Document:

EX-10.8  MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

Exhibit 10.8

Execution Copy

MEMBERSHIP INTEREST PURCHASE AGREEMENT

     THIS
AGREEMENT is made and entered into this 28th day of
August 2006, by and between
SIRION THERAPEUTICS, INC., a North Carolina corporation (or its assigns) (the “Purchaser”)
and THE BUTLER PARTNERSHIP, INC., a Florida corporation (“Butler”) and ROGELLEN PARTNERS, INC., a
Florida corporation (“Rogellen” and, together with Butler, the “Sellers”).

W I T N E S S E T H:

     WHEREAS, the Sellers collectively own all the issued and outstanding limited liability company
membership interests in RX DEVELOPMENT RESOURCES, LLC, a Florida limited liability company (the
“Company” or “RXDR”), the ownership of such interests specifically being set forth
on Schedule 4(d) hereto (the “Purchase Interests”); and

     WHEREAS, the Purchaser desires to purchase from the Sellers, and the Sellers desire to sell to
the Purchaser, the Purchase Interests, upon the terms, conditions and assurances hereinafter set
forth.

     NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

     1. Sale and Purchase of the Purchase Interests. The Sellers agree to sell to the
Purchaser, and the Purchaser hereby agrees to purchase from the Sellers, the Purchase Interests,
upon the terms and subject to the conditions hereinafter set forth.

     2. Consideration.

          (a) Earn-Out. In consideration of the sale by the Sellers of the Purchase Interests,
the Purchaser shall pay to the Sellers an aggregate amount (the “Earn-Out Consideration”)
as calculated and provided for under Section 2(b) below and pursuant to the terms and conditions
thereof. Each Seller shall be entitled to receive one-half of each quarterly payment made under
Section 2(b) and one-half of the aggregate Earn-Out Consideration.

          (b) Calculation and Payment of Earn-Out Consideration. The “Earn-Out Consideration”
paid to Sellers by Purchaser shall be an amount equal to fifteen percent (15%) of the Contract
Services Revenues generated during the 36-month period following the Closing, starting with the
month in which the Closing occurs and ending on the last day of the 36th consecutive
month thereafter (the “Earn-Out Period”). Payments of the Earn-Out Consideration shall be
made on a quarterly basis, with each payment due and payable no later than the 30th day
following the last day of the applicable quarterly period.

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          For purposes of this Agreement:

          “Contract Services Revenue” means any and all cash amounts collected by the Company or its
Affiliates based on revenue generated by Contract Services performed by the Company or any
Affiliate of the Company for or on behalf of any Person that is not an Affiliate of the Company.
“Contract Services” means clinical trial services (including consulting services), regulatory
services (including consulting services), commercial consulting, strategic consulting, and medical
education programs and services, as well as any other services provided or made available by the
Company prior to the Closing Date. “Contract Services” shall not include revenue generated by
sales, marketing or promotional services of the type that were not provided or offered by the
Company prior to the Closing Date;

          “Affiliate” means, with respect to any Person, any other Person, directly or indirectly,
controlling, controlled by or under common control with such Person. For purposes of this
definition a Person is deemed to “control” an Entity if such Person, directly or indirectly, (i)
has the power to direct the management or policies of such Entity; or (ii) owns, beneficially or of
record (a) an amount of voting securities or other interests in such Entity that is sufficient to
enable such Person to elect at least a majority of the members of such Entity’s board of directors
or other governing body or (b) at least fifty percent (50%) of the outstanding equity or financial
interests of such Entity;

          “Entity” shall mean any corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, limited liability company, joint
venture, estate, trust, company (including any limited liability company or joint stock company),
firm or other enterprise, association, organization or entity; and

          “Person” shall mean any natural person or Entity.

     3. Closing. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of the Purchaser contemporaneously with the
execution hereof (the “Closing Date”).

     4. Representations and Warranties of the Seller. Each of the Sellers, for and on
behalf of itself and the Company, jointly and severally, hereby represents and warrants to
Purchaser as follows:

          (a) Organization and Authority. Each of the Company and such Seller is duly
organized, validly existing and in good standing under the laws of Florida and has all requisite
limited liability company power and authority to carry on its business as it is now being conducted
and to own the properties and assets owned by it.

          (b) Authority Relative to this Agreement. Such Seller has the requisite power and
authority to execute, deliver and perform this Agreement and to execute, deliver and perform
additional documents and to take all actions necessary or appropriate to consummate the transaction
contemplated in this Agreement. The execution, delivery and performance of this Agreement and all
other agreements, instruments and documents to be executed by such Seller in

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connection herewith have been duly and validly authorized by all necessary limited liability
company and other action.

          (c) Enforceability. This Agreement has been, and on the Closing Date the other
documents to be executed and delivered by such Seller pursuant hereto or contemplated hereby will
be, duly and validly executed and delivered by such Seller and constitute (or upon such execution
and delivery will constitute) legal, valid and binding obligations of, and enforceable against such
Seller in accordance with his respective terms.

          (d) Capitalization and Ownership of Purchase Interests. Such Seller owns all of the
issued and outstanding membership interests of the Company set forth opposite the name of such
Seller on Schedule 4(d) hereto. The Sellers are the only members and owners of the Company, and
the Purchase Interests set forth on Schedule 4(d) hereto collectively represent 100% of the issued
and outstanding equity interests in the Company. There are no outstanding or committed but not yet
issued or effective warrants, options, subscription, conversion or other rights, puts, calls or
other agreements of any nature providing for the issuance of any additional membership interests of
the Company, and there are no agreements for the future issuance of any such warrants, options,
rights, etc.

          (e)
Title to Purchase Interests. All the Purchase Interests are validly issued and
outstanding, fully paid, and nonassessable. Such Seller has good and valid title to all the
Purchase Interests owned by it, and such Purchase Interests are not, nor with the passage of time
will they be, subject to any escrow, guaranty, judgment, agreement, lien, security interest,
collateral assignment, chattel mortgage, pledge, assignment, assessment, charge, UCC-1 financing
statement, or other encumbrance whatsoever. When transferred and assigned to the Purchaser, the
Purchaser will hold good and marketable title to such Purchase Interests free and clear of all
liens, claims and encumbrances of any kind or nature whatsoever.

          (f) No Violations. Neither the entering into of this Agreement nor the consummation
of the transactions contemplated hereby will conflict with or constitute or result in a violation
or breach of (i) the Articles of Organization or operating agreement (or comparable agreement) of
the Company, (ii) any other corporate documents or agreements by which the Company or such Seller
is bound or by which any properties or assets of the Company are bound, (iii) any judgment, order,
writ, injunction or decree issued against or imposed upon any of them, (iv) any applicable law,
order, rule or regulation of any governmental authority, or (v) any other contract or arrangement
to which the Company or such Seller is bound.

          (g) Consents and Approvals. There are no consents, approvals, orders, or
authorizations of, or registrations, qualifications, designations, declarations, or filings with,
any governmental authority required on the part of such Seller or the Company in connection with
the transactions contemplated by this Agreement.

          (h) Compliance with Laws. The Company has complied and is in compliance in all
applicable jurisdictions with all existing laws, ordinances, orders, rules and regulations bearing
on the ownership, use or operation of the assets of the Company and the operation of its business.

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          (i) Tax Matters. The Company is a Florida limited liability company that has elected
to be disregarded for federal income tax purposes, which election is still valid and effective.
Such Seller is not aware of any facts or circumstances that might act to revoke such election or
otherwise not permit such election to remain effective for the Company in the future. The Company
has prepared and timely filed all federal, state and local tax returns and reports (whether solely
informational, or otherwise) as are or have been required to be filed by the Company (including,
without limitation, income, franchise, sales and use, SUTA), and all taxes shown thereon to be due
have been paid in full. No accrued and unpaid taxes of any kind (whether income, franchise, sales,
use, SUTA or other) exist, and no claims have been made or asserted by the United States Government
or by any state or local government for income or any other taxes or assessments.

          There are no actions or proceedings currently pending or, to the knowledge of such Seller,
threatened against the Company or such Seller by any governmental or regulatory authority for the
assessment or collection of any taxes, nor to the knowledge of such Seller are there any
conditions, facts or circumstances that could reasonably indicate any such action or proceeding may
be instituted; (ii) no audits or other examinations of any tax return of the Company are in
progress nor has the Company or such Seller been notified of any request for examination; (iii) no
claims for assessment or collection of taxes have been asserted against the Company; and (iv) there
are no matters under discussion between the Company and any governmental authority regarding claims
for assessment or collection of taxes against the Company, and such Seller has no reason to believe
that any such claims for taxes will be asserted.

          (j) Absence of Undisclosed Liabilities. Except as set forth on Schedule 4(j)
hereto, the Company is not obligated for, nor are any of its assets or properties subject to, any
liabilities of any kind (whether accrued, absolute, contingent or otherwise), regardless of whether
such liabilities are customarily reflected in a corporate balance sheet prepared in accordance with
generally accepted accounting principles. There are no facts in existence known to such Seller or
the Company that might reasonably serve as a basis, now or in the future, for any liabilities or
obligations of the Company not disclosed in this Agreement, or on the schedules and exhibits
hereto.

          (k) Leases. Except as set forth on Schedule 4(k), there are no oral or
written leases or rental agreements for any real or personal property relating to the Company or
its businesses in force, and no person or entity has any right of possession to any assets of the
Company.

          (l) Material Contracts. All contracts and agreements that are material to the conduct
of the business of the Company are set forth on Schedule 4(l) (the “Material
Contracts”). The Company is not in violation or breach of any material term or condition of
any Material Contract and the Company has not received notice of any claims for breach or
indemnification or notice of any default under or termination of any Material Contract.

          (m) No Defaults. Neither such Seller nor the Company is in default with

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respect to any of the obligations or liabilities pertaining to the Company or its businesses or any
of its assets, nor are there any facts or circumstances or conditions or events which, but for
notice or lapse of time or both, would constitute or result in such default, nor has such Seller
any reason to believe that there is likely to be a default or breach in the future with respect to
such obligations or liabilities.

          (n) Litigation; Proceedings. There is no litigation or any administrative agency
action or proceeding pending or, to the best knowledge of such Seller, threatened against the
Company or such Seller that does or will materially or adversely affect the Company or its
business, or on the transactions contemplated hereby.

          (o) Governmental Commitments. There are no commitments to or agreements with any
federal, state or local governmental authority or agency affecting the Company or any of its assets
or business.

          (p) Employees; ERISA; Employee Benefit Plans. As of the date hereof, the Company has
no employees. The Company previously engaged the services of an employee leasing company for the
provision of employees and employee benefits during all periods relevant to its operation. Except
with respect to those provided through the employee leasing companies utilized by the Company, the
Company has not adopted, sponsored or otherwise participated in any qualified retirement plan under
Section 401 of the Internal Revenue Code, any welfare benefit plan or any other employee benefits
plan of any nature. Except as set forth on Schedule 4(p) hereof, the Company is not and
will not be subject to any liability resulting from either the participation of any employee of the
Company in, or the termination by the Company of any employee of the Company from, any
profit-sharing, pension, stock option, severance, retirement, bonus, deferred compensation, group
life, disability or health insurance, or other employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
trust, agreement, or arrangement, whether or not legally binding, or resulting from the employment
by the Purchaser of any employee who is currently employed by the Company, and the Purchaser shall
not be responsible for any liability whatsoever under any such plan, trust, agreement, or
arrangement, or under the Consolidated Omnibus Budget Reconciliation Act, 29 U.S.C. §1161 et. seq.
(“COBRA”), as amended, with respect thereto.

          (r) Financial Statements. The financial information attached hereto as Schedule 4(r)
has been previously provided to the Purchaser (the “Financial Information”). Such
financial information has been prepared in accordance with generally accepted accounting
principals, consistently applied over the periods in question and fairly and accurately reflects
the financial performance and condition of the Company for the period(s) covered thereby.

          (s) Intellectual Property. The Company has no registered or licensed intellectual
property on which it relies with respect to the conduct of its business.

