Document:

exhibit10-2.htm

    
      

    

     

    Exhibit 10.2

    
      

      

       

      

       

      

       

      AMENDMENT
NO. 3 AND WAIVER

       

      TO
CREDIT AGREEMENT

       

      dated
as of

      October
1, 2007

       

      Among

       

      ICO,
INC.,

      BAYSHORE
INDUSTRIAL, L.P. and

      ICO
POLYMERS NORTH AMERICA, INC.,

      as
Borrowers,

       

      

      KEYBANK
NATIONAL ASSOCIATION,

      WELLS
FARGO BANK, NATIONAL ASSOCIATION,

      AND
THE OTHER LENDING INSTITUTIONS NAMED HEREIN,

      as
Lenders,

      

      and

      

      KEYBANK
NATIONAL ASSOCIATION,

      as
an LC Issuer, Lead Arranger, Bookrunner,

      Administrative
Agent and Syndication Agent

      

      and

      

      WELLS
FARGO BANK, NATIONAL ASSOCIATION,

      as
Swing Line Lender

      

       

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      AMENDMENT NO. 3 AND WAIVER
TO CREDIT AGREEMENT

      

      This
Amendment No. 3 and Waiver to Credit Agreement (this “Amendment”) is made
as of October 1, 2007, by and among the following:

       

      (i)           ICO,
INC., a Texas corporation (“ICO”), BAYSHORE
INDUSTRIAL, L.P., a Texas limited partnership (“Bayshore”), and ICO
POLYMERS NORTH AMERICA, INC., a New Jersey corporation (“ICO Polymers,” and
together with ICO and Bayshore, the “Borrowers” and
individually, each a “Borrower”);

       

      (ii)           KEYBANK
NATIONAL ASSOCIATION, a national banking association, WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, and the other lending institutions
from time to time party hereto (each a “Lender” and
collectively, the “Lenders”);

       

      (iii)           KEYBANK
NATIONAL ASSOCIATION, a national banking association, as an LC Issuer, lead
arranger, bookrunner, and administrative agent (in such capacity as
administrative agent, the “Administrative
Agent”); and

       

      (iv)           WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as the Swing
Line Lender.

       

      RECITALS:

      

      A.           The
Borrowers, the Administrative Agent and the Lenders are parties to the Credit
Agreement, dated as of October 27, 2006, as amended by Amendment No. 1 and
Waiver to Credit Agreement, dated April 25, 2007 and Amendment No. 2 to Credit
Agreement, dated June 25, 2007 (as may be further amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”).

       

      B.           The
Borrowers, the Administrative Agent and the Lenders desire to further amend the
Credit Agreement as more fully set forth herein.

       

      C.           The
Borrowers have notified the Administrative Agent and the Lenders that the [____]
Guaranty (as defined below) violates the covenant on restrictive agreements,
which covenant is set forth in Section 7.08 of the Credit Agreement (the “Violation”).  As
a result of the Violation, an Event of Default has occurred and is continuing
under Section 8.01(c) of the Credit Agreement (the “Existing
Default”).  The Borrowers have requested, and the
Administrative Agent and the Lenders have agreed, to permanently waive the
Existing Default as more fully set forth herein.

       

      D.           Each
capitalized term used herein and not otherwise defined herein shall have the
same meaning set forth in the Credit Agreement.

       

      AGREEMENT:

      

      In
consideration of the premises and mutual covenants herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Administrative Agent and the Lenders agree as
follows:

       

      
        
           

        

        
          1 

          
            

          

        

        
           

        

      

      1.           New
Definition.  The following definition shall be added to Section
1.01 of the Credit Agreement in the appropriate alphabetical order:

       

      “[____] Guaranty” means the
Corporate Guaranty by ICO in favor of [_______], dated as of March 17, 2004, as
amended.

       

      2.           Amendment to Section
7.04.  Section 7.04 of the Credit Agreement shall be amended to
add the following new subclause (j) thereto immediately following subclause
(i):

       

      “(j)           to
the extent constituting Indebtedness, Indebtedness of Bayshore and ICO pursuant
to the [____] Guaranty in an aggregate amount not to exceed
$10,000,000.”

       

      3.           Wavier of Existing
Default.  The Borrowers have requested that the Administrative
Agent and the Lenders permanently waive the Existing Default.  The
Administrative Agent and the Lenders hereby waive, effective upon the
satisfaction of the conditions precedent set forth in section 4 below, the
Existing Default upon the terms and conditions set forth herein.

