Document:

Exhibit 10.1

 

LITIGATION
FUNDING AND INDEMNIFICATION agreement

 

This Litigation Funding
and Indemnification Agreement, dated as of November 17, 2020, is by and between PBM RG Holdings, LLC, a Delaware limited liability
company (“Holdings”), and RareGen, LLC, a Delaware limited liability company (“RareGen,”
and together with Holdings, the “Parties”).

 

ARTICLE I

DEFINITIONS

 

1.1          
Definitions. The following capitalized terms shall have the meanings specified in this Section 1.1. Other
terms are defined in the text of this Agreement and those terms shall have the meanings respectively assigned to them.

 

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

 

“Agreement”
means this Litigation Funding and Indemnification Agreement, as amended from time to time in accordance with Section 12.7.

 

“Business
Day” means any day other than a day on which the Securities and Exchange Commission shall be closed.

 

“Business
Deal” means any transaction or arrangement relating to the Litigation or the Claims entered into by RareGen and any Person,
whereby such Person provides a benefit to RareGen or any of RareGen’s Affiliates, including any transaction or arrangement
with any Defendant.

 

“Claims”
means the claims that RareGen and Sandoz have against each Defendant in the Litigation and any related claims, including any claims
brought against or between RareGen and/or Sandoz in the Litigation.

 

“Collateral”
shall have the meaning assigned to such term in Section 10.1.

 

“Confidential
Information” means any information relating to: (a) the Transaction Documents, including any discussions and negotiations
related thereto, the existence of them, or the identity of the Parties or their respective Affiliates and owners; the Litigation
or the Claims, including the names of the parties and potential other parties to the Claims; the factual, legal, technical, economic
and financial background of the Claims; the procedural status of the Claims; the planned legal and procedural strategies and tactics
for the pursuing of the Claims or Settlement, or a Business Deal, or collection of the Litigation Proceeds; and the expected recoveries
from the Claims; (b) factual information, evidentiary information, legal theories, procedures, decision trees, experts’ or
other consultants’ reports, attorney or other professional work product; (c) billing arrangements, billing rates, financial
arrangements, contingent fee agreements, contingent fee percentages, costs, finances, investments, investors, price lists, pricing,
profit margins, profitability and quotations; (d) any financial statements and information, data, documents, reports and materials
relating to the Litigation or the Claims; (e) information concerning accountants, agents, law firms, lawyers and advisors; and
(f) other proprietary or nonpublic information, data or material, in all cases regardless of whether such information is (i) written
or oral, irrespective of the form or storage medium, and (ii) specifically identified as “confidential” or which, by
virtue of its nature, would be understood to be confidential by a reasonable Recipient. “Confidential Information”
includes analytics derived from other Confidential Information. “Confidential Information” does not include information
that (x) was or becomes generally available to the public other than as a result of a disclosure by the Recipient in violation
of this Agreement; (y) was actually known to the Recipient on a non-confidential basis prior to its disclosure; or (z) was developed
independently of, and without use of or reference to, the Confidential Information or information derived from the Confidential
Information.

 

    	 	1	 

     

    

 

“Control”
(including the terms “Controlled by” and “under common Control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management policies or affairs of a Person, whether through ownership
of voting securities of a Person, by contract or otherwise.

 

“Counsel”
means Current Counsel and/or any New Counsel.

 

“Counsel Fees”
means any and all fees payable by RareGen to Counsel for legal services related to the Litigation.

 

“Court”
means the courts or other tribunals in which the Litigation is conducted.

 

“Current Counsel”
means Quinn Emanuel Urquhart & Sullivan, LLP.

 

“Default Rate”
means a rate per annum equal to the lesser of (a) 9% per annum compounded monthly and (b) the highest applicable rate permitted
by law.

 

“Defendant”
means United Therapeutics, Smiths, any of their respective Affiliates, and any other defendant to the Litigation, and each of the
successors and assigns of the foregoing.

 

“Deployment”
shall have the meaning assigned to such term in Section 2.1.

 

“Deployment
Request” shall have the meaning assigned to such term in Section 2.3.

 

“Disclosing
Party” means the Party to this Agreement who provides Confidential Information to the Recipient.

 

“Encumbrance”
means any mortgage, pledge, lien, security or ownership interest, charge, hypothecation, or other encumbrance, option agreement,
transfer, set-off right, security or subordination arrangement, or other similar interest or arrangement of any kind.

 

“Engagement
Agreements” means all engagement and any other agreements with Counsel entered into by RareGen (and, if applicable, Holdings)
in connection with the Claims and the Litigation, including any amendments or modifications thereto.

 

“Final Resolution”
means the resolution of the Litigation that substantially concludes the Litigation with respect to RareGen pursuant to (a) a final,
non-appealable, legal and valid judgment of the Court binding all Defendants, or (b) a Settlement agreement or agreements between
RareGen and all Defendants.

 

“Governmental
Authority” means any court, tribunal, arbitrator, authority, agency, commission, official, body or other instrumentality
of the United States, any foreign country, or any domestic or foreign state, province, county, city, other political subdivision
or any other similar body or organization exercising governmental or quasi-governmental power or authority.

 

“Holdings”
shall have the meaning assigned to such term in the introduction to this Agreement.

 

“Holdings’
Share” means an amount equal to the Litigation Proceeds, less (i) any and all amounts payable to Senior Funder pursuant
to the terms of the Senior Funder Agreement, and (ii) any and all Litigation Expenses and Counsel Fees that are then payable by
Holdings pursuant to Article II of this Agreement and for which RareGen has not been reimbursed for pursuant to this Agreement.

 

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“Litigation”
means the case captioned Sandoz Inc. and RareGen, LLC v. United Therapeutics Corporation and Smiths Medical ASD, Inc., No. 3:19-cv-10170,
filed in April 2019 in the District Court of New Jersey, including the same if transferred to any other jurisdictions or forums
(arbitral, judicial or otherwise), together with (a) any and all claims, suits, causes of action, proceedings, and other rights
relating to, or arising therefrom, (b) any and all appellate proceedings, proceedings on remand, and enforcement, ancillary, parallel
or alternate dispute resolution proceedings and processes arising out of or related thereto, and (c) any additional cases, lawsuits,
arbitration matters or other proceedings filed or initiated by or on behalf of RareGen or any of RareGen’s Affiliates against
Defendants based upon the same or substantially similar facts.

 

“Litigation
Expenses” means reasonable out-of-pocket costs incurred by or on behalf of RareGen related to the Litigation, including
expert witness fees and costs, and any costs, fees, penalties or financial sanctions that become due and payable as a result of
the Litigation. Litigation Expenses shall not include Counsel Fees.

 

“Litigation
Proceeds” means any and all proceeds, receivables, property, cash, concessions and other consideration actually paid
or transferred directly or indirectly to or for the benefit of RareGen or any of RareGen’s Affiliates in connection with
the Litigation, the Promotion Agreement (solely to the extent related to the Litigation) or any Claims (whether by judgment, Settlement,
Business Deal, any payment under the Promotion Agreement (solely to the extent related to the Litigation) or otherwise), including,
to the extent consistent with the foregoing, any damages (punitive or otherwise), penalties, interest, award of attorneys’
fees and the reimbursement for costs and expenses, and other amounts paid or property transferred or concessions made to or for
the benefit of RareGen or any of RareGen’s Affiliates in respect of the Litigation, the Promotion Agreement (solely to the
extent related to the Litigation) or any Claims; provided, however, that any such proceeds, receivables, property, cash, concessions
and other consideration that is payable by RareGen to Sandoz under the terms of the Promotion Agreement shall be deemed not to
be Litigation Proceeds. The Litigation Proceeds will be calculated and determined without taking into consideration and prior to
deduction of (a) any Taxes payable by RareGen or any of RareGen’s Affiliates in connection with the Litigation Proceeds,
(b) setoffs of any kind, including setoffs in respect of any claim or counterclaim asserted against RareGen or any of RareGen’s
Affiliates by any Person, and (c) fees and/or expenses incurred in connection with the Litigation or the collection of any Litigation
Proceeds. Notwithstanding anything to the contrary in this Agreement, any of the following items received from Smiths or its Affiliates
shall be deemed not to be “Litigation Proceeds”, shall be expressly excluded from this definition and shall be disregarded
for purposes of calculating Holdings’ Share: (i) any and all cartridges, (ii) the specifications for Smiths’ cartridges,
(iii) copies of release test methods and release specifications used by Smiths for its cartridges, (iv) copies of the standard
operating procedures and manufacturing methods used by Smiths in the manufacture of Smiths’ cartridges, (v) a copy of Smiths’
full, unredacted 510(k) for its cartridges and/or pump, (vi) a license to copy Smiths’ 510(k) or any portions thereof, as
applicable, for purposes of including it in a 510(k) submission for a cartridge developed by or for RareGen, (vii) a license to
any relevant intellectual property associated with Smiths’ cartridge, (viii) a letter of support for a cartridge developed
by or for RareGen that could be sent to a regulatory authority (including the FDA), (ix) an agreement that Smiths will not disparage
any cartridge developed by or for RareGen, (x) a commitment that, assuming a cartridge developed by or for RareGen meets Smiths’
specifications, Smiths will communicate to customers and the market that the cartridge developed by or for RareGen is compatible
with Smiths’ pumps and appropriate for use for the treatment of pulmonary arterial hypertension, (xi) a commitment from Smiths
that Smiths will support the refurbishment and maintenance of pumps that are available for use with Sandoz’s treprostinil
product, and (xii) a commitment that Smiths will continue to supply all other disposables and consumables necessary for use with
pumps that are available for use with Sandoz’s treprostinil product.

 

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“New Counsel”
means any substitute or additional legal counsel engaged by RareGen (and, if applicable, Holdings) with respect to the Claims or
the Litigation.

 

“Order”
means any order, judgment, ruling, injunction, award, decree or writ of any Governmental Authority.

 

“Parties”
shall have the meaning assigned to such term in the introduction to this Agreement.

 

“Person”
means any natural person, corporation, partnership, limited liability company, joint stock company, joint venture, association,
company, estate, trust or other organization, whether or not a legal entity, custodian, trustee, executor, administrator, nominee
or entity in a representative capacity and any Governmental Authority.

 

“Proceeds”
shall have the meaning assigned to such term in the UCC.

 

“Promotion
Agreement” means that certain Promotion Agreement, dated as of August 1, 2018, by and between Counterparty and Sandoz,
the First Amendment thereto dated May 8, 2020, and any amendments or modifications to the foregoing.