          (t) Disclosure. No representation or warranty made by such Seller in this Agreement,
in the schedules and exhibits hereto, or otherwise in connection with the consummation of the
transactions contemplated hereby, contains or will contain any untrue

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statement of a material fact or omits or will omit to state a material fact necessary to make the
statements contained herein or therein not misleading.

     It is expressly agreed and understood that neither the Purchaser’s due diligence inspections
nor any other examination or investigation of the assets or the operation thereof, by or on behalf
of the Purchaser prior to the Closing shall in any way modify, affect or diminish any of Sellers’
obligations under the representations, warranties, covenants and agreements contained in this
Agreement.

     5. Representations and Warranties of the Purchaser. Purchaser hereby represents and
warrants to the Sellers that it has the requisite corporate power and authority to enter into and
perform this Agreement, and the execution, delivery and performance of this Agreement and the
execution of any and all additional documents and the taking of all actions necessary or
appropriate to consummate the transaction contemplated in this Agreement have duly authorized by
all necessary corporate action by Purchaser.

     6. Deliveries at Closing. At or before the Closing, each Seller shall deliver to
Purchaser:

          (a) an Assignment of Limited Liability Company Membership Interest evidencing and conveying to
Purchaser the Purchase Interest held by such Seller; and

          (b) copies of all consents, orders, assignments, approvals, waivers and other instruments from
all third parties and government authorities necessary or appropriate to accomplish the transfer of
ownership and uninterrupted continuation of the business of the Company as contemplated herein.

     7. Further Assurances and Cooperation. The parties shall from time to time do and
perform such additional acts and execute and deliver such additional documents and instruments as
may be required or reasonably requested by any party to establish, maintain or protect its rights
and remedies hereunder or to effect the intents and purposes of this Agreement and to otherwise
cooperate with each other after Closing with regard to such matters.

     8. Indemnification. Purchaser on one hand, and each Seller on the other, hereby agree
to indemnify and hold the other harmless from any and all liabilities, obligations, claims,
actions, causes of action, contingencies, damages, costs, fees, penalties, charges, payments, and
expenses (including, without limitation, all court costs and reasonable attorneys’ fees)
(collectively, “Damages”) that the other (or its Affiliates) may suffer or incur as a
result of, arising from, or relating to, directly or indirectly, the breach or inaccuracy of any of
the representations, warranties, covenants, or agreements made by the breaching party to the other
in or pursuant to this Agreement. Notwithstanding the foregoing, the total amount of Damages that
may be recovered by Purchaser or its Affiliates from any Seller shall be limited to the aggregate
amount paid to such Seller as consideration under Section 2 hereof; provided,
however, that if, at any given time, the aggregate amount that has been paid to the Sellers
pursuant to Section 2 (the “Paid Seller Consideration”) is less than the aggregate amount
of any Damages suffered or incurred by Purchaser or its Affiliates, then any amounts that
subsequently become payable to

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the Sellers pursuant to Section 2 shall be reduced by an amount equal to the amount by which such
Damages exceeded the Paid Seller Consideration.

     9. Notices. Any notice or demand which must or may be given under this Agreement or
by law shall be in writing and shall be deemed to have been given (i) when physically received by
personal delivery, or (ii) three (3) days after being deposited in United States certified or
registered mail, return receipt requested, postage prepaid, or (iii) one (1) day after being
deposited with a nationally known commercial courier service providing next day delivery service
(such as Federal Express) addressed to the respective parties at the following addresses:

	 	 	 
	To Sellers:

	 	c/o 3110 Cherry Palm Drive, Suite 350
	 

	 	Tampa, Florida 33619
	 
	 	 
	To Purchaser:

	 	3110 Cherry Palm Drive, Suite 350
	 

	 	Tampa, Florida 33619

Said addresses may be changed by the giving of written notice as provided in this paragraph.

     10. Arbitration of Disputes. All disputes that arise under this Agreement shall be
settled by binding arbitration before a panel of one or more arbitrators pursuant to the rules of
the American Arbitration Association. Arbitration may be commenced at any time by any party hereto
by giving written notice to the other party to a dispute that such dispute has been referred to
arbitration. A single arbitrator shall be selected by the mutual agreement of the parties within
10 days following the receipt of said written notice, but if they do not so agree, then each shall
choose an arbitrator within the next 10 days who shall, in turn, together select one additional
arbitrator within 10 days of their selection. Any award shall be binding and conclusive upon the
parties and said award is not appealable. This provision shall be specifically enforceable. The
expenses of the arbitrator shall be equally shared. Failure to comply with this provision shall
constitute a breach of this Agreement.

     11. Attorneys’ Fees. In connection with any arbitration, litigation, appeal or other
proceeding, including bankruptcy or creditors’ reorganization proceedings, or probate and estate
administrative proceedings, to enforce or interpret this Agreement, the parties agree that the
prevailing party shall recover its reasonable attorneys’ fees, legal assistants’ fees, and costs
and expenses thereof.

     12. Miscellaneous.

          (a) Waiver. No course of dealing or any delay or failure on the part of any party
hereto in exercising any right, power, privilege or remedy hereunder or under any other instrument
given in connection with or pursuant to this Agreement shall impair any such right, power,
privilege or remedy or be construed as a waiver of any breach, default or acquiescence relating
thereto. No single or partial exercise of any such right, power, privilege or remedy shall be
construed as a waiver, or preclude the further exercise, of any such right, power, privilege or
remedy or the exercise of any other right, power, privilege or remedy. No waiver shall be valid
against any

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party hereto unless made in writing and signed by the party against whom enforcement of such waiver
is sought and then only to the extent expressly specified therein.

          (b) Survival. All representations and warranties contained in this Agreement
(including, without limitation, obligations for indemnification), and in any certificate,
instrument, or document delivered by or on behalf of the parties pursuant to this Agreement, in all
cases shall be deemed to have been relied upon by the parties hereto, and shall survive the Closing
for one (1) year from the Closing.

          (c) Expenses. Except as otherwise stated herein, each of the parties hereto shall,
whether or not the transactions contemplated hereby are consummated, bear its own attorneys’,
accountants’, auditors’, or other fees, costs, and expenses incurred in connection with the
negotiation, execution, and performance of this Agreement or any of the transactions contemplated
hereunder.

          (d) Counterparts. This Agreement may be executed in one or more counterparts for the
convenience of the parties hereto, all of which together shall constitute one and the same
instrument.

          (e) Assignment. This Agreement and all of the provisions hereof shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and permitted
assigns, but neither this Agreement nor any of the rights, interests, or obligations hereunder
shall be assigned or delegated by any of the parties hereto without the prior written consent of
the other parties. Any assignment or delegation made in violation of this Agreement shall be null
and void. This Agreement is not intended to confer upon any person, other than the parties hereto,
any rights or remedies hereunder. Nothing in this Agreement shall be construed to imply any
admission of liability or obligation to any person except the parties hereunder.

          (f) Entire Agreement. This Agreement contains the entire understanding of the parties
relating to the subject matter contained herein and supersedes all prior written or oral and all
contemporaneous oral agreements and understandings relating to the subject matter hereof. This
Agreement cannot be modified, amended, or terminated except in writing signed by the party against
whom enforcement is sought.

          (g) Schedules and Exhibits. All schedules and exhibits to this Agreement are
incorporated herein by reference and made a part hereof for all purposes. All references herein to
this Agreement shall be deemed to include all schedules and exhibits hereto or contemplated hereby.
The parties agree that, to the extent any schedules or exhibits specifically referenced or
otherwise provided for or intended under this Agreement are not attached hereto at the time of
execution and delivery by the parties, such schedules or exhibits shall be prepared and agreed to
by the parties and shall be attached hereto in final form on or before the Closing, and the
approval of such attachments by Purchaser shall be deemed an additional condition to Purchaser’s
obligations to close the transactions contemplated by this Agreement.

          (h) Governing Law. This Agreement shall be governed by, and construed and interpreted
in accordance with, the substantive laws of the State of Florida, without giving effect to

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any conflict of laws rule or principle that might require the application of the laws of another
jurisdiction.

          (i) Construction. This Agreement has been jointly drafted based on input and review
from both parties and/or their respective representatives and neither party shall be considered as
being responsible for such drafting for the purposes of applying any rule to construe ambiguities
against the drafter or otherwise.

[This space intentionally left blank. Signatures on following page.]

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     IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above
written.

	 	 	 	 	 	 	 	 	 	 	 
	PURCHASER:	 	 	 	SELLERS:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SIRION THERAPEUTICS, INC.	 	 	 	THE BUTLER PARTNERSHIP, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Dawn Bennett-Johnson 	 	 	 	By:	 	/s/ Barry Butler 	 	 
	 

	 	 

Dawn Bennett-Johnson,
	 	 	 	 	 	 

Barry Butler, President
	 	 
	 

	 	     Chief Financial Officer	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	ROGELLEN PARTNERS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Roger Vogel 	 	 
	 

	 	 	 	 	 	 	 	 

Roger Vogel, President
	 	 

10EX-10.9  CONTRIBUTION AGREEMENT

 

Exhibit 10.9

CONTRIBUTION AGREEMENT

     This Contribution Agreement (this “Agreement”) is made and entered into as of
September 13, 2006, by and among Tenby Pharma Inc., a Delaware corporation (“Pubco”),
Sirion Therapeutics, Inc., a North Carolina corporation (the “Company”), and each of the
shareholders of the Company listed on Schedule A attached hereto (each, a “Contributor” and
collectively, the “Contributors”). Certain capitalized terms used in this Agreement are defined in
Exhibit A attached hereto and incorporated herein by reference.

RECITALS

     Whereas, the parties desire to set forth the terms and conditions pursuant to which:
(i) each of the Contributors holding shares of Company Common Stock shall contribute all of its
shares of Company Common Stock to Pubco in exchange for shares of Pubco Common Stock; and (ii) each
of the Contributors holding shares of Company Series A Preferred Stock or Company Series A-1
Preferred Stock shall contribute all of its shares of Company Series A Preferred Stock and/or
Company Series A-1 Preferred Stock to Pubco in exchange for shares of Pubco Series A Preferred
Stock (the contributions referred to in clauses (i) and (ii) being collectively referred to herein
as the “Contribution”);

     Whereas, immediately following the execution and delivery of this Agreement by the
parties hereto, Pubco is entering into that certain Series A Preferred Stock Purchase Agreement
(the “Purchase Agreement”) with the investors listed on the signature pages thereto (collectively,
the “Purchasers”), pursuant to which the Purchasers will purchase from Pubco shares of Pubco Series
A Preferred Stock (the “Stock Purchase”); and

     Whereas, insofar as the Contribution and the Stock Purchase (collectively, the
“Transfers”) are being made pursuant to a single plan in exchange for shares of Pubco Common Stock
and Pubco Series A Preferred Stock that will collectively represent at least 80% of the total
combined voting power of all classes of Pubco voting stock and at least 80% of the total number of
shares of all other classes of Pubco capital stock, it is intended that the Transfers qualify and
are treated as a tax-free transfer under Section 351 of the Internal Revenue Code of 1986, as
amended, and the rules and regulations promulgated thereunder (the “Code”).

     Now, Therefore, in consideration of the foregoing and the respective covenants,
agreements and representations and warranties set forth herein, the parties to this Agreement,
intending to be legally bound, hereby agree as follows:

AGREEMENT

	1.	 	Description of Contribution. 

     1.1 Contribution. Upon the terms and subject to the conditions set forth in this Agreement,
at the Effective Time (as defined below): (i) each of the Contributors holding shares of Company
Common Stock shall contribute all of its shares of Company Common Stock to Pubco in exchange for
that number of shares of Pubco Common Stock as is set forth in Section 1.3; and (ii) each
of the Contributors holding shares of Company Series A Preferred Stock or Company Series A-1
Preferred Stock shall contribute all of its shares of Company

 

 

Series A Preferred Stock or Company Series A-1 Preferred Stock, as applicable, to Pubco in
exchange for that number of shares of Pubco Series A Preferred Stock as is set forth in Section
1.3.

     1.2 Closing; Effective Time. The consummation of the Contribution (the “Closing”) shall take
place at the offices of Pubco at 10:00 a.m. Eastern Time (the “Effective Time”) on the date of this
Agreement (the “Closing Date”).

