Document:

Form of Contingent Warrant

 Exhibit 4.2 
 NEITHER THE WARRANTS REPRESENTED BY THIS WARRANT CERTIFICATE NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. SUCH SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS
RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS OR THE COMPANY HAS RECEIVED FROM THE HOLDER REASONABLE ASSURANCE THAT THE
SECURITIES CAN BE SOLD, ASSIGNED OR TRANSFERRED PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES. 
 FLOTEK INDUSTRIES, INC. 
 WARRANT TO PURCHASE COMMON STOCK 
  

			
	Warrant Shares: [                    ]	 	Issue Date: August 11, 2009

 THIS WARRANT TO PURCHASE COMMON STOCK (the “Warrant”) certifies that, for value
received, [                    ] (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date Flotek Industries, Inc., a Delaware corporation (the “Company”) obtains the Stockholder Approval described in Section 5 hereof (the “Initial
Exercise Date”) and on or prior to the earlier of (i) 5:00 p.m. Eastern time on the 60-month anniversary of the date the Company obtains the Stockholder Approval, or (ii) 5:00 p.m. Eastern time on the 98-month anniversary of the
date hereof (the “Termination Date”) but not thereafter, to subscribe for and purchase from the Company [            ] fully paid nonassessble shares of Common Stock of the
Company (the “Warrant Shares”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 
 Section 1. Definitions. As used herein, the following terms shall have the following respective meanings: 
 a) “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act. 
  

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 b) “Board of Directors” means the board of directors of the Company.

 c) “Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday
in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close. 
 d) “Certificate of Designations” means the Certificate of Designations of the Company establishing the Preferred Stock.

 e) “Certificate of Incorporation” means the Amended and Restated Certificate of Incorporation of the
Company, as such may be amended, modified or restated from time to time. 
 f) “Closing Sale Price” means,
for any security as of any date, the last closing trade price for such security on the Principal Market, as reported by Bloomberg, L.P. (“Bloomberg”), or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing trade price, then the last trade price of such security prior to 4:00 p.m., New York Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last trade price of such security on the principal securities exchange or Trading Market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such security in the
over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market
makers for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). 
 g) “Commission” means the United States Securities and Exchange Commission. 
 h) “Common Stock” means the common stock, par value $0.0001 per share, of the Company. 
 i)
“Convertible Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock. 
 j) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder. 
 k) “Excluded Securities” means any Common Stock issued or issuable: (i) in connection
with any stock plan of the Company; (ii) upon exercise of the Warrants; (iii) pursuant to a bona fide firm commitment underwritten public offering with a nationally recognized underwriter that generates gross proceeds to the Company in
excess of $25,000,000 (other than an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act and “equity lines”); (iv) upon conversion of any Options or Convertible Securities that are outstanding on
the day immediately preceding the Initial Exercise 

  

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Date, provided that the terms of such Options or Convertible Securities are not amended, modified or changed on or after the Initial Exercise Date;
(v) in connection with any acquisition, merger, joint venture or strategic investment that has been approved by the Board of Directors of the Company; (vi) securities issued to commercial banks or financial institutions, the primary
business of which is not making equity-related loans; (vii) securities issued to lessors in connection with commercial credit arrangements, equipment financings or similar transactions or to independent contractors or vendors of the Company in
connection with bona fide business transactions; or (viii) in connection with the conversion of the Preferred Stock or exercise of the warrants issued in connection with the Warrants (including warrants issued after the date hereof to the
placement agent pursuant to the agreement between the Company and the placement agent entered into in connection with the issuance of Warrants, not to exceed 175,000 shares at an exercise price of not less than $2.31 per share). 
 l) “Options” means any right, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 m) “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated
association, joint venture, limited liability company, joint stock company, government (or agency or subdivision thereof) or other entity of any kind. 
 n) “Preferred Stock” means the Series A Cumulative Convertible Preferred Stock of the Company established pursuant to the Certificate of Designations. 
 o) “Principal Market” means the New York Stock Exchange. 
 p) “Purchase Agreement” means the Unit Purchase Agreements, dated as of August 11, 2009, among the Company and the
purchasers signatory thereto. 
 q) “Securities Act” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 r) “Trading Day” means a day on which the Principal Market
is open for trading. 
 s) “Trading Market” means any of the following markets or exchanges on which the
Common Stock is listed or quoted for trading on the date in question: the NYSE Alternext, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange (or any successors to any of the
foregoing). 
 t) “Transfer Agent” means American Stock Transfer & Trust Company, the current
transfer agent of the Company, and any successor transfer agent of the Company. 
  

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 Section 2. Exercise. 
 a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time
or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the
Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto; and, within three Trading Days of the date said Notice of Exercise is delivered to the Company, the Company shall have
received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within three Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of
reducing the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the
date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one Business Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the Company shall be controlling and
determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares
hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 
 b) Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be $2.45, subject to adjustment hereunder (the “Exercise Price”). 
 c) Mechanics of Exercise. 
 i. Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder by physical delivery to the address specified by the Holder in the
Notice of Exercise by the date that is three Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price
as set forth above (such date, the “Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the first date on which all of the foregoing have been delivered to the Company. The Warrant Shares shall be
deemed to have been issued, and the Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the
Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 2(c)(iv) prior to the issuance of such shares, having been paid. 
  

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 ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been
exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 iii. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such
fraction multiplied by the Exercise Price or round up to the next whole share. 
 iv. Charges, Taxes and Expenses.
Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the
Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto. 
 v. Closing of Books. The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 d) Cashless
Exercise. Notwithstanding anything contained herein requiring the payment of the Exercise Price in cash upon exercise of the Warrants, if at any time that the Warrants are exercisable the Company is in breach of its obligations to provide an
effective registration statement covering the resale of the Warrant Shares that are the subject of the Notice of Exercise (the “Unavailable Warrant Shares”) pursuant to Section 7 of the Purchase Agreement, the Holder may, in
its sole discretion, but only during the continuation of such breach, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Exercise
Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 
  

	
	Net Number = (A × B) - (A × C)
	                        B

  

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 For purposes of the foregoing formula: 
 A = the total number of shares with respect to which this Warrant is then being exercised. 
 B = the Closing Sale Price of the shares of Common Stock on the date immediately preceding the date of the Notice of Exercise. 
 C = the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise. 
 e) Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the
Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.
Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it
being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in
accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates)
and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation
to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For
purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or
annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock
outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the 

  

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number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’
prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase or decrease
will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this
Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 
 Section 3. Certain Adjustments. The Exercise Price shall be adjusted from time to time as follows: 
 a)
Adjustment upon Issuance of Common Stock. If at any time on or after the date upon which these Warrants were first issued, the Company issues or sells, or in accordance with this is deemed to have issued or sold, any shares of Common Stock
(including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding Excluded Securities) for a consideration per share (the “New Issuance Price”) less than a price (the
“Applicable Price”) equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing, a “Dilutive Issuance”), then immediately after such Dilutive Issuance the
Exercise Price then in effect shall be reduced to an amount equal to the New Issuance Price. For purposes of determining the adjusted Exercise Price under this Section 3(a), the following shall be applicable: 
 i. Issuance of Options. If the Company in any manner grants any Options and the lowest price per share for which one share of
Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall
be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 3(a)(i), the “lowest price per share for which one
share of Common Stock is issuable upon exercise of such Options or upon conversion, exercise or exchange of such Convertible Securities” shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the
Company with 

  

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respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and upon conversion, exercise or exchange of
any Convertible Security issuable upon exercise of such Option. No further adjustment of the Exercise Price shall be made upon the actual issuance of such Common Stock or of such Convertible Securities upon the exercise of such Options or upon the
actual issuance of such Common Stock upon conversion, exercise or exchange of such Convertible Securities. 
 ii. Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the
Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this
Section 3(a)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange” shall be equal to the sum of the lowest amounts of consideration (if any) received or
receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Exercise Price shall be
made upon the actual issuance of such Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this
Warrant has been or is to be made pursuant to other provisions of this Section 3(a), no further adjustment of the Exercise Price shall be made by reason of such issue or sale. 
 iii. Change in Option Price or Rate of Conversion. If the purchase price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for Common Stock increases or decreases at any time,
the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase
price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 3(a)(iii), if the terms of any Option or Convertible Security that
was outstanding as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable upon exercise,
conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 3(a) shall be made if such adjustment would result in an increase of the Exercise
Price then in effect. 
 iv. Calculation of Consideration Received. In case any Option is issued in connection with the
issue or sale of other securities of the Company, 

  

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together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be
deemed to have been issued for a consideration of $0.0001. If any Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net
amount received by the Company therefor. If any Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value of such
consideration, except where such consideration consists of securities, in which case the amount of consideration received by the Company will be the Closing Sale Price of such security on the date of receipt. If any Common Stock, Options or
Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the
net assets and business of the non-surviving entity as is attributable to such Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or securities will be determined in good faith by
the Board of Directors of the Company. 
 v. Record Date. If the Company takes a record of the Holders of Common Stock
for the purpose of entitling them (A) to receive a dividend or other distribution payable in Options or in Convertible Securities or (B) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date
will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be. 
 b) Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of
doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock
split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by
a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding
immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this
Section 3(b) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of
a subdivision, combination or re-classification. 
  