       

      4.           Conditions
Precedent.  The amendment and waiver set forth above shall
become effective upon the satisfaction of the following conditions precedent
(the “Amendment No. 3
Effective Date”):

       

      (a)           this
Amendment has been executed by each Borrower, the Administrative Agent and the
Lenders, and counterparts hereof as so executed shall have been delivered to the
Administrative Agent;

       

      (b)           the
Borrowers have paid all reasonable out-of-pocket fees and expenses of the
Administrative Agent and of special counsel to the Administrative Agent that
have been invoiced on or prior to such date in connection with the preparation,
negotiation, execution and delivery of this Amendment;

       

      (c)           all
representations and warranties of the Loan Parties contained in the Credit
Agreement or in the other Loan Documents shall be true and correct in all
material respects with the same effect as though such representations and
warranties had been made on and as of the date of this Amendment, except to the
extent that such representations and warranties expressly relate to an earlier
specified date, in which case such representations and warranties shall have
been true and correct in all material respects as of the date when made;
and

       

      (d)           each
Subsidiary Guarantor has executed and delivered to the Administrative Agent the
Subsidiary Guarantor Acknowledgment and Agreement attached hereto.

       

      5.           Representations and
Warranties.  Each Borrower hereby represents and warrants to
the Administrative Agent and the Lenders that:  (a) such Borrower has
the legal power and authority to execute and deliver this Amendment; (b) the
officials executing this Amendment have been duly authorized to execute and
deliver the same and bind such Borrower with respect to the provisions hereof;
(c) the execution and delivery hereof by such Borrower and the performance
and observance by such Borrower of the provisions hereof do not violate or
conflict with the organizational documents of such Borrower or any law
applicable to such Borrower; (d) after giving effect to the waiver set forth in
section 3 above, no Default or Event of Default exists under the Credit
Agreement, nor will any occur immediately after the execution and delivery of
this Amendment or by the performance or observance of any provision hereof; and
(e) this Amendment constitutes a valid and binding obligation of such Borrower
in every respect, enforceable in accordance with its terms.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      6.           Credit Agreement
Unaffected.  Each reference that is made in the Credit
Agreement or any other Loan Document shall hereafter be construed as a reference
to the Credit Agreement as amended hereby.  Except as herein otherwise
specifically provided, all provisions of the Credit Agreement shall remain in
full force and effect and be unaffected hereby.

       

      7.           Counterparts.  This
Amendment may be executed in any number of counterparts, by different parties
hereto in separate counterparts and by facsimile signature, each of which when
so executed and delivered shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.

       

      8.           Entire
Agreement.  This Amendment is specifically limited to the
matters expressly set forth herein.  This Amendment and all other
instruments, agreements and documents executed and delivered in connection with
this Amendment embody the final, entire agreement among the parties hereto with
respect to the subject matter hereof and supersede any and all prior
commitments, agreements, representations and understandings, whether written or
oral, relating to the matters covered by this Amendment, and may not be
contradicted or varied by evidence of prior, contemporaneous or subsequent oral
agreements or discussions of the parties hereto.  There are no oral
agreements among the parties hereto relating to the subject matter hereof or any
other subject matter relating to the Credit Agreement.

       

      9.           Governing Law; Submission to
Jurisdiction; Venue; Waiver of Jury Trial.  

       

      (a)           THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES.  TO THE FULLEST EXTENT
PERMITTED BY LAW, THE BORROWERS HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY
CLAIM TO ASSERT THAT THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF TEXAS
GOVERNS THIS AMENDMENT.  Any legal action or proceeding with respect
to this Amendment may be brought in any court located in Harris County, Texas or
in any court of the United States for the Southern District of Texas, Houston
Division, and, by execution and delivery of this Amendment, each Borrower hereby
irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts.  The
Borrowers hereby further irrevocably consent to the service of process out of
any of the aforementioned courts in any such action or proceeding by the mailing
of copies thereof by registered or certified mail, postage prepaid, to the
Borrower Representative at its address for notices pursuant to Section 11.05 of
the Credit Agreement, such service to become effective 30 days after such
mailing or at such earlier time as may be provided under applicable
law.  Nothing herein shall affect the right of the Administrative
Agent or any Lender to serve process in any other manner permitted by law or to
commence legal proceedings or otherwise proceed against the Borrowers in any
other jurisdiction.

