latent Defect.  Upon timely receipt of an Exception Notice from Customer, Manufacturer shall conduct an appropriate investigation in its discretion to determine whether or not it agrees with Customer that Product is Defective Product or a Packaged Product is a Defective Packaged Product and to determine the cause of any nonconformity.  If Manufacturer agrees that Product is Defective Product or a Packaged Product is a Defective Packaged Product and the cause of the nonconformity is attributable to Manufacturer’s breach of its Processing or Packaging obligations under this Agreement, gross negligence or willful misconduct (“Manufacturer Defective Processing” or “Manufacturer Defective Packaging”, as applicable), then Section 8.3 shall apply.  For clarity, if Product is Defective Product or Defective Packaged Product from use of API, Intermediate Product, or other Customer-supplied materials that, at the time of delivery to Manufacturer, fails to conform to 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

specifications for such API, Intermediate Product or other Customer-supplied materials, then the cause of the nonconformity shall not be deemed to be Manufacturer Defective Processing or Manufacturer Defective Packaging, and Section 8.3 shall not apply.
1.5    8.2    Discrepant Results.  In the event of a disagreement between the Parties regarding whether Product is Defective Product or Defective Packaged Product, as applicable, and/or whether the cause of the nonconformity is Manufacturer Defective Processing or Manufacturer Defective Packaging, which disagreement cannot be resolved by the Parties within [****] calendar days of the date of the Exception Notice, the Parties shall cause a mutually agreeable independent third party to review records, test data and to perform comparative tests and/or analyses on samples of the alleged Defective Product or Defective Packaged Product, as applicable, and its components, including API and other Customer-supplied materials.  The independent party’s results as to whether or not Product is Defective Product or Defective Packaged Product, as applicable, and the cause of any nonconformity shall be final and binding.  Unless otherwise agreed to by the Parties in writing, the costs associated with such testing and review shall be (i) borne by Manufacturer if Product is Defective Product to the extent 

attributable to Manufacturer Defective Processing or is a Defective Packaged Product to the extent attributable to Manufacturer Defective Packaging, (ii) shared equally by the Parties if the independent party is unable to make a final determination as to the cause of the nonconformity, and (iii) borne by Customer in all other circumstances.
8.3    Defective Processing or Defective Packaging.  Manufacturer will, at Customer’s option, either replace or repackage at Manufacturer’s cost any Batch of Defective Product attributable to Manufacturer Defective Processing or Manufacturer Defective Packaging and not attributable to API, Intermediate Product or other Customer-supplied Materials that (i) at the time of delivery, fails to conform to specifications for such API, Intermediate Product or other Customer-supplied materials or (ii) is not discoverable upon visual inspection and the testing to be performed by Manufacturer set forth in Section 3.1(a)(ii) (and Customer shall be liable to pay for either the rejected Batch(es) or the replacement Batch(es), but not both), or credit any payments made by Customer for such rejected Batch.  Except as set forth in Section 14.2, this Section 8.3 shall provide Customer’s sole remedy for supply of Defective Product. 
ARTICLE 9
REGULATORY COMPLIANCE AND RELATED MATTERS

9.1    Product Regulatory Approvals.  Customer shall be responsible for obtaining all Product regulatory approvals relating to registration of each Product (“Regulatory Approvals”), shall pay any applicable user fees for such, and shall own the regulatory filing.  All regulatory filings relating to a Product, including, but not limited to, NDAs, ANDAs and amendments thereto, shall be the sole property of Customer.
9.2    Regulatory Communications.  Customer shall be responsible for communicating with the FDA and other Regulatory Authorities regarding the Products and the Processing and Packaging activities performed by Manufacturer hereunder, and Manufacturer shall not initiate 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

contact with the FDA or any other Regulatory Authorities regarding the Products or the Processing or Packaging activities contemplated hereunder without Customer’s prior written consent, except when expressly required by the terms of this Agreement or by applicable laws.  Each Party shall provide reasonable assistance to any other Party upon such Party’s reasonable request, and at the requesting party’s sole cost and expense, with respect to such regulatory communications.
9.3    Submissions to Regulatory Authorities.  If Customer is required to submit to the Regulatory Authorities any information concerning the Processing, testing and/or Packaging and marketing of a Product, Manufacturer will provide Customer copies of such documentation, data and other information with respect to the Processing and/or Packaging and the Facility as shall be reasonably necessary for such submission to the Regulatory Authorities, subject to the terms of Article 17 (Confidentiality) hereof.  Upon the written request of Customer, the Parties shall discuss whether and how Manufacturer shall cooperate and consult for development of additional data or performance of studies concerning such Product. In the event that the Parties mutually agree upon Manufacturer’s assistance with respect to such matters, then Manufacturer shall assist Customer as the Parties agree and Customer shall pay Manufacturer’s reasonable costs therefore.  Manufacturer shall also provide at Customer’s cost, if required by the Regulatory Authorities and upon prior notice to Manufacturer, information concerning its Processing and/or Packaging and quality control procedures with respect to such Product.  Manufacturer shall provide Customer all documentation, data and information referred to in this Section 9.3 reasonably in advance of their required submission to allow for Customer’s review and comments, subject to Manufacturer’s confidentiality rights and legal obligations.  Manufacturer shall endeavor in good faith to satisfactorily resolve all reasonable Customer comments prior to submission if such submission is to be made by Customer.
9.4    Responsibility for Compliance.  Customer shall be responsible for and shall ensure the compliance of the API and/or Intermediate Product, and the Master Batch Record and/or Master Packaging Record, including Specifications and Labeling, with the requirements of applicable Regulatory Authorities; provided, however, that the foregoing shall not in any way limit any of Manufacturer’s obligations hereunder.  Manufacturer shall comply with all applicable laws and regulations, rules, ordinances, injunctions, orders and decrees, and shall maintain in effect all required governmental permits, licenses, orders, applications and approvals regarding the use of its Facility to Process and/or Package and store a Product, and Manufacturer shall Process and/or Package and store such Product in accordance with all such permits, licenses, applications and approvals.
9.5    Registration Assistance.  Upon the reasonable written request of Customer, the Parties shall discuss whether and how Manufacturer shall provide Customer with such information, samples and technical assistance, and otherwise reasonably cooperate with Customer, in connection with the preparation, prosecution and maintenance of all applicable regulatory dossiers for Products hereunder. In the event that the Parties mutually agree upon Manufacturer’s assistance with respect to such matters under this Section 9.5, then 