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 c) Fundamental Transaction. If, at any time while this Warrant is outstanding,
(i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license,
assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or
another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock,
(iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is
effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common
Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental
Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such
Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant or the failure to have amended the Certificate of Incorporation of the Company as described in Section 5). For purposes
of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock
are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or
(3) a Fundamental Transaction in which the Common Stock is converted into a security not traded on a national securities exchange, including, but not limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital
Market, the Company or any Successor Entity (as defined 

  

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below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental
Transaction. “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg determined as of the day of consummation of the
applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement
of the applicable Fundamental Transaction, (C) if applicable, the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any,
being offered in such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The Company will comply with all the
applicable provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act, if required, in connection with any offer by the Company to repurchase the Warrants and to the extent necessary to comply therewith, the time periods
specified herein shall be extended accordingly. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations
of the Company under this Warrant and the Purchase Agreement in accordance with the provisions of this Section 3(c) prior to such Fundamental Transaction and shall, at the option of the Holder of this Warrant, deliver to the Holder in
exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital
stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). 
 Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of
such Fundamental Transaction, the provisions of this Warrant and the Purchase Agreement referring to the “Company” shall refer instead to the “Successor Entity”), and may exercise every right and power of the Company and shall
assume all of the obligations of the Company under this Warrant and the Purchase Agreement with the same effect as if such Successor Entity had been named as the Company herein. 
  

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 d) Calculations. All calculations under this
Section 3 shall be made to the nearest cent or the nearest  1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of
Common Stock (excluding treasury shares, if any) issued and outstanding. 
 e) Notice to Holder. 
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
 ii. Other Events. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common
Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, (E) the Company shall undertake
or shall be aware of the pending consummation of a Fundamental Transaction or (F) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company
shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined below) of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and
the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice
provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The
Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as otherwise set forth herein. 
  

 12 

 Section 4. Transfer of Warrant. 
 a) Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights pursuant to the
Purchase Agreement) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto
duly executed by the Holder or its agent or attorney, funds sufficient to pay any transfer taxes payable upon the making of such transfer and upon the Holder and transferee providing to the Company any factual representations reasonably required by
the Company to establish exemptions from the registration requirements of applicable securities laws relating to such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be canceled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 
 b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which
may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or
exchanges shall be dated the initial issuance date set forth on the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 
 c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the
“Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
 d) Representation by the
Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for
distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act. Each Holder represents that it is
an “accredited investor” within the meaning of Rule 501 under the Securities Act. 
  

 13 

 Section 5. Stockholder Approval. 
 a) The Warrants may not be exercised until the stockholders of the Company have approved (i) the Warrants and (ii) the amendment
to the Company’s Certificate of Incorporation to increase the authorized shares of Common Stock of the Company from 40,000,000 shares to not less than 80,000,000 shares to allow for the issuance and delivery of all shares of Common Stock
issuable upon exercise of the Warrants (the “Stockholder Approval”). Pursuant to the Purchase Agreement, the Company has agreed to use its commercially reasonable efforts to obtain Stockholder Approval as promptly as practicable
following the date hereof. In the event the Company is unable to obtain Stockholder Approval following a period of 120 days from the issuance of the Preferred Stock, the dividend rate payable on such Preferred Stock will automatically increase from
15% to 17.5% until such Stockholder Approval is obtained. Except as provided in the Certificate of Designations with respect to an increase in the applicable dividend rate, Holders of the Warrants will not be entitled to any damages as a result of
the Company’s failure to obtain such Stockholder Approval. 
 Section 6. Miscellaneous. 
 a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other
rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(c)(i). 
 b)
Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. 
 c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day. 
 d) Authorized Shares. The Company covenants that, during the period the Warrant is exercisable, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the
issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing
stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any 

  

 14 

 
applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized,
validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
 Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Warrant
against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value,
(ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be necessary to enable the Company to perform its obligations under this Warrant. 
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in
the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 e) Jurisdiction. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. 
 f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant will have restrictions upon resale imposed by state and federal securities laws. 
 g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of a Holder
shall operate as a waiver of such right or otherwise prejudice a Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and 

  

 15 

 
knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in
otherwise enforcing any of its rights, powers or remedies hereunder. 
 h) Notices. Any notice, request or other
document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. 
 i) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to
purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company. 
 j) Remedies. The Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason
of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 
 k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of the Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time
to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 
 l) Amendment. This
Warrant may not be modified or amended or the provisions hereof waived without the written consent of the Company and the Holder. 
 m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
 n) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant. 
 ******************** 
 [Signature Page Follows] 
  

 16 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly
authorized as of the date first above indicated. 
  

			
	FLOTEK INDUSTRIES, INC.
		
	By:	 	  

	Name:	 	Jesse E. Neyman
	Title:	 	Chief Financial Officer

  

 17 

 NOTICE OF EXERCISE 
  

	TO:	FLOTEK INDUSTRIES, INC. 

 The undersigned hereby elects to
purchase              Warrant Shares of the Company pursuant to the terms of the attached Warrant (which is required to be attached only if exercised in full), and tenders herewith payment
of the exercise price in full, together with all applicable transfer taxes, if any. 
 Payment shall take the form of (check the applicable
box): 
 [            ] in lawful money of the United States; or 
 [            ] (only if permitted pursuant to Section 2(d) of the Warrant) the
cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(d) of the Warrant, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the
cashless exercise procedure set forth in Section 2(d) of the Warrant. 
 Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is specified below: 
  
  
 The Warrant Shares shall be delivered by
physical delivery of a certificate to: 
  
  
  
  
  
  
 [SIGNATURE OF HOLDER] 
  

			
	Name of Investing Entity:	 	  

  

			
	Signature of Authorized Signatory of Investing Entity:	 	  

  

			
	Name of Authorized Signatory:	 	  

  

			
	Title of Authorized Signatory:	 	  

  

			
	Date:	 	  

  
  
  

 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute 
 this form and supply required information. 
 Do not use this form to exercise the warrant.) 
 FOR VALUE RECEIVED, [            ] all of or [            ] shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to 
  

					
	                                       
                                         
                 whose address is	 	
		
	  
	 	
		
	  
	 	
	
	Dated:                     ,
        
			
	Holder’s Signature:	 	  
	 	
			
	Holder’s Address:	 	  
	 	
			
	Signature Guaranteed:	 	  
	 	

 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the
Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.Commercial Manufacturing Agreement

 Exhibit 10.66 
 *Portions of this document marked [*] are requested to be treated confidentially. 
 EXECUTION COPY 
 COMMERCIAL MANUFACTURING AGREEMENT 
 Salix Pharmaceuticals, Inc., Mesalamine Controlled Release Capsules 
 This Commercial Manufacturing Agreement
(“Agreement”) is made effective as of this 9th day of September,
2008 (“Effective Date”), by and between Salix Pharmaceuticals, Inc., a California corporation, with a place of business at 1700 Perimeter Park Drive, Morrisville, NC, 27560 (“Client”), and Catalent Pharma Solutions,
LLC, a Delaware limited liability company with a place of business at 14 Schoolhouse Road, Somerset, New Jersey 08873 (“Catalent”). 
 RECITALS 
 A. Client is a pharmaceutical company that develops, markets and sells pharmaceutical products, including the
Product; 
 B. Catalent provides contract pharmaceutical development, manufacturing, packaging and analytical services to the pharmaceutical
industry; 
 C. Client desires to engage Catalent to provide certain services to Client in connection with the processing of Client’s
Product, and Catalent desires to provide such services, all pursuant to the terms and conditions set forth in this Agreement. 
 THEREFORE, in consideration of the mutual covenants, terms and conditions set forth below, the parties agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 The following terms have the following meanings in this Agreement: 
 1.1 “Acknowledgement” has the meaning set forth in
Section 4.3. 
 1.2 “Affiliate(s)” means, with respect to Client or any third party, any corporation, firm, partnership or other entity
that controls, is controlled by or is under common control with such entity; and with respect to Catalent, Catalent Pharma Solutions, Inc. (“CPS, Inc.”) and any corporation, firm, partnership or other entity controlled by CPS, Inc.
For the purposes of this definition, “control” shall mean the ownership of at least 50% of the voting share capital of an entity or any other comparable equity or ownership interest. 
 1.3 “Agreement” has the meaning set forth in the introductory paragraph, and includes all its Attachments and other appendices (all of which are
incorporated herein by reference) and any amendments to any of the foregoing made as provided herein or therein. 
 1.4 “API” means the
compound 5-Amino Salicylic Acid, as further described in the Specifications, as provided in this Agreement. 
 1.5 “API Inventions” has the
meaning set forth in Article 11. 