 

“Protective
Order” means a stipulated order to protect confidential information prepared by the parties to the Litigation and ordered
by the Court.

 

“RareGen”
shall have the meaning assigned to such term in the introduction to this Agreement.

 

“Recipient”
means the Party to this Agreement receiving Confidential Information from the Disclosing Party.

 

“Records”
shall have the meaning assigned to such term in the UCC.

 

“Sandoz”
means Sandoz Inc.

 

“Secured Obligations”
means, collectively: (a) the prompt payment by RareGen, as and when due, of the Holdings’ Share to Holdings and the due performance
by RareGen of all of its obligations in respect of the Transaction Documents, (b) all other debts, liabilities, obligations, covenants
and duties of RareGen owing to Holdings now or hereafter existing, whether direct or indirect, absolute or contingent or due or
to become due, arising under or in connection with the Transaction Documents or any of the transactions contemplated thereby and
including any interest due thereon and all fees, costs and expenses incurred by Holdings in connection therewith; (c) all debts,
liabilities, obligations, covenants and duties of RareGen to pay or reimburse Holdings for all expenses, including attorneys’
fees, incurred by Holdings in connection with the enforcement, attempted enforcement or preservation of any rights or remedies
under the Transaction Documents, including all such costs and expenses incurred during any legal proceeding, including any proceeding
under any applicable bankruptcy, insolvency or other similar debtor relief laws; and (d) all interest and fees on any of the foregoing,
whether accruing prior to or after the commencement by or against RareGen of any proceeding under any applicable bankruptcy, insolvency
or other similar debtor relief laws naming RareGen as the debtor in such proceeding, regardless of whether such interest and fees
are allowed claims in such proceeding.

 

“Senior Funder”
means Henderson SPV, LLC, a Delaware limited liability company.

 

“Senior Funder
Agreement” means that certain Financing Agreement, dated June 4, 2020, by and between RareGen and Senior Funder.

 

    	 	4	 

     

    

 

“Settlement”
means any compromise, discontinuance, waiver, payment, release or other form of settlement whatsoever where value passes from or
on behalf of one or more Defendants to or for the benefit of RareGen or any of RareGen’s Affiliates in circumstances in which
any of the Litigation does not commence or continue as a result of or in connection with the passing of that value; and “Settle”,
 “Settles” and “Settled” have corresponding meanings.

 

“Smiths”
means Smiths Medical ASD, Inc.

 

“Taxes”
means any and all applicable taxes, duties, charges or levies of any nature imposed by any taxing or other Governmental Authority,
including income, gains, capital gains, surtax, capital, franchise, capital stock, value-added taxes, taxes required to be deducted
from payments made by the payor and accounted for to any tax authority, employees’ income withholding, back-up withholding,
withholding on payments to foreign Persons, social security, national insurance, unemployment, worker’s compensation, payroll,
disability, real property, personal property, sales, use, goods and services or other commodity taxes, business, occupancy, excise,
customs and import duties, transfer, stamp and other taxes (including interest, penalties or additions to tax in respect of the
foregoing), and includes all taxes payable pursuant to any provision of state, local or foreign law.

 

“Total Deployments”
shall have the meaning assigned to such term in Section 2.1.

 

“Transaction
Documents” means, collectively, this Agreement and any other agreement, document or instrument contemplated hereby or
delivered in connection herewith or therewith, including any instruction letter with Counsel, but for purposes of clarity, excluding
the Agreement and Plan of Merger, by and among the Liquidia Corporation, a Delaware corporation, Liquidia Technologies, Inc., a
Delaware corporation, RareGen, Gemini Merger Sub I, Inc., a Delaware corporation, Gemini Merger Sub II, LLC, a Delaware limited
liability company, and Holdings (the “Merger Agreement”), and any other agreement, document or instrument (other
than this Agreement) delivered in connection with the Merger Agreement.

 

“UCC”
means the Uniform Commercial Code as in effect on the date hereof in the State of Delaware or, in relation to the perfection or
priority of a security interest, the Uniform Commercial Code that then governs under the choice of law rules applicable to questions
of perfection or priority.

 

“United Therapeutics”
means United Therapeutics Corporation.

 

ARTICLE II

TERMS OF FINANCING

 

2.1          
Deployments. Subject to the terms and conditions of this Agreement (including Section 2.2), Holdings commits
to make payments to RareGen or on RareGen’s behalf (each payment, a “Deployment”, and the total of such
payments, the “Total Deployments”), at any time and from time to time from the date of this Agreement, to be
used by RareGen exclusively for the payment of Counsel Fees and Litigation Expenses. In consideration of the foregoing, the Parties
hereby agree that Holdings is entitled to Holdings’ Share, free and clear of any Encumbrance.

 

2.2          
Funding by Senior Funder. The Parties acknowledge and agree that RareGen shall first seek to have its Counsel Fees
and Litigation Expenses funded by Senior Funder pursuant to the Senior Funder Agreement. Holdings’ obligation to pay Counsel
Fees and Litigation Expenses pursuant to Section 2.1 shall be applicable only if (i) Senior Funder has no obligation to fund such
Counsel Fees or Litigation Expenses pursuant to the Senior Funder Agreement, (ii) Senior Funder otherwise fails to fund such amounts
within thirty (30) days of the date on which Senior Funder is required to fund such amounts in accordance with the Senior Funder
Agreement, (iii) the Senior Funder Agreement is terminated or otherwise rendered non-operable by failure of either party thereto
or by operation of law, or (iv) the Senior Funder’s obligations under the Senior Funding Agreement are exhausted or otherwise
extinguished.

 

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2.3          
Deployment Procedure. No more than once per calendar month, RareGen may submit a written request (a “Deployment
Request”) to Holdings for each desired Deployment. Holdings shall disburse such Deployment to RareGen or the ultimate
payee on RareGen’s behalf; provided that:

 

(a)               
RareGen provides documentation evidencing either (i) that Senior Funder is not obligated to fund such amounts pursuant to
the Senior Funder Agreement or (ii) RareGen’s commercially reasonable attempt to have such amounts funded by Senior Funder
in accordance with the terms of the Senior Funder Agreement and Senior Funder’s failure or refusal to do so.

 

(b)               
RareGen provides an invoice detailing the out-of-pocket costs and fees incurred by RareGen and not funded by Senior Funder
pursuant to the Senior Funder Agreement in accordance with the uses permitted under Section 2.1, which invoice will be in
form and substance reasonably acceptable to Holdings and which costs and fees were not paid by a previous Deployment, along with
invoices or other documentation reasonably acceptable to Holdings to substantiate said costs and fees; and

 

(c)               
No breach or default by RareGen exists, and remains uncured, under any of the Transaction Documents as of the date of such
request or the funding of the related Deployment (it being understood that if a request is made at the time that a breach or default
by RareGen exists, RareGen may re-make the request at such time as such breach or default has been cured).

 

Subject to the terms
of this Agreement, within fifteen (15) Business Days of Holdings’ receipt of the Deployment Request, Holdings shall disburse
the Deployment in immediately available funds to or on behalf of RareGen as directed by RareGen in the Deployment Request.

 

ARTICLE III

DISTRIBUTION OF LITIGATION PROCEEDS

 

3.1          
Priority of Payment. RareGen will immediately notify Holdings of its receipt of any Litigation Proceeds (whether
by Counsel or Sandoz for RareGen’s account or otherwise). Within fifteen (15) days of RareGen (or Counsel) receiving any
Litigation Proceeds, RareGen will (i) pay (or cause to be paid) to Senior Funder that portion of the Litigation Proceeds to which
Senior Funder is entitled pursuant to the Senior Funder Agreement, and (ii) pay (or cause to be paid) any remaining Litigation
Proceeds to Holdings as the Holdings’ Share (or a portion thereof) in immediately available funds in accordance with wire
instructions to be provided to RareGen by Holdings. All Litigation Proceeds payable to Holdings will first be applied to the repayment
of the Total Deployments, and thereafter to the remainder of the Holdings’ Share.

 

3.2          
Lockbox Account. In the event that RareGen is required under the Senior Funder Agreement to pay any Litigation Proceeds
into a lockbox account, escrow account or other similar restricted account, then Holdings agrees that no portion of such Litigation
Proceeds shall become payable to Holdings pursuant to this Agreement unless and until such funds are released to RareGen from such
lockbox account, escrow account or other restricted account pursuant to the Senior Funder Agreement.

 

3.3          
Maturity Date. Subject to Section 3.4, Holdings’ Share, to the extent not previously paid in accordance
with Section 3.1 or Section 3.2, shall become due and payable, and RareGen shall pay Holdings’ Share in cash
to Holdings, on December 31, 2023 (the “Maturity Date”); provided that if, as of such date, any of the
requirements set forth in (a) through (c) below have not been satisfied, then the Maturity Date shall be extended automatically
for consecutive one (1) calendar year periods thereafter until the first such date to occur following the satisfaction of all requirements
set forth in (a) through (c) below.

 

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(a)               
Final Resolution has occurred.

 

(b)               
Each of RareGen and Holdings has complied with all of its obligations pursuant to this Agreement.

 

(c)               
All Litigation Proceeds (if any) have been disbursed in accordance with this Agreement.

 

3.4           
Non-Recourse. If there are no Litigation Proceeds (after deducting any amounts payable to the Senior Funder pursuant
to the Senior Funder Agreement), then no amount shall be payable to Holdings under Section 3.1, Section 3.2 or Section
3.3, and if there are Litigation Proceeds but they are less (after deducting any amounts payable to the Senior Funder pursuant
to the Senior Funder Agreement) than the amount necessary to pay Holdings the entirety of Holdings’ Share, RareGen shall
not be obligated to pay the difference to Holdings.

 

3.5          
Tax Matters.

 

(a)               
RareGen and its successors are liable for and shall pay any and all Taxes (other than Taxes imposed upon Holdings as a consequence
of Holdings’ income) imposed in connection with, or as a result of, the Litigation Proceeds or as a consequence of any Settlement
or Business Deal. If, however, (i) the aggregate taxable income of or on account of RareGen or its successors from the receipt
of, or entitlement to, the Litigation Proceeds, exceeds (ii) the aggregate income tax deductions available to or on account of
RareGen or its successors, whether in the same tax year in which any such Litigation Proceeds are accrued or received or in any
other tax year, in connection with its payment of expenses associated with the conduct of the Litigation and for the requirement
to pay, or payment of, the Litigation Proceeds to Senior Funder and Holdings (such excess being referred to herein as the “Mismatch
Amount”), then any Litigation Proceeds otherwise payable to Holdings hereunder shall be reduced by an amount sufficient
for the payment or offset of any income taxes payable or the reduction of any deferred tax asset resulting from such Mismatch Amount.
For purposes of the preceding sentence, the amount of the reduction of any deferred tax asset shall be measured in accordance with
generally accepted accounting principles.

