Document:

Exhibit 10.7

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM 

THE EXHIBIT
BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE 

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

 INFORMATION HAS BEEN
MARKED WITH “[***].

 

LICENSE AND SUPPLY AGREEMENT

 

BY AND BETWEEN

 

DR. REDDY'S LABORATORIES LTD.

 

AND

 

JOURNEY MEDICAL CORPORATION

 

DATED AS OF

 

JULY 29, 2020

 

    

     

    

 

LICENSE AND SUPPLY AGREEMENT

 

This License and Supply Agreement (this “Agreement”),
is dated as of July 29, 2020 (the “Effective Date”), by and between Dr. Reddy’s Laboratories Ltd. (the “Licensor”) and Journey
Medical Corporation, a Delaware corporation located at 9237 East Via De Ventura Blvd., Suite 105, Scottsdale, AZ 85258, USA (the “Licensee”).
Licensor and Licensee may each be referred to individually as a “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS, the Licensor owns and markets the
Licensed Product (as defined below);

 

WHEREAS, the Licensee desires (i) to receive
the exclusive right and license to Commercialize the Product in the Territory (with each capitalized term as defined below) and (ii) for
Licensor to manufacture and supply the Product to Licensee for such purpose, each upon the terms and subject to the conditions set forth
herein; and

 

WHEREAS, in order to increase access to
the Licensed Product in the Territory, the Parties are entering into this Agreement and Licensor is granting the rights provided herein
to Licensee upon the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1          Definitions.
Capitalized terms used in this Agreement have the meanings specified in Schedule 1.1 to this Agreement. Certain other terms are defined
in the text of this Agreement.

 

Section 1.2          Other
Definitional and Interpretive Provisions.

 

(a)         The
words "hereof", "herein", "hereto" and "hereunder" and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(b)        The
terms defined in the singular shall have a comparable meaning when used in the plural and vice versa.

 

(c)         The terms "dollars" and "$" shall mean United States of America dollars.

 

(d)         The
term "including" (and with correlative meaning "include") shall mean "including, without limitation."

 

    

     

    

 

(e)         Reference
to any Person includes such Person's successors and assigns but, if applicable, only if such successors and assign are permitted by this
Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity.

 

(f)          Reference
to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended, modified
or supplemented and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof.

 

(g)         When
a reference is made in this Agreement to an Article, a Section, an Exhibit or a Schedule, such reference shall be to an Article of, a
Section of, an Exhibit to or a Schedule to, this Agreement unless otherwise indicated.

 

(h)         The
Parties acknowledge that: (i) this Agreement is the result of negotiations between the Parties and shall not be deemed or construed as
having been drafted by any one Party; (ii) each Party and its counsel have reviewed and negotiated the terms and provisions of this Agreement
(including any exhibits and schedules attached hereto) and have contributed to its revision; (iii) the rule of construction to the effect
that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (iv)
the terms and provisions of this Agreement shall be construed fairly as to all Parties and not in favor of or against any Party, regardless
of which Party was generally responsible for the preparation of this Agreement.

 

ARTICLE II

LICENSE

 

Section 2.1          License.
Subject to the terms of this Agreement, including the limitations set forth in Section 2.2 and 2.3, Licensor hereby grants to Licensee
a non-transferable, non-assignable, non-sublicensable (except in accordance with this Section 2.1), exclusive (even as to Licensor) right
and license, under the Product [***] and any intellectual property rights controlled by Licensor, to market, promote, import, export,
offer to sell, sell, have sold and distribute ("Commercialize") a branded version of the Licensed Product under the
Licensee Trade Name (the "Product") in the Territory and in accordance with this Agreement. The Parties expressly agree
that Licensor (and its applicable Affiliates) shall not have any restrictions on its ability to Commercialize the Licensed Product in
the Territory under Licensor's label which contains the DRL Trademarks (the "DRL Product"), which trademarks Licensor
shall be permitted to update at its sole option. Licensee will sell the Product only in the Territory and will not directly or indirectly
sell or otherwise distribute the Product outside of the Territory. The license provided herein shall terminate at the end of the Term.
Licensee shall not sublicense its rights under this Agreement without the prior written consent of Licensor (not to be unreasonably withheld,
conditioned or delayed) other than to an Affiliate of Licensee, provided further that (i) any sublicense provided hereunder is in writing
and its terms are consistent with the terms and conditions of this Agreement; (ii) Licensee shall be responsible to Licensor for the
performance of its sublicensees; (iii) any act or omission by a sublicensee that would be a breach of this Agreement had it been performed
(or not performed) by Licensee shall be treated as a breach of this Agreement by Licensee; (iv) upon request, Licensee will provide Licensor
a copy of any such sublicense (with reasonable redaction to protect any financial or other sensitive information), to permit Licensor
to assess such sublicenses compliance with the terms and conditions of this Agreement; and (v) sublicensee is not a Direct Competitor
of Licensor. Any transfer of Licensee's rights hereunder shall be permitted solely in accordance with Section 14.1.

 

    

     

    

 

Section 2.2         Customers.
Licensee shall only sell or have sold the Product to Specialty Pharmacies, provided however, that Licensee shall be permitted to sell
up to a maximum of [***] ([***]%) percent of its total annual volume of Units of Product in a Calendar Year to Wholesalers (the "Wholesaler
Limit"). The Wholesaler Limit shall be measured on a Calendar Year basis. Licensor acknowledges and agrees that as long as Licensee
is using Commercially Reasonable Efforts not to exceed the Wholesaler Limit, if the Wholesaler Ratio in a Calendar Year does not exceed
[***] ([***]%) percent, Licensee shall not be deemed to be in material breach of this Section 2.2. Licensee acknowledges and agrees,
that notwithstanding the foregoing sentence or anything to the contrary provided herein or elsewhere, if the Wholesaler Ratio exceeds
(i) [***] ([***]%) for three (3) consecutive Calendar Years or (ii) [***] ([***]%) percent in any Calendar Year, it shall be deemed a
material breach of this Agreement, regardless of the efforts expended by Licensee.

 

Section 2.3          Trade
Name; Trademarks.

 

(a)         Licensee
shall sell the Product under a trade name owned by Licensee (the "Licensee Trade Name"), which Licensee Trade Name
shall be subject to the prior approval of (i) Licensor, not to be unreasonably withheld (it being understood that, as of the
Effective Date, Licensor has approved of the trade name(s) set forth in Schedule 2.3(a)), (ii) the members, sponsors and
administrators of the REMS Program (as applicable) and (iii) the applicable Governmental Entities in the Territory. Licensee shall
sell the Product in its own trade dress, trademarks, service marks, corporate names, logos, slogans and NDC/labeler codes, all of
which shall not contain the DRL Trade Dress or any DRL Trademark (all of the foregoing used by Licensee on or for the Product,
together with the Licensee Trade Name, the "Licensee Trademarks"); provided that, the foregoing restriction shall
be subject to Sections 4.3 and 13.2. Subject to Licensor's limited rights with respect to [***]-Related Trade Name Submissions, as
further described below, Licensee shall own all rights in the Licensee Trademarks and shall be solely responsible for any and all
trademark filings, maintenance, payments and other actions required to be taken in connection with the USPTO or other relevant
Governmental Authorities to maintain in full force and effect all intellectual property rights relating to the Licensee Trademarks
(collectively, "Licensee Trademark Submissions").

 

(b)        As
soon as practicable following the date hereof, Licensee shall provide Licensor with its requested Licensee Trade Name, and upon Licensor's
approval in accordance with Section 2.3(a) (which, for clarity, shall be required only in the event the proposed Licensee Trade Name
is different from the trade name(s) set forth in Schedule 2.3(a)), the Licensor and Licensee shall work together in good faith
to enable Licensor to make any and all necessary submissions, notifications and/or amendments under the Product [***] (to the extent
not already obtained as of the Effective Date) to Governmental Entities (other than the USPTO) in each case, as required to Commercialize
the Product in the Territory with the Licensee Trade Name (each an "[***]-Related Trade Name Submission" and collectively,
the "[***]-Related Trade Name Submissions"). The Parties agree and acknowledge that the [***]-Related Trade Name Submission
relating to the trade name set forth in Schedule 2.3(a) shall be made by Licensor by filing a prior- approval supplement with
the FDA (the "Accutane PAS"). As soon as practicable following the Effective Date, Licensor and Licensee shall work
together in good faith to enable Licensor to take such actions necessary to include the Product (under the Licensee Trade Name) in the
REMS Program which may include amendments to the REMS Program and related documents and updates to the REMS Program necessary to permit
Licensee to Commercialize the Product under the Licensee Trade Name in the Territory (collectively, the "REMS Related Approvals").
Licensor shall be responsible for any initial filing fees due upon filing of the Accutane PAS, if any. Licensee shall be responsible
for any and all other costs and expenses associated with (i) any [***]-Related Trade Name Submissions and (ii) otherwise obtaining Regulatory
Approval of the Licensee Trade Names. The fees and expenses related to the REMS Related Approvals shall be allocated between the Parties
as described in Section 4.8. Licensor shall own all [***]-Related Trade Name Submissions and any Regulatory Approvals obtained in connection
therewith (excluding, for clarity, any Licensee Trademark Submissions) ("[***]-Related Trade Name Approvals") and the
REMS Related Approvals, all of which shall be deemed Regulatory Documentation. The Parties agree that Licensor shall make all [***]-Related
Trade Name Submissions and other actions to obtain REMS Related Approvals as required to enable the sale of Product in the Territory
under the Licensee Trade Name, and Licensee shall not be permitted to make any [***]-Related Trade Name Submissions or other submissions
to any Governmental Authorities or REMS Program, except for Licensee Trademark Submissions or such other submissions as the Parties may
mutually agree in writing. Licensor shall not be permitted to Commercialize any Products containing any Licensee Trademarks. This Section
2.3(b) shall not apply to Licensee's obligation to register as a "wholesaler" under the REMS Program, which shall be the responsibility
of Licensee.

 

    

     

    

 

Section 2.4          Exclusivity.
During the Term:

 

(a)         Licensor will not grant to any Third Party the right to Commercialize the Licensed Product under the Product [***], other than
with respect to the  DRL Product, in the Territory; and

 

(b)         Subject
to the terms and conditions of this Agreement (including Section 5.2(h)), Licensee shall purchase its requirements of Products exclusively
from Licensor.

 

Section 2.5          Non-Compete. During the Non-Compete Period, Licensee shall not, and shall cause its Affiliates not to, develop or have developed
for themselves or any Third Party any generic, branded or private labeled version of the Licensed Product or any other generic, branded
or private labeled product, in each case, (i) containing Isotretinoin as the sole active ingredient, (ii) that is in any of the same dosage
strengths as the Licensed Product, and (iii) that is AB Rated with respect to either the Licensed Product, the reference listed drug set
forth on the [***]or [***] ((i)-(iii) collectively, a "Competitive Product"). Licensee shall not Knowingly provide to
any Person any assistance or information relating to the development, manufacture and supply of the Licensed Product, the [***] or [***],
in order to facilitate the development, manufacture, or commercialization of a Competitive Product in violation of this Section 2.5 (it
being understood that this restriction shall not apply to, and shall not be construed to limit in any way, Licensee's or its Affiliates'
exercise of its or their rights or performance of its or their obligations under this Agreement with respect to the Licensed Product,
including in connection with Section 5.2(h)).

 

    

     

    

 

ARTICLE III

MILESTONES AND ROYALTIES

 

Section 3.1          Milestones.

 

(a)         Milestone
Payments; Events. In addition to any other amounts due and payable to the Licensor hereunder, as consideration for the license provided
herein, subject to the terms and conditions of this Agreement, Licensee shall pay to the Licensor the following non-refundable, non-creditable
amounts (each, a "Milestone Payment") upon the achievement (except as adjusted as set forth below) by or on behalf of
the Licensee or its Affiliates, or its or their permitted sublicensees, if any, of the following events (each, a "Milestone Event"):

 

(i)             one
million dollars ($1,000,000) upon the execution of this Agreement (the "Upfront Payment");

 

(ii)            [***] ($[***]) upon approval of the Accutane PAS by the FDA (as evidenced by receipt of written correspondence (or similar) from
the FDA stating that the Accutane PAS has been approved, which correspondence Licensor shall promptly provide to Licensee), provided,
however, that if Licensee voluntarily determines to use a Licensee Trade Name other than the trade name set forth on Schedule 2.3(a)
prior to the FDA making a final determination on whether to approve or reject such trade name, such amount shall be due upon Licensee's
notification to Licensor that Licensee has elected to use an alternative trade name (the "Accutane PAS Milestone");

 

(iii)           [***]
($[***]) upon the notification by Licensor or its applicable Affiliate that the Initial Firm Order of Product is available for pick-up
or shipment to Licensee as a Finished Product from the third party finished packaging manufacturer (in accordance with the order) (the
 "Initial Order Milestone");

 

(iv)           [***] ($[***]) upon the eighteen (18) month anniversary of the Effective Date;

 

(v)            [***] ($[***]) upon the twenty-four (24) month anniversary of the Effective Date;

 

(vi)           [***] ($[***]) upon the thirty-six (36) month anniversary of the Effective Date;

 

(vii)          [***]
($[***]) upon attainment of $[***] aggregate Net Sales of Product by or on behalf of Licensee (or its Affiliates, or its or their permitted
sublicenses, if any) in a Calendar Year;

 

(viii)         [***] ($[***]) upon attainment of $[***] dollars aggregate Net Sales of Product by or on behalf of Licensee (or its Affiliates,
or its or their permitted sublicenses, if any) in a Calendar Year; and

 

    

     

    

 

(ix)           [***] ($[***]) upon attainment of $[***] aggregate Net Sales of Product by or on behalf of Licensee (or its Affiliates, or its
or their permitted sublicenses, if any) in a Calendar Year.

 

(b)          Adjustments to Milestones Payments.

 

(i)             Notwithstanding
the foregoing, in the event that the FDA rejects the trade name set forth in Schedule 2.3(a) submitted pursuant to the Accutane
PAS (except in a case where Licensee voluntarily determines to use a Licensee Trade Name other than the trade name set forth on Schedule
2.3(a) prior to the FDA making a final determination on whether to approve or reject such trade name) (an "Accutane PAS Rejection"),
the Milestone Payments and Milestone Events set forth in Section 3.1(a) shall be modified as follows:

 

(A)           The
Milestone Payment for the Accutane PAS Milestone, as set forth in Section 3.1(a)(ii), shall no longer be payable by Licensee;

 

(B)            The
Milestone Payment set forth in Section 3.1(a)(iv) shall remain [***] ($[***]) and shall be payable upon the twenty-four (24) month anniversary
of the Effective Date;

 

(C)            The Milestone Payment set forth in Section 3.1(a)(v) shall be increased to [***] ($[***]) and shall be due on the thirty (30) month
anniversary of the Effective Date;

 

(D)            The
Milestone Payment set forth in Section 3.1(a)(vi) shall remain [***] ($[***]) and shall be payable upon the earlier to occur of (x) upon
attainment of $[***] in aggregate Net Sales of Product by or on behalf of Licensee (or its Affiliates, or its or their permitted sublicenses,
if any) in a Calendar Year or (y) upon attainment of $[***] cumulative Net Sales of Product by or on behalf of Licensee (or its Affiliates,
or its or their permitted sublicenses, if any); and

 

(E)            The
Milestone Payment for the Initial Order Milestone, as set forth in Section 3.1(a)(iii), shall not be modified.

 

(F)            The
Milestone Payments set forth in Section 3.1(a)(vii), Section 3.1(a)(viii) and Section 3.1(1)(ix) shall not be modified.

 

    

     

    

 

(ii)            In
the event that the Initial Order Milestone is delayed beyond the ten (10) month anniversary of the Effective Date other than as a result
of (A) Licensee's failure to promptly provide Licensor or its Affiliates with any documentation or information reasonably requested in
writing (which shall include notification by e-mail) by Licensor (x) in order to supply the Initial Firm Order (including, preparation
of the final digital proofs for secondary packaging, pursuant to Section 4.3), provided that Licensor submits such request with reasonable
advance notice to Licensee or (y) relating to any response or submission to any Governmental Entity to which Licensee has an obligation
to provide or is required to prepare a response for Licensor to provide to such Governmental Entity, including to the extent specified
as such in Section 4.3 and Section 4.7, (B) any breach of any covenant hereunder by Licensee of which Licensor has notified Licensee
in writing (which shall include notification by e-mail) and Licensee has failed to cure within seven (7) Business Days after receipt
of such notice, and which breach directly causes a delay in achieving the Initial Order Milestone (which includes, but is not limited
to, the failure of Licensee to provide timely Forecasts in accordance with Section 5.1 or place the Initial Order (defined below) in
accordance with the remainder of this Section 3.1(b)), or (C) any delays attributable to customs clearance of Products that were otherwise
delivered to Licensee in a timely manner in accordance with Sections 5.2 and 5.4 (each of (A), (B) and (C), a "Permissible Delay"),
each of the Milestone Payments payable pursuant to Sections 3.1(a)(iv), (v), and (vi) above shall be deferred by the amount of time equal
to the number of days between the ten (10) month anniversary and the achievement of the Initial Order Milestone. Following an Accutane
PAS Rejection, the term "ten (10) month" in the foregoing sentence shall be replaced with "sixteen (16) month" and
shall only apply to the milestones set forth in Sections 3.1(a)(iv) and 3.1(a)(v), as adjusted by Sections 3.1(b)(i)(B) and 3.1(b)(i)(C),
respectively.

 

(A)            Notwithstanding
the foregoing and except as set forth in Section 3.1(b)(ii)(B), no Milestone Payments shall be deferred pursuant to Section 3.1(b)(ii)
unless Licensee has placed the initial Firm Order for Product with Licensor (the "Initial Firm Order") and a corresponding
purchase order with the third party finished packaging manufacturer relating to such Initial Firm Order (the "Initial Packaging
Order"), on or before the three (3) month anniversary of the Effective Date (the "Initial Order Date").

 

(B)             In
the event that prior to the Initial Order Date an Accutane PAS Rejection occurs (or the FDA provides written notice to Licensor that
an Accutane PAS Rejection will occur), Licensee shall not be required to place the Initial Firm Order or Initial Packaging Order prior
to the Initial Order Date.

 

(C)            The Parties expressly agree that in order for Licensor to complete the Initial Order Milestone on or prior to the ten (10) month
anniversary of the Effective Date, Licensee will be required to place the Initial Packaging Order on or before the Initial Order Date,
and such Initial Packaging Order may be "at-risk" (prior to the receipt of all Licensee Regulatory Approvals).

 

(iii)           As
a way of example, if there is no Accutane PAS Rejection and the Initial Order Milestone is achieved on the date that is forty-five days
after the ten (10) month anniversary, the Milestone Payments payable pursuant to Sections 3.1(a)(iv), (v), and (vi) shall each be due
forty-five days following the time period set forth in each such Section above.

 

    

     

    

 

(c)         If Licensor fails to achieve the Initial Order Milestone by the eighteen (18) month anniversary of the Effective Date (or, in
the event of an Accutane PAS Rejection, by the twenty-four (24) month anniversary of the Effective Date), except if such failure results
solely from a Permissible Delay, Licensee shall have the right to terminate this Agreement, upon thirty (30) days' written notice to
the Licensor, and Licensor shall refund to Licensee [***] percent ([***]%) of the Upfront Payment promptly, but in any event within thirty
(30) Business Days after the effective date of termination.

 

Section 3.2          Royalty Payments.

 

(a)         In
addition to any other amounts due hereunder, subject to the terms and conditions of this Agreement, in consideration of the license provided
herein, each Calendar Quarter, the Licensee shall pay to the Licensor non-refundable, non-creditable amounts based upon the cumulative
total Net Sales of the Product in the Territory in the Calendar Year to which such Calendar Quarter relates (each a "Royalty
Payment"). Each Royalty Payment payable in a Calendar Quarter shall be equal to the sum of (i) and (ii) below:

 

(i)            An
amount equal to the product obtained by multiplying:

 

(A)            (1)
[***], by

 

(B)             [***]:

 

	Table 3.2(a)(i)
	Amount of incremental cumulative total aggregate Net Sales of the Product in the Territory in the Calendar Year to which the Calendar Quarter relates:	The percentage rate applicable to such total aggregate Net Sales (but only for that portion of Net Sales within such range) to calculate the Royalty Payment is:
	$[***]– $[***]	[***]%
	$[***]– $[***]	[***]%
	Greater than $[***]	[***]%

 

([***]x [***]) x ([***])

 

(ii)           An amount equal to the product obtained by multiplying:

 

(A)            (1)
[***] by (2) [***], by

 

(B)             by
[***];

 

([***]) x [***]%

 

Section 3.3          Payment of Milestone Payments and Royalty Payments.

 

(a)         Each
of the Milestone Payments due and payable under Section 3.1 shall be paid by the Licensee to the Licensor promptly (but no more than
thirty (30) days) following the occurrence of the corresponding Milestone Event, except that the Milestone Payment due as pursuant
to Section 3.1(a)(i) above shall be payable within fifteen (15) days following the Effective Date. The Licensee shall provide notice
to the Licensor of the occurrence of the Milestone Event set forth in Section 3.1 prior to, or no later than on, the date of the
payment of the corresponding Milestone Payment.

    

     

    

 

(b)         Each of the Royalty Payments due and payable under Section 3.2 shall be paid by the Licensee to the Licensor promptly (but no more
than forty-five (45) days) following the end of the Calendar Quarter to which they relate to. The Licensee shall provide a notice to the
Licensor prior to, or no later than on, the date such of payment, which notice shall provide sufficient details to permit confirmation
by the Licensor of the accuracy of the payments made.

 

(c)         All
Royalty Payments and Milestone Payments shall be made by wire transfer of immediately available funds, in United States dollars, to an
account designated in writing by the Licensor (such designation to be made at least two (2) Business Days prior to the date on which
such payment is due).

 

Section 3.4          Milestone
and Royalty Information, Sales Reports, Audits.

 

(a)         The Licensee shall, and shall cause its Affiliates, and its and their permitted sublicensees to keep reasonable, correct and complete
books, records and documents (whether in hardcopy, electronic or other form) substantiating the achievement (or non-achievement) of the
Milestone Events and the Net Sales amounts recognized in each Calendar Year for the Product in the Territory, as related to the Royalty
Payments and Milestone Events (the "Milestone and Royalty Information") and shall maintain such Milestone and Royalty
Information until the third (3rd) year following the end of the Calendar Year to which such Milestone and Royalty Information relates.
The Milestone and Royalty Information shall also include sufficient details and documentation to determine the volume of Product sold
to Wholesalers and Specialty Pharmacies and the Net Sales calculations.

 

(b)         During
the Term and continuing until the first Calendar Year following the Calendar Year in which the Licensor has received all Milestone Payments
and Royalty Payments, the Licensee shall provide the Licensor, (i) on a Calendar Quarterly basis together with the corresponding Royalty
Payments, not later than forty-five (45) days after the end of each Calendar Quarter; and (ii) on an annual basis, not later than sixty
(60) days after the end of each Calendar Year, the annual Sales Report (the Sales Report due pursuant to (ii) being an "Annual
Sales Report"). "Sales Reports" shall mean reasonably detailed quarterly (or annual, as applicable) reports
of the aggregate gross sales and aggregate Net Sales of the Product in the Territory including the customer type (i.e. Wholesaler, Specialty
Pharmacy), for such Calendar Quarter or Calendar Year, as applicable. All Annual Sales Reports shall also include separate line items
for the volume of Product by customer type, as well as the volume of Product sold to each Wholesaler and cumulative sales volume for
all Specialty Pharmacies, together with a classification of each customer as a Wholesaler or Specialty Pharmacy. The Annual Sales Reports
delivered at the end of each Calendar Year shall also include an annual certification, executed by an officer of the Licensee, certifying
the Wholesaler Ratio and that sales of Product by the Licensee, its Affiliates, and its or their permitted sublicensees, if any, did
not exceed the Wholesaler Limit (or, in the event that the volume of sales of Product did exceed the Wholesaler Limit, such limit was
breached).

 

    

     

    

 

(c)         During the Term and for a period of two (2) Calendar Years thereafter, the Licensor or an independent certified public accountant
selected by Licensor and reasonably acceptable to Licensee (not to be unreasonably withheld), (provided all of such Persons shall be
subject to the obligations of confidentiality as set forth herein), if any, shall have reasonable access to, and shall be able to review
and audit, once every twelve (12) months upon no less than fifteen (15) days written notice and during normal business hours, the books,
records, documents (whether in hardcopy, electronic or other form), personnel, work papers and operations of the Licensee to the extent
necessary to permit the Licensor to reasonably verify compliance of Licensee with its obligations under Article III and the Sales Reports.
The Licensee agrees to reasonably assist the Licensor (or the independent certified public accountant, as applicable) in connection with
the exercise of the audit rights granted by this Section 3.4(c). All expenses and costs associated with the review and audit in this
Section 3.4(c) shall be borne solely by the Licensor; provided that in the event that such review and audit results in a finding
and determination that a Milestone Payment should have become payable earlier or a Milestone Payment or Royalty Payment payable was not
otherwise paid or that the amount paid was lower by more than five percent (5%) than the amount that should have been paid, then the
expenses and costs of such review and audit (including reasonable attorney's fees) shall be borne and paid by the Licensee. All amounts
due to the Licensor as shown by the audit (that have not been previously paid by the Licensee to the Licensor) shall be paid within thirty
(30) days following the receipt by the Licensee of a copy of the final audit report. In the event that the audit uncovers an overpayment
by Licensee, Licensor shall promptly credit such amount towards the subsequent Milestone Payment or Royalty Payment payable by Licensee;
provided that, in the event that no further payments are payable by Licensee hereunder, Licensor shall promptly refund such overpaid
amount to Licensee. Licensee will include in all sublicenses granted with respect to the Product, an audit provision substantially similar
to the foregoing requiring such sublicensee to keep full and accurate books and records relating to the Product and granting Licensor
the right to audit the accuracy of the information reported by any sublicensee in connection therewith in accordance with terms and conditions
substantially similar to those provided in this Section above.

