Document:

Exhibit 10.13

 

Execution Version

 

 

[***]
CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. ASTERISKS DENOTE SUCH OMISSIONS.

 

 

 

Royalty
Purchase Agreement

By
and Among

InSite Vision Incorporated

and 

SWK Funding LLC

and

Bess
Royalty, L.P.

Dated
as of April 2, 2013

 

    	 

    	 

    

	Table OF Contents
	 	 	 
	 	 	Page
	 	 	 
	 	 	 
	ARTICLE I
    Definitions; Interpretation	1
	 	 
	Section 1.1	Definitions	1
	Section 1.2	Certain Interpretations	6
	 	 	 
	ARTICLE II
    Purchase and Sale of Purchased Receivables	7
	 	 
	Section 2.1	Purchase and Sale of Purchased Receivables	7
	Section 2.2	No Purchase or Sale of Excluded Assets	7
	Section 2.3	No Obligations Transferred	7
	Section 2.4	Sale	8
	Section 2.5	Nonassignable Assets	8
	Section 2.6	Power of Attorney	9
	 	 	 
	ARTICLE III
    Closing	9
	 	 
	Section 3.1	Closing	9
	Section 3.2	Payment of Purchase Price	9
	Section 3.3	Seller’s Secretary Certificate	9
	Section 3.4	Bill of Sale and Assignment	9
	Section 3.5	Tax Forms	10
	Section 3.6	Bausch & Lomb Consent and Instruction
    Letter	10
	Section 3.7	Receipt	10
	 	 	 
	ARTICLE IV
    Seller’s Representations and Warranties	10
	 	 
	Section 4.1	Existence	10
	Section 4.2	Authorization	10
	Section 4.3	Enforceability	10
	Section 4.4	Absence of Conflicts	10
	Section 4.5	Consents	11
	Section 4.6	Litigation	11
	Section 4.7	Brokers Fees	11
	Section 4.8	Product Agreements	11
	Section 4.9	Title to Purchased Receivables	13
	Section 4.10    	Product Related IP.	13
	Section 4.11    	Development of Competitive Products	14
	Section 4.12	Compliance with Laws	14
	Section 4.13	UCC Representations and Warranties	14
	Section 4.14	Solvency	14
	Section 4.15	Disclosure	14
	 	 	 
	ARTICLE V
    Purchasers’ Representations and Warranties	15
	 	 
	Section 5.1	Existence	15
	Section 5.2	Authorization	15
	Section 5.3	Enforceability	15
	Section 5.4	Absence of Conflicts	15

    	 

    	 

    

	Section 5.5	Consents	15
	Section 5.6	Litigation	15
	Section 5.7	Brokers Fees	15
	 	 	 
	ARTICLE VI
    Covenants	16
	 	 
	Section 6.1	Performance of Product Agreements	16
	Section 6.2	Misdirected Payments; Offsets by Bausch
    & Lomb	16
	Section 6.3	Royalty Reports; Notices; Correspondence	17
	Section 6.4	Inspections and Audits of Bausch &
    Lomb	17
	Section 6.5	Amendment of Product Agreements	18
	Section 6.6	Enforcement of Product Agreements	18
	Section 6.7	Termination of Product Agreements	19
	Section 6.8	Approval of Assignments of Product Agreements	19
	Section 6.9	Bausch & Lomb Agreements	19
	Section 6.10	Public Announcements; Use of Names	19
	Section 6.11   	Taxes	20
	Section 6.12	Remittance of Previously Received Purchased
    Receivables; Further Actions	20
	Section 6.13	Intellectual Property Matters	20
	Section 6.14	Abandonment and Sale Notices	21
	Section 6.15	Additional Payment Conditions	21
	 	 	 
	ARTICLE VII
    Indemnification	21
	 	 
	Section 7.1	Obligation of Parties to Indemnify	21
	Section 7.2	Procedures Relating to Indemnification
    for Third Party Claims	22
	Section 7.3	Procedures Relating to Indemnification
    for Other Claims	23
	Section 7.4	Limitations on Indemnification	24
	Section 7.5	Survival of Representations and Warranties	24
	Section 7.6	Exclusive Remedy	24
	Section 7.7	Limitations on Damages	24
	Section 7.8	Termination	25
	 	 	 
	ARTICLE VIII
    MISCELLANEOUS	25
	 	 
	Section 8.1	Headings	25
	Section 8.2	Notices	25
	Section 8.3	Expenses	26
	Section 8.4	Assignment	26
	Section 8.5	Successors and Assigns	26
	Section 8.6	Amendment and Waiver	26
	Section 8.7	Entire Agreement	27
	Section 8.8	Independent Contractors	27
	Section 8.9	No Third Party Beneficiaries	27
	Section 8.10	Governing Law	27
	Section 8.11	Jurisdiction; Venue: Service Of Process	27
	Section 8.12	Severability	28
	Section 8.13	Counterparts	28

    	ii

    	 

    
List of Exhibits

A          Seller’s
Wire Transfer Instructions

B          Purchasers’
Wire Transfer Instructions

C          Schedule
of Exceptions to Seller’s Representations and Warranties

D          Product
Agreements

E          Form
of Press Release 

    	iii

    	 

    

Index
of Defined Terms

 

	2013 Royalty Year	1	 	Permitted Adverse Claim	3
	Additional Payment	7	 	Person	3
	Additional Payment Conditions	1	 	Post-Closing Incentive Consideration	3
	Adverse Claim	1	 	Post-Closing Incentive Period	3
	Affiliate	1	 	Pro Rata Portion	4
	Agreement	1	 	Proceeds	4
	Bausch & Lomb	1	 	Product	4
	Bausch & Lomb Agreements	2	 	Product Agreements	4
	Bausch & Lomb Consent and Instruction
    Letter	10	 	Product Related IP	4
	Bill of Sale	9	 	Purchase Agreement	1
	Business Day	2	 	Purchase Price	4
	Closing	9	 	Purchased Receivables	4
	Closing Date	9	 	Purchased Royalty Period	4
	Closing Payment	7	 	Purchaser	1
	Consent	2	 	Purchaser Indemnified Party	21
	Contract	2	 	Purchaser Material Adverse Effect	4
	Control	2	 	Purchasers	1
	Counterparties	2	 	Receivables	4
	Counterparty	2	 	Royalty Payment	4
	Defense Conditions	22	 	Royalty Reports	4
	Excess Annual Royalty Payments	2	 	Royalty Sharing Threshold Amount	4
	Excluded Assets	2	 	Royalty Sharing Threshold Date	4
	Final 2013 Royalty Report	2	 	Royalty Year	5
	Governmental Entity	2	 	Seller	1
	Indemnified Party	22	 	Seller Indemnified Party	21
	Indemnifying Party	22	 	Seller Material Adverse Effect	4
	Intellectual Property	3	 	Sharing Payment	7
	Judgment	3	 	SSP Agreements	5
	Knowledge of Seller	3	 	SSP Co., Ltd.	5
	Known to Seller	3	 	SWK Purchaser	1
	Law	3	 	Third Party Claim	22
	License Agreement	1	 	Threshold Amount	5
	Losses	21	 	Threshold Date	5
	Modification	18	 	Total Net Amount	5
	Net Sales	4	 	TPG Purchaser	1
	Nonassignable	8	 	Transaction Documents	5
	Outstanding Litigation	3	 	UCC	6

    	iv

    	 

    

This
Royalty Purchase Agreement dated as of April 2, 2013 (this “Agreement”), by and among InSite
Vision Incorporated, a Delaware corporation as Seller (“Seller”), and SWK
Funding LLC, a Delaware limited liability company (“SWK Purchaser”), and Bess
Royalty, L.P., a Delaware limited partnership (“Bess Purchaser”) (SWK Purchaser and Bess Purchaser each
individually a “Purchaser” and collectively, the “Purchasers”).

Introduction

Seller
is a party to that certain ISV-403 Asset Purchase Agreement, dated as of December 19, 2003 (as the same may be amended, modified
or supplemented hereafter, the “Purchase Agreement”), by and between Bausch & Lomb Incorporated, a New
York corporation (“Bausch & Lomb”) and Seller, and that certain License Agreement, dated as of December
19, 2003 (as the same may be amended, modified or supplemented hereafter, the “License Agreement”), between
Seller and Bausch & Lomb.

Seller
desires to sell, transfer, assign and convey to Purchasers, and Purchasers desire to purchase, acquire and accept from Seller,
all of Seller’s right, title and interest in and to the Purchased Receivables (as defined below), for the consideration
and on the terms and subject to the conditions set forth in this Agreement.

In
consideration of the representations, warranties, covenants and agreements set forth herein and for good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, Seller and Purchasers hereby agree as follows:

Article
I

Definitions; Interpretation

Section 1.1          Definitions.
For purposes of this Agreement, the following capitalized terms have the meanings specified below:

“2013
Royalty Year” means the Royalty Year ending in December 2013.

“Additional
Payment Conditions” means the achievement by Bausch & Lomb of (i) Net Sales for the 2013 Royalty Year of at least
$***, and (ii) Net Sales for the last two Royalty Quarters of the 2013 Royalty Year of at least $***.

“Adverse
Claim” means a lien, title defect, pledge, security interest, charge or encumbrance, or other right or claim in or on
any Person’s assets or properties in favor of any other Person.

“Affiliate”
means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls,
or is Controlled by, or is under common Control with, such Person.

“Bausch
& Lomb Agreements” means the Purchase Agreement, License Agreement and other related agreements by and between Seller
and Bausch & Lomb that are listed on Exhibit D.

    	 

    	 

    

“Business
Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions located in New York,
New York are permitted or required by applicable Law to remain closed.

“Consent”
means any consent, approval, license, permit, order, authorization, registration, filing or notice.

“Contract”
means any contract, lease, license, indenture, instrument or other agreement.

“Control”
and its derivatives mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities or other voting interests, by contract or otherwise.

“Counterparties”
and “Counterparty” means Bausch & Lomb and SSP Co., Ltd. or either of them.

“Excess
Annual Royalty Payments” means, following the Royalty Sharing Threshold Date, the excess, if any, of (x) the aggregate
Royalty Payments received by Purchasers during any Royalty Year over (y) $***; provided, however, that in
no event shall Seller be entitled to any portion of the Royalty Payments received by Purchasers until the Total Net Amount exceeds
the Royalty Sharing Threshold Amount in the aggregate. As an example, if Purchasers have received Royalty Payments in the aggregate
through the third Royalty Year equal to $***, and receives Royalty Payments equal to $*** in Royalty Year four, the
Excess Annual Royalty Payments for year four shall be $***.

“Excluded
Assets” means any and all other rights of Seller to payment, compensation or consideration under or in respect of the
Bausch & Lomb Agreements other than the Purchased Receivables.

“Final
2013 Royalty Report” means the first Royalty Report which, when combined with all prior Royalty Reports received by
Purchasers, includes the full amount of Net Sales by Bausch & Lomb and Post-Closing Incentive Consideration paid or payable
by Bausch & Lomb for each Royalty Quarter for the 2013 Royalty Year.

“Governmental
Entity” means any United States or foreign (i) federal, state, local, municipal or other government, (ii) governmental
or quasi-governmental entity of any nature (including any governmental agency, branch, department, official, or entity and any
court or other tribunal) or (iii) body exercising or entitled to exercise any administrative, executive, judicial, legislative,
police, regulatory, or taxing authority, or power of any nature, including any arbitral tribunal.

    	2

    	 

    

“Intellectual
Property” means, with respect to any Person, all intellectual property owned or licensed (as licensor or licensee) by
such Person and in which such Person has a pecuniary interest, including (i) all patents, patent applications, and inventions
and discoveries that may be patentable, (ii) all know-how, trade secrets, software, technical information, data, registrations,
applications for governmental approvals, inventions, processes, devices, improvements, formulations, discoveries, compositions,
ingredients, research, developments, best practices (including clinical pathways), formulae, protocols, standards, methods, techniques,
designs, quality control practices and information, research and test procedures and information, and safety, environmental and
health practices and information, (iii) all confidential or proprietary information, commercial information, management systems,
business processes and practices, trial results and files, procurement practices and information, supplier qualification and approval
practices and information, training materials, sales and marketing materials, advertising and promotional materials and (iv) all
rights in any jurisdiction to limit the use or disclosure of any of the foregoing, and rights to sue and recover damages or obtain
injunctive relief for infringement, dilution, misappropriation, violation or breach of any of the foregoing.

“Judgment”
means any judgment, order, ruling, injunction, assessment, award, writ or decree of any Governmental Entity or arbitrator.

“Knowledge
of Seller” means the knowledge of any executive officer or director. For purposes of this Agreement, any such individual
shall be deemed to have knowledge of a particular fact or other matter if such individual is actually aware of such fact or other
matter or would have discovered such fact in the normal course of his or her duties after due inquiry. “Known to Seller”
has the correlative meaning.

“Law”
means any law, statute, code, rule, regulation or ordinance of any Governmental Entity and all Judgments.

“Net
Sales” means “Net Sales” as defined in the Purchase Agreement.

“Outstanding
Litigation” means the litigation matter described in Exhibit C hereto.

“Permitted
Adverse Claim” means (i) any Adverse Claim in favor of Purchasers created pursuant to this Agreement or (ii) any Adverse
Claim as to which no enforcement collection, execution, levy or foreclosure proceeding shall have been commenced or threatened
that secures the payment of taxes, assessments and governmental charges or levies, if and to the extent the same are either (x)
not yet due and payable or (y) being contested in good faith and as to which adequate reserves have been provided, in any case
with respect to clause (ii) only to the extent such Adverse Claim could not reasonably be expected to have a Seller Material Adverse
Effect.

“Person”
means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, association, unincorporated
organization, Governmental Entity or other entity or organization.

“Post-Closing
Incentive Consideration” means “Post-Closing Incentive Consideration” as defined in the Purchase Agreement.

“Post-Closing
Incentive Period” means “Post-Closing Incentive Period” as defined in the Purchase Agreement.

    	3

    	 

    

“Proceeds”
means any amounts actually recovered by Seller from a Person as a result of any settlement or resolution of any actions, suits,
proceedings, claims or disputes related to the Receivables.

“Product”
means “Product” as defined in the Purchase Agreement.

“Product
Agreements” means the Bausch & Lomb Agreements and the SSP Agreements.

“Product
Related IP” means the Intellectual Property related to a Product that is owned or licensed (as licensor or licensee)
by Seller or either of the Counterparties.

“Pro
Rata Portion” means (i) ***% for the SWK Purchaser and (ii) ***% for the Bess Purchaser.

“Purchase
Price” shall mean the Closing Payment and the Additional Payment if payable pursuant to Section 2.1(b)(ii).

“Purchased
Receivables” means the Receivables, it being understood and agreed that once the Threshold Date has occurred,
Purchasers shall have no further ownership interest or Adverse Claim in or to the Receivables.

“Purchased
Royalty Period” means the period beginning on (and including) January 1, 2013 and ending on the Threshold Date.

“Purchaser
Material Adverse Effect” means any one or more of (i) a material adverse effect on the ability of a Purchaser to consummate
the transactions contemplated by this Agreement and perform its obligations under this Agreement or (ii) a material adverse effect
on the validity or enforceability of this Agreement or the rights of Seller hereunder.

“Receivables”
means all Royalty Payments attributable to Net Sales in respect of Products sold during the Purchased Royalty Period by or for
Bausch & Lomb, and any cost and expense reimbursement amounts payable by or on behalf of Bausch & Lomb to Seller or its
Affiliate under the Purchase Agreement.

“Royalty
Payment” means each payment by Bausch & Lomb of Post-Closing Incentive Consideration pursuant to Section 2.7 of
the Purchase Agreement in respect of Net Sales.

“Royalty
Reports” means the reports delivered by Bausch & Lomb pursuant to the Purchase Agreement in respect of Net Sales.

“Royalty
Sharing Threshold Amount” means an amount equal to the Purchase Price.

“Royalty
Sharing Threshold Date” means the date on which the Total Net Amount first exceeds the Royalty Sharing Threshold Amount.

    	4

    	 

    

“Royalty
Quarter” means each Bausch & Lomb fiscal quarter, currently based on the fifty-two or fifty-three week period ending
on the last Saturday in December, as determined by Bausch & Lomb’s Finance Department annually.

“Royalty
Year” means each Bausch & Lomb fiscal year, currently based on the fifty-two or fifty-three week period ending on
the last Saturday in December, as determined by Bausch & Lomb’s Finance Department annually.

“Seller
Material Adverse Effect” means any one or more of: (i) a material adverse effect on the ability of Seller to consummate
the transactions contemplated by this Agreement and perform its obligations under this Agreement or the Bausch & Lomb Agreements,
(ii) a material adverse effect on the validity or enforceability of this Agreement or the Bausch & Lomb Agreements or the
rights of Purchasers hereunder or (iii) a material adverse effect on the rights of Seller under the Bausch & Lomb Agreements.

“SSP
Agreements” means the Product Development and Cross-License, Assignment, Novation, Amendment and Consent Agreement dated
December 19, 2003, by and among Bausch & Lomb, Seller and SSP Co., Ltd., and any other agreement entered into in connection
therewith that is listed on Exhibit D.

“SSP
Co., Ltd.” means SSP Co., Ltd., a Japanese corporation.

“Subsidiary”
means, with respect to any Person, any other Person of which more than 50% of the outstanding Voting Securities of such other
Person is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more other Subsidiaries
of such Person or by one or more other Subsidiaries of such Person.

“Threshold
Amount” means an amount equal to the Purchase Price multiplied by 2.75.

“Threshold
Date” means the date on which the Total Net Amount first exceeds the Threshold Amount.

“Total
Net Amount” means, as of any date, an amount equal to ***.

“Transaction
Documents” means this Agreement, the Bill of Sale and all of the other agreements, documents, letters and certificates
executed or delivered in connection herewith.

    	5

    	 

    

“UCC”
means the Uniform Commercial Code as in effect in the State of Texas or Delaware, as applicable.

Capitalized
terms used in this Agreement and not otherwise defined herein shall have the respective meanings ascribed to them in the applicable
Bausch & Lomb Agreements. In the event a capitalized term used herein is defined in both this Agreement and the Bausch &
Lomb Agreements, the meaning given to such term in this Agreement shall control.

Section 1.2         
Certain Interpretations. Except where expressly stated otherwise in this Agreement, the following
rules of interpretation apply to this Agreement:

(a)          “include,”
“includes” and “including” shall be deemed to be followed by the words “without limitation”;

(b)          “hereof,”
“hereto,” “herein” and “hereunder” and words of similar import when used in this Agreement
refer to this Agreement as a whole and not to any particular provision of this Agreement;

(c)          references
to a Contract mean such Contract as amended, modified or supplemented and including any annexes, exhibits and schedules attached
thereto, in each case to the extent not prohibited by such Contract or this Agreement;

(d)          references
to a Person are also to its permitted successors and assigns;

(e)          references
to an “Article,” “Section,” “Exhibit” or “Schedule” refer to an Article or Section
of, or an Exhibit or Schedule to, this Agreement;

(f)           references
to “$” or otherwise to dollar amounts refer to the lawful currency of the United States;

(g)          references
to a Law include any amendment or modification to such Law and any rules and regulations issued thereunder, whether such amendment
or modification is made, or issuance of such rules and regulations occurs, before or after the date of this Agreement; and

(h)          references
to this “Agreement” shall include a reference to all Schedules and Exhibits attached to this Agreement (including
the Schedule of Exceptions attached hereto as Exhibit C), all of which constitute a part of this Agreement and are incorporated
herein for all purposes.

    	6

    	 

    

Article
II

Purchase and Sale of Purchased Receivables

Section
2.1           Purchase and Sale of Purchased Receivables.

(a)          Purchase
and Sale. Upon the terms and subject to the conditions of this Agreement, on the Closing Date, Seller shall sell, transfer,
assign and convey to Purchasers, and each Purchaser shall purchase, acquire and accept from Seller, free and clear of all Adverse
Claims (other than Permitted Adverse Claims or Adverse Claims arising through Purchaser), such Purchaser’s Pro Rata Portion
of Seller’s right, title and interest in and to the Purchased Receivables.

(b)          Purchase
Price. The Purchase Price for the Purchased Receivables shall be payable by Purchasers to Seller as follows:

(i)          Closing
Payment. A payment of $15,000,000 (the “Closing Payment”) for the Purchased Receivables shall be payable
by Purchasers to Seller on the Closing Date. The SWK Purchaser shall pay $*** of the Closing Payment and the Bess Purchaser
shall pay $*** of the Closing Payment.

(ii)          Additional
Payment. An additional payment of $1,000,000 (the “Additional Payment”) for the Purchased Receivables shall
be payable to Seller after receipt by the Purchasers of the Final 2013 Royalty Report in the event the Additional Payment Conditions
are met. If the Additional Payment Conditions are not met, no Additional Payment shall be due or payable. The Additional Payment,
if due, shall be paid by the Bess Purchaser. If the Additional Payment Conditions have been met, the Bess Purchaser shall pay
the Additional Payment to Seller within 20 days of its receipt of the Final 2013 Royalty Report.

(c)          Excess
Annual Royalty Payments. After the Royalty Sharing Threshold Date, Purchasers shall remit to Seller an amount equal to twenty-five
percent (25%) of any Excess Annual Royalty Payments (each, a “Sharing Payment”). Any such Sharing Payments
shall be paid to Seller by wire transfer of immediately available funds to the account set forth in Exhibit A within five
(5) Business Days of actual receipt of any Excess Annual Royalty Payments by Purchasers.

Section
2.2           No Purchase or Sale of Excluded Assets. Notwithstanding
anything to the contrary contained in this Agreement, Seller shall retain all of its right, title and interest in and to, and
there shall be excluded from the sale, transfer, assignment and conveyance to Purchasers under this Agreement, all Excluded Assets.

Section 2.3           No
Obligations Transferred. Notwithstanding anything to the contrary contained in this Agreement, (a) the sale, transfer,
assignment and conveyance to Purchasers of the Purchased Receivables pursuant to this Agreement shall not in any way subject Purchasers
to, or transfer, affect or modify, any obligation or liability of Seller under any Product Agreement and (b) Purchasers expressly
do not assume or agree to become responsible for any obligation or liability of Seller under any Product Agreement or otherwise.

    	7

    	 

    

Section 2.4            Sale.
It is the intention of the parties hereto that the sale, transfer, assignment and conveyance contemplated by this Agreement shall
constitute a sale of the Purchased Receivables from Seller to Purchasers and not a financing transaction, borrowing or loan; and
accordingly, Seller and Purchasers will treat the sale, transfer, assignment and conveyance of the Purchased Receivables as sales
of “accounts” in accordance with the UCC for accounting purposes, and Seller hereby authorizes Purchasers or their
designee, from and after the Closing Date, to execute, record and file such financing statements (and continuation statements
with respect to such financing statements when applicable) naming Seller as the seller/debtor and each Purchaser as the purchaser/secured
party of its Pro Rata Portion of the Purchased Receivables as may be necessary to perfect such sale. If, notwithstanding the intent
of the Parties hereto in this regard, the sale, transfer, assignment and conveyance contemplated hereby is held not to be a sale,
this Agreement shall constitute a security agreement and Seller does hereby grant to each Purchaser a security interest in and
to each Purchaser’s Pro Rata Portion of the Purchased Receivables, whether now owned or hereafter acquired or arising, and
wherever located, and any proceeds (as such term is defined in the UCC), to secure payment to such Purchasers of amounts equal
to such Purchaser’s Pro Rata Percentage of the Purchased Receivables as they are paid under the Purchase Agreement, and
Seller does hereby authorize each Purchaser to file such financing statements (and continuation statements with respect to such
financing statements when applicable) as may be necessary to perfect its security interest. Seller waives, to the maximum extent
permitted by law, any right to contest or otherwise assert that this Agreement is other than a true, complete, absolute and irrevocable
sale by Seller to Purchasers of the Purchased Receivables under applicable Law, which waiver shall be enforceable, to the maximum
extent permitted by law, against Seller in any bankruptcy or insolvency proceeding relating to Seller. The sale, transfer, assignment
and conveyance of the Purchased Receivables shall be reflected on Seller’s financial statements and other records as a sale
of assets to Purchasers. Seller agrees that in any consolidated financial statements of Seller it shall indicate that the Purchased
Receivables are the assets of Purchasers.