 EXECUTION COPY 
  

 1.6 “Applicable Laws” means all laws, ordinances, rules and regulations of the United States
applicable to the Processing or any aspect thereof and the obligations of Catalent or Client, as the context requires, under this Agreement, as amended from time to time, including (A) all applicable federal, state and local laws and
regulations of the United States, (B) the U.S. Federal Food, Drug and Cosmetic Act and (C) cGMP. 
 1.7 “Batch” means a defined
quantity of Product that has been or is being Processed in accordance with the Specifications. 
 1.8 “Catalent” has the meaning set forth
in the introductory paragraph, or any successor or permitted assign. Catalent shall have the right to cause any of its Affiliates to perform any of its obligations hereunder, and Client shall accept such performance as if it were performance by
Catalent; provided that any Affiliate shall, at its cost, comply with all Applicable Laws, including without limitation, the Regulatory Approval for the Product, unless Client requests the addition of the Affiliate to the Regulatory Approval.

 1.9 “Catalent Indemnitees” has the meaning set forth in Section 13.2. 
 1.10 “Catalent IP” has the meaning set forth in Article 11. 
 1.11 “cGMP” means current
Good Manufacturing Practices promulgated by the Regulatory Authorities, including within the meaning of 21 C.F.R. Parts 210 and 211, as amended. 
 1.12
“Client” has the meaning set forth in the introductory paragraph, or any successor or permitted assign. 
 1.13 “Client
Indemnitees” has the meaning set forth in Section 13.1. 
 1.14 “Client IP” has the meaning set forth in Article 11.

 1.15 “Client-supplied Materials” means any materials to be supplied by or on behalf of Client to Catalent for Processing, as provided in
Attachment B, including API. 
 1.16 “Commencement Date” means the first date upon which a Regulatory Authority approves Catalent as
a manufacturer of any Product. 
 1.17 “Confidential Information” has the meaning set forth in Section 10.2. 
 1.18 “Contract Year” means, with respect to Contract Year 1, the period beginning on the Effective Date and ending on December 31st of the first
anniversary of the calendar year following the Commencement Date, and with respect to each Contract Year thereafter, each consecutive calendar year period beginning on January 1st and ending on December 31st. 
 1.19 “Defective Product” has the meaning set forth in Section 5.1. 
 1.20 “Effective Date” has the meaning set forth in the introductory paragraph. 
 1.21 “Exception
Notice” has the meaning set forth in Section 5.1. 
  

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 EXECUTION COPY 
  

 1.22 “Facility” means Catalent’s facility located in Winchester, Kentucky, USA or such other
facility as agreed in writing by the parties. 
 1.23 “Firm Commitment” has the meaning set forth in Section 4.2. 
 1.24 “Invention” has the meaning set forth in Article 11. 
 1.25 “Losses” has the meaning set forth in Section 13.1. 
 1.26 [*]. 
 1.27 “Process” or “Processing” means the compounding, filling or pressing, producing and bulk packaging (but not secondary or retail
packaging) of the API and Raw Materials into Product, in accordance with the Specifications and under the terms of this Agreement. 
 1.28
“Processing Date” means the day on which Product is scheduled to be compounded by Catalent, as identified in an Acknowledgement in accordance with Section 4.3. 
 1.29 “Process Inventions” has the meaning set forth in Article 11. 
 1.30 “Product” means
the fully compounded bulk pharmaceutical product containing the API that has been Processed in accordance with the Specifications. 
 1.31 “Product
Maintenance Services” has the meaning set forth in Section 2.3. 
 1.32 “Purchase Order” has the meaning set forth in Section
4.3. 
 1.33 “Quality Agreement” has the meaning set forth in Section 9.7. 
 1.34 “Raw Materials” means all raw materials, supplies, components and packaging necessary to manufacture and ship Product in accordance with the
Specifications, as provided in Attachment B, but not including Client-supplied Materials. 
 1.35 “Recall” has the meaning set forth
in Section 9.6. 
 1.36 “Regulatory Approval” means any approvals, permits, product and/or establishment licenses, registrations or
authorizations, including approvals pursuant to U.S. Investigational New Drug applications, New Drug Applications and Abbreviated New Drug Applications, as applicable, of any Regulatory Authorities that are necessary or advisable in connection with
the development, manufacture, testing, use, storage, exportation, importation, transport, promotion, marketing, distribution or sale of Product in the Territory. 
 1.37 “Regulatory Authority” means the international, federal, state or local governmental or regulatory bodies, agencies, departments, bureaus, courts or other entities in the United States (including the United States Food
and Drug Administration) responsible for (A) the regulation 

  

  

	*	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 3 

 EXECUTION COPY 
  

 
(including pricing) of any aspect of pharmaceutical or medicinal products intended for human use or (B) health, safety or environmental matters
generally. 
 1.38 “Review Period” has the meaning set forth in Section 5.1. 
 1.39 “Rolling Forecast” has the meaning set forth in Section 4.2. 
 1.40 “Specifications” means the procedures, requirements, standards, quality control testing and other data and the scope of services as set forth in Attachment B, along with any valid
amendments or modifications thereto, in accordance with Article 8. 
 1.41 “Supplier” has the meaning set forth in Section 3.2(B).

 1.42 “Term” has the meaning set forth in Section 16.1. 
 1.43 “Territory” means the United States of America, and any other country that the parties agree in writing to add to this definition of Territory in an amendment to this Agreement. 
 1.44 “Unit Pricing” has the meaning set forth in Section 7.1(B). 
 1.45 “Validation Services” has the meaning set forth in Section 2.1. 
 ARTICLE 2

 VALIDATION, PROCESSING & RELATED SERVICES 
 2.1 Validation Services. Catalent shall perform the qualification, validation and stability services described in Attachment A (the “Validation Services”). Notwithstanding anything to
the contrary in this Agreement, the Validation Services shall apply to Client’s [*] for Contract Year 1. 
 2.2 Supply and Purchase of
Product. Catalent shall Process Product in accordance with the Specifications, the Applicable Laws and the terms and conditions of this Agreement. 
 2.3
Product Maintenance Services. Client will receive product maintenance services (the “Product Maintenance Services”), [*], as applicable. In the event Client does not [*] pursuant to Section 4.1 herein.
Catalent shall keep accurate records of any Product Maintenance Services utilized by Client during a given Contract Year. Beginning at the end of Contract Year 2, either, party may request an annual review of the actual usage of Product Maintenance
Services and Client shall be entitled to audit Catalent’s records regarding Product Maintenance Services rendered to Client. Thereafter, the parties shall [*]. 
 2.4 Other Related Services. Catalent, shall provide such Product-related services, other than Validation Services, Processing or Product Maintenance Services, as agreed to in writing by the parties from time to
time. Such writing shall include the scope and fees for any such services and 

  

  

	*	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 4 

 EXECUTION COPY 
  

 
be appended to this Agreement. The terms and conditions of this Agreement shall govern and apply to such services. 
 ARTICLE 3 
 MATERIALS 

3.1 API. 
 A. Client shall supply to Catalent for
Processing, at Client’s sole cost and risk, API, and any other Client-supplied Materials, in quantities sufficient to meet Client’s requirements for Product, as set forth in Article 4. Client shall deliver such items, together with
associated certificates of analysis, to the Facility no later than [*] days before, but not earlier than [*] months prior to, the Processing Date upon which such items will be used by Catalent. Client shall be responsible at its
expense for securing any necessary export or import clearances or permits required in respect of supply to Catalent of such items. Catalent shall use such items solely and exclusively for Processing of the Product. Prior to delivery of any such
items, Client shall provide to Catalent a copy of all associated material safety data sheets, and shall promptly provide any updates or revisions thereto. 
 B. Within 30 days of receipt of API or any other Client-supplied Materials by Catalent, Catalent shall inspect such items to verify their identity and test such items to confirm that they meet the associated
specifications or certificate of analysis. In the event that Catalent detects a nonconformity with Specifications, Catalent shall give Client prompt oral and written notice of such nonconformity. Catalent shall not be liable for any defects in API
or any other Client-supplied Materials, or in Product as a result of defective API or any other Client-supplied Materials, unless Catalent failed to properly perform the foregoing obligations. Catalent shall follow Client’s reasonable written
instructions in respect of return or disposal of defective API or any other Client-supplied Materials, at Client’s sole cost and risk. 
 C. Client shall retain title to API and any other Client-supplied Materials at all times and shall [*]. 
 3.2 Raw Materials.