 

Section 3.5          Financial Reports. During the Term and continuing until all Milestone Payments payable pursuant to Section 3.1(a)(ii) -
(vi) have been paid to the Licensor by the Licensee (as adjusted pursuant to Section 3.1(b), as applicable), Licensee shall, no later
than sixty (60) days following the end of each Calendar Year, furnish to Licensor unaudited financial statements of the Licensee as of
the end of such Calendar Year which shall contain include a balance sheet and related statements of income and cash flows statement prepared
in accordance with GAAP.

 

ARTICLE IV

MANUFACTURE AND SALE OF PRODUCTS

 

Section 4.1          Manufacture
of Products. During the Term, upon receipt of all Licensee Regulatory Approvals and upon the terms and subject to the conditions
set forth herein, the Licensee hereby agrees to purchase exclusively from Licensor and the Licensor agrees to supply the Products to
Licensee for Commercialization by Licensee in the Territory. The Licensor shall have the right to subcontract its obligations under
this Agreement to a Third Party or to any of its Affiliates; provided that, any subcontracting of the Manufacture of the Product
shall be in accordance with Section 5.2(d); provided further that, Licensor shall remain primarily responsible for the
actions and omissions of its subcontractors, including any subcontractor that performs services on behalf of Licensor pursuant to
Section 4.3. All Product to be supplied pursuant to this Agreement shall be in blister packs, without label and without any
tradename or trademarks and as further set forth in Schedule 8.1.

 

    

     

    

 

Section 4.2          Sale and Distribution. The Licensee will sell the Products only in the Territory and will not directly or indirectly sell
or otherwise distribute the Products outside of the Territory. The Licensee shall have the sole and exclusive right to determine all terms
and conditions of sale by it of the Products (including, for clarity, pricing), subject to the limitations expressly set forth in this
Agreement and applicable Law.

 

Section 4.3          Packaging and Labeling.

 

(a)         Immediately
following execution of this Agreement Licensor shall provide Licensee with a copy of the label for the Licensed Product (the
 "Licensed Product Labeling"). Licensor is responsible for ensuring that the Licensed Product Labeling is accurate,
current and complete (consistent with the Product [***]), and complies with applicable requirements of the FDA (and applicable
Governmental Entities), the REMS Program and applicable Governmental Rules. Licensee will be responsible for modifying the Licensed
Product Labeling in order to generate the content of the label for the Product, together with any other written or graphic matter
contained upon any wrapper, packaging, package insert or outset utilized for the Product (which for clarity, shall include the
appropriate Licensee Trademarks and any other prescribing information for the Licensed Product that is required by the FDA (and
applicable Governmental Entities) and the REMS Program, in the manner and to the extent specified in the Specifications
(collectively, the "Product Labeling", with the content of the Product Labeling that is added and/or modified in
any way (including relating to formatting and placement) by Licensee (excluding, for clarity, the unmodified Licensed Product
Labeling) being referred to as the "Modified Product Labeling"); provided that, Licensor shall have a
reasonable opportunity to review and provide comments on the proposed Product Labeling. Licensee shall not include any information
on the Modified Product Labeling that is not approved by the FDA or, solely with respect to Additional Changes, Licensor. The
Licensee will be responsible for ensuring the accuracy of all information contained on the Product Labeling and for the compliance
of all such labels with applicable Governmental Rules and the REMS Program. Such packaging and labels will be in accordance with the
Specifications. Licensor shall promptly inform Licensee of any changes to the Licensed Product Labeling. Upon written notification
from Licensor, the Licensee will make any changes to the Product Labeling to conform to the License Product Labeling (as applicable)
or as otherwise required by applicable Law, the REMS Program or the FDA, and will consider in good faith making any other changes
requested by the Licensor, at the Licensee's sole cost and expense, within a reasonable timeframe to be agreed upon in writing by
both Parties. The Licensee will be responsible for preparing (but shall not submit) all regulatory or governmental submissions
relating to the Product Labeling (whether for the initial submissions to the Product Labeling or subsequent submissions relating to
changes required by Governmental Rules, or by any Governmental Entity or the REMS Program) and the parties will work together to
submit any such changes to all applicable Governmental Entities for approval, if required, which filings shall be completed by the
Licensor unless otherwise agreed to in writing. At such time that Licensor has established its own internal capabilities to
secondary package and label products, if ever, in [***] (the "Licensor Facility"), the Parties shall negotiate in
good faith an amendment to this Agreement to take into account such capabilities (which amendment, for clarity, shall contain the
following terms: (i) Licensor will provide at the Licensor Facility any secondary packaging, labeling and related services with
respect to the Product, with the Supply Price to be negotiated at the time of such amendment, (ii) the Product will be delivered to
Licensee as a fully labeled and packaged product that is ready for shipment (the "DRL Finished Product") and (iii)
the DRL Finished Product will be delivered CIP US Port (Incoterms 2010)). Additionally, as part of the entry into such amendment,
the Parties shall negotiate in good faith the remaining shelf life of the  DRL Finished Product at the time of delivery to Licensee
(which for clarity, shall be no less than eighteen (18) months' as of the date of delivery of such  DRL Finished Product to
Licensee).

 

    

     

    

 

(b)         In the event that Licensee wishes to make any change to the artwork on the Product Labeling, including color changes or updates
to packaging or Licensee Trademarks, etc., in each case, that would require a submission to any Governmental Entity or to the REMS Program
(each an "Additional Change"), Licensee shall first discuss such proposed Additional Change with the Licensor. In the
event that Licensor agrees to permit any such Additional Change (such permission not to be unreasonably withheld, conditioned or delayed),
Licensee shall prepare all submissions and Licensor shall cooperate with Licensee to make any applicable submissions to Governmental Entities
and/or REMS Program, provided, that Licensee shall bear all costs and expenses associated with any Additional Change. For clarity, the
Licensor may reject in its sole discretion any Additional Change or other change to the Product that is requested by the Licensee.

 

Section 4.4          Facility
Maintenance; Inspection; Reports.

 

(a)         The
Licensor shall, at all times, maintain and operate, or cause its contractors to maintain and operate, all facilities where Products are
Manufactured, packaged, tested, stored, warehoused or shipped, and implement such quality control procedures, as is reasonably required
so as to be able to perform its obligations hereunder in accordance with all applicable Governmental Rules, including without limitation,
the cGMP Requirements. Not more than once every twelve (12) months (or more often for follow-up audits or inspections directed at significant
or critical quality issues observed during the regular audit or brought to the Licensee's attention through customer complaints or claims
or by Governmental Entities), the Licensor shall permit, or cause its contractors to permit, quality assurance representatives of the
Licensee or designated third parties to inspect such facilities, operations, documents, and records related to the handling, manufacture,
testing, inspection, packaging, storage, disposal and transportation of the Products by the Licensor or the applicable contractor upon
reasonable notice (which shall not be less than ten (10) days), during normal business hours and on a confidential basis. The Licensor
shall also permit, and cause its contractors to permit, representatives of the FDA to inspect such facilities as requested by the FDA.

 

(b)         The
Licensor shall maintain adequate and accurate records consistent with the applicable Specifications, including records covering quality
control testing and release of the Products and all other Manufacturing services provided hereunder in compliance with the cGMP Requirements
and any other relevant Governmental Rules, at all times during the performance of the Manufacturing services and for three (3) years
after the date of Manufacture, or such longer period as required by Governmental Rules.

 

    

     

    

 

Section 4.5          Adverse
Events. Prior to the first commercial sale of the Product by or on behalf of Licensee, but no later than ninety (90) days after the
Effective Date, the Parties shall each assign a representative to negotiate in good faith and agree on a process and procedure for sharing
and reporting of adverse event information, which shall be documented in a pharmacovigilance agreement ("Pharmacovigilance Agreement").
The Parties shall execute a Pharmacovigilance Agreement within one hundred twenty (120) days after the commencement of discussions with
respect thereto.

 

Section 4.6          Ownership
of Regulatory Approvals; Regulatory Communications.

 

(a)         The Parties acknowledge and agree that, in addition to the Licensee Trademark Submissions, Licensee will be responsible for making,
obtaining or filing, the following: (i) obtaining the NDC numbers for all Product to be sold by Licensee, including the drug listing of
NDC numbers and annual drug listing of the NDC numbers, (ii) making all filings relating to its promotional materials with the Office
Prescription Drug Promotion ("OPDP") and (iii) registering as a "wholesaler" (but not a participant
or sponsor) under the REMS Program (collectively, the "Licensee Required Filings"). Following execution of this Agreement,
Licensor shall provide Licensee with an authorization letter, to allow Licensee to make all filings relating to its promotional materials
with OPDP. Prior to making any submissions to OPDP pursuant to this Section 4.6(a), Licensee shall provide Licensor with a copy of such
filings to be made with OPDP and a copy of all such promotional materials at least seven (7) Business Days prior to making such submissions
to OPDP. In the event that Licensor raises any objection to or concern with the promotional materials, the Parties shall discuss in good
faith and shall work together to reasonably and promptly address such concerns prior to Licensee making such filings with OPDP.

 

(b)        All
Regulatory Approvals and Regulatory Documentation relating to the Product, other than the Licensee Trademark Submissions and Licensee
Required Filings, shall be owned solely by Licensor, and Licensee shall not have, nor shall it claim, any ownership interest or other
right in such Regulatory Approvals and Regulatory Documentation.

 

(c)         Notwithstanding
anything to the contrary provided herein or elsewhere, the Parties expressly agree that Licensee shall not be permitted to make any submissions
to any Governmental Entity or changes to any of the Regulatory Documentation without the express prior written consent of the Licensor,
except that Licensee shall be responsible for the Licensee Trademark Submissions and Licensee Required Filings. Licensor shall own all
Regulatory Documentation except that Licensee shall own the Licensee Trademark Submissions and Licensee Required Filings.

 

(d)         Licensor
shall provide in good faith regular updates to Licensee regarding the status of the [***]-Related Trade Name Submissions and any
matters related thereto, including anticipated approval dates (and any changes or updates thereto) and any requests by the FDA for
documentation or additional information in connection therewith. Additionally, Licensor shall promptly inform Licensee of any
communications from, or material issues raised by, the FDA or other applicable Governmental Entity in connection with the
[***]-Related Trade Name Submissions and shall promptly (but in any event within three (3) Business Days) provide Licensee with
copies of any correspondence (including emails) relating thereto. With respect to the [***]-Related Trade Name Submissions, Licensor
shall discuss such matter with Licensee and consider in good faith Licensee's comments with respect thereto prior to responding to
the FDA or other Governmental Entity, as applicable. Upon Licensee's reasonable request, Licensor shall address the various matters
set forth in this Section 4.6(d) through a meeting between the Parties (on a monthly basis, or such lesser frequency requested by
Licensee). For the avoidance of doubt, Licensor shall not file, or respond to any communications with respect to, any [***]-Related
Trade Name Submissions without discussing the content of such submissions or communications, and any proposed responses with respect
thereto, with Licensee and addressing in good faith Licensee's concerns or objections with respect to any of the foregoing,
provided, that Licensor shall be permitted to make filings or respond to communications with Governmental Entities in the event that
the failure to respond would adversely impact the Product [***] in any manner other than with respect to the [***]-Related Trade
Name Submissions.

 

    

     

    

 

Section 4.7          Licensee
Submissions. Subject to the terms and conditions set forth in this Agreement, each of the Parties hereto shall (subject to, and in
accordance with, Governmental Rules) cooperate and take such reasonable actions, to make all Licensee Submissions with the goal of obtaining
all Licensee Regulatory Approvals. Other than any [***]-Related Trade Name Submissions, REMS Related Approvals, Licensee Trademark Submissions,
Licensee Required Filings or Additional Changes, which shall be made in accordance with Sections 2.3(b), 2.3(b), 2.3(a), 4.6(a) and 4.3(b),
respectively, to the extent that any other Licensee Submissions (or any other regulatory filings) are required to be made during the
Term relating to the Commercialization of the Product in the Territory, Licensee shall be responsible for preparing all such submissions
and filings (but shall not make any such submissions) and Licensor shall use Commercially Reasonable Efforts to review and make such
filings. Other than as set forth in Sections 2.3(b) and 4.8, all costs and expenses relating to any Licensee Submissions and all other
Licensee Regulatory Approvals shall be paid by Licensee upon demand from Licensor.

 

Section 4.8           REMS
Program; REMS Fees.

 

(a)         Licensee
acknowledges and agrees that as of the date hereof the Product is the subject of the REMS Program. Each Party agrees that it shall, and
shall ensure that its Affiliates (and in the case of Licensee, permitted sublicensees (if any)), comply with all rules, regulations,
and laws relating to the REMS Program.

 

(b)         Licensor
shall use good faith efforts to request the applicable REMS Program authorities to display the Product on the iPledge website as a distinct
product from the DRL Product.

 

(c)         With
respect to the Product (but not the DRL Product) and subject to Licensor's confidentiality obligations to any Person relating to the
REMS Program, Licensor shall not file, submit or respond to any written communications with respect to, any REMS Related Approvals
without providing a copy of such submissions to Licensee reasonably in advance of the proposed submission date, and shall discuss
the strategy and content of such submissions or communications and any proposed responses with respect thereto, with Licensee and
addressing Licensee's good faith concerns and objections with respect to any of the foregoing; provided that, such submissions
and/or communications may be reasonably redacted by Licensor with respect to confidential or proprietary information of Licensor or
with respect to any matters to which Licensor has any obligations of confidentiality to another Person.

 

    

     

    

 

(d)         Licensee shall be responsible for all costs and expenses incurred by Licensee or Licensor associated with updating, amending,
printing (or re-printing) or otherwise modifying the documents, materials, websites or other media (in all cases whether in hardcopy,
electronic or other form) relating to the REMS Program as a result of the Product or as required for Licensee to Commercialize the Product
in the Territory.

 

(e)         Licensee
shall be responsible for all REMS Program related fees and expenses, including, without limitation, maintenance fees, operational
fees, program fees and expenses, in each case, incurred as a result of inclusion of the Product in the REMS Program, permitting the
Licensee to Commercialize the Product in the Territory and to the extent related to sales of the Product in the Territory by or on
behalf of Licensee (together with the costs and expenses set forth in Section 4.8(d), collectively, "REMS Fees").
Licensee shall be responsible for, pay and discharge directly any REMS Fees charged to Licensee. To the extent that any REMS Fees
relating to the Product are attributable to Licensee and charged to Licensor, Licensee shall promptly reimburse any such REMS Fees
in accordance with the invoices associated with such fees. Licensor shall send Licensee an invoice setting forth such REMS Fees,
which invoice shall: (i) set forth expenses that are solely attributable to the Product or relating to fees set forth in Section
4.8(d) (collectively, "Product-Only REMS Fees") (which shall (A) not include any expenses attributable to the DRL
Product, (B) for all Product-Only REMS Fees, include, to the extent possible, a separate line item for each category of expense (and
with respect to all pass-through expenses, include appropriate substantiating documentation for such expense)); and (ii) for all
other REMS Fees, (x) include a separate line item for each category of expense and (y) provide a calculation of the pro-rata amount
of such expense for which Licensee is responsible (based on a determination of the volume of sales attributable solely to the
Product versus the DRL Product) (the "Pro-Rata REMS Fees"). Licensee shall promptly, after receipt of the
applicable invoice from Licensor, reimburse any such Pro-Rata REMS Fees and Product-Only REMS Fees. For clarity, following the
receipt by Licensor of market share invoices, Licensor shall determine the volume of sales attributable solely to the Product versus
the  DRL Product. Licensee shall be responsible for the REMS Fees that are attributable to its Product based on volume-based sales,
amounts due pursuant to Section 4.8(d), and its pro rata portion of all other REMS Fees (determined by volume) that are attributable
to the participation of the Product [***] in the REMS Program. For the avoidance of doubt, Licensee shall not be responsible for any
REMS Fees charged to Licensor and attributable to sales of the  DRL Product.

 

(f)         Licensee
agrees that it shall not Knowingly contact or communicate with any REMS Program members, participants or administrators without the prior
written consent of the Licensor with regard to the REMS Program, other than in connection with Licensee's obligations under Section 2.3(b).
Licensee acknowledges that it is not a "member" of the REMS Program.

 

(g)         Subject
to Licensor's confidentiality obligations to any other Person with respect to the REMS Program, each Party hereto agrees that it shall
promptly (but in any event no later than five (5) days after receiving such information) provide the other Party hereto copies of any
reports, documents or other information received by such Party from the REMS Program in connection with adverse events, quality complaints
or similar matters, in each case, related to the Product. In the event of any conflict between this Section 4.8(g) on the one hand, and
either a Quality Agreement or any Pharmacovigilance Agreement on the other, such Quality Agreement or Pharmacovigilance Agreement shall
control.

 

    

     

    

 

Section 4.9          Regulatory
Cooperation. Licensee shall, upon the request of the Licensor, provide any such data in Licensee's actual possession to Licensor
that is required to be submitted by Licensor to a Governmental Authority or to the REMS Program. The Licensee shall reasonably cooperate
with the Licensor, at Licensor's reasonable request, with respect to any regulatory matters for which the Licensor is responsible in
relation to the Licensed Product. Without limiting the foregoing, the Licensee shall cooperate with the Licensor in all matters regarding
information requests for a Governmental Entity or REMS Program involving the Licensed Product.

 

ARTICLE V

FORECASTS, ORDERS AND SHIPMENT

 

Section 5.1          Forecasts.
On or prior to the tenth (10th) Business Day of each Calendar Quarter during the Term, Licensee will provide the Licensor
with a non-binding written forecast of estimated quantities of Product that the Licensee anticipates ordering from the Licensor during
the next twenty-four (24) month period commencing upon the following Calendar Quarter (the "Forecast"). In order to
assist in the planning of production runs for the Products, Licensee will provide an initial Forecast to Licensor within thirty (30)
days following the execution of this Agreement (the "Initial Forecast"), which Initial Forecast shall only be effective
upon mutual agreement of the Parties (provided that, neither Party may withhold agreement to an Initial Forecast that provides for an
order quantity that falls within the range of 150,000 Units to 250,000 Units of Product for the first twelve (12) months of such forecast).
The Initial Forecast will be updated on or prior to the tenth (10th) Business Day of each following Calendar Quarter and such
updated Forecast in accordance with this Section 5.1 will be promptly delivered to the Licensor by the Licensee. The quantity
of Product set forth in the first twelve (12) months of a Forecast for a particular Calendar Year shall not decrease by [***] ([***]%)
percent, or increase by more than [***]percent ([***]%), from the original Forecast in which such Calendar Year was first included, unless
agreed to in writing by the Parties (the "Annual Variation Limit"). The first three (3) months of each such Forecast
(the "Firm Order Period") shall be binding on Licensee. The remaining twenty-one (21) months of each such Forecast shall
be non-binding estimates for planning purposes. The Licensee will forecast the volume of Products comprising full batch and in multiples
of batch quantities, as such quantities are set forth on Schedule 8.1. Each Forecast will be made by the Licensee in good faith,
taking into account reasonable projections of demand for the Products including, without limitation, demand in line with prescription
trends, and allowing for reasonable safety stock. The Licensor shall use its Commercially Reasonable Efforts to ensure sufficient manufacturing
capacity to meet the Forecast.

 

    

     

    

 

Section 5.2          Orders.

 

(a)         The
Licensee will place firm purchase orders ("Firm Orders") for Products in writing with a delivery date for such Firm
Order of one hundred twenty (120) days after the Purchase Order Date, unless otherwise agreed to by the Parties in writing and except
for the Initial Firm Order, which shall be placed in accordance with Section 3.1(b)(ii)(A) and Schedule 5.2(B), or as otherwise
agreed to by the Parties. For clarity, notwithstanding anything to the contrary in this Article 5, the Initial Firm Order shall become
binding on both Parties only upon receipt of the [***]-Related Trade Name Approval, or earlier as agreed to by the Parties in writing.
Without limitation to the terms and conditions relating to each Firm Order, unless otherwise agreed to in writing, Licensee shall not
be permitted to place any Firm Orders after the Initial Firm Order until the receipt of the [***]-Related Trade Name Approval, and the
delivery date for the Firm Order following the Initial Firm Order shall be at least thirty (30) days following the delivery date of the
Initial Firm Order. Each Firm Order will specify the quantity and description of each Product ordered, the requested delivery date (which
delivery dates will not be on a Saturday, Sunday or holiday), the delivery address and any special instructions requested; provided that,
the quantity of Product ordered pursuant to each Firm Order shall be consistent with the amounts set forth in the Firm Order Period of
the most recent Forecast, as further described in Section 5.1. The minimum size of any order placed by the Licensee will be a
full batch in accordance with Schedule 8.1 hereto, except with the advance written approval of the Licensor and payment of any
additional expenses or fees that are required for split batches. All Firm Orders will be in full batch increments and Licensor shall
not be required to produce split batches unless mutually agreed to in writing. The Products set forth in Firm Orders will be delivered
to an identified finished packager in accordance with the Firm Order. The date an order will be deemed placed (the "Purchase
Order Date") will be the date that the Licensor actually receives the purchase order form. The Licensee will be responsible
for any delays arising from any changes requested by Licensee in connection with any Firm Order. Any changes to any Firm Order requested
by Licensee will neither reduce nor in any way affect the Minimum Requirement obligations set forth in Section 5.3. Orders will be deemed
accepted by the Licensor unless the Licensor provides notification of rejection to the Licensee within ten (10) Business Days of receipt
of the Firm Order. In the event that a Firm Order is rejected (it being understood that Licensor may only reject a Firm Order that fails
to meet the requirements specified in this Agreement), the Licensor shall provide to Licensee the reasons for rejection in writing and
the Licensor and the Licensee will cooperate in good faith to promptly resolve any issues raised by such order. The Licensor shall use
Commercially Reasonable Efforts to timely supply any Products in accordance with the resolution of a rejected Firm Order.

 

(b)         The
Licensor will supply the Products in accordance with each Firm Order placed pursuant to the terms of this Agreement by the Licensee and
accepted by the Licensor including the quantities and delivery dates requested in each Firm Order. Each Firm Order will set forth a delivery
date of one hundred twenty (120) days after the date of such order. The Initial Firm Order is set forth in Schedule 5.2(b) hereto.
Licensee acknowledges that the lead time for any Firm Order is one hundred twenty (120) days, except for the Initial Firm Order, which
shall be placed in accordance with Section 3.1(b)(ii)(A) and Schedule 5.2(B).

 

(c)         Subject to Section 5.1, Licensee may submit Firm Orders for quantities of Product in excess of the Forecast amounts (such excess
amounts being "Special Orders"), and shall separately provide notice to Licensor that it would like to place a Special
Order. Licensor shall use Commercially Reasonable Efforts to fill such Special Order and shall notify Licensee within ten (10) Business
Days after receipt of a Special Order if it expects to be unable to do so. If Licensor is unable to fulfill any Special Order, it shall
not be deemed a breach of this Agreement.

 

    

     

    

 

(d)         Notwithstanding
any other provisions to the contrary herein, the Licensor in its sole discretion may supply or cause its Affiliate to supply
Licensee with the Products, in the form listed on Schedule 8.1 from a facility retained by the Licensor or any of its
Affiliates and approved as a Manufacturing site under the Product [***] (which facilities, as of the Effective Date, are listed on Schedule
5.2(d)), and the Parties shall cooperate with each other, at Licensor's cost, to effectuate any changes to the labeling,
packaging or other aspects of the Manufacture of the Product that may be required due to such fulfillment from the alternate
Manufacturing site.

 

(e)         Subject
to Section 4.3(a), Product supplied by Licensor hereunder shall have at least twenty-one (21) months' remaining shelf life as of the
date of delivery of such Product to Licensee. During the Term, Licensor shall reasonably inform Licensee of any changes to the approved
shelf life of the Product.

 

(f)          In the event that Licensor manufactures excess Product, without limiting any of Licensee's rights to reject such Product in accordance
with Section 7.3, Licensee shall accept delivery of up to [***] ([***]%) of the quantity of Product ordered by Licensee pursuant to Firm
Orders placed under Section 5.2.

 

(g)         The
terms of this Agreement shall prevail over any conflicting, inconsistent or additional terms set forth in any Firm Order.