     1.3 Contribution Consideration. The following consideration shall be payable to the
Contributors as a result of the Contribution: (i) 3,327,833 shares of Pubco Common Stock (the
“Aggregate Common Stock Consideration”); and (ii) 1,672,036 shares of Pubco Series A Preferred
Stock (the “Aggregate Preferred Stock Consideration” and, together with the Aggregate Common Stock
Consideration, the “Aggregate Contribution Consideration”). Such Aggregate Contribution
Consideration shall be payable to the Contributors as follows:

          (a) Each share of Company Series A Preferred Stock held by a Contributor as of immediately
prior to the Effective Time shall entitle such Contributor to receive, in accordance with
Section 1.4, 13.7925 shares of Pubco Series A Preferred Stock (the “Series A Per Share
Contribution Consideration”).

          (b) Each share of Company Series A-1 Preferred Stock held by a Contributor as of immediately
prior to the Effective Time shall entitle such Contributor to receive, in accordance with
Section 1.4, 12.50 shares of Pubco Series A Preferred Stock (the “Series A-1 Per Share
Contribution Consideration”).

          (c) Each share of Company Common Stock held by a Contributor as of immediately prior to the
Effective Time shall entitle such Contributor to receive, in accordance with Section 1.4,
12.50 shares of Pubco Common Stock (the “Common Stock Per Share Contribution Consideration”).

1.4 Delivery of Contribution Consideration.

          (a) At the Closing: (i) the Contributors will provide to Pubco (1) completed and executed
letters of transmittal in customary form for use in effecting the surrender of all Contributed
Interests in exchange for the Applicable Per Share Contribution Consideration, and (2) all
certificates representing the Contributed Interests held by such Contributors; and (ii) Pubco will
provide to each Contributor (A) a Pubco stock certificate representing that number of shares of
Pubco Series A Preferred Stock representing such Contributor’s portion of the Aggregate Preferred
Stock Consideration (as determined in accordance with Section 1.3), and (B) a Pubco stock
certificate representing that number of shares of Pubco Common Stock representing such holder’s
portion of the Aggregate Common Stock Consideration (as determined in accordance with Section
1.3). In lieu of any fractional shares of Pubco Common Stock or Pubco Series A Preferred Stock
that any Contributor would otherwise be entitled to receive, such Contributor shall be paid cash in
an amount equal to the product of (1) the number of fractional shares of Pubco Common Stock or
Pubco Series A Preferred Stock, as applicable, which such Contributor would otherwise be entitled
to receive, multiplied by (2) $8.00.

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          (b) Pubco shall be entitled to deduct and withhold from the Applicable Per Share Contribution
Consideration payable or otherwise deliverable to any Contributor pursuant to this Agreement such
amounts as Pubco is required to deduct or withhold therefrom under the Code or under any provision
of state, local or foreign tax law. To the extent such amounts are so deducted or withheld, such
amounts shall be treated for all purposes under this Agreement as having been paid to the
Contributor to whom such amounts would otherwise have been paid.

     1.5 Tax Consequences. For federal income tax purposes, the Transfers are intended to
constitute a tax-free transfer of property to Pubco within the meaning of Section 351 of the Code,
and the parties shall report the transactions contemplated by the Transaction Documents consistent
with such intent and shall take no position in any Tax filing or Legal Proceeding inconsistent
therewith. None of Pubco, the Contributors or the Company has taken or failed to take, and after
the Effective Time, Pubco and the Contributors shall not take or fail to take, any action which
reasonably could be expected to cause the Transfers to fail to qualify as a tax-free transfer of
property to Pubco within the meaning of Section 351 of the Code.

     1.6 Further Action. If, at any time after the Closing Date, any further action is determined
by Pubco to be necessary or desirable to carry out the transactions contemplated by the Transaction
Documents or to vest Pubco with full right, title and possession of and to all Contributed
Interests, the officers and directors of Pubco shall be fully authorized (in the name of the
Company, the Contributors or otherwise) to take such action.

2. Representations and Warranties of the Company. Except as set forth on the Company
Disclosure Schedule, the Company hereby represents and warrants, as of the date hereof, to and for
the benefit of Pubco, as follows:

     2.1 Due Organization; Subsidiaries; Etc. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of North Carolina and as a foreign
corporation qualified to do business in the State of Florida, and has all necessary power and
authority: (i) to conduct its business in the manner in which its business is currently being
conducted; (ii) to own and use its assets in the manner in which its assets are currently owned and
used; and (iii) to perform its obligations under all Company Contracts to which it is a party. The
Company, together with its predecessors, has not conducted any business under or otherwise used,
for any purpose or in any jurisdiction, any fictitious name, assumed name, trade name or other
name, other than the names “Sirion Therapeutics, Inc.” and, prior to the consummation of the
Sirion/Sytera Merger, “Sytera, Inc.” The Company is not and has not been required to be qualified,
authorized, registered or licensed to do business as a foreign corporation in any jurisdiction
other than Florida and California. Other than RxDR, the Company has no Subsidiaries, does not own
any controlling interest in any Entity and has never owned, beneficially or otherwise, any shares
or other securities of, or any direct or indirect equity or other financial interest in, any
Entity. RxDR is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Florida and has all necessary power and authority: (i) to conduct
its business in the manner in which its business is currently being conducted; (ii) to own and use
its assets in the manner in which its assets are currently owned and used; and (iii) to perform its
obligations under all Company Contracts to which it is a party. The Company directly owns all of
the issued and outstanding membership interests of RxDR free and clear of any liens and all of such
membership interests are validly issued and free of preemptive and similar rights. The Company has
not agreed and is not obligated to make any

3

 

future investment in or capital contribution to any Entity. Neither the Company nor any of
the stockholders of the Company has ever approved, or commenced any Legal Proceeding or made any
election contemplating, the dissolution or liquidation of the Company’s business or affairs.

     2.2 Certificate of Incorporation and Bylaws; Records. The Company has delivered to Pubco
accurate and complete (through the date hereof) copies of: (i) the certificate of incorporation and
bylaws, including all amendments thereto, of the Company; (ii) the certificate of formation and
limited liability company operating agreement, or similar organizational documents, of RxDR; (iii)
the stock records of the Company; and (iv) the minutes and other records of the meetings and other
proceedings (including any actions taken by written consent or otherwise without a meeting) of the
holders of Company Securities, the board of directors of the Company and all committees of the
board of directors of the Company (the items described in the foregoing clauses “(i)”, “(ii)”,
“(iii)” and “(iv)” of this Section 2.2 being collectively referred to herein as the
“Company Documents”). There have been no formal meetings held of, or corporate actions taken by,
the stockholders of the Company, the board of directors of the Company or any committee of the
board of directors of the Company, or the members of RxDR, the board of managers of RxDR or any
committee of the board of managers of RxDR, that are not fully reflected in the Company Documents.
There has not been any violation of any of the Company Documents, and at no time has the Company or
RxDR taken any action that is inconsistent in any material respect with the Company Documents. The
books of account, equity records, minute books and other records of the Company and RxDR are
accurate, up-to-date and complete in all material respects, and have been maintained in accordance
with Legal Requirements and prudent business practices.

     2.3 Capitalization, Etc.

          (a) The authorized capital stock of the Company consists of: (i) 600,000 shares of Company
Common Stock, of which 266,227 shares have been issued and are outstanding; (ii) 30,600 shares of
Company Series A Preferred Stock, of which 30,599 have been issued and are outstanding; and (iii)
100,000 shares of Company Series A-1 Preferred Stock, all of which have been issued and are
outstanding. All of the outstanding shares of the Company capital stock have been duly authorized
and validly issued and are fully paid and nonassessable. All of the outstanding shares of capital
stock of the Company and all of the outstanding subscriptions, options, calls, warrants or rights
(whether or not currently exercisable) to acquire any shares of capital stock or other securities
of the Company have been issued in compliance with all applicable federal and state securities laws
and other applicable Legal Requirements and all requirements set forth in the Company Documents and
Company Contracts. No shares of capital stock of the Company are subject to a repurchase option in
favor of the Company, and the Company has never repurchased, redeemed or otherwise reacquired any
shares of the Company capital stock or other securities of the Company. Collectively, the
Contributed Interests to be transferred by the Contributors to Pubco in connection with the
Contribution represent 100% of the shares of outstanding capital stock of the Company.

          (b) Except as set forth on Schedule 2.3(b) of the Company Disclosure Schedule, there
are no: (i) outstanding subscriptions, options, calls, warrants or rights (whether or not currently
exercisable) to acquire any shares of capital stock of the Company or other securities of the
Company; (ii) outstanding securities, notes, instruments or obligations that are or may become
convertible into or exchangeable for any shares of capital stock of the Company

4

 

or other securities of the Company; (iii) outstanding or authorized stock appreciation,
phantom stock or similar rights with respect to the capital stock of the Company; (iv) Contracts
(other than this Agreement) under which the Company is or may become obligated to sell, transfer,
exchange or issue any shares of capital stock of the Company or any other securities of the
Company; (v) agreements, voting trusts, proxies or understandings with respect to the voting, or
registration under the Securities Act, or any shares of the Company; or (vi) conditions or
circumstances that may give rise to or provide a basis for the assertion of a claim by any Person
to the effect that such Person is entitled to acquire or receive any shares of the Company
Securities or any shares of the capital stock or other securities of the Company.

          (c) Schedule 2.3(c) of the Company Disclosure Schedule sets forth a complete and
accurate list of all of the stock option plans and other stock or equity-related plans of the
Company.

     2.4 Company Financial Statements. The Company has furnished to Pubco a complete and correct
copy of the Company’s: (i) unaudited balance sheet dated as of December 31, 2004 and the related
statements of operations, shareholders’ equity, and cash flows for the twelve (12) months then
ended; (ii) unaudited balance sheet dated as of December 31, 2005 and the related statements of
operations, shareholders’ equity, and cash flows for the twelve (12) months then ended; and (iii)
unaudited balance sheet dated as of June 30, 2006 and the related statements of operations,
shareholders’ equity, and cash flows for the six (6) months then ended (collectively, the “Company
Financial Statements”). The Company Financial Statements are complete and correct, are consistent
with the books and records of the Company and present fairly the assets, liabilities, financial
condition and results of operations of the Company, as at the dates and for the periods indicated,
have been prepared in accordance with GAAP, and have been prepared in good faith by the Company’s
management from the books and records of the Company. The books and records of the Company are
true, accurate and complete in all material respects.

     2.5 Equipment; Leasehold. Schedule 2.5 of the Company Disclosure Schedule sets forth
a true and complete list of all inventory, machinery, equipment, furniture, office equipment,
supplies, materials, vehicles and other material items of tangible personal property of every kind
owned by the Company and RxDR and used in connection with their respective businesses (the “Company
Personal Property”). All of the Company Personal Property and other tangible assets owned by or
leased to the Company or RxDR are in good condition and repair (ordinary wear and tear excepted)
and are adequate for the conduct of the Company’s or RxDR’s business in the manner in which such
business is currently being conducted. Neither the Company nor RxDR owns any real property or any
interest in real property, except for the leasehold interest created under the real property leases
identified in Schedule 2.5 of the Company Disclosure Schedule (the “Company Leased Real
Property”).

     2.6 Intellectual Property.

          (a) Schedule 2.6(a) of the Company Disclosure Schedule accurately identifies: (i) each
item of Registered IP in which the Company or RxDR has or purports to have an ownership interest of
any nature (whether exclusively, jointly with another Person, or otherwise); (ii) the jurisdiction
in which such item of Registered IP has been registered or filed and the applicable registration or
serial number; and (iii) any other Person that has an ownership

5

 

interest in such item of Registered IP and the nature of such ownership interest. The Company
has provided to Pubco complete and accurate copies of all applications and correspondence with any
Governmental Body related to each such item of Registered IP.