Section
2.5           Nonassignable Assets. Nothing in this Agreement
nor the consummation of the transactions contemplated hereby shall be construed as an attempt or agreement to assign any asset
included in the Purchased Receivables, including any Contract, approval, authorization or other right, which by its terms or by
Law is nonassignable without the consent of a third party or is cancelable by a third party in the event of an assignment (“Nonassignable
Assets”) unless and until such consent shall have been obtained or to the extent any such assignment restriction is
removed or expires by its term. Seller shall use commercially reasonable efforts to cooperate with Purchasers at their request
in endeavoring to obtain such consents promptly. To the extent permitted by applicable Law, in the event consents to the assignment
thereof cannot be obtained, such Nonassignable Assets shall be held, as of and from the Closing Date until the date this Agreement
terminates in accordance with Section 7.8, by Seller in trust for Purchasers and the covenants and obligations thereunder shall
be performed by Purchasers in Seller’s name and all benefits and obligations existing thereunder shall be for Purchasers’
accounts. Seller shall take such actions as Purchasers may reasonably request so as to provide Purchasers with the benefits of
the Nonassignable Assets and to effect collection of money or other consideration that becomes due and payable under the Nonassignable
Assets, and Seller shall promptly pay over to Purchasers all money or other consideration received by it in respect of all Nonassignable
Assets.

    	8

    	 

    

Section 2.6            Power
of Attorney. As of and from the Closing Date through the date this Agreement terminates in accordance with Section 7.8, Seller
on behalf of itself and its Affiliates hereby irrevocably constitutes and appoints each Purchaser, to the extent permitted by
applicable Law and the terms of the Nonassignable Assets, with full power of substitution, as Seller’s true and lawful attorney-in-fact
with full irrevocable power and authority in the place and stead of Seller and in the name of Seller or in its own name, from
time to time in the Purchasers’ discretion, to take any and all appropriate action and to execute and deliver any and all
documents and instruments which may be necessary or desirable to accomplish the purposes of this Agreement and the Bill of Sale
and, without limiting the generality of the foregoing, to the extent that the Seller has the right under applicable Law and any
applicable Contract, Seller hereby grants to each Purchaser the power and right, on behalf of Seller, to the extent Seller has
the legal power or right to do such act for its own benefit without notice to or assent by Seller, and at any time, to do the
following: (a) pay or discharge any taxes, liens, security interests, or other encumbrances or other Adverse Claims levied
or placed on or threatened against the Purchased Receivables (other than Adverse Claims arising through Purchaser); (b) communicate
in its own name with any party to any Contract with regard to the assignment of the right, title and interest of Seller in and
under the Purchased Receivables and other matters relating thereto; (c) execute, in connection with the transfer of title,
any endorsements, assignments or other instruments of conveyance or transfer with respect to the Purchased Receivables, (d) to
perform all the obligations and receive all the benefits of Seller under the Nonassignable Assets, and (e) defend, exercise
or enforce Seller’s rights under the Product Agreements in any manner reasonably necessary or advisable to protect the Purchasers’
rights under this Agreement and appoint Purchasers their attorneys-in-fact to act in their name on their behalf. The power of
attorney granted hereby is coupled with an interest, and may not be revoked or canceled by Seller without Purchasers’ written
consent other than upon termination of this Agreement in accordance with Section 7.8. If reasonably requested by the Purchasers,
Seller shall execute a stand-alone power of attorney with consistent with the terms of this Section 2.6 to enable to the Purchasers
to present such power of attorney to other parties without disclosing this Agreement.

Article
III

Closing

Section 3.1            Closing.
The closing of the purchase and sale of the Purchased Receivables (the “Closing”) shall take place at the offices
of Patton Boggs LLP, 2000 McKinney, Suite 1700, Dallas, Texas 75201, at 10:00 a.m. Dallas time on the date hereof, or at such
other place, time and date as the parties hereto may mutually agree. The date on which the Closing occurs is referred to in this
Agreement as the “Closing Date.”

Section
3.2            Payment of
Purchase Price. On the Closing Date, each Purchaser shall deliver to Seller payment of its respective portion of the
Closing Payment in accordance with Section 2.1(b)(i) by wire transfer of immediately available funds to the account set forth
in Exhibit A.

Section 3.3            Seller’s
Secretary Certificate. On the Closing Date, Seller shall deliver to Purchasers a certificate of the Secretary of Seller, dated
the Closing Date, certifying as to (i) the incumbency of the officer of Seller executing this Agreement and (ii) the attached
copies of Seller’s organizational documents and resolutions adopted by Seller’s Board of Directors authorizing the
entry into this Agreement by Seller and the consummation by Seller of the transactions contemplated hereby.

Section 3.4            Bill
of Sale and Assignment. On the Closing Date, Seller and Purchasers shall each deliver to the other party hereto a duly executed
bill of sale and assignment in form and substance acceptable to Purchasers in their sole discretion and evidencing the sale and
assignment to Purchasers of the Purchased Receivables (the “Bill of Sale”).

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Section 3.5            Tax
Forms. Prior to the Closing Date, each Purchaser shall deliver to Seller a valid and properly executed IRS Form W-9, certifying
that such Purchaser is exempt from United States federal withholding tax with respect to all payments with respect to the Purchased
Receivables.

Section 3.6            Bausch
& Lomb Consent and Instruction Letter. On or before the Closing Date, Seller shall deliver to Purchasers a duly executed
consent and instruction letter in form and substance reasonably acceptable to Purchasers (the “Bausch & Lomb Consent
and Instruction Letter”).

Section 3.7            Receipt.
On the Closing Date, Seller shall deliver to Purchasers a duly executed receipt for payment of the Closing Payment.

Article
IV

Seller’s Representations and Warranties

Except
as set forth on Exhibit C, Seller hereby represents and warrants to Purchasers as of the date hereof:

Section 4.1            Existence.
Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Seller
has all power and authority, and all Consents of all Governmental Entities, required to own its property and conduct its business
as now conducted and to exercise its rights and to perform its obligations under this Agreement and the Product Agreements except
where the failure to have such Consents could not reasonably be expected to have a Seller Material Adverse Effect. Seller is duly
qualified to transact business and is in good standing in every jurisdiction in which such qualification or good standing is required
by applicable Law except where the failure to be so qualified or in good standing could not reasonably be expected to have a Seller
Material Adverse Effect.

Section 4.2            Authorization.
Seller has the corporate power to enter into the Transaction Documents and to consummate the transactions contemplated thereby.
The entry into the Transaction Documents, and the consummation of the transactions contemplated thereby, have been duly authorized
by Seller. Each of the Transaction Documents to which Seller is a party has been duly executed and delivered by Seller.

Section 4.3            Enforceability.
Each of the Transaction Documents to which Seller is a party constitutes a valid, binding and enforceable obligation of Seller,
except as may be limited by general principles of equity (regardless of whether considered in a proceeding at law or in equity)
and by applicable bankruptcy, insolvency, and other laws of general application relating to or affecting creditors’ rights
generally.

Section 4.4            Absence
of Conflicts. The execution, delivery and performance by Seller of the Transaction Documents to which it is a party and the
consummation of the transactions contemplated therein do not and will not (a) contravene any provision of Seller’s certificate
of incorporation or by-laws, (b) constitute a breach of, or result in a default under or cause the acceleration of any payments
pursuant to, any Contract to which Seller or any of its Subsidiaries is a party or by which any of their respective assets or
properties are bound, (c) violate any provision of Law applicable to Seller or any of its Subsidiaries or (d) result in or
require the creation or imposition of any Adverse Claim on any assets of Seller or its Subsidiaries (except as created by this
Agreement), except in the cases of clause (c) to the extent any such breach, default or violation could not reasonably be expected
to have a Seller Material Adverse Effect.

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Section 4.5           Consents.
Other than the Bausch & Lomb Consent and Instruction Letter and the UCC financing statements required to be filed under this
Agreement, the execution and delivery by Seller of the Transaction Documents to which Seller is party, the performance by Seller
of its obligations hereunder and thereunder and the consummation of any of the transactions contemplated hereunder and thereunder
(including the sale, assignment, transfer and conveyance of the Purchased Receivables to Purchasers and the granting of the security
interest therein) do not require any Consent from, notice to, action or registration by or filing with any Governmental Entity
or any other Person.

Section 4.6           Litigation.
Except as disclosed on Exhibit C, there is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons,
subpoena, investigation or other proceeding (whether civil, criminal, administrative, regulatory, investigative or informal) pending
or, to the Knowledge of Seller, threatened in respect of the Purchased Receivables, the Products or otherwise, at law or in equity,
or (b) inquiry or investigation (whether civil, criminal, administrative, regulatory, investigative or informal) by or before
a Governmental Entity pending or, to the Knowledge of Seller, threatened against Seller or any of its Subsidiaries in respect
of the Products, the Purchased Receivables or otherwise, that, in either case, (i) if adversely determined, could reasonably be
expected to result in a Seller Material Adverse Effect, or (ii) challenges or seeks to prevent or delay the consummation
of any of the transactions contemplated by any of the Transaction Documents to which Seller is party. To the Knowledge of Seller,
no event has occurred or circumstance exists that may give rise to or serve as a basis for the commencement of any such action,
suit, arbitration, claim, investigation, proceeding or inquiry.

Section 4.7           Brokers
Fees. There is no investment banker, broker, finder, financial advisor or other intermediary who has been retained by or is
authorized to act on behalf of Seller who is entitled to any fee or commission in connection with the transactions contemplated
by this Agreement.

Section
4.8           Product Agreements.

(a)          Product
Agreements. Attached hereto as Exhibit F is a true, correct and complete copy of each of the Product Agreements, along
with all exhibits, schedules and other attachments thereto.

(b)          Validity
and Enforceability of Product Agreements. Each of the Product Agreements is a valid, binding and enforceable obligation of
Seller, and to the Knowledge of Seller, of the Counterparties, as applicable, except as may be limited by general principles of
equity (regardless of whether considered in a proceeding at law or in equity) and by applicable bankruptcy, insolvency, and other
laws of general application relating to or affecting creditors’ rights generally. Seller has not received any written notice
from either Counterparty challenging the validity or enforceability of the Product Agreements or any obligation of such parties
to pay the Royalty Payments or perform their respective obligations thereunder, nor, to the Knowledge of Seller, has either Counterparty
delivered any such written notice to the other Counterparty.

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(c)          No
Waivers, Releases. Seller has not granted any material waiver under the Product Agreements and has not released either Counterparty
in whole or in part, from any of its material obligations under the Product Agreements, except, in each case, to the extent set
forth in the Product Agreements. To the Knowledge of Seller, neither Counterparty has granted any material waiver under the Product
Agreements to the other Counterparty, nor has either Counterparty released the other Counterparty in whole or in part, from any
of its material obligations under the Product Agreements.

(d)          No
Termination, Force Majeure, etc. Seller has not (i) given either Counterparty any notice of termination of any of the applicable
Product Agreements or of Force Majeure thereunder or (ii) received from either Counterparty any written notice of termination
of any of the Product Agreements or of Force Majeure thereunder, nor, to the Knowledge of Seller, has either Counterparty given
or received any such notice. To the Knowledge of Seller, no event has occurred and is continuing that would give any party to
the Product Agreements a right to terminate any of the Product Agreements. Seller has not received any notice from either Counterparty
expressing any intention or desire to terminate any of the Product Agreements, nor, to the Knowledge of Seller, has either Counterparty
given or received any such notice. Seller has not received any Abandonment Notices under Section 2.7.10(b) of the Purchase Agreement.

(e)          No
Breaches. Seller has not breached any provision of the Product Agreements in any material respect, and, to the Knowledge of
Seller, neither Counterparty has breached any provision of the applicable Product Agreements in any material respect.

(f)          Royalty
Reports. Seller has made available to Purchasers copies of the Royalty Reports covering the period from (and including) December
2009 to (and including) January 2013 that, in each case, have been delivered by Bausch & Lomb to, and received by, Seller
prior to the date hereof. The Royalty Payments from Bausch & Lomb began in December 2009 and were initially paid quarterly.
Beginning in January 2010, Bausch & Lomb began making the Royalty Payments monthly.

(g)          Payments
Made. To the Knowledge of Seller, Seller has received from Bausch & Lomb the full amount of the payments referred to in
Section 2.7 of the Purchase Agreement. Seller has received all amounts specified as “Total Royalty” in the Royalty
Reports referred to in ‎Section 4.8(f). Except as set forth on Exhibit C, none of the Royalty Payments listed in the Royalty
Reports were received from Bausch & Lomb more than ten (10) calendar days after the due date therefor.

(h)          No
Royalty Deductions. The Royalty Payments have not been, and to the Knowledge of Seller are not, as of the date hereof, subject
to any deductions or offsets.

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(i)           Sublicenses.
Seller has not received any written notice from Bausch & Lomb of, and, to the Knowledge of Seller, Bausch & Lomb has not
granted, any sublicense of Bausch & Lomb’s rights under the License Agreement.

(j)           No
Assignments. Seller has not consented to any assignment by either Counterparty of, and, to the Knowledge of Seller, neither
Counterparty has assigned any of, the Product Agreements or any part thereof. Except as contemplated by this Agreement, Seller
has not assigned, in whole or in part, and has not granted any liens upon or security interests with respect to, the Product Agreements
or the Receivables.

(k)          Audits.
Seller has not initiated, pursuant to Section 2.7.7 of the Purchase Agreement, any audit or examination of the books and records
of Bausch & Lomb by an independent auditor in order to verify the Royalty Reports.

(l)           Receivables.
Except as set forth on Exhibit C, to the Knowledge of Seller, no event has occurred or fact exists that is likely to lead
to a material reduction of the amount or frequency of the Royalty Payments to be received from Bausch & Lomb.

(m)         No
Other Agreements. Other than the Product Agreements, there are no other Contracts between Seller and the Counterparties related
to the Products.

Section
4.9           Title to Purchased Receivables. Seller is the exclusive
owner of the entire right, title (legal and equitable) and interest in and to the Purchased Receivables and has good, valid and
indefeasible title thereto, free and clear of all Adverse Claims (other than Permitted Adverse Claims). The Purchased Receivables
sold, assigned, transferred and conveyed to Purchasers on the Closing Date have not been pledged, sold, contributed, assigned,
transferred or conveyed by Seller to any other Person. Seller has full right to sell, assign, transfer and convey the Purchased
Receivables (and grant a security interest therein) to Purchasers. Upon the sale, assignment, transfer and conveyance by Seller
of the Purchased Receivables to Purchasers, Purchasers shall acquire good, valid and indefeasible title to the Purchased Receivables
free and clear of all Adverse Claims arising through the Seller, and shall be the exclusive owners of the Purchased Receivables.

Section
4.10         Product Related IP.

(a)          Seller
has not received any written notice of, and, to the Knowledge of Seller, there are not, any pending or threatened litigations,
interferences, reexaminations, oppositions or like proceedings involving any Product Related IP.

(b)          To
the Knowledge of Seller, all of the Product Related IP is valid and enforceable.

(c)          Seller
has not, and, to the Knowledge of Seller, neither Counterparty has, received any written notice of any claim by any Person challenging
the ownership of the rights of Seller or the Counterparties in and to, or the validity or enforceability of, the Product Related
IP, or asserting that the manufacture, sale, offer for sale or use of the Product infringes such Person’s patents or other
Intellectual Property rights.

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(d)           To
the Knowledge of Seller, (i) no third party Intellectual Property rights have been, or are or will be infringed by the manufacture,
sale, offer for sale or use of the Products, and (ii) no Person is infringing any of the Product Related IP.

Section 4.11          Development
of Competitive Products. None of Seller or any of its Subsidiaries is involved in the development of any products reasonably
likely to lead to a reduction or termination of Post-Closing Incentive Consideration payments under the Product Agreements, nor,
to the Knowledge of Seller, is any Counterparty.

Section 4.12          Compliance
with Laws. None of Seller or any of its Subsidiaries (a) has violated or is in violation of, or, to the Knowledge of Seller,
is under investigation with respect to or has been threatened to be charged with or been given notice of any violation of, any
applicable Law or any Judgment, or (b) is subject to any Judgment except, in each case, to the extent any such violation,
investigation, threat or Judgment could not reasonably be expected to have a Seller Material Adverse Effect. Each of Seller and
its Subsidiaries is in compliance with the requirements of all Laws except to the extent any such failure to be in compliance
could not reasonably be expected to have a Seller Material Adverse Effect.

Section 4.13          UCC
Representations and Warranties. Seller’s exact legal name is, and since its formation has been, “InSite Vision
Incorporated.” Seller’s location, for purposes of Section 9-307 of the UCC is, and since its formation has been, Delaware.

Section 4.14          Solvency.
Upon consummation of the transactions contemplated hereby and the application of the Closing Payment received by Seller on the
Closing Date, (i) the present fair saleable value of Seller’s assets is not less than the amount that will be required to
pay its probable liabilities on its existing debts and other obligations, including contingent liabilities, as they become absolute
and matured, (ii) Seller will not have unreasonably small capital with which to engage in its business, and (iii) Seller has not
incurred, and does not have present plans or intentions to incur, debts or other liabilities beyond its ability to pay such debts
or other liabilities as they become absolute and matured. The amount of contingent liabilities at any time shall be computed as
the amount that, in light of all the facts and circumstances existing at such time, would reasonably be expected to become an
actual or matured liability.

Section 4.15          Disclosure.
All information heretofore furnished by Seller or any of its Affiliates to Purchasers for purposes of or in connection with this
Agreement, any of the other Transaction Documents or any transaction contemplated hereby or thereby is, and all such information
hereafter furnished by Seller to Purchasers will be, when taken as a whole, true and accurate in all material respects on the
date such information is furnished and does not and will not, taken as a whole, contain any material misstatement of fact or omit
to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they were
made, not misleading.

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Article
V

Purchasers’ Representations and Warranties

Each
Purchaser hereby severally, and not jointly, represents and warrants to Seller that as of the date hereof:

Section
5.1           Existence. Such Purchaser is duly organized,
validly existing and in good standing under the laws of its state of formation. Such Purchaser has all power and authority, and
all Consents of all Governmental Entities, required to own its property and conduct its business as now conducted and to exercise
its rights and to perform its obligations under this Agreement except where the failure to have such Consents could not reasonably
be expected to have a Purchaser Material Adverse Effect. Such Purchaser is duly qualified to transact business and is in good
standing in every jurisdiction in which such qualification or good standing is required by applicable Law except where the failure
to be so qualified or in good standing could not reasonably be expected to have a Purchaser Material Adverse Effect.

Section 5.2          Authorization.
Such Purchaser has the requisite power to enter into this Agreement and to consummate the transactions contemplated hereby. The
entry into the Transaction Documents, and the consummation of the transactions contemplated thereby, have been duly authorized
by such Purchaser. Each of the Transaction Documents to which such Purchaser is a party has been duly executed and delivered by
such Purchaser.

Section 5.3           Enforceability.
Each of the Transaction Documents to which such Purchaser is a party constitutes a valid, binding and enforceable obligation of
such Purchaser, except as may be limited by general principles of equity (regardless of whether considered in a proceeding at
law or in equity) and by applicable bankruptcy, insolvency, and other laws of general application relating to or affecting creditors’
rights generally.

Section 5.4           Absence
of Conflicts. The execution, delivery and performance of the Transaction Documents by such Purchaser and the consummation
of the transactions contemplated therein do not and will not (a) contravene any provision of such Purchaser’s certificate
of formation, by-laws, or similar formation documents, (b) constitute a breach by such Purchaser of, or result in a default under
or cause the acceleration of any payments pursuant to any Contract to which such Purchaser is a party or by which any of its assets
are bound or (c) violate any provision of Law applicable to such Purchaser, except in the case of clause (c) to the extent
any such breach, default or violation could not reasonably be expected to have a Purchaser Material Adverse Effect.

Section 5.5            Consents.
Other than the UCC financing statements required to be filed under this Agreement, the execution and delivery by such Purchaser
of the Transaction Documents to which such Purchaser is party, the performance by such Purchaser of its obligations hereunder
and thereunder and the consummation of any of the transactions contemplated hereunder and thereunder do not require any Consent
from, notice to, action or registration by or filing with any Governmental Entity or any other Person.

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Section 5.6           Litigation.
There is no (a) action, suit, arbitration proceeding, claim, demand, citation, summons, subpoena, investigation or other
proceeding (whether civil, criminal, administrative, regulatory, investigative or informal) pending or, to the knowledge of such
Purchaser, threatened at law or in equity, or (b) inquiry or investigation (whether civil, criminal, administrative, regulatory,
investigative or informal) by or before a Governmental Entity pending or, to the knowledge of such Purchaser, threatened against
such Purchaser, that, in either case, (i) if adversely determined, could reasonably be expected to result in a Purchaser Material
Adverse Effect, or (ii) challenges or seeks to prevent or delay the consummation of any of the transactions contemplated by any
of the Transaction Documents to which such Purchaser is party. To the knowledge of such Purchaser, no event has occurred or circumstance
exists that may give rise to or serve as a basis for the commencement of any such action, suit, arbitration, claim, investigation,
proceeding or inquiry.

Section 5.7           Brokers
Fees. There is no investment banker, broker, finder, financial advisor or other intermediary who has been retained by or is
authorized to act on behalf of such Purchaser who is entitled to any fee or commission in connection with the transactions contemplated
by this Agreement.

Article
VI

Covenants

Section 6.1            Performance
of Product Agreements. Seller agrees that it shall perform all of its obligations under the Product Agreements in all material
respects relevant to the interests of Purchasers.

Section
6.2            Misdirected Payments; Offsets by Bausch & Lomb.

(a)          Payments
to Purchasers. If Seller or its Affiliate shall, notwithstanding the provisions of the Bausch & Lomb Consent and Instruction
Letter, receive from, or on behalf of, Bausch & Lomb any Purchased Receivables, Seller shall promptly, and in any event no
later than five (5) Business Days, following the receipt by Seller or its Affiliate of such Purchased Receivables, remit to each
Purchaser its Pro Rata Portion of the Purchased Receivables.

(b)          Payments
to Seller. If either Purchaser shall receive (i) any Royalty Payment that does not consist entirely of Purchased Receivables
or (ii) any Excluded Asset, such Purchaser shall promptly, and in any event no later than five (5) Business Days, following the
receipt of such Royalty Payment or Excluded Asset, remit to Seller (i) the portion, if any, of such Royalty Payment that does
not constitute Purchased Receivables or (ii) such Excluded Asset, as the case may be.

(c)          Offsets
by Bausch & Lomb. If Bausch & Lomb sets off against the Purchased Receivables any amount owing from Seller to Bausch
& Lomb in respect of any right of Bausch & Lomb against Seller arising from or in connection with any matter other than
the Purchased Receivables, then Seller shall promptly, and in any event no later than twenty (20) Business Days, following the
date on which Seller becomes aware of such set-off, pay to each Purchaser a sum equal to its Pro Rata Portion of such set-off
amount. After Seller makes the payment referred to in the first sentence of this Section 6.2(c), Seller shall be entitled to,
and Purchasers shall not be entitled to, any amounts recovered from Bausch & Lomb in respect of such set-off.