 

(b)               
Other than as provided for in Section 3.5(a), no Tax payment, liability or obligation of RareGen shall operate to reduce
any amount payable to Holdings under this Agreement. If any such reduction or withholding is required by law, RareGen shall (i)
promptly notify Holdings upon becoming aware of the required deduction or withholding; (ii) pay to the relevant authorities (within
the time allowed) the full amount required to be deducted or withheld (including the full amount required to be deducted or withheld
from any additional amount paid by RareGen to Holdings under this clause); (iii) promptly provide Holdings an official receipt
(or a certified copy or such other evidence reasonably acceptable to Holdings) evidencing the relevant withholding and payment
to such authorities; and (iv) pay to Holdings such amounts remaining after making any such withholdings or deductions.

 

(c)               
This Agreement shall not, in whole or in part, be deemed to create or imply a partnership for federal or state or local
income tax purposes, and neither Holdings nor RareGen will take any action or make any election to treat their relationship as
a partnership for income tax purposes.

 

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3.6          
Interest On Overdue Amounts. If RareGen fails to pay (or cause to be paid) any amounts due or owed to Holdings on
the date when due, including any failure to instruct Counsel to disburse any amount to Holdings in accordance with the terms of
this Agreement, RareGen shall thereafter pay to Holdings interest on such amount for the period from and including the date due,
to but excluding the date on which such amount is paid in full, at a rate per annum (computed on the basis of the actual days elapsed)
equal to the Default Rate.

 

ARTICLE IV

SETTLEMENT

 

4.1          
Right to Settle. Subject to the provisions of this Article IV, (i) RareGen shall Settle any Claim or Claims
or all or any portion of the Litigation with one or more Defendants at such times and upon such terms as Holdings may direct, in
Holdings’ sole but reasonable discretion; provided, however, that RareGen shall not be required to enter into any such Settlement
if the terms thereof would lead to liability or the creation of a financial or other obligation or restriction on the part of RareGen,
Liquidia Corporation or Liquidia Technologies, Inc. (other than a covenant not to sue or other similar obligation customarily included
in a settlement agreement and related to the subject matter of the Litigation), and (ii) RareGen shall not Settle any Claim or
Claims or all or any portion of the Litigation without the prior written consent of Holdings. In connection with any such Settlement,
RareGen will sign such releases and waivers as may be customary in a settlement of claims.

 

4.2          
Communication of Settlement Offers. Subject to and pursuant to any applicable Protective Order and subject to the
provisions of this Article IV, each of RareGen and Holdings shall promptly upon and after its receipt or knowledge of any
Settlement offer, demand or proposal (but in no event later than two Business Days after its receipt or knowledge thereof), communicate
to the other party all such Settlement offers, demands and proposals, and the substance of all Settlement discussions and provide
copies of any related documents. If a Settlement offer, demand or proposal is not made or received in writing, the party receiving
such Settlement offer, demand or proposal shall promptly upon and after its receipt or knowledge thereof (but in no event later
than two Business Days after its receipt or knowledge of the offer, demand or proposal) provide the other party with a verbal summary
of all provisions of the Settlement offer, demand or proposal.

 

4.3          
Settlement Agreement. Subject to and pursuant to any applicable Protective Order and subject to the provisions of
this Article IV, each of RareGen and Holdings shall provide to the other true, correct and complete copies of all fully
executed Settlement documents, any amendments or modifications thereto, and subsequent documents relating to the collection or
payment of the Litigation Proceeds.

 

ARTICLE V

LITIGATION MANAGEMENT

 

5.1           Control of the Litigation. As between them, RareGen agrees that Holdings shall have the sole and exclusive right
to control, act or refrain from acting in respect of any act, request or decision in connection with the Litigation; provided that
(i) Holdings shall consult with RareGen as it relates to, and keep RareGen informed of, any and all aspects of the Litigation and
consider the input of RareGen with respect to any decisions Holdings makes regarding the Litigation, and (ii) none of the foregoing
shall require Holdings to continue the Litigation to the extent Holdings reasonably determines that the Litigation no longer has
merit. In furtherance thereof, RareGen shall (and shall instruct Counsel to) (A) communicate directly with Holdings with respect
to the Litigation and provide Holdings with (i) written or email notice upon the occurrence of any material events in the Litigation,
and (ii) a status update by conference call at other times upon Holdings’ reasonable request, and (B) take such actions (or
refrain from taking such actions) with respect to the Litigation as may be directed by Holdings, in its reasonable good faith determination,
from time to time. RareGen shall cooperate with Holdings in all reasonable respects in connection with the conduct of the Litigation
and pursuit of the Claims, including making available records relating to the Litigation or that must be produced in the Litigation
and furnishing to Holdings, employees of RareGen and its Affiliates as may be reasonably necessary for the conduct of the Litigation
and to pursue the Claims; provided, however, that Holdings shall reimburse RareGen for any and all actual and reasonable costs
and out-of-pocket expenses (in each case, without any mark-up) associated with the furnishing of services by employees and consultants
of RareGen and its Affiliates at the request of Holdings or as reasonably required by law, regulation, rule or to satisfy a requirement
of the court or the Litigation. For purposes of the preceding sentence, (i) Holdings shall not be required to reimburse RareGen
for any time spent by employees or consultants of RareGen or its Affiliates in monitoring the Litigation, and (ii) for time spent
by employees of RareGen and its Affiliates that will be reimbursed by Holdings, time will be billed in quarter hour increments
at a rate equal to the applicable employee’s annual base salary plus benefits divided by 2,000 (or, with respect to a part-time
employee, the number of hours such employee is scheduled to work on an annual basis).

 

    	 	8	 

     

    

 

5.2           Counsel.

 

(a)               
RareGen shall continue to retain Current Counsel, and shall not retain New Counsel, with respect to the Litigation unless
otherwise directed by Holdings. In the event Holdings desires to retain New Counsel, Holdings agrees to notify RareGen in writing
of such proposed New Counsel and to consult with RareGen prior to retaining such New Counsel, including with respect to the economic
terms of engagement and any engagement agreement or letter to be entered into. Upon entering into any such engagement at Holdings’
direction, RareGen shall provide Holdings with a copy of the engagement agreement or letter entered into with such New Counsel.
RareGen and Holdings agree that RareGen does not waive any current or future conflicts of interest with Current Counsel or New
Counsel who may be retained and Holdings agrees that any such conflict of interest will be grounds for the immediate termination
of counsel unless RareGen expressly waives any such conflict in writing, which waiver shall be granted unless such conflict relates
to the same or a substantially related matter to those at issue in the Litigation.

 

(b)               
At the request of Holdings, RareGen shall agree that its Counsel shall jointly represent RareGen and Holdings and agree
to allow its Counsel to communicate directly with Holdings regarding the Litigation and take direction in the conduct of the Litigation
directly from Holdings; provided, however, that, in such event, Holdings shall (and shall instruct Counsel to) communicate with
RareGen and provide (or instruct Counsel to provide) RareGen with such information as RareGen would be obligated to provide to
Holdings pursuant to this Article V and Article VI in the absence of such joint representation. In connection with any joint representation
of RareGen and Holdings by Counsel, RareGen (and, if applicable, its Affiliates) shall execute such conflict waivers and joint
prosecution agreements as may be reasonably requested by Holdings or such Counsel. For clarity, RareGen counsel shall remain involved
in the Litigation with insight and review into all matters in the Litigation and the right to request changes to aspects of the
Litigation that might interfere with RareGen’s business outside the scope of the Litigation, which requests shall be considered
in good faith by Holdings.

 

5.3          
Engagement Agreements. Neither RareGen nor Holdings shall enter into any new Engagement Agreements or amend, modify
or waive any provision in any Engagement Agreements without the other party’s prior written consent; provided, however, that
RareGen’s consent to any such new Engagement Agreement or amendment, modification or waiver shall not be unreasonably withheld.

 

5.4          
Promotion Agreement. RareGen shall not terminate, amend, modify or waive any provision in the Promotion Agreement
that could reasonably be expected to affect the Litigation or the division or collection of any Litigation Proceeds without Holdings’
prior written consent.

 

5.5         
Senior Funder Agreement. RareGen shall not terminate, amend, modify or waive any provision in the Senior Funder Agreement
without Holdings’ prior written consent. RareGen shall comply in all material respects with respect to its obligations under
the Senior Funder Agreement.

 

    	 	9	 

     

    

 

5.6          
Conduct of the Litigation. RareGen shall use commercially reasonable efforts to, at the Senior Funder’s and
Holdings’ sole expense (as set forth in Article II), (a) diligently pursue the Claims and the Litigation as directed by Holdings;
(b) collect all Litigation Proceeds awarded or agreed upon as soon as practicable, including pursuing the enforcement of any final,
non-appealable judgment or award as soon as possible as directed by Holdings; (c) enforce all of RareGen’s rights in connection
with the Promotion Agreement and the Senior Funder Agreement, and promptly enter any judgment obtained in connection therewith
in all appropriate jurisdictions as directed by Holdings; and (d) take all actions necessary in connection with the foregoing.

 

ARTICLE VI

LITIGATION INFORMATION; CONFIDENTIALITY

 

6.1          
Communication of Litigation Information.

 

(a)               
Information. Subject to Section 6.1(b) and any applicable Protective Order, during the Litigation, RareGen
shall (and shall instruct Counsel to) forward to Holdings copies of all briefs, motions and final orders related to the Litigation
within two Business Days of RareGen’s receipt or submission thereof. Copies of all briefs, motions and final orders forwarded
to Holdings shall be subject to the restrictions placed on such materials by any and all applicable Protective Orders that may
be in place in the Litigation at the time of the forwarding thereof.

 

(b)               
Privileged Information. RareGen and Holdings acknowledge and agree that, as a result of their discussions leading
up to, and the execution and performance of, the Transaction Documents, they have shared and continue to share a common interest
privilege in information subject to the attorney work-product doctrine and documents relevant to the Litigation, which information
and documents shall be deemed to be Confidential Information. Notwithstanding anything to the contrary contained herein, (i) RareGen
has not and will not deliver any attorney-client privileged information to Holdings, (ii) RareGen has not and will not waive attorney-client
privilege, and (iii) RareGen’s delivery obligations under this Article VI and the other applicable provisions of this
Agreement shall specifically exclude any information or document the delivery of which to Holdings, in the opinion of Counsel,
would waive the attorney-client privilege or result in a violation of a Protective Order.