          (b) Schedule 2.6(b) of the Company Disclosure Schedule accurately identifies: (i) all
Intellectual Property Rights or Intellectual Property licensed to the Company or RxDR (other than
any non-customized software that is so licensed solely in executable or object code form pursuant
to a non-exclusive, internal-use software license or is generally publicly available on standard
terms for less than $1,000); and (ii) the corresponding Contract or Contracts pursuant to which
such Intellectual Property Rights or Intellectual Property is or are licensed to the Company.
Neither the Contribution nor any of the other transactions contemplated by the Transaction
Documents will materially adversely alter or impair the Company’s Intellectual Property Rights or
the Intellectual Property licensed to the Company or RxDR.

          (c) Schedule 2.6(c) of the Company Disclosure Schedule accurately identifies each
Contract pursuant to which any Person has been granted any license under, or otherwise has received
or acquired any right (whether or not currently exercisable) or interest in, any of the Company IP.
Neither the Company nor RxDR is bound by, and no Company IP is subject to, any Contract containing
any covenant or other provision that in any way limits or restricts the ability of the Company or
RxDR to use, exploit, assert, or enforce any Company IP anywhere in the world.

          (d) The Company or RxDR, as applicable, exclusively owns all right, title, and interest to and
in the Company IP, free and clear of any Encumbrances. Without limiting the generality of the
foregoing:

               (i) All documents and instruments necessary to perfect the rights of the Company or RxDR, as
applicable, in the Registered IP have been validly executed, delivered and filed in a timely manner
with the appropriate Governmental Body;

               (ii) Each Person who is or was an employee or contractor of the Company or RxDR and who is or
was involved in the creation or development of any Company IP has signed a valid, enforceable
written agreement containing an assignment of Intellectual Property Rights to the Company or RxDR,
as applicable, and confidentiality provisions in favor of the Company or RxDR, as applicable,
regarding the Company IP. No current or former Representative or Affiliate of the Company or RxDR
has any claim, right (whether or not currently exercisable) or interest to or in any Company IP;

               (iii) With respect to Company IP in the form of licenses of third party Intellectual Property
and Intellectual Property Rights, no funding, facilities or personnel of any Governmental Body
within the jurisdictions covered by the license were used, directly or indirectly, to develop or
create, in whole or in part, such Company IP. With respect to all other Company IP, no funding,
facilities or personnel of any Governmental Body were used, directly or indirectly, to develop or
create, in whole or in part, such Company IP;

               (iv) Each of the Company and RxDR has taken all reasonable steps to maintain the
confidentiality of and otherwise protect and enforce its rights in all proprietary

6

 

information that the Company or RxDR, as applicable, holds, or purports to hold, as a trade
secret;

               (v) Neither the Company nor RxDR has assigned or otherwise transferred ownership of, or agreed
to assign or otherwise transfer ownership of, any Company IP to any other Person; and

               (vi) Neither the Company nor RxDR is, or has ever been, a member or promoter of, or a
contributor to, any industry standards body or similar organization that could require or obligate
the Company or RxDR, as applicable, to grant or offer to any other Person any license or right to
any Company IP.

          (e) (i) With respect to Company IP in the form of licenses from third parties of Intellectual
Property and Intellectual Property Rights: (A) each item of Company IP that is Registered IP is in
compliance with all Legal Requirements and is valid and in full force and effect; and (B) no
application for any type of Registered IP filed by or on behalf of the Company or RxDR has been
abandoned, allowed to lapse or rejected; and

               (ii) With respect to all other Company IP, each item of Company IP that is Registered IP is
and at all times has been maintained in compliance with all Legal Requirements and all filings,
payments and other actions required to be made or taken to maintain such item of Registered IP in
full force and effect have been made by the applicable deadline; and each such item of Registered
IP is valid and in full force and effect. No application for any type of Registered IP filed by or
on behalf of the Company or RxDR has been abandoned, allowed to lapse or rejected. No item of
Company IP that is Registered IP is subject to any maintenance fees or Taxes or actions falling due
within ninety (90) days after the Closing Date.

          (f) To the Company’s Knowledge, no Person has infringed, misappropriated or otherwise violated
or is currently infringing, misappropriating or otherwise violating any Company IP.

          (g) To the Company’s Knowledge, none of the Company IP owned or licensed by the Company or
RxDR currently infringes, misappropriates or otherwise violates or has ever infringed (directly,
contributorily, by inducement or otherwise), misappropriated or otherwise violated any Intellectual
Property Right of any other Person. Without limiting the generality of the foregoing:

               (i) To the Company’s Knowledge, no infringement, misappropriation or similar claim or Legal
Proceeding is pending or has been threatened against the Company or RxDR; and

               (ii) Except as set forth on Schedule 2.6(g)(ii), neither the Company nor RxDR is bound by any
Contract to indemnify, defend, hold harmless or reimburse any other Person with respect to any
Intellectual Property infringement, misappropriation or any similar claim. Neither the Company nor
RxDR has ever assumed, or agreed to discharge or otherwise take responsibility for, any existing or
potential liability of another Person for the infringement, misappropriation or violation of any
Intellectual Property Right.

7

 

     2.7 Contracts. Schedule 2.7 of the Company Disclosure Schedule identifies each
Company Contract and provides an accurate description of the terms of each Company Contract that is
not in written form. The Company has delivered to Pubco accurate and complete copies of all
written Company Contracts. Each Company Contract is valid, binding and enforceable by the Company
in accordance with its terms subject to: (i) laws of general application relating to bankruptcy,
insolvency and the relief of debtors; and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies. Neither the Company nor RxDR has violated or
breached, or committed any default under, any Company Contract, and, to the Company’s Knowledge, no
other Person has violated or breached, or committed any default under, any Company Contract.
Schedule 2.7 of the Company Disclosure Schedule provides an accurate and complete list of
all Consents required under any Company Contract to consummate the transactions contemplated by the
Transaction Documents.

     2.8 Finder’s Fee. No broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the Contribution or any of the other
transactions contemplated by the Transaction Documents based upon any arrangements or agreements
made by or on behalf of the Company.

     2.9 Compliance with Legal Requirements. Each of the Company and RxDR is, and has at all times
been, in compliance with all applicable material Legal Requirements. To the Company’s Knowledge,
each of the Company and RxDR is, and has at all times been, in compliance with all other applicable
Legal Requirements. Neither the Company nor RxDR has ever received any notice or other
communication from any Person regarding any actual or possible violation of, or failure to comply
with, any Legal Requirement. Each of the Company and RxDR has obtained all material permits,
certificates and licenses required by any Legal Requirement for the conduct of its business and the
ownership of its assets. Neither the Company nor RxDR is in violation of any such permit,
certificate or license, and no Legal Proceedings are pending or, to the Knowledge of the Company,
threatened to revoke or limit any such permit, certificate or license.

     2.10 Legal Proceedings. There is no pending Legal Proceeding, and to the Company’s Knowledge,
no Person has threatened to commence any Legal Proceeding, that (i) involves or affects the Company
or RxDR or any of the assets owned or used by the Company or RxDR, or (ii) that challenges the
Contribution or any of the other transactions contemplated by the Transaction Documents. No Legal
Proceeding has ever been commenced that involves or affects the Company or RxDR or the assets owned
by the Company or RxDR. There is no Order in which the Company or RxDR is named or to which any of
the assets of the Company or RxDR is subject.

     2.11 No Undisclosed Liabilities. Neither the Company nor RxDR has any Liabilities, except for
(i) Liabilities reflected on the Company Financial Statements, (ii) accounts payable incurred in
the ordinary course of business since the date of the last balance sheet reflected in the Company
Financial Statements, none of which are material in nature or exceed $25,000, (iii) Liabilities
under the Company Contracts, and (iv) Liabilities incurred in connection with the negotiation of
the Transaction Documents and the transactions contemplated thereby.

     2.12 Tax Matters. All Tax Returns required to be filed by or on behalf of the Company or RxDR
with any Governmental Body before the Closing Date (the “Company

8

 

Returns”): (i) have been or will be filed on or before the applicable due date (including any
extensions of such due date); (ii) have been, or will be when filed, accurately and completely
prepared in all material respects in compliance with all applicable Legal Requirements; and (iii)
have been provided or made available to Pubco. All Taxes owed by the Company or RxDR have been
paid when due, whether or not such amounts are shown on any Company Returns. The Company Financial
Statements fully accrue all actual and contingent Liabilities for unpaid Taxes with respect to all
periods through the date thereof and each of the Company and RxDR has made adequate provision for
unpaid Taxes after that date in its books and records. No Company Return has ever been examined or
audited by any Governmental Body. No claim or Legal Proceeding is pending or has been threatened
against or with respect to the Company or RxDR in respect of any Tax. There are no unsatisfied
Liabilities for Taxes, including Liabilities for interest, additions to tax and penalties thereon
and related expenses, with respect to which any notice of deficiency or similar document has been
received by the Company or RxDR (other than Liabilities for Taxes asserted under any such notice of
deficiency or similar document which are being contested in good faith by the Company or RxDR, as
applicable, and with respect to which adequate reserves for payment have been established). There
are no liens for Taxes upon any of the assets of the Company or RxDR except liens for current Taxes
not yet due and payable.

     2.13 Employee and Labor Matters.

          (a) Schedule 2.13(a) of the Company Disclosure Schedule contains a list of all of the
employees of the Company and RxDR as of the date of this Agreement and correctly reflects, in all
material respects, the nature and amount of all compensation payable to them, their dates of
employment and their positions. All of the employees listed on Schedule 2.13(a) of the
Company Disclosure Schedule are “at will” employees. Each of the Company and RxDR has at all times
complied with all material Legal Requirements related to the employment of its employees. Except
as set forth on Schedule 2.13, each of the Company and RxDR has compensated all individuals
for, or otherwise cancelled or satisfied all of its obligations with respect to, all accrued
vacation, deferred compensation and other similar benefits. Since January 1, 2006, neither the
Company nor RxDR has increased the salary or benefits level of any of its employees.

          (b) Except as set forth on Schedule 2.13(b) of the Company Disclosure Schedule, there
are no Plans, as defined below, contributed to, maintained or sponsored by the Company or RxDR, to
which the Company or RxDR is obligated to contribute or with respect to which the Company or RxDR
has any liability or potential liability, whether direct or indirect. For purposes of this
Agreement, the term “Plans” shall mean: (a) employee benefit plans as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), whether or not funded
and whether or not terminated, (b) employment agreements, and (c) personnel policies or fringe
benefit plans, policies, programs and arrangements, whether or not subject to ERISA, whether or not
funded, and whether or not terminated, including without limitation, stock bonus, deferred
compensation, pension, severance, bonus, vacation, travel, incentive, and health, disability and
welfare plans.

          (c) Except as set forth on Schedule 2.13(c) of the Company Disclosure Schedule, none
of the Initial Sytera FTEs is obligated under any Contract, or subject to any Order, that would
conflict with his or her obligation to use his or her best efforts to promote the interests of the
Company or Pubco after the Closing Date, or that conflicts with the business of

9

 

the Company as presently conducted. During the past ten (10) years, to the Knowledge of the
Company, none of the Initial Sytera FTEs has been (i) charged with, indicted for or convicted of
any misdemeanor related to moral turpitude or any felony; (ii) a party to a proceeding with respect
to any misdemeanor related to moral turpitude or any felony; or (iii) the subject of a bankruptcy
proceeding or has been the officer or director of a company that has been the subject of a
bankruptcy proceeding. The Company is not aware that any Initial Sytera FTE has plans to terminate
his or her employment with the Company, as a result of the Contribution or otherwise.

     2.14 Authority; Binding Nature of Agreement. The Company has all necessary corporate power
and authority to enter into and to perform its obligations under the Transaction Documents, and the
execution, delivery and performance by the Company of the Transaction Documents have been duly
authorized by all necessary action on the part of the Company, its board of directors and each of
its stockholders. Each of the Transaction Documents to which the Company is a party constitutes
the valid and binding obligation of the Company, enforceable against the Company in accordance with
its terms, subject to: (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors; and (ii) rules of law governing specific performance, injunctive relief and
other equitable remedies.