 

(h)         Shortfall Event; Alternative Supply.

 

(i)             Notwithstanding
any provision herein to the contrary, in the event that Licensor is unable to deliver in accordance with Section 5.4 at least eighty
(80%) of the volume quantity of Product set forth in a Firm Order (each a "Shortfall") for three consecutive Firm Orders
(the occurrence of the third consecutive Shortfall being a "Shortfall Event") (provided that Replacement Firm Orders
shall not count as a Firm Order for the purposes of this Section 5.2(h)), and the Shortfall amount of Finished Product attributable to
at least two out of three Firm Orders making up a Shortfall Event is not cured within ninety (90) days of receipt of written notice to
Licensor of such Shortfall Event violation (such 90-day period with respect to a given Shortfall, the "Shortfall Cure Period"),
then an "Interruption Event" shall be deemed to have occurred. Upon the commencement of any Interruption Event, Licensee, in
addition to any other rights and remedies hereunder, shall have the right, in its sole discretion to purchase the Product from a third
party supplier ("Secondary Supplier"). Licensee shall be responsible for Product actually delivered pursuant to any
Firm Order accepted prior to the occurrence an Interruption Event.

 

(ii)            The
replacement of Finished Product pursuant to a Replacement Firm Order in accordance with Section 8.3(c), shall cure of a Shortfall for
the Firm Order it relates to in the event that Licensee receives at least one hundred percent (100%) of the Product ordered under the
original Firm Order (in the form of Finished Product) during the Shortfall Cure Period. Notwithstanding the foregoing sentences, the
Shortfall Cure Period shall not commence until Licensee has issued Replacement Firm Orders to Licensor for Product representing such
Shortfalls, provided, however, that if Licensor delivers written notice to Licensee during the Shortfall Cure Period that it will be
unable to complete such additional Replacement Firm Orders to Licensor for Product representing such Shortfalls, then the Shortfall Cure
Period shall automatically end upon the giving of such written notice. Licensor acknowledges and agrees that Licensee shall have the
right to issue Replacement Firm Orders for the quantity of Product representing such Shortfalls (in accordance with Section 8.3(c) (including
that such Replacement Firm Orders shall be in full batch increments)) as soon as practicable after delivery of Product pursuant to Section
5.4 until the end of the Order Period. For the avoidance of doubt, Licensee must issue a Replacement Firm Order in accordance with Section
8.3(c)(i) following a Shortfall in order for such Shortfall to be one of the three consecutive Firm Orders that make up a Shortfall Event.

 

    

     

    

 

(iii)           During
any Interruption Event (irrespective of whether Licensee elects to purchase the Product from a Secondary Supplier), Licensee shall be
relieved of its obligation to order its purchase requirements of the Product from Licensor until the one hundred twentieth (120th) day
(the "Resumption Date", and the period beginning on the expiration of the Shortfall Cure Period and ending on the Resumption
Date being the "Interruption Period") following the date that Licensor provides written notice (a "Resumption
Notice") to Licensee that it is able to fulfil Firm Orders in accordance with the terms of this Agreement. For clarity, the
non-placement of Firm Orders during any Interruption Period shall not be deemed to be a breach of Licensee's obligations under this Agreement.
Following a Resumption Date, subject to the remainder of this Section 5.2(h), Licensee shall be required to purchase from Licensor for
the remainder of the Term the greater of (i) [***] ([***]%) percent of the total cumulative annual quantities of Product ordered in such
Calendar Year from Licensor and any Secondary Supplier and (ii) the Minimum Requirement of Product (subject to Licensee's rights in the
event of any subsequent Shortfall Events occurring after the initial Resumption Date, if any, as set forth in this Section 5.2(h), mutatis
mutandis) (the "Annual Purchase Requirement"). For clarity, the calculation of [***] percent ([***]%) of annual
Product volume or the Minimum Requirement of Product, as referenced in the immediately preceding sentence, shall be made on a pro rata
basis for the Calendar Year in which an Interruption Period occurs. By way of example, if Licensee ordered [***]Units of Product for
delivery in a given Calendar Year ([***] Units each month), of which [***] Units were delivered from January through April, and May through
August constituted an Interruption Period, Licensee would be required to order the following amount of Product for delivery in September
through December of such Calendar Year in order to satisfy the Annual Purchase Requirement: the greater of (i) [***]Units (calculated
as follows: [***]% of [***]Units - [***]Units already sold = [***] Units remaining for the Calendar Year; [***] Units remaining x (4
months non-Interruption Period / 8 months remaining in Calendar Year = [***]) or (ii) [***] Units (calculated as follows: [***] Units
- [***] Units already sold = [***] Units remaining for the Calendar Year; [***] Units remaining x (4 months non-Interruption Period /
8 months remaining in Calendar Year = [***]).

 

    

     

    

 

(iv)           Notwithstanding
Section 2.4, and subject to the terms and conditions set forth below, Licensee shall have the right at any time during the Term to
engage a manufacturer to establish and validate such manufacturer as a Secondary Supplier for the Product in the Territory under the
Product [***] (and Licensor shall be required to be a party to any such arrangement with a Secondary Supplier). Licensor shall, upon
Licensee's reasonable request and at Licensee's sole cost, reasonably cooperate by providing copies of all data, documents,
information or other know-how that is reasonably necessary to make or have made Product ("Technology and Manufacturing
Information"). Licensor shall not be required to provide any personnel or manufacturing technology transfer other than such
Technology and Manufacturing Information referred to in the foregoing sentence; provided that, Licensor shall make itself reasonably
available by telephone, video conference and/or e-mail (but not in-person), for a period of ninety (90) days after the completion of
the technology transfer in this subsection (iv), to answer Licensee's reasonable questions regarding the transferred know-how
(subject to reimbursement by Licensee for Licensor's internal costs incurred in providing such assistance, at pre-agreed personnel
rates). As a condition to engaging in any discussions with a potential Secondary Supplier, the Parties and such potential Secondary
Supplier shall enter into a tri-partite confidentiality agreement and such Secondary Supplier shall agree not to develop,
manufacture, supply or otherwise commercialize a Competitive Product during the Term. Any Secondary Supplier shall not be a Direct
Competitor of Licensor. Any filings required to be made to any Governmental Entity relating to a Secondary Supplier shall be
prepared by Licensee (but not filed) and subject to review by Licensor, and Licensor shall be permitted to make any changes to such
filings as it deems necessary or advisable in its sole discretion. Licensor shall only be required to share Technology and
Manufacturing Information with those persons that need to know such information, and shall not be required to disclose any such
Technology and Manufacturing Information to any Person (including the Licensee) prior to entering into the tri-partite disclosure
agreement. The Parties agree that the Technology and Manufacturing Information is the Confidential Information of Licensor. Only
Licensor shall be permitted to make any filings required to be made to any Governmental Entity relating to a Secondary Supplier
unless otherwise agreed to in writing. Licensor shall solely own all Regulatory Approvals, Regulatory Documentation and intellectual
property (including know-how) relating to or created as a result of the engagement of a Secondary Supplier (which shall exclude such
Secondary Supplier's background intellectual property in existence prior to Licensee's engagement of such Secondary Supplier).
Secondary Supplier shall only be permitted to supply Product to Licensee or Licensor for sales in the Territory and shall not supply
Product outside of the Territory. Licensee shall not have any rights or privileges under this Section 5.2(h)(iv) and shall not
contact, engage in any discussions or negotiations with any potential Secondary Supplier until it has provided prior written notice
to Licensor (a "Secondary Supplier Election Notice") that has elected to exercise its rights under this Section
5.2(h)(iv).

 

(v)            For the avoidance of doubt, the Parties hereby expressly agree that product supplied by a Secondary Supplier shall be considered
 "Product" as defined hereunder and subject to the terms and conditions of this Agreement, including with respect to Article
III and the payment and calculation of Royalty Payments and Milestone Payments.

 

    

     

    

 

(i)          The Parties acknowledge and agree that, as of the Effective Date, Licensor intends to Manufacture Product utilizing the batch
size set forth in Schedule 8.1. Licensor shall promptly inform Licensee in the event that Licensor intends to change the batch size used
to Manufacture Product and shall negotiate in good faith and agree to reasonable amendments to the forecasting and ordering procedures,
and related provisions, to account for the changed batch size for Product.

 

Section 5.3          Minimum Requirement. During each Calendar Year (and pro-rata for the first Calendar Year beginning on the achievement of
the Initial Order Milestone and for the final Calendar Year of the Term), Licensee shall "purchase" (as further described in
this Section 5.3) at least [***] ([***]) Units of Product from Licensor (the "Minimum Requirement"). For purposes of
the Minimum Requirement, the amount "purchased" in a Calendar Year shall be based on the amount ordered in Firm Orders placed
for Product with a requested delivery date in the applicable Calendar Year, as long as such requested delivery dates are made pursuant
to Sections 5.1, Section 5.2 and Section 5.3. If Licensee does not purchase at least the Minimum Requirement during any Calendar Year,
then within forty-five (45) days after the end of such Calendar Year, Licensee shall pay Licensor an amount equal to (1) the difference
between (A) [***] Units of Product and (B) the number of Units of Product ordered by Licensee during such Calendar Year (it being understood
that the quantity of Product ordered by Licensee may be greater than the quantity delivered by Licensor) (such difference being the "Shortfall
Quantity"), multiplied by (2) $[***] per Unit. Licensee shall not be obligated to pay for the Shortfall Quantity to the extent
Licensee's failure to meet the Minimum Requirement is due to Licensor's inability to timely supply Licensee with Product in the applicable
Calendar Year in accordance with properly placed Firm Orders (including in the event of any Interruption Period) or provided that such
inability to timely supply Licensee is not directly caused by Licensee's failure to meet its obligations under this Agreement. At the
end of each Calendar Year Licensor shall issue an invoice to Licensee indicating the amount owed by Licensee to Licensor pursuant to this
Section 5.3, which amount, if any, shall be due within forty-five (45) days of receipt of such invoice.

 

Section 5.4          Delivery.

 

(a)         All
Products shipped under this Agreement will be shipped CIP US PORT (Incoterms 2010) as bulk product, without any secondary packaging to
such location designated by the Licensee in the applicable Firm Order. The Licensor will pay all freight, and insurance charges and Licensee
will pay taxes, import and export duties, inspection fees and other charges applicable to the sale and transport of Products purchased
by the Licensee. Title and risk of loss and damages to Products purchased by the Licensee will pass to the Licensee upon delivery to
the carrier. In the event of damage or loss to the Products after delivery to the carrier, the Licensee will be responsible for filing
appropriate claims; provided that, Licensor shall reasonably cooperate with Licensee in filing and receiving reimbursement for
such claims. The Licensor shall notify Licensee in writing of the following information concurrently with each shipment of Product: (i)
date of shipment, (ii) quantity and type of Product shipped, and (iii) order number or other identifying information.

 

(b)         Licensor shall promptly report to Licensee the occurrence of any event within or beyond its control that is likely to affect delivery
of any order of Product, provided that, the giving of such notice shall not otherwise excuse Licensor's performance hereunder.

 

    

     

    

 

(c)         Licensor shall perform quality assurance testing with respect to the Products sold hereunder, including stability testing, so
that the Products conform with the Specifications. With each shipment of Products to Licensee, Licensor shall provide Licensee with a
Certificate of Analysis ("COA") and a Certificate of Compliance ("COC") confirming that the Products
in such shipment have been tested in accordance with the Product [***] and meet the Product's Specifications. Any deviations and investigations
related to such Products shall be completed in compliance with the Product [***], cGMP Requirements and the Quality Agreement.

 

Section 5.5          Customs
Clearance. Licensee shall be responsible for the customs clearance of the Product, and the Parties agree to cooperate with each other
including to provide information and documents reasonably requested by the other Party hereto and in such non-requesting Parties' possession
relating to the Product (including statement of origin or other customs documentation). Licensee shall not take any actions, or omit
to take any actions, to intentionally delay the customs clearance of any Products by Licensee's customs agent (it being understood that
Licensee shall have no control over the independent actions or omissions of such customs agent).

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

Section 6.1          Representations
and Warranties of the Licensor.

 

The Licensor hereby represents
and warrants to the Licensee as follows:

 

(a)         Product
Compliance. All Products delivered pursuant to this Agreement by the Licensor (or any sub-contractor thereof) to the Licensee or
its designee during the Term will at shipment be in compliance in all material respects with this Agreement, the Specifications, the
Quality Agreement and applicable Governmental Rules, including the cGMP Requirements, and the Manufacturing of such Products will have
been in accordance with the cGMP Requirements. Product delivered hereunder will be free and clear of any (i) liens (other than liens
entered into in the ordinary course of business or arising as a matter of Law) or (ii) encumbrances that would prevent Licensor from
transferring all right, title and interest in the Product to Licensee (e.g., payment obligations to third parties upon sale of the Product),
but excluding any encumbrances arising as a result of the status of the Product as a bulk product (e.g., regulatory or quality-related
encumbrances). At the time Licensor makes each shipment of Product available for pick-up by Licensee (or Licensee's carrier), the Products
shall: (A) not be adulterated or misbranded within the meaning of the FFDCA or within the meaning of any applicable state or municipal
law in which the definitions of adulteration and misbranding are substantially the same as those contained in the FFDCA, as such FFDCA
and such laws are constituted and in effect at the time of delivery; and (ii) not be an article that may not be introduced into interstate
commerce under the provisions of Sections 404 and 505 of the FFDCA.

 

(b)        Authorization.
This Agreement has been duly executed and delivered by the Licensor and, assuming due execution and delivery by the Licensee, constitutes
a valid and binding obligation, enforceable against the Licensor in accordance with its terms, except as enforceability may be limited
by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to creditors' rights generally and
by general equitable principles. The execution, delivery and performance of this Agreement have been duly authorized by all necessary
action on the part of the Licensor and its respective officers and directors.

 

    

     

    

 

(c)         No
Other Commercialization Right. As of the Effective Date, Licensor has not granted to any third party, any license to Commercialize
the Licensed Product under the Product [***], other than under the trade name [***], in the Territory.

 

(d)         Absence
of Conflicts. The execution, delivery and performance of this Agreement by the Licensor does not conflict with or constitute a default
under any agreement, instrument or understanding, oral or written to which it is a party or by which it may be bound, does not conflict
with any provision of any of its organizational documents and does not conflict with or violate any Governmental Rule or court order
or decree.

 

(e)         Organization
and Standing. The Licensor is a corporation, duly organized, validly existing and in good standing under the laws of [***].

 

(f)          Power and Authority. The Licensor has the corporate power and authority to execute, deliver and perform this Agreement and
to consummate the transactions contemplated hereby.

 

(g)         Compliance With Law. Licensor has and will maintain throughout the Term of this Agreement all permits, licenses, registrations
and other forms of governmental authorization and approval as required by Law in order for Licensor to execute and deliver this Agreement
and to perform its obligations hereunder in accordance with all Governmental Rules.

 

(h)         No
Debarment. Licensor is not debarred and has not and will not use in any capacity the services of any person debarred under subsection
306(a) or (b) of the Generic Drug Enforcement Act of 1992. If at any time this representation and warranty is no longer accurate, Licensor
shall promptly notify Licensee of such fact.

 

(i)          No
Suits. As of the Effective Date, Licensor (i) is not a party to any legal action, suit or proceeding relating to the Licensed Product
in the Territory; and (ii) has not received any written communication from any Third Party (including any Governmental Entity) threatening
any action, suit or proceeding relating to the Licensed Product in the Territory.

 

Section 6.2          Representations
and Warranties of the Licensee.

 

The Licensee hereby represents
and warrants to the Licensor, as of the Effective Date, as follows:

 

(a)         Authorization.
This Agreement has been duly executed and delivered by the Licensee and, assuming due execution and delivery by the Licensor, constitutes
a valid and binding obligation, enforceable against the Licensee in accordance with its terms, except as enforceability may be limited
by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to creditors' rights generally and
by general equitable principles. The execution, delivery and performance of this Agreement have been duly authorized by all necessary
action on the part of the Licensee and its respective officers and directors.

 

    

     

    

 

(b)         Absence of Conflicts. The execution, delivery and performance of this Agreement by the Licensee does not conflict with
or constitute a default under any agreement, instrument or understanding, oral or written to which it is a party or by which it may be
bound, does not conflict with any provision of any organizational documents of the Licensee and does not conflict with or violate any
Governmental Rule or court order or decree.

 

(c)         Organization and Standing. The Licensee is a corporation, duly organized, validly existing and in good standing under the
laws of the State of Delaware.

 

(d)         Power
and Authority. The Licensee has the corporate power and authority to execute, deliver and perform this Agreement and to consummate
the transactions contemplated hereby.

 

(e)         Licensee Trademarks. To the best knowledge of the Licensee, the Licensee Trademarks including the trade name set forth on
Schedule 2.3(a) does not and will not infringe any intellectual property rights or other proprietary rights of any third party
in the Territory and that as of the Effective Date, Licensee (i) is not a party to any lawsuit or proceeding relating to the Licensed
Trademarks in the Territory and (ii) has not received any written communication from any Third Party (including any Governmental Entity)
threatening any action, suit or proceeding relating to the Licensed Trademarks in the Territory.

 

(f)          Packaging
Capabilities. Licensee acknowledges and agrees that Licensor has no obligation to, has made no representation or warranty that it
has or will, and makes no assurances that it can or will, establish its own internal capabilities to secondary package and label Product.

 

(g)         High
Risk Product. Licensee acknowledges that the Licensed Product is an enhanced/ high risk product and that it is aware of the current
and past regulatory and product liability matters relating to Isotretinoin products. Prior to the Effective Date, Licensee has completed
its legal and business due diligence relating to the risks to users of the Product and the results thereof are satisfactory to the Licensee
in its sole and absolute discretion.

 

(h)         Product
Yield. Without limiting any of Licensee's rights under Section 8.3(c), Licensee acknowledges that the output from each full batch
size of 4,000 Units will likely be in the range of eighty percent (80%) to one hundred percent (100%) of the batch size and the delivery
of Products in such range shall not be deemed a breach of this Agreement.

 

Section 6.3          DISCLAIMER.
THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT ARE THE PARTIES' ONLY WARRANTIES AND NO OTHER WARRANTY, EXPRESS, IMPLIED
OR STATUTORY, WILL APPLY. EACH PARTY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. FOR THE AVOIDANCE OF DOUBT, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
OF NON-INFRINGEMENT THAT ARE NOT EXPRESSLY SET FORTH IN THIS AGREEMENT.

 

    

     

    

 

 

ARTICLE VII

QUALITY ASSURANCE

 

Section 7.1           
The Licensor's Covenants.

 

The Licensor hereby covenants
during the Term that it will (and use Commercially Reasonable Efforts to cause its Affiliates, and its or their employees, agents or contractors
to):

 

(a)              
Manufacture, fill, bulk package (but not secondary or retail package), test, handle, store, warehouse and ship the Products in
conformity with this Agreement, Quality Agreement, Governmental Rules, cGMP Requirements and the Specifications;

 

(b)              
promptly inform Licensee of any adverse events related to the Products and significant complaints regarding the quality of the
Products, and any inspections, communications, or material issues raised by the FDA in connection with the Manufacturing of the Products,
and shall provide Licensee with copies of any correspondence (including emails) relating thereto, in accordance with the Pharmacovigilance
Agreement entered into between the Parties pursuant to Section 4.5 (but in any event no later than five (5) days after becoming aware
of the occurrence of such adverse event);

 

(c)              
obtain and maintain all permits reasonably necessary to Manufacture and supply all Product subject to an FDA approved Product [***]
in accordance with the Specifications, applicable Governmental Rules and this Agreement;

 

(d)              
use Commercially Reasonable Efforts to keep the Product [***] valid, subsisting and in full force and effect;

 

(e)              
comply with its obligations set forth in the Quality Agreement with respect to the Product; and

 

(f)               
if Licensor becomes aware of any Products that have not been Manufactured in accordance with the Specifications and that have been
supplied, promptly take such corrective action as shall be reasonably necessary to correct such nonconformity and inform Licensee in writing.

 

Section 7.2           
The Licensee's Covenants

 

The Licensee hereby covenants
during the Term that it will:

 

(a)              
hold, store, handle, ship, deliver, market, distribute and/or sell the Products (i) in accordance with applicable cGMP Requirements
and Governmental Rules, including but not limited to any risk management programs required by the FDA (which includes the REMS Program);
and (ii) in compliance with the Specifications;

 

(b)              
enter into all necessary compliance agreements as may be reasonably designated by the Licensor, including but not limited to agreements
to cover quality assurance and adverse incident reporting;

 

     

     

    

 

(c)              
 promptly inform Licensor of any adverse events related to the Products and significant complaints regarding the quality of the
Products, in accordance with the Pharmacovigilance Agreement entered into between the Parties pursuant to Section 4.5 (but in any event
no later than five (5) days after becoming aware of the occurrence of such adverse event); and

 

(d)              
comply with its obligations set forth in the Quality Agreement with respect to the Product.

 

Section 7.3           
Rejection of Delivered Products. Within thirty (30) days of receipt of any shipment of Finished Product and applicable COA
and COC by the Licensee in accordance with Section 8.3(b), the Licensee will inspect the Finished Product, COA and COC and advise the
Licensor of any defect whereby the Finished Product does not conform to the Specifications. Except with respect to any Finished Product
containing a hidden defect (that was not otherwise discoverable), any Finished Product not refused within thirty (30) days will be deemed
accepted. If the Licensee wishes to refuse acceptance, the Licensee will, within such 30-day period, provide written notice to the Licensor
of its refusal to accept the defective Finished Product and the reason(s) therefor. In the event a hidden defect (i.e., one which could
not have been reasonably identified during the initial 30-day Licensee inspection period) is discovered at a later date whereby the Finished
Product does not conform to the Specifications, the Licensee shall inform the Licensor as soon as Licensee becomes aware of the alleged
hidden defect (that was not otherwise discoverable). In the event that the Licensee refuses acceptance or rejects the Finished Product
due to a defect discovered within the initial thirty (30) day period after delivery or due to a hidden defect that is subsequently discovered,
the Licensor, upon confirmation of the reasons for refusal or rejection of the Finished Product, will replace within ninety (90) days
or as soon as reasonably practicable the defective Finished Product at the Licensor's sole cost and expense or refund the Supply Price,
at the Licensee's option. If the Licensor and the Licensee do not agree on the refusal or rejection of Finished Products, then either
Party may refer the matter for final analysis to a specialized laboratory of national reputation acceptable to both Parties for the purpose
of determining the results. Any determination by such laboratory will be final and binding upon the Parties. The cost of any such review
by a laboratory shall be borne by the Party against whom such specialized laboratory rules. Without limiting Licensee's rights under Article
12, except as set out in this Section 7.3 or Section 10.1, the Licensor shall have no liability to Licensee for any defect for which it
has not received notice from the Licensee as specified herein.

 

Section 7.4            Recall.
Licensor shall maintain traceability records in accordance with the applicable Governmental Rules, including cGMP Requirements, and
in accordance with any written instructions or guidelines provided to Licensor by the Licensee, necessary to permit a recall, field
correction or other notification to the field, of the Products. Licensor, in consultation with Licensee, shall have the exclusive
right to institute a recall and shall be responsible for managing the recall and communications with customers and Governmental
Entities, provided that with respect to Licensee's customers, Licensee shall be responsible for communications (in cooperation with
Licensor) and the facilitation of return of Product. The Parties shall cooperate with each other in connection with any such
efforts. In the event that any Product is quarantined or recalled, or is subject to stop-sale action, whether voluntary or by
governmental action, it is agreed and understood that any expenses, including any out-of-pocket administrative costs and reasonable
and documented fees of any experts or attorneys that may be utilized by either Party, government fines or penalties, related to such
recall, quarantine or stop-sale, will be borne by the Parties in proportion of the amount of Product sold by each respective Party,
unless it is determined that the reason for the quarantine, recall or stop-sale action is the result of the breach by the either
Party of its obligations under this Agreement, and in such case such expenses will be borne by such Party in its proportion of
fault.

 

     

     

    

 

Section 7.5           
Quality Procedures. Licensor and Licensee shall comply with the terms of the quality requirements set forth in a quality
agreement to be negotiated in good faith by the Parties and entered into by the Parties as soon as practicable after the date hereof,
but on or prior to the earlier of the receipt of the Licensee Regulatory Approvals or sixty (60) days after the Effective Date (the "Quality
Agreement"). To the extent that any inconsistencies or conflicts exist between the Quality Agreement and this Agreement, the
provisions in the Quality Agreement shall prevail solely with respect to quality requirements and compliance with Governmental Rules.

 

Section 7.6           
Regulatory Communications. Licensor shall be responsible for communicating with the FDA regarding the Products and the Manufacturing
performed by Licensor hereunder and Licensee shall not, other than in connection with Licensee Trademark Submissions or Licensee Required
Filings, initiate contact with any Governmental Entity (including the FDA) regarding the Products or the Manufacturing without Licensor's
prior written consent, except when required by the terms of this Agreement or by applicable Governmental Rules. Each Party shall provide
reasonable assistance to the other Party upon such Party's reasonable request, and at the requesting Party's sole cost and expense, with
respect to such regulatory communications.

