Document:

Q3 2012 10-Q Exhibit 10.1

Exhibit 10.1

 

 

 

 

 

 

 

 

NPS PHARMACEUTICALS, INC. 

                  CHANGE IN CONTROL SEVERANCE PAY PLAN

 

 

 

 

 

 

 

AS AMENDED THROUGH

AUGUST 20, 2012

 

	Introduction.  The purpose of the NPS Pharmaceuticals, Inc. Change in Control Severance Pay Plan
(the "Plan") is to provide severance benefits to eligible employees of NPS Pharmaceuticals, Inc. and its subsidiaries
(collectively "Company") when there has been a "change in control" of the Company resulting in the eligible
employee's job prospects being "materially altered."  This Plan replaces any prior severance policy or other policy or
practice under which severance benefits have been provided to employees of the Company, except as provided in Section 13 herein.
This document constitutes both the written instrument under which the Plan is maintained and the summary plan description for the
Plan.

	Effective Date.  The original effective date of the Plan was January 1, 2005.  The effective date of
the Plan as set forth herein is August 20, 2005.

	Term.  The Plan shall be in effect until terminated by the Company.

	ERISA.  For Covered Employees in the United States, this Plan is intended to be a "welfare
benefit plan" within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA") and to meet the descriptive requirements of a plan constituting a "severance pay plan" within the
meaning of regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, Section 2510.2(b) and is to be
administered as a "top-hat" welfare plan maintained for select group of management or highly compensated employees and
exempt from the substantive requirements of ERISA.

	Employment Standards Act.  For Covered Employees in Canada, the Plan is intended to provide
the severance benefits required under the Canadian Employment Standards Act, as amended from time to time ("Employment
Standards Act").  To the extent that any provisions of the Plan conflict with the Employment Standards Act, the Employment
Standards Act shall govern Covered Employees in Canada.  

	Important Terms.  The following words and phrases shall have the following respective meanings
unless the context clearly indicates otherwise:

6.1   "Administrator" means the Company, acting through its General Counsel, or such other
person appointed by the Board.

6.2   "Base Pay" means the Covered Employee's annual regular straight-time salary as in
effect on the date of termination of employment.

6.3   "Board" means the Board of Directors of the Company.

6.4   "Cause" means (i) an act of material dishonesty by the Covered Employee in
connection with the Covered Employee's responsibilities as an employee, (ii) the Covered Employee's conviction of, or plea of nolo
contendere to, a felony, (iii) the Covered Employee's gross misconduct in connection with the Covered Employee's responsibilities as
an employee, (iv) the Covered Employee's violation of the Company's written policies and procedures; or (v) the Covered Employee's
continued failure to perform his or her responsibilities as an employee after the Covered Employee has received a written demand for
such performance.  

 

 

                                                    2

6.5   "Change in Control" means (i) a dissolution or liquidation or sale of all or substantially
all of the assets of the Company; (ii) a merger or consolidation in which the Company is not the surviving corporation; (iii) a reverse
merger in which the Company is the surviving corporation but the shares of the Company's common stock outstanding immediately
preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash, or otherwise; (iv)
a strategic corporate event, such as a merger or acquisition, where the Company is technically the surviving entity, but which the Board
determines in its sole discretion that other elements of a Change in Control are present, i.e., a substantial change in the management
team or composition of the Board; (v) a transaction which the Board determines in its sole discretion to constitute a Change in Control
of the Company: or (vi) any other capital reorganization in which more than 50% of the shares of the Company entitled to vote are
exchanged.  A Change in Control does not include the occurrence of an event described in (i), (ii), (iii) or (iv) where the sole parties to
the event are NPS Pharmaceuticals, Inc. and one of its subsidiaries.  

6.6   "Company" means NPS Pharmaceuticals, Inc., a Delaware corporation, and any of its
wholly owned subsidiaries and any successor by merger, acquisition, consolidation or otherwise that assumes the obligations of the
Company under the Plan.

6.7   "Covered Employee" means a regular full-time employee of the Company who is
(a) paid at Grade 11 or above of the Company's Compensation Structure for Executives and Non-Executives or (b) paid at Grades 8
through 10 (Director) and hired before September 1, 2012.  

6.8   "Full-Time Employee" means those employees whose employment status is
expected to last four consecutive months or longer working 80 percent or more of the normal possible annual working hours for that
position. 

6.9 "Determination Period" means the time period, not to exceed twenty-four
(24) months, beginning on the date of the Change in Control.

6.10   "Involuntary Termination" means the Company's termination of employment of the
Covered Employee after a Change in Control other than for Cause.

6.11   "Materially Altered" means without the Covered Employee's written consent, (i) a
material reduction in the Covered Employee's authority, duties or responsibilities relative to the Covered Employee's authority, duties or
responsibilities in effect prior to such reduction where such reduction was imposed without Cause, (ii) a material diminution in the
Covered Employee's base compensation, where such reduction was imposed without Cause, or (iii) a material change in the
geographical relocation at which the Covered Employee must perform his or her duties as an employee of the Company.

6.12   "Plan" means the NPS Pharmaceuticals, Inc. Change in Control Severance Pay
Plan, as set forth in this document, and as hereafter amended from time to time.

6.13"Release Period" means the forty-five (45) day period, commencing on the date of
the Covered Employee's Separation from Service, by which he or she must sign the Release in order to receive a Severance Benefit,
as provided in Exhibit B. 

 

 

                                                    3

6.14    "Section 409A" means Section 409A of the Internal Revenue Code of 1986, as
amended. This Plan is intended to comply with all of the requirements of Section 409A and any regulatory, administrative or judicial
guidance thereunder and shall be administered and interpreted in accordance with those requirements.  This Plan is intended to meet
the requirements of the separation pay plan exemption under Section 409A.  Any payment from the Plan that is subject to the
requirements of Section 409A may only be made in a manner and upon an event permitted by Section 409A, including the requirement
that deferred compensation payable to a "specified employee" of a publicly traded company be postponed for six months
after separation from service.  Payments upon termination of employment may only be made upon a "separation from
service" under section 409A.  Each payment under the Plan shall be treated as a separate payment for purposes of section 409A
and a series of installment payments shall be treated as a series of separate payments.  In no event may an employee, directly or
indirectly, designate the calendar year of any payment to be made under the Plan.  If the maximum period during which an employee
has the ability to consider and revoke a waiver/release hereunder would span two taxable years of the employee, then, regardless of
when the employee signs the waiver/release and the revocation period expires, payment of severance benefits hereunder will be made
or commence no earlier than the beginning of the second of such taxable years.

6.15    "Separation from Service" means separation from Service as defined under
Section 409A.

6.16    "Severance Benefit" means the compensation and other benefits the Covered
Employee will be provided pursuant to Section 8.

6.17   "Severance Period" means the time period, not to exceed twenty-four months,
beginning on the date of a Covered Employee's Separation from Service as a result of an Involuntary Termination or the Covered
Employee's job prospects being Materially Altered as a result of a Change in Control.  The Severance Period for each job classification
is set forth on Exhibit A.

6.18    "Short Term Incentive" means the target percentage of the Covered Employee's
Base Salary in the Short Term Incentive Plan as determined by the Company in effect on the date of termination of employment.  It
does not include the short term incentive earned but not paid prior to the Covered Employee's date of termination.   

6.19   "Total Cash Compensation Target" means the Covered Employee's Annual Base
Pay and target Short Term Incentive divided by twelve (12) months and multiplied by the number of months of the Covered Employee's
Severance Period.

	Eligibility for Severance Benefit.  An individual is eligible for the Severance Benefit under the Plan,
in the amount set forth in Section 8 and for the duration set forth in Exhibit A, only if he or she is a Covered Employee on the effective
date of a Change in Control.

 

                                                    4

	Severance Benefit.

8.1.1   Termination Following a Change in Control.  Except as provided in Section 13, at any time within
the Determination Period for a Covered Employee following a Change in Control (i) the Covered Employee's job prospects are
Materially Altered followed by the termination of the Covered Employee's employment in accordance with the notice and cure
requirements of this Section 8.1.1, or (ii) the Covered Employee's employment is Involuntarily Terminated, other than for Cause or
death or permanent disability, then the Covered Employee may be entitled to his or her Severance Benefit under the Plan.  

In the instance of the Involuntarily Termination of the Covered Employee, other than for Cause or death or
permanent disability, the Covered Employee shall be entitled to receive the Severance Benefit described in the remainder of this
Section 8.1 from the Company, provided the Covered Employee signs the Release in a timely manner as provided in Section 8.2.

In the instance of the Covered Employee's job prospects being Materially Altered, the Covered Employee must
exercise his or her rights under the Plan by providing the Company with written notice that his or her job prospects have been Materially
Altered within ninety (90) days of the date of such Material Alteration, upon the notice of which the Company will be provided a period of
thirty (30) days during which it may remedy the condition giving rise to the Material Alteration of the Covered Employee's job prospects.
In such instance, the Covered Employee's employment with the Company shall terminate following the expiration of the thirty (30) day
cure period without the Company remedying the condition giving rise to the Material Alteration of the Covered Employee's job
prospects, following which, provided the Covered Employee signs the Release in a timely manner as provided in Section 8.2, the
Covered Employee will receive the following Severance Benefit from the Company:

8.1.2   Total Cash Compensation Target.  Within 60 days of the completion of the Covered Employee's
Separation from Service, if the Covered Employee has executed and not revoked the Release as required by Section 8.2 herein and
returned all of the Company's property as required by Section 25 herein, the Covered Employee will be paid a lump sum single
payment equal to his or her Total Cash Compensation Target; provided, however, that if the Covered Employee is a specified employee
(as defined under Section 409A) as of his or her date of Separation from Service and the lump sum single payment equal to his or her
Total Cash Compensation Target is determined to be nonqualified deferred compensation subject to Section 409A, then such payment
shall be made on date which is the earlier of: (a) the date six months after the Covered Employee's Separation from Service, or (b) the
date of the Covered Employee's death. 

8.1.3   Covered Employees in Canada.  For Covered Employees in Canada, the amount of
severance pay for a Covered Employee whose severance pay is governed by the Employment Standards Act will be the greater of that
determined under Section 8.1.1 or the amount required under the Employment Standards Act. 

 

                                                    5

8.1.4   Continued Medical Benefits.  If Covered Employee, and any spouse and/or dependents of
Covered Employee ("Family Members"), has medical and dental coverage on the date of Covered Employee's termination
of employment under a group health plan sponsored by the Company, the Company will reimburse Covered Employee for the total
applicable premium cost for medical and dental coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, 29
U.S.C. Sections 11611168; 26 U.S.C. Section 4980B(f), as amended, and all applicable regulations (referred to collectively as
"COBRA") for Covered Employee and his Family Members during the full term of the Severance Period (to the extent
COBRA coverage lasts for the full term); provided, that the Company shall have no obligation to reimburse Covered Employee for the
premium cost of COBRA coverage beginning on or after the date Covered Employee and his Family Members first become eligible to
obtain comparable benefits from a subsequent employer.  Notwithstanding the foregoing, the Company reserves the right to restructure
the foregoing continued coverage arrangement in any manner reasonably necessary or appropriate to avoid penalties or negative tax
consequences to the Company or the Covered Employee, as determined by the Company in its sole and absolute discretion.