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(d)          Remittances.
All remittances pursuant to this ‎Section 6.2 shall be made (i) without set-off or deduction of any kind (except as required
by applicable Law) and (ii) by wire transfer of immediately available funds to the account set forth in Exhibit A
(if the payee is Seller) or Exhibit B (if the payees are Purchasers) or to such other account as the relevant payee(s)
may designate in writing (such designation to be made at least five (5) Business Days prior to any such payment).

(e)          Payments
Held In Trust. Each party hereto agrees that it shall hold any amounts received by it to which the other party hereto is entitled
under Section 6.2(a) or Section 6.2(b) in trust for the sole benefit of the other party and agrees that it shall have no
right, title or interest whatsoever in such amounts.

Section
6.3           Royalty Reports; Notices; Correspondence.

(a)          Royalty
Reports. Promptly, and in any event no later than five (5) Business Days, following the receipt by Seller of a written notice
from Purchasers certifying that Bausch & Lomb has not furnished Purchasers with a Royalty Report delivered in respect of the
Purchase Agreement prior to the date of such written notice from Purchasers (and covering a period that falls within the Purchased
Royalty Period), Seller shall furnish a copy of such Royalty Report (if Seller shall have received such Royalty Report) to Purchasers.

(b)          Notices;
Correspondence. Promptly, and in any event no later than five (5) Business Days, following the receipt by Seller of any material
written notice or material written correspondence relating to, or involving, the Purchased Receivables pursuant to the Bausch
& Lomb Agreements, Seller shall furnish a copy of such notice or correspondence to Purchasers. Seller shall not send any material
written notice or correspondence to Bausch & Lomb relating to, or involving, the Purchased Receivables, in each case, without
the prior written consent of Purchasers (such consent not to be unreasonably withheld or delayed), unless the sending of such
notice or correspondence could not reasonably be expected to adversely affect in any material respect the value of the Purchased
Receivables, and Seller shall promptly provide to Purchasers a copy of any such notice or correspondence sent by Seller to Bausch
& Lomb.

Section
6.4           Inspections and Audits of Bausch & Lomb.

(a)          Consultation.
Purchasers shall control, but Seller and Purchasers shall consult and cooperate with each other regarding, the timing, manner
and conduct of any examination of Bausch & Lomb’s books and records with respect to Net Sales pursuant to Section 2.7.7
of the Purchase Agreement.

(b)          Examinations
and Audits. If requested by Purchasers, Seller shall, (i) cause an examination to be made of Bausch & Lomb’s
books and records with respect to Net Sales used to prepare the Royalty Reports with respect to sales of Product pursuant to Section 2.7.7
of the Purchase Agreement; provided, however, that Purchasers shall not be entitled to request such an examination more
frequently than once every calendar year. With respect to any such examination, Purchasers shall select such independent auditor
for such purpose (as long as such independent auditor is reasonably acceptable to Bausch & Lomb). All of the expenses of any
such examination (including the fees and expenses of any independent auditor) that would otherwise be borne by Seller pursuant
to the Bausch & Lomb Agreements shall instead be borne (as such expenses are incurred) by Purchasers, provided that any reimbursement
by Bausch & Lomb of the audit expenses shall belong to Purchasers.

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Section 6.5          Amendment
of Product Agreements. Seller shall provide Purchasers a copy of any proposed amendment, supplement, modification or waiver
(a “Modification”) of any provision of the Product Agreements as soon as practicable and in any event not less
than ten (10) Business Days prior to the date Seller proposes to execute such Modification. Seller shall not, without the prior
written consent of Purchasers, execute or agree to execute any proposed Modification if such Modification could reasonably be
expected to adversely affect in a material respect the Purchased Receivables or the value thereof (it being understood and agreed
that any proposed Modification to the provisions of the Bausch & Lomb Agreements governing the amount or calculation of the
Receivables or the procedures for payment of the Receivables shall be deemed, for purposes of this ‎Section 6.5, to have such
an effect). Promptly, and in any event within five (5) Business Days, following receipt by Seller of a fully executed Modification
of the Product Agreements, Seller shall furnish a copy of such Modification to Purchasers.

Section
6.6           Enforcement of Product Agreements.

(a)          Notice
of Counterparty Breaches. Promptly, and in any event within five (5) Business Days, following a breach of any of the Product
Agreements by either Counterparty becoming Known to Seller that, in Seller’s good faith judgment, could reasonably be expected
to adversely affect in any material respect the Purchased Receivables or the value thereof, Seller shall provide notice of such
breach to Purchasers. In addition, Seller shall provide to Purchasers a copy of any written notice of breach of the Product Agreements
delivered or received by Seller as soon as practicable and in any event no later than five (5) Business Days following such delivery
or receipt.

(b)          Enforcement
of Product Agreements. Seller and Purchasers shall consult and cooperate with each other, regarding any breach referred to
in Section 6.6(a), but Purchasers shall control the timing, manner and conduct of any enforcement of either Counterparty’s
obligations under the Product Agreements relating thereto. If requested by Purchasers within twenty (20) Business Days after receipt
of notice of such breach pursuant to ‎Section 6.6(a), Seller shall proceed to enforce compliance by the Counterparty with
the relevant provisions of the Product Agreements and to exercise such rights and remedies relating to such breach as shall be
available to Seller, whether under the Product Agreements or by operation of applicable Law.

(c)          Allocation
of Proceeds and Costs of Enforcement. The Proceeds of any enforcement of a Counterparty’s obligations under the Product
Agreements pursuant to this Section 6.6, after deduction of all costs and expenses (including attorneys’ fees and expenses)
incurred by Seller in connection with such enforcement, shall belong to Purchasers to the extent constituting Purchased Receivables
and not constituting an Excluded Asset. All costs and expenses (including attorneys’ fees and expenses) of any enforcement
pursuant to this ‎Section 6.6 (other than any costs and expenses of Seller to the extent such amounts are specifically
satisfied out of the Proceeds of such enforcement) shall be borne by Purchasers, provided that any reimbursement by Bausch &
Lomb of these expenses shall belong to Purchasers.

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Section
6.7           Termination of Product Agreements. In no event
shall Seller exercise any right to terminate any of the Product Agreements, or agree with either Counterparty to terminate any
of the Product Agreements, except with the prior written consent of Purchasers (which consent may be withheld or delayed in either
Purchaser’s sole discretion).

Section
6.8           Approval of Assignments of Product Agreements.

(a)          Promptly,
and in any event within five (5) Business Days, following receipt by Seller of a request from a Counterparty for consent to assign
its rights, or delegate its duties, under any of the Product Agreements, Seller shall provide notice of such request to Purchasers.
Seller and Purchasers shall consult with each other regarding whether to grant such consent. In any event, Seller shall not grant
such consent without the prior written consent of Purchasers (which consent may be withheld or delayed in either Purchaser’s
sole discretion).

(b)          Seller
may not assign its rights, or delegate its duties, under any of the Bausch & Lomb Agreements without the prior written consent
of Purchasers (which consent may be withheld or delayed in either Purchaser’s sole discretion); provided, that Seller may,
without the prior written consent of Purchasers, assign the Bausch & Lomb Agreements to any Person that acquires all or substantially
all of Seller’s business or assets (whether through an asset purchase agreement, stock purchase agreement, merger agreement
or otherwise) if Seller also assigns this Agreement to such Person and such Person agrees in writing to be bound by the terms
of this Agreement.

(c)          Promptly,
and in any event no later than five (5) Business Days, following receipt of any executed assignment of rights, or delegation of
duties, under any of the Product Agreements by a Counterparty or Seller, Seller shall furnish a copy of such assignment or delegation
to Purchasers.

Section 6.9           Bausch
& Lomb Agreements. Prior to the Threshold Date, Seller shall not, without each Purchaser’s prior written consent,
deliver any inconsistent directions to Bausch & Lomb regarding the payment of the Purchased Receivables or the delivery of
Royalty Reports to Purchasers of the type referred to in the Bausch & Lomb Consent and Instruction Letter.

Section 6.10         Public
Announcements; Use of Names. Except for a press release substantially in the form attached hereto as Exhibit E, neither
party shall, and each party shall instruct its Affiliates not to, issue a press release or other public announcement or otherwise
make any public disclosure with respect to this Agreement or the subject matter hereof without the prior consent of the other
party (which consent shall not be unreasonably withheld or delayed), except as may be required by applicable Law (in which case
the party required to make the release or statement shall allow the other party reasonable time to comment on such release or
statement in advance of such issuance).

    	19

    	 

    

Section 6.11         Taxes.
Seller and Purchasers agree that for United States federal income tax purposes, (i) any and all Purchased Receivables remitted
by Seller to Purchasers pursuant to ‎Section 6.2(a) or otherwise under this Agreement shall be treated as received by Seller
as agent for Purchasers, and (ii) any and all amounts remitted by Seller to Purchasers pursuant to ‎Section 6.2(a) of
this Agreement shall be treated as remittances of amounts collected by Seller on behalf of Purchasers. Each party hereto agrees
to provide (to the extent it is legally eligible to do so) any tax forms that any other party hereto or Bausch & Lomb may
reasonably request in order to comply with applicable tax Law.

Section 6.12        Remittance
of Previously Received Purchased Receivables; Further Actions. From and after the Closing Date, each Purchaser and Seller
shall, at the expense of the requesting party, execute and deliver such additional documents, certificates and instruments, and
perform such additional acts, as may be reasonably requested and necessary or appropriate to carry out all of the provisions of
this Agreement and to give full effect to and consummate the transactions contemplated by this Agreement. Seller shall promptly,
but in any event no later than two (2) Business Days after the Closing Date, remit to each Purchaser such Purchaser’s Pro
Rata Portion of any payments made by or on behalf of Bausch & Lomb on or before the Closing Date that constitute or otherwise
relate to the Purchased Receivables.

Section
6.13         Intellectual Property Matters.

(a)          Administration.
Seller shall administer the prosecution, maintenance, defense and enforcement of any Product Related IP owned by Seller (including
any Outstanding Litigation) in accordance with, and subject to, the Product Agreements and in consultation with each Counterparty
(to the extent required or deemed appropriate by Seller).

(b)          Costs.
All costs and expenses (including attorneys’ fees and expenses) incurred by Seller in connection with the prosecution, maintenance,
defense or enforcement of the Product Related IP (including any Outstanding Litigation) shall, to the extent not reimbursed to
Seller by a Counterparty pursuant to the applicable Product Agreement, be borne by Seller.

(c)          Allocation
of Proceeds. The Proceeds (if any) of any enforcement or defense of the Product Related IP, without deduction for any costs
and expenses (including attorneys’ fees and expenses) incurred by Seller in connection therewith, shall belong to Purchasers
to the extent constituting Purchased Receivables and not constituting an Excluded Asset. In the event the Proceeds include payment
in respect of the Purchased Receivables and any other amounts, the parties agree to allocate the Proceeds between the Purchasers
and Seller in the proportion following the nature of the Proceeds and the rights under this Agreement.

(d)          Monitoring.
To the extent Seller has any rights under the Purchase Agreement with respect to the prosecution, maintenance, enforcement and
defense of the Product Related IP (including the Outstanding Litigation), Purchasers shall have the right to retain, at their
sole expense, outside counsel, who shall be permitted (together with Purchasers), where and when reasonably practical, to consult
with Seller and its counsel regarding any such rights and any actions taken or proposed to be taken by Seller in respect thereof.
Seller and its counsel shall (i) give reasonable consideration to the views of Purchasers and their counsel(s) with respect thereto
and (ii) provide Purchasers with such information with respect to any such rights as Purchasers may, from time to time, reasonably
request.

    	20

    	 

    

Section
6.14         Abandonment and Sale Notices.

(a)          Receipt
of Abandonment and Sale Notices. Promptly, and in any event within five (5) Business Days, following receipt by Seller of
an Abandonment Notice or Sale Notice from Bausch & Lomb under Section 2.7.10(b) or (d) of the Purchase Agreement, Seller shall
provide a copy of such notice to Purchasers. In the event Seller receives such a notice from Bausch & Lomb or otherwise has
rights under Section 2.7.10(b) or (d) of the Purchase Agreement, Seller and Purchasers shall consult with each other regarding
whether to negotiate with Bausch & Lomb with respect to such notice. In the event (i) Seller and Purchasers are able to agree
on economic terms as among them with respect to the repurchase of such Abandoned Development Rights or Purchased Assets (as each
are defined in the Purchase Agreement) or (ii) Purchasers agree to bear any costs (including purchase price) of Seller with
respect to such items, Seller shall negotiate with Bausch & Lomb with respect to such items. While any such negotiations shall
be undertaken by Seller, Purchasers shall control such negotiations. Seller agrees to exercise its rights under Section 2.7.10(b)
or (d) of the Purchase Agreement if directed by Purchasers.

(b)          Allocation
of Proceeds. The profit (if any) of any ultimate sales generated by the rights or assets purchased by Seller pursuant to Section 2.7.10(b)
or (d) of the Purchase Agreement received by Seller in connection therewith or otherwise, shall belong to Purchasers, unless the
parties have agreed otherwise pursuant to Section 6.14(a).

Section 6.15         Additional
Payment Conditions. From and after the Closing Date, Seller agrees that it shall not in any way cause or request Bausch &
Lomb to alter its Royalty Reports for the 2013 Royalty Year without the written consent of the Purchasers.

Article
VII

Indemnification

Section
7.1           Obligation of Parties to Indemnify.

(a)          Indemnification
by Seller. Subject to the limitations set forth in this ‎Article VII, Seller shall indemnify, defend and hold harmless,
each Purchaser, its Affiliates and their respective employees, officers, directors and agents (each, a “Purchaser Indemnified
Party”) against any and all losses, liabilities, expenses (including reasonable attorneys’ fees and expenses in
connection with any third party action, suit or proceeding) and damages (collectively, “Losses”) incurred by
any of them, to the extent arising or resulting from any of the following:

(i)          any
breach of any representation or warranty made by Seller in this Agreement or any other Transaction Document delivered to Purchasers
in connection herewith;

(ii)          any
breach of any covenant of Seller contained in this Agreement or any other Transaction Document delivered to Purchasers in connection
herewith; and

(iii)         any
obligations of Seller in accordance with Section 2.3 hereof.

    	21

    	 

    

(b)          Indemnification
by Purchasers. Subject to the limitations set forth in this ‎Article VII, each Purchaser shall severally, but not jointly,
indemnify Seller, its Affiliates and their respective employees, officers, directors and agents (each a “Seller Indemnified
Party”) against any and all Losses incurred by any of them, to the extent arising or resulting from any of the following:

(i)          any
breach of any representation or warranty made by such Purchaser in this Agreement or any other Transaction Document delivered
to Seller in connection herewith; and

(ii)          any
breach of any covenant of such Purchaser contained in this Agreement or any other Transaction Document delivered to Seller in
connection herewith.

Section
7.2           Procedures Relating to Indemnification for Third Party Claims.

(a)          Notice
of Third Party Claim. In order for a party (an “Indemnified Party”) to be entitled to any indemnification
under this ‎Article VII in respect of Losses arising out of or involving a claim or demand made by any Person other than either
or both Purchasers or Seller against a Purchaser Indemnified Party or a Seller Indemnified Party, as applicable (a “Third
Party Claim”), the Indemnified Party must notify the party from whom indemnification is sought under this ‎Article
VII (the “Indemnifying Party”) promptly in writing (including in such notice a brief description of the Third
Party Claim, including damages sought or estimated, to the extent actually known or reasonably capable of estimation by the Indemnified
Party); provided, however, that the failure to promptly provide such notice shall not affect the indemnification
provided under this ‎Article VII except to the extent that the Indemnifying Party has been actually prejudiced as a result
of such failure. Thereafter, the Indemnified Party shall deliver to the Indemnifying Party, promptly after the Indemnified Party’s
receipt thereof, copies of all documents (including court papers) received by the Indemnified Party relating to the Third Party
Claim.

(b)          Defense
of Third Party Claims. The Indemnifying Party shall be entitled to participate in the defense of the Third Party Claim and,
if it so chooses, to assume the defense thereof, at its own expense, with counsel selected by the Indemnifying Party (so long
as such counsel is not reasonably objected to by the Indemnified Party) if: (i) the Indemnifying Party acknowledges its obligation
to indemnify the Indemnified Party for any indemnifiable Losses resulting from such Third Party Claim; (ii) such Third Party
Claim involves (and continues to involve) solely monetary damages which are not reasonably likely to exceed the applicable amount
in Section 7.4(a) or (b), as applicable; (iii) such Third Party Claim does not relate to or arise in connection with
any criminal action; (iv) the Indemnifying Party makes reasonably adequate provision to satisfy the Indemnified Party of
the Indemnifying Party’s ability to defend, satisfy and discharge such Third-Party Claim; (v) no defense exists for
the Indemnified Party which is not available to the Indemnifying Party; and (vi) if the named parties to such Third Party
Claim (including impleaded parties) include both the Indemnifying Party and the Indemnified Party, representation of both parties
by the same counsel would not be inappropriate due to actual or potential differing interests between them (as determined by the
Indemnified Party in its reasonable discretion) (collectively, the “Defense Conditions”). If the Indemnifying
Party elects to assume the defense of any Third Party Claim, the Indemnifying Party shall not be liable to the Indemnified Party
for legal expenses subsequently incurred by the Indemnified Party in connection with the defense thereof; provided, however,
that if (i) the Indemnifying Party fails to take reasonable steps necessary to defend diligently such Third Party Claim within
five (5) Business Days after receiving written notice from the Indemnified Party that the Indemnified Party believes the Indemnifying
Party has failed to take such steps, (ii) the Indemnifying Party has not undertaken fully to indemnify the Indemnified Party
in respect of all indemnifiable Losses relating to the matter, or (iii) if any of the Defense Conditions cease to be satisfied
for any reason, the Indemnified Party may assume its own defense, and the Indemnifying Party will be liable for all costs or expenses
paid or incurred in connection therewith, and the Indemnified Party shall have the right to compromise or settle such Third Party
Claim with the consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed) and, if settled
with such consent, or if there is a final judgment against the Indemnified Party, the Indemnifying Party agrees to indemnify the
Indemnified Party from and against any loss or liability by reason of such settlement or judgment. In the event the Indemnifying
Party has assumed control of the defense of the Third Party Claim, the Indemnifying Party shall permit the Indemnified Party to
participate in, but not control, the defense of any such action or suit through counsel chosen by the Indemnified Party; provided
that such counsel is not reasonably objected to by the Indemnifying Party and the fees and expenses of such counsel shall
be borne by the Indemnified Party. The Indemnifying Party shall be liable for the fees and expenses of counsel employed by the
Indemnified Party in the defense of a Third Party Claim for any period during which the Indemnifying Party has not assumed the
defense thereof (other than during the period prior to the time the Indemnified Party shall have notified the Indemnifying Party
of such Third Party Claim).

    	22

    	 

    

(c)          Cooperation.
The parties hereto shall cooperate in the defense or prosecution of any Third Party Claim, with such cooperation to include (i)
the retention of and the provision to the Indemnifying Party of records and information that are reasonably relevant to such Third
Party Claim and (ii) the making available of employees on a mutually convenient basis for providing additional information and
explanation of any material provided hereunder. If the Indemnifying Party shall have assumed the defense of a Third Party Claim,
the Indemnified Party shall agree to any settlement, compromise or discharge of such Third Party Claim that the Indemnifying Party
may recommend and that by its terms obligates the Indemnifying Party to pay the full amount of the liability (if any) in connection
with such Third Party Claim and which (i) does not include a statement as to or admission of, fault, culpability or a failure
to act by or on behalf of any such Indemnified Party, (ii) includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Third Party Claim and (iii) does not provide for injunctive relief or
other relief relating to such Indemnified Party other than monetary damages.

Section
7.3           Procedures Relating to Indemnification for Other
Claims. In order for an Indemnified Party to be entitled to any indemnification under this ‎Article VII in respect of
Losses that do not arise out of or involve a Third Party Claim, the Indemnified Party must notify the Indemnifying Party promptly
in writing (including in such notice a brief description of the claim for indemnification and the Loss, including damages sought
or estimated, to the extent actually known or reasonably capable of estimation by the Indemnified Party); provided, however,
that the failure to promptly provide such notice shall not affect the indemnification provided under this ‎Article VII except
to the extent that the Indemnifying Party has been actually prejudiced as a result of such failure.

    	23

    	 

    

Section
7.4           Limitations on Indemnification.

(a)          Seller.
Notwithstanding anything in this Agreement to the contrary, Seller shall not have any liability under any clause of Section 7.1(a)
(i) in excess of the amount by which (x) two times the amount of the Purchase Price exceeds (y) the Total Net Amount, (ii)
to the extent any Losses are in respect of Purchased Receivables that are uncollectible on account of the insolvency, bankruptcy
or lack of creditworthiness of Bausch & Lomb or (iii) to the extent any Losses were suffered or incurred by a Purchaser Indemnified
Party as a result of such Purchaser Indemnified Party’s willful misconduct or fraud.

(b)          Purchasers.
Notwithstanding anything in this Agreement to the contrary, neither Purchaser shall have any liability under any clause of Section 7.1(b)
(i) in excess of such Purchaser’s Pro Rata Portion of the Purchase Price, in the aggregate, or (ii) to the extent any Losses
were suffered or incurred by a Seller Indemnified Party as a result of such Seller Indemnified Party’s willful misconduct
or fraud. Notwithstanding the foregoing sentence, in the event the claim against the Purchasers is for the non-payment of any
portion of the Purchase Price, neither Purchaser shall have liability for the failure of the other Purchaser to make such payment
of Purchase Price.

Section
7.5           Survival of Representations and Warranties.
The representations and warranties contained in this Agreement shall survive the Closing Date solely for purposes of ‎this
Article VII and shall terminate on the earlier to occur of (x) the Threshold Date and (y) the date that is ninety (90) days following
the end of the Royalty Quarter during which the Post-Closing Incentive Period expires pursuant to the terms of the Purchase Agreement.
No party hereto shall have any liability or obligation of any nature with respect to any representation or warranty after the
termination thereof, unless the other party hereto shall have delivered a notice to such party, pursuant to Section 7.2(a) or
Section 7.3, claiming such a liability or obligation under Section 7.1, prior to such date of termination.

Section
7.6           Exclusive Remedy. Other than for claims for
equitable relief or as otherwise specifically set forth in this Agreement, the parties hereto acknowledge and agree that, from
and after the Closing Date, this ‎Article VII (including Section 7.4 and Section 7.5) shall provide such parties’ sole
and exclusive remedy with respect to any matter or claim arising out of, relating to, or in connection with, this Agreement and
the transactions contemplated hereby, except that any such claim or matter based upon fraud or willful misrepresentation shall
not be subject to or limited by this Article VII and each of Purchaser and Seller accordingly preserves all remedies available
with respect to any such claim or matter based thereon under applicable Law.

Section
7.7           Limitations on Damages. Notwithstanding anything
to the contrary in this Agreement, in no event shall either party hereto be liable for any consequential, exemplary or punitive
damages unless such damages are payable to a third party in connection with a Third Party Claim or are based upon fraud or willful
misrepresentation.