 

ARTICLE VIII

PRICE AND PAYMENTS

 

Section 8.1           
Prices. The prices payable by the Licensee for each of the Products for the first Calendar Year following the Effective
Date will be the prices set forth on Schedule 8.1, and thereafter will be adjusted pursuant to Section 8.2(b) (the "Supply
Price").

 

Section 8.2           
Adjustment.

 

(a)               Any
additional costs that were not included in the computation of the Supply Price based on Section 8.1 above and (i) specifically
incurred at the request of Licensee, or otherwise authorized by Licensee (such as stability costs, scale-up expenses, and additional
analytical or testing expenses), will be charged at actual cost to the Licensee, (ii) required for the Manufacture of the Product in
accordance with the Specifications, where the Specifications have been changed or have been otherwise modified by Licensor in order
to enhance the performance, safety or reliability of the Licensed Product shall be shared by the Licensor and the Licensee on a pro
rata basis (based on a determination of the volume of sales attributable solely to the Product versus the DRL Product) or (iii)
required for the Manufacture of the Product as a result of changes to applicable Law (including cGMP Requirements) or Governmental
Rule shall be shared by the Licensor and the Licensee on a pro rata basis (based on a determination of the volume of sales
attributable solely to the Product versus the  DRL Product). A separate invoice will be issued to Licensee for such costs and/or
expenses.

 

     

     

    

 

(b)              
 On the first anniversary of the Effective Date and each subsequent annual anniversary of the Effective Date, Licensor shall have
the right to increase or decrease the Supply Price of such Product to the extent of any actual increase or decrease in the Manufacturing
Costs (and any change in the Supply Price shall be to the extent of such increase or decrease). Upon request, Licensor shall provide Licensee
with documented proof of any increase in the corresponding component of Manufacturing Cost.

 

Section 8.3           
Invoices; Adjustment to Invoices.

 

(a)              
Invoices. Licensor will send all invoices in respect of any Products to a single address specified in writing by the Licensee
to the Licensor following the date that such Products subject to any Firm Order shall have been made available to the Licensee under Section
5.4(a). Payments for Product sold hereunder (as adjusted pursuant to 8.3(b)) will be made by the Licensee to the Licensor within the later
to occur of (i) thirty (30) days after the date the Licensee is delivered Finished Product (defined below) as set forth in Section 8.3(b)
and (ii) ninety (90) days after the date of the invoice by Licensor in each case, by electronic funds transmission in United States dollars
as specified in any invoice, without any offset or deduction of any nature whatsoever. In the event that a payment for Product sold hereunder
is disputed in good faith, Licensee shall pay such portion of the payment that is undisputed, and the Parties shall immediately attempt
in good faith to resolve such dispute by negotiation and consultation between themselves for a period of thirty (30) days. If the Parties
are unable to come to an agreement on such disputed amount each Party shall be free to pursue any and all available remedies at law or
in equity. For clarity, notwithstanding anything to the contrary in this Section 8, in the event that (A) the transition services agreement
that Licensee enters into with the Person set forth therein on the date hereof with respect to the secondary packaging or labeling of
the Product terminates or expires or (B) Licensee enters into an arrangement with a Person other than the Person referred to in "(A)"
above for the secondary packaging or labeling of the Product (the first to occur of (A) or (B) above being a "Packager Change"),
the Parties shall promptly discuss in good faith and enter into an amendment to this Agreement (and any related agreement between the
Parties or their respective Affiliates) to adjust pricing terms, invoicing procedures and related terms, to account for the receipt of
bulk Product, without any secondary packaging or labeling, by Licensee.

 

(b)              
Adjustment to Invoices. Prior to a Packager Change, with respect to each Firm Order, Licensee shall only be responsible
to pay for Product that becomes Finished Product (defined below) and which is delivered to Licensee (delivery shall be deemed to occur
when such Finished Product departs the third party packaging facility). Upon delivery of Finished Product to Licensee, Licensee shall
deliver a debit note to Licensor for an amount equal (i) to the Product that did not become Finished Product, multiplied by (ii) the applicable
Supply Price for such Firm Order.

 

     

     

    

 

(c)              
Replacement.

 

(i)                 In
the event that Licensor delivers less than eighty (80%) percent of the Product ordered pursuant to an accepted Firm Order (a
 "Supply Shortage"), then at any time after delivery of Product containing such applicable Supply Shortage pursuant
to Section 5.4 until fifteen (15) Business Days after such Finished Product is made available at the third party packaging facility
in accordance with Section 8.3(b) (such period, the "Order Period"), Licensee shall have the right to issue a
Replacement Firm Order in the amount of such undelivered Product, rounded up such that the Product is only ordered in increments of
full batches of Product (with the amount of Product ordered in excess of the undelivered amount deemed "Excess Major
Product"). Any Product ordered pursuant to a Replacement Firm Order shall be delivered by Licensor and the relevant
secondary packager pursuant to Section 8.3(b), as applicable, as Finished Product within ninety (90) days following the receipt by
Licensor of such Replacement Firm Order. The Parties shall cooperate with each other and the relevant secondary packager in the
issuing of Replacement Firm Orders and the carrying out of any related obligations necessary to accomplish the foregoing.

 

(ii)             
In the event that Licensee receives eighty (80%) percent or more, but less than one hundred percent (100%), of the Product ordered
pursuant to a Firm Order (a "Minor Shortage"), then, upon mutual written agreement of both the Licensor and the Licensee,
which either Party may reject in their sole discretion, Licensee may request to order one (1) additional full batch of Product (with the
amount of Product in such batch that is in excess of the undelivered amount being deemed "Excess Minor Product"; together
with Excess Major Product, "Excess Product"). Following such mutual written agreement Licensee shall issue such Replacement
Firm Order for one (1) batch of Product (which shall be placed no later than fifteen (15) Business Days following such written mutual
agreement), and Licensor and the relevant secondary packager pursuant to Section 8.3(b), as applicable, shall supply such Product as Finished
Product as soon as practicable (but no later than ninety (90) days after the receipt by Licensor of such Replacement Firm Order). The
Parties shall cooperate with each other and the relevant secondary packager in the issuing of Replacement Firm Orders and such other items
necessary to accomplish the foregoing.

 

(iii)           
For clarity, the delivery of Excess Product pursuant to Replacement Firm Orders issued pursuant to subsections (i) and (ii) above
in a given Calendar Quarter shall not count towards the Annual Variation Limit, or cause Licensee to become in breach of the Annual Variation
Limit in such Calendar Year, as described in Section 5.1, if Licensee was not in breach of such requirement prior to such delivery. Licensee
shall be required to pay for any Excess Product delivered pursuant to a Replacement Firm Order. The Parties agree to cooperate to issue
Replacement Firm Orders or invoices as necessary to accomplish the foregoing in subsections (i) and (ii) above. Notwithstanding the foregoing,
the Parties acknowledge any Replacement Firm Order shall only be in full batch increments and Licensor will not be required to provide
replacement Product in partial batch increments when replacing Product hereunder.

 

(iv)             Following
the successful replacement of any Supply Shortage or Minor Shortage within ninety (90) days after receipt of the relevant
Replacement Firm Order by Licensor, such that Product delivered pursuant to a Replacement Firm Order together with the amount
delivered pursuant to the original Firm Order results in Licensee receiving 100% of the amount set forth in the original Firm Order
to which such Replacement Firm Order relates, Licensor shall have cured any default hereunder solely relating to such shortfall of
such applicable Firm Order.

 

     

     

    

 

(v)              
Any Product delivered pursuant to this Section 8.3(c) shall conform to the requirements of Section 5.2(e).

 

(vi)            
For the avoidance of doubt, the issuance of a Replacement Firm Order by Licensee shall operate to replace the undelivered quantities
in the Firm Order that was the basis for issuing such Replacement Firm Order, and the undelivered quantity of Product in the original
Firm Order shall no longer be delivered or deliverable by Licensor other than as expressly set forth in the applicable Replacement Firm
Order.

 

(d)              
The term "Finished Product" means fully packaged and labeled finished Product, released by the applicable quality
teams (as set forth in the quality agreements), at the secondary packager/labeler of the Product.

 

Section 8.4           
Payments; Exchange Rate. All payments hereunder will be made in U.S. Dollars. When conversion of payments from any currency
other than Dollars is required, such conversion shall be at the exchange rate published by The Wall Street Journal, Eastern U.S. Edition,
on the last day of the Calendar Quarter in which the applicable sales were made. Payments made to Licensor will be made to such account
as the Licensor will have specified in writing to the Licensee with written confirmation of payment sent by facsimile or email to such
address as the Licensor will have specified in writing to the Licensee.

 

Section 8.5           
Taxes, etc. Any tax required to be withheld by a Party on amounts payable under this Agreement will promptly be paid by
Licensee on behalf of the Licensor to the appropriate Governmental Entity, and Licensee will furnish Licensor with proof of payment of
such tax within fifteen (15) days of payment of such taxes. Any such amounts deducted or withheld by the Licensee shall be treated as
having been paid to the Licensor for purposes of this Agreement. Licensor and Licensee shall cooperate with each other and use their commercially
reasonable efforts to obtain any certificate or other document from any person as may be necessary to mitigate, reduce or eliminate any
such Licensee Taxes. Licensee will take into account the Tax Treaty when determining the rate at which withholding tax will be deducted
hereunder. The Parties agree that the maximum withholding tax, as of the Effective Date, is fifteen (15%) percent. Within thirty (30)
days of the Effective Date, Licensor shall deliver to Licensee a properly completed Internal Revenue Service Form W-8BEN-E. Notwithstanding
anything to the contrary in this Agreement, Licensor shall timely pay and be responsible for (and shall indemnity Licensee for) any transfer,
documentary, sales use, stamp, registration, value added, goods and services tax, harmonized sales tax and any provincial sales tax or
other similar tax (each an "Indirect Tax") that is imposed with respect to the transactions, payments or the related
transfer of rights or other property pursuant to the terms of this Agreement. Licensee shall be entitled to offset any Indirect Taxes
borne by it from amounts otherwise owed to Licensor under this Agreement.

 

Section 8.6           
Separate Sale. Each shipment of Product to the Licensee will constitute a separate sale, obligating the Licensee to pay therefor,
whether said shipment is in whole or only partial fulfillment of any order or confirmation issued in connection therewith.

 

     

     

    

 

ARTICLE IX

TERM AND TERMINATION

 

Section 9.1           
Term. The provisions of this Agreement will commence on the date hereof and will expire on the ten (10) year anniversary
of the Effective Date (the "Initial Term") and may be extended upon mutual written agreement of the Parties hereto (the
 "Extended Term" and together with the Initial Term, the "Term"), unless earlier terminated in accordance
with this Article IX.

 

Section 9.2           
Termination.

 

(a)              
Either the Licensor, on the one hand, or the Licensee, on the other hand, as applicable, will have the right to terminate this
Agreement with immediate effect (except as otherwise stated below) upon written notice to the other upon the occurrence of the following:

 

(i)                
the Licensor, on the one hand, or the Licensee, on the other hand, files a petition in bankruptcy, or enters into an agreement
with its creditors, or applies for or consents to the appointment of a receiver or trustee, or makes an assignment for the benefit of
creditors, or becomes subject to involuntary proceedings under any bankruptcy or insolvency Law that remains undismissed within ninety
(90) days after the filing thereof; or

 

(ii)             
the Licensor, on the one hand, or the Licensee, on the other hand, fails to cure any material breach of any of the terms and conditions
hereof within the time period specified in any prior written notice (which will be at least sixty (60) days) delivered to the non-compliant
Party by the other Party. Notwithstanding the foregoing, if the non-compliant Party disputes in good faith during the applicable initial
sixty (60) days cure period the existence or materiality of the alleged breach senior officers of each Party shall attempt in good faith
to resolve such dispute by negotiation and consultation between themselves for a period of thirty (30) days which thirty day (30) period
shall begin no later than the sixtieth (60th) day following receipt by the non-compliant Party of such written notice of material
breach; if the senior officers cannot resolve such dispute within such time period, each Party shall be free to pursue any and all available
remedies.

 

(b)              
Licensee will have the right to terminate this Agreement:

 

(i)                
for any reason or no reason, upon one-hundred twenty (120) days' written notice to Licensor,

 

(ii)              upon
thirty (30) days' notice in the event of a failure by Licensor to supply at least eighty (80%) of Product set forth in a Firm Order
for four (4) consecutive Firm Orders (except in the case of Force Majeure), provided such Firm Orders are placed and accepted in
accordance with Sections 5.2(a), unless such shortfall is cured pursuant to Section 8.3(c), or

 

(iii)           
in accordance with Section 3.1(c).

 

     

     

    

 

(c)               Beginning
on the six (6) year anniversary of the Effective Date, if (i) Licensor (or its applicable Affiliate) provides notice to Licensee
that it has determined to stop selling the DRL Product in the Territory, or (ii) a material adverse change in the market conditions
occurs such that the commercialization opportunity for the Licensed Products substantially decreases (as determined by Licensor in
its good faith and after consultation with Licensee), Licensor will have the right to terminate this Agreement, upon three hundred
sixty-five (365) days' written notice to Licensee (the "Notice Period"), provided, however, that if
Licensor or its Affiliate continues to sell the  DRL Product beyond the Notice Period, Licensee shall be permitted to sell the
Product for as long as the DRL Product is being sold, provided further, that notwithstanding the foregoing, Licensor's obligation
to Manufacture Product shall cease at the end of the Notice Period.

 

Section 9.3           
Effects of Termination.

 

(a)              
If this Agreement is terminated pursuant to Section 9.2(a), 9.2(b) or 10.1:

 

(i)                
The Licensee acknowledges and agrees that except in the case of termination by Licensor for breach of Licensee in accordance with
Section 9.2(a)(ii), or by Licensee pursuant to Section 9.2(b)(iii), upon Licensee's request, the Licensor will be obligated to fulfill
all Firm Orders that were accepted prior to the effective date of termination (and placed in accordance with this Agreement), and shall
supply any Products ordered by the Licensee pursuant to such accepted Firm Order, and Licensee agrees to pay Licensor the applicable Supply
Price for such Products. In addition, the Licensee shall reimburse the Licensor all payments owed for (i) such quantities of components,
materials, APIs and work-in-progress in the Licensor's, its Affiliates' and third party manufacturers' possession that were purchased
or manufactured for purposes of fulfilling the Firm Order Period of the most recent Forecast and (ii) any additional safety stock of Product
or its components held by Licensor pursuant to the terms of this Agreement, in each case of (i) and (ii), that are not reasonably allocable
to or usable for other activities being carried out by the Licensor or its Affiliates, which amount shall be payable no later than thirty
(30) days after receipt by the Licensee of an invoice setting forth such costs. For clarity, Licensee shall have the right to sell or
have sold any Products supplied by Licensor pursuant to this subsection (a) for up to nine (9) months after termination of this Agreement
(and the license grant to Licensee under Section 2.1 shall be deemed to be extended accordingly), except in the case of termination of
this Agreement for material breach by Licensee or expiration of the Term of this Agreement (which, for clarity, shall exclude early termination
of the Agreement). Any Products sold following termination shall remain subject to the terms and conditions of this Agreement, including
as related to Milestone Payments and Royalty Payments.

 

(ii)             
 Notwithstanding anything to the contrary provided herein or elsewhere, if Licensor terminates this Agreement pursuant to Section
9.2(a)(ii) or Licensee terminates this Agreement pursuant to Section 9.2(b)(iii), then Licensor will be entitled to cancel any Firm Order
then outstanding and will not be obligated to supply any Products ordered by the Licensee pursuant to such Firm Order. Upon such termination
referred to above Licensee shall cease selling Product immediately.

 

     

     

    

 

(b)               If
this Agreement is terminated pursuant to Section 9.2(c), upon receipt by Licensor of a ROFR Election Notice (defined below) in
accordance with Section 9.3(b)(i), Licensor shall, and hereby does, grant to Licensee during the Notice Period and for two (2) years
thereafter (collectively, the "Offer Period") a right of first refusal to obtain a license under the Product [***]
and any other intellectual property rights controlled by Licensor to Commercialize the Licensed Product under a trade name owned by
Licensee (including the Licensee Trade Name) or Third Party (which shall not include the DRL Product or the Licensed Product under
the trade name [***] or any other DRL Trademark, the "ROFR Product"), in the Territory, on the same terms and
conditions as those offered by Licensor to a Third Party (the "Licensed Product ROFR"), as detailed in this Section
9.3(b).

 

(i)                
In the event Licensor (A) intends to grant a Third Party a license under the Product [***] to Commercialize the ROFR Product, or
(B) receives a bona fide offer from a Third Party to make, have made or Commercialize the ROFR Product in the Territory (as evidenced
in each case of (A) and (B) by a term sheet or substantially equivalent written offer) then prior to entering into a definitive agreement
consistent with such terms, Licensor shall promptly deliver to Licensee a written notice ("ROFR Notice") setting forth
the terms contained in such offer (without identifying the Third Party), and shall include in such notice any material information or
documents (regulatory, technical or otherwise) as reasonably necessary and consistent with the type of information made available to the
Third Party relating to such offer for Licensee to evaluate the offer ("License Offer"), and upon Licensee's written
request, which shall be delivered to Licensor no later than fifteen (15) days following of Licensee's receipt of the ROFR Notice (a "ROFR
Election Notice"), the Parties shall negotiate in good faith a license agreement consistent with such terms set forth in the
License Offer.

 

(ii)             
If, despite good faith negotiations pursuant to subsection (i) above, the Parties fail to either (A) reach an agreement on material
terms (which, for clarity, shall be satisfied by agreement on the material aspects of a term sheet, and shall not require entry into a
definitive agreement) within (60) days or (B) enter into a definitive agreement within ninety (90) days, after Licensor delivers the ROFR
Notice (or such longer period as agreed by the Parties in writing) (the "License ROFR Period"), then Licensor shall be
free to enter into a license with respect to the ROFR Products in the Territory on terms and conditions that are no more favorable to
the Third Party, in the aggregate, than the terms and conditions set forth in the License Offer.

 

(c)              
 If this Agreement is terminated pursuant to Section 9.2(c), upon receipt by Licensor of a ROFR Election Notice in accordance with
9.3(c)(i), Licensor shall, and hereby does, grant to Licensee for the Offer Period a right of first refusal to acquire the Product [***],
on the same terms and conditions as those offered by Licensor to a Third Party (the "Product [***] ROFR"), as
detailed in this Section 9.3(c).

 

     

     

    

 

(i)                
In the event Licensor (A) intends to sell, license, assign or otherwise transfer, the Product [***] to a Third Party, or (B) receives
a bona fide offer from a Third Party regarding a sale, assignment or other transfer, of the Product [***] to such Third Party (as evidenced
in each case of (A) and (B) by a term sheet or substantially equivalent written offer), then prior to entering into a definitive agreement
consistent with such terms, Licensor shall promptly deliver to Licensee a ROFR Notice setting forth the terms contained in such offer
(without identifying the Third Party), and shall include in such notice any material information or documents (regulatory, technical or
otherwise) as reasonably necessary and consistent with the type of information made available to the Third Party relating to such offer
for Licensee to evaluate the offer ("Product [***] Offer"), and upon Licensee's delivery to Licensor of a ROFR
Election Notice (which shall be a written request be delivered to Licensor no later than fifteen (15) days following of Licensee's receipt
of the ROFR Notice), the Parties shall negotiate in good faith an agreement consistent with such terms set forth in the Product [***]
Offer.

 

(ii)             
If, despite good faith negotiations pursuant to subsection (i) above, the Parties fail to either (A) reach an agreement on material
terms (which, for clarity, shall be satisfied by agreement on the material aspects of a term sheet, and shall not require entry into a
definitive agreement) with respect to the Product [***] within sixty (60) days or (B) enter into a definitive agreement with respect to
the Product [***] within ninety (90) days after Licensor delivers the applicable ROFR Notice (or such longer period as agreed by the Parties
in writing) (the "Product [***] ROFR Period"), then Licensor shall be free to sell, assign or otherwise transfer
the Product [***] on terms and conditions that are no more favorable to the Third Party, in the aggregate, than the terms and conditions
set forth in the Product [***] Offer.

 

(d)              
Following (i) termination under Sections 9.2(a) or 9.2(b) (subject to the expiration of any inventory sell-off period, as further
described in Section 9.3(a)), (ii) termination under Section 9.2(c) (but only after the expiration of the Offer Period, if the Parties
have not reached agreement on material terms or entered into a definitive agreement within the relevant timeframe set forth in Section
9.3(b)(ii) or Section 9.3(c)(ii), as applicable) or (iii) expiration of this Agreement, Licensor shall either at its option or upon request
of Licensee, take such actions necessary to deregister or withdraw the Licensee Trade Name as an eligible trade name under the Product
[***].

 

(e)               Termination
or expiration of this Agreement for any reason will not relieve the Parties of any obligation accruing prior to such termination or
expiration (including in respect of any Firm Orders). The rights and obligations of the Parties under Sections 2.5 (solely for the
period specified therein), 3.4(b) (solely for the period specified therein), 3.4(c) (solely for the period specified therein), 4.4,
4.8(g), 6.3, 7.4, 7.5, 8.4, 8.5, 9.3, 13.1 (solely with respect to the last sentence thereof) and 13.2 (solely with respect to the
last sentence thereof) and Article XI, Article XII and Article XIV of this Agreement, and any other provision of the Agreement
(including any Exhibit or Schedule) necessary to effectuate the intent of the foregoing, will survive the expiration or termination
of this Agreement.

 

(f)               
In the event of termination of this Agreement for any reason other than pursuant to a termination by Licensee pursuant to Section
9.2(b)(iii), all Milestone Payments pursuant to Section 3.1(a)(i)-(vi) that have not been paid (whether payable or not payable) as of
such termination date shall immediately become due and payable and shall be paid to Licensor within fifteen (15) days of such termination.

 

     

     

    

 

ARTICLE X

FORCE MAJEURE

 

Section 10.1        Force
Majeure. Neither Party will be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or
performing any term or provision of this Agreement (other than the payment of money) to the extent such failure or delay will be
caused (directly or indirectly) by a circumstance beyond the reasonable control of the affected Party, including, without
limitation, (a) fire, flood, epidemic, pandemic, accident, explosion, terrorism, sabotage, strike, or any labor disturbance
(regardless of the reasonableness of the demands of labor); civil commotions; riots; invasions; wars (present or future); acts,
restraints, requisitions, regulations, or directions of any Governmental Entity, except where such acts, restraints, requisitions,
regulations or directions are the result of a Party's violation of Government Rule; (b) voluntary or mandatory compliance by the
Licensor with any request for material represented to be for purposes of (directly or indirectly) producing articles for national
defense or national defense facilities; (c) shortage of labor, fuel, power, or raw materials, inability to obtain supplies, failures
of normal sources of supplies, or inability to obtain or delays of transportation facilities, in all cases of this subsection (c),
as a result of one of one or more the events described in subsections (a) or (b), or a circumstance beyond the reasonable control of
the affected Party; or (d) any act of God (each a "Force Majeure"). Any Party asserting its inability to perform
any obligation hereunder for any such contingency shall promptly notify the other Party of the existence of any such contingency and
shall use Commercially Reasonable Efforts to mitigate such contingency and re-commence its performance of such obligation as soon as
commercially practicable. Subject to this Section 10.1, if the Licensor is unable to supply the Licensee with its requirements of
Products by reason of Force Majeure, Force Majeure shall excuse the Licensor's performance until the Force Majeure has ceased and
for a reasonable period of time thereafter, to allow the Licensor to restore itself to the position it was in with respect to the
Products immediately prior to the Force Majeure; provided that, commencing upon the date of receipt of such notification from
Licensor, Licensee shall no longer be bound by the exclusivity provisions in Section 2.5 and the provisions of Section 5.2(h) shall
thereafter apply, mutatis mutandis. The Parties acknowledge and agree that in respect of any Firm Orders for the Products the
delivery of which was during such Force Majeure period, the Parties shall discuss in good faith the requirements of Licensee and
delivery of such Products. Neither Party shall suffer penalty or incur any liability for its inability to perform hereunder by
reason of Force Majeure. If a Party fails to perform any of its obligations under this Agreement by reason of Force Majeure and such
non-performance continues for a period of one hundred and twenty (120) days from the first occurrence of the event of Force Majeure,
the other Party may terminate this Agreement by providing written notice to that effect to the non-performing Party, and the effects
of termination set forth in Section 9.3(a) shall thereafter apply.