8.1.5   Stock Option Accelerated Vesting and Extended Exercise Period.  Provisions for acceleration of
vesting upon a Change in Control as defined above may be found in the Company's Employee Stock Option Plans in effect on
February 19, 2003 or thereafter, and options previously granted thereunder and then outstanding. Those Stock Option Plans and
Options also provide for an extended time for exercise of such Options upon an Involuntary Termination initiated by the Covered
Employee or a termination initiated by the Company in either case upon a Change in Control for Company employees generally and for
Covered Employees in particular.  The terms of such stock option plans and grants made thereunder remain in full force and effect.
Notwithstanding the foregoing, the Company reserves the right to restructure the foregoing continued coverage arrangement in any
manner reasonably necessary or appropriate to avoid penalties or negative tax consequences to the Company or the Covered
Employee, as determined by the Company in its sole and absolute discretion.

8.1.6   Short Term Incentive Earned Prior to Date of Termination.  In the event that the Covered
Employee's date of termination is prior to the date that the amount of short term incentive earned by employees of the Company for that
year is determined, if any, the Covered Employee will be entitled to receive, in addition to the Total Cash Compensation Target, a pro
rata share of his or her actual short term incentive target for such year, if any, e.g., if the Covered Employee's date of termination is July
1, he or she will be entitled to receive 50% of his or her actual short term incentive.   Such pro rata short term incentive payment will be
paid according to the terms of the Company's compensation program in effect for the calendar year in which the Involuntary
Termination of the Covered Employee occurs, but not later than March 15 of the calendar year after the calendar year of the Separation
from Service of the Covered Employee.  The Covered Employee's pro rata share of actual short term incentive for such year will be
paid to the Covered Employee at the same time that it is paid to employees of the Company generally but not later than March 15 of the
calendar year after the calendar year of the Separation from Service of the Covered Employee, regardless of the Covered Employee's
date of termination of employment.  

 

                                                    6

8.1.7   Additional Limitation.  Anything in this Plan to the contrary notwithstanding, in the event that any
compensation, payment or distribution by the Company to or for the benefit of the Covered Employee, whether paid or payable or
distributed or distributable pursuant to the terms of this Plan or otherwise (the "Severance Payments"), would be subject to
the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986 (the "Code"), the following provisions shall
apply:

If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and
local income and employment taxes payable by the Covered Employee on the amount of the Severance Payments which are in excess
of the Threshold Amount, are greater than or equal to the Threshold Amount, the Covered Employee shall be entitled to the full benefits
payable under this Plan.

If the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments
reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount
of the Severance Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not
below zero) to the extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount.  In such event,
the Severance Payments shall be reduced in the following order:  (1) cash payments not subject to Section 409A; (2) cash payments
subject to Section 409A; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits.  To the extent any payment is
to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.

For the purposes of this Section 8.1.7, "Threshold Amount" shall mean three times the Covered
Employee's "base amount" within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated
thereunder less one dollar ($1.00); and "Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, and
any interest or penalties incurred by the Covered Employee with respect to such excise tax.

8.2   Release.  As a condition to receiving Severance Benefits under this Plan, each Covered Employee
will be required to sign a waiver and release of all claims arising out of the termination of the Covered Employee's employment with the
Company and its subsidiaries and affiliates, substantially in the form set forth on Exhibit B.  

8.3   Vacation and PTO Days.  Any unused vacation or personal time off ("PTO") pay
accrued as of a Covered Employee's date of Involuntary Termination will be paid at the time the Covered Employee receives his or her
Total Cash Compensation Target payment.  No Covered Employee may use any accrued but unused vacation or PTO pay to extend
his or her Involuntary Termination date or to postpone or delay the start of his or her Severance Period.

	Withholding.  The Company will withhold from any Severance Benefit all federal, state, local and
other taxes required to be withheld therefrom and any other required payroll deductions.

                                                    7

	Administration.  The Company is the Administrator of the Plan (within the meaning of section
3(16)(A) of ERISA). The Plan will be administered and interpreted by the Administrator (in his or her sole discretion). The Administrator
is the "named fiduciary" of the Plan for purposes of ERISA and will be subject to the fiduciary standards of ERISA when
acting in such capacity. Any decision made or other action taken by the Administrator with respect to the Plan, and any interpretation by
the Administrator of any term or condition of the Plan, or any related document, will be conclusive and binding on all persons and be
given the maximum possible deference allowed by law. The Administrator has the authority to act for the Company (in a non-fiduciary
capacity) as to any matter pertaining to the Plan; provided, however, that this authority does not apply with respect to (a) the
Company's power to amend or terminate the Plan or (b) any action that could reasonably be expected to increase significantly the cost
of the Plan, the authority to take such actions is subject to the prior approval of the Board.

	Eligibility to Participate.  The Administrator will not be excluded from participating in the Plan if
otherwise eligible, but he or she is not entitled to act or pass upon any matters pertaining specifically to his or her own benefit or
eligibility under the Plan. The chief executive officer of the Company will act upon any matters pertaining specifically to the benefit or
eligibility of the Administrator under the Plan.

	Amendment or Termination.  The Company reserves the right to amend or modify the Plan at any
time, without advance notice to any Covered Employee, including but not limited to the Severance Periods set forth on Exhibit A.
Notwithstanding the preceding, no amendment or modification of the Plan shall impair the rights of any Covered Employee, unless
mutually agreed otherwise between the Covered Employee and the Company, which agreement must be in writing and signed by the
Covered Employee and the Company.  The Plan will continue until terminated on at least three months notice; provided, however, if
there are any outstanding Determination Periods or Severance Periods on the date of termination, then the Plan will remain in effect
until all Severance Benefits have been paid with respect to any such Determination Periods and Severance Periods. The Company
shall not have the power to terminate the Plan on less than three months notice without the consent of the affected Covered
Employees.

	Severance Agreements for Certain Covered Employees.  Certain Covered Employees have
previously entered into written severance agreements with the Company prior to December 1, 2004.  Such Covered Employees will not
be entitled to severance benefits under both the Plan and their written agreements.  Within five (5) days of the Covered Employee's
Involuntary Termination, the Covered Employee shall elect whether he or she will receive benefits under the written severance
agreement or the Plan.  

	Claims Procedure.  Any employee or other person who believes he or she is entitled to any
payment under the Plan may submit a claim in writing to the Administrator or his or her designee.  If the claim is denied (in full or
in part), the claimant will be provided a written notice explaining the specific reasons for the denial and referring to the provisions of the
Plan on which the denial is based. The notice will also describe any additional information needed to perfect the claim, an explanation
as to why such information is necessary and an explanation of the Plan's claims procedure and the time limits applicable to such
procedures, including a statement of the claimant's right to bring a civil action under section 502(a) of ERISA following an adverse
benefit determination on appeal. The denial notice will be provided within 90 days after the claim is received. If special circumstances
require an extension of time (up to 90 days), written notice of the extension will be given within the initial 90-day period.

                                                    8

	Appeal Procedure.  If the claimant's claim is denied, the claimant (or his or her authorized
representative) may apply in writing to the Administrator for a review of the decision denying the claim. Review must be requested
within 60 days following the date the claimant received the written notice of their claim denial or else the claimant loses the right to
review. The claimant (or representative) then has the right to review pertinent documents and to submit issues and comments in writing.
The Administrator will provide written notice of his or her decision on review within 60 days after it receives a review request. If
additional time (up to 60 days) is needed to review the request, the claimant (or representative) will be given written notice of the reason
for the delay.  If the claimant's appeal is denied (in full or in part), the claimant will be provided a written notice explaining the specific
reasons for the denial and referring to the provisions of the Plan on which the denial is based. The notice will also describe the
claimant's right to receive, upon request and without charge, reasonable access to, and copies of, all documents, records and other
information relevant to the claim for benefits.  The notice will also include a statement of the claimant's right to bring a civil action under
section 502(a) of ERISA.  No person may bring an action for any alleged wrongful denial of Plan benefits in a court of law unless the
claims procedures set forth above are exhausted and a final determination is made by the Administrator. If a Covered Employee or
another interested person challenges a decision of the Administrator, a review by the court of law will be limited to the facts, evidence
and issues presented to the Administrator during the claims procedure set forth above. Facts and evidence that become known to a
Covered Employee or the other interested person after having exhausted the claims procedure must be brought to the attention of the
Administrator for reconsideration of the claims determination. Issues not raised with the Administrator will be deemed waived.

	Source of Payments.  All Severance Benefits will be paid in cash from the general funds of the
Company; no separate fund will be established under the Plan; and the Plan will have no assets.  No right of any person to receive any
payment under the Plan will be any greater than the right of any other general unsecured creditor of the Company.

	Inalienability.  In no event may any current or former employee of the Company or any of its
subsidiaries or affiliates sell, transfer, anticipate, assign or otherwise dispose of any right or interest under the Plan. At no time will any
such right or interest be subject to the claims of creditors nor liable to attachment, execution or other legal process.

	No Enlargement of Employment Rights.  Neither the establishment or maintenance of the Plan,
any amendment of the Plan, nor the making of any benefit payment hereunder, will be construed to confer upon any individual any right
to be continued as an employee of the Company. The Company expressly reserves the right to discharge any of its employees,
including Covered Employees, at any time, with or without cause.

	Applicable Law and Choice of Forum.  The provisions of the Plan will be construed, administered
and enforced in accordance with ERISA and, to the extent applicable, the laws of Canada or the State of New Jersey.  The Covered
Employee agrees that any action brought under the Plan will be brought in the State of New Jersey.    

	Severability.  If any provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not
been included.

                                                    9

	Headings.  Headings in this Plan document are for purposes of reference only and will not limit or
otherwise affect the meaning hereof.

	Indemnification.  The Company hereby agrees to indemnify and hold harmless the officers and
employees of the Company, and the members of its boards of directors, from all losses, claims, costs or other liabilities arising from
their acts or omissions in connection with the administration, amendment or termination of the Plan, to the maximum extent permitted
by applicable law. This indemnity will cover all such liabilities, including judgments, settlements and costs of defense. The Company will
provide this indemnity from its own funds to the extent that insurance does not cover such liabilities. This indemnity is in addition to and
not in lieu of any other indemnity provided to such person by the Company by written agreement, by-laws, incorporation documents or
state law.