     2.15 Non-Contravention. Neither the execution, delivery or performance of the Transaction
Documents, nor the consummation of any of the transactions contemplated thereby, will directly or
indirectly (with or without notice or lapse of time): (i) result in a violation of any of the
provisions of the Company Documents; (ii) to the Company’s Knowledge, result in a violation of, or
give any Governmental Body or other Person the right to challenge any of the transactions
contemplated by the Transaction Documents or to exercise any remedy or obtain any relief under any,
Legal Requirement or any Order to which the Company, RxDR, or any of the assets owned, used or
controlled by the Company or RxDR, is subject; or (iii) result in a violation or breach of, or
result in a default under, with or without notice or lapse of time, any provision of any Company
Contract.

     2.16 Environmental Protection. No substances that are defined by Legal Requirements
concerning the environment as toxic materials, hazardous wastes or hazardous substances (including
without limitation any asbestos, oils, petroleum-derived compound or pesticides) (collectively,
“Hazardous Materials”) are or, to the Knowledge of the Company, have been located in, on or about
the Company Leased Real Property. To the Knowledge of the Company, the Company Leased Real
Property has not been used for the storage, manufacture or disposal of Hazardous Materials, and
neither the Company nor RxDR has used, or provided permission to others to use, the Company Leased
Real Property for the storage, manufacture or disposal of Hazardous Materials. Specifically, but
without limitation, to the Knowledge of the Company, there are and have been no storage tanks
located on the Company Leased Real Property. To the Knowledge of the Company, no Hazardous
Materials have been transported off site from the Company Leased Real Property.

     2.17 Insurance. Schedule 2.17 to the Company Disclosure Schedule contains a brief
description of all insurance policies maintained by the Company or RxDR with respect to their
respective businesses and assets and the Company Leased Real Property. Such policies are valid,
binding and enforceable in accordance with their terms, are in full force and effect, and all
premiums due thereon have been paid.

10

 

     2.18 Related Party Transactions. Except as set forth on Schedule 2.18 to the Company
Disclosure Schedule, the Company Contracts do not include any agreement with or any other
commitment to (a) any officer or director of the Company or RxDR; (b) any individual related by
blood or marriage to any such officer or director; or (c) any Entity in which the Company, RxDR or
any such officer, director or related person has an equity or participating interest.

     2.19 FDA Matters.

          (a) Each of the Company and RxDR has been and is in compliance in all material respects with
all applicable Legal Requirements, including the United States Federal Food, Drug and Cosmetic Act,
as amended from time to time, and all regulations promulgated thereunder (the “FFDCA”), in its
development efforts related to any Product or any product of RxDR (an “RxDR Product”)and in
conducting any related clinical trials. Neither the Company nor RxDR has (i) made to the FDA any
untrue statement of a material fact regarding any Product or RxDR Product (whether in any
submission or otherwise) or (ii) failed to disclose to the FDA any material fact required to be
disclosed to it by the FDA regarding such Product or RxDR Product.

          (b) Neither the Company, RxDR nor any of their respective officers, directors, managers,
agents, Affiliates or employees (a) was or is presently debarred pursuant to the Generic Drug
Enforcement Act of 1992 (“GDEA”), (b) has been debarred or excluded from participation in the
Medicare program, any state Medicaid program or any other federal health care program, (c) has been
charged with, indicted for, or convicted of a criminal offense that would lead to debarment or
exclusion under the GDEA, or from participation in the Medicare program, any state Medicaid program
or any other federal health care program, or (d) has been or is under investigation by any
Governmental Body for debarment or exclusion action.

     2.20 Disclosure. The Company has not made any representation, warranty or statement in this
Agreement, or in any of the schedules or exhibits attached to this Agreement, that contains any
untrue statement of a material fact or, to the reasonable knowledge of the Company or Kenneth
Widder, Jay Lichter, Nathan Mata, Barry Butler or Roger Vogel, omitted to state any material fact
necessary in order to make the statements made herein and therein, in the light of the
circumstances under which they were made, not misleading.

3. Representations and Warranties of the Contributors. Each of the Contributors hereby
represent and warrants, severally but not jointly, as of the date hereof, to and for the benefit of
Pubco, as follows:

     3.1 Authority; Binding Nature of Agreement. Such Contributor has all necessary power and
authority to enter into and to perform its obligations under the Transaction Documents to which it
is a party, and, if applicable, the execution, delivery and performance by such Contributor of each
such Transaction Document have been duly authorized by all necessary action on the part of such
Contributor. Each Transaction Document to which such Contributor is a party constitutes the valid
and binding obligation of such Contributor, enforceable against such Contributor in accordance with
its terms, subject to: (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors; and (ii) rules of law governing specific performance, injunctive relief and
other equitable remedies.

11

 

     3.2 Title to Contribution Interests. Such Contributor owns all right, title and interest in
and to, and has the right to transfer to Pubco, all Contributed Interests to be transferred by such
Contributor to Pubco in connection with the Contribution, and all such Contributed Interests will
be transferred to Pubco free and clear of all Encumbrances.

4. Representations and Warranties of Pubco. Except as set forth on the Pubco Disclosure
Schedule, Pubco hereby represents and warrants on and as of the date hereof, to and for the benefit
of each Contributor, as follows:

     4.1 Due Organization; No Subsidiaries; Etc. Pubco is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has all necessary power
and authority: (i) to conduct its business in the manner in which its business is currently being
conducted; (ii) to own and use its assets in the manner in which its assets are currently owned and
used; and (iii) to perform its obligations under all Pubco Contracts. Pubco has not conducted any
business under or otherwise used, for any purpose or in any jurisdiction, any fictitious name,
assumed name, trade name or other name, other than the name “Tenby Pharma Inc.” Pubco is not and
has not been required to be qualified, authorized, registered or licensed to do business as a
foreign corporation in any jurisdiction. Pubco has no Subsidiaries, does not own any controlling
interest in any Entity and has never owned, beneficially or otherwise, any shares or other
securities of, or any direct or indirect equity or other financial interest in, any Entity. Pubco
has not agreed and is not obligated to make any future investment in or capital contribution to any
Entity. Neither Pubco nor any of the shareholders of Pubco has ever approved, or commenced any
Legal Proceeding or made any election contemplating, the dissolution or liquidation of Pubco’s
business or affairs.

     4.2 Articles of Incorporation and Bylaws; Records. Pubco has delivered to the Company
accurate and complete (through the date hereof) copies of: (i) the articles of incorporation and
bylaws, including all amendments thereto, of Pubco; (ii) the stock records of Pubco; and (iii) the
minutes and other records of the meetings and other proceedings (including any actions taken by
written consent or otherwise without a meeting) of the holders of Pubco Common Stock, the board of
directors of Pubco and all committees of the board of directors of Pubco (the items described in
the foregoing clauses “(i)”, “(ii)” and “(iii)” of this Section 4.2 being collectively
referred to herein as the “Pubco Documents”). There have been no formal meetings held of, or
corporate actions taken by, the stockholders of Pubco, the board of directors of Pubco or any
committee of the board of directors of Pubco that are not fully reflected in the Pubco Documents.
There has not been any violation of any of the Pubco Documents, and at no time has Pubco taken any
action that is inconsistent in any material respect with the Pubco Documents. The books of
account, stock records, minute books and other records of Pubco are accurate, up-to-date and
complete in all material respects, and have been maintained in accordance with Legal Requirements
and prudent business practices.

     4.3 Capitalization, Etc.

          (a) The authorized capital stock of Pubco consists of: (i) 150,000,000 shares of Pubco Common
Stock, of which 250,000 shares have been issued and are outstanding; and (ii) 10,000,000 shares of
Pubco Preferred Stock, of which 5,000,000 have been designated as Pubco Series A Preferred Stock,
and none of which shares have been issued and are outstanding. All of the outstanding shares of
Pubco capital stock have been duly authorized and validly issued

12

 

and are fully paid and nonassessable. All of the outstanding shares of Pubco capital stock
and all of the outstanding subscriptions, options, calls, warrants or rights (whether or not
currently exercisable) to acquire any shares of Pubco capital stock or other securities of Pubco
have been issued in compliance with all applicable federal and state securities laws and other
applicable Legal Requirements and all requirements set forth in the Pubco Documents and Pubco
Contracts, and are owned, beneficially and of record, by Randy Milby. No shares of Pubco capital
stock are subject to a repurchase option in favor of Pubco, and Pubco has never repurchased,
redeemed or otherwise reacquired any shares of Pubco capital stock or other securities of Pubco.

          (b) Except as set forth on Schedule 4.3(b) of the Pubco Disclosure Schedule, there are
no: (i) outstanding subscriptions, options, calls, warrants or rights (whether or not currently
exercisable) to acquire any shares of Pubco capital stock or other securities of Pubco; (ii)
outstanding securities, notes, instruments or obligations that are or may become convertible into
or exchangeable for any shares of Pubco capital stock or other securities of Pubco; (iii)
outstanding or authorized stock appreciation, phantom stock or similar rights with respect to the
capital stock of Pubco; (iv) Contracts (other than this Agreement) under which Pubco is or may
become obligated to sell, transfer, exchange or issue any shares of Pubco capital stock or any
other securities of Pubco; (v) agreements, voting trusts, proxies or understandings with respect to
the voting, or registration under the Securities Act, of any shares of Pubco; or (vi) conditions or
circumstances that may give rise to or provide a basis for the assertion of a claim by any Person
to the effect that such Person is entitled to acquire or receive any shares of Pubco capital stock
or other securities of Pubco.

          (c) Schedule 4.3(c) of the Pubco Disclosure Schedule sets forth a complete and
accurate list of all of the stock option plans and other stock or equity related plans of Pubco.

     4.4 SEC Reports; Pubco Financial Statements. Pubco has filed all reports required to be filed
by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter period as Pubco was required
by law to file such material) (the foregoing materials being collectively referred to herein as the
“SEC Reports” and, together with this Agreement and the Schedules to this Agreement, the
“Disclosure Materials”) on a timely basis or has received a valid extension of such time of filing
and has filed any such SEC Reports prior to the expiration of any such extension. Pubco has
delivered or otherwise made available to the Company copies of all SEC Reports filed within the 10
days preceding the date hereof. As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange Act and the rules
and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed,
contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The financial statements of Pubco
included in the SEC Reports (the “Pubco Financial Statements”) comply in all material respects with
applicable accounting requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing. The Financial Statements have been prepared in
accordance with GAAP, except as may be otherwise specified in the Financial Statements or the notes
thereto, and fairly present in all material respects the assets, liabilities, financial position
and results of operations of Pubco as of and for the dates thereof and the results of operations
and cash flows for the periods then ended,

13

 

subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. The books and records of Pubco are true, accurate and complete in all material
respects. All material agreements to which Pubco is a party or to which the property or assets of
Pubco are subject are included as part of or specifically identified in the SEC Reports.

     4.5 Equipment; Leasehold. All material items of equipment and other tangible assets owned by
or leased to Pubco are in good condition and repair (ordinary wear and tear excepted) and are
adequate for the conduct of Pubco’s business in the manner in which such business is currently
being conducted. Pubco does not own any real property or any interest in real property, except for
the leasehold interest created under the real property leases identified in Schedule 4.5 of
the Pubco Disclosure Schedule (the “Pubco Leased Real Property”).

     4.6 Intellectual Property. Pubco has no Registered IP, Intellectual Property Rights or
Intellectual Property.

     4.7 Contracts. Schedule 4.7 of the Pubco Disclosure Schedule identifies each Pubco
Contract and provides an accurate description of the terms of each Pubco Contract that is not in
written form. Pubco has delivered to the Company accurate and complete copies of all written Pubco
Contracts. Each Pubco Contract is valid, binding and enforceable by Pubco in accordance with its
terms subject to: (i) laws of general application relating to bankruptcy, insolvency and the relief
of debtors; and (ii) rules of law governing specific performance, injunctive relief and other
equitable remedies. Pubco has not violated or breached, or committed any default under, any Pubco
Contract, and, to Pubco’s Knowledge, no other Person has violated or breached, or committed any
default under, any Pubco Contract. Schedule 4.7 of the Pubco Disclosure Schedule provides
an accurate and complete list of all Consents required under any Pubco Contract to consummate the
transactions contemplated by the Transaction Documents.