 

6.2          
Confidentiality.

 

(a)               
Exclusive Ownership of Information by Disclosing Party. The Recipient agrees and acknowledges that all Confidential
Information provided to it is and shall remain at all times the exclusive property of and owned by the Disclosing Party, and that
the Recipient’s use or awareness of such Confidential Information shall create no rights, at law or in equity, in the Recipient
in or to such Confidential Information, or any aspect or embodiment thereof. The furnishing of any Confidential Information hereunder
shall not constitute (i) a grant, whether express or by implication, estoppel or otherwise, of any ownership interest in or license
of any patent, trademark, service mark, business and trade secret or other proprietary right to such Confidential Information,
or of any right to use such Confidential Information for any purpose other than as specified in this Agreement or (ii) a waiver
of any attorney-client privilege or work product protection or any other applicable or available similar privilege or protection.

 

(b)               
Non-Disclosure of Information. The Recipient shall not for any reason disclose, use, reveal, report, publish, transfer
or make available, directly or indirectly, to any Person other than its representatives and Affiliates, any Confidential Information
provided to it except (i) when necessary to further RareGen’s or Holdings’ legal interests in connection with the performance
of its obligations or rights under this Agreement or the enforcement of its rights under this Agreement, (ii) as permitted by the
Disclosing Party, or (iii) as required by law. Notwithstanding anything in this Section 6.2(b) to the contrary, Recipient
shall not disclose any information that Recipient knows to be subject to a Protective Order.

 

    	 	10	 

     

    

 

ARTICLE VII

TERMINATION OF AGREEMENT

 

7.1          
Termination. This Agreement commences on the date hereof and, except as provided in Section 7.2, shall terminate
at the time at which a Final Resolution has occurred, RareGen has complied with all of its obligations pursuant to this Agreement,
and all Litigation Proceeds (if any) have been disbursed in accordance with this Agreement. In addition, in the event (a) (i) Holdings
should breach or otherwise fail to satisfy any payment obligation set forth in this Agreement, provided such failure to pay is
not subject to a good faith dispute between Holdings and RareGen, (ii) such breach or failure to perform is not a result of RareGen’s
negligence or bad faith, and (iii) such breach or failure to perform shall not have been cured within thirty (30) days following
receipt by Holdings of written notice of such breach or failure from RareGen (except in the case of a breach or failure that is
not curable or Holdings has ceased to exercise commercially reasonable efforts to cure such breach or failure, in which event such
termination shall be effective upon notice of termination by RareGen), or (b) Holdings files any petition or action for relief
under any bankruptcy, reorganization, insolvency or moratorium law, or any involuntary petition is filed against Holdings (unless
such petition is dismissed or discharged within thirty (30) days) under any bankruptcy statute now or hereafter in effect, or a
custodian, receiver, trustee, assignee for the benefit of creditors is appointed to take possession, custody or control of any
property of Holdings, then, at any time (but in the case of subsection (a), only while such breach or failure remains uncured),
RareGen shall have the right, in its sole discretion and without the prior consent of Holdings, to enter into a Settlement, withdraw
from the Litigation or otherwise cause the Litigation to be dismissed.

 

7.2          
Consequences of Termination. The provisions of Sections 3.4, 6.2, and Articles I, VII,
VIII, X, XI and XII shall survive termination of this Agreement. Without limiting the foregoing, (a)
Holdings shall be entitled, in order to protect its own interest in relation to this Agreement, to keep copies of the Confidential
Information provided to it pursuant to this Agreement, subject to Holdings’ ongoing obligations pursuant to Section 6.2;
and (b) any rights or obligations accrued prior to the date of termination of this Agreement (including with respect to breaches
of this Agreement) shall survive termination.

 

7.3           Clawback. In the event any payment to Holdings made under this Agreement must be returned or disgorged by Holdings
as a result of a legal proceeding against RareGen or its Affiliates, including an insolvency proceeding or fraudulent conveyance
proceeding against RareGen or its Affiliates, the right of Holdings to such payment shall be reinstated to the maximum extent permitted
by law and Holdings shall have the right to recover such reinstated amount from Litigation Proceeds or, subject to the terms and
conditions of this Agreement, from RareGen.

 

ARTICLE VIII

INDEMNIFICATION

 

8.1          
Holdings Indemnity. Holdings shall indemnify, defend and hold RareGen (and RareGen’s Affiliates, officers,
managers, directors, partners, equityholders, employees, permitted assigns, participants, attorneys and agents) harmless from any
liability, claim, loss, judgment, damage, cost or expense, including all fees, costs and expenses of enforcement of the Transaction
Documents (including legal fees, costs and expenses) that are incurred in connection with (i) any claim of Defendants or any other
party against RareGen (or RareGen’s Affiliates, officers, managers, directors, partners, equityholders, employees, permitted
assigns, participants, attorneys and agents) in connection with or resulting in any way from the Claims or the Litigation, or (ii)
any breach by Holdings of any of the terms of this Agreement.

 

    	 	11	 

     

    

 

8.2          
RareGen Indemnity. RareGen shall indemnify, defend and hold Holdings (and Holdings’ officers, managers, directors,
partners, equityholders, employees, permitted assigns, participants, attorneys and agents) harmless from any liability, claim,
loss, judgment, damage, cost or expense, including all fees, costs and expenses of enforcement of the Transaction Documents (including
legal fees, costs and expenses) that are incurred in connection with any breach by RareGen of any of the terms of this Agreement.

 

ARTICLE IX

SECURITY AGREEMENT

 

9.1          
Grant of Security Interest. As security for the payment, performance and observance in full of all of the Secured
Obligations, RareGen hereby grants, assigns and pledges to Holdings, its successors, agents, designees and assigns, a continuing
security interest, in any and all right, title or interest of RareGen in or to any and all of the following assets, rights and
properties now owned or at any time hereafter acquired by RareGen or in which RareGen now has or at any time in the future may
acquire any right, title or interest (collectively, the “Collateral”):

 

(a)               
the Litigation Proceeds;

 

(b)               
the Claims;

 

(c)               
RareGen’s rights under the Promotion Agreement and the Senior Funder Agreement to receive Litigation Proceeds;

 

(d)               
a copy of RareGen’s books, Records, files, correspondence, evidentiary materials and records pertaining to the Claims;

 

(e)               
rights under any appeal bond or similar instrument posted by any of the Defendants in the Litigation; and

 

(f)                
to the extent not otherwise included, all Proceeds of any and all of the foregoing.

 

9.2          
Continuing Security Interest. RareGen acknowledges and agrees that the security interest of Holdings in the Collateral
constitutes continuing collateral security for all of the Secured Obligations and shall remain in full force and effect until RareGen
has performed all of its obligations under the Transaction Documents in full, including payment of the Secured Obligations.

 

9.3          
Financing Statements. RareGen hereby irrevocably authorizes Holdings at any time and from time to time to file in
any filing office in any jurisdiction that Holdings deems advisable (a) any UCC financing statement providing the name of RareGen
as debtor, Holdings or its designee as secured party and indicating the Collateral (or all assets of RareGen) as collateral covered
by the financing statement and (b) any other notice, filing or other document that Holdings deems necessary or advisable to perfect
or protect the security interest or to maintain its first priority.

 

9.4           Covenants. So long as any of the Secured Obligations shall remain unpaid or unsatisfied, RareGen shall:

 

(a)               
preserve and maintain its existence, rights, franchises and privileges in the jurisdiction of its organization, and will
qualify and remain qualified in good standing in each jurisdiction where failure to preserve and maintain such existence, rights,
franchises, privileges and qualification could reasonably be expected to have an adverse effect on the Litigation, RareGen’s
financial condition or the collection of any Litigation Proceeds;

 

    	 	12	 

     

    

 

(b)               
at its own cost and expense, take such action and execute, acknowledge and deliver such agreements, instruments or other
documents as Holdings may from time to time reasonably require in order (i) to perfect and protect or maintain the perfection of
the security interest in the Collateral and (ii) to enable Holdings to enforce its rights in respect of the Collateral in accordance
with the terms hereof;

 

(c)               
do all things reasonably necessary at the written request of Holdings so that Holdings will have a perfected security interest
in RareGen’s share of any judgment obtained in the Litigation, subordinated only to any security interest of Senior Funder
in the Collateral, and to establish Holdings’ priority in RareGen’s share of any judgment obtained in the Litigation
under applicable procedural law or court rules;

 

(d)               
at its own cost and expense, take any and all actions necessary to defend its title to the Collateral against all parties
and to defend the security interest of Holdings in the Collateral and the priority thereof against any Encumbrance or security
interest (other than any security interest of Senior Funder in the Collateral);

 

(e)               
not cease operations, liquidate or dissolve;

 

(f)                
not merge or consolidate with any other Person without notifying Holdings thereof within three (3) Business Days of the
closing of such merger or consolidation;

 

(g)               
not change its name unless RareGen shall have given Holdings at least thirty (30) days’ prior written notice of the
change;

 

(h)               
ensure that Holdings has a second priority right in and to the Litigation Proceeds, subordinated only to the interests of
Senior Funder in the Litigation Proceeds;

 

(i)                
not (i) assign or transfer any interest in the Collateral, (ii) make any sale lease or other disposition of any of the Collateral,
(iii) license any of the Collateral or (iv) grant or permit to exist any claims, Encumbrances or security interests (voluntary
or involuntary) in or on the Collateral other than as set forth in the Senior Funder Agreement;

 

(j)                
comply in all material respects with applicable laws and regulations and all Orders applicable to it where failure to comply
could reasonably be expected to have an adverse effect on the Litigation, RareGen’s financial condition or the collection
of any Litigation Proceeds; and

 

(k)               
pay and discharge as the same shall become due and payable, all of its obligations and liabilities (except any such amounts
that are disputed in good faith by RareGen), including (i) all Tax liabilities, assessments and governmental charges or levies
upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings reasonably diligently
conducted, (ii) all lawful claims that, if unpaid, would by law become an Encumbrance not permitted hereunder; and (iii) all debt,
as and when due and payable.

 

9.5          
Remedies and Applications of Proceeds.

 

(a)               
If RareGen fails to pay or perform any of the Secured Obligations when due to be paid or performed, the failure shall constitute
a default under this Agreement for the purposes of Part 6 of Article 9 of the UCC and Holdings shall have, in addition to all other
rights and remedies granted to it in this Agreement and the other Transaction Documents, all rights and remedies of a secured party
under the UCC and other applicable law.