    	24

    	 

    

Section
7.8           Termination. The parties agree that this Agreement
shall terminate on the earlier to occur of (x) the Threshold Date and (y) the date that is ninety (90) days following the end
of the Royalty Quarter during which the Post-Closing Incentive Period expires pursuant to the terms of the Purchase Agreement.
Upon such termination, (i) all ownership interests or other Adverse Claims arising through Purchasers in the Purchased Receivables
and any other property in respect of which an ownership interest or Adverse Claim was granted by Seller, or otherwise arose, in
favor of Purchasers pursuant to the Transaction Documents, shall be automatically, and without the need for any further action,
terminated and released, (ii) Purchasers shall, at the Seller’s sole cost and expense, deliver and, where applicable, execute
and endorse such agreements, documents and instruments evidencing or effecting the release of the security interests, liens and
other Adverse Claims in the Purchased Receivables and any other property in respect of which an Adverse Claim was granted by Seller,
or otherwise arose, in favor of Purchasers pursuant to any Transaction Documents as may be reasonably requested and prepared from
time to time by Seller and reasonably acceptable to Purchasers and (iii) the Seller may amend, terminate or otherwise modify any
financing statements filed against Seller without the consent of Purchasers. In addition, following the Threshold Date, at the
written request of Seller, Purchasers shall deliver an instruction letter, in form and substance reasonably satisfactory to Seller,
to Bausch & Lomb directing them to remit all Royalty Payments and related reports directly to Seller and otherwise terminating
and revoking all instructions and powers of attorney set forth or referred to in the Bausch & Lomb Consent and Instruction
Letter, and, if Purchasers fail to deliver such a letter to Bausch & Lomb within ten (10) Business Days of such request, Purchasers
hereby authorize Seller to deliver such a letter to Bausch & Lomb on behalf of Purchasers.

Article
VIII

Miscellaneous

Section
8.1          Headings. The captions to the Articles, Sections
and subsections hereof are not a part of this Agreement but are for convenience only and shall not be deemed to limit or otherwise
affect the construction thereof.

Section
8.2           Notices. Except where expressly provided otherwise
in this Agreement, whenever it is provided in this Agreement that notice, demand, request, consent or other communication shall
be given to or served upon one of the Purchasers by the other, any such notice demand, request, consent or other communication
shall be in writing and personally delivered, sent by certified or registered mail, return receipt requested, by overnight delivery
service with confirmation of delivery or by electronic (notices and other communications sent to an e-mail address shall also
be sent by overnight delivery service or personal delivery) to the address or addresses as may be designated from time to time
by a party hereto in accordance with this Section 8.2.

Notice
in each of the above cases shall be deemed effective for all purposes (i) upon hand delivery if hand delivered, (ii) three (3)
Business Days after posting in the United States Mail if sent by certified mail, or (iii) on the day of confirmed delivery by
overnight delivery service, facsimile or email (return receipt requested).

    	25

    	 

    

Section
8.3           Expenses. All reasonable out-of-pocket fees,
costs and expenses (including any legal fees) incurred by Seller in connection with the preparation and negotiation of, and entry
into, this Agreement and to consummate the transactions contemplated hereby shall be paid by Seller. All reasonable out-of-pocket
fees, costs and expenses (including any legal fees) incurred by Purchasers in connection with the preparation and negotiation
of, and entry into, this Agreement and to consummate the transactions contemplated hereby shall be paid by Seller.

Section
8.4           Assignment. Neither this Agreement nor any of
Seller’s rights, interests or obligations hereunder may be assigned, delegated or otherwise transferred, in whole or in
part, by operation of Law or otherwise by Seller without the prior written consent of Purchasers, and any such purported assignment,
delegation or transfer without such consent shall be void ab initio and of no effect; provided, however, that Seller may, without
the prior written consent of Purchasers, assign this Agreement to any Person that acquires all or substantially all of Seller’s
business or assets (whether through an asset purchase agreement, stock purchase agreement, merger agreement or otherwise) if Seller
also assigns the Bausch & Lomb Agreements to such Person and such Person agrees in writing to be bound by the terms of this
Agreement. Neither this Agreement nor any of either Purchaser’s rights, interests or obligations hereunder may be assigned,
delegated or otherwise transferred, in whole or in part, by operation of Law or otherwise by Purchasers without the prior written
consent of Seller, which shall not be unreasonably withheld, and any such purported assignment, delegation or transfer without
such consent shall be void ab initio and of no effect; provided, however, that either Purchaser may, without the prior written
consent of Seller, assign this Agreement to (i) the other Purchaser or any Affiliate of any Purchaser, (ii) any Person in connection
with a bona fide pledge or financing transaction entered into by such Purchaser (or its Affiliate), including a securitization
transaction, or (iii) any Person that acquires all or substantially all of such Purchaser’s business or assets (whether
through an asset purchase agreement, stock purchase agreement, merger agreement or otherwise), in any case, if such Person agrees
in writing to be bound by the terms of this Agreement.

Section
8.5           Successors and Assigns. Subject to the provisions
of ‎Section 8.4, this Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and
their respective permitted successors and assigns.

Section
8.6           Amendment and Waiver.

(a)          This
Agreement may be amended, modified or supplemented, or any provision hereof waived, only in a writing signed by Seller and each
Purchaser.

(b)          No
failure or delay on the part of either party hereto in exercising any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. No course of dealing between the parties hereto shall be effective to amend,
modify, supplement or waive any provision of this Agreement.

    	26

    	 

    

Section
8.7           Entire Agreement. This Agreement, including
the Exhibits and Schedules attached to this Agreement, sets forth the entire agreement and understanding between the parties hereto
as to the subject matter hereof. All express or implied agreements, arrangements, representations and understandings as to the
subject matter hereof, whether oral or written, heretofore made are superseded by this Agreement.

Section
8.8            Independent Contractors. The parties hereto
recognize and agree that each is operating as an independent contractor and not as a partner, joint venturer, agent or fiduciary
of the other.

Section
8.9            No Third Party Beneficiaries. This Agreement
is for the sole benefit of Seller and Purchasers and their permitted successors and assigns, and nothing herein expressed or implied
shall give or be construed to give to any Person, other than the parties hereto and such successors and assigns, any legal or
equitable rights hereunder.

Section
8.10          Governing Law. This Agreement shall be governed exclusively
by the laws of the State of Texas, without giving effect to any conflict of law provisions.

Section
8.11          Jurisdiction; Venue; Service Of Process. Each party hereto
irrevocably submits to the exclusive jurisdiction of (a) the United States District Court for the Northern District of Texas,
and (b) any District Courts of the State of Texas located in Dallas County, Texas, for the purposes of any suit, action or other
proceeding arising out of this Agreement or any transaction contemplated hereby. Each party hereto agrees to commence any action,
suit or other proceeding relating hereto in the courts of United States District Court for the Northern District of Texas or,
if such suit, action or other proceeding may not be brought in such court for jurisdictional reasons, in the District Courts of
the State of Texas located in Dallas County, Texas. Each party hereto further agrees that service of any process, summons, notice
or document in any of the manners set forth in Section 8.2 shall be effective service of process for any action, suit or proceeding
in Texas with respect to any matters to which it has submitted to jurisdiction in this Section 8.11. Each party hereto irrevocably
and unconditionally waives any objection to the laying of venue of any action, suit or other proceeding arising out of this Agreement
and the transactions contemplated hereby in (a) the United States District Court for the Northern District of Texas, or (b) any
District Courts of the State of Texas located in Dallas County, Texas, and hereby further irrevocably and unconditionally waives,
and shall not assert by way of motion, defense, or otherwise, in any such suit, action or proceeding, any claim that it is not
subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution,
that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper,
or that this Agreement and the transactions contemplated hereby and thereby may not be enforced in or by any of the above-named
courts.

    	27

    	 

    

Section
8.12         Severability. If any term or provision of this Agreement
is held to be invalid, illegal or unenforceable by a court or other Governmental Entity of competent jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other term or provision of this Agreement, which shall remain in full force
and effect, and the parties hereto shall replace such term or provision with a new term or provision permitted by applicable Law
and having an economic effect as close as possible to the invalid, illegal or unenforceable term or provision. The holding of
a term or provision to be invalid, illegal or unenforceable in a jurisdiction shall not have any effect on the application of
the term or provision in any other jurisdiction.

Section
8.13          Counterparts. This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. Copies of executed counterparts transmitted by email
with PDF attachment shall be considered original executed counterparts.

[The
remainder of this page is left intentionally blank]

    	28

    	 

    

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective representatives thereunto duly
authorized as of the date first above written.

	 	Seller:
	 	 
	 	InSite Vision Incorporated
	 	 
	 	/s/
    Louis Drapeau 
	 	Name: Louis Drapeau
	 	Title:   Vice President
    and Chief Financial Officer

 

[Signature
Page to Royalty Purchase Agreement]

    	 

    	 

    

	 	Purchasers:
	 	 
	 	SWK Funding, LLC
	 	 
	 	/s/ Winston Black 
	 	Name: Winston Black
	 	Title:    Managing Director
	 	 
	[Signature
Page to Royalty Purchase Agreement]

    	 

    	 

    

	 	Bess
Royalty, L.P.
	 	 
	 	By:
TPG Opportunities, II Advisors, Inc.
 
	 	Its: General Partner
	 	 
	 	/s/ Ronald Cami
	 	Ronald Cami, Vice President
	 	 
	[Signature
Page to Royalty Purchase Agreement]

    	 

    	 

    

Exhibit
A

To Royalty Purchase Agreement

Seller’s
Wire Transfer Instructions

	 	Bank
    Name:	***
	 	 	 
	 	ABA#:	***
	 	 	 
	 	Beneficiary:	***
	 	 	 
	 	Beneficiary
    Account Number:	***
	 	 	 
	 	Ultimate 
    Beneficiary:	***
	 	 	 
	 	Ultimate 
    Beneficiary Account Number:	***

    	A-1

    	 

    

Exhibit
B

To Royalty Purchase Agreement

Purchaser’s
Wire Transfer Instructions

	***	 
	ABA
    # ***	 
	Account
    Number: ***	 
	Account
    Name: ***	 

 

    	B-1

    	 

    

Exhibit
C

to Royalty Purchase Agreement

 

Schedule
of Exceptions to Seller’s Representations and Warranties

 

This
Schedule of Exceptions to the representations and warranties of Seller has been prepared in connection with the Royalty Purchase
Agreement, dated as of April 2, 2013 (the “Agreement”), by and among InSite
Vision Incorporated, a Delaware corporation as Seller (“Seller”), and SWK
Funding LLC, a Delaware limited liability company (“SWK Purchaser”), and Bess
Royalty, L.P., a Delaware limited partnership (“Bess Purchaser”) (SWK Purchaser and Bess Purchaser each
individually “Purchaser” and collectively, the “Purchasers”).

Unless
otherwise defined in this Schedule of Exceptions, terms defined in the Agreement shall have the same meanings when used herein.

On
January 3, 2013, Janel Joseph and Mitchell Joseph III filed a complaint in circuit court in Fayette County, Kentucky against Bausch
& Lomb and us alleging that Janel Joseph was injured when her physician treated her with the Bausch & Lomb product Besivance
following a photorefractive keratectomy. The plaintiffs allege that the use was off-label but nonetheless marketed by the defendants.
Ms. Joseph alleges loss of vision and Mr. Joseph, her husband, alleges loss of consortium. On February 1, 2013, Bausch & Lomb
removed the case to the United States District Court for the Eastern District of Kentucky. On February 8. 2013, the defendants
filed answers denying the allegations. There have been no further proceedings. The plaintiffs to date have not made a specific
claim for damages.

 

In
February 2012, the ASCRS Cornea and Refractive Surgery Clinical Committees jointly issued an alert regarding the use of topical
ophthalmic medications that contain advanced vehicles (such vehicles are designed to deliver consistent dosage, increase contact
time, stabilize the ocular surface and reduce dosing frequency) immediately prior to or intraoperatively during LASIK and PRK. 

    	C-1

    	 

    

Exhibit
D

To Royalty Purchase Agreement

Product Agreements

See attached.

 

    	D-1

    	 

    

Exhibit
E

To Royalty Purchase Agreement

Form
of Press Release

 

    	E-1Exhibit 10.14

 

Execution
Copy

 

[***] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. ASTERISKS DENOTE SUCH OMISSIONS.

 

 

 

 AMENDED AND
RESTATED

LIMITED PARTNERSHIP
AGREEMENT

OF

HOLMDEL PHARMACEUTICALS,
LP

 

Dated as of December
20, 2012

 

    	 

    	 

    

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT OF

HOLMDEL PHARMACEUTICALS, LP

Table of Contents

 

	ARTICLE I. General Provisions	2
	 	1.01	Definitions.	2
	 	1.02	Name.	8
	 	1.03	Registered Office; Offices and Qualification.	8
	 	1.04	Commencement and Duration.	9
	 	1.05	Partners.	9
	 	1.06	Representations of Partners.	9
	 	1.07	Notices With Respect to Representations by Limited Partners.	11
	 	1.08	Liability of Partners.	11
	 	1.09	Purpose and Powers.	11
	 	1.10	Anti-Money Laundering Provisions.	12
	ARTICLE II. Management	13
	 	2.01	Authority of General Partner.	13
	 	2.02	Authority of Limited Partners.	15
	 	2.03	Expenses.	15
	 	2.04	Standard of Care.	15
	 	2.05	Indemnification.	16
	ARTICLE III. Partner’s Capital Contribution	17
	 	3.01	Capital Contributions.	17
	 	3.02	Preemptive Rights.	17
	ARTICLE IV. Allocations of Profits and Losses; Capital Accounts	18
	 	4.01	Capital Accounts.	18
	 	4.02	Compliance with Treasury Regulations Section 1.704-1(b)	18
	 	4.03	Negative Capital Accounts	18
	 	4.04	Transfer of Capital Accounts	19
	 	4.05	Allocation of Profits and Losses	19
	 	4.06	Effect of Change or Transfer in Partner Percentages	19
	 	4.07	Tax and Regulatory Allocations	19
	 	4.08	Gross Asset Value Adjustments	20
	 	4.09	Consistency	21
	 	4.10	Other Allocation Matters	21
	 	4.11	Allocation of Nonrecourse Liabilities	21
	 	4.12	Tax Reporting	21
	 	4.13	Partnership for Tax Purposes	22
	 	4.14	Preparation of Tax Returns	22
	 	4.15	Tax Elections	22
	 	4.16	Tax Matters Partner	22
	 	4.17	Other Partner Obligations	23
	 	4.18	Reportable Transactions	23

 

    	i

    	 

    

 

	ARTICLE V. Distributions	23
	 	5.01	Distributions to Partners	23
	 	5.02	Distributions of Noncash Assets in Kind.	23
	 	5.03	Distributions for Payment of Tax/Withholdings.	24
	 	5.04	Tax Withholding Certificate	24
	 	5.05	Indemnity	24
	 	5.06	Refunds of Withholding Taxes	25
	 	5.07	Tax Cooperation	25
	 	5.08	Distributions Violative of the Act Prohibited.	25
	 	5.09	Offset	25
	 	5.10	Return of Previously Distributed Amounts.	25
	ARTICLE VI. Dissolution, Liquidation, Winding Up and Withdrawal	26
	 	6.01	Dissolution.	26
	 	6.02	Winding Up.	26
	 	6.03	Death or Disability of a Natural Person Limited Partner.	27
	 	6.04	Withdrawal of the General Partner.	27
	 	6.05	Withdrawals of Limited Partners.	27
	 	6.06	Amounts Reserved and Pending Claims.	27
	ARTICLE VII. Meetings, Accounts, Reports and Auditors	28
	 	7.01	Books of Account.	28
	 	7.02	Audit and Report.	28
	 	7.03	Fiscal Year.	29
	ARTICLE VIII. Transfers and Other Events	29
	 	8.01	Transfers.	29
	 	8.02	Sale of the Partnership	31
	 	8.03	Resignation	32
	ARTICLE IX. Miscellaneous	32
	 	9.01	Binding Agreement.	32
	 	9.02	Gender.	32
	 	9.03	Notices.	32
	 	9.04	Consents and Approvals.	33
	 	9.05	Counterparts.	33
	 	9.06	Amendments	33
	 	9.07	Applicable Law.	33
	 	9.08	Severability.	33
	 	9.09	Entire Agreement.	34
	 	9.10	Confidentiality.	34
	 	9.11	No Right to Partition.	36
	 	9.12	Partnership Tax Treatment.	36
	 	9.13	Partnership Counsel.	36
	 	9.14	Jury Trial Waiver.	36
	 	9.15	Survival.	36
	 	9.16	Public Announcements	37

 

    	ii

    	 

    

THE LIMITED PARTNERSHIP INTERESTS OF HOLMDEL PHARMACEUTICALS, LP HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE
ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. NEITHER THE LIMITED PARTNERSHIP INTERESTS
NOR ANY INTEREST THEREIN MAY BE SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER THE
SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS UNLESS PURSUANT TO EXEMPTIONS THEREFROM. ADDITIONAL RESTRICTIONS
ON TRANSFER OF THE LIMITED PARTNERSHIP INTERESTS ARE SET FORTH IN THIS AGREEMENT. BY ACQUIRING THE LIMITED PARTNERSHIP INTERESTS
IN THIS LIMITED PARTNERSHIP, EACH LIMITED PARTNER REPRESENTS THAT THE LIMITED PARTNERSHIP INTERESTS HAVE BEEN ACQUIRED FOR
INVESTMENT PURPOSES ONLY AND WILL NOT BE SOLD OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION OR OTHER COMPLIANCE WITH THE AFORESAID
SECURITIES ACT AND LAWS, THE RULES AND REGULATIONS PROMULGATED THEREUNDER AND THE REQUIREMENTS OF THIS AGREEMENT. THE LIMITED
PARTNERSHIP INTERESTS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, BY ANY STATE SECURITIES
COMMISSION, OR BY ANY OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS
OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT OF

HOLMDEL PHARMACEUTICALS, LP

This Amended and
Restated Limited Partnership Agreement Holmdel Pharmaceuticals, LP (the “Partnership”), dated, made and effective
as of December 20, 2012 (the “Effective Date”), is entered into by and among HP General Partner, LLC, a Delaware
limited liability company, as general partner of the Partnership (the “General Partner”), Brett Pope, as the
withdrawing limited partner (the “Withdrawing Limited Partner”), and the other limited partners listed from
time to time on the Partner Schedule, together with any other Persons admitted as limited partners from time to time pursuant to
the terms of this Agreement (such Persons together with his, her or its Permitted Transferees are hereinafter individually referred
to as a “Limited Partner” and collectively referred to as the “Limited Partners”).

RECITALS

WHEREAS,
the Partnership was formed pursuant to a certificate of limited partnership, filed with the Secretary of State of the State of
Delaware on December 12, 2012 (the “Certificate of Limited Partnership”) pursuant to the Delaware Revised Uniform
Limited Partnership Act, as amended from time to time (the “Act”);

WHEREAS,
the General Partner and the Withdrawing Limited Partner are parties to that certain Limited Partnership Agreement dated as of December
12, 2012 (the “Prior Agreement”);

WHEREAS,
the parties desire to enter into this Amended and Restated Limited Partnership Agreement to permit the withdrawal of the Withdrawing
Limited Partner and the admission of certain other Persons as Limited Partners, and further to make the modifications set forth
in this Agreement and to amend and restate the Prior Agreement in its entirety.

    	 

    	 

    

NOW, THEREFORE,
in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

Article
I.

General Provisions

1.01           
Definitions.

For the purposes
of this Agreement, the following terms shall have the meanings set forth below, and all such terms that relate to accounting matters
shall be interpreted in accordance with Tax Basis Accounting Principles (as defined herein), except as otherwise specifically provided
herein:

“Act”
has the meaning set forth in the recitals to this Agreement.

“Acquisition”
means the Partnership’s acquisition of the Purchased Assets pursuant to the Asset Purchase Agreement.

“Adjusted
Capital Account Deficit” means, with respect to any Partner, the deficit balance, if any, in such Partner’s Capital
Account as of the end of the relevant period, after giving effect to the following adjustments:

(a)          Credit to
such Capital Account any amounts which such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed
to be obligated to restore pursuant to the penultimate sentences of Treasury Regulations Sections 1.704 2(g)(1) and 1.704 2(i)(5);
and

(b)          Debit to
such Capital Account the items described in Sections 1.704 1(b)(2)(ii)(d)(4), 1.704 1(b)(2)(ii)(d)(5) and 1.704 1(b)(2)(ii)(d)(6)
of the Treasury Regulations.

The foregoing definition
of Adjusted Capital Account Deficit is intended to comply with the provisions of Section 1.704 1(b)(2)(ii)(d) of the Treasury Regulations
and will be interpreted consistently therewith.

“Affiliate”
means, with respect to a Person, any Person controlling, controlled by or under common control with such Person. As used herein,
“control” means, as to any entity, the power to direct the management and policies of such entity through ownership
of securities or otherwise.

“Agreement”
means this Amended and Restated Limited Partnership Agreement, as amended from time to time. References to this Agreement will
be deemed to include all provisions incorporated in this Agreement by reference.

“Anti-Money
Laundering Laws” has the meaning set forth in Section 1.10(a)(ii).

“Approved
Sale” has the meaning set forth in Section 8.02(a).

“Aptalis”
means Aptalis Pharmatech, Inc. (formerly Eurand, Inc., formerly Eurand America, Inc.), a Nevada corporation.

“Asset
Purchase Agreement” means that certain Asset Purchase Agreement dated as of December 20, 2012, between GSK and the Partnership.

    	2

    	 

    

“Business
Day” means any day other than Saturday and Sunday and each other day on which banks located in Houston, Texas are not
required or authorized by law to remain closed.

“Capital
Account” means the account maintained for each Partner pursuant to Section 4.01 established and adjusted in accordance
with Article IV..

“Capital
Call” has the meaning set forth in Section 3.02(a).

“Capital
Contribution” means, with respect to any Partner and the Partnership as of any date, the aggregate amount of all such
Partner’s contributions of capital to the Partnership pursuant to this Agreement on or prior to such date, as shown on the
Partner Schedule, and subject to adjustments as provided for herein, unless such contribution is not treated as a Capital Contribution
by the express terms hereof.

“Certificate
of Limited Partnership” has the meaning set forth in the recitals to this Agreement.

“Code”
means the United States Internal Revenue Code of 1986, as amended, or any successor to such statute. Any reference herein to a
specific section of the Code shall be deemed to include any corresponding provisions of future law.

“Covered
Person” means the General Partner and its Affiliates; each of the current and former shareholders, officers, directors,
partners, members, managers, advisors and agents of any of the General Partner and its Affiliates; and each of the current and
former employees of any of the GP’s Affiliates. For the avoidance of doubt, no Limited Partner shall constitute or be deemed
a Covered Person.

“Depreciation”
means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction
allowable with respect to an asset for such period, except that if the Gross Asset Value of an asset of the Partnership differs
from its adjusted basis for United States federal income tax purposes at the beginning of such period, Depreciation shall be an
amount which bears the same ratio to such beginning Gross Asset Value as the United States federal income tax depreciation, amortization
or other cost recovery deduction for such period bears to such beginning adjusted tax basis; provided that if the adjusted basis
for United States federal income tax purposes of an asset of the Partnership at the beginning of such Fiscal Year or other period
is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected
by the General Partner.

“Effective
Date” has the meaning set forth in the preamble to this Agreement.

“Equity
Financing” has the meaning set forth in Section 3.02(a).

“Excluded
Partner” has the meaning set forth in Section 3.02(a).

“Extraordinary
Event” means it is determined that the Partnership should undertake any of the following actions: (i) amend, modify or
terminate any of (A) the Asset Purchase Agreement or any Other Transaction Document to which the Partnership is a party, (B) the
License and Supply Agreement or (C) the Sublicense and Distribution Agreement, (ii) raise funds to finance any claim, demand,
action, suit or proceeding related to the Purchased Assets or the Product, including as the result of any termination, suspension
of performance, or alleged breach of any agreement to which the Partnership is a party; (iii) raise funds in order to defend
or settle any claim, demand, action, suit or proceeding against the Partnership by third parties or to defend, protect or enforce
any of the Purchased Assets or the Product; (iv) in the event of an actual or threatened FDA ruling related to the Product, take
actions in order to protect and preserve the Partnership's interest in the Product or protect and preserve the revenue stream under
any agreement to which the Partnership is a party; or (v) otherwise raise funds in order to take reasonable steps to protect the
revenue stream arising from or related any agreement to which the Partnership is a party.