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Manufacturer shall assist Customer as the Parties agree and Customer shall pay Manufacturer’s reasonable costs therefore.
ARTICLE 10
RECALLS

1.6    10.1    Recall.  If a Regulatory Authority orders or requires the recall of any Product supplied hereunder or if either Manufacturer or Customer believes a recall, field alert, Product withdrawal or field correction (“Recall”) may be necessary with respect to any Product supplied under this Agreement, the Party receiving the notice from the Regulatory Authority or that holds such belief shall promptly notify the other Party in writing. With respect to any Recall, Manufacturer shall provide all necessary cooperation and assistance to Customer.  Customer shall provide Manufacturer with an advance copy of any proposed submission to a Regulatory Authority in respect of any Recall, and shall consider in good faith any comments from Manufacturer.  The cost of any Recall shall be borne by Customer, and Customer shall reimburse Manufacturer for all reasonable, actual and documented expenses incurred in connection with any Recall, in each case unless and to the extent such Recall relates to or arises from or in connection with Manufacturer’s breach of its Processing or Packaging obligations, as applicable, under this Agreement or Manufacturer’s violation of applicable laws, then such cost shall be borne by Manufacturer.  

ARTICLE 11
CONTRACT TERM AND TERMINATION

11.1    Term.  This Agreement shall become effective as of the Effective Date.  Subject to any extension pursuant to Section 11.2, this Agreement shall expire three (3) Contract Years from the Effective Date hereof (the “Initial Term”), unless terminated by one of the Parties as provided herein; provided, however, that as long as any Product Schedule is in effect in accordance with its terms, the terms of this Agreement shall remain in effect with respect to such Product Schedule.
11.2    Extension.  This Agreement shall continue after the Initial Term for successive terms of twelve (12) months each unless either Party gives written notice to the other Party of its intention to terminate this Agreement as provided in Section 11.3 below.
11.3    Termination for Cause.
(a) Material Breach.  Either Party shall have the right to terminate this Agreement, or as applicable a specific Product Schedule, upon immediate written notice if the other Party is in material breach or default of any of the material obligations or provisions of this Agreement and fails to cure the same within [****] calendar days following receipt of written notice specifying the facts and circumstances of such breach or default with reasonable particularity; provided, however, that if such breach or default, by its nature, cannot be cured within such [****] period, and Manufacturer commences and diligently pursues a plan to cure such breach or default and provides Customer within such [****] period with a written plan to cure such breach or default including the date of completion, which plan and completion date 

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are agreed upon in writing by Customer, then Customer shall not terminate this Agreement unless such breach or default remains uncured following the agreed completion date.
(b) Insolvency.  Either Party at its sole option may immediately terminate this Agreement upon written notice, but without prior advance notice, to the other Party in the event that (a) the other Party is declared insolvent or bankrupt by a court of competent jurisdiction; (b) a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by such other Party; or (c) this Agreement is assigned by such other Party for the benefit of creditors.  
(c) Agency Action.  Customer may terminate this Agreement as to any specific Product and the applicable Product Schedule upon [****] calendar days written notice in the event that any governmental agency takes any action, or raises any objection, in either case that is not attributable to any action or omission by Customer and that prevents Customer from importing, exporting, purchasing or selling such Product for a period of at least six (6) months; provided, however, that if such governmental agency action or objection specifically relates to Manufacturer’s performance hereunder or the Facility, prior to any such termination, Manufacturer shall have the right to address such action or objection.
11.4    Customer’s Termination Right for Convenience.
(a). Contract Year 1. Customer may not terminate this Agreement in respect of any Product during the first (1st) Contract Year of the Initial Term other than as permitted under Section 11.3.
(b). Contract Year 2. Customer may terminate this Agreement in respect of any Product, and accordingly terminate any Product Schedule in relation to such Product, in Customer’s sole unfettered discretion at any time during the second (2nd) Contract Year of the Initial Term upon providing at least [****] calendar days’ written notice to the Manufacturer, and in the event such termination is other than for cause as contemplated in Section 11.3: (i) Customer shall be responsible for purchasing the then remaining Firm Commitment in relation to the relevant Product in accordance with this Agreement; (ii) the then applicable Rolling Forecast in relation to the relevant Product shall immediately be cancelled (other than in respect of the Firm Commitment); (iii) Customer shall within [****] calendar days of such termination notice purchase at Manufacturer’s acquisition cost, and take delivery of, all remaining Raw Materials, Containers, Components and Labeling, in each case in relation to the relevant Product, provided that such Raw Materials, Containers, Components and Labeling cannot be used in relation to the Processing or Packaging of any other Products remaining under this Agreement; (iv) Customer shall within [****] calendar days of such termination notice purchase the remaining Existing Inventory at the rates set forth on Attachment C and either take delivery thereof or request Manufacturer to arrange for the destruction of such Existing Inventory (in each case at the sole cost and expense of Customer); (v)  Customer shall within [****] calendar days of the end of the second (2nd) Contract Year of the Initial Term pay to Manufacturer a termination fee [****] with respect to the relevant Product for the second (2nd) Contract Year of the Initial Term; and (vi) Customer shall within [****] calendar days of the end of the third (3rd) Contract Year of the Initial Term [pay to Manufacturer a 