 

     

     

    

 

ARTICLE XI

CONFIDENTIALITY

 

Section 11.1       
Non-disclosure and Non-use Obligation. Each Party or its Affiliates may, from time to time, prior to or after the date hereof,
disclose to the other Party or its Affiliates under this Agreement, Confidential Information (defined below). Each Party (the "receiving
Party") agrees that it will not, and will cause its Affiliates, and will cause its or their employees, agents, contractors or
sublicensees (collectively, "Representatives"), not to, use for any purpose other than as necessary to perform its obligations
or exercise its rights under this Agreement, and will not disclose to anyone in any manner whatsoever, any Confidential Information of
the other Party (the "disclosing Party"), including, without limitation, information relating in any way to the products,
processes, and services of the disclosing Party or its Representatives, which becomes known to the receiving Party on or prior to the
date of the termination or expiration of this Agreement. The obligations of this Section 11.1 will not apply to information that the receiving
Party can demonstrate: (i) is rightfully known to the receiving Party as shown by written records prior to its disclosure by the disclosing
Party or its Representatives; (ii) that becomes public information or is generally available to the public other than by an unauthorized
act or omission of the disclosing Party or its Affiliates or its or their Representatives; or (iii) that is received by the receiving
Party from Third Parties who are in rightful possession of such information and who are lawfully entitled to disclose such information
and did not receive such information from the disclosing Party or its Affiliates or its or their Representatives. For clarity, the existence
of and terms of this Agreement shall be deemed the Confidential Information of both Parties and may not be disclosed to any other Party
without the prior express written consent of the other Party hereto (not to be unreasonably withheld). The term "Confidential
Information" means any technical, business or other information provided by or on behalf of the disclosing Party to the other
Party or its Affiliates in connection with this Agreement, whether prior to, on or after the Effective Date, including information relating
to and the terms of this Agreement, information relating to the Licensed Product (including the Regulatory Documentation), or the scientific,
regulatory or business affairs or other activities of either Party, including trade secrets.

 

Section 11.2       
Effects of Termination. Upon the termination or expiration of this Agreement, each Party will return to the other Party
(or, at such other Party's request, destroy) (with written confirmation thereof) all documents that include Confidential Information of
the other Party or its Affiliates, or its or their Representatives, including all copies of such documents or extracts therefrom, if any,
and will make no further use of such information; provided that, each Party will be entitled to keep one (1) copy of such Confidential
Information in its legal files solely for the purpose of enabling it to comply with the provisions of this Agreement, or as required by
applicable Law.

 

Section 11.3       
Authorized Disclosures. Notwithstanding the obligations set forth in Section 11.1, the receiving Party may disclose Confidential
Information of the disclosing Party to the extent such disclosure is reasonably necessary in the following instances:

 

     

     

    

 

(a)              
 complying with a lawfully issued governmental order or any other requirement of applicable Law to produce or disclose Confidential
Information of the other Party; provided that the receiving Party shall have complied with the requirements of this Section 11.1. With
respect to any such governmental order or requirement of applicable Law, the receiving Party shall first notify the disclosing Party of
such order or requirement of applicable Law so that the disclosing Party may seek to quash such order or to obtain an appropriate protective
order requiring that the Confidential Information that is the subject of such order or requirement of applicable Law be held in confidence
or, if disclosed, be used only for the purposes for which such order was issued or such requirement of applicable Law covers. The receiving
Party shall reasonably cooperate with the disclosing Party in any such proceeding. With respect to any such order that is not quashed
or any other requirement of applicable Law to disclose Confidential Information of the disclosing Party (which shall include any requirement
of the disclosing Party to file this Agreement with the Securities Exchange Commission or any other Governmental Entity), the receiving
Party shall first notify the disclosing Party in writing and shall provide the other Party with at least five (5) Business Days to request
redactions thereof prior to making such filing or disclosure and the Parties shall use commercially reasonable efforts to procure confidential
treatment of the Agreement or relevant provisions thereof, at the disclosing Party's reasonable cost; provided, further, that the receiving
Party shall furnish only that portion of such Confidential Information that the receiving Party is advised by counsel is legally required
to be disclosed. Notwithstanding the foregoing, for clarity, the Parties agree that each Party shall seek confidential treatment of Exhibit
A, A-1 and A-2, which shall be at the disclosing Party's cost and expense.

 

(b)              
to (i) the receiving Party's (or its Affiliates') Representatives, directors, consultants, attorneys, independent accountants or
financial advisors who, in each case, have a need to know such Confidential Information in order for the receiving Party to exercise its
rights or perform its obligations under this Agreement, or (ii) to actual or potential investors, investment bankers, lenders, other financing
sources or acquirors in connection with potential investment, acquisition, collaboration, merger, public offering, due diligence or similar
investigations or in confidential financing documents, provided that, in each case, that any such person is bound by legally enforceable
obligations of confidentiality and non-use consistent with the terms hereof. Notwithstanding the foregoing, (A) Licensee shall not disclose
to any Persons set forth in subsection (ii) above any information disclosed or made available pursuant to Section 5.2(h)(iv) or relating
to the customers, manufacturing costs, volume of sales or market share of Licensor; and (B) Licensor shall not disclose to any Persons
set forth in subsection (ii) above any information disclosed or made available pursuant to Section 3.4, or relating to the customers,
volume of sales or market share of Licensee.

 

Section 11.4        Public
Announcements. Each Party shall have the right to make a public announcement, press release or other public disclosure of the
subject matter of this Agreement; provided that, such Party making such public announcement, press release or other public
disclosure shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for its prior
review and approval. Each Party shall provide its comments, if any, within five (5) Business Days after receiving the other Party's
proposed announcement for review. If either Party desires to make a subsequent public announcement, press release or other public
disclosure concerning the subject matter of this Agreement or any activities hereunder, such Party shall give reasonable prior
advance notice of the proposed text of such announcement to the other Party for its prior review and approval, except that in the
case of a press release or governmental filing required by applicable Law, the disclosing Party shall provide the other Party with
such advance notice as it reasonably can and shall use reasonable good faith efforts to consult with the other party prior to the
issuance of any public announcement, release or disclosure. Each such public disclosure shall contain appropriate references to the
other Party if so requested. A Party commenting on such a proposed disclosure shall provide its comments, if any, within five (5)
Business Days after receiving the proposed disclosure for review. With respect to any disclosures required by Law, neither Party
shall be required to seek the permission of the other Party to repeat any information that has already been publicly disclosed by
such Party, or by the other Party, in accordance with this Section 11.4. Neither Party shall issue a press release or other public
announcement relating to this Agreement without the other Party's prior written consent, except as permitted pursuant to this
Section 11.4. Notwithstanding the above, if required by Law or if it is Licensor's customary practice to list the Product on its
website, Licensor may disclose on its website that the other Party is the exclusive commercial partner of such Party with respect to
the Product and may use the other Party's approved name and logo in conjunction with such disclosure. Except as set forth in the
immediately preceding sentence, each Party shall be required to obtain the written approval of the other Party (not to be
unreasonably withheld or delayed) prior to using the other Party's name, logo or similar identifiers, or to otherwise reference the
other Party's Licensed Product in any way, in each case, in any of its marketing materials or on its website. Notwithstanding the
foregoing, Licensee hereby acknowledges and agrees that [***].

 

Section 11.5       
Equitable Relief. Each Party acknowledges that its breach of this Article XI may cause irreparable harm to the other Party,
which cannot be reasonably or adequately compensated in damages in an action at law. By reasons thereof, each Party agrees that the other
Party shall be entitled, in addition to any other remedies it may have under this Agreement or otherwise, to preliminary and permanent
injunctive and other equitable relief to prevent or curtail any actual or threatened breach of the obligations relating to Confidential
Information set forth in this Article XI by the other Party.

 

     

     

    

 

ARTICLE XII

INDEMNIFICATION

 

Section 12.1        By
the Licensor. From and after the Effective Date, the Licensor will indemnify, defend and hold harmless, and pay and reimburse,
the Licensee and its Affiliates and their respective officers, directors, Representatives, advisors and shareholders (the
 "Licensee Indemnitees") from and against any and all losses, damages, liabilities, expenses and costs, taxes
(including penalties and interest), including reasonable legal expense and attorneys' fees (collectively, "Losses")
resulting from any claim by a Third Party to the extent and only to the extent attributable to: (i) the Licensor's or any Licensor
Indemnitee's gross negligence, willful misconduct or breach of any of its representations and warranties, covenants, agreements or
obligations contained in this Agreement; (ii) any manufacture or commercialization of the DRL Product conducted by or on behalf of
Licensor prior to or after the Effective Date (including, for clarity, any intellectual property infringement claims arising
therefrom); or (iii) any intellectual property infringement claims arising from Licensor's Manufacture of the Product; except in
each case of (i)-(iii), to the extent such claim arises from a circumstance for which Licensee is obligated to indemnify Licensor
pursuant to Section 12.2.

 

Section 12.2        By
the Licensee. From and after the Effective Date, the Licensee will indemnify, defend and hold harmless, and pay and reimburse, the
Licensor and its Affiliates and their respective officers, directors, Representatives, advisors and shareholders (the "Licensor
Indemnitees") from and against any and all Losses resulting from any claim by a Third Party to the extent and only to the extent
attributable to: (i) the Licensee's or any Licensee Indemnitee's gross negligence, willful misconduct or breach of any of its representations
and warranties, covenants, agreements or obligations contained in this Agreement; (ii) intellectual property infringement claims relating
to any Licensee Trademarks; (iii) the content of the Modified Product Labeling; (iv) the sale of any Product by Licensee or its Affiliates
from and after the Effective Date or (v) the registration or association of the trade name Accutane with the Licensed Product or the
sale by any other Person of any products under the trade name/ name Accutane (or containing the name Accutane) prior to the Effective
Date, which shall include, but not be limited to, any Third Party claims or Losses attributable to any products sold under the name Accutane
regardless of the Person that sold such product, except in each case of (i)-(v), to the extent such claim arises from a circumstance
for which Licensor is obligated to indemnify Licensee pursuant to Section 12.1.

 

Section 12.3       
Procedures. If Licensee, Licensor or their respective Affiliates (in each case an "Indemnified Party"),
receive any written claim which such Indemnified Party believes is the subject of indemnity hereunder by another Party hereto (an "Indemnifying
Party"), the Indemnified Party shall, as soon as reasonably practicable after forming such belief, give notice thereof to the
Indemnifying Party, provided that the failure to give timely notice to the Indemnifying Party as contemplated hereby shall not
release the Indemnifying Party from any liability to the Indemnified Party unless the Indemnifying Party demonstrates that the defense
of such claim is materially prejudiced by such failure. The Indemnifying Party shall have the right, by prompt written notice to the Indemnified
Party to assume the defense of such claim at its cost, with counsel reasonably satisfactory to the Indemnified Party, provided, however,
that Licensor shall assume the defense of any claims of patent infringement related to the Licensed Products. If the Indemnifying Party
does not so assume the defense of such claim or, having done so, does not diligently pursue such defense, the Indemnified Party may assume
the defense, with counsel of its choice, but at the cost of the Indemnifying Party. If the Indemnifying Party so assumes the defense,
it shall have absolute control of the litigation; provided that the Indemnified Party may, nevertheless, participate therein through
counsel of its choice and at its cost. The involved Party not assuming the defense of any such claim shall render all reasonable assistance
to the Party assuming such defense, and out-of-pocket costs of such assistance shall be for the account of the Indemnifying Party. No
such claim shall be settled other than by the Party defending the same, and then only with the consent of the other Party, which consent
shall not be unreasonably withheld; provided that the Indemnified Party shall have no obligation to consent to any settlement of
any such claim which (i) imposes on the Indemnified Party any liability or obligation which cannot be assumed or performed in full by
the Indemnifying Party, (ii) does not unconditionally release the Indemnified Party, (iii) requires a statement as to or an admission
of fault, culpability or failure to act by or on behalf of Indemnified Party or (iv) imposes any restrictions on the conduct of business
by the Indemnified Party.

 

     

     

    

 

Section 12.4        Insurance.
At all times from the Effective Date through the termination or expiration of this Agreement (and solely with respect to product
liability insurance, for three (3) years after such termination or expiration), each of the Licensee and the Licensor will maintain
general liability insurance in the amount of not less than USD $5,000,000 per occurrence and USD $5,000,000 in aggregate and product
liability insurance (or self-insurance), which is reasonable and customary in the USA pharmaceutical industry for companies of
comparable size, provided that in no event shall the product liability insurance amounts be less than USD $5,000,000 per occurrence
and USD $5,000,000 in the aggregate limit of liability per year. Notwithstanding the foregoing, Licensee shall not be required to
obtain product liability insurance until all Licensee Regulatory Approvals have been obtained. Each of the Licensee and the Licensor
shall add the other Party as additional insured in their general liability and product liability policy and provide written proof of
such insurance to the other Party upon request.

 

Section 12.5       
Product Liability. Neither the Licensor nor any of its Affiliates shall have any liability arising out of any injury to
any individuals or property as a result of the ownership, possession, or use of any Product manufactured, sold, leased, or delivered by
Licensor, and Licensee shall be solely responsible for any liabilities arising out of any injury to any individuals or property with respect
to the Products, in each case, except to the extent such liability arises from a manufacturing defect which was not detectable by Licensee.
Each Party agrees to take reasonable measures to mitigate such product liability and shall reasonably cooperate with the other Party in
doing so.

 

Section 12.6       
Limitations.

 

(a)              
IN NO EVENT SHALL EITHER PARTY BE LIABLE BY REASON OF ANY BREACH OF ANY REPRESENTATION, WARRANTY, CONDITION OR OTHER TERM OF THIS
AGREEMENT OR ANY DUTY OF COMMON LAW, FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT OR INCIDENTAL OR PUNITIVE LOSS OR DAMAGE (WHETHER FOR LOSS
OF CURRENT OR FUTURE PROFITS, LOSS OF ENTERPRISE VALUE OR OTHERWISE) AND EACH PARTY AGREES THAT IT SHALL NOT MAKE ANY SUCH CLAIM; PROVIDED,
HOWEVER, THAT THE FOREGOING DOES NOT LIMIT ANY OF THE OBLIGATIONS OR LIABILITY OF EITHER PARTY OR ITS AFFILIATES UNDER SECTIONS 12.1 AND
12.2 WITH RESPECT TO CLAIMS OF UNRELATED THIRD PARTIES OR LIABILITY ARISING FROM FRAUD OR WILLFUL MISCONDUCT OF A PARTY OR ITS AFFILIATES
OR CONTRACTORS, OR DAMAGES ARISING FROM A BREACH OF CONFIDENTIALITY UNDER SECTION 11.

 

(b)              
Notwithstanding any other provision of this Agreement, in the event that the Licensee asserts or claims that the Licensor has breached
any of its obligations hereunder, the Licensor's maximum liability under or in connection with such claim herein shall be limited to the
repayment of (i) [***] and (ii) [***] ([***]%) (except that if such obligation of Licensor to indemnify Licensee hereunder is due to a
manufacturing defect caused by Licensor that results in personal injury or death to a user, in such event the cap shall be [***] ([***]%)
percent) of the [***]; provided, however, that the foregoing shall not limit any liability arising from a breach of Article XI,
intentional fraud, gross negligence or willful misconduct of Licensor or its Affiliates or its or their employees, agents or contractors.

 

(c)              
The Parties expressly agree, that notwithstanding anything to the contrary provided herein or elsewhere, Licensor shall not be
responsible for and shall not be required to indemnify or repay Licensee for any Inability to Supply Charges.

 

     

     

    

 

ARTICLE XIII

INTELLECTUAL PROPERTY RIGHTS

 

Section 13.1       
License from Licensee. The Licensee hereby grants to the Licensor (and its Affiliates and its and their Representatives)
for the Term of this Agreement, a royalty-free, non-exclusive, non-transferable, right and license under the Licensee Trademarks, to the
extent necessary to carry out Licensor's obligations under this Agreement; provided, however that nothing herein contained shall give
or be deemed to give or shall be intended to give the Licensor any right, title, interest or claim in or to the Licensee Trademarks. Licensor
agrees that any goodwill associated with its, its Affiliates or their respective Representatives' use of the Licensee Trademarks shall
inure solely to the benefit of Licensee.

 

Section 13.2        License
from DRL. In the event that any trade names ([***]), corporate names or the like owned, licensed or controlled by DRL or any of
its Affiliates is required by applicable Law to be used in the Product Labeling (collectively, the "DRL Trade
Names"), Licensor hereby grants to Licensee (and its Affiliates and its and their Representatives) for the Term of this
Agreement, a royalty-free, non-exclusive, non-transferable, right and license under the DRL Trade Names, solely to the extent
necessary to carry out Licensee's obligations under this Agreement; provided, however that nothing herein contained shall
give or be deemed to give or shall be intended to give the Licensee any right, title, interest or claim in or to the DRL Trade
Names. Licensee agrees that any goodwill associated with its, its Affiliates or their respective Representatives' use of the DRL
Trade Names shall inure solely to the benefit of Licensor.

 

ARTICLE XIV

MISCELLANEOUS

 

Section 14.1       
Assignment.

 

(a)              
Neither Party may assign its rights or obligations under this Agreement without the prior written consent of the other Party (not
to be unreasonably withheld, conditioned or delayed); provided, however, that after the Effective Date Licensor may assign its
rights and obligations under this Agreement, without the prior written consent of the Licensee, to an Affiliate or in connection with
a Change of Control of Licensor or the sale of the Licensed Product or all or substantially all of the assets relating to the Licensed
Product.

 

(b)              
Notwithstanding the foregoing, after the Effective Date and upon at least fifteen (15) Business Day prior notice, Licensee may
assign its rights and obligations under this Agreement, without the prior written consent of the Licensor, to an Affiliate of Licensee
or in connection with a Change of Control of Licensee, provided that:

 

(i)                
Licensee may not assign any rights or obligations to a Direct Competitor without the prior written consent of Licensor (which consent
shall be within Licensor's sole discretion);

 

(ii)              Upon
or at any time following an assignment in connection with a Change of Control of Licensee, upon notice by Licensor, (A) the
 "Wholesaler Limit" shall automatically reduce to fifteen (15%) percent and the references in Section 2.2 to
 "twenty-five (25%) percent" and "thirty (30%) percent" shall automatically be updated to read "fifteen
(15%) percent" and "twenty (20%) percent", respectively; and (B) Section 5.2(h) shall be deleted from this Agreement
in its entirety, provided that if a Secondary Supplier is qualified or in the process of being qualified under the Product [***],
Licensor shall have the sole right to terminate such Secondary Supplier and withdraw such Secondary Supplier from the Product
[***].

 

     

     

    

 

(c)              
As a condition to any assignment by Licensee, Licensee shall pay Licensor any remaining unpaid Milestone Payments pursuant to Section
3.1(a)(i)-(vi) that have not been paid, whether payable or not payable, prior to any such assignment hereof. Any permitted assignee or
successor-in-interest will assume all obligations of its assignor under this Agreement.

 

(d)              
No assignment will relieve either Party of its responsibility for the performance of any obligation. Any permitted assignee shall
assume all obligations of its assignor under this Agreement in writing. This Agreement will be binding upon and inure to the benefit of
the Parties hereto and their respective successors and permitted assigns. Any attempted assignment in violation of this Agreement shall
be void ab initio.

 

Section 14.2       
Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable by any Law or public policy,
the remaining provisions of this Agreement will nevertheless remain in full force and effect and will not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom as long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid,
illegal or unenforceable, the Parties will negotiate reasonably and in good faith to modify this Agreement so as to effect the original
intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated
as originally contemplated to the greatest extent possible.

 

Section 14.3       
Notices. All notices and other communications required or permitted to be given or made pursuant to this Agreement shall
be in writing signed by the sender and shall be deemed duly given (a) on the date delivered, if personally delivered, (b) the date of
transmission, if such notice or communication is delivered via email (with return receipt), (c) on the date sent by telecopier with automatic
confirmation by the transmitting machine showing the proper number of pages were transmitted without error, (d) on the Business Day after
being sent by Federal Express or another recognized overnight mail service which utilizes a written form of receipt for next day or next
Business Day delivery or (e) two (2) Business Days after mailing, if mailed by United States postage-prepaid certified or registered mail,
return receipt requested, in each case addressed to the applicable Party at the address set forth below; provided that a Party
may change its address for receiving notice by the proper giving of notice hereunder:

 

     

     

    

 

(a)              
if to the Licensee, to:

 

Journey Medical Corporation

9237 East Via De Ventura Blvd., Suite 105

Scottsdale, AZ 85258, USA

Attn: President & CEO

E-mail: cmaraoui@jmcderm.com

 

[***]

 

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

 

Journey Medical Corporation

2 Gansevoort Street, 9th Floor

New York, NY 10014

Attn: General Counsel

E-mail: SBerry@fortressbiotech.com

 

(b)              
if to the Licensor, to:

 

Dr. Reddy’s Laboratories Ltd.

[***]

 

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

 

Dr. Reddy’s Laboratories Ltd.

[***]

 

And

 

Dr. Reddy’s Laboratories Ltd.

[***]

 

It is understood and agreed that ordinary course
business communications necessary between the Parties in performing their duties, in due course, under the terms of this Agreement, including
the placement of orders and the delivery of Forecasts, may be delivered by e-mail (with return receipt requested).

 

Section 14.4       
Governing Law. This Agreement and its negotiation, execution, performance or non-performance, interpretation, termination,
construction and all claims or causes of action (whether in contract, in tort, at Law or otherwise) that may be based upon, arise out
of, or relate to this Agreement, or the transactions contemplated hereby (including any claim or cause of action based upon, arising out
of or related to any representation or warranty made in connection with this Agreement or as an inducement to enter this Agreement), shall
be exclusively governed by, and construed in accordance with, the Laws of the State of New York regardless of Laws that might otherwise
govern under any applicable conflict of laws principles.

 

     

     

    

 

Section 14.5       
Jurisdiction, Venue, Service of Process, WAIVER OF JURY TRIAL

 

(a)               Any
legal proceeding based upon, arising out of, or related to this Agreement and its negotiation, execution, performance,
non-performance, interpretation, termination, construction or the transactions contemplated hereby (a "Legal
Proceeding") shall be heard and determined in the courts in the County of New York in the State of New York. The Parties
hereto hereby irrevocably submit to the exclusive jurisdiction and venue of such courts in any such Legal Proceeding and irrevocably
and unconditionally waive the defense of an inconvenient forum, or lack of jurisdiction to the maintenance of any such Legal
Proceeding. The consents to jurisdiction and venue set forth herein shall not constitute general consents to service of process in
the State of New York and shall have no effect for any purpose except as provided in this Section 14.5 and shall not be deemed to
confer rights on any Person other than the Parties hereto. Each Party hereto agrees that the service of process upon such Party in
any Legal Proceeding arising out of or relating to this Agreement shall be effective if notice is given by overnight courier at the
address set forth in Section 14.3. Each of the Parties also agrees that any final, non-appealable judgment against a Party in
connection with any Legal Proceeding arising out of or relating to this Agreement shall be conclusive and binding on such Party and
that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United States. A
certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or
judgment.

 

(b)              
THE LICENSOR AND THE LICENSEE HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE
AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

 

Section 14.6       
Entire Agreement. This Agreement and the attached Exhibits and Schedules, constitute the entire agreement between the Parties
with respect to the subject matter hereof and all prior agreements with respect hereto are superseded. Each Party confirms that no representations,
warranties, covenants or understandings of any kind, nature or description whatsoever are being made or relied upon by any Party, except
such as are as specifically set forth herein. No amendment or modifications hereof will be binding upon the Parties unless set forth in
a writing specified to be an explicit amendment to this Agreement duly executed by authorized representatives of each of the Parties.
The Parties recognize that, during the Term of this Agreement, a purchase order, acknowledgement form or similar routine document (collectively
 "Forms") may be used to implement or administer provisions of this Agreement. Therefore, the Parties agree that the terms
of this Agreement, as it may be amended, will prevail in the event of any conflict between this Agreement and the printed provision of
such Forms, or typed provisions of Forms that add to, vary, modify or are in conflict with the provisions of this Agreement with respect
to the Products sold during the Term of this Agreement.

 

Section 14.7       
Headings; Interpretation. The headings used in this Agreement are intended for convenience only and will not be considered
part of the written understanding among the Parties and will not affect the construction of this Agreement. Except where the context expressly
states otherwise, any use of the term "days" in this Agreement shall be deemed to mean calendar days and to the extent a deadline
measured in calendar days falls on day other than a Business Day, the next Business Day shall be the applicable deadline.

 

     

     

    

 

Section 14.8       
Independent Contractors. It is expressly agreed that the Licensor, on the one hand, and the Licensee, on the other
hand, will be independent contractors and that neither the relationship among the Parties nor this Agreement will be construed as
creating a partnership, joint venture or agency. Neither the Licensor, on the one hand, nor the Licensee, on the other hand, will
have the authority to make any statements, representations or commitments of any kind, or to take any action or to incur any
liability or obligation which will be binding on the other, without the prior consent of the other Party to do so. All persons
employed by a Party will be employees of such Party and not of the other Party and all costs and obligations incurred by reason of
any such employment will be for the account and expense of such Party. The Parties (and any successor, assignee, transferee, or
Affiliate of a Party) shall not treat or report the relationship between the Parties arising under this Agreement as a partnership
for United States tax purposes, without the prior written consent of the other Party unless required by Law.

 

Section 14.9       
Waiver. The waiver by either Party of any right hereunder or the failure to perform or of a breach by the other Party will
not be deemed a waiver of any other right hereunder or of any other or subsequent breach or failure by said other Party whether of a similar
nature or otherwise.

 

Section 14.10   
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which
together will constitute one and the same instrument.