    	3

    	 

    

“Family
Group” means, with respect to any individual, such individual’s spouse and descendants (whether natural or adopted),
siblings and descendants of such siblings (whether natural or adopted) and any trust, partnership, limited liability company or
similar vehicle established and maintained solely for the benefit of (or the sole members or partners of which are) such individual,
such individual’s spouse and/or such individual’s descendants (whether natural or adopted) siblings and/or descendants
of such siblings (whether natural or adopted).

“Fiscal
Year” has the meaning set forth in Section 7.03.

“General
Partner” has the meaning set forth in the preamble to this Agreement.

“GP Affiliate”
means any Affiliate of the General Partner, and any partner, member, manager, stockholder, director, officer or agent of the General
Partner.

“Gross
Asset Value” means, with respect to any asset, the asset’s adjusted basis for United States federal income tax
purposes, except as follows:

(a)          The Gross
Asset Value of any asset contributed by a Partner to the Partnership is the gross fair market value of such asset at the time of
contribution;

(b)          The Gross
Asset Value of all Partnership assets may be adjusted to equal their respective gross fair market values as of the following times:
(i) the acquisition of any additional interest in the Partnership by any new or existing Partner in exchange for more than a de
minimis Capital Contribution; (ii) the distribution by the Partnership to a Partner of more than a de minimis amount
of property as consideration for an interest in the Partnership; (iii) the grant of an interest in the Partnership (other than
a de minimis interest) as consideration for the provision of services to or for the benefit of the Partnership by a Partner
acting in a Partner capacity, or by a new Partner acting in a “partner capacity,” or in anticipation of becoming a
“partner” (in each case within the meaning of Treasury Regulations Section 1.704 1(b)(2)(iv)(d)); and (iv) the liquidation
of the Partnership within the meaning of Treasury Regulations Section 1.704 1(b)(2)(ii)(g); provided, however, that the adjustments
pursuant to clauses (i), (ii) and (iii) above shall be made only if the General Partner reasonably determines that such adjustments
are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership;

(c)          The Gross
Asset Value of any Partnership asset distributed to any Partner shall be adjusted to equal the gross fair market value of such
asset on the date of distribution;

(d)          The Gross
Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments in the adjusted basis of such assets
pursuant to Section 734(b) or Section 743(b) of the Code, but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m); provided that Gross Asset Values shall
not be adjusted pursuant to this clause (d) to the extent that the General Partner determines that an adjustment pursuant to clause
(b) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to
this clause (d).

    	4

    	 

    

If the Gross Asset
Value of an asset has been determined or adjusted pursuant to clause (a), (b) or (c) above, such Gross Asset Value shall thereafter
be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

“GSK”
means GlaxoSmithKline LLC, a Delaware limited liability company

“Indemnifiable
Costs” means all costs, expenses, losses, damages, claims, liabilities, fines and judgments (including legal or other
expenses reasonably incurred in investigating or defending against any such loss, claim, damages or liability and any sums which
may be paid in settlement) of whatever nature, known or unknown, liquidated or unliquidated that may cause or be incurred in connection
with or arising from any actual or threatened claim, action, suit, proceeding or investigation, whether civil or criminal, by or
before any court or administrative or legislative body or authority.

“Investment
Advisers Act” means the Investment Advisers Act of 1940, as amended, and the regulations thereunder and interpretations
thereof promulgated by the SEC, as in effect from time to time.

“JK”
means Holmdel Therapeutics, LLC, a Delaware limited liability company, together with its Permitted Transferees. 

“Investment
Company Act” means the Investment Company Act of 1940, as amended, and the regulations thereunder and interpretations
thereof promulgated by the SEC, as in effect from time to time.

“Legal
Representative” means any executor, administrator, committee, guardian, conservator or trustee.

“License
and Supply Agreement” means that certain Second Amended and Restated License and Supply Agreement dated as of December
20, 2012, by and between Aptalis and the Partnership.

“Limited
Partner” has the meaning set forth in the preamble to this Agreement.

“Majority
in Interest” of the Partners means, as of any date of determination, Partners whose collective Partner Percentages represent
greater than fifty percent (50%) (or other specified percentage) of all Partner Percentages at such time.

“Mist”
means Mist Pharmaceuticals, LLC, a Delaware limited liability company, together with its successors and assigns.

“New Securities”
has the meaning set forth in Section 3.02(a).

“Noncash
Asset” means any asset of the Partnership other than cash.

“Nonrecourse
Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions
for a Fiscal Year of the Partnership shall be determined in accordance with the rules of Treasury Regulations Section 1.704-2(c).

“Nonrecourse
Liability” has the meaning set forth in Section 1.704-2(b)(3) of the Treasury Regulations.

“OFAC”
has the meaning set forth in Section 1.06(c)(ii).

“Operating
Expenses” has the meaning set forth in Section 2.03.

    	5

    	 

    

“Organizational
Costs” means all costs and expenses incurred in connection with the organization of the General Partner, the Partnership,
and the admission of Limited Partners to the Partnership (including, without limitation, the preparation of the license, sublicense
and administrative services agreements to which the Partnership is a party or by which it is affected), and shall include, without
limitation, legal, accounting, filing, capital raising and other organizational expenses.

“Other
Transaction Documents” shall have the same meaning ascribed to such term in the Asset Purchase Agreement.

“Participation
Notice” has the meaning set forth in Section 3.02(a).

“Partner”
means a Person who is the General Partner or a Limited Partner.

“Partner
Debt Financing” has the meaning set forth in Section 3.02(a).

“Partner
Nonrecourse Debt” has the meaning set forth in Section 1.704-2(b)(4) of the Treasury Regulations.

“Partner
Nonrecourse Debt Minimum Gain” has the meaning set forth in Section 1.704-2(i)(2) of the Treasury Regulations, and shall
be determined in accordance with Section 1.704-2(i)(3) of the Treasury Regulations.

“Partner
Nonrecourse Deduction” has the meaning set forth in Section 1.704-2(i)(1) of the Treasury Regulations, and shall be determined
in accordance with Section 1.704-2(i)(2) of the Treasury Regulations.

“Partner
Percentage” means, with respect to any Partner and the Partnership, the amount set forth for such Partner on the Partner
Schedule as the same may be updated from time to time.

“Partner
Schedule” means the schedule listing the name, address, Capital Contribution, Partner Percentage, and date of admission
of each Partner, attached hereto and amended from time to time by the General Partner.

“Partnership”
has the meaning set forth in the preamble of this Agreement.

“Partnership
Counsel” has the meaning set forth in Section 9.13.

“Partnership
Minimum Gain” has the meaning set forth in Section 1.704-2(b)(2) of the Treasury Regulations, and shall be determined
in accordance with Section 1.704-2(d) of the Treasury Regulations.

“Partnership
Information” has the meaning set forth in Section 9.10(a).

“Partnership
Term” has the meaning set forth in Section 1.04.

“Permitted
Transfer” has the meaning set forth in Section 8.01(b).

“Permitted
Transferee” has the meaning set forth in Section 8.01(b).

“Person”
means any individual, corporation (including a business trust), limited liability company, partnership, association (whether or
not incorporated), trust, joint stock company, joint venture or other entity.

    	6

    	 

    

“Prior
Agreement” has the meaning set forth in the recitals to this Agreement.

“Product”
means the pharmaceutical product InnoPran XL® (propranolol hydrochloride) extended release capsules (a beta blocker indicated
for the treatment of high blood pressure) marketed or formerly marketed by GSK under the InnoPran XL® trademark.

“Profits”
or “Losses” means, for each Fiscal Year or other period, an amount equal to the Partnership’s taxable
income or loss for such Fiscal Year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of
income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable
income or loss) with the following adjustments:

(a)          Any income
of the Partnership that is exempt from United States federal income tax, and to the extent not otherwise taken into account in
computing Profits or Losses pursuant to this paragraph, shall be added to such taxable income or loss;

(b)          Any expenditures
of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury
Regulations Section 1.704 1(b)(2)(iv)(i), and to the extent not otherwise taken into account in computing Profits or Losses pursuant
to this paragraph, shall be subtracted from such taxable income or loss;

(c)          In the event
the Gross Asset Value of any Partnership asset is adjusted pursuant to subdivisions (b) or (c) of the definition of “Gross
Asset Value” herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such
asset for purposes of computing Profits or Losses;

(d)          Gain or loss
resulting from any disposition of Partnership property with respect to which gain or loss is recognized for United States federal
income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the
adjusted tax basis of such property differs from its Gross Asset Value;

(e)          In lieu of
depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there
shall be taken into account Depreciation for such Fiscal Year, computed in accordance with the definition of “Depreciation”;
and

(f)          Any items
which are specially allocated pursuant to the provisions of Section 4.07 hereof shall not be taken into account in computing
Profits or Losses.

“Proportional
Share” has the meaning set forth in Section 3.02(a).

“Purchased
Assets” has the meaning given such term in the Asset Purchase Agreement.

“Rule 144”
means, as of any date of determination, Rule 144 promulgated under the Securities Act, or any similar or successor rule in effect
as of such date.

“SEC”
means the United States Securities and Exchange Commission.

“Sale of
the Partnership” means a sale of the Partnership resulting from either (i) a sale or a series of related sales of
interests in the Partnership representing more than 50% of the total interests (including by operation of law, merger, consolidation,
or otherwise) or (ii) a sale or a series of related sales of more than 50% of the Partnership’s assets (measured on
the basis of fair market value on a consolidated basis).

    	7

    	 

    

“Securities
Act” means the Securities Act of 1933, as amended, and the regulations thereunder and interpretations thereof promulgated
by the SEC, as in effect from time to time.

“Special
Limited Partner” has the meaning set forth in Section 6.04(c).

“Sublicense
and Distribution Agreement” means that certain Sublicense and Distribution Agreement dated as of December 20, 2012 by
and between the Partnership and Mist.

“SWK”
means SWK HP Holdings LP, a Delaware limited partnership, together with its Permitted Transferees.

“Tax Basis
Accounting Principles” means accounting principles which are in accordance with the Code.

“Transfer”
has the meaning set forth in Section 8.01(a).

“Transfer
Expenses” has the meaning set forth in Section 8.01(g).

“Treasury
Regulations” means the United States federal income tax regulations, including any temporary regulations, promulgated
by the U.S. Treasury Department pursuant to the Code. Such term shall be deemed to include any future amendments to such regulations
and any corresponding provisions of succeeding regulations; provided, however, if any such amendments or provisions are discretionary,
the term “Treasury Regulations” shall include such amendments or provisions as determined by the General Partner in
its good faith discretion.

“Treaty”
means the Switzerland-United States Income Tax Treaty of 1996, as amended.

“Withdrawing
Limited Partner” has the meaning set forth in the preamble hereto.

1.02           
Name. 

The Partnership
shall conduct any action required under this Agreement under the name of “Holmdel Pharmaceuticals, LP”. The General
Partner shall have the power at any time to change the name of the Partnership, and shall give prompt notice of any such change
to each Partner; provided, that the General Partner may not change the name of the Partnership such that the name incorporates
the name, service mark or trademark of any Limited Partner.

1.03           
Registered Office; Offices and Qualification.

(a)               
The registered office of the Partnership in the State of Delaware will be at Corporation Trust
Center, 1209 Orange Street, Wilmington, Delaware 19801. The name of the registered agent in charge thereof will be The Corporation
Trust Company. The General Partner may from time to time change such registered agent and such registered office.

(b)              
The Partnership may not establish or maintain a principal office or any office in the United
States.

(c)               
The General Partner may not qualify the Partnership to do business in any jurisdiction in
the United States.

    	8

    	 

    

1.04           
Commencement and Duration.

The Partnership
commenced upon the date of the filing of record of the Certificate of Limited Partnership in the Office of the Secretary of State
of the State of Delaware, and shall continue until terminated in accordance with this Agreement (such term, being referred to as
the “Partnership Term”).

1.05           
Partners.

(a)               
The Partner Schedule (as the same may be amended from time to time by the General Partner)
sets forth the name and address of the General Partner and each Limited Partner and the Capital Contribution that each Partner
has made to the Partnership. Promptly after any change in the Partner Percentages, the General Partner shall provide notice to
each Partner setting forth the updated Partner Percentages and the date as of which such updated Partner Percentages took effect.

(b)              
The addition to the Partnership at any time of one or more Partners will not be a cause for
dissolution of the Partnership, and all the Partners will continue to be subject to this Agreement in all respects.

(c)               
The Limited Partners shall not participate in the control of the business of the Partnership
within the meaning of Section 17-303(a) of the Act nor shall the Limited Partners have any authority to act for or on
behalf of the Partnership except as is specifically permitted by this Agreement.

(d)              
The execution of this Agreement by the Withdrawing Limited Partner constitutes his withdrawal
as a Limited Partner of the Partnership. With effect from the time of execution of this Agreement, the Withdrawing Limited Partner
has no further right, interest or obligation of any kind whatsoever as a Limited Partner of the Partnership. An amount equal to
the balance of the Capital Account of the Withdrawing Limited Partner shall be distributed to such Withdrawing Limited Partner
on the date of this Agreement.

1.06           
Representations of Partners.

(a)               
This Agreement is made with the General Partner in reliance upon the General Partner’s
representation to the Partnership that:

(i)                
it is duly organized, validly existing and in good standing under the laws of the State of
Delaware, and is qualified to do business under the laws of each state where such qualification is required to carry on the business
of the Partnership;

(ii)              
it has full power and authority to execute and deliver this Agreement and to act as General
Partner under this Agreement;

(iii)            
this Agreement has been authorized by all necessary actions by it, has been duly executed
and delivered by it, and is a legal, valid and binding obligation of it, enforceable according to its terms; and

(iv)            
the execution and delivery of this Agreement and the performance of its obligations under
this Agreement will not conflict with, or result in any violation of, or default under, any provision of any governing instrument
applicable to it, or any agreement or other instrument to which it is a party or by which it or any of its properties are bound,
or any provision of law, statute, rule or regulation, or any ruling, writ, order, injunction or decree of any court, administrative
agency or governmental body applicable to it. 

    	9

    	 

    

(b)              
This Agreement is made with each Limited Partner in reliance upon each Limited Partner’s
representation to the Partnership, that:

(i)                
it has full power and authority to execute and deliver this Agreement and to act as a Limited
Partner under this Agreement; this Agreement has been authorized by all necessary actions by it; this Agreement has been duly executed
and delivered by it; and this Agreement is a legal, valid and binding obligation of it, enforceable against it according to its
terms; 

(ii)              
the execution and delivery of this Agreement and the performance of its obligations under
this Agreement do not require the consent of any third party not previously obtained, and will not conflict with, or result in
any violation of, or default under, any provision of any governing instrument applicable to it, or any agreement or other instrument
to which it is a party or by which it or any of its properties are bound, or any provision of law, statute, rule or regulation,
or any ruling, writ, order, injunction or decree of any court, administrative agency or governmental body applicable to it; and

(iii)            
it is an “accredited investor” within the meaning of the Securities Act.

(c)               
USA PATRIOT Act Representations. This Agreement is made with each Limited Partner in
reliance upon each Limited Partner’s representation to the Partnership, that:

(i)                
Such Limited Partner is not a senior foreign political figure, or any “immediate family”
member or “close associate” of a “senior foreign political figure” within the meaning of the USA PATRIOT
Act of 2001, as such terms are defined below.

(ii)              
The proposed investment in the Partnership is being made by such Limited Partner on its own
behalf and on behalf of certain beneficial owners and neither such Limited Partner nor any such beneficial owner is a country,
territory, person, or entity named on a list maintained by the Federal regulations and Executive Orders administered by the U.S.
Treasury Department’s Office of Foreign Assets Control (“OFAC”), nor is the Limited Partner, nor any beneficial
owner, a person or entity with whom dealings are prohibited under any programs administered by OFAC.

(iii)            
For the purposes of this section: 

(A)               
a “senior foreign political figure” is defined as a senior official in
the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior
official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior
foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit
of, a senior foreign political figure.

(B)               
the “immediate family” of a senior foreign political figure typically includes
the figure’s parents, siblings, spouse, children and in-laws.

(C)               
a “close associate” of a senior foreign political figure is a person who
is widely and publicly known to maintain an unusually close relationship with the senior political figure, and includes a person
who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political
figure.

    	10

    	 

    

(d)              
Each Limited Partner who has disclosed to the Partnership in writing that it is not a citizen
or resident of the United States, an entity organized under the laws of the United States or a state within the United States or
an entity engaged in a trade or business within the United States, agrees to provide the Partnership with any information or documentation
necessary to permit the Partnership to fulfill any tax withholding or other obligation relating to the Partner, including, but
not limited to, any documentation necessary to establish the Partner’s eligibility for benefits under any applicable tax
treaty.

1.07           
Notices With Respect to Representations by Limited Partners.

If any representation
made by a Limited Partner in Sections 1.06(b) or 1.06(c) ceases to be true, then the Limited Partner will promptly
provide the Partnership with a correct separate written representation as provided in each such Section.

1.08           
Liability of Partners.

(a)               
The General Partner has the liability for the liabilities of the Partnership provided for
in the Act, including unlimited liability to third parties dealing with the Partnership for the repayment, satisfaction and discharge
of all losses, liabilities and expenses of the Partnership. Except as otherwise specifically provided in this Agreement, the General
Partner will not:

(i)                
be liable for the return of the Capital Contribution of any Partner; or

(ii)              
be obligated to restore by way of Capital Contribution or otherwise any deficits in the respective
Capital Accounts of the Limited Partners should such deficits occur.

(b)              
Except as otherwise provided under the Act (including, without limitation, Sections 17-303,
17-502 and 17-607 of the Act) and Section 5.10 of this Agreement, no Limited Partner will be liable in any event for any
loss, liability or expense whatsoever of the Partnership beyond the amount of its Capital Account.

(c)               
If a Limited Partner is required to return to the Partnership, for the benefit of creditors
of the Partnership whether pursuant to the Act or Section 5.10 of this Agreement, amounts previously distributed to the
Limited Partner, the obligation of the Limited Partner to return any such amount to the Partnership will be the obligation of the
Limited Partner and not the obligation of the General Partner. No Limited Partner will be liable under this Agreement for the obligations
under this Agreement of any other Partner.

1.09           
Purpose and Powers.

(a)               
The Partnership is organized solely for the purposes of (i) consummating the Acquisition,
including entering into the Asset Purchase Agreement and each of the Other Transaction Documents, (ii) owning the Purchased
Assets, (iii) entering into the License and Supply Agreement, (iv) entering into the Sublicense and Distribution Agreement and
(v) engaging in any other lawful act or activity that is ancillary or incidental to the foregoing. 

(b)              
The Partnership may not (i) raise capital from the Partners or make loans or borrow sums except
for in the event and in connection with an Extraordinary Event, (ii) establish a physical presence in the United States, including,
but not limited to, purchasing or leasing any interest in real estate, (iii) hire any employees or (iv) take any action that would
result in the Partnership establishing a permanent establishment in the United States for purposes of the Treaty.

    	11

    	 

    

(c)               
 The Partnership has all powers necessary, suitable or convenient for the accomplishment of
the purposes set forth in Sections 1.09(a), alone or with others, as a special agent, including the power to engage in any
lawful act or activity in which limited partnerships may engage under the Act consistent with the terms of this Agreement.

1.10           
Anti-Money Laundering Provisions. 

(a)               
Each Limited Partner hereby agrees to use it reasonable best efforts to ensure that to the
best of its knowledge:

(i)                
none of the monies that such Limited Partner will contribute to the Partnership shall be derived
from, or related to, any activity that is deemed criminal under United States law; and

(ii)              
no Capital Contribution or other payment by such Limited Partner to the Partnership, to the
extent such Capital Contribution or other payment is within such Limited Partner’s control, shall cause the Partnership,
the General Partner or any of their Affiliates to be in violation of the U.S. Bank Secrecy Act, the U.S. Money Laundering Control
Act of 1986 or the U.S. International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, in each case, as such
statute has been amended to date and any successor statute thereto and including all regulations promulgated thereunder (the “Anti-Money
Laundering Laws”).

(b)              
Each Limited Partner:

(i)                
shall promptly notify the General Partner if, to the knowledge of such Limited Partner, such
Limited Partner has made a Capital Contribution or other payment to the Partnership of money derived from, or related to, any activity
that is deemed criminal under United States law or that could cause the Partnership or any GP Affiliate to be in violation of the
Anti-Money Laundering Laws;

(ii)              
shall provide the General Partner, promptly upon receipt of the General Partner’s written
request therefor, with any additional information regarding such Limited Partner or its beneficial owners that the General Partner
deems necessary or advisable in order to determine or ensure compliance with all applicable laws, regulations and administrative
pronouncements concerning money laundering and other criminal activities; and

(iii)            
understands and agrees that if, at any time, such Limited Partner has made a Capital Contribution
or other payment to the Partnership of money derived from, or related to, any activity that is deemed criminal under United States
law or that could cause the Partnership or any GP Affiliate to be in violation of the Anti-Money Laundering Laws, or if otherwise
required by any applicable law or regulation related to money laundering or other criminal activities, the General Partner may
take appropriate actions to ensure that the Partnership or any GP Affiliate is in compliance with all such applicable laws, regulations
and pronouncements.

(c)               
Actions that may be taken by the General Partner in the circumstances described in Section
1.10(b) include, but are not limited to, the following:

(i)                
The General Partner, upon delivery of notice to that effect to the affected Limited Partner,
may “freeze” such Limited Partner’s interest in the Partnership and, in that event: (A) shall not permit the
Partnership to accept any additional Capital Contributions or other payments from such Limited Partner; (B) shall not draw down
any additional Capital Contributions from such Limited Partner so long as the interest is frozen; (C) shall not permit the Partnership
to allocate any items of Partnership income or gain to such Limited Partner’s Capital Account with respect to any fiscal
period commencing on or after the date of delivery of such notice (although the General Partner may cause the Partnership to continue
to allocate items of loss or expense to such Limited Partner’s Capital Account to the same extent as if, with respect to
such Limited Partner and through the date of the Partnership’s final liquidating distribution, such Limited Partner had timely
made all required Capital Contributions under this Agreement); or (D) shall not permit the Partnership to make any distributions
to such Limited Partner in respect of its frozen interest after the delivery of such notice other than liquidating distributions
pursuant to Section 6.02 in an amount equal to the positive balance in its Capital Account, after payment to each other
Partner of its final liquidating distribution in accordance with Section 6.02 and subject in all events to compliance with
applicable law.

    	12

    	 

    

(ii)              
The General Partner, subject to compliance with applicable law, may cause the Partnership
to redeem such Limited Partner’s interest using Partnership funds at a price equal to the lesser of (A) the aggregate Capital
Contributions of such Limited Partner, (B) the positive balance in such Limited Partner’s Capital Account as of the date
of delivery of the notice described in Section 1.10(c)(i), or (C) the fair market value of such interest (as determined
by the General Partner); provided, however, that the General Partner shall cause the Partnership to redeem such Limited Partner’s
interest at such other price, if any, as required by law, regulation or government order.

(iii)            
The General Partner may, in its sole discretion, agree in writing with any Limited Partner
that is itself subject to regulation under the Securities Exchange Act of 1934, as amended, the U.S. Bank Holding Company Act of
1956, as amended, or comparable non-U.S. laws and regulations, to alternate representations and covenants reasonably designed to
ensure compliance with applicable anti-money laundering and other criminal laws, regulations and administrative pronouncements,
and thereby expressly waive compliance with all or any part of this Section 1.10.