 A. Catalent shall be responsible for sourcing and qualifying third-party suppliers of Raw Materials. Catalent shall also be responsible for
procuring, inspecting and releasing adequate Raw Materials as necessary to, meet the Firm Commitment, unless otherwise agreed to by the parties in writing. Unless a particular Raw Material can be replaced with the same raw material from another
supplier, Catalent shall not be liable for any delay in delivery of Product if (i) Catalent, exercising commercially reasonable efforts, is unable to obtain, in a timely manner, a particular Raw Material necessary for Processing and
(ii) Catalent placed orders for such Raw Materials promptly following receipt of Client’s Firm Commitment. In the event that any Raw Material becomes subject to purchase lead time beyond the Firm Commitment time frame, the 

  

  

	*	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 5 

 EXECUTION COPY 
  

 
parties will negotiate in good faith an appropriate amendment to this Agreement, including Sections 3.4 and 4.2. 
 B. In certain instances, Client may require a specific supplier, manufacturer or vendor (“Supplier”) to be used for Raw Material. In
such an event, (i) such Supplier will be identified in the Specifications, (ii) Client shall be responsible for the timeliness, quantity, and quality of supply of Raw Materials from such Supplier, (iii) Catalent shall not be liable
for any defects in Raw Materials from such Supplier, or in Product as a result of such defective Raw Materials, unless Catalent failed to properly perform any testing required by the Specifications, and (iv) the Raw Materials from such Supplier
shall be deemed, for purposes of liability hereunder, Client-supplied Materials. If the cost of the Raw Material from any such Supplier is greater than Catalent’s costs for the same raw material of equal quality from other suppliers, Catalent
shall notify Client in writing and provide Client with documentary evidence of the same. If Client does not, within 20 business days of its receipt of such notice, designate a lower cost supplier identified in such notice, then Catalent shall
[*]. If the documented cost of the Raw Material from any supplier mandated by Client is less than Catalent’s documented cost for the same raw material of equal quality from other suppliers, then Catalent shall [*]. [*] will
be responsible for all costs associated with qualification of any such Supplier who has not been previously [*]. Catalent shall maintain an inventory of Raw Materials in sufficient quantities to be able to supply up to [*] per dose
strength that is included in the Firm Commitment portion of the most recent Client forecast. Notwithstanding anything to the contrary in this Section 3.2(B), a sole supplier of any Raw Material shall not be deemed a Supplier required by Client,
nor shall the Raw Material supplied by such supplier be deemed Client-supplied Materials. 
 3.3 Artwork and Packaging. Client shall provide or
approve, prior to the procurement of applicable components, all artwork, advertising and packaging information necessary for Processing, if any. Such artwork, advertising and packaging information is and shall remain the exclusive property of
Client, and Client shall be solely responsible for the content thereof. Such artwork, advertising and packaging information or any reproduction thereof may not be used by Catalent in any manner other than performing its obligations hereunder.

 3.4 Reimbursement for Materials. In the event of (A) a Specification change for any reason, (B) obsolescence of any Raw Material or
(C) further to Section 16.3(C), termination or expiration of this Agreement, [*] shall bear the cost of any unused Raw Materials (including packaging), so long as [*]. 
 ARTICLE 4 
 [*], PURCHASE ORDERS & FORECASTS 
 4.1 [*]. 
 4.2 Forecast. On or before the
15th day of each calendar month, beginning at least 90 days prior to the anticipated
Commencement Date, Client shall furnish to Catalent a written [*] rolling 

  

  

	*	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

 6 

 EXECUTION COPY 
  

 
forecast of the quantities of Product that Client intends to order from Catalent during such period (“Rolling Forecast”). The first
[*] months 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; provided however that Client shall be obligated to provide purchase orders for the Firm commitment. If Client fails to timely provide a Rolling Forecast, the most recently provided Rolling Forecast shall be deemed
resubmitted for the then-current [*]. 
 4.3 Purchase Orders. 
 A. From time to time as provided in this Section 4.3(A), Client shall submit to Catalent a [*] purchase order for Product specifying the number of Batches to be Processed, the Batch size (to the extent the
Specifications permit Batches of different sizes) and the requested delivery date for each Batch (“Purchase Order”); provided, that no Purchase Order may be for less than [*]. Concurrently with the submission of each
Rolling Forecast, Client shall submit a Purchase Order for the Firm Commitment. Purchase Orders for quantities of Product in excess of the Firm Commitment shall be submitted by Client at least [*] days in advance of the delivery date
requested in the Purchase Order (“Lead Time Requirement”). Catalent shall be obligated to accept any Purchase Order that meets the Lead Time Requirement and that is for a quantity of Product that does not exceed [*] of the quantity
of Product set forth and agreed upon in the Firm Commitment. Catalent may reject Purchase Orders in excess of [*] more than the Firm Commitment. Failure to provide a Purchase Order does not absolve Client of its obligation regarding the Firm
Commitment. 
 B. Catalent shall confirm in writing that a Purchase Order has been accepted within [*] business days of receipt
thereof by written acknowledgement (“Acknowledgement”) that it accepts or rejects such Purchase Order. Each Acknowledgement shall include the Processing Date and shall either confirm the delivery date set forth in the Purchase Order
or set forth a reasonable alternative delivery date; provided that any alternative delivery date proposed by Catalent is within [*] business days of the delivery date set forth in the Purchase Order. Catalent’s failure to timely provide
an Acknowledgement shall be deemed an acceptance of Client’s Purchase Order. 
 C. Notwithstanding Section 4.3(A), Catalent shall
use commercially reasonable efforts to supply Client with quantities of Product which are up to [*]% in excess of the quantities specified in the Firm Commitment, subject to Catalent’s other supply commitments and manufacturing,
packaging and equipment capacity; provided, that Catalent’s failure to supply Client with quantities in excess of the quantities specified in the Firm Commitment shall not constitute a breach of this Agreement by Catalent. 
 D. In the event of a conflict between the terms of any Purchase Order or Acknowledgement and this Agreement, the terms of this Agreement shall control.

  

  

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 4.4 Postponement of Processing Date. Notwithstanding Section 4.5, Catalent reserves the right to postpone
the Processing Date of all, or any part of, a Purchase Order upon written notice to Client, if Client refuses or fails to timely supply conforming API or any other Client-supplied Materials in accordance with Section 3.1. In such event,
Catalent shall exercise commercially reasonable efforts to reschedule the Processing Date within a reasonable time and the parties shall negotiate in good faith a reasonable alternative delivery date for the Product subject to the affected Purchase
Order. 
 4.5 Modification of Purchase Orders. An accepted Purchase Order may be modified only, by a written change order signed by both parties.
Unless otherwise specifically agreed by the parties pursuant to a written change order, both Client shall remain responsible for the Firm Commitment and Catalent shall Process the Product in accordance with the Firm Commitment. 
 4.6 Delivery. Catalent shall use commercially reasonable efforts to deliver in the quantity and on the shipment date specified for it on the Purchase Order, via
the mode(s) of transportation and to the party and destination specified on such Purchase Order. Catalent shall provide Client with as much advance notice as possible (and will use its best efforts to provide at least [*] days advance notice
where possible) if Catalent determines that any Processing will be delayed or eliminated for any reason. 
 4.7 Observation of Processing. In addition
to Client’s audit right pursuant to Section 9.5, Client may send up to [*] representatives to the Facility to observe Processing for a maximum of [*] days per Contract Year (unless otherwise agreed by Catalent in writing), so
long as Client provides Catalent at least [*] days’ advance written notice of the attendance of such Client representatives, including the name and title of each such representative. [*] shall be given access to Catalent’s
Facility only upon Catalent’s consent, which consent shall not be unreasonably withheld. Such representatives shall abide by all Catalent safety rules and other applicable employee policies and procedures, and Client shall be responsible for
such compliance. [*]. 
 4.8 Inability to Supply. If Catalent determines that it will not be able to supply Products to Client in material
satisfaction of the most recent Firm Commitment, Catalent shall promptly notify Client in writing of such determination, which notice shall provide Client with the details on the extent of the expected shortfall of supply, the causes of such
inability to supply, and Catalent’s proposed solution to the problem. Upon such notice of a supply problem, or in any event upon Catalent’s failure to timely deliver Product in accordance with Client’s Purchase Order, (i) Client
and Catalent will immediately meet and work together, in good faith, to identify an appropriate resolution to the supply problem, provided that Section 4.9 shall become applicable in the absence of any such resolution, and (ii) Catalent
shall, during any such shortfall of supply, use commercially reasonable efforts to continue to supply Products to Client. 
 4.9 Back-Up Trigger. In.
the event that Catalent is unable for any reason to timely supply Client with Purchase Orders made in accordance with Article 4 other than for reasons attributable to Client’s negligence, intentional wrongful actions, failure to supply API, or
default 

  

  

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hereunder and such inability to supply lasts longer than [*] consecutive days, then in addition to, and without limitation of, any legal or equitable
remedies available to Client as a result of any breach of this Supply Agreement by Catalent, Client shall be free to engage a third party manufacturer for the Product or manufacture it directly upon written notice to Catalent, and Catalent shall
reasonably cooperate with Client and such third party to effectuate the limited transfer of Product from Catalent to Client or such third parry, as appropriate, to enable Client or the third party to manufacture Product; provided, however, that,
during the Initial Term, upon receiving notice from Catalent that Catalent is in a position to [*]. 
 ARTICLE 5 
 TESTING; SAMPLES; RELEASE 
 5.1 Testing; Releasing;
Rejection. Within [*] days after Catalent completes Processing of a Batch, Catalent shall provide Client or its designee with a certificate of analysis for such Batch. Client shall be responsible for final release of Product (including
testing), at its cost. Following Client’s receipt of a shipment of a Batch, Client or Client’s designee may test samples of such Batch to confirm that the Specifications have been met. Unless within [*] days after Client’s
receipt of a Batch (“Review Period”), Client or its designee notifies Catalent in writing (an “Exception Notice”) that such Batch does not meet the warranty set forth in Section 12.1 (“Defective
Product”), the Batch shall be deemed accepted by Client and Client shall have no right to reject such Batch. However, Client’s acceptance of a Batch shall not preclude a subsequent rejection of such Batch or any portion thereof
following discovery of latent defects in such Batch, including discovery of any substance that would cause Product to be adulterated within the meaning of the United States Food, Drug, and Cosmetic Act. Client must notify Catalent in writing within
[*] days of discovery of a latent defect, and such discovery shall not exceed [*] after Processing. Upon timely receipt of an Exception Notice from Client, Catalent shall conduct an appropriate investigation in its discretion to
determine whether or not it agrees with Client that Product is Defective Product and to determine the cause of any nonconformity. 
 If a shipment or partial
shipment is rejected by Client pursuant to the provisions of this Section 5.1, Client shall return to Catalent at Catalent’s request and expense (or, at the election of Client, destroy and provide evidence of such destruction to Catalent)
any such rejected portion of the Batch. Catalent shall (i) credit the original invoice and credit the amount, if any, paid by Client in respect of the rejected portion of the Batch (provided that if there are no additional Purchase Orders under
this Agreement, the amount of the credit shall be converted into a refund and Catalent shall refund such amount to Client) if Catalent agrees that the applicable portion of the Batch is non-conforming, and (ii) adjust the invoice to Client for
any portion of the Batch that was not rejected, payment of which is due in accordance with the terms of the original invoice. However, the provisions of this Section 5.1 are subject to Limitations of Liability contained in Article 14.