 

Section 14.11   
Performance by Affiliates. Each Party may perform some or all of its obligations under this Agreement through its Affiliates,
provided, however, that such Party shall remain responsible and be guarantor of the performance by its Affiliates and shall cause its
Affiliates to comply with the provisions of this Agreement in connection with such performance.

 

Section 14.12   
No Benefit to Third Parties. The representations, warranties, covenants and agreements set forth in this Agreement are for
the sole benefit of the Parties and their successors and permitted assigns, and nothing herein, express or implied, is intended to or
will confer upon any person or entity any legal or equitable rights, benefits or remedies, other than to the extent set forth in Sections
12.1 and 12.2.

 

[signature page follows]

 

     

     

    

 

WITNESS WHEREOF, the Parties
hereto have caused this Agreement to be signed by their respective representatives thereunto duly authorized, all as of the Effective
Date.

 

	 	DR. REDDY'S LABORATORIES LTD.
	 	 	 
	 	By:	/s/ Erez Israeli
	 	Name:	Erez Israeli
	 	Title:	Chief Executive Officer

 

	 	JOURNEY MEDICAL CORPORATION
	 	 
	 	By:	/s/ Claude Maraoui
	 	Name:	Claude Maraoui
	 	Title:	President & CEOExhibit 10.8

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

LICENSE AND SUPPLY AGREEMENT

 

This License and Supply Agreement
("Agreement"), dated as of March 10, 2015 (the "Effective Date"), is made by and between Journey Medical
Corporation, a Delaware corporation ("Journey"), and Blu Caribe, Inc., a Puerto Rican corporation ("Blu").

 

ARTICLE 1

DEFINITIONS

 

As used throughout this Agreement
and any exhibits, schedules or attachments hereto, each of the following terms will have the respective meaning set forth below:

 

"Accounting Standards"
shall mean U.S. generally accepted accounting principles, consistently applied throughout the organization of a party.

 

"Act" means
the United States Federal Food, Drug, and Cosmetic Act as amended from time to time.

 

"Affiliate"
means, with respect to a party, any other business entity that directly or indirectly controls, is controlled by, or is under common control
with, such party. A business entity or party will be regarded as in control of another business entity if it owns directly or indirectly
(i) in the case of corporate entities, more than fifty percent (50%) of the equity securities in the subject entity entitled to vote in
the election of directors, and (ii) in the case of an entity that is not a corporation, more than fifty percent (50%) of the equity securities
or other ownership interests in the subject entity with the power to direct the management and policies of such entity by any means whatsoever
or entitled to elect the corresponding management authority.

 

"ANDA" means
an abbreviated new drug application pursuant to 21 U.S.C. § 355(j) et seq., and the regulations promulgated thereunder, as such
application may be amended or supplemented from time to time.

 

"Applicable Law"
means all applicable provisions of constitutions, statutes, laws, rules, treaties, regulations, guidelines and orders of all governmental
authorities and all applicable orders, rules and decrees of courts in the Territory.

 

"Blu ANDA"
means the abbreviated new drug application No. 062269 filed with the FDA and all supplements and amendments thereto.

 

"Blu Indemnified Parties"
has the meaning given in Section 12.2.

 

"Blu Net Profit"
means Blu Net Sales less Cost of Blu Royalty Product less Distribution Costs incurred by Blu during the respective Contract Quarter.

 

"Blu Net Sales".
means the gross invoice price from sales of the Blu Royalty Product in the Territory by Blu or its Affiliates, less:

 

    1 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		(a)	returns, return reserves, and discounts, including discounts made by means of rebates, to direct or indirect
customers, including patient rebate cards, wholesaler fees and chargebacks directly related to the sales of the Blu Royalty Product (and
including rebates or other payments required to be paid to governmental entities in connection with sales of such product pursuant to
the Omnibus Budget Reconciliation Act of 1990 and similar other Federal or state legislation or programs, including for damaged goods,
returns, recalls, rebates, savings cards or rejections);

 

		(b)	applicable taxes (to the extent borne by Blu and separately stated on the invoice and included in the
gross invoice price), other than income taxes;

 

		(c)	sales credits customary in the industry and accrued in accordance with applicable Accounting Standards,
including price protection, shelf stock adjustments, other price adjustments, pre-procurement charges by customers (backorder charges),
and other similar charges; and

 

		(d)	any other specifically identifiable costs or charges included in the gross invoice price for the Blu Royalty
Product customarily deducted in the pharmaceutical industry, including, without limitation, shipping, and insurance.

 

Blu Net Sales shall be determined
in accordance with Accounting Standards, consistent with Blu's books and records applicable in the Territory. Sales of Blu Royalty Product
between Blu and any of its Affiliates for resale shall be excluded from the computation of Blu Net Sales, but the subsequent resale of
Blu Royalty Product to an Third Party shall be included within the computation of Blu Net Sales.

 

"Blu Royalty Product"
means generic Doxycycline Hyclate 50 mg tablets that are the subject of the Blu ANDA that do not contain any branding, including, without
limitation, trademarks, logos, or brand names.

 

"Blu 100mg Product"
means generic Doxycycline Hyclate 100 mg tablets that are the subject of the Blu ANDA that do not contain any branding, including, without
limitation, trademarks, logos, or brand names.

 

"Business Day"
means any day other than a Saturday, Sunday or legal holiday on which banks in New York, New York are closed.

 

"cGMP" means
current Good Manufacturing Practices, as set forth in the United States Code of Federal Regulations (21 CFR part 210 & Part 211).

 

"Commercially
Reasonable" means, with respect to the efforts to be expended or considerations to be undertaken by a party related to any
objective, activity or decision to be undertaken hereunder, reasonable, good faith efforts to accomplish a similar objective,
activity or decision under similar circumstances. Such efforts will be similar to those efforts, considerations and resources
commonly used by a party for a similar product owned by it or to which it has rights, which product is at a similar stage in its
product life and is of similar market potential taking into account the competitiveness of alternative products sold by third
parties in the marketplace, the regulatory status, market conditions and the profitability of the product.

 

    2 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

"Convicted Entity"
means a corporation, partnership or association that has been convicted of a criminal offense that falls within the ambit of 21 U.S.C.
 § 1320a — 7(a), but has not yet been excluded, debarred, suspended or otherwise declared ineligible.

 

"Convicted Individual"
means an individual who has been convicted of a criminal offense that falls within the ambit of 21 U.S.C. § 1320a — 7(a), but
has not yet been excluded, debarred, suspended or otherwise declared ineligible.

 

"Cost of Blu Royalty
Product" shall mean an amount equal to [***] ([***] %) of the fully absorbed costs to manufacture a Blu Royalty Product, consisting
of raw and packaging materials, labor and allocated overhead, based on the full absorption costing allocation method to manufacturing
a Blu Royalty Product, in each case determined and recorded in accordance with Accounting Standards. Cost of Blu Royalty Product as of
the Effective Date is set forth in Schedule B.

 

"Cost of Journey Product"
shall mean an amount equal to [***] ([***] %) of the fully absorbed costs to manufacture a Journey Product, consisting of raw and packaging
materials, labor and allocated overhead, based on the full absorption costing allocation method to manufacturing a Journey Product, in
each case determined and recorded in accordance with Accounting Standards. Cost of Journey Royalty Product as of the Effective Date is
set forth in Schedule B.

 

"Damages"
has the meaning given in Section 12.1.

 

"Data Package"
means the technical manufacturing and quality information contained within the Blu ANDA and specifications and control documents that
provide for the technical and regulatory transfer of data to a third party manufacturer of Journey Product to assure supply of the Journey
Products. The information required in the Data Package is listed in Schedule D.

 

"Debarred Entity"
means a corporation, partnership or association that has been debarred by the FDA pursuant to 21 U.S.C. § 335a (a) or (b) from submitting
or assisting in the submission of any abbreviated drug application, or a subsidiary or Affiliate of a Debarred Entity.

 

"Debarred Individual"
means an individual who has been debarred by the FDA pursuant to 21 U.S.C. § 335 (a) or (b) from providing services in any capacity
to a person that has an approved or pending drug product application.

 

"Detail"
means a face-to-face contact by a sales representative with a healthcare professional during which time a promotional message
involving a Journey Product is presented to the healthcare professional in the first position. The sales representative will, as is
commercially reasonable inquire, investigate, promote, request, or identify where a prescriber may prescribe Journey Product. Sales
aids, product samples, co-pay cards, and various other marketing materials or promotions may be utilized when commercially
reasonable.

 

    3 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

"Distribution Costs"
means total costs incurred by a party for customary distribution expenses (e.g., insurance, transportation and freight outbound charges,
VAT tax and duties).

 

"Excluded Entity"
means an entity (i) that has been excluded, debarred, suspended or is otherwise ineligible to participate in federal health care programs
such as Medicare or Medicaid by the Office of the Inspector General ("OIG/HHS") of the Department of Health and Human
Services, or (ii) that has been excluded, debarred, suspended or is otherwise ineligible to participate in federal procurement and non-procurement
programs, including those produced by the United States General Services Administration ("GSA").

 

"Excluded Individual"
means an individual who has been excluded, debarred, suspended or is otherwise ineligible to participate in (i) federal health care programs
such as Medicare or Medicaid by the OIG/HHS, or (ii) federal procurement and non-procurement programs, including those produced by the
GSA.

 

"FDA" means
the U.S. Food and Drug Administration, and any successor or replacement agency.

 

"Force Majeure Event"
has the meaning given in Article 8.

 

"Initial Forecast"
has the meaning given in Section 4.3.

 

"Journey Marketing
Costs" means total costs incurred by Journey for customary selling, promoting and marketing Journey Product within the Territory,
including, without limitation all (i) sales force costs, (sales team expenses, sales compensation, promotional budgets, training, equipment
relating to sales and engaging customers, sample tracking, and FDA required methods including Sunshine Act and PDMA compliance, (ii) expenses
regarding sales force targeting, for example: sales force automation, territory alignment, prescription data, and call and detail tracking,
(iii) expenses regarding marketing tactical programs to enhance product uptake, for example: sales aid development, copay cards, samples,
and other communications to reach and influence, including all support provided to the sales team. Journey Marketing Costs shall be documented
in accordance with Accounting Standards.

 

"Journey Net Profit"
means Journey Net Sales less (i) Cost of Journey Product, (ii) Distribution Costs incurred by Journey during the respective quarter, and
(iii) Journey Marketing Costs, subject to limits set forth in section 5.3(d) incurred by Journey in the respective Quarter.

 

"Journey Net Sales"
means the gross invoice price from sales of the Journey Product in the Territory by Journey or its Affiliates, less:

 

		(a)	returns, return reserves, and discounts, including discounts made by means of rebates, to direct or indirect
customers, including patient rebate cards, wholesaler fees and chargebacks directly related
to the sales of the Journey Product (and including rebates or other payments required to be paid to governmental entities in connection
with sales of such product pursuant to the Omnibus Budget Reconciliation Act of 1990 and similar other Federal or state legislation or
programs, including for damaged goods, returns, recalls, rebates, savings cards or rejections);

 

    4 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		(b)	applicable taxes (to the extent borne by Journey and separately stated on the invoice and included in
the gross invoice price), other than income taxes;

 

		(c)	sales credits customary in the industry and accrued in accordance with applicable Accounting Standards,
including verifiable credits taken for price protection, shelf stock adjustments, other price adjustments, pre-procurement charges by
customers (backorder charges limited to only those charges directly resulting from a supply interruption by Blu); and

 

		(d)	any other specifically identifiable costs or charges included in the gross invoice price for the Journey
Product customarily deducted in the pharmaceutical industry, including, without limitation, shipping, and insurance.

 

Journey Net Sales shall be
determined in accordance with Accounting Standards, consistent with Journey's books and records applicable in the Territory. Sales of
Journey Product between Journey and any of its Affiliates for resale shall be excluded from the computation of Journey Net Sales, but
the subsequent resale of Journey Product to an Third Party shall be included within the computation of Journey Net Sales.

 

"Journey Product"
means branded Doxycycline Hyclate 50 mg tablets and 100 mg tablets covered by the Blu ANDA, including samples, for sale to the human market.

 

"Latent Defect"
means any instance where the Journey Product fails to conform to the Specifications for such Journey Product and such failure would not
be discoverable upon reasonable physical inspection of such Journey Product or other testing customarily conducted by Journey or its designee
upon receipt by Journey in accordance with its standard operating procedures.

 

"Launch Quantities"
has the meaning set forth in Section 4.3(b).

 

"NDC Number"
shall mean a unique 3-segment number that identifies the labeler/vendor, the product and the trade package size.

 

"Phase 1"
shall mean the time period prior to a Third Party Launch.

 

"Phase 2"
shall mean the time period beginning immediately after Phase 1 and ending 2 years afterwards.

 

    5 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

"Phase 3"
shall mean the time period commencing upon the expiration of Phase 2 and containing until the termination of the Agreement.

 

"Product Intellectual
Property Rights" means all patent rights, know-how and other intellectual property rights owned or controlled by Blu or its Affiliates
covering the manufacture, use or sale of Journey Products.

 

"Journey Indemnified
Parties" has the meaning given in Section 12.1.

 

"Specifications"
means the specifications for the design, composition, manufacture, packaging, branding, labeling, and quality control of the Journey Product
as set forth in Schedule A hereto.

 

"Territory"
means the United States of America, its commonwealths, territories and possessions, including the District of Columbia, the Commonwealth
of Puerto Rico, the U.S. Virgin Islands, the Marshall Islands, and Guam.

 

"Third Party"
shall mean any entity other than Blu, Journey and their respective Affiliates.

 

"Third Party Launch"
means the commencement by a Third Party that is not an Affiliate of Blu of commercial sales of generic Doxycycline 1-lyclate 50 mg tablets
in the Territory intended for human use where such sales are not under the Blu ANDA.

 

ARTICLE 2

RIGHT TO USE

 

		2.1	Grant of Rights.

 

(a)              
Exclusive Rights. Blu hereby appoints Journey as the exclusive (except as set forth in Section 2.1(b) below) distributor
of the Journey Products, with the right to market, promote, distribute, offer to sell and sell the Journey Products, in the Territory
under the Blu ANDA. For clarity, the foregoing exclusivity shall prohibit Blu and its Affiliates from directly or indirectly distributing,
marketing, selling or accepting orders for the sale of Journey Product and, in the Territory, and from supplying or licensing any Third
Party to do each and all of the foregoing, except as set forth in Section 2.1(b) below.

 

(b)              
Nonexclusive Rights. Notwithstanding Section 2.1(a), Blu shall retain the right to market, promote, distribute, offer to
sell and sell the Blu 100 mg Product in the Territory under the Blu ANDA. Further, Blu shall retain the exclusive rights to market the
50 mg Product for animal use in the Territory.

 

(c)              
Use of Affiliates. Notwithstanding anything to the contrary contained herein, Journey may discharge any obligations and
exercise any right hereunder, or performance hereunder, through any of its Affiliates, provided that Journey shall remain responsible
in all cases for compliance with this Agreement by such Affiliates.

 

    6 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		2.2	Restrictions. Except as provided in Section 2.1(b) and Section 2.3, neither Blu nor its
Affiliates shall, directly or indirectly during the Term, manufacture, market, promote, distribute, offer to sell or sell a product containing
Doxycycline Hyclate in the Territory, including, without limitation Blu Royalty Products.

 

		2.3	Blu Royalty Products. Upon Journey's written approval following a Third Party Launch (which
approval will not be unreasonably withheld following a Third Party Launch), the restrictions set forth in Section 2.2 shall terminate
solely with respect to Blu Royalty Products.

 

		2.4	Right of First Negotiation.

 

(a)              
During the Term, in the event that Blu desires to enter into an agreement with a Third Party with respect to the sale or other
disposition of the Blu ANDA , Blu will notify Journey of the same (a "Application Notice"). If Journey would like to
negotiate an Agreement to acquire the Blu ANDA in the Territory, it shall notify Blu in writing of such request within fifteen (15) days
after its receipt of an Application Notice (the "Notice Period"). Blu shall, for a period of thirty (30) days following
receipt of such notification from Journey (the "Negotiation Period") enter into good faith negotiations with Journey
with respect to the acquisition of the Blu ANDA.

 

(b)              
If Journey (i) does not request to pursue such an agreement within the Notice Period, then Blu will be free to enter into an agreement
with a Third Party with respect thereto or (ii) does request that the Parties negotiate such an agreement regarding the Blu ANDA within
the Notice Period, but the Parties do not conclude an agreement within the Negotiation Period, then Blu shall be free to enter into an
agreement with a Third Party but only if (x) this Agreement is assigned to such Third Party, (y) such Third Party agrees in writing (in
a form and substance approved in writing by Journey) to assume all of Blu's obligations and liabilities hereunder and (z) Blu guarantees
in writing (in a faun and substance approved in writing by Journey) the performance of this Agreement by such Third Party. Any assignment
of the Blue ANDA in violation of this Agreement shall be void ab initio.

 

		2.5	ANDA Rights. Blu shall retain all right, title and interest in and to the Blu ANDA during
the term of this Agreement. During the term of this Agreement, Blu shall not assign or transfer the Blu ANDA to any Third Party.

 

ARTICLE 3

SALES AND MARKETING ACTIVITIES

 

		3.1	Commercial Efforts. Journey will use Commercially Reasonable efforts to market and sell
the Journey Products. Until a Third Party Launch occurs, Journey will conduct at least [***] Details with the Journey Products in P1 position
during each year of this Agreement. Upon a Third Party Launch, the foregoing obligation to conduct minimum details shall terminate. Efforts
of Affiliates shall be deemed efforts of Journey. Within 30 days after the last day of each calendar quarter, Journey will provide Blu with a quarterly
report of Details that summarizes the number of Details conducted during the respective calendar quarter. The Details will be logged into
a computer database that will record all interactions and capture prescriber signatures for samples. Details will be recorded within a
reasonable time period of their occurrence.

 

    7 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		3.2	Journey Pricing. Journey will have independent, sole discretion to determine the pricing;
terms of sale, marketing, and selling decisions for the Journey Products without any consultation with, input from, or prior notice to
Blu.

 

		3.3	Rebate Processing.

 

(a)              
Journey will be solely responsible for all federal, state and local government and private purchasing, pricing or reimbursement
programs with respect to its sales of the Journey Product (including, without limitation, co-pay cards), including taking all necessary
and proper steps to execute agreements and file other appropriate reports and other documents with governmental and private entities and
Journey will be solely responsible for payment and processing of all rebates, whether required by contract or local, state or federal
law, for its sales of the Journey Product.

 

(b)              
To the extent Blu is required by Applicable Law to refer to Journey Product sales made by Journey in Blu's government price reports,
Journey will provide Blu with aggregate sales figures for the Journey Product sales made by Journey. This information will be contained
in the Journey Revenue Share Report provided to Blu pursuant to Section 5.3(c). Blu shall use any data or information relating to pricing
that Journey provides under this Section 3.3 or otherwise for the limited purpose of complying with price reporting to regulatory authorities
that is required by Applicable Laws and for no other purpose. Blu shall not use any such data or information in connection with its sales,
marketing or contract operations.

 

ARTICLE 4

SUPPLY AND MANUFACTURE

 

		4.1	Bin Supply Obligations. Subject to the provisions of this Article 4, Blu will supply to
Journey one hundred percent (100%) of Journey's purchase order requests for the Journey Product. Blu will supply the Journey Product in
the dosage forms and unit types set forth on Schedule A.

 

		4.2	Journey Purchase Obligations. Except as set forth below and in Section 4.11, Journey and
its Affiliates shall purchase 100% of their requirements of Journey Product from Blu, provided, however, that, commencing upon a Supply
Interruption and continuing thereafter until the termination of this Agreement, Journey may at any time purchase from a Backup Manufacturer
the percent of its requirements from a Backup Manufacturer that are required by such Backup Manufacturer (as documented in an agreement
between the Backup Manufacturer and Journey to qualify and maintain such Backup Manufacturer as a manufacturer of Journey Product. For each tablet of
Journey Product ordered and received by Journey from a Backup Manufacturer other than during a Supply Interruption, Journey will pay Blu
[***] ($[***]) (the "Overhead Compensation Payment"). The Overhead Compensation Payment will be paid by Journey on a
calendar quarter basis within sixty (60) days following the last day of each calendar quarter in which Overhead Compensation Payment accrues.
For the avoidance of doubt, no Overhead Compensation Payment is due with respect to Journey Product ordered by Journey during a Supply
Interruption.

 

    8 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		4.3	Journey Initial Forecast; Launch Quantities.

 

(a)              
Within thirty (30) days after the Effective Date, Journey will deliver to Blu a forecast for all Journey Product required for the
twelve (12) month period commencing on April 1, 2015, excluding Launch Quantities (the "Initial Forecast"). The Initial
Forecast will be non-binding upon the parties.

 

(b)              
In addition to Journey Product supplied to Blu pursuant to purchase orders submitted by Journey hereunder, Journey hereby orders,
and Blu hereby agrees to supply to Journey, before July 31, 2015 between [***] tablets and [***] tablets of Journey Product (50 mg strength)
of Journey Product (which will be provided in [***] ([***]) batches); ("Launch Quantities"). Such Journey Product shall
be (i) bottled (i.e., breakdown of trade sizes and sample sizes) as instructed by Journey in writing within thirty (30) days of the Effective
Date and (ii) shipped to a destination identified by Journey in writing.

 

		4.4	Ongoing Forecasts. On the fifteenth day of the second month of each calendar quarter (commencing
with May 15, 2015), Journey shall provide Blu a good faith 12-month rolling forecast of anticipated orders of Journey Product to be placed
during each month of such period (each, a "Forecast"). Each Forecast will specify, on a month-by-month basis during the
12-month period covered by the particular Forecast, the quantity of Journey Product required during such period. The first quarter (consecutive
three month period ending in March, June, September or December) of each such Forecast shall be a binding commitment by Journey to place
purchase orders for the forecasted quantity of Journey Product (the "Binding Purchase Commitment"). Each such Forecast
shall otherwise be non-binding, except as provided below, but shall reflect Journey's good faith expectation (at the time of submitting
the Forecast) of the orders of Finished Product and Finished MIT and projected delivery dates during the 12-month period.

 

		4.5	Orders. Journey shall order Journey Product by submitting written purchase orders to Blu
specifying (i) the quantity of Journey Product ordered, and (ii) the desired delivery date for such Journey Product, which shall be no
earlier than 60 days from submission of purchase order. Journey shall not submit orders more frequently than once every three (3) months
without prior agreement from Blu, which agreement will not be unreasonably withheld or delayed. Journey shall submit its purchase order
for the binding portion of each Forecast to Blu at least 60 days in advance of the desired delivery date. All purchase
orders that do not exceed the forecasted quantity of Journey Product specified in the binding portion of a Forecast or the Initial Forecast
shall be deemed accepted by Blu upon receipt. Any purchase order submitted by Journey to Blu shall reference this Agreement and shall
be governed exclusively by the terms contained herein. The parties hereby agree that the terms and conditions of this Agreement shall
supersede any term or condition in any purchase order, confirmation or other document, furnished by Journey or Blu that is in any way
inconsistent with these terms and conditions. Not later than 7 days after receipt of a purchase order, Blu shall confirm its receipt of
the purchase order in writing. For any purchase order that exceeds the forecasted quantity specified in the binding portion of a Forecast
or the Initial Forecast, the portion of the order not in excess of such quantity shall be deemed accepted by Blu and Blu shall notify
Journey whether or not Btu will be able to fulfill the excess portion of such purchase order (or part thereof) and the expected delivery
date for fulfillment, provided that in all events, Blu shall use Commercially Reasonable efforts to fulfill the order with respect to
such excess portion as soon as reasonably practicable. Blu shall supply to Journey the forecasted quantity in the binding portion of the
applicable Forecast or the Initial Forecast by the delivery date set forth in the respective order and shall use Commercially Reasonable
efforts to supply to Journey any quantity in excess of such forecasted quantity as soon as reasonably practicable.

 

    9 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		4.6	Shipping. All Journey Products shall be supplied in finished product containers, F.O.B.,
point of origin and risk of loss and title to the Journey Product shall pass to Journey upon shipment of the Journey Product from Blu's
facility located in Dorado, PR. Until so shipped, Blu shall ensure that the Journey Product is handled and stored in accordance with the
Specifications, cGMP, and all Applicable Laws. Each shipment of Journey Product will be accompanied by a certificate of compliance confirming
that the Journey Product has been manufactured in accordance with this Agreement and the Blu ANDA. Any deviations and investigations related
to the Journey Product will be documented by Blu in accordance with the Blu ANDA and the Quality Agreement.

 

		4.7	Quality Agreement. On the Effective Date, the parties are entering into a Quality Agreement
in substantially the form attached hereto as Exhibit A, setting forth the specific responsibilities, procedures and guidelines
for batch release, quality control testing, quality assurance review, acceptance testing and other quality-related aspects of the manufacture
and release of Journey Product, as such agreement may be amended from time to time by mutual written agreement of the parties (the "Quality
Agreement"). Each party agrees to perform the responsibilities assigned to such party under the Quality Agreement in accordance
with the terms and conditions of the Quality Agreement. In case of any conflict between the provisions of this Agreement and those of
the Quality Agreement, the Quality Agreement shall prevail as to any quality-related matter, and this Agreement shall prevail as to all
other matters.