(d)              
Each Limited Partner acknowledges and agrees that (i) the Partnership or the General Partner
may release confidential information regarding such Limited Partner and, if applicable, any of its beneficial owners, to governmental
authorities if the General Partner, in its sole discretion, determines that releasing such information is required in order to
comply with all applicable Anti-Money Laundering Laws, and (ii) the General Partner, without the consent of any Limited Partner
and notwithstanding any other provision of this Agreement, may amend any provision of this Agreement in order to comply with all
applicable Anti-Money Laundering Laws, as reasonably determined by the General Partner in its sole discretion.

Article
II.

Management

2.01           
Authority of General Partner.

(a)               
Except as otherwise expressly provided herein, the management and operation of the Partnership
is vested exclusively in the General Partner. Except as otherwise provided herein, the General Partner shall exercise all powers
necessary and convenient to carry out the limited purposes of the Partnership set forth in Section 1.09, on behalf
and in the name of the Partnership, and other services of an auxiliary nature, which shall be limited to: 

(i)                
perform, or arrange for the performance of, actions contemplated in Section 1.09(a)
of this Agreement and administrative services necessary for the Partnership to maintain and preserve the Purchased Assets;

    	13

    	 

    

(ii)              
incur all reasonable expenditures permitted by this Agreement and, to the extent that funds
of the Partnership are available, pay all reasonable expenses, debts and obligations of the Partnership;

(iii)            
admit an assignee of all or any portion of a Limited Partner’s interest pursuant to
and subject to the terms of Section 8.01; and

(iv)            
make any reasonable election under federal, state and local tax laws. 

(b)              
Except as otherwise provided herein, the powers of the Partnership shall be exercised by the
General Partner. Decisions of the General Partner within its scope of authority shall be binding upon the Partnership. The General
Partner shall have full, exclusive and complete discretion, power and authority, subject to any other provisions of this Agreement
or by non-waivable provisions of applicable law, to manage, control, administer and operate the business and affairs of the Partnership,
and to make all decisions affecting such business and affairs. For the avoidance of doubt, the General Partner does not have the
power or authority to cause the Partnership to conduct, or represent that the Partnership is conducting, any business or activities
prohibited by the terms of this Agreement, including, without limitation, Sections 1.03 and 1.09.

(c)               
The Sale of the Partnership shall require the prior written consent of each of SWK and JK.

(d)              
The following actions and the entry into any of the transactions specified in this Section 2.01(d)
shall require the prior written consent of SWK:

(i)                
enter into any affiliated transaction or related party transaction with Mist or any Affiliate
of the GP or Mist after the Effective Date;

(ii)              
determine there is an Extraordinary Event and authorize any Partnership action with respect
thereto, including, without limitation, to raise capital from the Partners pursuant to Section 3.02 or make loans or borrow
sums or return or re-distribute such funds to the Partners; 

(iii)            
except as otherwise provided in Section 9.06, amend or modify this Agreement or any
other organizational document of the Partnership; and

(iv)            
the dissolution, winding-down, liquidation or termination of the Partnership and the approval
of any action which requires the approval of a Majority in Interest under Sections 6.02 and 6.04.

(e)               
The act of the General Partner in carrying on the business of the Partnership will bind the
Partnership.

(f)               
No provision of this Agreement shall be construed to preclude a GP Affiliate from engaging
in any activity whatsoever, including, without limitation, providing investment banking services to issuers of securities, managing
investments, participating in investments, brokerage or consulting arrangements or acting as an advisor to, director of, or participant
in, any corporation or partnership, limited liability company, trust or other business entity, or from receiving compensation therefor
or profit therefrom (in the form of cash, other securities or the right to acquire securities). 

    	14

    	 

    

2.02           
Authority of Limited Partners.

The Limited
Partners will take no part in the control of the business of the Partnership, and the Limited Partners will not have any authority
to act for or on behalf of the Partnership except as is specifically permitted by this Agreement or required by the Act. This Section
2.02 supersedes any authority granted to the Limited Partners pursuant to the Act. Any Limited Partner who takes any action
or binds the Partnership in violation of this Section 2.02 shall be solely responsible for any loss and expense incurred
by the Partnership as a result of the unauthorized action and shall indemnify and hold the Partnership and the General Partner
harmless with respect to the loss or expense.

2.03           
Expenses. 

The Partnership
will pay all reasonable costs, expenses, liabilities and obligations relating to the activities, investments and business of the
Partnership, including, without limitation, the following expenses (collectively, the “Operating Expenses”):

(a)               
all reasonable costs and expenses of the Partnership, the General Partner or their respective
partners, members, managers, officers or employees, attributable to or related to sourcing, identifying, evaluating, negotiating,
documenting and executing the Acquisition and the transactions with Mist, including administration, travel, legal, accounting,
auditing, consulting, brokerage and other reasonable fees and expenses, financing commitment fees, transfer taxes, and costs related
to the registration or qualification of securities;

(b)              
all interest and expenses payable by the Partnership on any indebtedness incurred by the Partnership;

(c)               
taxes, fees, and other governmental charges levied against the Partnership;

(d)              
all reasonable expenses incurred in the holding, maintenance or disposition of the Purchased
Assets;

(e)               
all reasonable legal, insurance (including any insurance as contemplated in Section 2.05(i)),
consulting, accounting and auditing, and similar expenses related to the Purchased Assets;

(f)               
all reasonable litigation expenses related to the Purchased Assets;

(g)               
all unreimbursed out-of-pocket fees and expenses incurred by the Partnership, the General
Partner or its respective partners, members, managers, officers or employees in connection with any conference or meeting of the
Limited Partners or any reporting to or communications with the Limited Partners; and

(h)              
all Organizational Costs.

2.04           
Standard of Care.

(a)               
No Covered Person will be liable to the Partnership or any Partner for any action taken or
omitted to be taken by it or any other Partner or other Person in good faith and in a manner reasonably believed to be in or not
opposed to the best interests of the Partnership, except in the case of such Covered Person’s own willful misconduct, gross
negligence or intentional and material breach of this Agreement.

    	15

    	 

    

(b)              
Any Covered Person may consult with independent legal, accounting or other professional advisor
selected by it and will be fully protected, will incur no liability to the Partnership or any Partner, and shall be conclusively
presumed to have acted in good faith, in acting or refraining to act in good faith in reliance upon the opinion or advice of such
counsel or advisor, and any such action or refraining to act shall be conclusively presumed not to constitute willful misconduct
or gross negligence of such Person or an intentional and material breach of this Agreement by such Person.

(c)               
In addition to the standards of care stated in this Section, this Agreement may also provide
for additional (but not alternative) standards of care for Covered Persons that must also be met.

(d)              
Each Covered Person may rely and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other
paper or document reasonably believed by it to be genuine and to have been signed or presented by the proper party or parties,
and in so relying shall be conclusively presumed to have acted in good faith and not to have acted or refrained from acting in
a manner constituting willful misconduct, gross negligence or an intentional and material breach of this Agreement.

2.05           
Indemnification.

(a)               
Subject to Section 2.05(c), the Partnership shall, and hereby does, to the fullest
extent permitted by applicable law, indemnify and hold harmless each Covered Person from any and all Indemnifiable Costs that may
be incurred by or asserted against such Person, by reason of any action taken or omitted to be taken on behalf of the Partnership
or otherwise arising out of or in connection with the Acquisition or the Purchased Assets.

(b)              
Subject to Section 2.05(c), the Partnership has the power, in the discretion of
the General Partner, to indemnify or agree to indemnify on the same terms and conditions applicable to persons indemnified under
Section 2.05(c), any Person who is or was serving, at the request of the General Partner or the Partnership, as a consultant
to, agent for or representative of the Partnership as a director, manager, officer, employee, agent of or consultant to another
corporation, partnership, limited liability company, joint venture, trust or other enterprise, against any Indemnifiable Cost asserted
against such Person and incurred by the Person in any such capacity, or arising out of the Person’s status as such. 

(c)               
No Person may be entitled to claim any indemnity or reimbursement under Sections 2.05(a)
or (b) in respect of any Indemnifiable Cost that may be incurred by such Person that results from the failure of the
Person to act in accordance with the applicable standard of care stated in Section 2.05. The termination of any action,
suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, will not, of
itself, preclude a determination that such Person acted in accordance with the applicable standard of care stated in Section 2.05.

(d)              
The Partnership shall pay any expenses incurred by any Covered Person in respect of any Indemnifiable
Cost (and may pay the expenses incurred by any other Person in respect of any Indemnifiable Cost) before the final disposition
of any such claim or action upon receipt of an undertaking by or on behalf of such Person to repay such amount if it is ultimately
determined that such Person is not entitled to be indemnified by the Partnership as authorized in this Section.

(e)               
The rights provided by this Section will inure to the benefit of the heirs, executors, administrators,
successors, and assigns of each Person eligible for indemnification under this Agreement.

(f)               
The rights to indemnification of Covered Persons provided in this Section shall not be exclusive
of any other right that a Covered Person or other Person indemnified under this Section 2.05 may have or hereafter acquire
under law (common or statutory), under any provision of this Agreement or under any other agreement providing for indemnification
to such Covered Person or other Person. 

    	16

    	 

    

(g)               
The Partnership may enter into an agreement with any Covered Person providing for indemnification
of any such Covered Person for matters covered by this Section 2.05. 

(h)              
The provisions of this Section do not apply to indemnification of any Person that is not at
the expense (whether in whole or in part) of the Partnership. 

(i)                
The Partnership may purchase and maintain insurance on its own behalf, or on behalf of any
Covered Person or other Person, with respect to liabilities of the types described in this Section. The Partnership may purchase
such insurance regardless of whether the Person is acting in a capacity described in this Section or whether the Partnership would
have the power to indemnify the Person against such liability under the provisions of this Section.

Article
III.

Partner’s Capital Contribution

3.01           
Capital Contributions.

Each Partner has
made, or shall make upon demand by the General Partner, the Capital Contribution set forth opposite such Partner’s name on
the Partner Schedule. All Capital Contributions to the Partnership must be in cash. No Partner shall be required to make any additional
Capital Contribution to the Partnership.

3.02           
Preemptive Rights.

(a)               
If it is determined in accordance with this Agreement that there is an Extraordinary Event
and based upon the capital needs of the Partnership, the Partnership shall (x) accept additional Capital Contributions from existing
Partners and/or Persons to be admitted as new Partners (an “Equity Financing”) or (y) accept loans from, or
otherwise issue debt securities to, existing Partners (a “Partner Debt Financing” and, in either case, a “Capital
Call”), then the Partnership shall offer to each Partner (other than Excluded Partners, as defined below) by written
notice from the General Partner (describing in reasonable detail the Capital Call, the payment terms, such Partner’s Proportional
Share and the intended use of proceeds) (the “Participation Notice”) a right to participate in such Capital
Call in an amount equal to the Capital Call amount multiplied by such Partner’s Partner Percentage (such Partner’s
“Proportional Share”); provided, that no Partner who is not an “accredited investor” (any
such Partner, an “Excluded Partner”) shall have any rights under this Section 3.02. Each such Partner
(other than Excluded Partners) shall be entitled to participate in the Capital Call on the same terms as any other Person, including,
as applicable, the class or series of Partner interests and/or notes or other debt securities (in either case, “New Securities”)
to be issued in exchange for such Partner’s participation in such Capital Call. If the full amount of the Capital Call offered
to the Partners hereunder is not fully subscribed by such Partners, the unsubscribed amount of the Capital Call shall be allocated
to the Partners participating in their full Proportional Share and indicating in their notice to the General Partner pursuant to
Section 3.02(b) a desire to participate in any portion of the Capital Call that remains available because of under
subscription or otherwise in accordance with an agreement among such Partners.

(b)              
In order to exercise its rights this Section 3.02, a Partner must within ten (10) Business
Days of receipt of the Participation Notice deliver a written notice to the General Partner irrevocably exercising its rights to
participate in the Capital Call (including the extent, subject to any maximum dollar amount specified therein, to which such Partner
elects to participate in excess of its Proportional Share available if the Capital Call is not fully subscribed by the other Partners
based on their respective Proportional Shares).

    	17

    	 

    

(c)               
Upon the expiration of the offering periods described above, the Partnership may proceed with
such Equity Financing and/or Partner Debt Financing and to issue and sell any related New Securities to the participating Partners
and, in the case of an Equity Financing, to Persons to be admitted as new Partners (to the extent the then existing Partners have
not elected to purchase all of the New Securities), during the ninety (90) calendar days following such expiration on substantially
the same terms and conditions and, in any event, no more favorable in the aggregate to the participants therein than that offered
to such Partners. Any Equity Financing or Partner Debt Financing to be conducted by the Partnership (and New Securities to be offered
or sold by the Partnership ) other than in accordance with such terms or after such 90-day period must be reoffered to the Partners
pursuant to the terms of this Section 3.02.

Article
IV.

Allocations of Profits and Losses; Capital Accounts

4.01           
Capital Accounts. 

The Partnership
will establish and maintain a separate Capital Account for each Partner in accordance with Code Section 704 and Treasury Regulations
Section 1.704-1(b)(2)(iv). Without limiting the generality of the foregoing, a Partner’s Capital Account will generally be
computed as follows:

(a)          Increased
by (i) the amount of cash contributed to the Partnership by such Partner as a Capital Contribution (including the amount of any
Partnership liabilities that are assumed by such Partner other than in connection with distribution of Partnership property), if
applicable; (ii) the fair market value (net of liabilities that the Partnership is considered to assume or take subject to under
Section 752 of the Code) of any property (other than cash) contributed to the capital of the Partnership by such Partner, if applicable;
(iii) the amount of any Profits allocated to such Partner pursuant to Section 4.05 and (iv) the amount of income or gain
allocated to such Partner pursuant to the regulatory allocations listed in Section 4.07.

(b)          Decreased
by (i) the amount of any cash distributed to such Partner, (ii) the fair market value (net of liabilities that such Partner is
considered to assume or take subject to under Section 752 of the Code) of any property (other than cash) distributed to such Partner,
(iii) the amount of Losses allocated to such Partner pursuant to Section 4.05 and (iv) the amount of loss or deductions
allocated to such Partner pursuant to the regulatory allocations listed in Section 4.07.

4.02           
Compliance with Treasury Regulations Section 1.704-1(b). 

The foregoing provisions
and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Treasury
Regulations Section 1.704-1(b), and will be interpreted and applied in a manner consistent with such Treasury Regulations. In the
event the General Partner determines that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits
thereto, are computed in order to comply with such Treasury Regulations, the General Partner may make or cause to be made such
modification.

4.03           
Negative Capital Accounts. 

No Partner shall
be required to pay to any other Partner or the Partnership any deficit or negative balance which may exist from time to time in
such Partner’s Capital Account (including upon and after dissolution of the Partnership). No Partner shall have an obligation
to restore a deficit in such Partner’s Capital Account.

    	18

    	 

    

4.04           
Transfer of Capital Accounts. 

Except as otherwise
expressly provided herein, in the event all or a portion of an interest in the Partnership is Transferred in accordance with the
terms of this Agreement, the transferee will succeed to the Capital Account of the transferring Partner to the extent it relates
to the transferred interest in the Partnership (or portion thereof).

4.05           
Allocation of Profits and Losses. 

Except as otherwise
provided in Section 4.07, and after adjusting for all Capital Contributions and distributions made during a Fiscal Year,
Profits and Losses shall be allocated annually (and at such other times in which it is necessary to allocate Profits and Losses)
by the Partnership in a manner such that, after such allocations have been made, the balance of each Partner’s Capital Account
shall, to the extent possible, be equal to (I) an amount that would be distributed to such Partner if (a) the Partnership were
to sell its assets for their Gross Asset Values, (b) all Partnership liabilities were satisfied (limited with respect to each nonrecourse
liability to the Gross Asset Values of the assets securing such liability), (c) the Partnership were to distribute the proceeds
of sale pursuant to Article V, and (d) the Partnership were to dissolve pursuant to Article VI, minus (II) the sum
of (i) such Partner’s share of Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain, and (ii) the amount, if
any, that such Partner is obligated (or deemed obligated) to contribute, in its capacity as a Partner, to the Partnership, computed
immediately prior to the hypothetical sale of assets.

4.06           
Effect of Change or Transfer in Partner Percentages.

(a)          If a Partner
Percentage is changed pursuant to the terms of this Agreement during any Fiscal Year, the amount of Profits and Losses to be allocated
to the Partners for such entire Fiscal Year will be allocated to the portions of such Fiscal Year which precede or follow the date
of such change, in proportion to the number of days in each such portion.

(b)          If a Transfer
occurs during any Fiscal Year, the amount of Profits and Losses for such Fiscal Year allocable to such transferred interest will
be allocated to the transferor and transferee Partners in proportion to the number of days each of the transferor and transferee
held such transferred interest during such Fiscal Year; provided, that the transferor and transferee Partners may elect to allocate
Profits and Losses in accordance with an interim closing of the books as permitted under Section 706 of the Code if the transferor
and transferee bear all costs of such allocation.

4.07           
Tax and Regulatory Allocations. 

Notwithstanding
anything to the contrary in the other provisions of this Article IV:

(a)          In the event
there is a net decrease in Partnership Minimum Gain during any Fiscal Year, the “minimum gain chargeback” described
in Treasury Regulations Section 1.704-2(f) and Treasury Regulations Section 1.704-2(g) shall apply.

(b)          In the event
there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any Fiscal Year, the “partner minimum gain chargeback”
described in Treasury Regulations Section 1.704-2(i)(4) shall apply.

    	19

    	 

    

(c)          This Section
4.07(c) incorporates the “qualified income offset” set forth in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)
as if those provisions were fully set forth in this Section 4.07(c).

(d)          If, following
the tentative allocation of Profits or Losses pursuant to Section 4.05, any Partner would otherwise have an Adjusted Capital
Account Deficit as of the last day of any Fiscal Year, which is in excess of the amount (if any) such Partner is obligated to restore
or is deemed to be obligated to restore (whether under this Agreement or otherwise, and including for this purpose, without limitation,
such Partner’s share of Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain), then items of income and gain
(consisting of a pro rata portion of each item of income or gain) of the Partnership shall be specially allocated to such Partner
so as to eliminate such excess as quickly as possible.

(e)          Nonrecourse
Deductions for any Fiscal Year shall be allocated to the Partners pro rata in proportion to their Partner Percentages.

(f)          The Partner
Nonrecourse Deductions of the Partnership (as determined under Treasury Regulations Section 1.704-2(i)(2)) shall be allocated each
year to the Partner that bears the economic risk of loss (within the meaning of Treasury Regulations Section 1.752-2) with respect
to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable.

(g)          To the extent
an adjustment to the adjusted tax basis of any Partnership asset, pursuant to Code Sections 734(b) or 743(b) is required, pursuant
to Treasury Regulations Sections 1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital
Accounts as a result of a distribution to a Partner in complete liquidation of its interest in the Partnership, the amount of such
adjustment to Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss
(if the adjustment decreases such basis) and such gain or loss shall be specifically allocated to the Partners in accordance with
their Partner Percentages (in the event Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies) or to the Partner to whom
such distribution was made (in the event Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies).

(h)          To the extent
that any allocation of Losses pursuant to Section 4.05 will cause or increase a Partner’s Adjusted Capital Account
Deficit, such portion of such Losses shall be allocated among the Partners with positive Capital Account balances, pro rata in
accordance with their positive Capital Account balances. For purposes of this Section 4.07(h), a Partner’s Capital
Account shall be reduced for the items described in Treasury Regulations Section 1.704-1(b)(2)(ii)(d)(4), (5) and (6). If Losses
are allocated to the Partners under this Section 4.07(h) in any Fiscal Year, then notwithstanding Section 4.05, Profits
shall first be allocated to the Partners who were allocated such Losses to the extent of, in proportion to, and in the reverse
order in which such Losses were allocated to them under this Section 4.07(h) until the cumulative amount of Profits
allocated to each Partner pursuant to this Section 4.07(h) is equal to the cumulative amount of Losses so allocated
to such Partner.

(i)          Any noncash
items of Profits or Losses shall be allocated pursuant to Section 4.05 as if such noncash items were distributable pursuant
to Article V.

4.08           
Gross Asset Value Adjustments. 

In the case of any
Partnership asset for which its Gross Asset Value differs from its adjusted tax basis for United States federal income tax purposes,
income, gain, loss and deduction with respect to such asset shall be allocated for United States federal income tax purposes, as
reasonably determined by the General Partner, in accordance with the principles of Sections 704(b) and (c) of the Code so as to
take account of the difference between Gross Asset Value and adjusted tax basis of such asset.

    	20

    	 

    

4.09           
Consistency. 

No Partner shall
treat an item on such Partner’s United States federal income tax return in a manner that is inconsistent with the treatment
of such item on the Partnership's United States federal income tax return, unless such Partner has, not less than 30 days prior
to the filing of a notice of inconsistent treatment with the IRS pursuant to Section 6222(b) of the Code, provided the General
Partner with a copy of the notice and thereafter in a timely manner provided such other information related thereto as the General
Partner shall reasonably request.

4.10           
Other Allocation Matters.

(a)          Subject to
Sections 4.06(b) and 4.07, Profits and Losses shall be allocated to the Partners pursuant to this Article IV
as of the last day of each Fiscal Year; provided that Profits, Losses and such other items of income, loss, deduction or credit
resulting from or relating to an adjustment in the Gross Asset Value of Partnership property shall be allocated at such times as
the Gross Asset Values of Partnership property are adjusted pursuant to the definition of “Gross Asset Value.”

(b)          All items
of Partnership income, gain, loss, deduction and credit for federal and applicable state and local income tax purposes shall be
allocated among the Partners in the same manner as they share correlative allocation of such items for purposes of maintaining
Capital Accounts.

(c)          Pursuant
to Treasury Regulations Section 1.1245-1(e), to the extent the Partnership recognizes gain as a result of a sale, exchange or other
disposition of Partnership assets which is taxable as ordinary income under Code Section 1245 or Code Section 1250, such ordinary
income shall be allocated among the Partners in the same proportion as the Depreciation giving rise to such ordinary income was
allocable among the Partners. In no event, however, shall any Partner be allocated ordinary income hereunder in excess of the amount
of gain allocated to such Partner under this Agreement. Any ordinary income that is not allocated to a Partner due to the gain
limitation described in the previous sentence shall be allocated among those Partners whose shares of total gain on the sale, exchange
or other disposition of the property exceed their share of Depreciation giving rise to such ordinary income, in proportion to their
relative shares of the total allocable gain.

(d)          Tax credits
and tax credit recapture and any similar items shall be allocated among the Partners in a manner determined by the General Partner;
provided such allocation is in compliance with applicable law (including, without limitation, Treasury Regulations Section 1.704-1(b)(4)(ii)).

4.11           
Allocation of Nonrecourse Liabilities. 

The Partners’
shares of Nonrecourse Liabilities shall be determined in accordance with rules of Treasury Regulations Section 1.752-3. “Excess
nonrecourse liabilities” (as that term is defined in Treasury Regulations Section 1.752-3(a)(3)) shall be allocated among
the Partners in accordance with their respective Partner Percentages.

4.12           
Tax Reporting. 

The Partners acknowledge
and are aware of the income tax consequences of the allocations made pursuant to this Article IV and, except as may otherwise
be required by applicable law or regulatory requirements, hereby agree to be bound by the provisions of this Article IV
in reporting their shares of Partnership income, gain, loss, deduction and credit for federal, state and local income tax purposes.