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

termination fee equal to [****] with respect to the relevant Product for the third (3rd) Contract Year of the Initial Term. For the avoidance of doubt, if any item of Existing Inventory would be covered by each of the preceding clauses (iii) and (iv), the preceding clause (iv) shall apply to such Existing Inventory.
(c). Contract Year 3. Customer may terminate this Agreement in respect of any Product, and accordingly terminate any Product Schedule in relation to such Product, in Customer’s sole unfettered discretion at any time during the third (3rd) Contract Year of the Initial Term upon providing at least [****] calendar days’ written notice to the Manufacturer, and in the event such termination is other than for cause as contemplated in Section 11.3: (i) Customer shall be responsible for purchasing the then remaining Firm Commitment in relation to the relevant Product in accordance with this Agreement; (ii) the then applicable Rolling Forecast in relation to the relevant Product shall immediately be cancelled (other than in respect of the Firm Commitment); (iii) Customer shall within [****] calendar days of such termination notice purchase at Manufacturer’s acquisition cost, and take delivery of, all remaining Raw Materials, Containers, Components and Labeling, in each case in relation to the relevant Product, provided that such Raw Materials, Containers, Components and Labeling cannot be used in relation to the Processing or Packaging of any other Products remaining under this Agreement; (iv) Customer shall within [****] calendar days of such termination notice purchase the remaining Existing Inventory at the rates set forth on Attachment C and either take delivery thereof or request Manufacturer to arrange for the destruction of such Existing Inventory (in each case at the sole cost and expense of Customer); and (v) Customer shall within [****] calendar days of the end of the third (3rd) Contract Year of the Initial Term pay to Manufacturer a termination fee equal to [****] with respect to the relevant Product for the third (3rd) Contract Year of the Initial Term.  For the avoidance of doubt, if any item of Existing Inventory would be covered by each of the preceding clauses (iii) and (iv), the preceding clause (iv) shall apply to such Existing Inventory.
(d) For purposes of this Section 11.4, “Lost Volume Pro Rata Cash Costs” means the amount ‘X’ resulting from application of the following formula:
[X  =  ((A-B)/A) * C]
Where,
“A” means, in relation to the second (2nd) Contract Year of the Initial Term, [****] specified for Contract Year 2 in Section 3.4 of the Product Schedule for the Product in respect of which this Agreement has been terminated, and in relation to the third (3rd) Contract Year of the Initial Term, [****] specified for Contract Year 3 in Section 3.5 of the Product Schedule for the Product in respect of which this Agreement has been terminated;
“B” means the number of [****] Customer by Manufacturer during the applicable Contract Year of the Initial Term; and
“C” means the lessor of (i) [****] and (ii) [****]. 
11.5    Outstanding Obligations; Survival.  Any expiration or termination of this Agreement shall not affect any outstanding obligations or payments due hereunder prior to such expiration or termination, nor shall it prejudice any other remedies that the Parties may have under this Agreement.  In the event that the Agreement is terminated in accordance with Section 11.3 or 11.4, Manufacturer shall cooperate with Customer pursuant to the terms of Article 12.  The rights and obligations of the Parties shall continue under Articles 14 (Indemnification; Limitation of Liability), 15 (Insurance), 17 (Confidentiality), 18 (Intellectual Property) and 19 (Additional Terms and Provisions); and under Sections 3.4 (Other Damage or Loss), 4.5 (Reliance by Manufacturer), 5.3 (Invoices), 7.3 (Batch Records and Data), 7.4 (Recordkeeping), 10.1 (Recall), 11.5 (Outstanding Obligations; Survival), and 13.4 (Disclaimer), in each case in accordance with their respective terms if applicable, notwithstanding expiration or termination of this Agreement.
ARTICLE 12
TECHNOLOGY TRANSFER

1.7    12.1    Manufacturer Cooperation.  If, at any time during this Agreement, Customer plans to move the Processing and/or Packaging of the Product to an alternate site, either a 

Customer site or a new manufacturer, Manufacturer shall cooperate with Customer to the extent set forth in this Article 12 and as otherwise reasonably requested by Customer.
12.2    Documentation.  To facilitate an orderly transfer of Processing and/or Packaging to an alternate site, Manufacturer shall provide Customer with Batch Records and a written description of the Process, in each case redacted by Manufacturer at its sole discretion to remove Manufacturer’s or other third party customer’s proprietary data and information and Manufacturer’s Confidential Information.  
12.3    Customer Payment.  Customer will reimburse Manufacturer for services provided under this Section 12 on a time and material basis, provided such time and materials are reasonable and documented.  
ARTICLE 13
REPRESENTATIONS AND WARRANTIES