 

    10 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		4.8	Quality Audits. Blu shall maintain all quality control documentation and acceptance test
results for Journey Product supplied hereunder for a period and in a manner consistent the Quality Agreement, the Blu ANDA, cGMP and Applicable
Law. Journey may periodically review such documentation and results, and, as set forth in the Quality Agreement, audit and verify the
adherence of Blu to the quality control procedures and standards set forth in the Quality Agreement or prescribed by Applicable Law or
cGMP.

 

		4.9	Acceptance/Rejection. Except as set forth in this Agreement, Journey Products may not be
returned to Blu. Journey (or its authorized representative) shall perform a reasonable and customary visual inspection of all Journey
Product that is reasonably discernible upon such visual inspection not to (i) conform to Specifications, Blu ANDA, Applicable Laws and
cGMP or (ii) have at least twenty-two months of shelf life remaining at the time of receipt (unless otherwise agree to in writing by Journey)
(collectively, the "Journey Product Requirements"); (in each case, "Non-Conforming Product") within
10 days of receipt of Journey Product by Journey's distributor. Notwithstanding the foregoing, Journey may reject Journey Product after
such period following discovery of latent defects in such Journey Product that could not reasonably have been discovered by a reasonable
and customary visual inspection, provided that Journey provides to Blu notice of Non-Conforming Journey Product within two (2) days following
discovery of such latent defect. If any Journey Product is found to be Non-Conforming Product and is reported by Journey to Blu in the
above time frame, then Blu shall, at Journey's request and option (to be exercised by Journey promptly), either: (a) replace such Non-Conforming
Product at no additional charge to Journey; (b) refund to Journey the amount paid (if already paid) to Blu for such Non-Conforming Product
or cancel the applicable purchase order if not paid; or (c) credit Journey's account in an amount equal to the amount paid for such Non-Conforming
Product, and in any case ((a), (b) or (c)) Blu shall reimburse all shipping charges for the Non-Conforming Product from the destination
of the original shipment, subject to receipt of invoice. Blu shall reimburse Journey for the reasonable costs incurred by Journey in properly
disposing of or shipping to Blu (as instructed by Blu) such Non-Conforming Product, subject to receipt of invoice.

 

		4.10	Dispute Regarding Rejection. If the parties disagree as to whether a particular delivery
of Journey Product contains Non-Conforming Product, and cannot resolve such disagreement within 60 days, the parties shall appoint an
independent testing laboratory or other appropriate expert mutually acceptable to the parties (the "Testing Laboratory")
to (a) review data that are in question or (b) to oversee the evaluation and testing of a sample of Journey Product at the Testing Laboratory.
The Testing Laboratory will conduct testing in accordance with the methods established for testing as set forth in the applicable Specifications.
The party whose position in the dispute was not supported by the Testing Laboratory's findings shall bear the costs of the Testing Laboratory.

 

    11 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		4.11	Supply Continuity.

 

(a)              
In the event Blu determines that it will not be able to supply Journey Products to Journey in material satisfaction of the most
recent orders and/or Forecasts, Blu shall promptly notify Journey in writing of such determination, which notice shall provide Journey
with the details on the extent of the expected shortfall of supply, the causes of such inability to supply, and Blu's proposed solution
to the problem.

 

(b)              
In the event Journey reasonably believes that Blu will be unable to meet Journey's forecasts for a Journey Product for more than
thirty (30) days (a "Supply Interruption"), then Journey shall have the right, upon thirty (30) days written notice to
Blu ("Manufacturing Notice"), to manufacture or have manufactured by a Backup Manufacturer (as defined below) the Journey
Products unless Journey has, during such thirty (30) day period (the "Assurance Period"), received reasonable evidence
of Blu's ability to meet such forecasts and reasonably determined that Blu will be able to meet such forecasts ("Supply Continuity
Assurance Confirmation"). Without limiting the generality of the foregoing, a Supply Interruption shall be deemed to occur if:

 

		(i)	Blu, with respect to any order of Journey Product, fails to supply, on a timely basis, at least 90% of
Journey Product under such order conforming to the Journey Product Requirements;

 

		(ii)	a Force Majeure Event affecting the performance of Blu specified in Article 8 shall continue for more
than sixty (60) days; or

 

		(iii)	any facility involved in manufacturing-related activities regarding the Journey Product (including, without
limitation, packaging, labeling, testing, storing and release) is prohibited from, or materially adversely affected in its ability to,
produce, store, or otherwise be in involved in the Manufacture or provision of such Journey Product to Journey under this. Supply Agreement
by Regulatory Authorities or due to a failure to comply with Applicable Laws or cGMP.

 

(c)              
Notwithstanding anything to the contrary herein, Journey shall at any time during the Term be entitled to qualify itself, its Affiliates
and/or one or more Third Parties ("Backup Manufacturers"), to manufacture Journey Products for the purpose of such Backup
Manufacturers supplying Journey with Journey Product upon a Supply Interruption. Blu acknowledges that the manufacture of Journey Product
by a Backup Manufacturer shall not be a violation of this Agreement or any rights of Blu or its Affiliates.

 

(d)               Subject
to Blu's right to reject a Backup Manufacturer as described below, upon Journey's written request at any time (the "Backup
Manufacturer Request"), Blu shall promptly (i) file (within thirty (30) days of Blu's receipt from Journey of all
information reasonably necessary to file) with the FDA a supplement to the Blu ANDA and any other documents necessary to designate,
qualify, authorize and obtain FDA approval of, Backup Manufacturers identified by Journey in the Backup Manufacturer Request to
manufacture Journey Product and (ii) take any other actions reasonably requested by Journey to (x) accomplish such designation,
qualification, authorization or approval and (y) obtain approvals necessary for Blu to manufacture or have manufactured Journey
Product. Blu shall not take any action that would result in the termination of, or otherwise adversely affect, such designation and
authorization. Journey shall reimburse Blu for its reasonable, documented out-of-pocket third party costs incurred in performing its
obligations under this Section 4.11(d). If Blu, within seven (7) days of a receipt of a Backup Manufacturer Request, reasonably
determines that a Backup Manufacturer identified therein (i) will not be able to manufacture Product in compliance with the Product
Requirements, (ii) is at such time a manufacturer of doxycycline or a product which directly competes with Doxycycline, or (iii)
reasonably unsuitable from a compliance or risk standpoint, then it may reject such Backup Manufacturer by providing to Journey
written notice of the same during such seven (7) day period, which notice shall include reasonably detailed reasons for such
rejection.

 

    12 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(e)              
Within thirty (30) days of the Effective Date, Blu shall deliver to Journey (and/or any Backup Manufacturer designated thereby),
copies of the Data Package and any other information, including technical information, that is owned or controlled by, or in the possession
of, Blu or any Affiliate thereof, that is reasonably necessary or useful to permit a Backup Manufacturer to manufacture Journey Product,
including but not limited to information regarding acquiring raw materials from Blu's sources of such raw materials (the "Transferred
Know-How"). Blu shall promptly provide any other information requested by Journey from time to time during the Term that is reasonably
necessary or useful to permit a Backup Manufacturer to manufacture Journey Product. Blu shall provide Journey or any Third Party designee
thereof reasonable assistance, at Journey's request, with respect to understanding and implementing such Transferred Know-How.

 

(f)               
Blu hereby grants Journey a license, until the expiration of the then-current Term to and under all Product Intellectual Property
Rights, Transferred Know-How and the Blu ANDA (including a right to reference the Blu ANDA) to (i) use, make and have made Journey Products
worldwide for Qualification Purposes-and (ii) sell, offer for sale and import such Journey Products in the Territory. "Qualification
Purposes" means (x) qualifying as a manufacturer of Journey Products and (y) maintaining qualification as a manufacturer of Journey
Products.

 

(g)              
If there is no Supply Assurance Continuity Confirmation during the Assurance Period, then, effective upon the expiration of the
Assurance Period: (i) Blu hereby grants Journey, until the expiration of the then-current Term, a license under and to all Product Intellectual
Property Rights, Transferred Know-How and the Blu ANDA (including a right to reference the Blu ANDA) to (x) use, make and have made Journey
Products worldwide and (y) sell, offer for sale and import such Journey Products in the Territory and (ii) all of Journey's obligations
under Sections 4.1-4.4 shall terminate, except the obligation to make the Overhead Compensation Payment in Section 4.2. For the avoidance
of doubt, the obligations set forth in Section 5.3 shall remain in full force and effect.

 

    13 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(h)              
 In the event a Supply Interruption occurs and Journey reasonably determines that (i) Blu has resolved the issues that caused the
Supply Interruption and (ii) Blu will be able to supply, in compliance with this Agreement, Journey's requirements of Journey Products
for a continuous period of twelve (12) months, then (x) the respective Supply Interruption shall be deemed to have ended, (y) Journey
shall again be subject to the requirements of Sections 4.1-4.4 and (z) the license set forth in Section 4.11(g) shall no longer be in
effect.

 

ARTICLE 5

CONSIDERATION

 

		5.1	Fees.

 

(a)              
Upon the execution of this Agreement, Journey will pay Blu a refundable fee in the amount of One Million Two Hundred Fifty Thousand
Dollars ($1,250,000) (the "Initial Fee"). In the event Journey does not receive before July 31, 2015 one hundred percent
(100%) of the Launch Quantities in compliance with the Product Requirements, (i) Blu shall refund to Journey the full Initial Fee on or
before August 15, 2015 and (ii) until Journey receives such refund in full, Journey is hereby granted a perpetual, irrevocable, fully-paid
exclusive right and license under the Blu ANDA and all patent rights, know-how and other intellectual property rights owned or controlled
by Blu and its Affiliates to make, have made, use, sell, offer for sale, import and otherwise commercially exploit Journey Products. Notwithstanding
anything to the contrary herein, the foregoing license shall survive the termination of this Agreement.

 

(b)              
If Journey receives confirmation from Blu, on or before July 31, 2015, that at least [***] tablets of the Launch Quantities are
on Blu's loading dock and ready for shipment to Journey or its designee, then Journey shall pay Blu [***] Dollars ($[***]) within 5 days
of such confirmation.

 

		5.2	Purchase Price.

 

(a)              
The price to be paid by Journey for each Journey Product hereunder (the "Price") shall be equal to Cost of Journey
Product as of the Effective Date, as adjusted below. At least sixty (60) days prior to each annual anniversary of the Effective Date,
the parties shall review the then-current Cost of Journey Product and the parties shall, in good faith, amend the nice by a mutually agreed
upon proportionate amount prior to such anniversary to reflect (i) any documented, verifiable decreases or increases in the cost of materials
used to manufacture the Journey Product as compared to such costs included in the Cost of Journey Product used as the basis for the then-current
Price and (ii) any documented, verifiable decreases, or up to [***]% of any documented, verifiable increases, in labor and allocated overhead
used to manufacture Journey Product (based on the full absorption cost allocation method to determine such portion of the cost of manufacturing
a Journey Product) as compared to such overhead amount included in the Cost of Journey Product used as the basis for the current Price,
provided that (1) any such change in Price shall not be effective until such anniversary.

 

    14 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(b)              
 Blu shall invoice Journey for the Price of the Journey Product promptly after delivery of such Journey Product. The Price shall
be due and payable by Journey to Blu within thirty (30) days after invoice date of the Product to Journey.

 

(c)              
Blu shall keep complete, true and accurate books of accounts and records for the purpose of determining Cost of Journey Product
("Cost Records"). Such books and records shall be kept for such period of time no less than three years following the
end of the calendar year to which they pertain.

 

(d)              
Blu shall use commercially reasonable efforts to minimize the Cost of Journey Product. Such efforts on the part of Blu shall include,
but not be limited to, (i) adopting any changes to manufacturing processes, or any other aspect of the manufacturing and supply of Journey
Product hereunder proposed by Journey with the intent or having the effect of reducing the Cost of Journey Product, (ii) continually developing
and implementing process improvements intended to increase manufacturing efficiencies and decrease manufacturing costs, (iii) obtaining
raw materials at the lowest possible price, and (iv) otherwise seeking reductions in its cost to manufacture, handle, store, and otherwise
supply Journey Product hereunder.

 

		5.3	Revenue Sharing.

 

(a)              
Journey Revenue Sharing. Journey shall pay Blu the following amounts (the "Journey Revenue Share")

 

		(i)	With respect to the 100 mg form of the Journey Product, Journey shall pay Blu an amount equal to [***]
% of Journey Net Sales.

 

		(ii)	With respect to the 50 mg form of the Journey Product, Journey shall pay Blu an amount equal to [***]
% of Journey Net Profit with respect to Net Sales occurring during Phase 1 and Phase 2.

 

		(iii)	With respect to Journey Net Sales of the 50 mg —form of the Journey Product occurring during Phase
3, Journey shall pay Blu an amount equal to [***] % of Journey Net Sales.

 

(b)              
Blu Revenue Sharing. Blu shall pay Journey a revenue share (the "Blu Revenue Share") equal to [***] % of Blu Net
Sales with respect to Blu Net Sales occurring during Phase 1 and Phase 2. No payments shall be due with respect to Blu Net Sales occurring
during Phase 3.

 

(c)               Payment
Terms. Amount payable under Section 5.3 that have accrued during a particular Calendar Quarter shall be paid, on a calendar quarter
basis, within 45 days after the end of each calendar quarter during which the payment obligation accrued. Within 45 days after the
end of each calendar quarter during which Journey Net Sales have occurred, Journey shall deliver to Blu together with the applicable
Journey Revenue Share, a written report summarizing the calculation of such Journey Revenue Share (the "Journey Revenue
Share Report"). An example of the Journey Revenue Share Report is attached hereto as Exhibit B. Blu acknowledges that such
example is solely for illustrative purposes and that Journey is not bound in any respect by such example. Within 45 days after the
end of each calendar quarter during which Btu Net Sales have occurred, Blu shall deliver to Journey together with the applicable Blu
Revenue Share, a written report summarizing the calculation of such Blu Revenue Share. Each such report shall be deemed
 "Confidential Information" of the party providing such report subject to the obligations of Article 10 of this Agreement.
For three (3) years after the occurrence of Journey Net Sales, Journey shall keep complete and accurate records of such Journey Net
Sales in sufficient detail to confirm the accuracy of the Journey Revenue Share and the calculation thereof. For three (3) years
after the occurrence of Blu Net Sales, Blu shall, in accordance with the Accounting Standards, keep complete and accurate records of
such Blu Net Sales in sufficient detail to confirm the accuracy of the Blu Revenue Share and the calculation thereof.

 

    15 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(d)              
Journey Net Profit Cost Limits. Within ninety (90) days following the last day of each calendar year in' which Journey pays
Blu a Journey Revenue Share pursuant to Section 5.3(a)(ii) (the "Journey Net Profit Share"), Journey shall determine
the aggregate Journey Marketing Costs deducted in such calendar year ("Aggregate Annual Marketing Costs"). If the Aggregate
Annual Marketing Costs in any such calendar year exceeds the following amounts, as applicable: (i) during the first calendar year of this
Agreement, the greater of $[***] or [***] % of Journey Net Sales during such calendar year, (ii) in the second calendar year of this Agreement,
the greater of $[***] or [***] % of Net Sales during such calendar year, (iii) in the third calendar year of this Agreement, the greater
of $[***] or [***] % of Net Sales during such calendar year, or (iv) in each calendar year thereafter, the greater of $[***] or [***]
% of Net Sales during such calendar year (each of items (i), (ii), (iii) and (iv), a "Cost Cap"), then (x) Journey shall
recalculate the Journey Net Profit Share for such calendar year (the "Adjusted Journey Net Profit Share"), provided that
the Journey Marketing Costs deducted from Journey Net Profit in such calendar year shall not exceed the applicable Cost Cap , and (y)
Journey shall, within ninety (90) days following the last day of such calendar year, pay Blu the difference between the Adjusted Journey
Net Profit Share and the Journey Net Profit Share actually paid to Blu for such calendar year. Journey shall, in accordance with the Accounting
Standards, keep complete, true and accurate books of accounts and records for the purpose of determining Journey Net Profit Share. Such
books and records shall be kept for such period of time no less than three years following the end of the calendar year to which they
pertain.

 

		5.4	Audit Rights.

 

(a)              
During the term of this Agreement and for a period of 60 days thereafter upon not less than 30 days' prior written notice, Journey
shall permit an independent, certified public accountant of national recognition (for the purposes of this Section 5.4, the "Auditor")
selected by Blu and reasonably acceptable to Journey, which acceptance shall not be unreasonably conditioned, withheld or delayed, to
audit or inspect those books or records of Journey that relate to the Journey Revenue Share for the sole purpose of verifying such payments.

 

(b)               During
the term of this Agreement and for a period of 60 days thereafter upon not less than 30 days' prior written notice, Blu shall permit
an Auditor selected by Journey and reasonably acceptable to Blu, which acceptance shall not be unreasonably conditioned, withheld or
delayed, to audit or inspect (i) those books or records of Blu that relate to the Blu Revenue Share for the sole purpose of
verifying such payments and (ii) the Cost Records for the sole purpose of verifying the Cost of Journey Products.

 

    16 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		5.5	Payment Dispute. In the event Journey disputes a payment due to Blu hereunder in good faith,
Journey shall pay the undisputed portion during the time period required herein and the parties shall work together in good faith to resolve
such dispute.

 

ARTICLE 6

TERM & TERMINATION

 

		6.1	Term. The term of this Agreement will commence on the Effective Date, and subject to the
terms of this Article 6, will continue for ten (10) years thereafter (the "Initial Term"). Upon the expiration of the
Initial Term, the term of this Agreement shall automatically renew for additional three (3) year periods (each, a "Renewal Term"
and, together with the Initial Term, the "Term") until such time as a period gives the other party notice of termination
at least one hundred eight (180) days prior to the expiration of the Initial Term or the then current Renewal Term.

 

		6.2	Termination by Blu. This Agreement may be terminated by Blu:

 

(a)              
If Journey shall be in breach of any material obligation hereunder and has not cured such breach within ninety (90) days after
receipt of a notice from Blu requesting the correction of such breach (unless such breach is by its nature not susceptible of being cured
or the giving of such notice would be futile or impracticable, in which event no notice shall be necessary). Such termination shall be
effective upon the occurrence of such breach or, if a right to cure exists, upon failure of Journey to cure such breach within the specified
time period. For the avoidance of doubt, a breach of the Binding Purchase Commitment shall be deemed a breach of a material obligation;

 

(b)              
Upon the filing or institution of any bankruptcy, reorganization, liquidation or receivership proceedings by Journey, or upon the
failure by Journey for more than ninety (90) days to discharge or obtain the dismissal of any such actions filed against it. Such termination
shall be effective upon receipt of notice from Blu.

 

		6.3	Termination by Journey. This Agreement may be terminated by Journey:

 

(a)               if
Blu shall be in breach of any material obligation hereunder (other than a payment obligation), and has not cured such breach within
ninety (90) days after receipt of a notice from Blu requesting the correction of such breach (unless such breach is by its nature
not susceptible of being cured or the giving of such notice would be futile or impracticable, in which event no notice shall be
necessary). Such termination shall be effective upon the occurrence of such breach or, if a right to cure exists, upon failure of
Blu to cure such breach within the specified time period;

 

    17 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(b)             
upon the filing or institution of any bankruptcy, reorganization, liquidation or receivership proceedings by Blu, or upon the failure
by Blu for more than ninety (90) days to discharge or obtain the dismissal of any such actions filed against it. Such termination shall
be effective upon receipt of notice from Journey;

 

(c)              
upon a breach by Blu of Section 2.4 or 2.5; or

 

(d)             
if (i) Journey does not receive confirmation from Blu of the availability for shipment of the Launch Quantities in compliance with
the Product Requirements before July 31, 2015 or (ii) if such Launch Quantities are not available at such time.

 

		6.4	Effect of Expiration or Termination.

 

(a)            Upon expiration or termination of this Agreement, Journey and its Affiliates shall immediately cease all sales, marketing and distribution
of the Journey Product except that Journey and its Affiliates shall have the right to market, distribute, offer to sell and sell the remaining
Journey Product then on hand in their inventory as of the date of such expiration, consistent with Journey's existing practices, which
shall not be commercially unreasonable.

 

(b)              Upon termination of this Agreement by Journey pursuant to Section 6.3, Journey shall have the option, in its sole discretion, to
cancel all or any portion of any then outstanding purchase orders.

 

(c)              Termination of this Agreement for any reason will not release either party hereto from any liability which at such time has already
accrued or which thereafter accrues from a breach or default prior to such expiration or termination, nor affect in any way the survival
of any other right, duty or obligation of either party hereto which is expressly stated elsewhere in this Agreement to survive such termination.

 

ARTICLE 7

REGULATORY MATTERS

 

		7.1	Facility Licenses. Blu shall obtain and maintain, or cause to be obtained and maintained,
for the facility(ies) at which Journey Product is manufactured, labeled, packaged, tested or stored, all permits, licenses and approvals
(including facilities licenses) required for the manufacture and supply of Journey in compliance with this Agreement. In the event Blu
subcontracts any of its obligations hereunder, Blu shall be responsible for the subcontractors compliance with the terms and conditions
of this Agreement, and Blu shall be responsible for the performance of such subcontractors.

 

    18 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		7.2	FDA Communications. Journey and Blu agree, to promptly notify the other party in the event
they receive any communication or notice from FDA with respect to the Journey Product or Doxycycline Hyclate and each party will promptly
provide a copy of such communications to the other. The parties will cooperate in good faith in responding to any such FDA inquiry or
in making any report to FDA with respect to the Journey Product. Journey will have the responsibility in the Territory for complying with
all regulatory requirements and other matters which relate solely to Journey's acting as a distributor of the Journey Product in the Territory.
All other regulatory reporting matters (including adverse event and product complaint reporting) will be Blu's responsibility for the
Journey Product.

 

		7.3	Labeling and Packaging.

 

(a)              
Journey shall obtain NDC Numbers for the Journey Product and shall distribute and sell only the Journey Product bearing the applicable
NDC Numbers. Blu shall promptly submit to the FDA and DailyMed the Journey Product label under the Blu ANDA . Journey is responsible for
other drug listing of their private label Journey Product.

 

(b)              
All Journey Products will be private labeled by Blu with the names and trademarks chosen by Journey (the "Journey Product
Marks"). As part of the manufacture of Journey Products, Blu shall package and label the Journey Products in accordance with
the Specifications. Except as required to fulfill contractual obligations hereunder, Blu shall not apply any trademarks, trade names,
logos or other branding items to packaging and labeling for the Products other than (i) Journey Product Marks and (ii) the Blu trademarks
set forth in the Specifications. Journey hereby grants Blu a nonexclusive license to use the Journey Product Marks to package and label
the Journey Products in accordance with the Specifications. Blu shall not use the Journey Product Marks for any other purpose. Journey
shall retain all right, title and interest in and to the Journey Product Marks. All use of the Journey Product Marks shall inure to the
benefit of Journey. During the Term and thereafter, Blu shall not in any event (i) register or, any trademark which is confusingly similar
to the Journey Product Marks or Journey or (ii) use the Journey Product Marks in any manner whatsoever which may jeopardize the significance,
distinctiveness or validity thereof. Blu hereby recognizes the validity of the Journey Product Marks and the registrations thereof, and
will not, during the Term or thereafter, contest the validity thereof During the Term and thereafter, Journey shall not in any event (i)
register or, any trademark which is confusingly similar to the Blu Product Marks or Blu or (ii) use the Blu Product Marks in any manner
whatsoever which may jeopardize the significance, distinctiveness or validity thereof. Journey hereby recognizes the validity of the Blu
Product Marks and the registrations thereof, and will not, during the Term or thereafter, contest the validity thereof.

 

		7.4	Recalls. Blu and Journey will each notify the other party promptly, and in any event
                                                                      within twenty-four (24) hours, if any batch of Journey Product is the subject of a recall or market withdrawal, and the parties will
                                                                      reasonably cooperate in the handling and disposition of such recall or market withdrawal; provided, however, in the event of a
                                                                      disagreement as to any matters related to such recall or market withdrawal, other than the determination of who will bear the costs
                                                                      as set forth in the immediately following sentence, Blu
will have the final authority with respect to any product recall relating to the Journey Product. Blu will bear the cost of all recall
or market withdrawals of Journey Product. Journey will maintain records of all sales of Journey Product and all customers sufficient to
adequately administer a recall or market withdrawal for the longer of one (1) year after termination or expiration of this Agreement or
the period required by Applicable Law or cGMP. Blu will be responsible for administering the physical aspects of any recalls or market
withdrawals with respect to the Journey Product. Blu will provide Journey Product to Journey at Bill's expense to replace the recalled
Journey Product.

 

    19 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		7.5	Complaints. Journey and Blu will each notify the other of any product complaints made by
customers that will or could cause an FDA "field alert" to be issued, within twenty-four (24) hours of the decision to file
a field alert and will thereafter reasonably cooperate with each other relative to any investigation or inquiry that may be initiated
by FDA with respect thereto. For purposes of clarification, the parties acknowledge that the foregoing complaint handling procedures will
only apply to complaints which implicate the manufacturing, packaging, testing or storage of the Journey Product.