    	21

    	 

    

4.13           
Partnership for Tax Purposes. 

The Partners agree
that the Partnership will be treated as a partnership for purposes of United States federal, state and local income tax laws and
further agree not to take any position or any action or to make any election (or cause the Partnership to make any election) inconsistent
with such treatment. The Partnership shall not file any election pursuant to Treasury Regulations Section 301.7701-3(c) to be treated
as an entity other than a partnership. The Partnership shall not elect, pursuant to Code Section 761(a), to be excluded from the
provisions of subchapter K of the Code.

4.14           
Preparation of Tax Returns. 

The Partnership
will (and will cause its Subsidiaries to) arrange for the preparation and timely filing of all tax returns required to be filed
by the Partnership and its Subsidiaries. Each Partner will be responsible for the preparation and filing of its own United States
federal, state and local and foreign tax returns. The Partnership shall engage a tax preparation firm to advise and assist
the Partnership with the preparation and filing of all federal, state, local and foreign tax filings for and on behalf of the Partnership.

4.15           
Tax Elections.

(a)          Except as
otherwise provided in this Agreement, all elections by the Partnership for income and franchise tax purposes and all determinations
for tax purposes regarding the fair market value of any of the Partnership’s assets, book basis, Depreciation and all other
matters relating to all tax returns (including amended returns) filed by the Partnership, including tax audits and related matters
and controversies, will be made and conducted by the Tax Matters Partner (as defined below) in consultation with, and subject to
the approval of, the Limited Partners. Each Partner will upon request supply promptly any information necessary to give proper
effect to any election made by the Partnership.

(b)          The Tax Matters
Partner may, in its discretion and subject to Section 4.15(a), cause the Partnership to make a timely election under
Section 754 of the Code (and a corresponding election under state and local law), (i) in the event of a Transfer of an interest
in the Partnership as permitted hereunder, provided that the Tax Matters Partner has received a written request to do so from the
transferor or transferee of such interest, and (ii) in the event of a distribution of property to a Partner. If the Partnership
elects under Code Section 754 to adjust the basis of Partnership property under Code Section 734(b) and Section 743(b), (i) the
General Partner shall make such adjustments to the definition of Gross Asset Value and Profits and Losses, and to the special allocations
required by Section 4.07 hereof as are necessary to carry out the provisions of Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(2)
and 1.704-1(b)(2)(iv)(m)(4); and (ii) a Partner who acquires interests in the Partnership shall furnish to the General Partner
such information as the General Partner shall reasonably request to enable it to compute the adjustments required by Code Section
755 and the Treasury Regulations thereunder.

(c)          The Tax Matters
Partner will, on the first federal income tax return of the Partnership, make an election under Section 6231(a)(1)(B)(ii) of the
Code to have the TEFRA audit provisions of subchapter C of chapter 23 of the Code apply to the Partnership.

4.16           
Tax Matters Partner. 

The General Partner
is hereby designated the “Tax Matters Partner” for purposes of Code Section 6231(a)(7). In the event that the General
Partner is unavailable or unwilling to be the Tax Matters Partner, or is not eligible to be the Tax Matters Partner under Code
Section 6231 and the Treasury Regulations promulgated thereunder, the General Partner will appoint another Partner as the Tax Matters
Partner. All decisions of the Tax Matters Partner shall be subject to consultation with the Limited Partners. The Tax Matters Partner
shall, promptly upon receipt thereof, forward to the Limited Partners a copy of any correspondence relating to the Partnership
received from the Internal Revenue Service or any other tax authority which related to matters that are of material importance
to the Partnership and/or the Limited Partners. The Tax Matters Partner will on a timely basis keep all Partners fully informed
of the progress of any examinations, audits or other proceedings, and all Partners will have the right to participate in any such
examinations, audits or other proceedings. The Tax Matters Partner will not settle or otherwise compromise any issue in any such
examination, audit or other proceeding which is materially adverse to the Limited Partners without first obtaining the approval
of the respective Limited Partner, which consent may not be unreasonably withheld. Expenses incurred by the Tax Matters Partner
shall be borne by the Partnership. Such expenses shall include, without limitation, fees of attorneys and other tax professionals,
accountants, appraisers and experts, filing fees and reasonable out-of-pocket costs.

    	22

    	 

    

4.17           
Other Partner Obligations. 

Promptly upon request,
each Partner shall provide the Tax Matters Partner with any information related to such Partner necessary to (i) allow the Partnership
to comply with any tax reporting, tax withholding or tax payment obligations of the Partnership or (ii) establish the Partnership’s
legal entitlement to an exemption from, or reduction of, withholding tax, including federal withholding tax under Sections 1471
and 1472 of the Code.

4.18           
Reportable Transactions. 

The Partnership
will use commercially reasonable efforts to not engage in any transaction that, as of the date the Partnership enters into a binding
contract to engage in such transaction, is a “reportable transaction” as defined in Treasury Regulations Section 1.6011-4(b).
The Partnership will promptly notify the Partners if it becomes aware that a transaction is a “reportable transaction.”

Article
V.

Distributions

5.01           
Distributions to Partners. All liquid assets of the Partnership, including
royalty payments received in connection with Product sales and all other proceeds of the Partnership, less an amount reasonably
determined by the General Partner to cover Operating Expenses, shall be distributed no less frequently than quarterly to the Partners,
pro rata in accordance with their respective Partner Percentages. For the avoidance of doubt, no proceeds raised by the Partnership
to fund any Extraordinary Event shall be distributed to the Partners unless and until it is determined in accordance with this
Agreement that such proceeds no longer are necessary to fund such Extraordinary Event. 

5.02           
Distributions of Noncash Assets in Kind. 

(a)               
Subject to the provisions of this Section 5.02, the Partnership at any time may
distribute Noncash Assets in kind.

(b)              
Any distribution of Noncash Assets will be made pro rata among the Partners (based upon the
respective amounts which each Partner would be entitled to receive if the distribution were made in cash) with respect to the distribution
of each Noncash Asset. 

    	23

    	 

    

(c)               
Noncash Assets distributed in kind under this Section 5.02 will be subject to
such conditions and restrictions as the General Partner determines are legally required or are appropriate to assure compliance
by the Partners and/or the Partnership with the requirements of the Securities Act, including, without limitation, such conditions
and restrictions as the General Partner determines are required to assure compliance by the Partners and the Partnership with the
aggregation rules and volume limitations under Rule 144.

5.03           
Distributions for Payment of Tax/Withholdings.

Notwithstanding
any other provision of this Agreement to the contrary, each Partner hereby authorizes the Partnership to withhold and to pay over,
or otherwise pay, any withholding or other taxes payable by the Partnership with respect to such Partner (or any assignee of, or
successor-in-interest to, such Partner) as a result of such Partner’s participation in the Partnership. If and to the extent
that the Partnership shall be required to withhold or pay any such taxes, then such Partner shall be deemed for all purposes of
this Agreement to have received a payment from the Partnership as of the time such withholding or tax is required to be paid, which
payment shall be deemed to be a distribution with respect to such Partner’s interest in the Partnership under Article
V to the extent that the Partner is entitled to receive a distribution and shall be taken into account in determining the amount
of future distributions to such Partner. Each Partner hereby authorizes the General Partner to seek reimbursement of such payment
or reduce future distributions. To the extent that the aggregate of such payments to a Partner for any period exceeds the distributions
to which such Partner is entitled for such period, the Partner shall contribute to the Partnership the amount by which such payments
exceed the distributions to which such Partner is entitled for such period. To the extent that the Partner does not promptly repay
such amounts, the amount of such excess shall be considered a demand loan from the Partnership to such Partner, with interest at
an interest rate of 6% compounded annually, which interest shall be treated as an item of Partnership income until discharged by
such Partner by repayment, which may be made in the sole discretion of the General Partner out of distributions to which such Partner
would otherwise be subsequently entitled. The withholdings referred to in this Section 5.03 shall be made at the maximum
applicable statutory rate under applicable tax law unless the General Partner receives documentation, satisfactory to the General
Partner, to the effect that a lower rate is applicable, or that no withholding is applicable.

5.04           
Tax Withholding Certificate. 

If requested by
the General Partner, each Partner shall, if able to do so, deliver: (i) an affidavit in form satisfactory to the General Partner
that the applicable Partner (or its partners or members, as the case may be) is not subject to withholding under the provisions
of any United States federal, state, local, foreign or other law; (ii) any certificate that the General Partner may reasonably
request with respect to any such laws; and/or (iii) any other form or instrument reasonably requested by the General Partner relating
to any Partner’s status under such law. If a Partner fails or is unable to deliver to the General Partner an affidavit described
in sub-clause (i) above, the General Partner may withhold amounts from such Partner in accordance with Section 5.03.
Each Partner shall reasonably cooperate with the General Partner in connection with any tax audit of the Partnership.

5.05           
Indemnity. 

Each Partner shall,
to the fullest extent permitted by applicable law, indemnify and hold harmless the Partnership and the General Partner for United
States federal, state, local or foreign tax purposes against all claims, liabilities and expenses of whatever nature (including
interest and penalties) relating to the Partnership’s or the General Partner’s obligation to withhold and to pay over,
or otherwise pay, any withholding or other taxes payable by the Partnership with respect to such Partner or as a result of such
Partner’s participation in the Partnership, unless, in each case where any claim, liability or expense is found by a final
decision by a court of competent jurisdiction to result from the General Partner’s own fraud, bad faith, gross negligence,
willful misconduct, material and knowing violation of applicable laws which has a material adverse effect on the business of the
Partnership or a material breach of the performance of the General Partner’s obligations under this Agreement which has a
material adverse effect on the business of the Partnership.

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5.06           
Refunds of Withholding Taxes. 

In the event that
the Partnership receives a refund of taxes previously withheld by a third party from one or more payments to the Partnership, the
economic benefit of such refund shall be apportioned among the Partners in accordance with Section 5.01.

5.07           
Tax Cooperation. 

Upon request, the
Partnership shall provide commercially reasonable assistance with respect to (i) any claim for benefits by a Partner under
an applicable tax treaty or any exemption from or reduction in taxes with respect to its investment in the Partnership (including,
but not limited to, (a) filing any forms or applications necessary to obtain any exemptions from or reductions in taxes to the
extent the Partnership is required to make such filings under applicable law, and (b) providing the Partners with such other information
or documentation as is available to the Partnership and is relevant to the Partners’ application for a tax refund) and (ii)
any tax returns that are required to be filed by a Partner as a result of its investment in the Partnership.

5.08           
Distributions Violative of the Act Prohibited.

Anything contained
in this Agreement to the contrary notwithstanding, no distribution may be made by the Partnership if and to the extent that such
distribution would violate Section 17-607 of the Act.

5.09           
Offset.

Whenever the Partnership
is to distribute or otherwise pay any sum to any Partner, any amounts that such Partner owes to the Partnership may be deducted
from that sum before payment; provided, that the full amount that would otherwise be distributed shall be debited from the
Partner’s Capital Account pursuant to Section 4.01.

5.10           
Return of Previously Distributed Amounts.

Notwithstanding
any other provision of this Agreement, the General Partner, in its sole discretion, may at any time, whether during or after the
Partnership Term, require a Partner (including any former Partner) to return distributions made to such Partner pursuant to Article V
or Article VI for the purpose of satisfying such Partner’s pro rata share of Operating Expenses (it being understood
that the General Partner shall use its reasonable efforts to reserve for expected Operating Expenses) and of the Partnership’s
indemnification obligations under Section 2.05; provided, that no Partner (including any former Partner) shall
be required to return distributions made to such Partner pursuant to Article V or Article VI in excess
of the lesser of (a) 20% of the aggregate distributions made to such Partner pursuant to Article V or Article VI
and (b) the amount of such Partner's Capital Contribution.

    	25

    	 

    

Article
VI.

Dissolution, Liquidation, Winding Up and Withdrawal

6.01           
Dissolution.

(a)               
The Partnership will be dissolved upon the first to occur of the following: 

(i)                
subject to Section 6.04 of this Agreement, an event of withdrawal or the removal
of the General Partner (as defined in Section 17-101(3) of the Act);

(ii)              
the approval of the General Partner and the prior written consent of SWK to dissolve, windup
and liquidate the Partnership;

(iii)            
the entry of a decree of judicial dissolution under Section 17-802 of the Act; or

(iv)            
at such time as there are no Limited Partners, unless the business of the Partnership is continued
in accordance with the Act.

(b)              
The Partnership will not dissolve upon the withdrawal, dissolution, bankruptcy, death or adjudication
of incompetency or insanity of any Limited Partner.

6.02           
Winding Up.

(a)               
Subject to Section 6.04, when the Partnership is dissolved, the property and business
of the Partnership will be liquidated by the General Partner or if there is no General Partner or the General Partner is unable
to act, a Person designated by a Majority in Interest. The General Partner or such designated Person shall be responsible for overseeing
the winding up of the Partnership. The assets of the Partnership shall be liquidated only to the extent determined to be appropriate
by the General Partner or such designated Person, in accordance with Section 2.01 of this Agreement. Upon the dissolution
of the Partnership, the Partnership shall conduct only such activities as are necessary to wind up its affairs in an orderly manner,
liquidate its assets and satisfy the claims of its creditors and Partners. No Partner shall take any action that is inconsistent
with, or not necessary or appropriate for, the winding up of the Partnership’s business or affairs. 

(b)              
Within one hundred eighty (180) days (and subject to the requirements of Treasury Regulations
§§ 1.704-1(b)(ii)(g) and 1.704-1(b)(2)(ii)(b)(2)) after the effective date of dissolution of the Partnership, the
affairs of the Partnership will be wound up and the Partnership’s assets will be distributed in the following manner and
order:

(i)                
The claims of all creditors of the Partnership who are not Partners shall be paid and discharged
or adequately reserved against;

(ii)              
The claims of all creditors of the Partnership who are Limited Partners (other than claims
for distributions hereunder) shall be paid and discharged or adequately reserved against;

(iii)            
The claims of any creditor of the Partnership who is a General Partner (other than claims
for distributions hereunder) shall be paid and discharged or adequately reserved against; and

(iv)            
Any assets remaining shall be distributed to the Partners in accordance with Section 5.01.

    	26

    	 

    

In the event that
the foregoing order of distribution is not permitted by the Act, distributions shall be made as permitted therein.

6.03           
Death or Disability of a Natural Person Limited Partner.

If a natural person
Limited Partner shall die or become incapacitated, his Legal Representative shall be substituted as a Limited Partner, subject
to all the terms and conditions of this Agreement.

6.04           
Withdrawal of the General Partner.

(a)               
Upon the occurrence of an event of withdrawal (as defined in the Act) of the General Partner
that results in there being no General Partner, the Partnership shall not be dissolved, if, within ninety (90) days after such
event of withdrawal of such General Partner, a Majority in Interest agree in writing to continue the business of the Partnership
and to the appointment, effective as of the date of withdrawal of the General Partner, of one or more additional General Partners.

(b)              
Upon the occurrence of an event of withdrawal of the General Partner that results in there
being no General Partner, without continuation of the Partnership as provided above, the affairs of the Partnership shall be wound
up in accordance with the provisions of Section 6.02.

(c)               
Except as provided in Sections 6.04(a) and 8.01, any Person who acquires
the interest of the General Partner, or any portion of such interest, in the Partnership, will not be a General Partner but will
become a special limited partner (a “Special Limited Partner”) upon his written acceptance and adoption of all
the terms and provisions of this Agreement. Such Person will acquire no more than the interest of the General Partner in the Partnership
as it existed on the date of the transfer. No such Person will have any right to participate in the management of the affairs of
the Partnership or to vote with the Limited Partners, and the interest acquired by such Person will be disregarded in determining
whether any action has been taken by any percentage of the limited partnership interests.

6.05           
Withdrawals of Limited Partners.

No withdrawal or
partial withdrawal of any Limited Partner from the Partnership (as opposed to an assignment as contemplated by Section 8.01)
shall be permitted.

6.06           
Amounts Reserved and Pending Claims. 

(a)               
If there are any assets which, in the judgment of the General Partner, cannot be sold, or
be properly distributed in kind in the case of dissolution of the Partnership or withdrawal or retirement of a Partner, without
sacrificing a significant portion of the value thereof, the value of a Partner’s interest in each separate group of such
assets may be excluded from such Partner’s Capital Account for purposes of computing a Partner’s distributive share
or amount to be paid to such Partner in connection with such Partner’s retirement. Any Partner’s interest, including
its pro rata interest in any gains, losses or distributions, in assets so excluded, shall not be paid or distributed until such
time as the General Partner shall determine. 

(b)              
If there is any pending transaction or claim by or against the Partnership as to which the
interest or obligation of any Partner therein cannot, in the judgment of the General Partner, be then ascertained, then the estimated
Value thereof or probable loss therefrom may be excluded from the valuation of assets for purposes of determining such Partner’s
distributive share or amount to be paid to such Partner in connection with such Partner’s retirement. No amount shall be
paid or charged to any such Partner or its Legal Representative on account of any such transaction or claim until its final settlement
or such earlier time as the General Partner shall reasonably determine. The Partnership may meanwhile retain from other sums due
such Partner or its Legal Representative an amount which the General Partner reasonably estimates to be sufficient to cover the
share of such Partner in any probable loss or liability on account of such transaction or claim. 

    	27

    	 

    

(c)               
Upon determination by the General Partner that circumstances no longer require the exclusion
of assets or retention of sums as provided in Section 6.06(a) and Section 6.06(b), the General Partner
shall, at the earliest practicable time, pay such sums or distribute such assets or the proceeds realized from the sale of such
assets to each Partner from whom such sums or assets have been withheld. No adjustment shall be made to the amounts owing Partners
for imputed interest during the period the sums so excluded or the assets so retained are withheld by the Partnership. 

(d)              
Any assets excluded or retained pursuant to this Section 6.06 at the time of the
dissolution of the Partnership shall be held by the General Partner after the dissolution of the Partnership in trust for the benefit
of the Partners on the same terms as provided in this Agreement and distributed to the Partners pursuant to Section 6.06(c).

Article
VII.

Meetings, Accounts, Reports and Auditors

7.01           
Books of Account.

(a)               
The Partnership will maintain books and records regarding financial accounts and reporting
in accordance with U.S. generally accepted accounting principles (except as otherwise provided in this Agreement).

(b)              
The books and records of the Partnership must be kept at the principal place of business of
the Partnership. Each Partner will have access, as provided in and subject to Section 17-305 of the Act, upon reasonable notice
and during regular business hours, to all books and records of the Partnership for all proper purposes as a Partner of the Partnership.
Each Partner will have the right to receive copies of such books and records, subject to payment of the reasonable costs of such
copies.

7.02           
Audit and Report.

(a)               
Following the end of each fiscal year and the end of each of the first 3 fiscal quarters of
each fiscal year, the General Partner shall cause to be prepared financial statements of the Partnership for such year or quarter,
as the case may be. Such financial statements shall be prepared in accordance with U.S. generally accepted accounting principles
(provided, however, that for purposes of such financial statements, the fair market value of any asset owned by the
Partnership shall be the fair market value thereof reasonably determined by the General Partner) and, with respect to the annual
financial statements shall be audited by a firm of independent certified public accountants selected by the General Partner. The
General Partner shall use its reasonable efforts, as soon as practicable following the end of each fiscal year, and within forty-five
(45) days following the end of each of the first three (3) fiscal quarters, as the case may be, to mail to each Partner the financial
statements for such year or quarter, as the case may be, including a cash flow statement and a balance sheet, together with the
following items as at the end of such year or quarter, as the case may be: 

(i)                
a statement of the Profits or Losses for such year or quarter, as the case may be, and such
Partner’s share thereof, 

(ii)              
a statement of such Partner’s Capital Account; 

    	28

    	 

    

(iii)            
with respect to a fiscal year report, an auditor’s statement that distributions for
such fiscal year were made in accordance with this Agreement; and

(iv)            
any other information which the General Partner shall deem necessary or appropriate.

(b)              
As soon as practical after March 15 of each fiscal year, the Partnership shall prepare and
mail to each Partner the information setting forth as at the end of such fiscal year the amount of such Partner’s share in
the Partnership’s taxable income or loss for such year, in sufficient detail to enable it to file any of its tax returns.
If such information is not provided by April 5 of each fiscal year, then the Partnership will provide a preliminary good faith
estimate of such information by such date. The Partnership shall also cause to be delivered to each Limited Partner such other
information as such Limited Partner may reasonably request for the purpose of enabling it to comply with any reporting or filing
requirements imposed by any statute, rule, regulation or otherwise by any governmental agency or authority. 

7.03           
Fiscal Year.

Subject to Section 706(b) of
the Code, the fiscal year of the Partnership will be a twelve (12) month year (except for the first and last partial years, if
any) ending on December 31 (the “Fiscal Year”).

Article
VIII.

Transfers and Other Events

8.01           
Transfers.

(a)               
Except as provided under Sections 8.01(b), 8.02 and 8.03 of this Agreement,
no Limited Partner may assign, pledge, sell or in any way directly or indirectly transfer, distribute, encumber or otherwise dispose
of (whether voluntarily or involuntarily) or otherwise grant a security interest in (each such act, a “Transfer”)
any of its interest in the Partnership or in this Agreement, except with the unanimous consent of the Partners. Any attempted disposition
of an interest in the Partnership or in this Agreement by a Limited Partner not made in accordance with this Section 8.01(a)
shall be void and shall not be effective.

(b)              
The prohibitions of Transfers set forth in Section 8.01(a) shall not apply to the following
Transfers (collectively, “Permitted Transfers” and the transferee of a Permitted Transfer being a “Permitted
Transferee”): (i) the Transfer of interests in the Partnership by any Limited Partner among its respective Affiliates
or Family Group, or (ii) the pledge or hypothecation of interests in the Partnership by any Limited Partner to a financial
institution or other Person in order to provide collateral security for a bona fide loan or other financing from such financial
institution or Person; provided, however, that, in each case, (1) the Limited Partner shall inform the General Partner
of such Transfer prior to effecting it and (2) prior to the completion of the Transfer, shall have executed documents, in
form and substance satisfactory to the General Partner, assuming the obligations of the Limited Partner under this Agreement with
respect to the Transferred interest in the Partnership.

(c)               
Any transferee of an interest in the Partnership pursuant to a Transfer in compliance with
this Section 8.01 (i) shall become a substituted Partner hereunder upon the acceptance by the General Partner of a
counterpart hereof executed by such transferee and the execution and delivery by such transferee of any other documentation that
may be reasonably required by the General Partner to determine that the Transfer satisfies the requirements of this Section
8.01; (ii) shall have the same rights and responsibilities under this Agreement as its transferor, and (iii) shall succeed
to the Capital Account of such transferor and the balances thereof (to the extent allocable to such interest). In the case of a
Transfer by the General Partner of its entire interest in the Partnership pursuant to Section 8.01(b), the transferee shall
be admitted as the General Partner hereunder immediately prior to the effective date of such Transfer and shall continue the business
of the Partnership without dissolution, and such Transfer shall not be deemed an event of withdrawal of the transferring General
Partner for purposes of the termination provisions set forth in Section 6.01. 

    	29

    	 

    

(d)              
No Transfer of any interest in the Partnership will be allowed if such Transfer or the actions
to be taken in connection with that Transfer would:

(i)                
result in a violation of any law, rule or regulation by the Partnership; 

(ii)              
cause the termination or dissolution of the Partnership; 

(iii)            
cause the Partnership to be classified other than as a partnership for Federal income tax
purposes; 

(iv)            
cause the Partnership to be classified as a “publicly traded partnership” within
the meaning of Section 469(k)(2) of the Code or for the purposes of Section 512(c)(2) of the Code; 

(v)              
result in a violation of the Securities Act; 

(vi)            
require the Partnership or the General Partner to register as an investment company under
the Investment Company Act; 

(vii)          
require the Partnership or the General Partner to register as an investment adviser under
the Investment Advisers Act; or 

(viii)        
result in a termination of the Partnership for Federal or state income tax purposes.