     4.8 Finder’s Fee. No broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the Contribution or any of the other
transactions contemplated by the Transaction Documents based upon any arrangements or agreements
made by or on behalf of Pubco.

     4.9 Compliance with Legal Requirements. Pubco is, and has at all times been, in compliance
with all applicable material Legal Requirements. To Pubco’s Knowledge, Pubco is, and has at all
times been, in compliance with all other applicable Legal Requirements. Pubco has never received
any notice or other communication from any Person regarding any actual or possible violation of, or
failure to comply with, any Legal Requirement. Pubco has obtained all material permits,
certificates and licenses required by any Legal Requirement for the conduct of its business and the
ownership of its assets. Pubco is not in violation of any such permit, certificate or license, and
no Legal Proceedings are pending or, to the Knowledge of Pubco, threatened to revoke or limit any
such permit, certificate or license.

     4.10 Legal Proceedings. There is no pending Legal Proceeding, and to Pubco’s Knowledge, no
Person has threatened to commence any Legal Proceeding, that (i) involves or affects Pubco or any
of the assets owned or used by Pubco, or (ii) that challenges the Contribution or any of the other
transactions contemplated by the Transaction Documents. No Legal Proceeding has ever been
commenced that involves or affects Pubco or the assets owned

14

 

by Pubco. There is no Order in which Pubco is named or to which any of the assets of Pubco is
subject.

     4.11 No Undisclosed Liabilities. Pubco has no Liabilities, except for (i) Liabilities
reflected on the Pubco Financial Statements, (ii) accounts payable incurred in the ordinary course
of business since the date of the last balance sheet reflected in the Pubco Financial Statements,
none of which are material in nature or exceed $25,000, (iii) Liabilities under the Pubco
Contracts, and (iv) Liabilities incurred in connection with the negotiation of the Transaction
Documents and the transactions contemplated thereby.

     4.12 Tax Matters. All Tax Returns required to be filed by or on behalf of Pubco with any
Governmental Body before the Closing Date (the “Pubco Returns”): (i) have been or will be filed on
or before the applicable due date (including any extensions of such due date); (ii) have been, or
will be when filed, accurately and completely prepared in all material respects in compliance with
all applicable Legal Requirements; and (iii) have been provided or made available to the Company.
All Taxes owed by Pubco have been paid when due, whether or not such amounts are shown on any Pubco
Returns. The Pubco Financial Statements fully accrue all actual and contingent Liabilities for
unpaid Taxes with respect to all periods through the date thereof and Pubco has made adequate
provision for unpaid Taxes after that date in its books and records. No Pubco Return has ever been
examined or audited by any Governmental Body. No claim or Legal Proceeding is pending or has been
threatened against or with respect to Pubco in respect of any Tax. There are no unsatisfied
Liabilities for Taxes, including Liabilities for interest, additions to tax and penalties thereon
and related expenses, with respect to which any notice of deficiency or similar document has been
received by Pubco (other than Liabilities for Taxes asserted under any such notice of deficiency or
similar document which are being contested in good faith by Pubco and with respect to which
adequate reserves for payment have been established). There are no liens for Taxes upon any of the
assets of Pubco except liens for current Taxes not yet due and payable.

4.13 Employee and Labor Matters.

          (a) Schedule 4.13(a) of the Pubco Disclosure Schedule contains a list of all of the
employees of Pubco as of the date of this Agreement and correctly reflects, in all material
respects, the nature and amount of all compensation payable to them, their dates of employment and
their positions. All of the employees listed on Schedule 4.13(a) of the Pubco Disclosure
Schedule are “at will” employees. Pubco has at all times complied with all material Legal
Requirements related to the employment of its employees.

          (b) Except as set forth on Schedule 4.13(b) of the Pubco Disclosure Schedule, there
are no Plans contributed to, maintained or sponsored by Pubco, to which Pubco is obligated to
contribute or with respect to which Pubco has any liability or potential liability, whether direct
or indirect.

          (c) Except as set forth on Schedule 4.13(c) of the Pubco Disclosure Schedule, none of
the employees of Pubco is obligated under any Contract, or subject to any Order, that would
conflict with his or her obligation to use his or her best efforts to promote the interests of
Pubco and the Company after the Closing Date, or that conflicts with the business of Pubco as
presently conducted. During the past ten (10) years, to the Knowledge of Pubco, none of the

15

 

employees of Pubco has been (i) charged with, indicted for or convicted of any misdemeanor
related to moral turpitude or any felony; (ii) a party to a proceeding with respect to any
misdemeanor related to moral turpitude or any felony; or (iii) the subject of a bankruptcy
proceeding or has been the officer or director of a company that has been the subject of a
bankruptcy proceeding. Pubco is not aware that any of its employees has plans to terminate his or
her employment with Pubco, as a result of the Contribution or otherwise.

     4.14 Authority; Binding Nature of Agreement. Pubco has all necessary corporate power and
authority to enter into and to perform its obligations under the Transaction Documents, and the
execution, delivery and performance by Pubco of the Transaction Documents have been duly authorized
by all necessary action on the part of Pubco and its board of directors and stockholders. Each of
the Transaction Documents to which Pubco is a party constitutes the legal, valid and binding
obligation of Pubco, enforceable against Pubco in accordance with its terms, subject to: (i) laws
of general application relating to bankruptcy, insolvency and the relief of debtors; and (ii) rules
of law governing specific performance, injunctive relief and other equitable remedies.

     4.15 Non-Contravention. Neither the execution, delivery or performance of the Transaction
Documents, nor the consummation of any of the transactions contemplated thereby, will directly or
indirectly (with or without notice or lapse of time): (i) result in a violation of any of the
provisions of the Pubco Documents; (ii) to Pubco’s knowledge, result in a violation of, or give any
Governmental Body or other Person the right to challenge any of the transactions contemplated by
the Transaction Documents or to exercise any remedy or obtain any relief under any, Legal
Requirement or any Order to which Pubco, or any of the assets owned, used or controlled by Pubco,
is subject; or (iii) result in a violation or breach of, or result in a default under, with or
without notice or lapse of time, any provision of any Pubco Contract.

     4.16 Environmental Protection. No Hazardous Materials are or, to the Knowledge of Pubco, have
been located in, on or about the Pubco Leased Real Property. To the Knowledge of Pubco, the Pubco
Leased Real Property has not been used for the storage, manufacture or disposal of Hazardous
Materials, and Pubco has not used, or provided permission to others to use, the Pubco Leased Real
Property for the storage, manufacture or disposal of Hazardous Materials. Specifically, but
without limitation, to the Knowledge of Pubco, there are and have been no storage tanks located on
the Pubco Leased Real Property. To the Knowledge of Pubco, no Hazardous Materials have been
transported off site from the Pubco Leased Real Property.

     4.17 Insurance. Schedule 4.17 to the Pubco Disclosure Schedule contains a brief
description of all insurance policies maintained by Pubco with respect to its business, its assets
and the Pubco Leased Real Property. Such policies are valid, binding and enforceable in accordance
with their terms, are in full force and effect, and all premiums due thereon have been paid.

     4.18 Related Party Transactions. The Pubco Contracts do not include any agreement with or any
other commitment to (a) any officer or director of Pubco; (b) any individual related by blood or
marriage to any such officer or director; or (c) any Entity in which Pubco or any such officer,
director or related person has an equity or participating interest.

16

 

4.19 FDA Matters.

          (a) Pubco has been and is in compliance in all material respects with all applicable Legal
Requirements, including the FFDCA, in its development efforts related to any product of Pubco (a
“Pubco Product”) and in conducting any related clinical trials. Pubco has neither (i) made to the
FDA any untrue statement of a material fact regarding any Pubco Product (whether in any submission
or otherwise) nor (ii) failed to disclose to the FDA any material fact required to be disclosed to
it by the FDA regarding such Pubco Product.

          (b) Neither Pubco nor any of its officers, directors, agents, Affiliates or employees (a) was
or is presently debarred pursuant to the GDEA, (b) has been debarred or excluded from participation
in the Medicare program, any state Medicaid program or any other federal health care program, (c)
has been charged with, indicted for, or convicted of a criminal offense that would lead to
debarment or exclusion under the GDEA, or from participation in the Medicare program, any state
Medicaid program or any other federal health care program, or (d) has been or is under
investigation by any Governmental Body for debarment or exclusion action.

     4.20 Disclosure. Pubco has not made any representation, warranty or statement in this
Agreement, or in any of the schedules or exhibits attached to this Agreement, that contains any
untrue statement of a material fact or, to the reasonable knowledge of Pubco or Randy Milby omitted
to state any material fact necessary in order to make the statements made herein and therein, in
the light of the circumstances under which they were made, not misleading.

5. Additional Covenants of the Parties.

     5.1 Indemnification of Officers and Directors. All rights to indemnification and advancement
of expenses existing in favor of those Persons who are or were directors, officers, agents or
employees of the Company (the “Indemnified Persons”) for acts and omissions occurring prior to the
Effective Time, as provided in the Company’s articles of incorporation or bylaws (in each case as
in effect as of the date of this Agreement), shall survive the Contribution and shall be fully
complied with by Pubco and the Company, to the fullest extent permitted by the laws of the State of
Delaware or the laws of the State of North Carolina, as applicable.

     5.2 Termination of Certain Agreements. Each of the following agreements shall have been
terminated, effective as of the Closing, in accordance with their respective terms, and the parties
to each of the following agreements shall have waived all of their respective rights thereunder,
effective as of, and contingent upon, the Closing: (i) Loan Agreement, dated as of February 14,
2006 and as amended on July 5, 2006, by and between the Company and PharmaBio Development, Inc.,
(ii) Security Agreement, dated as of February 14, 2006, by and between the Company and PharmaBio
Development, Inc., (iii) Promissory Note, dated February 14, 2006, with an aggregate principal face
amount of $5,000,000 by PharmaBio Development, Inc., as maker, and the Company, as borrower, (iv)
Investor Rights Agreement, dated as of February 14, 2006, by and among the Company, the
shareholders of the Company as of such date, and PharmaBio Development Inc. (d/b/a NovaQuest), a
North Carolina corporation, (v) Investors’ Rights Agreement, dated as of July 5, 2006, by and among
the Company and the stockholders of the Company signatory thereto, (vi) Voting Agreement, dated as
of July 5, 2006, by and among the Company and the stockholders of the Company signatory thereto,
and (v) an

17

 

acknowledgement of payment and agreement of termination relating to the two outstanding
promissory notes payable by Pubco to Randy Milby in the aggregate principal amount of $17,500.

     5.3 Sirion/Sytera Merger Agreement. From and after the Effective Time, Pubco shall accept and
assume all of the rights and obligations of the Company pursuant to the Sirion/Sytera Merger
Agreement, including all obligations to pay to the holders of Sytera Securities (as defined in the
Sirion/Sytera Merger Agreement) if and when due all of the Aggregate Additional Payments (as
defined in the Sirion/Sytera Merger Agreement). For the avoidance of doubt, the parties expressly
acknowledge and agree that all payments of portions the Aggregate Additional Payments required
pursuant to the terms of the Sirion/Sytera Merger Agreement to be paid in the form of Company
Common Stock shall, from and after the Effective Time, be paid in the form of Pubco Common Stock.

     5.4 Officers and Directors of Pubco. Pubco agrees that it shall take all actions necessary to
ensure that, effective as of the Effective Time, the officers and directors of Pubco shall be as
set forth on Exhibit B.

6. Company/Contributors Closing Deliverables. In addition to any other deliverables
expressly contemplated by the Transaction Documents:

     6.1 Consents. At the Closing, the Company shall deliver to Pubco copies of all Consents
required to be obtained by the Company in connection with the transactions contemplated by the
Transaction Documents (including the Consents, if any, identified in Schedule 2.7 of the
Company Disclosure Schedule).