	Breach and Attorneys' Fees.  In the event that a Covered Employee breaches the waiver and
release attached as Exhibit B, to the fullest extent permitted by law (including the Employment Standards Act), the Company shall be
entitled to pursue all legal remedies against the Covered Employee and the Covered Employee shall be liable to the Company for its
reasonable attorneys' fees and costs incurred in pursuing such legal remedies.

	Representations by the Company.  Except as provided in Section 12 above, no employee, officer,
director, or agent of the Company has the authority to alter, vary, modify, or waive the terms and conditions of the Plan.  Except as
provided in Section 13 above, no verbal or written representations that are in addition to or contrary to the terms of the Plan and its
written amendments shall be binding on the Plan, the Administrator or the Company.

	Return of Company Property.  All property of the Company, including but not limited to keys, credit
cards, documents, records, office equipment, computers, cell phones, etc., must be returned by the Covered Employee to the Company
within five (5) business days of the Covered Employee's Involuntary Termination in order for the Covered Employee to receive the
Severance Benefit.

	Additional Information.

	
Plan Name:
	

NPS Pharmaceuticals, Inc. Change in Control Severance Pay Plan

	
Plan Sponsor:
	

NPS Pharmaceuticals, Inc.

   550 Hills Drive, 3rd Floor

   Bedminster, NJ 07921

   (908) 450-5300

 

	
Identification Numbers:
	

EIN: 87-0439579

   PLAN: 501

 

	
Plan Year:
	

Calendar year

 

                                                    10

	
Plan Administrator:
	

NPS Pharmaceuticals, Inc.

   Attention: General Counsel

 

   550 Hills Drive, 3rd Floor

   Bedminster, New Jersey  07921

   (908) 450-5300

 

	
Agent for Service of

                   Legal Process:
	

NPS Pharmaceuticals, Inc.

   Attention: General Counsel 

   NPS Pharmaceuticals, Inc.

   550 Hills Drive, 3rd Floor

   Bedminster, NJ 07921

   (908) 450-5300

                                                    11

EXHIBIT A

SEVERANCE PERIOD FOR EACH JOB CLASSIFICATION

 

1.Employees in Grades 8 -10:  9 Months Total Cash Compensation Target.

2.Non-Executive Team Vice Presidents (Grade 11):  12 Months Total Cash Compensation Target.

3.Executive Team Member* Vice President(s), Senior Vice President(s) and Executive Vice President(s) (Tiers 2-4):  18
Months Total Cash Compensation Target

4.Chief Executive Officer:  24 Months Total Cash Compensation Target

 

 

* Formal Executive Team "voting" members

 

                                                    12

EXHIBIT B

WAIVER AND RELEASE AGREEMENT

 

 

 

	For good and valuable consideration (as provided in paragraph 2 below), ____________________ (hereinafter the
"Employee"), with the intention of binding himself or herself and his or her heirs, executors, administrators and assigns,
does hereby release NPS Pharmaceuticals, Inc. and its affiliates and subsidiaries and their affiliated companies, divisions, subsidiaries,
successors, predecessors and assigns, and their respective present and former officers, directors, executives, agents, attorneys and
employees (collectively the "Released Parties"), of and from any and all claims, actions, causes of action, demands,
attorneys' fees and liabilities of whatever kind or nature in law, equity or otherwise, whether now known or unknown, federal or state,
which the Employee, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held,
against any Released Party arising out of or in any way connected with the Employee's employment relationship with the Released
Parties, or the termination thereof, up to the date of this Waiver and Release Agreement ("Release").  Such claims include
without limitation, any claims for severance or vacation or other benefits, unpaid wages, salary or incentive payment, breach of contract,
wrongful discharge, or employment discrimination under any applicable federal, state or local statute, provision, order or regulation
including, but not limited to, any claim under the Age Discrimination in Employment Act ("ADEA").  The Employee
specifically waives any and all claims for back pay, front pay, or any other form of compensation, except as set forth herein.

Notwithstanding the foregoing, the Employee does not waive rights, if any, the Employee may have to
unemployment insurance benefits or workers' compensation benefits.  The Employee does not waive any claims or rights under the
ADEA which may arise from events occurring after the date of this Agreement.

	In reliance on the releases and agreements set forth herein and pursuant to the NPS Pharmaceuticals, Inc. Change in Control
Severance Pay Plan ("Plan"), the Employee shall receive the gross amount of
______________________________________________________ ($__________), less applicable federal and state withholding
taxes, in accordance with Section 8.1.1 of the Plan.  The Employee acknowledges that he or she would not be entitled to the total
amount provided herein without signing this Release.

	The Employee acknowledges and agrees that neither the Plan nor this Release is to be construed in any way as an admission of
any liability whatsoever by any Released Party under any federal or state statute or the principles of common law, any such liability
having been expressly denied.

                                                    13

	The Employee acknowledges and agrees that he or she has not, with respect to any transaction or state of facts existing prior to
the date of execution of this Release, filed any complaints, charges or lawsuits against any of the Released Parties with any
governmental agency or any court or tribunal, and that he or she will not do so at any time hereafter.  The parties to this Release
understand that the Employee does not waive any rights or claims that may arise after the date that this Release is executed.

	The Employee acknowledges and agrees that it continues to be bound by the confidentiality provisions of the Employee Agreement
Concerning Invention Assignment, Non-Disclosure and Non-Competition.

	the event that the Employee breaches this Release, to the fullest extent permitted by law (including the Employment Standards
Act), the Company shall be entitled to pursue all legal remedies against the Employee and the Employee shall be liable to the Company
for its reasonable attorneys' fees and costs incurred in pursuing such legal remedies

	The Employee acknowledges that he or she has forty-five (45) days, commencing on the first day after his or her Separation
from Service with the Company, to sign this Release (the "Release Period").  In addition, once the Employee has signed this
Release, he or she shall have an additional period of seven days during which he or she may revoke the executed Release (the
"Revocation Period"), even if this has the effect of extending the seven-day revocation period beyond the 45-day period
referenced in the preceding sentence. If this Release is signed and not subsequently revoked, this Release becomes effective and
enforceable on the first business day after the expiration of the Revocation.

	The Employee further declares and represents that he or she has carefully read and fully understands the terms of this
Release and the Plan, that he or she has been given not less than forty-five (45) days, commencing on the date of the Employee's
Separation from Service, to consider this Release and, if applicable, the statistical data provided to him or her, that he or she has been
advised to seek, and has had the opportunity to seek, the advice and assistance of counsel with regard to this Release and the terms of
the Plan, and that he or she knowingly and voluntarily, of his or her own free will, without any duress, being fully informed and after due
deliberate thought and action, accepts the terms of and signs this Release as his or her own free act. In addition, the Employee
understands that once he or she has signed this Release, he or she shall have an additional period of seven days during which he or
she may revoke the executed Release, even if this has the effect of extending the seven-day revocation period beyond the
above-referenced 45-day period.

 

 

 

                                                    14

	The Employee acknowledges and understands that he or she may revoke a signed Release at any time
within the Revocation Period by sending a written notice of revocation to General Counsel, NPS Pharmaceuticals, Inc., 550 Hills Drive,
3rd Floor, Bedminster, NJ 07921 New Jersey 07054.  The Employee further understands that if he or she revokes this
Release, it shall not be effective or enforceable and he or she will not receive any payments or other benefits provided for in the Plan.
A signed and unrevoked Release shall not become effective or enforceable until the Revocation Period has expired, but shall be final
and binding on the next day after the last day of the Revocation Period.

DATED this ____ day of ______, 200__.

_______________________________________

   [Employee]

The foregoing instrument was acknowledged before me this ____ day of _____, 200__, by [Employee].

_______________________________________

 NOTARY PUBLIC

                   Residing at: __________________________

                                                    15Q3 2012 10-Q Exhibit 10.2

Exhibit 10.2

NOTE: CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS DOCUMENT AND REPLACED
BY "[*]". A COMPLETE COPY OF THIS DOCUMENT INCLUDING THE CONFIDENTIAL INFORMATION HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

   

COMMERCIAL MANUFACTURING AGREEMENT 

   

between

   

NPS Pharmaceuticals, Inc.

and

Vetter Pharma International GmbH 

Dated as of December 21, 2009

   

   

   

                                                   CONFIDENTIAL     

TABLE OF CONTENTS

ARTICLE 1:DEFINITIONS

ARTICLE 2:USE AND DISCLOSURE OF SPECIFICATIONS AND OTHER INFORMATION

ARTICLE 3:PRODUCTION

ARTICLE 4:MATERIALS

ARTICLE 5:LOSS OF PRODUCT

ARTICLE 6:INSPECTION AND TESTING OF THE PRODUCT

ARTICLE 7:PACKAGING AND DOCUMENTATION

ARTICLE 8:ROLLING FORECASTS; PURCHASE ORDERS; DELIVERY

ARTICLE 9:PRICE

ARTICLE 10:PAYMENT

ARTICLE 11:REPRESENTATIONS AND AGREEMENTS

ARTICLE 12:GOVERNMENT APPROVAL

ARTICLE 13:TRADEMARK

ARTICLE 14:INFRINGEMENT

ARTICLE 15:INDEMNIFICATION AND RECALL OF PRODUCT

                                                   CONFIDENTIAL     

ARTICLE 16:TERM AND TERMINATION

ARTICLE 17:FORCE MAJEURE

ARTICLE 18:CONFIDENTIALITY

ARTICLE 19:UNITED NATIONS CONVENTION

ARTICLE 20:LIMITATION

ARTICLE 21:TIMELY PERFORMANCE

ARTICLE 22:ENTIRE AGREEMENT

ARTICLE 23:CONFLICT

ARTICLE 24:AMENDMENTS

ARTICLE 25:ASSIGNMENT

ARTICLE 26:NOTICES

ARTICLE 27:HEADINGS

ARTICLE 28:ENGLISH

ARTICLE 29:GOVERNING LAW

ARTICLE 30:CHANGE CONTROL 

                                                   CONFIDENTIAL     

APPENDICES  

APPENDIX 1:PRODUCT

APPENDIX 2:YIELD

 

APPENDIX 3:TERRITORY

APPENDIX 4:INTENTIONALLY OMITTED

APPENDIX 5:INTENTIONALLY OMITTED

APPENDIX 6:INTENTIONALLY OMMITTED

APPENDIX 7:PRICES

APPENDIX 8A:TRADEMARKS OF VPI AND AFFILIATES 

APPENDIX 8B:TRADEMARKS OF NPS

APPENDIX 9:AGREED VALUE OF NPS' RAW MATERIALS 

APPENDIX 10:CONFIDENTIALITY AGREEMENT

APPENDIX 11:    QUALITY AGREEMENT

APPENDIX 12:INTENTIONALLY OMITTED

APPENDIX 13:ROLLING FORECASTS AND PURCHASE ORDERS

                                                   CONFIDENTIAL     

This Commercial Manufacturing Agreement ("Agreement"), made and entered into as of this
21st day of December, 2009, by and between NPS Pharmaceuticals, Inc., a company duly organized and existing under the
laws of the State of Delaware and having its principal place of business at 550 Hills Drive, Bedminster, NJ 07921 ("NPS"), and Vetter
Pharma International GmbH, a company duly organized and existing under the laws of Germany, having its principal place of business at
Schützenstrasse 87, 88212 Ravensburg, Germany ("VPI") (singly also referred to as "Party" and collectively as
"Parties").