(e)               
If a natural person Limited Partner dies or becomes incapacitated, then his or her Legal Representative
will, upon execution of a counterpart of this Agreement, be substituted as a Limited Partner, subject to all the terms and conditions
of this Agreement.

(f)               
Any Transfer of a Limited Partner’s interest otherwise permitted hereunder shall be
made only upon (i) such Limited Partner taking all such actions and executing and delivering all such documents as may be reasonably
requested by the General Partner in order to consummate the Transfer in accordance with this Agreement and (ii) receipt by the
Partnership of a written opinion of counsel, in form and substance reasonably satisfactory to the General Partner, as to compliance
with Section 8.01(d) and such other legal matters as the General Partner may reasonably request. The General Partner may
waive, in whole or in part, the requirement to deliver an opinion pursuant to this Section 8.01(f).

(g)               
Any Limited Partner that requests or otherwise seeks to effect a Transfer of all or a portion
of its interest in the Partnership hereby agrees to reimburse the Partnership, at the request of the General Partner, for any expenses
reasonably incurred by the Partnership in connection with such Transfer, including the costs of seeking and obtaining the legal
opinion required by Section 8.01(f) and any other legal, accounting and miscellaneous expenses (“Transfer Expenses”),
whether or not such Transfer is consummated. At its election, and in any event the transferor has not reimbursed the Partnership
for any Transfer Expenses incurred by the Partnership in preparing for or consummating a proposed or completed Transfer within
15 days after the General Partner has delivered to such Partner written demand for payment, the General Partner may seek reimbursement
from the transferee of such interest (or portion thereof). If the transferee does not reimburse the Partnership for such Transfer
Expenses within a reasonable time (or, in the case of a Transfer not consummated, the prospective transferor does not reimburse
the Partnership within a reasonable time), the General Partner may charge the Capital Account related to such interest with such
Transfer Expenses. For avoidance of doubt, Transfer Expenses shall include the additional accounting, tax preparation and other
administrative expenses reasonably incurred (or to be incurred) by the Partnership in the case of a Transfer that results in tax
basis adjustments to be made by the Partnership under Section 743 of the Code or related provisions. In the case of a Transfer
that is expected to result in future expenses of the type described in the preceding sentence, the General Partner may estimate
the amount of such expenses in good faith, and such estimate shall be final.

    	30

    	 

    

(h)              
If a Transfer has been proposed or attempted but the requirements of this Section 8.01
have not been satisfied, then the General Partner shall not admit the purported transferee as a substituted Limited Partner but,
to the contrary, shall use its reasonable best efforts to ensure that the Partnership (i) continues to treat the transferor
as the sole owner of the interest in the Partnership purportedly transferred, (ii) makes no distributions to the purported transferee
and (iii) does not furnish to the purported transferee any tax or financial information regarding the Partnership. The General
Partner shall use its reasonable best efforts to ensure that the Partnership does not otherwise treat the purported transferee
as an owned of any interest in the Partnership (either legal or equitable), unless required by law to do so. The Partnership shall
be entitled to seek injunctive relief to the fullest extent permitted by law, at the expense of the purported transferor, to prevent
any such purported Transfer.

(i)                
If any Transfer results in multiple ownership of any Limited Partner’s interest in the
Partnership, the General Partner may require one or more trustees or nominees to be designated as representing a portion of or
the entire interest transferred for purposes of (i) receiving all notices which may be given, and all payments which may be made,
under this Agreement and (ii) exercising all rights which the transferor as a Limited Partner has pursuant to the provisions of
this Agreement.

8.02           
Sale of the Partnership.

(a)               
If a Sale of the Partnership is approved in accordance with the terms of this Agreement (an
“Approved Sale”), then each Limited Partner shall (i) vote in favor of (to the extent permitted to vote for),
consent to and raise no objections against such Approved Sale or the process pursuant to which such was arranged, (ii) waive any
dissenters’ rights, appraisal rights and other similar rights and (iii) take all other actions reasonably necessary or desirable
to cause the consummation of such Approved Sale, including the execution of any merger, redemption, sale or other such agreement
designed to facilitate such Approved Sale. Each Limited Partner shall be obligated, through a contribution agreement or otherwise
as requested by the General Partner to join on a joint and several basis in any indemnification (based on each such Person’s
pro rata share of the aggregate proceeds paid with respect to its interest) or other obligations agreed to by the Partnership in
connection with such Approved Sale; provided, that in no event shall any Limited Partner be obligated in connection such Approved
Sale to indemnify the prospective buyer or its Affiliates with respect to an amount in excess of such Limited Partner’s pro
rata share (based on each such Person’s pro rata share of the aggregate proceeds paid with respect to its interest) of the
total consideration paid by such buyer in connection with such Approved Sale; and provided further, that unless the prospective
transferee or its Affiliates permits a Limited Partner to give a guarantee, letter of credit or other mechanism, any escrow of
proceeds of any such transaction shall be withheld on a pro rata basis among all Limited Partners (based on each such Person’s
pro rata share of the aggregate proceeds paid with respect to its interest).

    	31

    	 

    

(b)              
The obligations of the Limited Partners with respect to an Approved Sale are subject to the
satisfaction of the following conditions: (i) the consideration payable upon consummation of such Sale of the Partnership to all
Partners shall be allocated to the Partners pursuant to and consistent with Article V and (ii) upon the consummation of
the Sale of the Partnership, all of the Limited Partners shall receive the same form of consideration for their interests in the
Partnership, or if any Limited Partners are given an option as to the form of consideration to be received, all Limited Partners
will be given the same option.

8.03           
Resignation.

Unless a Limited
Partner has Transferred all of its interest in the Partnership in accordance with Section 8.01 of this Agreement, no Limited
Partner shall have the right to resign or withdraw as a Limited Partner without the prior written consent of the General Partner,
which may be given or withheld in its sole and absolute discretion. Any Limited Partner that resigns without the consent of the
General Partner in contravention of this Section 8.03 shall be liable to the Partnership for all damages (including all
lost profits and special, indirect and consequential damages) directly or indirectly caused by the resignation of such Limited
Partner, and such Limited Partner shall be entitled to receive the fair value of his, her or its interest in the Partnership as
of the date of his, her or its resignation (or, if less, the fair value of his, her or its interest as of the date of the occurrence
of a liquidation or other winding up of the Partnership), as conclusively determined by the General Partner, only promptly following
the occurrence of a liquidation or other winding up of the Partnership.

Article
IX.

Miscellaneous

9.01           
Binding Agreement.

Subject to the provisions
of Section 8.01, this Agreement is binding upon, and inures to the benefit of, the heir, successor, assign, executor,
administrator, committee, guardian, conservator or trustee of any Partner.

9.02           
Gender.

As used in this
Agreement, except if the context otherwise requires, masculine, feminine and neuter pronouns include the masculine, feminine and
neuter; and the singular includes the plural.

9.03           
Notices.

(a)               
All notices, requests, consents and other communications hereunder to any party to this Agreement
shall be deemed to be sufficient if in writing and given by personal delivery, facsimile, electronic mail, telex, private courier
service or registered or certified mail, or facsimile or electronic transmission.

(b)              
A notice is deemed to have been given:

(i)                
by personal delivery, facsimile, or private courier service, facsimile, telex or electronic
transmission, as of the day of delivery of the notice to the addressee; 

(ii)              
by mail, as of the fifth (5th) day after the notice is mailed; and

    	32

    	 

    

(iii)            
by electronic mail, as of the day such notice is sent by electronic mail, so long as a copy
of the notice is provided by one of the other methods described in Section 9.03(a) promptly thereafter. 

(c)               
Notices must be sent to:

(i)                
the Partnership or the General Partner, at the address of the General Partner as set forth
on the Partner Schedule (as the same may be amended from time to time), or such other address or addresses as to which the Partners
have been given notice; and

(ii)              
the Limited Partners, at the addresses in the Partner Schedule (as the same may be amended
from time to time) or such other addresses as to which the Partnership has been given notice in writing in accordance with this
Section 9.03.

9.04           
Consents and Approvals.

A consent or approval
required to be given by any party under this Agreement will be deemed given and effective for purposes of this Agreement only if
the consent or approval is:

(i)                
given by such party in writing, and 

(ii)              
delivered by such party to the party requesting the consent or approval in the manner provided
for notices to such party under Section 9.03.

9.05           
Counterparts.

This Agreement and
any amendment to this Agreement may be executed in more than one counterpart, each of which shall be deemed an original but all
of which shall constitute one and the same instrument, with the same effect as if the parties executed one counterpart as of the
day and year first above written on this Agreement or any such amendment; provided, however, that each separate counterpart
must be executed by the General Partner.

9.06           
Amendments. 

This Agreement shall
not be amended except by an instrument in writing executed by the General Partner and each Limited Partner. Notwithstanding the
foregoing, the General Partner may, without the consent of the Limited Partners, amend this Agreement to reflect the occurrence
of a Transfer of a Partner’s interest in accordance with this Agreement and the admission of a substituted Partner under
such Transfer.

9.07           
Applicable Law.

This Agreement shall
be governed by, and construed in accordance with, applicable Federal laws and the laws of the State of Delaware (without giving
effect to conflict of law principles).

9.08           
Severability.

If any one or more
of the provisions contained in this Agreement, or any application of any such provision, is invalid, illegal, or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions contained in this Agreement and all other
applications of any such provision will not in any way be affected or impaired.

    	33

    	 

    

9.09           
Entire Agreement.

This Agreement states
the entire understanding among the parties relating to the subject matter of this Agreement. Any and all prior conversations, correspondence,
memoranda or other writings are merged in, and replaced by this Agreement, and are without further effect on this Agreement. No
promises, covenants, representations or warranties of any character or nature other than those expressly stated in this Agreement
have been made to induce any party to enter into this Agreement.

9.10           
Confidentiality. 

(a)               
A Limited Partner’s rights to access or receive any information about the Partnership
and its affairs, including, without limitation, (i) financial statements, reports and other information provided pursuant
to Section 7.02, (ii) information obtained at any meeting of the Partnership, (iii) confidential, proprietary or other
non-public information or trade secrets relating to the Partnership or its assets or operations and (iv) any related agreements
and any other books and records of the Partnership (collectively, the “Partnership Information”), are conditioned
on such Limited Partner’s willingness and ability to assure that the Partnership Information will be used solely by such
Limited Partner for purposes reasonably related to such Limited Partner’s interest as a Limited Partner, and that such Partnership
Information will not become publicly available as a result of such Limited Partner’s rights to access or receive such Partnership
Information, and each Limited Partner agrees not to use Partnership Information other than for purposes of evaluating, monitoring
or protecting its investment in the Partnership.

(b)              
Each Limited Partner acknowledges and agrees that the Partnership Information constitutes
a valuable trade secret of the Partnership and agrees to maintain any Partnership Information provided to it (including to any
of its designees who may be serving as a member of any board or committee formed to assist or advise the General Partner), in the
strictest confidence and not to disclose the Partnership Information to any Person including, without limitation, a prospective
transferee of such Partner’s interest in the Partnership, without the written prior consent of the General Partner. Each
Limited Partner that has a designee or representative who serves as a member of any board or committee formed to assist or advise
the General Partner shall cause such designee or representative, as the case may be, to maintain the confidentiality of any Partnership
Information provided to such designee or representative, as the case may be, to a substantially equivalent degree as is required
of such Limited Partner hereunder. Notwithstanding the foregoing, the General Partner consents to the disclosure by a Limited Partner
to its accountants, attorneys and similar advisors bound by a duty of confidentiality. With respect to any Limited Partner, the
obligation to maintain the Partnership Information in confidence shall not apply to any Partnership Information (i) that becomes
publicly available (other than by reason of a disclosure by a Limited Partner), (ii) the disclosure of which by such Limited Partner
has been consented to by the General Partner in writing, or (iii) the disclosure of which by such Limited Partner is required by
a court of competent jurisdiction or other governmental authority or otherwise as required by law. Before any Limited Partner discloses
Partnership Information pursuant to clause (iii), such Limited Partner, to the fullest extent permitted by law, shall promptly,
prior to making any such disclosure, notify the General Partner of the court order, subpoena, interrogatories, government order
or other reason that requires disclosure of the Partnership Information so that the General Partner may seek a protective order
or other remedy to protect the confidentiality of the Partnership Information. Such Limited Partner, to the fullest extent permitted
by law, shall also consult with the General Partner on the advisability of taking steps to eliminate or narrow the requirement
to disclose the Partnership Information and shall otherwise cooperate with the efforts of the General Partner to obtain a protective
order or other remedy to protect the Partnership Information. If a protective order or other remedy cannot be obtained, such Limited
Partner, to the fullest extent permitted by law, shall disclose only that Partnership Information that its counsel advises in writing
(which writing shall also be addressed and delivered to the Partnership) that it is legally required to disclose.

    	34

    	 

    

(c)               
Each Limited Partner shall promptly inform the General Partner if it becomes aware of any
reason, whether under law, regulation, policy or otherwise, that it (or any of its equity holders) will, or might become compelled
to, use the Partnership Information other than as contemplated by Section 9.10(a) or disclose Partnership Information
in violation of the confidentiality restrictions in Section 9.10(b).

(d)              
The Limited Partners acknowledge and agree that: (i) the Partnership or the General Partner
and their Affiliates may acquire confidential information related to third parties that pursuant to fiduciary, contractual, legal
or similar obligations may not be disclosed to the Limited Partners without violating such obligations; and (ii) neither the
Partnership, the General Partner nor their Affiliates shall be in breach of any duty under this Agreement or the Act in consequence
of acquiring, holding or failing to disclose Partnership Information to a Limited Partner so long as such obligations were undertaken
in good faith.

(e)               
In addition to any other remedies available at law, the Partners agree that the Partnership
shall be entitled to seek equitable relief, including, without limitation, the right to an injunction or restraining order, as
a remedy for any failure by a Limited Partner to comply with its obligations with respect to the use and disclosure of Partnership
Information, as set forth in Sections 9.10(a) and (b). Furthermore, unless otherwise agreed by the General Partner,
each Limited Partner agrees to indemnify, to the fullest extent permitted by law, the Partnership and each Covered Person against
any claim, demand, controversy, dispute, cost, loss, damage, expense (including attorneys’ fees), judgment and/or liability
incurred by or imposed upon the Partnership or any such Covered Person in connection with any action, suit or proceeding (including
any proceeding before any administrative or legislative body or agency), to which the Partnership or any such Covered Person may
be made a party or otherwise involved or with which the Partnership or any such Covered Person shall be threatened, by reason of
the Limited Partner’s obligations (or breach thereof) set forth in Section 9.10(a) and/or 9.10(b). 

(f)               
Each Limited Partner agrees to cooperate with such procedures and restrictions as may be developed
by the General Partner from time to time in connection with the disclosure of nonpublic information concerning the General Partner
and the Partnership, as determined by the General Partner to be reasonably necessary and advisable to maintain and promote compliance
with legal and other regulatory matters applicable to the General Partner, the Partnership and the Limited Partners, including
securities laws and regulations.

(g)               
Notwithstanding anything in this Agreement to the contrary, to avoid the application of Treasury
Regulations § 1.6011-4(b)(3), each Limited Partner (and any employee, representative, or other agent of such Limited Partner)
may disclose to any and all Persons, without limitation of any kind, the U.S. federal tax treatment and tax structure of the Partnership
or any transactions contemplated by the Partnership, it being understood and agreed, for this purpose (i) the name of, or any other
identifying information regarding (A) the Partnership or any existing or future investor (or any Affiliate thereof) in the Partnership,
or (B) any investment or transaction entered into by the Partnership, (ii) any performance information relating to the Partnership
or its investments, or (iii) any performance or other information relating to other investments sponsored by the General Partner
or their Affiliates does not constitute such tax treatment or structure information.

    	35

    	 

    

(h)              
To the fullest extent permitted by law, the provisions of this Section 9.10 shall survive
the withdrawal of any Partner from the Partnership or the Transfer of any Partner’s interest in the Partnership and shall
be enforceable against such Partner after such withdrawal or Transfer.

9.11           
No Right to Partition. 

To the extent permitted
by law, and except as otherwise expressly provided in this Agreement, the Partners, on behalf of themselves and their shareholders,
members, partners, heirs, executors, administrators, personal or Legal Representatives, successors and assigns, if any, hereby
specifically renounce, waive and forfeit all rights, whether arising under contract or statute or by operation of law, to seek,
bring or maintain any action in any court of law or equity for partition of the Partnership or any asset of the Partnership, or
any interest which is considered to be Partnership property, regardless of the manner in which title to any such property may be
held.

9.12           
Partnership Tax Treatment. 

The Partners intend
for the Partnership to be treated as a partnership for United States federal income tax purposes and no election to the contrary
shall be made.

9.13           
Partnership Counsel. 

The General Partner
and SWK have retained Patton Boggs LLP (“Partnership Counsel”) in connection with the formation of the
Partnership and may retain Partnership Counsel in connection with the operation of the Partnership, including making, holding and
disposing of the Purchased Assets. Each Limited Partner (other than SWK) acknowledges that Partnership Counsel does not represent
such Limited Partner (in its capacity as such) in the absence of a clear and explicit written agreement to such effect between
such Limited Partner and Partnership Counsel (and then only to the extent specifically set forth in such agreement), and that in
the absence of any such agreement Partnership Counsel shall owe no duties to such Limited Partner (in such capacity), whether or
not Partnership Counsel has in the past represented or is currently representing such Limited Partner with respect to other matters.

9.14           
Jury Trial Waiver. 

THE PARTNERSHIP,
THE GENERAL PARTNER AND THE LIMITED PARTNERS HEREBY IRREVOCABLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (I)
TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR (II) ARISING FROM ANY DISPUTE OR CONTROVERSY IN
CONNECTION WITH OR RELATED TO THIS AGREEMENT AND AGREES THAT ANY SUCH ACTION OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY.

9.15           
Survival. 

All representations,
warranties, covenants and agreements of the Partnership and the Partners contained herein or made in writing in connection herewith
shall survive the execution and delivery of this Agreement and shall continue in full force and effect so long as this Agreement
shall remain in effect. The rights and obligations contained in Section 2.05 (indemnification), and Section 5.03
(withholding) shall survive any termination of this Agreement and shall continue for the length of any applicable statute of limitations.

    	36

    	 

    

9.16           
Public Announcements.

No Limited Partner
shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of
the General Partner, unless such party has been advised by counsel such disclosure is required by applicable law. Any press release
or other announcement or notice regarding the transactions contemplated by this Agreement shall be made by the General Partner
or any other party designated by the General Partner.

[Signature Page
Follows]

    	37

    	 

    

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

	 	GENERAL PARTNER:	 
	 	 	 	 
	 	HP GENERAL PARTNER, LLC	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Brett Pope	 
	 	 	Brett Pope	 
	 	 	Manager	 
	 	 	 	 

 

	 	 	 
	 	WITHDRAWING LIMITED PARTNER:
	 	 	 
	 	/s/ Brett Pope	 
	 	Brett Pope	 

 

 

 

[SIGNATURE PAGE TO A&R LIMITED LIABILITY COMPANY AGREEMENT OF HOLMDEL PHARMACEUTICALS, LP]

    	38

    	 

    

COUNTERPART SIGNATURE
PAGE

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

OF

HOLMDEL
PHARMACEUTICALS, LP

 

The undersigned
Limited Partner hereby executes the Amended and Restated Partnership Agreement (as amended, the “Agreement”)
of Holmdel Pharmaceuticals, LP (the “Partnership”), to be effective as of the date first written above.

LIMITED PARTNER:

 

SWK HP HOLDINGS LP

 

	By: 	SWK HP Holdings GP LLC	 
	 	its general partner	 
	 	 	 
	 	 	 
	By: 	 /s/
    Brett Pope	 
	 	Brett Pope	 
	 	Manager	 

 

	Address and e-mail: 	SWK HP Holdings LP
	for Notices	c/o SWK HP Holdings GP LLC
	 	15770 North Dallas Parkway, Suite 1290
	 	Dallas, Texas 75248
	 	Attn: Brett Pope
	 	Fax no: (972) 687-7255
	 	Email: bpope@swkhold.com
	With a copy to:	 
	 	Patton Boggs LLP
	 	2000 McKinney Avenue, Suite 1700
	 	Dallas, Texas  75201
	 	Attn:  Kevin Boardman
	 	Fax: (214) 758-1550
	 	Email: kboardman@pattonboggs.com

 

 

 

[SIGNATURE PAGE TO A&R LIMITED LIABILITY COMPANY AGREEMENT OF HOLMDEL PHARMACEUTICALS, LP]

 

    	 

    	 

    

COUNTERPART SIGNATURE
PAGE

AMENDED AND RESTATED

LIMITED PARTNERSHIP AGREEMENT

OF

HOLMDEL
PHARMACEUTICALS, LP

 

The undersigned
Limited Partner hereby executes the Amended and Restated Partnership Agreement (as amended, the “Agreement”)
of Holmdel Pharmaceuticals, LP (the “Partnership”), to be effective as of the date first written above.

LIMITED PARTNER:

 

HOLMDEL THERAPEUTICS,
LLC

 

 

	By: 	 /s/ ***	 
	Name: 	 ***	 
	Title:	***	 

 

 

	Address and e-mail: 	Holmdel Therapeutics, LLC
	for Notices	***
	 	***
	 	Attn: ***
	 	Fax no: ***
	 	Email: ***
	 	 
	With a copy to:	Wolff & Samson PC
	 	One Boland Drive
	 	West Orange, JN 07052
	 	Attn:  Laurence Smith, Esq.
	 	Fax no: (973) 530-2221
	 	Email: lsmith@wolffsamson.com

 

 

[SIGNATURE PAGE TO A&R LIMITED LIABILITY COMPANY AGREEMENT OF HOLMDEL PHARMACEUTICALS, LP]

 

    	 

    	 

    

PARTNER SCHEDULE

 

 

	Limited Partner Information	Capital Contribution	Partner Percentage*	Date of Admission
	
         

        SWK HP Holdings LP

        c/o SWK HP Holdings GP LLC

        15770 North Dallas Parkway

        Suite 1290

        Dallas, Texas 75248

        Attn: Brett Pope

         
	
         

        $12,998,700
	
         

        86.658%
	
         

        December 20, 2012

	
        Holmdel Therapeutics,
        LLC 

        ***

        ***

        Attn: ***

         

         
	$1,999,800	13.332%	December 20, 2012
	General Partner Information	Capital Contribution	Partner Percentage	Date of Admission
	
        HP General Partner LLC

        c/o SWK HP Holdings GP LLC

        15770 North Dallas Parkway

        Suite 1290

        Dallas, Texas 75248

        Attn: Brett Pope

         

         
	$1,500	0.010%	December 20, 2012

*      After SWK has received
distributions from the Partnership in an amount equal to:

 

		-	One time (1x) its Capital Contribution, its Partner Percentage shall be decreased to ***% and JK’s
Partner Percentage shall be increased to ***%;

 

		-	Two times (2x) its Capital Contribution, its Partner Percentage shall be decreased to ***% and JK’s
Partner Percentage shall be increased to ***%; and

 

		-	Three and one-half times (3.5x) its Capital Contribution (i) within seven (7) years from the date
of this Agreement, its Partner Percentage shall be decreased to 45% and JK’s Partner Percentage shall be increased to 55%
or (ii) more than seven (7) years from the date of this Agreement, its Partner Percentage shall be increased to 55% and JK’s
Partner Percentage shall be decreased to 45%.

 

 

PARTNER SCHEDULE

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