 

    	 	13	 

     

    

 

(b)               
The cash proceeds actually received from the sale or other disposition or collection of Collateral may be applied to the
expenses of the sale or other disposition or collection, including to the reimbursement of legal fees and expenses of Holdings.
After such application, any cash proceeds resulting from the sale or other disposition or collection shall be paid to Holdings
until Holdings has received an amount equal to the Secured Obligations.

 

9.6          
Certain Waivers. RareGen waives, to the fullest extent permitted by applicable law:

 

(a)               
except for the exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, any duty of Holdings as to the preservation of any Collateral or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any Collateral;

 

(b)               
any right to require Holdings to marshal any of the Collateral or other collateral or security for any of the Secured Obligations;
and

 

(c)               
any right to require Holdings (i) to proceed against any party, (ii) to exhaust any other collateral or security for any
of the Secured Obligations, (iii) to pursue any remedy to the exclusion of any other remedy, or (iv) to make or give any presentments,
demands for performance, notices of nonperformance, protests, notices of protests or notices of dishonor in connection with any
of the Collateral.

 

9.7          
Attorney-in-Fact. RareGen hereby appoints Holdings as RareGen’s attorney-in-fact to do all things in RareGen’s
name and on RareGen’s behalf in connection with Holdings’ exercise of its rights and remedies under and in accordance
with the Transaction Documents, including making any court filings required pursuant to Section 9.4(c). If this Section
9.7, or the application thereof, is or becomes invalid or unenforceable with respect to any circumstance, the application of
this Section 9.7 to any other circumstance shall not be affected and shall remain valid and be enforceable to the full extent
permitted by applicable Law.

 

9.8          
Subordination to Senior Funder. The rights of Holdings hereunder and all of the Secured Obligations are hereby, and
shall continue to be, subject and subordinate in priority and payment to the rights of Senior Funder under the Senior Funder Agreement
and to all sums due or to become due to Senior Funder under the Senior Funder Agreement; provided that Holdings is not in any way
restricted from enforcing its rights under Articles IV, V and VI hereof. Holdings agrees that so long as any sum is owed to Senior
Funder pursuant to the Senior Funder Agreement, Holdings shall not receive or retain payments of from RareGen pursuant to this
Agreement. If Holdings shall receive any such payments pursuant to this Agreement or any cash distributions in respect of, or other
proceeds of, the Collateral in excess of what Holdings is entitled to pursuant to this Agreement (including this Section 9.8),
Holdings shall hold the same in trust, as trustee, for the benefit of Senior Funder and shall promptly deliver the same to or at
the direction of Senior Funder for the benefit of Senior Funder in precisely the form received (except for the endorsement or assignment
thereof by Holdings without recourse or warranty), it being understood that it is the intention of the parties that until Senior
Funder has been paid the amounts to which it is entitled pursuant to the Senior Funder Agreement in full, Senior Funder shall receive
all payments and cash distributions of Litigation Proceeds from RareGen and all proceeds relating to any realization upon, distribution
in respect of or interest in any of the Collateral as and to the extent set forth in the Senior Funder Agreement.

 

    	 	14	 

     

    

 

ARTICLE X

GOVERNING LAW; JURISDICTION AND VENUE; DISPUTES

 

10.1        
Governing Law. This Agreement and the transactions contemplated hereby shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to contracts entered into and fully to be performed in such state. Conflict of
laws rules that would require the application of the law of any other jurisdiction shall not apply.

 

10.2        
Arbitration of Disputes.

 

(a)               
All disputes, claims or causes of action between the Parties arising out of or relating to the Transaction Documents and
the transactions contemplated thereby shall be resolved in accordance with this Section 10.2.

 

(b)               
All disputes between the Parties shall be resolved solely and exclusively, to the fullest extent permitted by law, by final,
binding and confidential arbitration in Washington, D.C. The arbitration shall be administered by and in accordance with the then
existing Rules of Practice and Procedure of Judicial Arbitration & Mediation Services, Inc. (JAMS), or its successor entity.
Any awards or orders in such arbitrations may be entered and enforced as judgments in federal courts of competent jurisdiction.

 

(c)               
The appointed arbitrator shall apply the laws of the State of Delaware applicable to contracts entered into and fully to
be performed in such state for purposes of determining any dispute.

 

(d)               
By agreeing to these arbitration procedures, the Parties waive the right to resolve any such dispute through a trial by
jury or judge or by administrative proceeding. The arbitrator shall (i) have the authority to compel adequate discovery for the
resolution of the dispute and to award such relief as would otherwise be permitted by law; and (ii) issue a written arbitration
decision, including the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall
be authorized to determine if an issue is subject to this arbitration obligation and to award any and all remedies that either
Party would be entitled to seek in a court of law.

 

(e)               
The prevailing Party in such arbitration shall be entitled to receive reimbursement from the other Party of the prevailing
party’s reasonable legal fees, costs and disbursements in connection with such arbitration.

 

(f)                
The Parties shall have the right to seek specific performance or equitable relief in arbitration pursuant to this Section
10.2.

 

ARTICLE XI

NOTICES

 

11.1         
Method. All notices, reports, records or other communications that are required or permitted to be given to the Parties
under this Agreement shall be sufficient in all respects if given in writing and delivered in person, by electronic mail (if receipt
is confirmed, electronically or otherwise), by overnight courier, or by registered or certified mail, postage prepaid, return receipt
requested, to the receiving Party at the following address(es) for such Party or such other address(es) as such Party may have
given to the other Party pursuant to this Section 11.1:

 

	If to RareGen:	RareGen, LLC
	 	P.O. Box 110085
	 	Research Triangle Park, NC 27709
	 	Attn: Neal Fowler
	 	E-mail: Neal.Fowler@liquidia.com

 

	If to Holdings:	PBM RG Holdings, LLC
	 	200 Garrett Street, Suite S
	 	Charlottesville, VA 22902
	 	Attn: General Counsel
	 	E-mail: legal@pbmcap.com

 

    	 	15	 

     

    

 

11.2        
Receipt. Notice shall be deemed given on (a) the date such notice is personally delivered, (b) three days after the
mailing if sent by registered or certified mail, (c) one Business Day after the date of delivery to the overnight courier if sent
by overnight courier, or (d) the date such notice is transmitted by electronic mail, if such transmission is prior to 5:00 p.m.
Eastern time on a Business Day, or the next succeeding Business Day if such transmission is later.

 

ARTICLE XII

GENERAL

 

12.1        
Interpretation. Section headings in this Agreement are for convenience of reference only and shall not affect the
interpretation or construction of this Agreement. The Transaction Documents will be deemed to have been jointly drafted by the
Parties and no provision shall be interpreted or construed for or against either Party because such Party actually or purportedly
prepared or requested such provision, any other provision or the Transaction Documents as a whole. The singular includes the plural
in this Agreement and vice versa. All pronouns shall include the masculine, feminine or neuter thereof, wherever the context and
facts require such construction. Examples and words like “including” are deemed to mean “without limitation.”
All references in this Agreement to Articles and Sections are references to the relevant provisions of this Agreement.

 

12.2        
Merger Clause. This Agreement and the other agreements, documents or instruments contemplated hereby shall constitute
the entire agreement between the Parties, and shall supersede all prior agreements, understandings and negotiations between the
Parties with respect to the subject matter hereof.

 

12.3         
Assignment. This Agreement shall inure to the benefit of, and shall be binding upon, the Parties and their respective
successors, permitted assigns, and legal representatives. Neither this Agreement, nor any rights, interests, obligations and duties
arising hereunder, may be assigned or otherwise conveyed by RareGen or Holdings, directly or indirectly, without the express consent
in writing of the other Party.

 

12.4        
Third Party Beneficiaries. Except as provided in Article VIII, this Agreement is made solely and specifically
among and for the benefit of the Parties, and their respective successors and permitted assigns, and no other Person shall have
any rights, interests or claims hereunder or be entitled to any benefits under or on account of this Agreement as a third party
beneficiary or otherwise.

 

12.5        
Independent Parties. The Parties are independent contractors to one another with respect to the Transaction Documents
and neither Party shall be deemed to be an agent, employee or joint venturer of the other by virtue of the Transaction Documents.
Nothing in the Transaction Documents shall constitute RareGen and Holdings as partners or fiduciaries of one another. Neither Party
shall have any power, right or authority to bind the other to any obligation or liability, to assume or create any obligation or
liability or transact any business in the name or on behalf of the other, or make any promises or representations on behalf of
the other, except as expressly set forth herein.

 

12.6         
Costs, Expenses and Fees. Each party shall bear its own costs and expenses in connection with the transactions described
herein.

 

    	 	16	 

     

    

 

12.7        
Amendment; Waiver. This Agreement shall not be amended, and no term or provision of this Agreement may be waived,
except in writing signed by a duly authorized representative of each Party. No delay on the part of a Party in exercising any right,
power or remedy under this Agreement shall operate as a waiver thereof, and no single or partial exercise of any right, power or
remedy by a Party shall preclude any further exercise thereof.

 

12.8        
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same instrument. Signatures to this Agreement may be delivered by facsimile or other electronic
means and any copy so delivered shall be deemed to be an original.

 

12.9        
Severability. If any provision of this Agreement, or the application thereof to any Person or circumstances, is or
becomes invalid or unenforceable, the remaining provisions shall not be affected and each remaining provision shall remain valid
and be enforceable to the full extent permitted by applicable law.

 

12.10      
Further Assurances. Each party shall promptly execute all documents and do all things that the other Party from time
to time reasonably requires to effect, perfect or complete the provisions of this Agreement and any transaction contemplated hereby.

 

[Signature page follows]

  

    	 	17	 

     

    

 

IN WITNESS WHEREOF,
this Financing Agreement has been executed by the undersigned as of the date first set forth above.

  

	 	PBM RG HOLDINGS, LLC
	 	By: PBM Capital Group, LLC, its manager
	 	 	 
	 	 	 
	 	By:	/s/ Damian deGoa
	 	Name:	Damian deGoa
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	RAREGEN, LLC
	 	 	 
	 	 	 
	 	By:	/s/ Damian deGoa
	 	Name:	Damian deGoa
	 	Title: 	Chief Executive OfficerExhibit 10.2

 

INDEMNIFICATION
AGREEMENT

 

This
Indemnification Agreement (this “Agreement”) is made as of [________] [__], 202[_], by and between Liquidia
Corporation, a Delaware corporation (the “Corporation”), and [__________] (“Indemnitee”).
Capitalized terms used, but not otherwise defined herein, shall have the meanings set forth in Section 1.