13.1    Authority; Compliance.  Each Party represents and warrants that (i) it has been duly authorized by all necessary action on the part of such Party and its respective officers and directors to enter into this Agreement and that it is not aware of any impediment that would inhibit its ability to perform its obligations hereunder; and (ii) no transactions or dealings under this Agreement shall be conducted with or for an individual or entity that is designated as the target of any sanctions, restrictions or embargoes administered by the United Nations, European Union, United Kingdom or the United States of America.
13.2    Manufacturer Warranties.  Manufacturer represents, warrants and undertakes to Customer that at the time of delivery by Manufacturer as provided in Section 5.2, Product shall: (i) have been Processed and Packaged in accordance with applicable laws, including cGMP Requirements, and in conformance with the specific Product Specifications and shall not be adulterated, misbranded or mislabeled within the meaning of the FFDCA and applicable laws, as such FFDCA and laws are constituted and in effect at the time of delivery, (ii) be conveyed with title free and clear of all liens or other encumbrances, including any third party liens or other encumbrances, and (iii) have the minimum shelf life provided for in Section 5.5.
13.3    Debarment.  Manufacturer represents and warrants that it does not use the services of any persons debarred or suspended under 21 U.S.C. § 335a (a) or (b) in any capacity associated with or related to the Processing and Packaging of the Product.  Manufacturer further represents and warrants that it shall not hire or retain as an officer or employee any person who has been convicted of a felony under the laws of the United States for conduct relating to the regulation of any drug product under the United States Food, Drug, and Cosmetic Act.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

1.8    13.4    Disclaimer.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT OR ATTACHMENTS THERETO, CUSTOMER AND MANUFACTURER MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  In addition, the representations and warranties of Manufacturer set forth in Section 13.2 and Section 13.3 will not apply with respect to any breach 

thereof that arises from or relates to a breach of a representation and warranty of Impax Taiwan made to Bora in the Purchase Agreement.

ARTICLE 14
INDEMNIFICATION; LIMITATION OF LIABILITY

14.1    Customer.  From and after the Effective Date, Customer shall defend, indemnify and hold harmless Manufacturer, its Affiliates, and their respective directors, officers, employees and agents, advisors and shareholders (collectively, the “Manufacturer Indemnitees”) from and against any and all suits, claims, losses, demands, liabilities, damages, costs and expenses (including reasonable attorneys’ fees and reasonable investigative costs) in connection with any suit, demand or action by any third party (“Losses”) arising out of or resulting from any claim by a third party to the extent attributable to (a) any gross negligence or willful misconduct by Customer;  (b) the breach by Customer or any Customer Indemnitee of any of Customer’s representations and warranties, covenants, or obligations contained in this Agreement; (c) any bodily injury, property damage or death resulting from any API, Customer-supplied materials or any Products  manufactured and supplied under this Agreement including product liability claims, except to the extent such Losses are attributable to Manufacturer’s improper testing (subject to Section 3.1(a)(ii)), storage or handling of Intermediate Product or other Customer-supplied materials; or (d) any claim of infringement (i) of any third party intellectual property rights relating to any Products manufactured and supplied under this Agreement; or (ii) that is related to Manufacturer’s use of Customer IP to manufacture and supply any Products under this Agreement.  This indemnity will not apply to the extent that these Losses are those for which Manufacturer is obligated to indemnify the Customer Indemnitees under Section 14.1.
14.2    Manufacturer.  From and after the Effective Date, Manufacturer will indemnify, defend and hold harmless, and pay and reimburse, Customer and its Affiliates and their respective officers, directors, employees, agents, advisors and shareholders (collectively, the “Customer Indemnitees”) from and against any and all Losses arising out of or resulting from any claim by a third party to the extent attributable to (a) any gross negligence or willful misconduct by Manufacturer or (b) the breach by Manufacturer or any Manufacturer Indemnitees of any of Manufacturer’s representations and warranties, covenants, or obligations contained in this Agreement.  This indemnity will not apply to the extent that these Losses are those for which Customer is obligated to indemnify the Manufacturer Indemnitees under Section 14.1.

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14.3    Procedures.  A Party (the “indemnitee”) that intends to claim indemnification under this Article 14 shall notify the other Party (the “indemnitor”) promptly in writing of any action, claim or liability in respect of which the indemnitee believes it is entitled to claim indemnification, provided that the failure to give timely notice to the indemnitor shall not release the indemnitor from any liability to the indemnitee except to the extent the indemnitor is materially prejudiced thereby.  
14.4    EXCEPT IN THE EVENT OF MANUFACTURER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, MANUFACTURER’S TOTAL LIABILITY UNDER THIS AGREEMENT  FOR CLAIMS WITH RESPECT TO ANY AND ALL PRODUCTS SHALL IN 

NO EVENT EXCEED [****].
ARTICLE 15
INSURANCE

15.1    Insurance.  At all times from the Effective Date through that date which is three (3) years after the termination or expiration of this Agreement, each of Customer and Manufacturer will maintain product liability insurance (or self-insurance), which is reasonable and customary in the USA pharmaceutical industry for companies of comparable size, provided that in no event shall the product liability insurance amounts be less than $[****] per occurrence and $[****] in the aggregate limit of liability per year.  Each Party shall provide written proof of such insurance to the other Party upon request by such other Party.  

ARTICLE 16
FORCE MAJEURE

16.1    Excusing Performance.  Neither Party shall be liable for the failure to perform its obligations under this Agreement if such failure is a direct result of a contingency beyond such Party’s reasonable control, including, but not limited to, wars, fires, floods, storms or other natural disasters, or failure of public utilities or common carriers (“Force Majeure”).  
16.2    Notice.  A Party claiming a right to be excused performance under Section 16.1 shall immediately notify the other Party in writing of the extent of its inability to perform, which notice shall specify the Force Majeure that prevents such performance.
16.3    Resumption.  Each Party shall employ commercially reasonable efforts, at its cost, toward resumption of its performance hereunder if such performance is delayed or interrupted by reason of Force Majeure.  In the event that any Force Majeure circumstance cannot be removed or overcome within [****] months (or such other period as the Parties jointly shall determine from the date the Party affected first became affected), then either Party may, as of the expiration of such period by written notice to the other Party terminate this Agreement and neither Manufacturer nor Customer shall be liable to the other for damages with respect thereto.