WITNESSETH:

WHEREAS, NPS owns certain rights in the raw materials and the Product to be manufactured, in accordance with
the Specifications, for sale in the Territory; and

WHEREAS, VPI owns and possesses or has the right to use know-how for the manufacture of medical products
and is desirous of undertaking such manufacture for NPS on the terms and conditions herein; and

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter
set forth, and subject to the terms and conditions of this Commercial Manufacturing Agreement, the Parties hereto agree as follows:

ARTICLE
1:DEFINITIONS

For all purposes of this Commercial Manufacturing Agreement, and all amendments hereto, as well as the Quality
Agreement, as it may be amended, the terms defined in this Article 1 shall have the meanings herein specified, unless the context
otherwise requires:

	      "Affiliate" shall mean, in respect of NPS, any company or legal entity controlled by NPS, and, in the case of
VPI, any company or legal entity that is beneficially owned or held, directly or indirectly, by VPI (or the stockholders of VPF or the executor(s)
of the estate of Helmut Vetter, or any beneficiaries or heirs of Helmut Vetter or any such stockholder of VPF). As so used, "control" shall mean
that the ownership, directly or indirectly, of not less than a majority of the issued and outstanding shares of any class of capital stock, or of the
ownership interests, entitled to vote for the election of directors (or equivalent governing body or persons), is beneficially owned or held,
directly or indirectly, by NPS or VPI (or the stockholders of VPF or the executor(s) of the estate of Helmut Vetter, or any beneficiaries or heirs
of Helmut Vetter or any such stockholder of VPF), as the case may be. It is understood by the Parties that VPF (as defined below) is an
Affiliate of VPI.

                                                   CONFIDENTIAL     

	      "Agreement" shall mean this Commercial Manufacturing Agreement.

	      "API" shall mean recombinant parathyroid hormone (1-84) supplied [*]. 

	      "Approval Date" shall have the meaning set forth in Article 8(1).

	      "Batch" shall mean a batch [*] of Product at [*].

	      "Batch Record" shall mean the complete written record of the
history of the Batch and its production thereof as required under GMP and in accordance with the provisions of the Quality Agreement and the
Specifications.

	      "Business Day" shall have the meaning set forth in Article 26(1).

	       "COA" shall mean a certificate of analysis document for the
Product or any NPS Supplied Materials, Vetter Supplied Materials or Raw Materials, Components and
Packaging Materials as set forth in the Quality Agreement.  The COA for the Product will include the name
of the Product, the lot number and the date of production.  The COA for the Product will also list (i) the Product release Quality Control tests
performed by VPF and/or by contract testing laboratories, and (ii) actual test results.

	      "COC" shall mean a Certificate of Conformity document.  The COC for the Product will include a
statement that the Product has been Produced, tested and released in accordance with GMP and the Specifications.

	 "Change Control Procedure" shall mean the documented system utilized by VPF for the control of
quality related changes to the Product or the Production, all as set forth in more detail in the Quality Agreement.

	"Commencement Date" shall mean the date set forth in the first paragraph of this Agreement. 

	"Confidential Information" shall the meaning set forth in the
Confidentiality Agreement. 

	"Confidentiality Agreement" shall mean the Confidentiality Agreement attached hereto as Appendix
10.

	"Costs" shall have the meaning set forth in Article 18(2).

	"Development Agreement" shall mean the Development Agreement between the NPS and VPF dated
as of [*], as amended by them pursuant to the Amendment Agreement dated as of [*].

                                                   CONFIDENTIAL     

	"EMEA" shall mean the European Medicines Evaluation Agency.

	"Facility" shall mean the facility(ies) of VPF located in [*] used to Produce the Product. 

	"FDA" shall mean the United States Food and Drug Administration.

	"Final Release" shall mean release by NPS of the Product for use in humans.

	"[*]" shall have the
meaning set forth in Article 8(2)(b).

	"Force Majeure" shall have the meaning set forth in Article 17(1). 

	"GMP" shall mean the current Good Manufacturing Practices promulgated and officially published by
the Regulatory Authorities that are applicable to the Production of the Product.

	"Indemnity Agreement" shall mean that certain Indemnity Agreement entered into by and between NPS
and VPF and fully executed [*]. 

	"Information" shall mean, in respect of any Party (including for the purposes of this paragraph any Affiliate of a
Party) hereto, manufacturing, technical information and other information and other data, specifications, trade secrets, patents or patented
designs or processes and know-how, including, without limitation, such as may be embodied or evidenced in formulae, manufacturing data,
production specifications or other documents, as well as other tangible or intangible professional, scientific or technological information, and
any information or matter that a reasonable business person would or should know is confidential or proprietary and all such information and
data which is, directly and wholly, derived, or results, there from.

	 "Intellectual Property" shall mean patents, trade secrets, trade
marks, service marks, registered designs, lab notebooks, applications for any of the foregoing, trade and business names, unregistered trade
marks and service marks, copyrights, rights in designs, inventions, know-how, rights under licenses, consents, orders, statutes or otherwise in
relation to any such rights, and rights of the same or similar effect or nature, in any part of the world as well as SOPs and Specifications of
whatever nature or form. 

	"[*]" shall have the meaning set forth in Article 5(2).

	 "[*]" shall have the meaning set forth in Article 5(2).

                                                   CONFIDENTIAL     

	"[*]" shall have the meaning set forth in Article 5(2).

	"Major Default" shall have the meaning set forth in Article 16(2).

	"Manufacturer's Release" shall mean release by VPI of the Product to NPS for Final Release for use in
humans as set forth in the Quality Agreement provided.

	"Manufacturing Manual and Testing Specifications" or "Specifications" shall mean the
specifications and other technical information and instructions, as agreed to by NPS and VPF, concerning the manufacture, handling, testing,
storage and processing of the Product, in-process intermediates and Raw Materials, Components and Packaging Materials, all as set forth in
Appendix 5 to the Quality Agreement.  

	"NPS" shall have the meaning set forth in the first paragraph of this Agreement.

	"NPS Supplied Materials" shall mean the Raw Materials, Components and Packaging Materials
provided by, or sourced by, NPS as set forth in Appendix 2 to the Quality Agreement.

	"Party" and "Parties" shall have the meanings set forth in the first paragraph of this
Agreement.

	"Product" shall mean API together with those certain Raw Materials, Components and Packaging Materials
manufactured and labeled, [*] all in accordance with the Specifications as set forth in Appendix 5 of the Quality Agreement.

	"Product Specifications" shall mean the specifications which the Product must meet for Final Release
as set forth in Appendix 4 to the Quality Agreement.

	"Production" or "Produce" shall mean the manufacturing of the Product from the Raw Materials, Components and
Packaging Materials supplied as herein provided or contemplated, all in accordance with the Specifications set forth in Appendix 5 of
the Quality Agreement.

	"Product Specific IP" shall have the meaning set forth in Article
14(2).

	"Purchase Order" shall mean a purchase order signed by NPS which shall be [*] and shall be used for the purpose
of confirming quantities, and [*].

	"Quality Agreement" shall mean the agreement attached hereto as Appendix 11.

                                                   CONFIDENTIAL     

	"[*] " shall have the meaning set forth in Article 5(1).

	"[*]" shall have the meaning set forth in Article 5(1). 

	"[*]" shall have the meaning set forth in Article 5(1).

	"Raw Materials, Components and Packaging Materials" shall mean the pharmaceutical ingredients, supplies and
materials to be provided as herein contemplated all as set forth in Appendices 2 and 3 to the Quality
Agreement.

	"Regulatory Authority" (singly) or "Regulatory Authorities" (combined) shall mean the FDA,
the EMEA and German national health authorities.

	"Rolling Forecast" shall have the meaning set forth in Article
8(2)(a).

	"Root Cause" shall mean a deviation regarding the limits as set forth in the agreed
Specifications that becomes apparent, is discovered or otherwise detected ("detection") during Manufacturing or final analytical
testing of the Product, notwithstanding that VPF has, during the manufacturing and testing processes, followed the agreed Specifications, it
being understood and agreed that such detection is not necessarily possible during such manufacturing and testing processes.

	 "Specifications" shall mean the Manufacturing Manual and Testing Procedures.

	"Term" shall have the meaning set forth in Article 16.

	"Territory" shall mean [*] shall be subject in all respects to the provisions of Article 3(3) below.

	"VPF" shall mean Vetter Pharma-Fertigung GmbH & Co. KG.

	"Vetter Supplied Materials" shall mean the Raw Materials, Components and Packaging Materials
provided by or sourced by, as set forth in Appendix 3 of the Quality Agreement.

ARTICLE 2:USE
AND DISCLOSURE OF SPECIFICATIONS

AND OTHER INFORMATION

	NPS shall provide to VPI at NPS' own cost the Product Specifications as set forth in Appendix 4 of the Quality
Agreement.  NPS shall, from time to time, disclose to VPI changes in the Product Specifications and shall specifically

                                                   CONFIDENTIAL     

inform VPI if any such changes have, or could have, an adverse or negative chemical, physical or other effect on the Production or the Product provided NPS is, or
should be reasonably, aware of any such consequences. NPS shall bear all responsibility for the consequences of the failure to adequately
disclose or describe such effect or such information and shall bear all costs and expenses of VPI, it being understood and agreed that such
costs and expenses shall include that of its Affiliates, which may be associated with such changes in the Product Specifications.  The
Manufacturing Manual and Testing Specifications, including such part of NPS' Product Specifications relevant for the Production of the
Product (the "Specifications"), which shall be set forth in Appendix 5 of the Quality Agreement, shall be agreed upon as provided in
the Quality Agreement.   

	All changes concerning the Specifications, the Product Specifications, the Production or the Product, or testing
thereof shall be subject to the Change Control Procedure to be agreed upon as provided in and as set forth in the Quality Agreement.  In
addition, any changes that could reasonably affect the quality and efficacy of the Product including changes to the Facility, equipment used in
the Production, Raw Materials, Components and Packaging Materials, or testing thereof, shall be subject to the Change Control
Procedure.