 

RECITALS

 

A.            Highly
competent and qualified persons have become more reluctant to serve corporations as directors, officers or in other capacities
unless they are provided with adequate protection through insurance coverage or adequate indemnification against risks of claims
and actions against them arising out of their service to and activities on behalf of the corporation.

 

B.            The
board of directors of the Corporation (the “Board”) has determined that, in order to attract and retain competent
and qualified individuals, the Corporation will seek to maintain on an ongoing basis, at its sole expense, directors’ and
officers’ liability insurance to protect persons serving the Corporation and its subsidiaries from certain liabilities.
However, as a result of changes in the marketplace for insurance it has become increasingly difficult to obtain directors’
and officers’ liability insurance on terms providing reasonable protection at reasonable cost. The uncertainties relating
to directors’ and officers’ liability insurance have increased the difficulty of attracting and retaining such persons.

 

C.            The
Board has determined that the potential inability to attract and retain highly competent and qualified persons to serve the Corporation
would be detrimental to the best interests of the Corporation and its stockholders and that the Corporation should act to assure
such persons that there will be increased certainty of adequate protection against risks of claims and actions against them arising
out of their service to and activities on behalf of the Corporation in the future.

 

D.            The
Board has determined that it is reasonable, prudent and necessary for the Corporation to contractually obligate itself to indemnify,
and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or
continue to serve the Corporation free from undue concern that they will not be so indemnified.

 

E.            Indemnitee
has agreed to serve the Corporation in an officer and/or director capacity provided that Indemnitee is provided the protections
available under this Agreement, the Corporation’s Amended and Restated Certificate of Incorporation (as amended, modified,
supplemented, restated or amended and restated from time to time, the “Certificate of Incorporation”), the
Corporation’s Amended and Restated Bylaws (as amended and/or restated from time to time, the “Bylaws”)
and directors’ and officers’ liability insurance coverage that is adequate in the present circumstances.

 

F.            This
Agreement is a supplement to and in furtherance of any protections provided by the Certificate of Incorporation, the Bylaws and
any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights
of Indemnitee thereunder. In addition, Indemnitee will be entitled to indemnification pursuant to the Delaware General Corporation
Law.

 

NOW
THEREFORE, in consideration of the foregoing and the covenants, promises and representations set forth herein, and for other good
and valuable consideration, including Indemnitee’s agreement to serve as a director and/or officer of the Corporation after
the date hereof, and intending to be legally bound hereby, the parties hereto agree as follows:

 

    	 	1	 

     

    

 

1.            Certain
Definitions for Purposes of this Agreement. The following terms as used in this Agreement shall have the meanings set forth
below.

  

(a)            “Change
in Control” means:

 

(i)            merger,
consolidation or reorganization approved by the Corporation’s stockholders, unless securities representing more than 50
percent of the total and combined voting power of the outstanding voting securities of the successor corporation are immediately
thereafter beneficially owned, directly or indirectly, by the persons who beneficially owned the Corporation’s outstanding
voting securities immediately prior to such transaction;

 

(ii)            The
sale, transfer or other disposition of all or substantially all of the Corporation’s assets as an entirety or substantially
as an entirety, occurring within a 12-month period, and representing, at a minimum, not less than 50 percent of the total gross
fair market value of all assets of the Corporation, to any person, entity, or group of persons acting in consort, other than a
sale, transfer or disposition to: (A) a stockholder of the Corporation in exchange for or with respect to its stock; (B) an
entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Corporation; (C) a
person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or
voting power of the outstanding stock of the Corporation; or (D) an entity, at least 50 percent of the total value or voting
power of which is owned by a person described in (C); or

 

(iii)            Any
transaction or series of related transactions pursuant to which any person or any group of persons comprising a “group”
within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (other than the Corporation
or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled
by or is under common control with, the Corporation) becomes directly or indirectly the beneficial owner (within the meaning of
Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of securities possessing (or convertible into or exercisable
for securities possessing) more than 50 percent of the total combined voting power of the Corporation’s securities outstanding
immediately after the consummation of such transaction or series of related transactions, whether such transaction involves a
direct issuance from the Corporation or the acquisition of outstanding securities held by one or more of the Corporation’s
stockholders; or

 

(iv)            A
change in the composition of the Board over a period of 12 consecutive months or less such that a majority of the Board members
ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals whose election is endorsed
by a majority of the members of the Board immediately before the date of election.

 

A
transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Corporation’s incorporation
or to create a holding company that will be owned in the same proportions by the persons who held the Corporation’s securities
immediately before such transaction.

 

(b)            “Corporation”
includes any domestic or foreign predecessor entity of the Corporation in a merger or other transaction in which the predecessor’s
existence ceased on consummation of the transaction.

 

(c)            “Director”
means an individual who is or was a director of the Corporation or an individual who, while a director of the Corporation, is
or was serving at the Corporation’s request as a director, officer, partner, trustee, employee, or agent of another foreign
or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan, or other entity.
A Director is considered to be serving an employee benefit plan at the Corporation’s request if that Director’s duties
to the Corporation also impose duties on, or otherwise involve services by, him or her to the plan or to participants in or beneficiaries
of the plan.

 

    	 	2	 

     

    

 

(d)            “Disinterested
Director” or “Disinterested Officer” means a Director or Officer, respectively, who at the time of a vote or
selection referred to in Section 4(b) or 5(c) is not a party to the Proceeding.

 

(e)            “Enterprise”
means (i) the Corporation, (ii) any other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise that is an affiliate or wholly or partially owned subsidiary of the Corporation and of which Indemnitee is or was serving
as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary, and (iii) any other corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is
or was serving at the express written request of the Corporation as a director, trustee, general partner, managing member, officer,
employee, agent or fiduciary.

 

(f)            “Expenses”
includes all reasonable counsel fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include Expenses incurred
in connection with any appeal resulting from any Proceeding, including the premium, security for, and other costs relating to
any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g)            “Independent
Legal Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither
presently is, nor in the past five years has been, retained to represent: (i) the Corporation, (ii) Indemnitee, (iii) any
affiliate of the Corporation or Indemnitee, (iv) any member of Indemnitee’s immediate family, (v) any company
of which Indemnitee is an executive officer, in each case in any matter material to such party, or (vi) any other party to
the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent
Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Corporation or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

 

(h)            “Liability”
includes the obligation to pay a judgment, settlement, penalty, fine (including an excise tax assessed with respect to an employee
benefit plan), or reasonable Expenses actually incurred with respect to a Proceeding.

 

(i)            “Officer”
means an individual who is or was an officer of the Corporation or an individual who, while an officer of the Corporation, is
or was serving at the Corporation’s request as a director, officer, partner, trustee, employee, or agent of another foreign
or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan, or other entity.
An Officer is considered to be serving an employee benefit plan at the Corporation’s request if that Officer’s duties
to the Corporation also impose duties on, or otherwise involve services by, him or her to the plan or to participants in or beneficiaries
of the plan.

 

(j)            “Proceeding”
includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation,
inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of
the Corporation or other Enterprise or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee
was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was an officer or director of
the Corporation, by reason of any action taken by Indemnitee or of any inaction on Indemnitee’s part while acting as an
officer or director of the Corporation, or by reason of the fact that Indemnitee is or was serving at the request of the Corporation
as a director, officer, employee, agent or fiduciary of another Enterprise; in each case whether or not Indemnitee is acting or
serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under
this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by Indemnitee pursuant
to this Agreement to enforce Indemnitee’s rights under this Agreement.

 

    	 	3	 

     

    

 

(k)            “Reviewing
Party” shall mean the person or persons making the entitlement determination pursuant to Section 5 of this Agreement,
and shall not include a court making any determination under this Agreement or otherwise.

 

2.            Basic
Indemnification Arrangement.

 

(a)            Obligation
to Indemnify; Standard of Conduct. Except as provided in Sections 2(e), 2(f), 2(g) or 7 below, the Corporation shall
indemnify Indemnitee and hold harmless Indemnitee, to the fullest extent authorized or permitted by applicable law, in the event
Indemnitee is made a party to a Proceeding because he or she is or was a Director or Officer, against Liability incurred in the
Proceeding if:

 

(1)            Indemnitee
conducted himself or herself in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best
interests of the Corporation; and

 

(2)            in
the case of any criminal Proceeding, Indemnitee had no reasonable cause to believe his or her conduct was unlawful.

 

(b)            Service
with Respect to Employee Benefit Plan. Indemnitee’s conduct with respect to an employee benefit plan for a purpose he
or she believed in good faith to be in the interests of the participants in and beneficiaries of the plan is conduct that satisfies
the requirement of Section 2(a)(1).

 

(c)            Reliance
as Safe Harbor. For purposes of any determination hereunder, Indemnitee shall be deemed to have acted in good faith and
in a manner reasonably believed to be in or not opposed to the best interests of the Corporation, or, with respect to any criminal
Proceeding, to have had no reasonable cause to believe Indemnitee’s conduct was unlawful, if Indemnitee’s conduct
was based primarily on: (i) the records or books of account of the Corporation or relevant entity, including financial statements,
(ii) information supplied to Indemnitee by the officers of the Corporation or relevant entity in the course of their duties,
(iii) the advice of legal counsel for the Corporation or relevant entity, or (iv) information or records given or reports
made to the Corporation or relevant entity by an independent certified public accountant, or by an appraiser or other expert selected
with reasonable care by the Corporation or relevant entity. The provisions of this Section 2(c) shall not be deemed
to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the relevant standard
of conduct set forth in this Agreement.

 

(d)            Termination
of Proceeding Not Determinative. The termination of a Proceeding by judgment, order, settlement, or conviction, or upon a
plea of nolo contendere or its equivalent shall not, of itself, create a presumption or be determinative that Indemnitee is not
entitled to indemnification or reimbursement of Expenses hereunder or otherwise.

 

(e)            Limits
on Indemnification. Unless, and then only to the extent that, a court of competent jurisdiction acting pursuant to Section 6
of this Agreement or the Delaware General Corporation Law, determines that, in view of the circumstances of the case, Indemnitee
is fairly and reasonably entitled to indemnification, the Corporation shall not indemnify Indemnitee under this Agreement:

 

    	 	4	 

     

    

 

(1)            in
connection with a Proceeding by or in the right of the Corporation, except for reasonable Expenses (including an excise tax assessed
with respect to an employee benefit plan) and amounts paid in settlement not exceeding, in the judgment of the Board, the estimated
expense of litigating the Proceeding to conclusion, actually and reasonably incurred in connection with the defense or settlement
of the Proceeding, including any appeal thereof; or

 

(2)            in
connection with a Proceeding by or in the right of the Corporation with respect to any claim, issue or matter as to which Indemnitee
shall have been adjudged liable to the Corporation.