     6.2 Agreements and Documents. At the Closing, the Company shall deliver to Pubco copies of
the following agreements and documents, each of which shall be executed and delivered by the other
relevant parties thereto, and each of which at the Closing shall be in full force and effect
(except as specifically indicated below):

          (a) an investors’ rights agreement, in the form attached hereto as Exhibit C (the “Investors’
Rights Agreement”), executed by each of Avalon Ventures VI GP Fund, LLC, Avalon Ventures VI, L.P.,
Avalon Ventures VII, L.P., Widder Family Limited Partnership, The Lichter Family Trust, Dr. Nathan
L. Mata, Gabriel Travis, M.D., PharmaBio Development Inc. (d/b/a NovaQuest), Barry Butler, Roger
Vogel, Susan Benton and Phillipe Boulangeat, which shall become effective when executed and
delivered by the Purchasers in connection with the consummation of the Stock Purchase;

          (b) a legal opinion, covering the matters listed in the document attached hereto as Exhibit D,
addressed to Pubco from Hill, Ward & Henderson, P.A.; and

          (c) a certificate, executed by the Secretary of the Company and dated the Closing Date, as to
the certificate of incorporation, certificate of designations and
bylaws of the Company, and the
certificate of formation and limited liability company operating agreement of RxDR, each as in
effect at the Closing, and attaching each thereto.

18

 

7. Pubco Closing Deliverables. In addition to any other deliverables expressly
contemplated by the Transaction Documents:

     7.1 Consents. At the Closing, Pubco shall deliver to the Contributors copies of all Consents
required to be obtained by Pubco in connection with the transactions contemplated by the
Transaction Documents (including the Consents, if any, identified in Schedule 4.7 of the
Pubco Disclosure Schedule).

     7.2 Agreement and Documents. At the Closing, Pubco shall deliver to the Contributors copies
of the following agreements and documents, each of which shall be executed and delivered by the
other relevant parties thereto, and each of which at the Closing shall be in full force and effect
(except as specifically indicated below):

          (a) the Investors’ Rights Agreement executed by Pubco and Randy Milby, which shall become
effective when executed and delivered by the Purchasers in connection with the consummation of the
Stock Purchase;

          (b) a legal opinion, covering the matters listed in the document attached hereto as Exhibit E,
addressed to the Contributors from Feldman, Weinstein & Smith LLP; and

          (c) a certificate, executed by the Secretary of Pubco and dated the Closing Date, as to the
certificate of incorporation, certificate of designations and bylaws of Pubco, each as in effect at
the Closing, and attaching each thereto.

8. Miscellaneous. 

     8.1 Survival of Representations, Warranties and Covenants. The representations and warranties
made by the Company in Section 2 and by Pubco in Section 4 shall survive for a period of six (6)
months following the Effective Time, at which point such representations and warranties shall
terminate and expire, and any liability of the parties with respect to such representations and
warranties shall thereupon cease. The representations and warranties made by the Contributors in
Section 3 shall terminate and expire as of the Effective Time, and any liability of the
Contributors with respect to such representations and warranties shall thereupon cease. All of the
covenants, agreements and obligations of the parties contained in this Agreement shall survive: (i)
until fully performed or fulfilled, unless noncompliance with such covenants, agreements or
obligations is waived in writing by the party or parties entitled to such performance; or (ii) if
not fully performed or fulfilled, until the expiration of the relevant statute of limitations with
respect thereto.

     8.2 Fees and Expenses. Each party to this Agreement shall bear and pay all fees, costs and
expenses (including all legal fees and accounting fees) that have been incurred or that are
incurred by such party in connection with the transactions contemplated by the Transaction
Documents. Notwithstanding the provisions of this Section 8.2, the parties agree that the legal
fees and expenses incurred by Pubco in connection with the transactions contemplated by this
Agreement shall be paid from the funds received by Pubco in connection with the Stock Purchase.

19

 

     8.3 Attorneys’ Fees. If any action or proceeding relating to this Agreement or the
enforcement of any provision of this Agreement is brought against any party hereto, the prevailing
party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements in addition
to any other relief to which the prevailing party may be entitled.

     8.4 Notices. All notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal business
hours of the recipient; if not, then on the next Business Day; (iii) three (3) Business Days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or
(iv) one (1) Business Day after deposit with a nationally recognized overnight courier, specifying
next-day delivery, with written verification of receipt. All communications shall be sent to the
respective parties at the following addresses (or at such other addresses as shall be specified by
notice given in accordance with this Section 8.4):

If to Pubco:

Tenby Pharma Inc.

270 Presidential Drive

Wilmington, DE 19807

Attention: Randy Milby

Fax: (302) 338-8067

E-mail: m5@milb95.org

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

Feldman Weinstein & Smith LLP

420 Lexington Avenue

New York, NY 10170

Attention: David Feldman, Esq.

Fax: (212) 997-4242

E-mail: dfeldman@feldmanweinstein.com

If to the Company or any Contributor:

Sirion Therapeutics, Inc.

3110 Cherry Palm Drive, Suite 340

Tampa, FL 33619

Attention: Barry Butler

Fax: (813) 496-7328

E-mail: bbutler@siriontherapeutics.com

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

Hill, Ward & Henderson, P.A.

101 East Kennedy Boulevard, Suite 3700

Tampa, FL 33602

20

 

Attention: Reid Haney, Esq.

Fax: (813) 221-2900

E-mail: rhaney@hwhlaw.com

and

Paul, Hastings, Janofsky & Walker LLP

3579 Valley Centre Drive

San Diego, CA 92130

Attention: Carl Sanchez, Esq.

Fax: (858) 720-2555

E-mail: carlsanchez@paulhastings.com

     8.5 Headings. The headings contained in this Agreement are for convenience of reference only,
shall not be deemed to be a part of this Agreement and shall not be referred to in connection with
the construction or interpretation of this Agreement.

     8.6 Governing Law. This Agreement shall be construed in accordance with, and governed in all
respects by, the internal laws of the State of Delaware without giving effect to its principles of
conflicts of laws.

     8.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their successors and assigns, if any. Neither party shall assign or
delegate, by operation of law or otherwise, its rights or obligations under this Agreement to any
Person with the prior written consent of the other party.

     8.8 Remedies Cumulative; Specific Performance. The rights and remedies of the parties hereto
shall be cumulative and not alternative. The parties agree that, in the event of any breach or
threatened breach by any party to this Agreement of any covenant, obligation or other provision set
forth in this Agreement for the benefit of any other party to this Agreement, such other party
shall be entitled, in addition to any other remedy that may be available to it, to: (i) a decree or
order of specific performance or mandamus to enforce the observance and performance of such
covenant, obligation or other provision; and (ii) an injunction restraining such breach or
threatened breach. The parties further agree that no Person shall be required to obtain, furnish
or post any bond or similar instrument in connection with or as a condition to obtaining any remedy
referred to in this Section 8.8, and the parties irrevocably waive any right they may have
to require the obtaining, furnishing or posting of any such bond or similar instrument.

     8.9 Waiver. No failure on the part of any Person to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any Person in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
No Person shall be deemed to have waived any claim arising out of this Agreement, or any power,
right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered on
behalf of such Person, and any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

21

 

     8.10 Amendments. This Agreement may not be amended, modified, altered or supplemented other
than by means of a written instrument duly executed and delivered on behalf of all of the parties
hereto.

     8.11 Severability. If one or more provisions of this Agreement are held by a court of
competent jurisdiction to be unenforceable under applicable Legal Requirements, the parties agree
to promptly renegotiate such provision in good faith. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement in writing for such provision, then: (i) such
provision shall be excluded from this Agreement; (ii) the balance of the Agreement shall be
interpreted as if such provision were so excluded; and (iii) the balance of the Agreement shall be
enforceable in accordance with its terms.

     8.12 Parties in Interest. None of the provisions of this Agreement are intended to provide
any rights or remedies to any Person other than the parties hereto and their respective successors
and assigns.

     8.13 Construction.

          (a) For purposes of this Agreement, whenever the context requires: (i) the singular number
shall include the plural, and vice versa; (ii) the masculine gender shall include the feminine and
neuter genders; (iii) the feminine gender shall include the masculine and neuter genders; and (iv)
the neuter gender shall include the masculine and feminine genders.

          (b) Each of the parties hereto has been represented by legal counsel except to the extent that
such party has declined legal counsel. Accordingly, the parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement.

          (c) As used in this Agreement, the words “include” and “including”, and variations thereof,
shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the
words “without limitation”.

          (d) Except as otherwise indicated, all references in this Agreement to “Sections” and
“Exhibits” are intended to refer to Sections of this Agreement and Exhibits to this Agreement.

     8.14 Entire Agreement. This Agreement, together with the schedules and exhibits hereto and
thereto, sets forth the entire understanding of the parties hereto relating to the subject matter
hereof and thereof and supersedes all prior agreements and understandings among or between any of
the parties relating to the subject matter hereof and thereof.

     8.15 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which together shall constitute one and the same
instrument. The exchange of copies of this Agreement or amendments thereto and of signature pages
by facsimile transmission or by email transmission in portable digital format, or similar format,
shall constitute effective execution and delivery of such instrument(s) as to the parties and may
be used in lieu of the original Agreement or amendment for all purposes.

22

 

Signatures of the parties transmitted by facsimile or by email transmission in portable
digital format, or similar format, shall be deemed to be their original signatures for all
purposes.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

23

 

     In Witness Whereof, the parties have duly executed this Contribution
Agreement as of the first date written above.

	 	 	 	 	 
	 	Tenby Pharma Inc.

 	 
	 	By:  	/s/ Randy Milby 	 
	 	 	Randy Milby 	 
	 	 	President 	 
	 
	 	Sirion Therapeutics, Inc.

 	 
	 	By:  	/s/ Barry Butler 	 
	 	 	Barry Butler 	 
	 	 	President 	 
	 

[COUNTERPART SIGNATURE PAGES FOR CONTRIBUTORS TO FOLLOW]

 

 

[COUNTERPART SIGNATURE PAGE TO CONTRIBUTION AGREEMENT]

	 	 	 	 	 	 	 
	 	 	Avalon Ventures VI, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Avalon Ventures GP, LLC

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin J. Kinsella 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	Avalon Ventures VI GP Fund, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Avalon Ventures GP, LLC

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin J. Kinsella	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	Avalon Ventures VII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Avalon Ventures VII GP, LLC

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin J. Kinsella	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Managing Member	 	 

 

 

[COUNTERPART SIGNATURE PAGE TO CONTRIBUTION AGREEMENT]

	 	 	 	 	 	 	 	 	 	 	 
	Widder Family Limited Partnership	 	 	 	The Lichter Family Trust	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kenneth J. Widder 	 	 	 	By:	 	/s/ Jay Lichter 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Kenneth J. Widder, M.D.
	 	 	 	 	 	Jay Lichter, Ph.D.	 	 
	 

	 	Partner
	 	 	 	 	 	Trustee	 	 
	 
	 	/s/ Nathan L. Mata 	 	 	 	 	 	/s/ Gabriel Travis 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Dr. Nathan L. Mata
	 	 	 	 	 	Gabriel Travis, M.D.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	The Stryer Revocable Trust	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Lubert Stryer 	 	 	 	 	 	/s/ John Saari 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Lubert Stryer
	 	 	 	 	 	John Saari	 	 
	 

	 	Trustee	 	 	 	 	 	 	 	 
	 
	 	/s/ John Crabb 	 	 	 	 	 	/s/ Dean Bok 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	John Crabb
	 	 	 	 	 	Dean Bok	 	 
	 
	 	/s/ Thaddeus Dryja 	 	 	 	 	 	/s/ Charles Zuker 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Thaddeus Dryja
	 	 	 	 	 	Charles Zuker	 	 

 

 

[COUNTERPART SIGNATURE PAGE TO CONTRIBUTION AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Dee Conger 	 	 	 	/s/ Rich Heyman 	 	 
	 

	 	 

Dee Conger
	 	 	 	 

Rich Heyman
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Ron Evans 	 	 	 	/s/ David Lockhart 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Ron Evans
	 	 	 	David Lockhart	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Steve Nusinowitz 	 	 	 	/s/ Yun Han 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Steve Nusinowitz
	 	 	 	Yun Han	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Tam Bui 	 	 	 	/s/ Fran Senchak 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Tam Bui
	 	 	 	Fran Senchak	 	 

 

 

[COUNTERPART SIGNATURE PAGE TO CONTRIBUTION AGREEMENT]

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Barry Butler 	 	 	 	/s/ Roger Vogel 	 	 
	 

	 	 

Barry Butler
	 	 	 	 

Roger Vogel
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	/s/ Susan Benton 	 	 	 	/s/ Philippe Boulangeat 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Susan Benton
	 	 	 	Philippe Boulangeat	 	 

 

 

[COUNTERPART SIGNATURE PAGE TO CONTRIBUTION AGREEMENT]

	 	 	 	 	 
	 	PharmaBio Development Inc. (d/b/a NovaQuest)

 	 
	 	By:  	/s/ Kerry E. Zook 	 
	 	 	Kerry E. Zook 	 
	 	 	Vice President 	 
	 

 

 

Schedule A

LIST OF CONTRIBUTORS

	 
	Avalon Ventures VI, L.P.