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ARTICLE 17
CONFIDENTIALITY

17.1    Disclosure.  During and in furtherance of this Agreement, each of the Parties hereto may disclose certain of its Confidential Information to the other Party.
1.9    17.2    Use of Confidential Information and Term.  During term of this Agreement and for a period of seven (7) years from the expiration or termination thereof, each of the Parties hereto agrees (a) to use the Confidential Information only in connection with the terms of and 

performance of this Agreement; (b) to treat the Confidential Information as it would its own proprietary information; and (c) to take all reasonable precautions to prevent the disclosure of the Confidential Information to any individual or entity (except to such of its employees, subcontractors, consultants, and agents who reasonably require same for purposes hereof and who are bound in writing to that Party by like obligations as to confidentiality and non-use), without the prior written consent of the other Party.
17.3    Exceptions to Confidential Information.  Each of Customer and Manufacturer shall be relieved of any and all obligations under Section 17.2 regarding Confidential Information which (a) was lawfully in the possession of the other Party as evidenced by the written records of such Party (other than in the possession of Impax Taiwan as at the Effective Date), and which was not acquired directly or indirectly from the disclosing Party’s group or any of the representatives or advisors to the disclosing Party, or in violation of any confidentiality agreement, (b) at the time of disclosure, was generally available to the public; or which after disclosure hereunder becomes generally available to the public through no fault attributable to a Party hereto; (c) is hereafter made available for use or disclosure from any third party having a right, to the best of receiving Party’s knowledge, to do so, or (d) is independently developed by the receiving Party without reference to or reliance upon the information by the disclosing Party, as evidenced by contemporaneous written records.  Notwithstanding the foregoing, each Party shall be permitted to disclose the other Party’s Confidential Information solely to the extent it is required to be disclosed by the law, regulation or the rules of any applicable securities exchange on which such Party’s securities are listed, provided, however, that the receiving Party shall so notify the disclosing party of its intent and cooperate with the disclosing Party on reasonable measures to protect the confidentiality of the information.
17.4    Return of Confidential Information.  Upon expiration or termination of this Agreement, each of the Parties will (and will cause its Affiliates to) cease its use and either return or destroy (and certify as to such destruction) all Confidential Information of the other Party, including any copies thereof, subject to the receiving Party’s right to maintain one copy of such tangible manifestations of such other Party’s Confidential Information solely for purposes of monitoring its compliance with this Agreement.

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[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

ARTICLE 18
INTELLECTUAL PROPERTY

18.1    License.  Customer hereby grants to Manufacturer, for the Term of this Agreement, a royalty-free, non-exclusive, non-transferable (except as set forth in Section 19.6), non-sublicensable (except to approved subcontractors) right and license under any intellectual property rights other than Customer’s Trademarks (as defined below) that are owned or controlled by Customer, licensable by Customer, and would necessarily be infringed by such Manufacturer’s manufacture and supply of the applicable Product under the terms set forth in this Agreement, solely to manufacture and supply such Product for Customer under the terms set forth under this Agreement.  
18.2    Trademarks.  To the extent that Customer elects in writing for any of the Products to be marketed under a trademark or housemark of Customer (“Customer’s Trademarks”), Customer hereby grants to Manufacturer a revocable, non-assignable and non-exclusive, non-transferable, non-sublicensable license during the Term to apply and affix the applicable Customer’s Trademark on the Products manufactured for Customer hereunder.  Manufacturer shall (a) promptly provide to Customer all information reasonably requested by Customer with respect to the use, reproduction or display of Customer’s Trademarks, (b) promptly comply with any and all reasonable directions and quality control standards as may be provided from time to time by Customer with respect to the use, reproduction or display of Customer’s Trademarks, and (c) take no action that would reasonably be expected to materially impair the value of any Customer’s Trademark.
18.3    Ownership.  Notwithstanding anything to the contrary under this Agreement, 
(a)    Manufacturer acknowledges that, as between the Parties, all right, title and interest in and to all intellectual property rights and embodiments thereof owned by or licensed to Customer as of the Effective Date or thereafter developed or acquired by Customer, including without limitation Customer’s Trademarks (“Customer IP”), including any of the rights licensed pursuant to this Article 18, are and shall remain owned by Customer, its Affiliates or by its or their respective third-party licensors.  Customer hereby reserves all rights in and to any and all Customer IP except to the extent expressly licensed to Manufacturer pursuant to Section 18.1 or Section 18.2.  All goodwill arising from Manufacturer’s exercise of the license to Customer’s Trademarks set forth in Section 18.2 shall inure to the benefit of Customer; and
(b)    Customer acknowledges that, as between the Parties, all right, title and interest in and to all intellectual property rights and embodiments thereof owned by Manufacturer or licensed to Manufacturer by any third party (for clarity, other than by Customer or any of Customer’s Affiliates), in each case, as of the Effective Date or thereafter developed or acquired by Manufacturer (for clarity, other than as licensed to Manufacturer by Customer or any of Customer’s Affiliates) (“Manufacturer IP”) are and shall remain owned by Manufacturer, its Affiliates or by its or their respective third-party licensors.  Manufacturer hereby reserves all rights in and to any and all Manufacturer IP.