 

(f)            Proceeding
Brought by Indemnitee. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification
or advancement of Expenses under this Agreement with respect to any Proceeding or claim brought or made by Indemnitee against
the Corporation or its Directors, Officers, employees or other indemnitees, other than (i) a Proceeding or claim seeking
or defending Indemnitee’s right to indemnification or advancement of Expenses pursuant to Section 6 of this Agreement
or otherwise, or (ii) a Proceeding authorized by the Board prior to its initiation.

 

(g)            Settlements.
The Corporation acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a
party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any Proceeding to which Indemnitee is
a party is resolved in any manner other than by adverse judgment against Indemnitee (including settlement of such Proceeding with
or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or
otherwise in such Proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion
by clear and convincing evidence.

 

(h)            Mandatory
Indemnification. The Corporation shall indemnify Indemnitee to the extent that he or she has been successful, on the merits
or otherwise, in the defense of any Proceeding to which Indemnitee was a party, or in defense of any claim, issue or matter, because
Indemnitee is or was a Director or Officer, against reasonable Expenses incurred by Indemnitee in connection with the Proceeding.

 

3.            Contribution.

 

(a)            Whether
or not the indemnification provided hereunder is available, in respect of any Proceeding in which the Corporation is jointly liable
with Indemnitee (or would be if joined in such Proceeding), the Corporation shall pay the entire amount of any Expenses, judgments,
penalties, fines or amounts paid or to be paid in settlement of such Proceeding without requiring Indemnitee to contribute to
such payment and the Corporation hereby waives and relinquishes any right of contribution it may have against Indemnitee. The
Corporation shall not enter into any settlement of any Proceeding in which the Corporation is jointly liable with Indemnitee (or
would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against
Indemnitee without any injunction or other equitable relief being imposed against Indemnitee.

 

(b)            Without
diminishing or impairing the obligations of the Corporation set forth in the preceding subparagraph, if, for any reason, Indemnitee
shall elect or be required to pay all or any portion of any judgment or settlement in any Proceeding in which the Corporation
is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Corporation shall contribute to the amount of
Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee
in proportion to the relative benefits received by the Corporation and all officers, directors or employees of the Corporation,
other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and
Indemnitee, on the other hand, from the transaction from which such Proceeding arose; provided, however, that the proportion determined
on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative
fault of the Corporation and all officers, directors or employees of the Corporation other than Indemnitee who are jointly liable
with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, in connection
with the events that resulted in such Expenses, judgments, penalties, fines or settlement amounts, as well as any other equitable
considerations which the Delaware General Corporation Law may require to be considered. The relative fault of the Corporation
and all officers, directors or employees of the Corporation, other than Indemnitee, who are jointly liable with Indemnitee (or
would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to,
among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree
to which their liability is primary or secondary and the degree to which their conduct is active or passive.

 

    	 	5	 

     

    

 

(c)            The
Corporation hereby agrees to indemnify and hold harmless Indemnitee from any claims of contribution which may be brought by officers,
directors or employees of the Corporation, other than Indemnitee, who may be jointly liable with Indemnitee.

 

4.            Advances
for Expenses.

 

(a)            Obligations
and Requirements. The Corporation shall advance, to the extent not prohibited by applicable law, the Expenses incurred by
or on behalf of Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty (30) days after
the receipt by the Corporation of any statement requesting such advances (which shall include invoices received by Indemnitee
in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work
performed or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included
with the invoice) from time to time, whether prior to or after final disposition of any Proceeding. Any such statement shall reasonably
evidence the Expenses incurred by Indemnitee. Advances shall be unsecured and interest free. Advances shall be made without regard
to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification
under the other provisions of this Agreement. Advances shall include any and all reasonable Expenses incurred pursuing an action
to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Corporation to support
the advances claimed. Indemnitee shall qualify for advances upon the execution and delivery to the Corporation of this Agreement,
subject to the condition that if and to the extent that it is ultimately determined by a court of competent jurisdiction in a
final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Corporation, Indemnitee shall
undertake to the fullest extent permitted by law to repay the advance. Such undertaking shall be an unlimited general obligation
of Indemnitee but need not be secured and shall be accepted without reference to Indemnitee’s financial ability to make
repayment. The right to advances under this Section 4 shall in all events continue until final disposition of any Proceeding,
including any appeal thereof.

 

(b)            Evaluation
of Reasonableness of Expenses. Evaluation as to reasonableness of Expenses of Indemnitee in the specific case shall be made
in the same manner as the determination that indemnification is permissible, as described in Section 5 below, except that
if the determination is made by Independent Legal Counsel, evaluation as to reasonableness of Expenses shall be made by those
entitled under Section 5(c)(3) to select Independent Legal Counsel. Notwithstanding the foregoing sentence, any Expenses
claimed by Indemnitee shall be deemed reasonable if the Reviewing Party fails to make the reasonableness evaluation within thirty
(30) days following the Corporation’s receipt of invoices for specific Expenses to be reimbursed or advanced.

 

    	 	6	 

     

    

 

5.            Authorization
of and Determination of Entitlement to Indemnification.

  

(a)            Entitlement
Determination. The Corporation and Indemnitee acknowledge that indemnification of Indemnitee under Section 2 of this
Agreement has been pre-authorized by the Corporation as permitted by the Delaware General Corporation Law. Nevertheless, the Corporation
shall not indemnify Indemnitee under Section 2 unless a separate determination has been made in the specific case that indemnification
of Indemnitee is permissible in the circumstances because Indemnitee has met the relevant standard of conduct set forth in Section 2(a);
provided, however, that: (i) no such entitlement decision need be made prior to the advancement of Expenses; and (ii) regardless
of the result or absence of any such determination, the Corporation shall make any indemnification mandated by Section 2(h) above.

 

(b)            To
obtain indemnification (including advancement of Expenses) under this Agreement, Indemnitee shall submit to the Corporation
a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee
and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of
the Corporation shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee
has requested indemnification.

 

(c)            Reviewing
Party. The determination referred to in Section 5(a) shall be made, at the election of the Board, by any of the
following Reviewing Parties (unless a Change in Control shall have occurred after Indemnitee first began serving as a Director
or Officer, in which case Indemnitee shall be entitled to designate that the determination shall be made by Independent Legal
Counsel selected in the manner set forth in Section 5(d) below):

 

(1)            by
the Board by a majority vote of a quorum consisting of Disinterested Directors; or

 

(2)            by
a majority vote of a committee duly designated by the Board (in which designation directors who do not qualify as Disinterested
Directors may participate) consisting solely of two or more Disinterested Directors; or

 

(3)            by
Independent Legal Counsel: (A) Selected in the manner prescribed in paragraph (1) or (2) of this Section 5(c);
or (B) if a quorum of Directors cannot be obtained for purposes of paragraph (1) and the committee cannot be designated
under paragraph (2), selected by a majority vote of the full Board (in which selected directors who do not qualify as Disinterested
Directors may participate); or

 

(4)            by
the stockholders of the Corporation, by a majority vote of a quorum consisting of stockholders who were not Parties to that Proceeding
or, if no such quorum is obtainable, by a majority vote of stockholders who were not Parties to that Proceeding.

 

    	 	7	 

     

    

 

(d)            Selection
of Counsel after Change in Control. If a Change in Control shall have occurred, Independent Legal Counsel shall be selected
by Indemnitee (unless Indemnitee requests that the selection be made in the manner described in Section 5(c)(3)), and Indemnitee
shall give written notice to the Corporation advising it of the identity of the Independent Legal Counsel so selected. In either
event, Indemnitee or the Corporation, as the case may be, may, within fifteen (15) days after the written notice of selection
has been given, deliver to the Corporation or to Indemnitee, as the case may be, a written objection to the selection; provided,
however, that the objection may be asserted only on the ground that the counsel so selected does not meet the requirements of
 “Independent Legal Counsel” as defined in Section 1 of this Agreement. The objection shall set forth with particularity
the factual basis of the assertion. If a written objection is made and substantiated, the counsel selected may not serve as Independent
Legal Counsel unless and until the objection is withdrawn or a court has determined that the objection is without merit. If, within
fifteen (15) days after submission by Indemnitee of a written request for indemnification, no Independent Legal Counsel shall
have been selected and not objected to, either the Corporation or Indemnitee may petition the court conducting the Proceeding,
or another court of competent jurisdiction, for resolution of any objection that shall have been made by the Corporation or Indemnitee
to the other’s selection of Independent Legal Counsel and/or for the appointment as Independent Legal Counsel of a person
selected by the court or by another person that the court shall designate, and the person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Legal Counsel under Section 5(c).

 

(e)            Cooperation
by Indemnitee. Indemnitee shall cooperate with the Reviewing Party with respect to its determination of Indemnitee’s
entitlement to indemnification, including providing to the Reviewing Party on reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to the determination. Any Expenses incurred by Indemnitee in so cooperating with the Reviewing Party shall
be borne by the Corporation, regardless of the determination as to Indemnitee’s entitlement to indemnification.

 

(f)            If
the Reviewing Party shall not have made a determination within sixty (60) days after receipt by the Corporation of the request
therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall
be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification,
or (ii) a prohibition of such indemnification under applicable law; provided, however, that (x) such 60-day period may
be extended for a reasonable time, not to exceed an additional thirty (30) days, if the Reviewing Party in good faith requires
such additional time to obtain or evaluate documentation and/or information relating thereto; and (y) that the foregoing
provisions of this Section 5(f) shall not apply if the determination of entitlement to indemnification is to be made
by the stockholders pursuant to Section 5(c)(4) and if (A) within fifteen (15) days after receipt by the Corporation
of the request for such determination, the Board or the Disinterested Directors, if appropriate, resolve to submit such determination
to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt
and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after
such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after
having been so called and such determination is made thereat.

 

(g)          Other.

 

(i)            In
making a determination with respect to entitlement to indemnification hereunder, the Reviewing Party shall presume that Indemnitee
is entitled to indemnification under this Agreement, and anyone seeking to overcome this presumption shall have the burden of
proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Corporation (including by its
directors or Independent Legal Counsel) to have made a determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor
an actual determination by the Corporation (including by its directors or Independent Legal Counsel) that Indemnitee has not met
such applicable standard of conduct, shall create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(ii)            The
Reviewing Party, however chosen, shall make the requested determination as promptly as reasonably practicable after a request
for indemnification is presented.