  

  

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 During the pendency of any rejection discussions Catalent shall, at Client’s request, use commercially
reasonable efforts to promptly supply Client with additional Product, which Client shall purchase on the same terms as Product that is the subject of the rejection discussions. 
 5.2 Discrepant Results. In the event of a disagreement between the parties regarding whether Product is Defective Product, which disagreement cannot be resolved by the parties within [*] 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 and its components, including API
and other Client-supplied Materials. The independent party’s results as to whether or not Product is Defective Product 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 borne by [*]. In the event the cause of nonconformity cannot be determined or assigned, the costs associated with the Defective Product and the replacement of the same shall be shared
equally between the parties. 
 5.3 Defective Processing. Catalent will, at Client’s option, either replace any Batch of Defective Product, or
credit any payments made by Client for such rejected Batch. THE OBLIGATION OF CATALENT TO REPLACE DEFECTIVE PRODUCT OR CREDIT PAYMENTS MADE BY CLIENT FOR DEFECTIVE PRODUCT SHALL BE [*]. 
 5.4 Supply of Material for Defective Product. In the event Catalent replaces Defective Product pursuant to Section 5.3, Client shall supply, at
Catalent’s cost, subject to Section 14.1 herein, Catalent with sufficient quantities of API, and other Client-supplied Materials in order for Catalent to complete such replacement Batch. 
 ARTICLE 6 
 DELIVERY 

6.1 Delivery. Catalent shall segregate and store all Product until acceptance as set forth in Section 5.1. Catalent shall tender Product for delivery
[*] the Facility promptly following Catalent’s release of Product. [*] shall be responsible for all costs and risk of loss associated with shipment of the Product. Client shall designate a qualified carrier to Catalent.

 6.2 Failure to Take Delivery. If Client fails to take delivery of any Product on any scheduled delivery date, Catalent shall store such Product as
Client’s agent, and [*]. For each such Batch of stored Product, Client agrees that: (A) [*], (B) [*], (C) [*], (D) [*], and (E) [*]. Within 5 days following a written request
from Catalent, Client shall provide Catalent with a letter confirming items (A) through (E) of this Section for each Batch of stored Product. 
  

  

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 ARTICLE 7 
 PAYMENTS 
 7.1 Fees. In consideration for Catalent performing services hereunder: 
 (A) Client shall pay to Catalent any unpaid fees for Validation Services set forth on Attachment A. Such fees shall be paid within [*] days
following invoice, which invoice shall be submitted to Client by Catalent upon the completion of the relevant phase of the Validation Services. 
 (B) Client shall pay Catalent the unit pricing for Product set forth on Attachment C (“Unit Pricing”). Such fees shall be paid within [*] days following invoice, which invoice shall be submitted to Client by
Catalent upon tender of delivery of Product as provided in Section 6. l. 
 (C) Subject to Section 2.3, Client shall [*] set
forth on Attachment C. Such [*] shall be submitted to Client by Catalent upon the anniversary of each Contract Year during the Term. However, [*] will be [*]. 
 (C) Other Fees. Client shall pay Catalent for all other fees and expenses of Catalent owing in accordance with the terms of this Agreement,
including pursuant to Sections 2.4, [*], [*] and 16.3. Such fees and expenses shall be paid within [*] days [*], which invoice shall be submitted to Client by Catalent as and when appropriate. 
 7.2 Unit Pricing Adjustments. Beginning on January 1, [*], the Unit Pricing shall be subject to an [*] price adjustment, effective on each
anniversary date of the first [*] following the Effective Date. For any increases in Unit Pricing, the increase shall not exceed [*]. Catalent will provide Client with reasonable supporting documentation for such increase at least
ninety (90) days prior to a proposed price increase. Alternatively, for any decreases in Unit Pricing that may result from i) cooperative efforts between Catalent and Client relating to the manufacture of the Product, ii) a decrease in the cost
of labor or Raw Materials, or iii) Catalent experiencing a decrease in the cost of manufacture of the Product, Catalent shall notify Client and grant Client a reduction in Unit Pricing equal to at least [*] of the related cost reduction.

 7.3 Intentionally Omitted. 
 7.4 Payment Terms. Client
shall make payment in U.S. dollars, and otherwise as directed in the applicable invoice. In the event payment on an undisputed invoice is not received by Catalent on or before the [*] day after the [*], then Catalent may, in addition
to any other remedies available at equity or in law, at its option, elect to do any one or more of the following: (A) [*]; (B) suspend any further performance hereunder until such invoice is paid in full; and/or (C) terminate
this Agreement pursuant to Section 16.2(B). For the avoidance of doubt, Catalent shall not be permitted to suspend performance or terminate the Agreement, and [*] on any portion of an invoice disputed in good faith by Client. In the
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invoice, Client shall notify Catalent of the dispute within [*] days of Client’s receipt of the invoice, and the parties shall negotiate in good
faith with respect to any disputed amount. 
 7.5 Taxes. All taxes, duties and other amounts assessed (excluding tax based on net income and franchise
taxes) on services, components, API or Product prior to or upon provision or sale to Catalent or Client, as the case may be, and on any other Client-supplied Materials, are the responsibility of Client, and Client shall reimburse Catalent for all
such taxes, duties or other expenses paid by Catalent or such sums will be added to invoices directed at Client, where applicable. 
 7.6. Client and
Third Party Expenses. Except as may be expressly covered by Product Maintenance Service [*], Client shall be responsible for [*]% of its own and all third-party expenses associated with the development, Regulatory Approvals and
commercialization of Product, including regulatory filings and post-approval marketing studies. 
 7.7 Development Batches. Each Batch produced under
this Agreement, including those necessary to support the validation portion of Client’s submissions for Regulatory Approvals, will be considered to be a “development batch” unless and until Processing has been validated. Client shall
be responsible for the cost of each such Batch, even if such Batch fails to meet the Specifications, unless Catalent was grossly negligent in the manufacture of the out-of Specification Batch. Catalent and Client shall cooperate in good faith to
resolve any problems causing the out-of-Specification Batch. 
 ARTICLE 8 
 CHANGES TO SPECIFICATIONS 
 All Specifications and any changes thereto agreed to by the parties
from time to time shall be in writing, dated and signed by the parties. Any change to the Process requested in writing by Client shall be deemed a Specification change. No change in the Specifications shall be implemented by Catalent, whether
requested by Client or 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 Pricing). Catalent shall respond promptly to any request made by Client for a change in the Specifications, and both parties shall use commercially reasonable, good faith efforts to agree to the terms of such
change in a timely manner. As soon as possible after a request is made for any change in Specifications, Catalent shall notify Client of the costs associated with such change and shall provide such supporting documentation as Client may reasonably
require. Client shall pay all costs associated with such agreed upon changes as set forth in a written amendment to the Specifications signed by the parties. If there is a conflict between the terms of this Agreement and the terms of the
Specifications, this Agreement shall control. Catalent reserves the right to postpone effecting changes to the Specifications until such time as the parties agree to and execute the required written amendment. 
  