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ARTICLE 19
ADDITIONAL TERMS AND PROVISIONS

19.1    Currency.  Unless otherwise indicated, all dollar amounts in this Agreement are expressed in the lawful currency of the United States of America.
19.2    Headings.  The titles and headings herein are for convenience only and shall not be used to interpret or construe the terms and conditions of this Agreement.
19.3    Singular Terms.  Except as otherwise expressly provided herein or unless the context otherwise requires, all references to the singular shall include the plural as well.
19.4    Agency Relationship.  Nothing in this Agreement shall be construed to create between Customer and Manufacturer any other relationship such as, by way of example only, that of employer-employee, principal and agent, joint-venturer, co-partners or any similar relationship, the existence of which is expressly denied by the Parties hereto.  No Party shall have authority to conclude contracts or otherwise to act for or bind the other Party in any manner, whatsoever, as agent or otherwise, save that Bora may take action as Impax Taiwan’s lawful agent for all purposes under this Agreement.  Impax Taiwan and Bora shall be jointly and severally liable for any and all liability incurred by each other under or otherwise in connection to this Agreement.
19.5    Public Statements.  No Party shall use or refer to, without the other Party’s prior written consent, the name of any other Party in any public statements, whether oral or written, including, but not limited to, shareholders reports, communications with stock market analysts, press releases or other communications with the media, or prospectuses; provided, however, that each Party may disclose to any third party authorized to receive Confidential Information under Section 17.2 the existence and subject matter of this Agreement.
19.6    Assignment.  No Party may assign this Agreement or any of its rights or obligations hereunder except with the written consent of the other Parties. Notwithstanding the foregoing provisions of this Section 19.6, (i) each Party may assign this Agreement to any of its Affiliates (provided that assignment to an Affiliate will not relieve the assigning Party of responsibility for any breach of this Agreement, whether before or after such assignment) or to a successor to all or substantially all of its business to which this Agreement relates, provided that such assignee executes an agreement with the non-assigning Parties hereto whereby it agrees to be bound hereunder or (ii) Customer may assign this Agreement, in whole or in part in respect of a specific Product, to a successor to the portion of its business which relates to a specific Product, provided that, such assignee executes an agreement with the non-assigning Parties hereto whereby it agrees to be bound hereunder, or upon Manufacturer’s request, the Parties and such assignee will execute a separate document addressing solely the rights and obligations in relation to such specific Product, such Product shall no longer be subject to this Agreement with any conforming changes to be reflected in an amendment to this Agreement (e.g., removing the specific Product) and Customer shall pay Manufacturer’s reasonable legal fees associated with the preparation and review of such documents.  Any purported assignment in violation of this Section 19.6 shall be void ab initio.

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19.7    Dispute Resolution. 
(a)  The Parties will attempt to settle any claim or controversy arising out of this Agreement or the subject matter hereof through consultation and negotiation in good faith in a spirit of mutual cooperation. If they fail to resolve the dispute within thirty (30) days after either Party notifies the other of the dispute, then the matter will be escalated to the Chief Executive Officer of Customer and the Chief Executive Officer of Manufacturer, or their designees for resolution. They will use reasonable efforts to attempt to resolve the dispute through good faith negotiations by telephone or in person as may be agreed. If they fail to resolve the dispute within thirty (30) days after it is referred to them and do not mutually agree to extend the time for negotiation, then the dispute will be submitted to arbitration in accordance with the procedure set forth in Section 19.7(b).
(b)  Except with respect to actions by either Party seeking equitable or declaratory relief, any claim or controversy arising in whole or in part under or in connection with this Agreement or the subject matter hereof that is not resolved pursuant to Section 19.7(a) will be referred to and finally resolved by arbitration in accordance with the Rules of the International Chamber of Commerce (the “Rules”) as such Rules may be modified by this Agreement, by one arbitrator, who will be agreed upon by the Parties. If the Parties are unable to agree upon a single arbitrator within thirty (30) days following the date arbitration is demanded, three arbitrators will be used, one selected by each Party within ten (10) days after the conclusion of the 30-day period and a third selected by the first two within ten (10) days thereafter. Unless the Parties agree otherwise, they will be limited in their discovery to directly relevant documents. Responses or objections to a document request will be served twenty (20) days after receipt of the request. The arbitrator(s) will resolve any discovery disputes. Arbitration proceedings may be commenced by either Party by notice to the other Party. Unless otherwise agreed by the Parties, all such arbitration proceedings will be held in San Francisco, California, USA, provided that proceedings may be conducted by telephone conference call with the consent of the Parties and the arbitrator(s). The arbitrator(s) will apply the laws of California and it is understood and agreed that the provisions of Sections 45 and 69 of the Arbitration Act of 1969 shall not apply in respect of any arbitration pursuant to this Agreement.  The arbitrator(s) will only have the authority to award actual money damages (with interest on unpaid amounts from the date due) and, except with respect to a breach or nonperformance of any provision of this Agreement relating to Confidential Information, the arbitrator(s) will not have the authority to award indirect, incidental, consequential, exemplary, special or punitive damages, and the Parties expressly waive any claimed right to such damages. The arbitrator(s) also shall be authorized to grant any temporary, preliminary or permanent equitable remedy or relief the arbitrators deem just and equitable and within the scope of this Agreement, including an injunction or order for specific performance. The award of the arbitrator(s) shall be the sole and exclusive remedy of the Parties. Judgment on the award rendered by the arbitrator(s) may be enforced in any court having competent jurisdiction thereof, subject only to revocation on grounds of fraud or clear bias on the part of the arbitrator(s). The arbitration will be of each Party’s individual claims only, and no claim of any other Party will be subject to arbitration in such proceeding. The costs and expenses of the arbitration, but not the costs and expenses of the Parties, will be shared equally by the Parties. 