 

    	 	8	 

     

    

 

(iii)            Any
determination by Independent Legal Counsel under this Section 5 shall be delivered in the form of a written opinion to the
Board with a copy to Indemnitee.

 

(iv)            The
Corporation shall pay any and all reasonable fees and expenses of Independent Legal Counsel incurred by the counsel in connection
with acting pursuant to this Section 5, and the Corporation shall pay all reasonable fees and expenses incident to the procedures
of this Section 5, regardless of the manner in which such Independent Legal Counsel was selected or appointed.

 

(v)            On
the due commencement of any action to seek court-ordered indemnification pursuant to Section 6 of this Agreement, Independent
Legal Counsel shall be discharged and relieved of any further responsibility in that capacity, subject to the applicable standards
of professional conduct then prevailing.

 

6.            Court-Ordered
Indemnification and Advances for Expenses.

 

(a)            Procedure.
If Indemnitee is a party to a Proceeding, he or she may apply for indemnification or for advances for Expenses to the court conducting
the Proceeding or to another court of competent jurisdiction. For purposes of this Agreement, the Corporation consents to personal
jurisdiction and venue in any court in which is pending a Proceeding to which Indemnitee is a party. Regardless of any determination
by the Reviewing Party that Indemnitee is not entitled to indemnification or to advancement of Expenses or as to the reasonableness
of Expenses, and regardless of any failure by the Reviewing Party to make a determination as to the entitlement or the reasonableness
of Expenses, the court’s review shall be a de novo review. After receipt of an application and after giving any notice it
considers necessary, the court may:

 

(1)            order
indemnification or the advance for Expenses if it determines that Indemnitee is entitled to indemnification or to advance for
Expenses under this Agreement, the Delaware General Corporation Law or otherwise; or

 

(2)            order
indemnification or the advance for Expenses if it determines that, in view of all the relevant circumstances, it is fair and reasonable
to indemnify Indemnitee, or to advance Expenses to Indemnitee, regardless of whether Indemnitee has met the relevant standard
of conduct, complied with the requirements for advancement of Expenses, or been adjudged liable in a Proceeding referred to in
Section 2(e) above (in which case any court-ordered indemnification need not be limited to Expenses incurred by Indemnitee,
but may include penalties, fines, amounts paid in settlement, judgments and any other amounts ordered by the court to be indemnified
or advanced).

 

(b)            Payment
of Expenses to Seek Court-Ordered Indemnification. If the court determines that Indemnitee is entitled to indemnification
or to advance for Expenses, the Corporation shall pay Indemnitee’s reasonable Expenses to obtain the court-ordered indemnification
or advance for Expenses.

 

7.            Limitations
on Indemnification. Regardless of whether Indemnitee has met the relevant standard of conduct set forth in Section 2(a),
nothing in this Agreement shall require or permit indemnification of Indemnitee for any Liability or Expenses incurred in a Proceeding
in which a judgment or other final adjudication establishes that Indemnitee’s actions or omissions to act were material
to the cause of action so adjudicated and constitute:

 

(a)            a
violation of criminal law, unless Indemnitee had reasonable cause to believe his or her conduct was lawful or had no reasonable
cause to believe his or her conduct was unlawful;

 

(b)            a
transaction from which Indemnitee derived an improper personal benefit, including, without limitation, any benefits received through
the purchase and sale by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

 

    	 	9	 

     

    

 

(c)            willful
misconduct or a conscious disregard for the best interests of the Corporation in a Proceeding by or in the right of the Corporation
to procure a judgment in its favor or in a Proceeding by or in the right of a stockholder of the Corporation.

 

8.            Exclusive
Forum. The Corporation and Indemnitee acknowledge and agree that the sole and exclusive forum for any cause of action brought
by the Corporation or Indemnitee arising under this Agreement shall be the United States District Court for the District of Delaware,
if a basis for federal court jurisdiction is present, or otherwise, at the Delaware Court of Chancery, and the Corporation and
Indemnitee each hereby submit to the personal jurisdiction of such court(s).

 

9.            Vested
Rights; Specific Performance. No amendment to the Certificate of Incorporation or Bylaws of the Corporation or any other corporate
action shall in any way limit Indemnitee’s rights under this Agreement. In any Proceeding brought by or on behalf of Indemnitee
to specifically enforce the provisions of this Agreement, the Corporation waives the claim or defense in that Proceeding that
the plaintiff or claimant has an adequate remedy at law, and the Corporation shall not urge in any such Proceeding the claim or
defense that an adequate remedy at law exists. The provisions of this Section 9, however, shall not prevent Indemnitee from
seeking a remedy at law in connection with any breach of this Agreement.

 

10.            Liability
Insurance. To the extent the Corporation maintains an insurance policy or policies providing directors’ or officers’
liability insurance, Indemnitee shall be covered by that policy or those policies, in accordance with its or their terms,
to the maximum extent of the coverage provided under that policy or those policies in effect for any other Director or Officer
of the Corporation, as the case may be.

 

11.            Witness
Fees. Notwithstanding any other provision in this Agreement, to the extent that Indemnitee is made a witness in any Proceeding
to which Indemnitee is not a party, because he or she is or was a Director or Officer, the Corporation shall indemnify and hold
harmless Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith.

 

12.            Security
for Indemnification Obligations. The Corporation may at any time and in any manner, at the discretion of the Board, secure
the Corporation’s obligations to indemnify or advance Expenses to Indemnitee pursuant to this Agreement.

 

13.            Non-exclusivity,
No Duplication of Payments. The rights of Indemnitee under this Agreement shall be in addition to any other rights with respect
to indemnification, advancement of Expenses or otherwise that Indemnitee may have under the Certificate of Incorporation or Bylaws,
the Delaware General Corporation Law or otherwise; provided, however, that the Corporation shall not be liable under this Agreement
to make any payment to Indemnitee under this Agreement to the extent Indemnitee has otherwise actually received payment (under
any insurance policy, provision of the Certificate of Incorporation or Bylaws, or otherwise) of the amounts otherwise payable
under this Agreement. The Corporation’s obligation to indemnify or advance expenses under this Agreement to Indemnitee who
is or was serving at the request of the Corporation as a director, officer, partner, trustee, employee or agent of any other entity
shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from that other
entity.

 

    	 	10	 

     

    

 

14.            Amendments.
To the extent that the provisions of this Agreement are held to be inconsistent with the provisions of the Delaware General Corporation
Law, the provisions of that statute shall govern. To the extent that the Delaware General Corporation Law is later amended to
permit a Delaware corporation, without the need for stockholder approval, to provide to its directors greater rights to indemnification
or advancement of Expenses than those specifically set forth here, this Agreement shall be deemed amended to require the greater
indemnification or more liberal advancement of Expenses to Indemnitee, in each case consistent with the Delaware General Corporation
Law as so amended from time to time. Otherwise, no supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by the Corporation and Indemnitee.

  

15.            Subrogation.
In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of that payment to all of the
rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure
those rights, including the execution of documents necessary to enable the Corporation effectively to bring suit to enforce those
rights; provided, however, that any rights of recovery of Indemnitee pursuant to any liability insurance policy separately paid
for by Indemnitee shall not be subject to subrogation under this Section 15 except that any amounts recovered under such
policy shall be subject to Section 13 hereof.

 

16.            Waiver.
No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this
Agreement (whether or not similar) nor shall such a waiver constitute a continuing waiver.

 

17.            Binding
Effect, Etc. This Agreement shall be binding on and inure to the benefit of and be enforceable by the parties to this Agreement
and their respective successors or assigns (including any direct or indirect successor or assign by purchase, merger, consolidation
or otherwise to all or substantially all of the business and/or assets of the Corporation), spouses, heirs, and personal and legal
representatives.

 

18.            Applicability
of Agreement. This Agreement shall apply retroactively with respect to acts or omissions of Indemnitee occurring since the
date that Indemnitee first became a Director or Officer, and this Agreement shall continue in effect regardless of whether Indemnitee
continues to serve as a Director or Officer, but only in respect of acts or omissions occurring prior to the termination of Indemnitee’s
service as a Director or Officer.

 

19.            Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable for any reason whatsoever:

 

(a)            the
validity, legality, and enforceability of the remaining provisions of this Agreement (including without limitation, each portion
of any Section of this Agreement containing any such provision held to be invalid, illegal, or unenforceable, that is not
itself invalid, illegal, or unenforceable) shall not in any way be affected or impaired by it;

 

(b)            the
provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum
effect to the intent of the parties to this Agreement; and

 

(c)            to
the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of
this Agreement containing any provision held to be invalid, illegal, or unenforceable, that is not itself invalid, illegal, or
unenforceable) shall be construed so as to give effect to the intent manifested by it.

 

20.            Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable
to contracts made and to be performed in Delaware without giving effect to the principles of conflicts of laws.

 

    	 	11	 

     

    

 

21.            Headings.
The headings of the Sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction of this Agreement.

 

22.            Inducement.
The Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it
under this Agreement in order to induce Indemnitee to serve or continue to serve as a Director and/or Officer, and the Corporation
acknowledges that Indemnitee is relying on this Agreement in serving as a director, officer, employee or agent of the Corporation
or, at the request of the Corporation, as a director, officer, partner, trustee, employee, or agent of another foreign or domestic
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other entity.

 

23.            Notice
by Indemnitee. Indemnitee agrees promptly to notify the Corporation in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information, or other document relating to any Proceeding or matter which may be subject to indemnification
or advancement of Expenses covered under this Agreement. The failure of Indemnitee so to notify the Corporation shall not relieve
the Corporation of any obligation that it may have to Indemnitee under this Agreement or otherwise.

 

24.            Notices.
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have
been duly given if: (i) delivered by hand and receipted for by the party to whom the notice or other communication shall
have been directed; or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after
the date on which it is so mailed if to the Corporation, to the principal office address of the Corporation, or if to Indemnitee,
to the address of Indemnitee last on file with the Corporation, or to any other address that may have been furnished to Indemnitee
by the Corporation or to the Corporation by Indemnitee, as the case may be.

 

[Signature page follows.]

 

    	 	12	 

     

    

 

The
parties hereto have entered into this Agreement effective as of the date first above written.

 

	 	The Corporation:
	 	 
	 	LIQUIDIA CORPORATION
	 	 
	 	 

	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	 

	 	Indemnitee:
	 	 
	 	 
	 	 
	 	[____________________]
	 	 
	 	Address:                                                               
	 	                                                                             

 

[Signature Page to Liquidia Corporation
Indemnification Agreement]

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