	VPI shall have the Product Produced in accordance with the Specifications set forth
in Appendix 5 of the Quality Agreement, it being agreed and understood that VPI shall not Produce as herein provided or
contemplated but shall cause to have such Production done as by an Affiliate, namely VPF, in accordance with an agreement between VPI
and VPF.   It is further agreed that VPI shall cause VPF to enter into the Quality Agreement, attached hereto as Appendix 11, with
NPS

	In accordance with the Change Control Procedure, NPS shall be kept informed of, and NPS shall have the right to
pre-approve significant contemplated changes, including improvements, in the Vetter Supplied Materials to be incorporated in the Product. If
NPS does not agree to incorporate any such changes in the Product, VPI may cause the cessation of Production of the Product immediately if
these changes are necessary to comply with any laws or regulations as well as practices of Regulatory Authorities. If VPI agrees to cause the
continuation of the Production of the Product without the incorporation of such changes, and NPS has withheld its consent unreasonably, NPS
shall bear all responsibility (including any product liability) for the consequences of any such non-incorporation.

	In accordance with the Change Control Procedure, NPS may request that changes be incorporated in the manufacture of the Product, and VPI shall

                                                   CONFIDENTIAL     

cause the implementation of such changes, subject to VPI and
NPS agreeing to any necessary amendments to this Agreement, including, without limitation, price adjustment, capacity and ability of VPI's
Affiliate to incorporate such changes and approvals of any other customers of VPI as may be required.

ARTICLE 3:PRODUCTION

	VPI agrees to have Produced the Product from the Raw Materials, Components and Packaging Materials in
accordance with GMP and the Specifications. VPI shall sell and have delivered the Product, for the prices
herein set forth, and/or determined in accordance with the terms hereof, to NPS.

	NPS shall keep VPI informed of the legislation and the rules and the regulations of the Regulatory Authorities
which are particular to the Product and its Production, along with all relevant requirements of any other regulatory authority to which the Parties
may mutually agree in writing as provided in Article 3(3) below, and
shall specifically inform VPI of the effect of any changes thereof to the extent NPS has knowledge of such. VPI and its Affiliates shall have no
liability with respect to the Product, if VPI has cause the manufacture of the Product in accordance with GMP, the Specifications, the Product
Specifications and as otherwise specifically provided for herein. Changes to the Product Specifications are subject to the Change Control
Procedure.

	Notwithstanding anything to the contrary herein contained, VPI  shall not have to comply with, and is not required
to cause to comply, any requirements of any regulatory authority, other than Regulatory Authorities, in respect of any country within the
Territory, [*], unless and until NPS and VPI have agreed in writing as to how to address the consequences for VPI  and/or its Affiliates
concerning compliance with such requirements, including (i) any costs thereof for VPI, which may include costs of its Affiliates, it being
understood that such costs will have to be compensated to VPI by NPS, and (ii) technical requirements in respect thereof, which VPI shall
reasonably cause compliance provided it is reasonably technically feasible at the applicable Facility, and the issue of costs thereof has been
agreed to with NPS aforesaid, it being understood that VPI may decline to have incorporated or installed any such requirements if the
incorporation or installation thereof shall unreasonably interfere with the other operations of VPI or its Affiliates.

ARTICLE 4: MATERIALS

	NPS shall timely supply and deliver, as VPI shall direct, [*], the necessary quantities of NPS Supplied Materials
which are required to properly undertake

                                                   CONFIDENTIAL     

necessary preparations for Production and to timely fulfill NPS' Purchase Orders.  

The NPS Supplied Materials shall be used only for Production. NPS shall be notified by VPI of any surplus thereof
and any such surplus shall be disposed of, returned to NPS or otherwise handled, all as reasonably directed by NPS and at NPS' cost and
expense.

	NPS shall provide proper manufacturers' Certificate of Analysis and other appropriate data and certificates for NPS
Supplied Materials, as well as such other documentation as may be required by law, applicable Regulatory Authorities or as VPI may
reasonably request, or as may be requested under the Quality Agreement. Further NPS shall specifically inform VPI if NPS Supplied Materials
require any special handling or processing.In respect to certain NPS Supplied Materials, VPI shall have performed an identity (ID) test to
confirm the NPS Supplied Materials.  VPI has no other obligation to undertake, or have undertaken, any other testing or to otherwise certify the
same. Other than the ID testing, it is agreed that VPI and its Affiliates may rely completely on the correctness of the quality certificates issued
in respect thereof. 

	VPI shall have supplied all Vetter Supplied Materials required to timely fulfill NPS' Purchase Orders.

	VPI shall have examined, qualify and/or test all Vetter Supplied Materials in accordance with the Specifications.
Such examination shall involve the aforesaid together with the applicable Certificate of Analysis.

	Except for the obligations of Vetter to examine, qualify and/or test Vetter Supplied Materials, as set forth in
Article 4(4), Vetter shall have no obligation or liability with respect to any Vetter Supplied Materials. 

	With respect to the quality and the condition of the Raw Materials, Components and Packaging Materials,
including their conforming to the Specifications, or with respect to any other aspect thereof, Vetter shall have no obligation or liability, except as
herein otherwise provided. Other than as provided above in Article 4(2), it is agreed that Vetter shall have no obligation to make an
inspection thereof upon receipt from NPS of NPS Supplied Material and may rely completely on the correctness of the Certificate of Analysis
issued in respect thereof.

                                                   CONFIDENTIAL     

ARTICLE
5:LOSS OF PRODUCT 

	With respect to the Production of Product at [*], the Parties shall evaluate and mutually determine after completion
of both the [*], having regard to the previous calendar year's performance, to process enhancements, to the
relevant requirements of any Regulatory Authority, to GMP requirements and to all other relevant circumstances, it being understood and
agreed that the previous calendar year's performance shall not be determinative for such review and agreement. The Parties shall, at the end
of each calendar year, mutually determine and agree on the cumulative actual losses of NPS Raw Materials over the relevant calendar year
[*]. To the extent that the [*]
.. VPI shall reimburse NPS for the cost of any deficiency wherein the [*]
, all as set forth in Appendix 2, but in no event shall the combined total of the reimbursed amount(s)
[*]; provided, that such reimbursement shall only be made, if at all, after any [*]. 

	The Parties both acknowledge that, with respect to the Production of Product at [*], assessment of
quantitative Production factors cannot begin until observations after commencement of such Production; hence, the Parties shall evaluate and
mutually determine after completion of [*] which during the normal course of Production at the
[*] would be required and acceptable to
achieve a specified result, [*]; provided, however, that the Parties agree that, notwithstanding anything to the contrary herein, the targets in this
Article 5(2) are not firm commitments and VPI shall, in consultation with NPS, [*]. Until the [*] has been established as set
forth herein, all loss of NPS Raw Materials shall be borne by NPS. Such [*] shall not be applicable [*]. The first [*] shall subject to the foregoing,
apply for the remainder of the Batches Produced in that year following its determination. Thereafter, the [*] shall be reviewed annually and
agreed on by the Parties for each calendar year during the continuance of this agreement through good faith negotiations, having regard to the
previous calendar year's performance, to process enhancements, to the relevant requirements of any Regulatory Authority, to GMP
requirements and to all other relevant circumstances, it being understood and agreed that the previous calendar year's performance shall not
be determinative for such review and agreement. [*], to be used as set forth herein below.
Vetter shall reimburse NPS for the cost of [*]; provided, that such reimbursement shall only
be made, if at all, [*]. 

	VPI shall have the NPS Supplied Materials and Vetter Supplied Materials stored in accordance with GMP and
the Specifications and otherwise in accordance with standard operating procedures of VPF.

	NPS shall, at its own cost and expense, unless it shall self-insure, provide for and cover the costs of adequate
theft, casualty and extended loss insurance in an amount and on terms satisfactory to NPS for NPS Supplied Materials (whether included as
part of the Product or otherwise) during the course of

                                                   CONFIDENTIAL     

Production as well as all transportation, shipment and storage.  Notwithstanding anything
to the contrary contained in this Agreement, neither VPI nor any Affiliate of VPF shall have any obligation or liability to NPS (or any Party acting
in the name of or on behalf of NPS) in respect of the foregoing items in the occurrence of any theft, casualty or such extended loss, to the
extent that any loss or damage arising therefrom shall be, or could have been, covered by insurance or self-insurance as provided above; and,
furthermore, in the event that insurance coverage shall not be, or could not have been, available to NPS because of VPI's or any Affiliate of
VPI's conduct causing such loss or damage, the only liability shall be for [*] as set forth in Appendix 9 [*].  

ARTICLE
6:INSPECTION AND TESTING OF THE PRODUCT

	VPI shall cause a Manufacturer's Release to be provided to NPS prior to shipment and in accordance
with GMP.  The Manufacturer's Release shall include inspecting/testing of the Product, as set out in the Specifications.

	NPS agrees to inspect and test the Product in accordance with the release specifications set forth in the Product
Specifications. 

	NPS shall inspect and test all Product upon receipt and without delay, but in no [*] after receipt unless otherwise
agreed to by the Parties.   If such Product does not pass such inspection and testing, then NPS shall promptly notify Vetter of its rejection, and,
either shall return the rejected batch to VPI, at VPI's cost and expense, or shall otherwise dispose of the Product as agreed upon by the
Parties.

	Product which is not rejected as provided in Article 6(3) shall be deemed accepted and approved to the
extent that it contains any non-latent defect. Any Product which contains any latent defect shall be deemed accepted and approved unless
NPS shall notify VPI of its rejection thereof [*]. NPS agrees to notify VPI promptly after the discovery of any Product defect.

	VPI shall have no obligation to correct, or dispose of, any defective Product or supply a replacement
Product at its own cost, unless the defect is based solely on VPI's, or its Affiliate's, [*] to provide the Product in [*]; provided, however, that
there shall be no negligence if VPI  can show or have shown by way of the full batch documentation including a COA  as provided herein that
the Product has been manufactured in accordance with GMP, the Specifications and the Product Specifications.

	VPI shall cause the correction of any defective Product as provided in the Quality Agreement
that has been rejected in accordance with Article 6(3) or

                                                   CONFIDENTIAL     

otherwise, and if this is not possible, VPI shall, upon request, have supplied
a replacement Product. It is agreed that for the purposes hereof, NPS shall supply the necessary NPS Supplied Materials and that VPI shall
reimburse NPS for the value of the NPS Supplied Materials as set forth in Appendix 9.  

ARTICLE
7:PACKAGING AND DOCUMENTATION

	VPI shall cause that the Product be packaged as bulk cartridges, as set forth on Appendix 11.

	With each delivery of Product, VPI shall cause to be submitted to NPS documents customarily required from a
contract manufacturer for the applicable customs clearance in the Territory as set forth in the Quality Agreement. 

	VPI shall cause to be prepared a Batch Record for each Batch and VPI shall cause to be retained samples as
provided in the Quality Agreement. VPI agrees to have maintained such Batch Record documentation [*] as may be permitted by GMP.  VPI
shall notify NPS [*] to destroying any Batch Record documentation and shall send to NPS, or cause it to be dispose of at NPS' direction and
cost.