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If a Party fails to proceed with arbitration, unsuccessfully challenges the arbitration award, or fails to comply with the arbitration award, the other Party is entitled to costs, including reasonable attorneys’ fees, for having to compel arbitration or defend or enforce the award. Except as otherwise required by law, the Parties and the arbitrator(s) will maintain as confidential all information or documents obtained during the arbitration process, including the resolution of the dispute. Judgment on the award granted in any arbitration hereunder may be entered in any court having jurisdiction over the award or any of the Parties or any of their respective assets. The Parties knowingly and voluntarily waive their rights to have their dispute tried and adjudicated by a judge and jury except as expressly provided herein. 
(c)    Nothing in this Section 19.7 will prevent a Party from resorting to judicial proceedings if: (i) interim relief from a court is necessary to prevent serious and irreparable injury to such Party; or (ii) litigation is required to be filed prior to the running of the applicable statute of limitations. The use of any alternative dispute resolution procedure will not be construed under the doctrine of latches, waiver or estoppel to affect adversely the rights of either Party.
19.8    Governing Law.  This Agreement shall be construed and enforced in accordance with the laws of the State of California, without application of any law, rule or judicial precedent thereof that would require application of the laws of any other jurisdiction.  Each Party hereby expressly excludes application of the United Nations Convention on the Sale of Goods in relation to this Agreement or the performance thereof.  Subject to Section 19.7, each Party hereby agrees to the exclusive jurisdiction and proper venue of the courts of the State of California and the federal courts of the United States of America located within California in relation to any dispute or controversy in connection to this Agreement or the performance thereof, and no Party shall object to such jurisdiction or venue on the basis of lack of subject matter or personal jurisdiction or inconvenient forum.  Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail or recognized international courier service to such Party’s respective address set forth in Section 19.9 shall be effective service of process for any action, suit or proceeding in California with respect to any matters to which it has submitted to jurisdiction in this Agreement.
19.9    Notices.  Any notice, approval, instruction or other written communication required or permitted hereunder shall be sufficient if made or given to the other Party by personal delivery, by facsimile (receipt verified) or nationally recognized courier service to the mailing address set forth below:
If to Customer:
Impax Laboratories, Inc.
30831 Huntwood Avenue
Hayward, California 94544
Attention:   Mark Schlossberg, Esq.
Fax number:  +1.510.240.6096
If to Manufacturer:

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Bora Pharmaceuticals Co., Ltd.
6F, 69 XinAi Road
Neihu District, Taipei City 114
Taiwan, Republic of China
Attn:  Bobby Sheng
Fax number: +886 2 2790-6596
or to such other addresses provided to the other Party in accordance with the terms of this Section 19.9.  Notices of written communication made or given by personal delivery or courier service shall be deemed to have been sufficiently made or given when sent (receipt acknowledged).

19.10    Additional Products.  The Parties covenant and agree that additional Products may be added to this Agreement by mutual agreement of the Parties and such additional Products shall be added to this Agreement by the Parties executing a written addendum hereto and signed by both Parties to this Agreement and such additional Products shall thereafter be governed by the general conditions hereof and any special terms (including, without limitation, fees) agreed to by the Parties in such addendum.
19.11    Entire Agreement.  This Agreement and any Schedules and other attachments hereto, and the Purchase Agreement constitute the full, complete, final and integrated agreement between the Parties hereto relating to the subject matter hereof and supersedes all previous written or oral negotiations, commitments, agreements, transactions, or understandings with respect to the subject matter hereof.  If there is any conflict between this Agreement and the terms and conditions contained on any Purchase Order or in any Schedule hereto, the terms and conditions of this Agreement shall prevail.
19.12    Amendments: No Waiver.  No provision of this Agreement may be amended, revoked or waived except in writing signed and delivered by an authorized officer of each Party.  No failure or delay on the part of either Party in exercising any right hereunder will operate as a waiver of, or impair, any such right.  No single or partial exercise of any such right will preclude any other or further exercise thereof or the exercise of any other right.  No waiver of any such right will be deemed a waiver of any other right hereunder.
19.12    Validity.  Should any part or provision of this Agreement be held unenforceable or invalid, the invalid or unenforceable provision shall be replaced with a provision which accomplishes, to the extent possible, the original business purpose of such provision in a valid and enforceable manner, and the remainder of this Agreement shall remain binding upon the Parties.
19.13  Headings.  The descriptive headings in this Agreement are inserted for the convenience of reference only and are not intended to be part of or affect the meaning of or interpretation of this Agreement.

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19.14    Execution in Counterparts.  This Agreement may be executed, either by original or by facsimile signature, in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.   If by facsimile, an original shall be sent to each Party as soon as reasonably possible for its permanent files.

35

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IN WITNESS WHEREOF, the duly authorized representatives of the Parties have executed this Agreement.

	
			
	Impax Laboratories, Inc.
	 
	Bora Pharmaceuticals Co., Ltd.

	By:  /s/ Paul M. Bisaro    
	 
	By: /s/ Bobby Sheng        

	Name: Paul M. Bisaro
	 
	Name: Bobby Sheng

	Title:    Chief Executive Officer
	 
	Title:   Chairman

	Date:
	 
	Date:    December 19, 2017

	 
	 
	 

	Impax Laboratories (Taiwan), Inc.
	 