	Avalon Ventures VI GP, LLC

	Avalon Ventures VII, L.P.

	Widder Family Limited Partnership

	The Lichter Family Trust

	Dr. Nathan L. Mata

	The Stryer Revocable Trust

	Gabriel Travis, M.D.

	John Saari

	John Crabb

	Dean Bok

	Thaddeus Dryja

	Charles Zuker

	Dee Conger

	Rich Heyman

	Ron Evans

	David Lockhart

	Steve Nusinowitz

	Yun Han

	Tam Bui

	Fran Senchak

	Susan Benton

	Philippe Boulangeat

	Barry Butler

	Roger Vogel

	PharmaBio Development Inc. (d/b/a NovaQuest)

 

 

Exhibit A

CERTAIN DEFINITIONS

     For purposes of this Agreement, the following terms shall have the following respective
meanings:

     “Affiliate” shall mean, with respect to any Person, any other Person, directly or indirectly,
controlling, controlled by or under common control with such Person. For purposes of this
definition a Person is deemed to “control” an Entity if such Person, directly or indirectly, (i)
has the power to direct the management or policies of such Entity; or (ii) owns, beneficially or of
record (a) an amount of voting securities or other interests in such Entity that is sufficient to
enable such Person to elect at least a majority of the members of such Entity’s board of directors
or other governing body or (b) at least fifty percent (50%) of the outstanding equity or financial
interests of such Entity.

     “Applicable Per Share Contribution Consideration” shall mean the Series A Per Share
Contribution Consideration, the Series A-1 Per Share Contribution Consideration or the Common Stock
Per Share Contribution Consideration, as applicable.

     “Business Day” shall mean any day except Saturday, Sunday and any day which shall be a federal
legal holiday or a day on which either the SEC or banking institutions in the State of New York are
authorized or required by law or other governmental action to close.

     “Company Common Stock” shall mean the common stock, par value $0.001 per share, of the
Company.

     “Company Contract” shall mean any Contract, including any amendment or supplement thereto: (i)
to which the Company or RxDR is a party; (ii) by which the Company, RxDR or any of their respective
assets are or may become bound or under which the Company or RxDR has, or may become subject to,
any obligation; or (iii) under which the Company or RxDR has or may acquire any right or interest.

     “Company Disclosure Schedule” shall mean the schedule, dated as of the date of this Agreement,
delivered to Pubco on behalf of the Company on the date of this Agreement.

     “Company IP” shall mean all Intellectual Property Rights and Intellectual Property owned by or
exclusively licensed to the Company or RxDR in any country or other geographic territory.

     “Company Securities” shall mean and include all outstanding shares of Company Common Stock,
Company Series A Preferred Stock and Company Series A-1 Preferred Stock, in each case as of
immediately prior to the Effective Time.

     “Company Series A Preferred Stock” shall mean the Series A Preferred Stock, par value $0.001
per share, of the Company.

 

 

     “Company Series A-1 Preferred Stock” shall mean the Series A-1 Preferred Stock, par value
$0.001 per share, of the Company.

     “Consent” shall mean any approval, consent, ratification, permission, waiver or authorization
(including any Governmental Authorization) of any third party (including any Governmental Body).

     “Contract” shall mean any written, oral or other agreement, contract, subcontract, lease,
understanding, instrument, note, warranty, license, sublicense, insurance policy, benefit plan or
legally binding commitment or undertaking of any nature, whether express or implied.

     “Contributed Interest” shall mean any Company Security that is contributed to Pubco in
accordance with Section 1.1.

     “Encumbrance” shall mean any lien, pledge, hypothecation, charge, mortgage, security interest,
encumbrance, claim, option, right of first refusal, preemptive right, community property interest
or restriction of any nature affecting property, real or personal, tangible or intangible,
including any restriction on the voting of any security, any restriction on the transfer of any
security or other asset, any restriction on the receipt of any income derived from any asset and
any filing of or agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statute of any jurisdiction).

     “Entity” shall mean any corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, limited liability company, joint
venture, estate, trust, company (including any limited liability company or joint stock company),
firm or other enterprise, association, organization or entity.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “FDA” shall mean the United States Food and Drug Administration, or any successor Governmental
Body in the United States.

     “FTE” shall mean the equivalent of a full-time twelve (12) months’ (including normal
vacations, sick days and holidays) work of an employee of or a consultant to a party;
provided, however, that each party understands and agrees that the other party
retains complete discretion to change the identity of any such employee or consultant.

     “GAAP” shall mean generally accepted accounting principles in effect in the United States of
America applied on a consistent basis throughout the periods covered.

     “Governmental Authorization” shall mean any: (i) approval, permit, license, certificate,
franchise, permission, clearance, registration, qualification or other authorization issued,
granted, given or otherwise made available by or under the authority of any Governmental Body or
pursuant to any Legal Requirement; or (ii) right under any Contract with any Governmental Body.

 

 

     “Governmental Body” shall mean any: (i) nation, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (ii) federal, state, local,
municipal, foreign, supranational or other government (including the European Union); or (iii)
governmental, self-regulatory or quasi-governmental authority of any nature, including any
governmental division, department, agency, commission, instrumentality, official, organization,
unit, body or Entity and any court or other tribunal.

     “Initial Sytera FTEs” shall mean six (6) FTEs (initially Kenneth Widder, Jay Lichter, Nathan
Mata, Yun Han, Tam Bui and Fran Senchak).

     “Intellectual Property” shall mean and include all apparatus, biological materials, clinical
data, chemical compositions or structures, databases and data collections, diagrams, formulae,
inventions (whether or not patentable), know-how, logos, marks (including brand names, product
names, logos, and slogans), methods, processes, proprietary information, protocols, schematics,
specifications, software, techniques, URLs, websites, works of authorship, and other forms of
technology (whether or not embodied in any tangible form and including all tangible embodiments of
the foregoing such as instruction manuals, laboratory notebooks, prototypes, samples, studies, and
summaries).

     “Intellectual Property Rights” shall mean and include all past, present, and future rights of
the following types, which may exist or be created under the Legal Requirements of any jurisdiction
in the world: (i) rights associated with works of authorship, including exclusive exploitation
rights, copyrights and moral rights; (ii) trademark and trade name rights and similar rights; (iii)
trade secret rights; (iv) patents and industrial property rights; (v) other proprietary rights in
Intellectual Property of every kind and nature; and (vi) all registrations, renewals, extensions,
combinations, divisions, or reissues of, and applications for, any of the rights referred to in the
foregoing clauses “(i)” through “(vi)” of this definition.

     “Knowledge” shall mean: (i) with respect to the Company, the actual knowledge of Kenneth
Widder, Jay Lichter, Nathan Mata, Barry Butler or Roger Vogel; and (ii) with respect to Pubco, the
actual knowledge of Randy Milby.

     “Legal Proceeding” shall mean any ongoing or threatened action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, investigative or appellate proceeding),
hearing, inquiry, audit, examination or investigation commenced, brought, conducted or heard by or
before, or otherwise involving, any court or other Governmental Body or any arbitrator or
arbitration panel.

     “Legal Requirement” shall mean any federal, state, local, municipal, foreign, international,
multinational or other law, statute, constitution, principle of common law, resolution, ordinance,
code, edict, decree, rule, regulation, ruling or requirement issued, enacted, adopted, promulgated,
implemented or otherwise put into effect by or under the authority of any Governmental Body.

     “Liabilities” shall mean any debt, obligation, duty or liability of any nature (including
unknown, undisclosed, unmatured, unaccrued, contingent, or indirect) regardless of whether such
debt, obligation, duty or liability would be required to be disclosed on a balance sheet prepared

 

 

in accordance with GAAP and regardless of whether such debt, obligation, duty or liability is
immediately due and payable.

     “Order” shall mean any writ, decree, permanent injunction, order or similar action used in a
Legal Proceeding.

     “Person” shall mean any natural person, Entity or Governmental Body.

     “Product” shall mean any preparation which contains Syt101 as an active ingredient for sale by
prescription, over-the-counter or any other method.

     “Pubco Common Stock” shall mean the common stock, par value $0.0001 per share, of Pubco.

     “Pubco Contract” shall mean any Contract, including any amendment or supplement thereto: (i)
to which Pubco is a party; (ii) by which Pubco or any of its assets is or may become bound or under
which Pubco has, or may become subject to, any obligation; or (iii) under which Pubco has or may
acquire any right or interest.

     “Pubco Disclosure Schedule” shall mean the schedule, dated as of the date of this Agreement,
delivered to the Company on behalf of Pubco on the date of this Agreement.

     “Pubco IP” shall mean all Intellectual Property Rights and Intellectual Property owned by or
exclusively licensed to Pubco in any country or other geographic territory.

     “Pubco Preferred Stock” shall mean the preferred stock, par value $0.0001 per share, of Pubco.

     “Pubco Series A Preferred Stock” shall mean the Series A Preferred Stock, par value $0.0001
per share, of Pubco.

     “Registered IP” shall mean all Intellectual Property Rights that are registered, filed, or
issued under the authority of any Governmental Body, including all patents, registered copyrights,
registered mask works, and registered trademarks and all applications for any of the foregoing.

     “Representatives” shall mean officers, directors, employees, consultants, agents, attorneys,
accountants, advisors and representatives.

     “RxDR” shall mean RX Development Resources, LLC, a Florida limited liability company.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

 

     “Sirion/Sytera Merger Agreement” shall mean that certain Agreement and Plan of Merger and
Reorganization, dated as of July 5, 2006, by and among the Company, Sytera, Inc., a Delaware
corporation, Kenneth J. Widder, M.D., as the representative of the holders of Sytera capital stock,
and Barry Butler, as the representative of the holders of Sirion securities, pursuant to which
Sytera, Inc. was merged with and into the Company, with the Company continuing as the surviving
corporation.

     Any Entity shall be deemed to be a “Subsidiary” of another Person if such Person directly or
indirectly: (i) has the power to direct the management or policies of such Entity; or (ii) owns,
beneficially or of record (a) an amount of voting securities or other interests in such Entity that
is sufficient to enable such Person to elect at least a majority of the members of such Entity’s
board of directors or other governing body or (b) at least fifty percent (50%) of the outstanding
equity or financial interests of such Entity.

     “Tax” shall mean any tax (including any income tax, franchise tax, capital gains tax, gross
receipts tax, value-added tax, surtax, excise tax, ad valorem tax, transfer tax, stamp tax, sales
tax, use tax, property tax, business tax, withholding tax or payroll tax), levy, assessment,
tariff, duty (including any customs duty), deficiency or fee, and any related charge or amount
(including any fine, penalty or interest), imposed, assessed or collected by or under the authority
of any Governmental Body.

     “Tax Return” shall mean any return (including any information return), report, statement,
declaration, estimate, schedule, notice, notification, form, election, certificate or other
document or information filed with or submitted to, or required to be filed with or submitted to,
any Governmental Body in connection with the determination, assessment, collection or payment of
any Tax or in connection with the administration, implementation or enforcement of or compliance
with any Legal Requirement relating to any Tax.

     “Third Party” shall mean any Person other than Pubco, the Company, the Contributors or any of
their respective Affiliates.

     “Transaction Documents” shall mean, collectively, this Agreement and the Investors’ Rights
Agreement.

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