	For [*], NPS will receive [*].  Thereafter, for each Batch, VPI shall cause to be provided to NPS [*]. If NPS requires
any additional documents or information, the cost thereof will be separately charged.  If for any reason re-validation is required, VPI shall again
cause to be provided [*].  

ARTICLE
8:ROLLING FORECASTS; PURCHASE ORDERS; DELIVERY

	Preliminary Forecasts Prior to Approval.  NPS will provide to VPI a preliminary (prior to marketing approval as set
forth below) forecast on [*].  This preliminary forecast will [*]. This preliminary forecast will be subject to [*], of such preliminary forecast [*];
provided, however VPI may take [*].  NPS will inform VPI [*].  It is agreed that VPI may [*].

	Rolling Forecasts After Approval.  On or around the first day and at [*] after the Approval Date during the Term,
NPS shall inform VPI in writing of NPS estimated quantity requirements for the Product, by specifying prospective delivery dates during each of
the [*] as depicted in Appendix 12 hereof).  Each Rolling Forecast shall be subject to [*] of each such Rolling Forecast; provided that [*].

	The estimates set forth in a Rolling Forecast for [*], and NPS, along with each Rolling Forecast provided to VPI as
set forth in Article 8(2) above,

                                                   CONFIDENTIAL     

shall at the same time provide VPI with a Purchase Order in respect of [*] period covered by this
Article 8(2)(b), which shall specify the quantity of the Product desired and the date(s) by which delivery in accordance with
Article 8(4) below is to be made; provided that no such delivery date(s) shall be in advance of [*].  

	The estimates set forth in a Rolling Forecast for [*]; provided, however, that, , in subsequent Rolling Forecasts until
such time as the forecast in respect of a particular calendar month becomes subject to Article 8(2)(b) above, NPS [*], as the case may
be, of the quantity previously forecast and accepted by VPI for such particular month [*].

	The estimates set forth in a Rolling Forecast for [*] are not intended to be binding upon the Parties in any manner,
whereas the good faith intent of the Parties in respect of such portion of the Rolling Forecast is to facilitate VPI's need to advance plan for NPS
estimated requirements hereunder. 

	It is agreed and understood that, based upon the respective Rolling Forecast (upon which estimates, once
approved by VPI as set forth in Article 8(2)(a) above, VPI may reasonably rely), VPI shall have placed, in accordance with applicable
customary business practices, [*].

	NPS and VPI agree to discuss in good faith requested revisions to modify quantities or timing of deliveries which
fall outside the parameters of the binding portion of a Rolling Forecast.

	Purchase Orders.

	If a Purchase Order on its face appears to be duly signed by NPS, VPI may fully rely thereupon without
independent investigation, and such Purchase Order shall be valid and effective for all purposes hereof.  Each Purchase Order shall set forth
the quantity of the Product ordered, the date by which such Product is to be delivered, and the destination for delivery of such order. 

	VPI shall inform NPS [*].  VPI shall accept such Purchase Orders to the extent consistent with corresponding fixed
and binding periods within the Rolling Forecast (once the same has been approved by VPI as set forth in Article 8(2)(b) above) and
shall fulfill such Purchase Orders and conduct the Manufacturer's Release in order to ensure timely delivery of Product.

                                                   CONFIDENTIAL     

	Delivery.  VPI shall deliver, and NPS shall obtain title to, Product, ex Facilities (EXW Incoterms 2000). 

ARTICLE
9:PRICE

	In respect of the Product, NPS shall pay, subject to the provisions hereof, to Vetter the price determined in
accordance with Appendix 7, ex Facilities, plus any applicable Product taxes, governmental fees and assessments.  [*].

	(i) From time to time during the Term or any subsequent term hereof, VPI may adjust its prices to reflect an
increase to VPI, direct or indirect, in the costs of [*] to the extent that VPI can make an objectively reasonable demonstration of such increase
to NPS, which adjustment shall be effective in respect of all [*] which are subject to such price increase, whether direct or indirect, to VPI.

(ii) In addition, VPI may increase its other costs no more than once per year (on or about December 31) to reflect direct
or indirect, [*]. 

	If VPI shall adjust its prices to reflect an increase in the direct or indirect, cost of Production due to such overhead
expenses as described in Article 9(2)(ii) by [*], then VPI shall provide NPS with clear and objectively reasonable written evidence of
10(2)(ii).  If VPI shall adjust its prices to reflect such increase by [*], in this instance only, may, subject to the terms and conditions applicable to
[*], or seek an accommodation with VPI in which, provided that VPI has expressly consented in writing to the terms of such accommodation, if
any, NPS shall [*]. 

ARTICLE
10:PAYMENT

All payments shall be [*] issued in accordance with the terms hereunder and shall be made in Euro (EUR).  In the event
NPS pays (receipt of readily available funds by VPI) [*] of receipt of the invoice, then [*].  In the event NPS pays (receipt of readily available
funds by VPI) [*] of receipt of the invoice (except when payment is subject to a good-faith dispute), VPI shall be entitled to interest payments in
the amount of [*] the invoiced amount per month from and after such date and NPS shall add such interest accumulated in accordance with
this Article 10 as of the time of payment, to the invoiced amount with NPS' payment.

ARTICLE
11:REPRESENTATIONS AND AGREEMENTS 

	NPS Representations and Agreements:

                                                   CONFIDENTIAL     

	NPS represents and warrants that it has the right to provide NPS' Specifications and Product Specifications for
the purposes herein contemplated.

	VPI Representations and Agreements:

	VPI represents that after completion of the process validation the Production of Product (including the process,
plant, equipment and personnel) and the storage/release/delivery of Product will all be done or caused to be done in accordance within the
Specifications and GMP.

	VPI represents that it shall cause VPF to maintain all necessary permits and authorizations as required under
applicable laws Germany as well EMEA and US FDA and under GMP. 

	VPI represents that the Facility which will be used to commercially manufacture Product has undergone an FDA
inspection and VPI represents that neither it nor any Affiliate has received any FDA Warning Letters or similar EMEA notifications.  VPI
represents that it shall notify NPS within two (2) business days if VPI or any Affiliate receives any FDA 483s, FDA Warning Letters, or other
comparable FDA notifications (or similar European EMEA notifications) concerning the Product or if VPI or any Affiliate receives
communication or notification of any planned or unplanned inspection directed to the Product by the FDA or other regulatory authority during
the term of this Agreement.

	VPI represents that it will not have carried on any activities in a Facility which VPI or its Affiliate knows, as of the
date hereof, as evidenced by a writing from NPS to VPI, could prevent Product from being manufactured, packaged, released or stored in
accordance with this Agreement or the Quality Agreement.

	VPI represents that it, or its Affiliate, owns, controls or has the right to use the intellectual property used in the
Product and has the right to grant NPS and its sublicensees, the necessary license to such intellectual property to distribute, use and sell the
Product, provided, however such representation is limited to the laws of the European Union as composed prior to May 1, 2004 and the United
States.

	VPI represents and warrants that it has reviewed, or caused to be reviewed the Specifications and the Product
Specifications and that the Facilities are sufficient to Produce Product in accordance with such Product Specifications and Specifications.

                                                   CONFIDENTIAL     

	VPI represents that it will obtain, or cause to be obtained, NPS' written approval, not to be unreasonably
withheld, in advance of any changes concerning or having impact on the Product, all as set forth  in the Quality Agreement.

ARTICLE 12:GOVERNMENT APPROVAL

	NPS shall be responsible for obtaining and maintaining, at its cost, all
appropriate governmental approvals, consents and clearances for the matters herein contemplated, including the sale and distribution of the
Product in the Territory, and NPS shall not sell the Product without first securing such approvals, consents and clearances. For sake of
clarification, these costs shall include, but not be limited to, such costs associated with governmental audits of VPI or its Affiliate pertaining to
the Product. VPI shall cooperate, or shall cause the cooperation, and make and have made every reasonable effort, at NPS' expense, in
providing such information and other assistance as NPS may reasonably request to expedite all such governmental approvals.

	NPS understands and acknowledges that the Regulatory Authorities will have to approve the Production
of the Product at the Facilities and that VPI does not represent or warrant to NPS such approval.  VPI shall notify NPS, or cause that NPS be
notified, of any Regulatory Authorities inspections as provided in the Quality Agreement.

ARTICLE 13:TRADEMARK

	The trademark(s) set forth in Appendix 8A shall be and remain the property of VPI or an Affiliate and
NPS shall only have the right to use such trademarks in connection with the sale and distribution of the Product.

	The trademark(s) set forth in Appendix 8B shall be and remain the property of NPS and VPI and its Affiliate
shall only have the right to use such trademarks of NPS in connection with the packaging of the Product.

ARTICLE 14:
INTELLECTUAL PROPERTY; INFRINGEMENT

	Notwithstanding anything herein to the contrary,
each Party shall own and continue to own all of its pre-existing Intellectual Property existing prior to
the Effective Date, and, except as granted herein to the other Party, neither VPI, any of its Affiliates nor any third party
shall acquire any right, title or interest in any such pre-existing Intellectual Property of NPS and similarly, neither NPS nor any
third party shall acquire any right, title or interest in any such pre-existing Intellectual Property of VPI or its
Affiliate.

                                                   CONFIDENTIAL     

	Except as provided in Article 14(4), NPS shall
own and have the sole right to use the Intellectual Property developed under this Agreement (or the Quality Agreement) related to the Product;
provided, however, that such Intellectual Property relates solely to the API together with those certain Raw
Materials, Components and Packaging Materials and, provided further that such Intellectual Property when used in the Production of the
Product cannot be used separately from or without such API, wherein
such Intellectual Property includes Product-specific SOPs, Product-specific Specifications, Product test results, and Product Batch Records
(all such Intellectual Property referred to as "Product Specific IP"), for
all purposes, other than any Product Specific IP generated, in whole or in part, by VPI or its Affiliate which may not be used or disclosed in
connection with the production or manufacture of the Product by any party other than VPI and its Affiliate, it being agreed and understood that
this Agreement is being entered into by VPI with the understanding and objective of having the Product produced and manufactured through
VPI. VPI and its Affiliates, notwithstanding the foregoing, shall have the right to use the Product Specific IP for the satisfaction of VPI's
obligations under this Agreement and VPF's obligations under the Quality Agreement or any other agreement with NPS as well as VPI's or
VPF's agreements with Nycomed relating to the rights to a product acquired from NPS by Nycomed. 

	Except as provided in Articles 14(4) and 14(6),
VPI and its Affiliates shall own and have the sole right to use for all purposes all SOPs, Specifications and such other Intellectual Property that
does not constitute Product Specific IP. 