	 

	By: /s/ Bryan M. Reasons        
	 
	 

	Name:  Bryan M. Reasons
	 
	 

	Title:    Chairman
	 
	 

	Date:    
	 
	 

SC1:4529841.10

PRODUCT SCHEDULES

[To be attached for each Product in substantially the form of Attachment A.  Such Product Schedules shall be labeled Product Schedule 1, Product Schedule 2, etc.]

i

SC1:4529841.10

ATTACHMENT A
FORM OF PRODUCT SCHEDULE

PRODUCT SCHEDULE # - PRODUCT NAME

This PRODUCT SCHEDULE (Product Name) dated ____________, 20__ (“Product Addendum (Product Name) Effective Date”) is to the Master Supply Agreement (“Agreement”) dated ______ ___, 2017 and is entered into by and between Impax Laboratories, Inc. (“Customer”) and Bora Pharmaceuticals Co., Ltd. and Impax Laboratories (Taiwan) Ltd (Bora and Impax Taiwan together the “Manufacturer”).
		
	1.
	Product Definition

		
	1.1.
	Name, Strength, Dosage Form

		
	1.1.1.
	Per Exhibit 1 to this Attachment

		
	1.2.
	Description of Work 

		
	1.3.
	Referenced Drug

		
	1.4.
	Required Shelf Life at Delivery

		
	2.
	Scope of Activities 

		
	2.1.
	Anticipated Processing Date

		
	2.2.
	Validation Services

		
	2.3.
	Product Maintenance Services

		
	2.4.
	Facility Address  

		
	3.
	[****]

		
	4.
	Quantity/ Price 

4.1    Quantity/Batch Size
4.2    Estimated Volume for First Contract Year
4.3    Unit Pricing (based on volume)
4.4    Product Maintenance Service Fees (as applicable) and Payment Dates
4.5    Price Changes 

4.6    Taxes 

i

SC1:4529841.10

[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

		
	5.
	Product Specifications

		
	6.
	Product Materials 

		
	6.1.
	Raw Materials 

		
	6.1.1.
	Long Lead Time Items

		
	6.2.
	 Client-supplied Materials

		
	6.2.1.
	Value of client supplied Materials

	
		
	Description
	Value

	 
	 

	 
	 

		
	7.
	Purchase Order/Invoicing Requirements

		
	7.1.
	Information to be contained in Purchase Order

		
	7.2.
	Invoices to be directed to:

		
	8.
	Documents to Accompany Product Batch Release:

		
	9.
	Commercial Launch Date

		
	10.
	Territory

		
	11.
	Exclusivity

		
	12.
	Activity/Responsibility Summary

	
			
	Activity / Responsibility
	Customer
	Manufacturer

	Supply of API
	 
	 

	Purchase of Raw Materials
	 
	 

	Purchase Packaging Components
	 
	 

	API Testing and Release
	 
	 

	Packaging Component Testing and Release
	 
	 

	Storage of Raw Materials
	 
	 

	Storage of Packaging Components
	 
	 

	Storage of Finished Product
	 
	 

	Allocate and send Serial Numbers
	 
	 

	Weigh/Dispense API
	 
	 

	Weigh/Dispense Excipients
	 
	 

	Manufacture of bulk solution, sterile fill, freeze dry and sealing of product
	 
	 

i

SC1:4529841.10

	
			
	Activity / Responsibility
	Customer
	Manufacturer

	Inspection and secondary packaging
	 
	 

	In-process testing
	 
	 

	Labeling per applicable laws and requirements
	 
	 

	Review and Approve Labeling Proofs
	 
	 

	Finished Product release testing
	 
	 

	Finished Product stability testing
	 
	 

	Review and Disposition of Master Batch Record
	 
	 

	Review and Disposition of Packaging Record
	 
	 

	Final Batch Release
	 
	 

	Send Serialization data
	 
	 

	Arrange for Shipping of Finished Product
	 
	 

	Prepare and Approve Certificate of Compliance
	 
	 

	Facilities qualification, protocol, execution, completion, report
	 
	 

	Cleaning procedures, validation
	 
	 

	Analytical Methods for Cleaning Validation
	 
	 

	Equipment qualification, protocol, execution, completion, report and approval, safety qualification
	 
	 

	Validation, protocol, execution, completion report and approval
	 
	 

	Standard Operating Procedures
	 
	 

	SOP Training
	 
	 

	Maintenance of Training Records
	 
	 

	Master Batch Record
	 
	 

	Packaging Batch Record
	 
	 

	Retention of Batch Records
	 
	 

	Storage of Retain Samples
	 
	 

	Maintenance/Administration of Retain Samples
	 
	 

	Conduct Annual Product Review
	 
	 

	Health and Safety Programs in accord with State, Local and Federal Regulations
	 
	 

	Training on relevant health and safety issues
	 
	 

	Documented Health and Safety Procedures
	 
	 

 

		
	13.
	Other terms and conditions:

Limitation of Liability with respect to Product under this Product Schedule:  
The Parties agree that the terms and conditions of the Agreement are incorporated herein as if fully set forth herein and further represent that this Product Schedule (Product Name) is executed by their duly authorized representatives.

ii

SC1:4529841.10

IMPAX LABORATORIES, INC.            BORA PHARMACEUTICALS CO., LTD

By:  __________________________        By:  ________________________
Title:  ___________________________                 Title:  ______________________
IMPAX LABORATORIES (TAIWAN), INC.
  By:  ______________________________
  Title: _____________________________

iii

SC1:4529841.10

ATTACHMENT B

PRODUCT MAINTENANCE SERVICES

[****]

iv

SC1:4529841.10

[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

ATTACHMENT C
EXISTING INVENTORY

[****]

v

SC1:4529841.10

[****] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  Confidential treatment has been requested with respect to the omitted portions.

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