 

		7.6	Inspection by Journey. Blu agrees that Journey and its respective agents (but no more than
a total of three persons per inspection) shall have the right, pursuant to a reasonable confidentiality agreement with Blu, no more than
once per calendar year (unless any such inspection reveals a material compliance issue, in which event Journey and its respective agents
shall have the right to conduct such additional inspections during such calendar year as necessary to verify that such issue has been
remedied), upon reasonable prior notice to Blu and during business hours, to inspect the portion of the facility where Journey Product
is manufactured or stored as well as to observe the manufacturing of the foregoing, including inspection of (a) the raw materials used
in the manufacture of the foregoing, (b) the holding facilities for such raw materials, (c) the equipment used in the manufacture of the
foregoing, and (d) all material records reasonably relating to such manufacturing and the manufacturing facility, to the extent they relate
to Journey Product. Following such inspection, Journey shall discuss its observations and conclusions with Blu. If the parties shall mutually
agree that any corrective actions by Blu are necessary, Blu shall use 'Commercially Reasonable Efforts to implement such agreed corrective
actions as soon as practicable.

 

		7.7	FDA Inspections. In the event Blu's or Blu's Contract Manufacturer's manufacturing, packaging,
testing or storage facility (or facilities) producing Journey Product is/are inspected by representatives of any federal agency in connection
with Blu's or Blu's Contract Manufacturer's manufacture of the Journey Product, Blu will notify Journey within twenty four hours upon
learning of such inspection, and will supply Journey with complete copies of any correspondence or communications or portions thereof
which relate to the Journey Product.

 

    20 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		7.8	Inquiries from Health Care Professionals. Blu shall provide reasonable assistance to Journey
in its preparation and filing with appropriate regulatory agencies (both federal and state agencies) related to reimbursement and health
care insurance' filings required for the marketing and distribution of Journey Product in the Territory by Journey. Blu and Journey will
work together in good faith to develop such necessary regulatory strategies, which may be required for purposes of this Agreement. In
addition, Blu will provide Journey with copies (in electronic format if available) of those materials, which Blu uses to respond to inquiries
regarding applicable products from consumers and health care professionals.

 

ARTICLE 8

FORCE MAJEURE

 

If either party is prevented
from performing any of its obligations hereunder (except for any financial payments due hereunder) due to any cause that is beyond the
non-performing party's reasonable control and could not have been avoided through the use of Commercially Reasonable efforts, including
fire, explosion, flood, or other acts of God; acts, regulations, or laws of any government; court injunction or other court order; war,
terrorist act or civil commotion; strike, lock-out or labor disturbances; or failure of public utilities or common carriers (each, a "Force
Majeure Event"), such non-performing party will not be liable for breach of this Agreement with respect to such non-performance
to the extent any such non-performance is due to a Force Majeure Event. Such non-performance will be excused for as long as such event
will be continuing, provided that the non-performing party gives written notice to the other party of the Force Majeure Event within three
(3) Business Days. Such non-performing party will exercise all reasonable efforts to eliminate the Force Majeure Event and to resume performance
of its affected obligations as soon as practicable.

 

ARTICLE 9

INSURANCE

 

Each party shall procure and
maintain at its cost insurance, including product liability insurance, adequate to cover its obligations hereunder and which are consistent
with normal business practices of comparable companies with respect to similar obligations and liabilities, at all times during the Term.
Each party will, on request, provide to the other party evidence of such insurance coverage. Upon execution of the agreement Journey will
provide Blu with evidence of limits on premise liability, personal injury, advertising injury and Products Liability. Products Liability
limits will be at a minimum of $[***]. Furthermore Journey will provide Blu with a certificate of insurance naming Blu as additional insured
and must specifically list the Journey Product. Upon execution of the agreement Btu will provide Journey with evidence of limits on premise
liability, personal injury, advertising injury and Products Liability. Products Liability limits will be at a minimum of $[***]. Furthermore
Blu will provide Journey with a certificate of insurance naming Journey as additional insured and must specifically list the Journey Product.

 

    21 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

ARTICLE 10

CONFIDENTIALITY

 

		10.1	Generally. Except to the extent expressly authorized by this Agreement or otherwise agreed
in writing by the parties, each party agrees that, during the Term and for five (5) years thereafter, such party (the "Receiving
Party") shall keep confidential and shall not publish or 'otherwise disclose and shall not use for any purpose other than as
expressly provided for in this Agreement any information furnished to it by the other party (the "Disclosing Party")
pursuant to this Agreement (collectively, "Confidential Information"). The Receiving Party may use such Confidential
Information only to the extent required to accomplish the purposes of this Agreement. The Receiving Party will use at least the same standard
of care as it uses to protect proprietary or confidential information of its own to ensure that its employees, agents, consultants and
other representatives do not disclose or make any unauthorized use of the Confidential Information. The Receiving Party will promptly
notify the Disclosing Party upon discovery of any unauthorized use or disclosure of the Confidential Information.

 

		10.2	Exceptions. Confidential Information shall not include any information which the Receiving
Party can prove by competent evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the Receiving
Party, generally known or available; (b) is known by the Receiving Party at the time of receiving such information, as evidenced by its
records; (c) is hereafter furnished to the Receiving Party by a Third Party, as a matter of right and without restriction on disclosure;
or (d) is independently discovered or developed by the Receiving Party without the use of Information provided by the Disclosing Party.

 

		10.3	Authorized Disclosure. Each Receiving Party may disclose Confidential Information of the
Disclosing Party as expressly permitted by this Agreement (including as reasonably necessary for the Receiving Party's performance of
its obligations under this Agreement), or if and to the extent such disclosure is reasonably necessary in the following instances:

 

(a)            complying with applicable court orders, applicable laws, rules or regulations, or the listing rules of any exchange on which the
Receiving Party's or its Affiliate's securities are traded;

 

(b)              enforcing the Receiving Party's rights under this Agreement;

 

(c)             in the case of Journey, manufacturing, or having manufactured, the Product upon a Supply Interruption; provided that any such Receiving
Party agrees to be bound by terms of confidentiality and non-use comparable in scope to those set forth in this Article 10;

 

(d)              disclosure
to the Receiving Party's Affiliates and to the Receiving Party's and its Affiliates' employees, consultants, contractors or agents
who have a need to know such information in order for the Receiving Party to exercise its rights or fulfill its obligations under
this Agreement, provided, in each case, that any such Affiliate, employee, consultant, contractor or agent agrees to be bound by
teams of confidentiality and non-use comparable in scope to those set forth in this Article 10;

 

    22 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(e)              disclosure to Third Parties in connection with due diligence or similar investigations by such Third Parties, and disclosure to
potential Third Party investors in confidential financing documents, provided, in each case, that any such Third Party agrees to be bound
by obligations of confidentiality and non-use comparable in scope to those set forth in this Article 10, provided that the duration of
such obligations may be shorter than the duration of those set forth in this Article 10.

 

Notwithstanding the foregoing, in the event the
Receiving Party is required to make a disclosure of the Disclosing Party's Confidential Information pursuant to Section 10.3, Section
10.5 or Section 10.6, it will, except where impracticable, give reasonable advance notice to the Disclosing Party of such disclosure and
use efforts to secure confidential treatment of such information at least as diligent as the Receiving Party would use to protect its
own confidential information, but in no event less than reasonable efforts. In any event, the Receiving Party agrees to take all reasonable
action to avoid disclosure of Confidential Information hereunder.

 

		10.4	Press Releases. Except as required by applicable securities laws or the listing rules of
any stock exchange on which securities issued by a party or its Affiliates are traded, neither party shall make any public announcement
concerning this Agreement or the terms or subject matter hereof without the prior written consent of the other, which shall not be unreasonably
withheld or delayed. In the event of a required public announcement, to the extent practicable under the circumstances, the party making
such announcement shall use Commercially Reasonable efforts to provide the other party with a copy of the proposed text of such announcement
sufficiently in advance of the scheduled release to afford such other party a reasonable opportunity to review and comment upon the proposed
text, unless the proposed text is substantially the same as that used in any prior public disclosure, press release or public statement
made in accordance with this Section 10.4.

 

		10.5	Filing of this Agreement. The parties shall coordinate in advance with each other in
                                                                       connection with the filing of this Agreement (including redaction of certain provisions of this Agreement) with any securities
                                                                       authority or with any stock exchange on which securities issued by a party or its Affiliate are traded, and each party will use
                                                                       reasonable efforts to seek confidential treatment for the terms proposed to be redacted; provided that each party will ultimately
                                                                       retain control over what information to disclose to any securities authority or stock exchange, as the case may be, and provided
                                                                       further that the parties will use their reasonable efforts to file redacted versions with any governing bodies which are consistent
                                                                       with redacted versions previously filed with any other governing bodies. Other than such obligation, neither party (nor any of its
                                                                       Affiliates) will be obligated to consult with or obtain approval from the other party
with respect to any filings to any securities authority or stock exchange.

 

    23 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		10.6	Use of Name. Neither party shall use the name, insignia, symbol, trademark, trade name or
logotype of the other party (or any abbreviation or adaptation thereof) in any publication, press release or marketing and promotional
material without the prior written approval of such other party in each instance, which approval shall not be unreasonably conditioned,
withheld or delayed. The restrictions imposed by this Section 10.6 shall not prohibit either party from making any disclosure (a) identifying
the other party as a counterparty to this Agreement to its investors, lenders or other financing sources, (b) that is required by Applicable
Law or the requirements of a national securities exchange or another similar regulatory body (provided, that any such disclosure shall
be governed by this Article 10), (c) that is necessary for the performance by of its obligations or exercise of its rights as contemplated
by this Agreement or (d) with respect to which written consent has previously been obtained.

 

ARTICLE 11

REPRESENTATIONS AND WARRANTIES

 

		11.1	Mutual Representations and Warranties. Each party hereby represents and warrants to the
other that, as of the Effective Date: (a) it is duly organized and validly existing under the laws of its jurisdiction of incorporation
or formation, and has full corporate or other power and authority to enter into this Agreement and to carry out the provisions hereof;
(b) it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing
this Agreement on its behalf has been duly authorized to do so by all requisite corporate or partnership action; and (c) this Agreement
is legally binding upon it, enforceable in accordance with its terms, and does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound, nor violate any Applicable Laws or regulation of any court, governmental
body or administrative or other agency having jurisdiction over it.

 

		11.2	Blu Representations and Warranties. Blu represents, warrants and covenants to Journey that:

 

(a)              
all Journey Product: (i) at the time of delivery, will conform to the applicable Product Requirements; (ii) will have been manufactured,
tested, packaged and released in accordance with cGMP, Applicable Laws and Blu's obligations under the Quality Agreement; and (iii) will
not be adulterated or misbranded or otherwise defective within the meaning of the ACT or any other Applicable Laws;

 

(b)              
Blu has the full right, power and authority to grant to Journey the rights and licenses granted to Journey hereunder;

 

    24 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

(c)              
 Blu has not granted, and it shall not grant during the Term, to any Third Party any license or other right to distribute branded
50mg tablets and/or 100mg tablets of Doxycycline Hyclate for human use;

 

(d)              
the Blu ANDA has been approved by the FDA;

 

(e)              
Blu will maintain the Blu ANDA in effect during the Term and will not take any action that will adversely affect the Blu ANDA or
Journey's rights to market, promote, sell and distribute the Journey Product thereunder;

 

(f)               
Blu solely owns all right, title and interest in and to the Blu ANDA;

 

(g)              
Blu (i) is not a party to any legal action, suit or proceeding relating to the Journey Product or, except as set forth in Schedule
C, Blu ANDA; and (ii) has not received any written communication from any Third Party (including the FDA or any other regulatory or
governmental authority) threatening any action, suit or proceeding relating to the Blu ANDA or Journey Product;

 

(h)              
Blu has and will convey to Journey good title to Journey Products free and clear of any security interests, liens, or other encumbrances
of any kind or character; and

 

(i)                
Blu shall comply with all applicable laws, consent decrees, and regulations of any Federal, state, or other governmental authority.

 

		11.3	Journey Representations and Warranties. Journey represents, warrants and covenants to Blu
that:

 

(a)              
Journey has the full right, power and authority to enter into this Agreement;

 

(b)              
Journey (i) is not a party to any legal action, suit or proceeding impacting its ability to sell the Journey Product; and (ii)
has not received any written communication from any Third Party (including the FDA or any other regulatory or governmental authority)
threatening any action, suit or proceeding impacting its ability to sell the Journey Product;

 

(c)              
Journey shall comply with all applicable laws, consent decrees, and regulations of any Federal, state, or other governmental authority.

 

(d)              
Journey will use Commercially Reasonable efforts to market and sell the Journey Products.

 

    25 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		11.4	Debarment. The parties each hereby represent and warrant to the best of their knowledge
after reasonable investigation, that neither it, nor any of its employees or agents who will participate in the performance of this Agreement,
have been, are currently, or are the subject of a proceeding that could lead to their or such employees or agents becoming, as applicable,
a Debarred Entity, Debarred Individual, Excluded Entity, Excluded Individual, Convicted Entity, or Convicted Individual. The parties further covenant,
represent and warrant that, if during the Term of this Agreement it becomes aware that, it, or any of its employees or agents participating
in the performance of their obligations hereunder, become or are the subject of a proceeding that could lead that party, employee or agent
becoming, as applicable, a Debarred Entity, Debarred Individual, Excluded Entity, Excluded Individual, Convicted Entity or Convicted Individual,
then it will immediately notify the other party. In the event of such a notice, the parties will promptly discuss necessary measures to
avoid such a circumstance from affecting a party's performance under this Agreement

 

		11.5	LIMITATION OF LIABILITY. EXCEPT FOR (1) LIABILITY FOR BREACH OF ARTICLE 7, (ii) LIABILITY
FOR A BREACH BY BLU OR ITS AFFILIATES OF SECTION 2.2 AND (iii) ANY DAMAGES ARISING FROM A PARTY'S WILLFUL MISCONDUCT, NEITHER PARTY SHALL
BE ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR OTHER INDIRECT DAMAGES, INCLUDING
LOST REVENUE AND LOST PROFITS, WHETHER BASED UPON WARRANTY, CONTRACT, TORT, STRICT LIABILITY OR OTHER LEGAL THEORY, IN CONNECTION WITH
THIS AGREEMENT; provided, however, that this Section 11.5 shall not be construed to limit either party's indemnification obligations under
Article 12.

 

ARTICLE 12

INDEMNIFICATION

 

		12.1	Indemnification by Blu. Blu will indemnify and hold harmless Journey, its Affiliates, and
each of their respective current or former directors, officers, employees, agents and representatives (the "Journey Indemnified
Parties") from and against any and all damages, liabilities, claims, costs, charges, judgments and expenses (including all reasonable
attorneys' fees and expenses) (collectively "Damages") from third parties that may be sustained, suffered or incurred
by the Journey Indemnified Parties, arising from or in connection with (i) the breach by Blu of any warranty, representation, covenant
or agreement made by Blu in this Agreement, or (ii) the intentional misconduct or gross negligence of any Blu Indemnified Party in connection
with this Agreement or the Journey Product, or (iii) a breach of Blu's responsibilities pursuant to the Quality Agreement, or (iv) Blu
or any of Blu's Affiliates' infringement of the intellectual property rights of a Third Party, except, in the case of clauses (i)-(iv)
immediately above, for Damages for which Journey has an obligation to indemnify the Blu Indemnified Parties pursuant to Section 12.2 as
to which Damages each of Blu and Journey shall indemnify the other party to the extent of its respective liability for such Damages.

 

    26 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		12.2	Indemnification by Journey. Journey will indemnify and hold harmless Blu, its Affiliates,
and each of their respective current or former directors, officers, employees, agents and representatives (the "Blu Indemnified
Parties") from and against any and all Damages from third
parties that may be sustained, suffered or incurred by the Blu Indemnified Parties, arising from or in connection with (i) the breach
by Journey of any warranty, representation, covenant or agreement made by Journey in this Agreement; (ii) Journey's or its distributors'
promotion, marketing, manner of distribution and commercialization of the Journey Products, except to the extent that any of the foregoing
arises out of or results from the breach of this Agreement by Blu or the negligence or willful misconduct of Blu; (iii) the intentional
misconduct or gross negligence of any Journey Indemnified Party in connection with this Agreement or the Journey Product, or (iv) a breach
of Journey's responsibilities pursuant to the Quality Agreement, except, in the case of clauses (i)-(iv) immediately above, for Damages
for which Blu has an obligation to indemnify the Journey Indemnified Parties pursuant to Section 12.1 as to which Damages each of Journey
and Blu shall indemnify the other party to the extent of its respective liability for such Damages.

 

		12.3	Claims. Each Blu Indemnified Party and Journey Indemnified Party ("Indemnified Party")
agrees to give the indemnifying party prompt written notice of any matter upon which such Indemnified Party intends to base a claim for
indemnification (an "Indemnity Claim") under this Article 12. In the event that an Indemnity Claim is brought or made
against both parties, then each party will have the right to be represented by counsel at its own expense. Notwithstanding the foregoing,
in the event that such Indemnity Claim relates solely to causes covered by Section 12.1 hereof, then Blu will assume full control of the
defense of such Indemnity Claim including without limitation the settlement thereof All expenses of such suit, claim or proceeding, including
the settlement and the payment of any damages thereof, will be borne solely by Blu. Notwithstanding the foregoing, in the event that such
Indemnity Claim relates solely to causes covered by Section 12.2 hereof, then Journey will assume full control of the defense of such
Indemnity Claim including without limitation the settlement thereof. All expenses of such suit, claim or proceeding, including the settlement
and the payment of any damages thereof, will be borne solely by Journey. The Indemnified Party will make available to the indemnifying
party and its counsel, at all reasonable times during normal business hours, all books and records of the other party relating to such
suit, claim or proceeding, and each party will render to the other party such assistance as it may reasonably require in order to ensure
proper and adequate defense of any such suit, claim or proceeding. The indemnifying party will obtain the written consent of the Indemnified
Party prior to settling, ceasing to defend or otherwise disposing of any Indemnity Claim if as a result thereof the Indemnified Party
would become subject to injunctive or other equitable relief or the business of the Indemnified Party would be adversely affected in any
manner whatsoever.

 

    27 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

ARTICLE 13

INFORMAL DISPUTE RESOLUTION; EXCLUSIVE JURISDICTION

 

		13.1	Informal Dispute Resolution. Unless otherwise expressly provided for herein, any claim or
controversy between the parties arising out of or relating to the execution, interpretation and performance of this Agreement (including
the validity, scope and enforceability of this provision) will be identified in writing and presented to the other party. Within twenty
(20) days after delivery of such notice of dispute, the President of Blu and the President of Journey (or another executive of a party
or an Affiliate designated by a party's respective President) (the "Designated Officers") will meet (either in person
or via telephone conference) at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to attempt
to resolve the dispute in good faith. All reasonable requests for information made by one party to another will be honored. All negotiations
pursuant to this clause are confidential and will be treated as compromise and settlement negotiations for purposes of applicable rules
of evidence. If such Designated Officers cannot resolve such dispute within ten (10) days after such initial meeting, then each party
reserves its right to any and all remedies available under law or equity with respect to any other dispute. Notwithstanding anything to
the contrary herein, each party may seek immediate or other equitable relief against the other party at any time to enforce their proprietary
rights in confidential information or other intellectual property rights.

 

		13.2	Exclusive Jurisdiction and Governing Law. This Agreement will be governed by and construed
in accordance with the laws of the State of Delaware, without regard to the conflict of law principles thereof. Each of the parties hereto
irrevocably consents to the sole and exclusive jurisdiction and venue of the state and federal courts located in Delaware in all matters
arising out of this Agreement and expressly waives all objections to jurisdiction and venue in such state and federal courts. The parties
agree that service of process upon them in any such action may be made if delivered in person, by courier service, by telegram, by facsimile,
by first class mail, or by any other way permissible under applicable laws and shall be deemed effectively given upon receipt. The parties
agree that, with respect to any action arising out of this Agreement, A RIGHT TO TRIAL BY JURY IS HEREBY WAIVED.

 

ARTICLE 14

MISCELLANEOUS

 

		14.1	Amendment. The parties may add additional products to this Agreement from time to time.
The parties will prepare a Schedule and attach the new Schedule as an amendment to the Agreement, signed and dated by both parties. No
modification, change or amendment to this Agreement will be effective unless in writing signed by each of the parties hereto.

 

    28 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		14.2	Relationship of the Parties. The relationship of Journey and Blu established by this Agreement
is that of independent contractors, and nothing contained herein will be construed to (1) give either party any right or authority to
create or assume any obligation of any kind on behalf of the other, or (ii) constitute the parties as partners, joint venturers, co-owners,
or otherwise as participants in a joint or common undertaking.

 

		14.3	Third Party Rights. Nothing in this Agreement will be deemed to create any Third Party beneficiary
rights in or on behalf of any other person.

 

		14.4	Entire Agreement. It is the mutual desire and intent of the parties to provide certainty
as to their respective future rights and remedies against each other by defining the extent of their mutual undertakings as provided herein.
The parties have, in this Agreement (including the Schedules and Exhibits hereto), and the Quality Agreement referred to herein, incorporated
all representations, warranties, covenants, commitments and understandings on which they have relied in entering into this Agreement,
and, except as provided for herein, neither party makes any covenant or other commitment to the other concerning its future action. Accordingly,
this Agreement and the Schedules and Exhibits hereto and the Quality Agreement referred to herein (i) constitute the entire agreement
and understanding between the parties with respect to the subject matter hereof and there are no promises, representations, conditions,
provisions or teens related thereto other than those set forth in this Agreement; and (ii) supersedes all previous understandings, agreements
and representations between the parties, written or oral.

 

		14.5	Headings and Examples. The Article and Section headings contained in this Agreement and
any examples attached hereto are for reference purposes only and will not affect in any way the meaning and interpretation of this Agreement.

 

		14.6	Notices. All notices and other communications hereunder will be in writing, will be delivered
personally, or sent by national overnight delivery service or postage pre-paid registered or certified U.S. mail, and will be deemed given:
when delivered, if by personal delivery or overnight delivery service; or if so sent by U.S. mail, five (5) Business Days after deposit
in the mail, and will be addressed:

 

	 	If to Journey:	
    Journey Medical Corporation

    9237 E. Via de Ventura Blvd

    Suite 135

    Scottsdale AZ 85258

    Attention: President

     

	 	If to Blu:	
    Blu Caribe, Inc.

    [***]

     

 

or to such other place as either party may designate
by written notice to the other in accordance with the terms hereof.

 

    29 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

		14.7	Failure to Exercise. The failure of either party to enforce at any time for any period any
provision hereof will not be construed to be a waiver of such provision or of the right of such party thereafter to enforce each such
provision, nor will any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or
the exercise of any other right or remedy. Remedies provided herein are cumulative and not exclusive of any remedies provided at law.

 

		14.8	Assignment. This Agreement may not be assigned by either party without the prior written
consent of the other, except that either party may assign its rights and/or obligations hereunder to any successor in interest by way
of merger, acquisition or sale or transfer of all or substantially all of its business or assets to which this Agreement relates. Subject
to the foregoing, this Agreement will bind and inure to the benefit of the parties hereto and their respective permitted successors and
assigns.

 

		14.9	Severability. In the event that any one or more of the provisions (or any part thereof)
contained in this Agreement or in any other instrument referred to herein, will, for any reason, be held to be invalid, illegal or unenforceable
in any respect, the remaining provisions of this Agreement will remain in full force and effect. If any of the terms or provisions of
this Agreement are in conflict with any applicable statute or rule of law, then such terms or provisions will be deemed inoperative to
the extent that they may conflict therewith and will be deemed to be modified to conform with such statute or rule of law. In the event
that the terms and conditions of this Agreement are materially altered as a result of this Section 14.9, the parties will renegotiate
the terms and conditions of this Agreement to resolve any inequities.

 

		14.10	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.

 

		14.11	Survival. Articles 1, 6, 10, 12, 13 and 14, Sections 5.4 and 11.5, and any other terms of
this Agreement which by their nature would continue beyond the termination, cancellation, or expiration of this Agreement, will survive
the termination of this Agreement in accordance with the respective terms thereof

 

[SIGNATURE PAGE FOLLOWS]

 

    30 

     

    

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED
FROM THE

EXHIBIT BECAUSE IT BOTH (I) IS NOT MATERIAL AND (II) WOULD BE

COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED. SUCH EXCLUDED

INFORMATION
HAS BEEN MARKED WITH “[***].

 

IN WITNESS WHEREOF,
the Parties have caused this License and Supply Agreement to be executed and delivered by their respective duly authorized officers as
of the day and year first above written.

 

	JOURNEY MEDICAL CORPORATION	 
	 	 
	By:	/s/ Claude Maraoui	 
	 	 
	Name:	Claude Maraoui	 
	 	 
	Title:	President & CEO	 
	 	 
	BLU CARIBE, INC.	 
	 	 
	By:	/s/ Bill Luster	 
	 	 
	Name:	Bill Luster	 
	 	 
	Title:	President	 

 

    31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]