	Any Intellectual Property, whether conceived or made solely by one or more employees of one Party and/or an
Affiliate of a Party, or jointly by one or more employees of both Parties (and/or any Affiliate of a Party), which Intellectual Property relates solely
to the API shall be owned solely by NPS. 

	Any Intellectual Property, whether conceived or made solely by one or more employees of one Party and/or an
Affiliate of a Party, or jointly by one or more employees of both Parties (and/or an Affiliate of a Party), which Intellectual Property relates solely
to Production, including any process(es), [*], shall be owned solely by
VPI and/or its Affiliate. 

	Any Intellectual Property, which is not the property of NPS or the property of VPI or its Affiliate as above
indicated and is accordingly conceived or made solely by one or more employees of one Party (and/or any Affiliate of a Party), or jointly by one
or more employees of both Parties (and/or any Affiliate of a Party), and pertains to the API and/or the Product and to the Production of Product
only (and is therefore not applicable to the manufacture and supply of any other product) shall be the joint property of both Parties (or the
respective Affiliate as the case may be).  Neither Party

                                                   CONFIDENTIAL     

(nor any Affiliate of a Party) shall use such jointly owned Intellectual Property without
the prior written consent of the other Party (or such Affiliate, as the case may be). 

	Each Party shall promptly notify the other Party of any Intellectual Property which is conceived or made solely
by one or more employees of such notifying Party (and/or any Affiliate of such Party) or jointly by one or more employees of both Parties
(and/or any Affiliate of such Party) (which constitutes joint property under Article 14(5) or in respect of which such notifying Party has an
obligation to other Party as hereinafter set forth in this Article.  

	NPS hereby grants and transfers to VPI (or upon the request of VPI an Affiliate of VPI) any and all of the rights
that NPS may have to any Intellectual Property referred to or described in Article 14(5).  NPS agrees to execute all such agreements
necessary to effect the foregoing.

	VPI hereby grants and transfers, or shall cause to be granted and transferred, to NPS any and all of the rights
that VPI or any Affiliate of VPI may have to any Intellectual Property referred to or described in Article 14(4).  VPI agrees to, and shall cause its
Affiliates to, execute all such agreements necessary to effect the foregoing.

	NPS shall be solely responsible, at its discretion, for the filing, prosecution, and maintenance of all Intellectual
Property that is owned by NPS as above provided.  

	VPI shall be responsible, at its discretion, for the filing, prosecution, and maintenance of all Intellectual
Property that is owned by VPI or any of its Affiliate as above. 

	NPS and VPI shall be jointly responsible for the filing, prosecution and maintenance of all Intellectual Property
which is jointly owned by NPS and VPI, (and/or an Affiliate of VPI or NPS as the case may be), as above provided and any costs associated
therewith shall be shared equally.

	The Parties shall co-operate with each other (or any Affiliate of the other Party as the case may be) in
registering all Intellectual Property rights herein contemplated as reasonably required.

	NPS hereby grants a license to VPI and its Affiliate, VPF, to all of the Intellectual Property NPS owns or
otherwise has rights to, including under licenses, required by VPI or said Affiliate for the Production for NPS as contemplated under this
Agreement and the Quality Agreement.  The license

                                                   CONFIDENTIAL     

is irrevocable for the term of this Agreement, royalty-free, non-exclusive, non-transferable,
and non-sub-licensable and solely for the purpose of Production for NPS as contemplated under this Agreement.

	VPI agrees, upon the request of NPS, that it shall in good faith negotiate with NPS for a grant to NPS of a
non-exclusive license in respect of such nations as may be mutually agreed, which shall include appropriate indemnifications of VPI and its
Affiliates for the use of the license, to any Intellectual Property developed hereunder or the Quality Agreement and owned by VPI or any of its
Affiliate, whether solely or jointly, as above provided, for which Intellectual Property a patent has been applied for by VPI and/or its Affiliate.

	NPS shall defend, indemnify and hold harmless VPI and its Affiliates from and
against any and all claims, actions and/or proceedings (including damages and reasonable attorneys fees) based upon any assertion that NPS
Supplied Material, or Information of NPS or materials provided by NPS in connection herewith or the use by VPI and/or its Affiliate of such
NPS Supplied Material, or Information of NPS (except to the extent that it is developed by or proprietary to VPI and/or
its Affiliates) or materials provided by NPS infringes or otherwise violates any third party's patent, trademark or other intellectual proprietary
rights.

	VPI shall defend, indemnify and hold harmless NPS from and against any and all
claims, actions and/or proceedings (including damages and reasonable attorneys fees) based upon any assertion that Information of VPI or
any of its Affiliates or the Production of Product (other than for claims, actions and/or proceedings subject to indemnification pursuant to Article
15) or the use by NPS of such Information of VPI and/or its Affiliates (except to the extent that it is developed by or proprietary to NPS)
infringes or otherwise violates any third party's patent, trademark or other intellectual proprietary rights in the countries of the European Union
as composed prior to [*] and the United States.

	The Parties shall keep each other informed about any such claims, actions and/or
proceedings, and shall provide reasonable cooperation to each other in the defense of any such claim, action and/or proceeding at the expense of the indemnifying Party.  The indemnifying Party shall not settle any
such claim, action and/or proceeding [*].

ARTICLE
15:INDEMNIFICATION AND RECALL OF PRODUCT

	VPI and NPS shall each indemnify and hold the other, including each other's Affiliates harmless from and against
any and all claims of any third party, which shall not include an Affiliate of VPI or NPS, as the case may be, resulting from

                                                   CONFIDENTIAL     

or arising out of any negligence by VPI (and/or Affiliate of VPI) or NPS, as the case may be, or any breach by VPI (including in respect of  VPI for the purposes
hereof a breach by VPF of the Quality Agreement) or NPS, as the case may be, of its representations, warranties, agreements or other
obligations contained in this Agreement. In amplification of the foregoing, and not in limitation thereof, NPS shall indemnify and hold VPI and
its Affiliates harmless from all Costs in excess of the amount subject to insurance coverage as in Article 15(4) provided or which arise
out of VPI's or its Affiliate's compliance with the Product Specifications or any other instruction or direction by NPS, the use of the NPS
Supplied Material or the distribution, sale or use of the Product. [*], which means, among other matters, VPI and its Affiliates may rely on the
correctness and completeness of the Product Specifications and any other instruction of NPS, are followed. NPS shall indemnify VPI and its
Affiliates as set forth herein, except to the extent such costs or loss has arisen from VPI's or its Affiliate's [*].  Compliance with the obligations
under the foregoing sentence shall be deemed conclusively proven by the batch documentation provided in accordance with this Agreement or
the Quality Agreement. 

	The Parties shall promptly notify each other of any claims and suits brought or threatened and shall permit the
other Party to join in the defense thereof.

	It is understood that neither VPI nor any Affiliate of VPI warrants to NPS or any other party materials manufactured
or supplied by any third party, provided, however, VPI agrees to transfer, or cause to be transferred, to NPS any warranties of such parties in
respect of such materials.  

	During the term of this Agreement, all renewal terms, and for [*], VPI shall maintain, general liability insurance,
including product liability insurance, as long as commercially reasonable and practicable, for a sum of not less than [*] per property damage,
with a reputable insurance company, which insurance amount shall be reduced by the cost of any attorneys.  VPI shall furnish to NPS, upon
request, a certificate of insurance evidencing compliance with the requirements of this Article 15(4).  VPI shall provide to NPS written
notice of any cancellation or material change in such insurance not less than thirty (30) days prior to the date of such cancellation or change.

	After the Approval Date, NPS shall maintain [*], with a reputable insurance company, to
support its obligations to VPI and its Affiliates and related as set forth in Article 15.1, and such insurance shall be maintained for [*] or expiration of this Agreement, whichever is the later period. In the event
that said insurance is subject to cancellation or materially adverse changes, including but not limited to, reduction of coverage, this Agreement,
including the Production obligations of VPI herein contemplated, may be terminated at

                                                   CONFIDENTIAL     

VPI's option. It is furthermore agreed and understood by
NPS that the coverage of abovementioned insurance sum shall extend to NPS' indemnity obligations under this Agreement, and NPS shall, if
so requested by VPI, produce the policy of insurance and a receipt for the then-current premium to VPI for VPI's inspection. [*].

	In the event that any Product is recalled by order of any government authority, neither VPI nor any Affiliate of VPI
shall have any liability with respect to such recall unless such recall is [*] VPI's or its Affiliate's, [*], in which event VPI, as it may determine,
shall [*] the amount paid by NPS to VPI in respect of the recalled Product as set forth in Article 6(4) and [*].

ARTICLE
16:TERM AND TERMINATION

	This Agreement shall be effective for a [*], commencing on the Commencement Date. Thereafter, this Agreement
shall automatically renew for terms of [*].  

	Each Party has the right to terminate (with immediate effect or, if applicable, after the expiration of [*] hereinafter
referred to) this Agreement upon prior written notice in the event the other Party (including in respect of VPI, VPF) is in major default in the
fulfillment of any obligation hereunder (or in the case of VPI, VPF is in major default under the Quality Agreement). The term "major default"
shall include, but not be limited to:

	the insolvency, bankruptcy or liquidation of a Party (or in the case of VPI, of VPF) or the appointment of a receiver
of any significant part of the property of a Party (or in the case of VPI, of VPF) or the occurrence of any similar event; and

	in respect of NPS, the failure to pay any amount when due or in the case of any other default which can be cured,
the failure to remedy or make good the default during [*] after the giving of any notice specifying such default. If such [*] notice has been given,
no additional notice shall have to be given to effect the termination of this Agreement.

	the demand by any Regulatory Authority that VPI or its Affiliates, VPF, should implement any changes which are
related to Product and for which NPS reasonably declines to pay, provided such amount is in excess [*].  

	in respect of NPS, the failure of VPI or its Affiliates, not attributable to NPS, to produce or have produced Product
in accordance with the

                                                   CONFIDENTIAL     

Specifications, and/or the Product Specifications or the Purchase Orders for such Product for a period extending beyond [*].

	in respect of VPI, failure of its Affiliate, VPF, to pass Regulatory Authority inspection by EMEA and such failure is
not cured [*].

	Upon any termination of this Agreement, for any reason whatsoever, VPI shall sell to NPS, and NPS shall
purchase, at the prices herein provided, all Product for which Purchase Orders have been placed, or are required to be placed, on or prior to
the date of termination, and, at the cost thereof, all components and other materials as have been ordered as contemplated or permitted in this
Agreement,.

VPI shall also deliver or have delivered, unless otherwise directed by NPS, to NPS, at its cost and expense, any
quantities of NPS Supplied Material in VPI's or its Affiliate's possession. VPI shall also return, or cause to be returned, to NPS all
documentation constituting Information of NPS (including copies thereof) which has been provided by NPS to VPI or its Affiliates in connection
herewith. Notwithstanding the foregoing, VPI may retain, or cause to be retained, such limited amount of Product, NPS Supplied Material as
well as such documentation, as may be necessary for proper record keeping or the satisfaction of, GMP and/or legal requirements.