  

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 ARTICLE 9 
 RECORDS; REGULATORY MATTERS 
 9.1 Batch Records and Data. Within [*] days following the completion of
Processing of each Batch, Catalent shall provide Client with properly completed copies of Batch records prepared in accordance with the Specifications; provided, that if testing reveals an out-of-Specification result, Catalent shall provide
such Batch records within [*] days following resolution of the out-of Specification result. 
 9.2 Recordkeeping. Catalent shall maintain
materially complete and accurate books, records, test and laboratory data, reports and all other information relating to Processing, including all information required to be maintained by Applicable Laws, in accordance with Catalent standard
operating procedures. Such information shall be maintained in forms, notebooks and records for a period of at least [*] years from the relevant finished Product expiration date or longer if required under Applicable Laws. 
 9.3 Regulatory Compliance. Client shall be solely responsible for and will obtain all Regulatory Approvals, including any applications and amendments in
connection therewith. Catalent will be responsible to maintain all permits and licenses required by any Regulatory Authority with respect to the Facility generally, and for its performance of services hereunder. During the Term, Catalent will assist
Client with all regulatory matters relating to Processing, at Client’s request and at [*] expense. Each party intends and commits to cooperate to satisfy all Applicable Laws relating to Processing. 
 9.4 Governmental Inspections and Requests. Catalent shall promptly advise Client, and in any event within [*], if an authorized agent of any Regulatory
Authority visits the Facility concerning the Processing. Catalent shall furnish to Client a copy of the report by such Regulatory Authority, if any, within [*] business days of Catalent’s receipt of such report. Further, upon receipt of
a Regulatory Authority request to inspect the Facility or audit Catalent’s books and records with respect to Processing, Catalent shall notify Client within [*], and shall provide Client with a copy of any written document received from
such Regulatory Authority within [*] business days. 
 9.5 Client Inspections and Audits. 
 A. During the Term, duly-authorized employees, agents and representatives of Client shall be granted access upon at least [*] prior notice and at
reasonable times during regular business hours to (i) the portion of the Facility where Catalent performs Processing, (ii) relevant personnel involved in Processing and (iii) Processing records described in Section 9.2, in each
case solely for the purpose of inspecting and verifying that Catalent is Processing in accordance with cGMPs, the Specifications and the Product master Batch records. Client shall provide the name and title of each such employee, agent or
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Catalent for any and all acts or omissions of Client’s employees, agents, and representative while on Catalent’s premises. 
 B. Client’s Quality Assurance Manager will arrange audit visits with Catalent Quality Management. Inspections shall be designed to minimize
disruption of operations at the Facility. Client may not conduct an inspection under this Section 9.5 more than [*] during any 12-month period; provided, that additional inspections may be conducted in the event there is a
material quality or compliance issue concerning Product or its Processing. 
 9.6 Recall. In the event Catalent believes a recall, field alert,
Product withdrawal or field correction (“Recall”) may be necessary with respect to any Product provided under this Agreement, Catalent shall immediately notify Client in writing. Catalent will not act to initiate a Recall without
the express prior written approval of Client, unless otherwise required by Applicable Laws. In the event Client believes a Recall may be necessary with respect to any Product provided under this Agreement, Client shall immediately notify Catalent in
writing and Catalent shall provide all necessary cooperation and assistance to Client. The cost of any Recall shall be borne by [*] and [*] shall reimburse [*] for expenses incurred with any Recall, in each case unless such
Recall is caused solely by [*] breach of its obligations under this Agreement or Applicable Laws or its negligence or willful misconduct, then such cost shall be borne by [*] and [*] shall reimburse [*] for expenses
incurred with any Recall. For purposes hereof, such cost shall be limited to reasonable, actual and documented administrative costs incurred by [*] for such Recall and replacement of the Product subject to Recall, in accordance with Article
5; provided, that NEITHER PARTY SHALL BE LIABLE IN ANY EVENT FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES PROVIDED, HOWEVER, FOR PURPOSES OF CLARITY, THAT INDEMNIFIABLE LOSSES UNDER ARTICLE 13 SHALL NOT BE CHARACTERIZED AS
INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL TO CLIENT OR CATALENT SOLELY ON THE BASIS THAT SUCH LOSSES ARISE FROM SUCH DAMAGES SUFFERED BY THE THIRD PARTY. In the event that a Recall of Product, for which [*]. 
 9.7 Quality Agreement. Within [*] months after the Effective Date, the parties shall negotiate in good faith and enter into a Quality Agreement
substantially in the form attached hereto as Attachment D (the “Quality Agreement”). The Quality Agreement shall in no way determine liability or financial 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
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 ARTICLE 10 
 CONFIDENTIALITY AND NON-USE 
 10.1 Mutual Obligation. Catalent and Client each agrees that it will not use the
other party’s Confidential Information except in connection with the performance of its obligations hereunder and will not disclose the other parry’s Confidential Information to any third parry without the prior written consent of the
other party, except as required by law, regulation or court or administrative order; provided, that prior to making any such legally required disclosure, the party making such disclosure shall give the other party as much prior notice of the
requirement for and contents of such disclosure as is practicable under the circumstances. Notwithstanding the foregoing, each party may disclose the other party’s Confidential Information to any of its employees, representatives or Affiliates
that (A) need to know such Confidential Information for the purpose of performing under this Agreement, (B) are advised of the contents of this Article and (C) agree to be bound by the terms of this Article. 
 10.2 Definition. As used in this Agreement, the term “Confidential Information” includes all such information furnished by Catalent or Client, or
any of their respective representatives or Affiliates, to the other party or its representatives or Affiliates, whether furnished before, on or after the Effective Date and furnished in any form, including written, verbal, visual, electronic or in
any other media or manner. Confidential Information includes all proprietary technologies, know-how, trade secrets, discoveries, inventions and any other intellectual property (whether or not patented), analyses, compilations, business or technical
information and other materials prepared by either party, or any of their respective representatives or Affiliates, containing or based in whole or in part on any such information furnished by the other party or its representatives or Affiliates.
Confidential Information also includes the existence of this Agreement and its terms. 
 10.3 Exclusions. Notwithstanding Section 10.2,
Confidential Information does not include information that (A) is or becomes generally available to the public or within the industry to which such information relates other than as a result of a breach of this Agreement, (B) is already
known by the receiving party at the time of disclosure as evidenced by the receiving party’s written records, (C) becomes available to the receiving party on a non-confidential basis from a source that is entitled to disclose it on a
non-confidential basis or (D) was or is independently developed by or for the receiving party without reference to the Confidential Information of the other party as evidenced by the receiving party’s written records. 
 10.4 No Implied License. Except as expressly set forth in Section 10.1, the receiving party will obtain no right of any kind or license under any
Confidential Information of the disclosing party, including any patent application or patent, by reason of this Agreement. All Confidential Information will remain the sole property of the party disclosing such information or data, subject to
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 10.5 Return of Confidential Information. Upon expiration or termination of this Agreement, the party receiving
Confidential Information will cease its use and, upon request, within 30 days either return or destroy (and certify as to such destruction) all Confidential Information of the other party, including any copies thereof, except for a single copy
thereof which may be retained for the sole purpose of determining the scope of the obligations incurred under this Agreement. 
 10.6 Survival. The
obligations of this Article will terminate [*] years from the expiration or termination of this Agreement, except with respect to trade secrets, for which the obligations of this Article will continue for so long as such information remains a
trade secret under applicable law. 
 ARTICLE 11 
 INTELLECTUAL PROPERTY 
 For purposes hereof, “Client IP” means all intellectual property and
embodiments thereof owned by or licensed to Client as of the date hereof or developed by Client other than in connection with this Agreement; “Catalent IP” means all intellectual property and embodiments thereof owned by or licensed
to Catalent as of the date hereof or developed by Catalent other than in connection with this Agreement; “Invention” means any intellectual property developed by either party in connection with this Agreement; “API
Inventions” means any Invention that relates exclusively to the Client IP or Client’s patented API; and “Process Inventions” means any Invention, other than an API Invention, that relates exclusively to the Catalent IP
or relates to developing, formulating, manufacturing, filling, processing, packaging, analyzing or testing pharmaceutical products generally. All Client IP and API Inventions shall be owned solely by Client and no right therein is granted to
Catalent under this Agreement, except that Catalent shall have a non-exclusive, royalty-free license to such items solely to the extent necessary to perform its obligations under this Agreement. All Catalent IP and Process Inventions shall be owned
solely by Catalent and no right therein is granted to Client under this Agreement. The parties shall cooperate to achieve the allocation of rights to Inventions anticipated herein and each party shall be solely responsible for costs associated with
the protection of its intellectual property. 
 ARTICLE 12 
 REPRESENTATIONS AND WARRANTIES 
 12.1 Catalent. Catalent represents, warrants and undertakes to Client that

 A. at the time of delivery by Catalent as provided in Section 6.1, Product shall have been Processed in accordance with Applicable
Laws and in conformance with the Specifications and shall not be adulterated, misbranded or mislabeled within the meaning of Applicable Laws; provided, that Catalent shall not be liable for defects attributable to API or other Client supplied
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 B. it shall not a employ, contract with, or retain any person directly or indirectly to perform any
services under this Agreement if such person (a) is under investigation by the FDA for debarment or is presently debarred by the FDA pursuant to 21 U.S.C. § 335a or its successor provisions, or (b) has a disqualification hearing
pending or has been disqualified by the FDA pursuant to 21 C.F.R. § 312.70 or its successor provisions, and it has not engaged in any conduct or activity that could lead to any of the above-mentioned disqualification or debarment actions. If,
during the Term, Catalent or any person employed or retained by it (i) comes under investigation by the FDA or other Governmental Authority for a debarment action or disqualification, (ii) is debarred or disqualified, or (iii) engages
in any conduct or activity that could lead to any of the above-mentioned disqualification or debarment actions, Catalent shall immediately notify Client of the same. 
 12.2 Client. Client represents, warrants and undertakes to Catalent that: 
 A. to the best of its
knowledge, the API and all other Client-supplied Materials shall have been produced in accordance with Applicable Laws, shall comply, with the Specifications, shall not be adulterated, misbranded or mislabeled within the meaning of Applicable Laws,
and shall have been provided in accordance with the terms and conditions of this Agreement; 
 B. to the best of its knowledge, no material
safety data sheets are applicable to Product, API or any other Client-supplied Materials, except as provided to Catalent in writing by Client in sufficient time for review and training by Catalent; 
 C. all Product delivered to Client by Catalent will be held, used and disposed of by or on behalf of the Client in accordance with Applicable Laws, and
Client will otherwise comply with all laws, rules, regulations and guidelines applicable to Client’s performance under this Agreement and its use of Product provided by Catalent under this Agreement; 
 D. Client will not release any Batch of Product if the required certificates of analysis indicate that Product does not comply with the Specifications;

 E. to its knowledge, Client has all necessary authority to use and to permit Catalent to use pursuant to this Agreement all intellectual
property related to Product, API, all other Client-supplied Materials (including artwork), and the Processing of the foregoing, including any copyrights, trademarks, trade secrets, patents, inventions and developments; 
 F. the content of all artwork provided to Catalent shall comply with all Applicable Laws; and 
 G. to its knowledge, the work to be performed by Catalent under this Agreement will not violate or infringe upon any trademark, tradename, copyright,
patent, trade secret, or other intellectual property or other right held by any person or entity. 
 12.3 Limitations. THE REPRESENTATIONS AND
WARRANTIES SET FORTH IN THIS ARTICLE ARE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES MADE BY EACH PARTY TO THE OTHER PARTY, AND NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES OF ANY KIND 

  

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WHATSOEVER, INCLUDING ANY IMPLIED WARRANTIES OF NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. 
 ARTICLE 13 
 INDEMNIFICATION 

 13.1 Indemnification by Catalent. Catalent shall defend, indemnify and hold harmless Client, its Affiliates, and their respective directors,
officers, employees and agents (“Client 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 (A) any breach of its representations, warranties or obligations set forth in this Agreement or (B) any
negligence or willful misconduct by Catalent or its Affiliates; in each case except to the extent that any of the foregoing arises out of or results from any Client Indemnitee’s negligence, willful misconduct or breach of this Agreement.

 13.2 Indemnification by Client. Client shall defend, indemnify and hold harmless Catalent, its Affiliates, and their respective directors,
officers, employees and agents (“Catalent Indemnitees”) from and against any and all Losses arising out of or resulting from (A) any breach of its representations, warranties or obligations set forth in this Agreement,
(B) any manufacture, packaging, sale, promotion, distribution or use of or exposure to Product, API or any other Client-supplied Materials, including product liability or strict liability, (C) [*], (D) [*],
(E) [*], or (F) any negligence or willful misconduct by Client or its Affiliates; in each case except to the extent that any of the foregoing arises out of or results from any Catalent Indemnitee’s negligence, willful
misconduct or breach of this Agreement. 
 13.3 Indemnification Procedures. All indemnification obligations in this Agreement are conditioned upon the
party seeking indemnification (A) promptly notifying the indemnifying party of any claim or liability of which the party seeking indemnification becomes aware (including a copy of any related complaint, summons, notice or other instrument);
provided, that failure to provide such notice within a reasonable period of time shall not relieve the indemnifying party of any of its obligations hereunder except to the extent the indemnifying party is prejudiced by such failure,
(B) allowing the indemnifying party, if the indemnifying party so requests, to conduct and control the defense of any such claim or liability and any related settlement negotiations (at the indemnifying party’s expense),
(C) cooperating with the indemnifying party in the defense of any such claim or liability and any related settlement negotiations (at the indemnifying party’s expense) and (D) not compromising or settling any claim or liability
without prior written consent of the indemnifying party. 
 ARTICLE 14 
 LIMITATIONS OF LIABILITY 
 14.1 CATALENT’S LIABILITY UNDER THIS AGREEMENT FOR ANY AND ALL
CLAIMS FOR LOST, DAMAGED OR DESTROYED API OR OTHER CLIENT-SUPPLIED 

  

  

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MATERIALS, WHETHER OR NOT SUCH API OR CLIENT-SUPPLIED MATERIALS ARE INCORPORATED INTO PRODUCT, SHALL NOT EXCEED [*]. 
 14.2 CATALENT’S TOTAL LIABILITY FOR [*] UNDER THIS AGREEMENT SHALL IN NO EVENT EXCEED $[*]. 
 14.3 EXCEPT AS SET FORTH IN SECTION 14.2 ABOVE, OR IN THE EVENT OF CATALENT’S [*], CATALENT’S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL IN NO EVENT
EXCEED $[*]. THE LIMITATION OF LIABILITY SET FORTH IN THIS SECTION 14.3 SHALL NOT APPLY TO LOSSES OWING TO CLIENT UNDER SECTION 13.1, WITH RESPECT TO AMOUNTS PAID BY CLIENT TO THIRD PARTIES FOR BODILY INJURY. 
 14.4 NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (PROVIDED, HOWEVER, FOR PURPOSES OF CLARITY,
THAT INDEMNIFIABLE LOSSES UNDER ARTICLE 13 SHALL NOT BE CHARACTERIZED AS INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL TO CLIENT OR CATALENT SOLELY ON THE BASIS THAT SUCH LOSSES ARISE FROM SUCH DAMAGES SUFFERED BY THE THIRD PARTY) OR LOSS OF
REVENUES, REPUTATION, PROFITS OR DATA ARISING OUT OF PERFORMANCE UNDER THIS AGREEMENT, WHETHER IN CONTRACT OR IN TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 ARTICLE 15 
 INSURANCE 
 15.1 Catalent Insurance. Catalent shall, at its own cost and expense, obtain and maintain in full force and effect the following insurance during the Term:
(A) Commercial General Liability Insurance with a per-occurrence limit of not less than an amount equivalent to $[*]; (B) Products and Completed Operations Liability Insurance with a per-occurrence limit of not less than an amount
equivalent to $[*]; (C) Workers Compensation and Employers Liability Insurance, with statutory limits for Workers Compensation and Employers Liability limits of not less than an amount equivalent to $[*] per accident; and
(D) Professional Services Errors & Omissions Liability Insurance with per-claim and aggregate limits of not less than an amount equivalent to $[*]. The parties hereby acknowledge and agree that Catalent may self-insure all or
any portion of the required insurance. In the event that any of the required policies of insurance are written on a claims made basis, then such policies shall be maintained during the entire Term and for a period of not less than [*]
following the expiration or termination of this Agreement. [*]. Catalent shall furnish to Client a certificate of insurance or other evidence of the required insurance [*] as soon as practicable after the Effective Date and within 30
days after renewal of 

  

  

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such policies. Each insurance policy which is required under this Agreement, other than self insurance, shall be obtained from an insurance carrier with an
A.M. Best rating of at least A- VII. 
 15.2 Client Insurance. Client shall, at its own cost and expense, obtain and maintain in full force and effect
the following insurance during the Term: (A) Commercial General Liability Insurance with a per occurrence limit of not less than an amount equivalent to $[*]; (B) Products and Completed Operations Liability Insurance (including
coverage for Product used in clinical trials) with a per occurrence limit of not less than an amount equivalent to $[*]; (C) Workers Compensation and Employers Liability Insurance with statutory limits for Workers Compensation and
Employers Liability limits of not less than an amount equivalent to $[*] per accident; and (D) All Risk Property Insurance, [*], in an amount equal to [*]. The parties hereby acknowledge and agree that Client may
self-insure all or any portion of the above-required insurance. Client shall maintain levels of insurance or self insurance sufficient to meet its obligations under this Agreement. In the event that any of the required policies of insurance are
written on a claims made basis, then such policies shall be maintained during the entire Term and for a period of not less than [*] following the expiration or termination of this Agreement. [*]. Client shall furnish certificates of
insurance evidencing the required insurance policies and [*] to Catalent as soon as practicable after the Effective Date and within 30 days after renewal of such policies. Each insurance policy that is required under this Agreement shall be
obtained, from an insurance carrier with an A.M. Best rating of at least A- VII. 
 ARTICLE 16 
 TERM AND TERMINATION 
 16.1 Term. This Agreement
shall commence on the Effective Date and shall continue until the end of the fifth Contract Year, unless earlier terminated in accordance with Section 16.2 (as may be extended in accordance with this Section, the “Initial
Term”). The Term shall automatically be extended for successive 3-year periods (each, a “Renewal Term”), unless and until one party gives the other party at least 24 months’ prior written notice of its desire to
terminate as of the end of the then-current Term (the Initial Term and any Renewal Terms are herein collectively referred to as the “Term”). 
 16.2 Termination. This Agreement may be terminated immediately without further action: 
 A. by either party if the other
party files a petition in bankruptcy, or enters into an agreement with its creditors, or applies for or consents to the appointment of a receiver, administrative receiver, trustee or administrator, or makes an assignment for the benefit of
creditors, or suffers or permits the entry of any order adjudicating it to be bankrupt or insolvent and such order is not discharged within 30 days, or takes any equivalent or similar action in consequence of debt in any jurisdiction; or 

B. by either party if the other party materially breaches any of the provisions of this Agreement and such breach is not cured within 60 days after
the giving of written notice 

  

  