	NPS shall return to VPI all documentation constituting Information of VPI or any of its Affiliates (including
copies thereof) which has been provided by VPI, or cause to be provided, to NPS hereunder; provided, however, NPS may retain such limited
number thereof as may be necessary for proper record keeping or the satisfaction of, GMP and/or legal requirements.

	If NPS
terminates the [*]. 

	The provisions of Articles 13, 14, 15, 18 and 20, and related provisions, as well as any other provisions
and obligations by their terms would reasonably not terminate or expire, shall survive any termination or expiration of this
Agreement.

ARTICLE 17:FORCE MAJEURE

	Neither Party, nor any Affiliate of a Party, shall be responsible to the other for failure or delay in performing any of
its obligations under this Agreement or for other non-performance hereof if such failure, delay or non-performance is caused by or arises from
strike, stoppage of labor, lockout or any other labor trouble, shortage of energy or raw material or any other inability to obtain any

                                                   CONFIDENTIAL     

materials or shipping space, breakdown or delays of carriers or shippers, default or delay by any supplier or sub-contractor, fire, flood, lightning, fog, storm,
or other unusual weather conditions, explosion, accident, earthquake, epidemics, act of God, any public enemy, sabotage, invasion, war
(declared or undeclared), riot, embargo, governmental or administrative act or restraint, prohibition on import or export of the Product or
materials incorporated therein or parts thereof, or any other cause that is unavoidable or beyond the reasonable control of the affected Party
(or in the case of VPI, VPF), including such events which stem from the internalization of such operations and services which typically and
customarily are provided by a third party (any such matter or cause, "Force Majeure"). A Party (or in the case of VPI, VPF) shall be under no
obligation to settle a strike, labor stoppage, lockout, or any other labor trouble by entering into any agreement to settle such matter and until
such matter is settled to the satisfaction of the affected Party (or in the case of VPI, VPF), such matter shall continue to be a matter beyond the
reasonable control of the affected Party (or in the case of VPI, VPF).

	The Party claiming Force Majeure hereunder shall promptly notify the other specifying the cause and probable
duration of the delay or non-performance. VPI shall be under no obligation to fulfill any Purchase Orders which have been, or should have
been, scheduled to be performed during a time period of Force Majeure; however, each affected Party shall undertake, or cause to be
undertaken, every reasonable effort to fulfill its contractual obligations to the extent reasonably possible under the circumstances.

	If VPI claims Force Majeure hereunder and is not able to have produced Product for a period extending beyond
ninety (90) days, then NPS shall have the right to terminate this Agreement pursuant to paragraph 17(2)(d).

ARTICLE
18:CONFIDENTIALITY

	The provisions of the Confidentiality Agreement shall govern this Agreement in
every respect; except that this confidentiality obligation shall survive the termination of this Agreement and shall
remain in full force and effect for a period of [*] of either the initial or any renewal term of this Agreement whichever may be later.

	VPI and NPS hereby each agree to indemnify and hold the other harmless from all [*], for any violation of the
provisions of this Article 18.

                                                   CONFIDENTIAL     

ARTICLE
19:UNITED NATIONS CONVENTION

Notwithstanding anything herein to the contrary contained in this Agreement, the United Nations Convention on
Contracts for the International Sale of Goods shall have no application to, and shall be of no force and effect with respect to, this Agreement or
the matters herein set forth or contemplated.

ARTICLE
20:LIMITATION

	Notwithstanding anything to the contrary in this Agreement contained, neither Party (including any Affiliate of a
Party) shall be responsible or liable to the other or any Affiliate of the other (even upon the occurrence of a tort with respect to the Product or
otherwise) for loss of profits (except any profits, as contained in the prices herein provided, to which VPI may be entitled for performance of its
contractual obligations hereunder), loss of goodwill, loss of business, or special or consequential or indirect damages.

	
EXCEPT AS IN THIS AGREEMENT SET FORTH, THE PARTIES, INCLUDING IN RESPECT OF VPI ITS AFFILIATE VPF, DO NOT MAKE ANY OTHER REPRESENTATION,
WARRANTY, COVENANT OR AGREEMENT (WHETHER EXPRESS OR IMPLIED) WITH RESPECT TO THE PRODUCT.
ANY REPRESENTATION, WARRANTY, COVENANT OR AGREEMENT SET FORTH IN THIS AGREEMENT (INCLUDING FOR THE PURPOSES HEREOF THE QUALITY AGREEMENT)
IS EXCLUSIVE AND IN LIEU OF ANY OTHER WARRANTIES, WRITTEN OR ORAL, DIRECT, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO,
EXPRESS OR IMPLIED WARRANTIES FOR MERCHANTABILITY, QUALITY OR FITNESS FOR A PARTICULAR PURPOSE.
.

ARTICLE
21:TIMELY PERFORMANCE

Failure by a Party, at any time, to require performance by the other Party or to claim a breach of this Agreement,
unless reduced to writing, will not be construed as a waiver of any right under this Agreement, nor affect any subsequent breach nor affect the
effectiveness of this Agreement or any part hereof, nor prejudice such Party with respect to any subsequent action.

                                                   CONFIDENTIAL     

ARTICLE
22:ENTIRE AGREEMENT

	This Agreement, together with all Appendices attached hereto,  constitutes the entire agreement between the
Parties with respect to the subject matter hereof and supersedes in all respects all prior proposals, negotiations, conversations, discussions
and agreements between the Parties concerning the subject matter hereof, including the Development Agreement and the Indemnity
Agreement.

	Any term of this Agreement which might be, or become, void, invalid or unenforceable shall be replaced by
mutually agreed terms in compliance with the commercial and lawful purposes of this Agreement. The voidance, invalidity or unenforceability
of the entire Agreement remains independent of any void provision, except in the event the Parties would not have entered into this Agreement
without these significant provisions.  

	In case of any gap in this Agreement a reasonable provision shall be effective in order to complete this Agreement
approaching to what the Parties would have agreed upon if they would have considered that point.

ARTICLE
23:CONFLICT

In the event that there should be any conflict between any provision of this Agreement and any other agreement
between the Parties, the provisions of this Agreement shall govern in all respects.

ARTICLE
24:AMENDMENTS

Any amendment to or alteration of the provisions herein contained, including this Article 24, shall take effect
only by a written document signed by the duly appointed representatives of both Parties.

ARTICLE
25:ASSIGNMENT

Neither this Agreement nor any rights hereunder shall be assignable or transferable by either of the Parties hereto
without the prior written consent of the other Party; provided, however, that [*].

ARTICLE
26:NOTICES

	All notices, requests, demands and other communications hereunder shall be addressed as follows (or to such
other address, telex number with confirmed answer back or fax number as each Party hereto may specify herein or in a notice pursuant to this
Article 26) and be deemed to have been duly given

                                                   CONFIDENTIAL     

upon receipt (provided receipt is on Monday, Tuesday, Wednesday, Thursday or
Friday which is not a national holiday at the place of receipt and during normal business hours of the recipient (the "Business Day"), otherwise
on the next succeeding Business Day), when delivered personally, mailed by registered or certified mail, return receipt requested or telexed
with confirmed answer back or faxed:

	
To NPS:	
 	
NPS Pharmaceuticals, Inc.
	
 	
 	
550 Hills Drive
	
 	
 	
Bedminster, New Jersey
	
 	
 	
07921 U.S.A.
	
 	
 	
Attn:  Legal Department
	
 	
 	
 
	
To Vetter:	
 	
Vetter Pharma International GmbH
	
 	
 	
Eyewiesenstrasse 5
	
 	
 	
88212 Ravensburg
	
 	
 	
Germany, Fed. Rep. Of
	
 	
 	
Attn.:  Director of Key Account 
	
 	
 	
Management

	Each Party hereto may change its address set forth above by giving notice to the other Party as herein
provided.

ARTICLE
27:HEADINGS

The headlines of the Articles hereof are for convenience of reference only and shall not affect the interpretation of the
respective Articles of this Agreement.

ARTICLE
28:ENGLISH

All notices and other communications hereunder shall be in English.

ARTICLE
29:GOVERNING LAW

This Agreement shall be construed in accordance with and governed by the [*] without giving effect to any conflict-of-
laws provisions and the competent [*] shall have exclusive jurisdiction.

ARTICLE 30:CHANGE CONTROL

This Agreement shall not be assigned or transferred by either Party without the other Party's prior written
consent.  Either Party shall give advance written notice to the other Party or any pending change of control of the former Party (meaning the

                                                   CONFIDENTIAL     

transfer - which transfer shall include, but not be limited to, change in stock ownership, asset sale, merger and reverse triangular merger - of
all, or substantially all, the business of such Party) to a third party and the Parties shall discuss and mutually agree on the further
proceedings.

* * * * *

   

   

   

   

                                                   CONFIDENTIAL     

IN WITNESS WHEREOF, the duly authorized representatives of the Parties hereto as of the day and year first
above written have executed this Agreement.

   

	
NPS PHARMACEUTICALS, INC.: 	
 	
VETTER PHARMA
	
 	
 	
INTERNATIONAL GmbH 
	
 	
 	
& Co. KG
	
 	
 	
 
	
 	
 	
 
	
(signed) /s/ FRANCOIS NADER 	
 	
(signed) /s/ PETER SOELKNER
	
Name: Francois Nader	
 	
Name: Peter Soelkner
	
Title: President and 	
 	
Title:    Managing Director

	
Chief Executive Officer	
 	
 
	
 	
 	
 
	
 	
 	
 
	
 	
 	
(signed)  /s/ EUGEN FRASCH
	
 	
 	
Name:    Eugen Frasch
	
 	
 	
Title         Key Account Manager

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 1:PRODUCT

   

INTENTIONALLY LEFT BLANK

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 2:  

YIELD

[*]

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 3:TERRITORY

[*]

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 4:  INTENTIONALLY OMITTED

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 5:  INTENTIONALLY
OMITTED

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 6:  INTENTIONALLY
OMITTED

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 7:  PRICES

 

[*]

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 8A:  TRADEMARKS OF VPI and AFFILIATES

NONE LISTED

   

   

   

   

APPENDIX 8B: TRADEMARKS OF NPS

NPS

NPS

PREOS  

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 9:  AGREED VALUE OF NPS' RAW MATERIALS

[*] 

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 10:  CONFIDENTIALITY AGREEMENT

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 11 QUALITY AGREEMENT

   

   

   

   

                                                   CONFIDENTIAL     

APPENDIX 12:ROLLING FORECASTS AND PURCHASE
ORDERS

[*]

   

   

   

   

                                                   CONFIDENTIAL

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]