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requiring the breach to be remedied.; provided, that in the case of a failure of Client to make undisputed payments in accordance with the terms of
this Agreement, Catalent may terminate this Agreement if such payment breach is not cured within 30 days of receipt of notice of nonpayment from Catalent. 
 C. by either party for any reason or no reason upon 24 months prior written notice to the other party. 
 D.
by Client upon written notice to Catalent in the event of the Regulatory Approval for the Product by the FDA or other applicable Governmental Authority. 
 16.3 Effect of Termination. Expiration or termination of this Agreement shall be without prejudice to any rights or obligations that accrued to the benefit of either party prior to such expiration or termination. In the event of a
termination of this Agreement: 
 A. Catalent shall promptly return to Client, at [*] expense and at Client’s direction, any
remaining inventory of Product, API or other Client-supplied Materials; provided, that Catalent shall have no obligation to so return such items until [*]; 
 B. Client shall pay Catalent all invoiced amounts outstanding hereunder, [*]; and 
 C. in the event
that this Agreement is terminated for any reason other than by Client pursuant to Section 16.2(A) or (B) or by Catalent pursuant to Section 16.2(C), Client shall pay Catalent for [*]. 
 16.4 Survival. The rights and obligations of the parties shall continue under Articles 11 (Intellectual Property), 13 (Indemnification), 14 (Limitations of
Liability), 17 (Notice), 18 (Miscellaneous); under Articles 10 (Confidentiality and Non-Use) and 15 (Insurance), in each case to the extent expressly stated therein; and under Sections 7.4 (Payment Terms), 7.5 (Taxes), 7.6 (Client and Third Party
Expenses), 9.2 (Recordkeeping), 9.6 (Recall), 12.3 (Limitations on Warranties), 16.3 (Effect of Termination) and 16.4 (Survival), in each case in accordance with their respective terms if applicable, notwithstanding expiration or termination of this
Agreement. 
 ARTICLE 17 
 NOTICE 
 All notices and other communications hereunder shall be in writing and shall be deemed given: (A) when delivered personally;
(B) when received or refused, if mailed by registered or certified mail (return receipt requested), postage prepaid; or (C) when delivered if sent by express courier service, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only upon receipt thereof): 
  

  

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	To Client:	  	Salix Pharmaceuticals, Inc.
		  	1700 Perimeter Park Drive
		  	Morrisville, NC 27560
		  	USA
		  	Attn: AVP, Pharmaceutical Development and Manufacturing
		
	With a copy to:	  	Salix Pharmaceuticals, Inc.
		  	1700 Perimeter Park Drive
		  	Morrisville, NC 27560
		  	USA
		  	Attn: General Counsel
		
	To Catalent:	  	Catalent Pharma Solutions, LLC
		  	1100 Enterprise Drive
		  	Winchester, KY 40391
		  	USA
		  	Attn: VP, General Manager
		  	Fax: 859-745-6636
		
	With a copy to:	  	Catalent Pharma Solutions, LLC
		  	14 Schoolhouse Road
		  	Somerset, NJ 08873
		  	USA
		  	Attn: General Counsel (Legal Department)
		  	Fax: 732-537-6491

 ARTICLE 18 
 MISCELLANEOUS 
 18.1 Entire Agreement; Amendments. This Agreement, together with the Quality Agreement, as
well as that certain Confidentiality Agreement dated June 1, 2004 between the parties, constitutes the entire understanding between the parties, and supersedes any contracts, agreements or understandings (oral or written) of the parties, with
respect to the subject matter hereof, including, for avoidance of doubt, that certain quotation letter (QTE-SAL.07.1207.00) dated December 7, 2007, and that certain quotation letter (QTE-SAL.09-2665.01). No term of this Agreement may be amended
except upon written agreement of both parties, unless otherwise expressly provided in this Agreement. 
 18.2 Captions; Certain Conventions. The
captions in this Agreement are for convenience only and are not to be interpreted or construed as a substantive part of this Agreement. Unless otherwise expressly provided herein or the context of this Agreement otherwise requires, (A). words of any
gender include each other gender, (B) words such as “herein”, “hereof’, and “hereunder” refer to this Agreement as a whole and not merely to the particular provision in which such words appear, (C) words using
the singular shall include the plural, and vice versa, (D) the words “include(s)” and “including” shall be deemed to be followed by the phrase “but 

  

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not limited to”, “without limitation” or words of similar import, (E) the word “or” shall be, deemed to include the word
“and” (e.g., “and/or”) and (F) references to “Article,” “Section,” “subsection,” “clause” or other subdivision, or to an Attachment or other appendix, without reference to a document
are to the specified provision or Attachment of this Agreement. This Agreement shall be construed as if it were drafted jointly by the parties. 
 18.3
Further Assurances. The parties agree to execute, acknowledge and deliver such further instruments and to take all such other incidental acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement.

 18.4 No Waiver. Failure by either party to insist upon strict compliance with any term of this Agreement in any one or more instances will not be
deemed to be a waiver of its rights to insist upon such strict compliance with respect to any subsequent failure. 
 18.5 Severability. If any term of
this Agreement is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining terms of this Agreement will continue in full force and effect. 
 18.6 Independent Contractors. The relationship of the parties is that of independent contractors, and neither party will incur any debts or make any commitments for the other party except to the extent
expressly provided in this Agreement. Nothing in this Agreement is intended to create or will be construed as creating between the parties the relationship of joint ventures, co-partners, employer/employee or principal and agent. Neither party shall
have any responsibility for the hiring, termination or compensation of the other party’s employees or contractors or for any employee benefits of any such employee or contractor. 
 18.7 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties, their successors and permitted assigns. Neither party may assign this Agreement, in whole or in part,
without the prior written consent of the other party, except that either party may, without the other party’s consent, assign this Agreement to an Affiliate or to a successor to substantially all of the business or assets of the assigning party
or the assigning party’s business unit responsible for performance under this Agreement. 
 18.8 No Third Party Beneficiaries. This Agreement
shall not confer any rights or remedies upon any person or entity other than the parties named herein and their respective successors and permitted assigns. 
 18.9 Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, USA excluding its conflicts of law provisions. 
 18.10 Alternative Dispute Resolution. If any dispute arises between the parties in connection with this Agreement, such dispute shall be presented to the respective presidents or senior executives of Catalent
and Client for their consideration and resolution. If such parties cannot reach a resolution of the dispute, then such dispute shall be referred to non-binding mediation. If the parties are unable to resolve their dispute at mediation within 120
days following referral of such dispute, either party shall be free to pursue any and all legal remedies available to such party. 
  

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 18.11 Prevailing Party. In any dispute resolution proceeding between the parties in connection with this
Agreement, the prevailing party will be entitled to recover its reasonable attorney’s fees and costs in such proceeding from the other party. 
 18.12
Publicity. Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated hereby without the other party’s express prior written consent, except as required under Applicable
Laws, by any governmental agency or by the rules of any stock exchange on which the securities of the disclosing party are listed, in which case the party required to make the press release or public disclosure shall use commercially reasonable
efforts to obtain the approval of the other party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or making the public disclosure. 
 18.13 Force Majeure. Except as to payments required under this Agreement, neither party shall be liable in damages for, nor shall this Agreement be terminable or
cancelable by reason of, any delay or default in such party’s performance hereunder if such default or delay is caused by events beyond such party’s reasonable control, including acts of God, law or regulation or other action or failure to
act of any government or agency thereof, war or insurrection, civil commotion, destruction of production facilities or materials by earthquake, fire, flood or weather, labor disturbances, epidemic or failure of suppliers, public utilities or common
carriers; provided, that the party seeking relief under this Section shall immediately notify the other party of such cause(s) beyond such party’s reasonable control. The party that may invoke this Section shall use commercially
reasonable efforts to reinstate its ongoing obligations to the other party as soon as practicable. If the cause(s) shall continue unabated for [*], then both parties shall meet to discuss and negotiate in good faith what modifications to this
Agreement should result from such cause(s). 
 18.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which will be
deemed an original but all of which together will constitute one and the same instrument. Any photocopy, facsimile or electronic reproduction of the executed Agreement shall constitute an original. 
 [Signature page follows] 
  

  

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 IN WITNESS WHEREOF, the parties have caused their respective duly authorized representatives
to execute this Agreement effective as of the Effective Date. 
  

									
	Catalent PharmaSolutions, LLC	 		 	Salix Pharmaceuticals, Inc.
					
	By:	 	 /s/ Ian Muir
	 		 	By:	 	  

					
	Name:	 	 Ian Muir
	 		 	Name:	 	  

					
	Its:	 	 VP Modified Release
	 		 	Its:	 	  

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 IN WITNESS WHEREOF, the parties have caused their respective duly authorized representatives
to execute this Agreement effective as of the Effective Date. 
  

									
	Catalent Pharma Solutions, LLC	 		 	Salix Pharmaceuticals, Inc.
					
	By:	 	  
	 		 	By:	 	 /s/ William P. Forbes

					
	Name:	 	  
	 		 	Name:	 	 William P. Forbes

					
	Its:	 	  
	 		 	Its:	 	 VP, R&D and CDO

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 ATTACHMENT A 
 VALIDATION SERVICES 
 See attached. 

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 [*] 
  

  

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