       

      (b)           The
Borrowers hereby irrevocably waive any objection that they may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Amendment brought in the courts
referred to in Section 36(a) above and hereby further irrevocably waive and
agree not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient
forum.

       

      (c)           EACH OF THE PARTIES TO THIS AMENDMENT
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.  EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS PARAGRAPH.

       

      (Signature
pages follow.)

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the
date first above written.

       

      
        	 
      	
                ICO,
      INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name: 

              	
                Jon
      C. Biro

              
	 
      	
                Title: 

              	
                Chief
      Financial Officer & Treasurer

              
	 
      	 
      
	 
      	 
      
	 
      	
                BAYSHORE
      INDUSTRIAL, L.P.

              
	 
      	 
      
	 
      	
                By:

              	
                Bayshore
      Industrial GP, L.L.C.

              
	 
      	
                Its:

              	
                General
      Partner

              
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Chief
      Financial Officer & Treasurer

              
	 
      	 
      
	 
      	 
      
	 
      	
                ICO
      POLYMERS NORTH AMERICA, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Senior
      Vice President, Chief Financial Officer

              
	 
      	 
      	
                &
      Treasurer

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                KEYBANK NATIONAL
      ASSOCIATION, as

              
	 
      	
                Administrative
      Agent and as a Lender

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Suzannah Harris

              
	 
      	
                Name:

              	
                Suzannah
      Harris

              
	 
      	
                Title:

              	
                Vice
      President

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                WELLS
      FARGO BANK, NATIONAL

              
	 
      	
                ASSOCIATION, as a
      Lender

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Chad Johnson

              
	 
      	
                Name:

              	
                Chad
      Johnson

              
	 
      	
                Title:

              	
                Vice
      President

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SUBSIDIARY GUARANTOR
ACKNOWLEDGMENT AND AGREEMENT

      

      Each of
the undersigned (collectively, the “Subsidiary
Guarantors” and, individually, “Subsidiary
Guarantor”) consents and agrees to and acknowledges the terms of the
foregoing Amendment No. 3 and Waiver to Credit Agreement, dated as of October 1,
2007 (the “Amendment”).  Each
Subsidiary Guarantor specifically acknowledges the terms of and consents to the
amendments and waiver set forth in the Amendment.  Each Subsidiary
Guarantor further agrees that its obligations pursuant to the Subsidiary
Guaranty shall remain in full force and effect and be unaffected
hereby.

       

      Each
Subsidiary Guarantor hereby waives and releases, to the fullest extent permitted
by applicable law, the Administrative Agent and each of the Lenders and their
respective directors, officers, employees, attorneys, affiliates, and
subsidiaries from any and all claims, offsets, defenses, and counterclaims of
which any of the Subsidiary Guarantors is aware, such waiver and release being
with full knowledge and understanding of the circumstances and effect thereof
and after having consulted legal counsel with respect thereto.

       

      EACH
SUBSIDIARY GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
SUBSIDIARY GUARANTOR ACKNOWLEDGMENT AND AGREEMENT OR THE AMENDMENT, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH SUBSIDIARY
GUARANTOR HEREBY CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER.

       

      (Signature
page follows.)

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Subsidiary Guarantor Acknowledgment and Agreement has been
duly executed and delivered as of the date of the Amendment.

       

      

        
          	 
      	 
      
	 
      	
                  ICO
      GLOBAL SERVICES, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Donald Eric Parsons

                
	 
      	
                  Name:

                	
                  Donald
      Eric Parsons

                
	 
      	
                  Title:

                	
                  President

                
	 
      	 
      
	 
      	 
      
	 
      	
                  ICO
      P&O, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Jon C. Biro

                
	 
      	
                  Name:

                	
                  Jon
      C. Biro

                
	 
      	
                  Title:

                	
                  Treasurer
      & Chief Financial Officer

                
	 
      	 
      
	 
      	 
      
	 
      	
                  ICO
      TECHNOLOGY, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Jon C. Biro

                
	 
      	
                  Name:

                	
                  Jon
      C. Biro

                
	 
      	
                  Title:

                	
                  Senior
      V.P., Treasurer & Chief Financial

                
	 
      	 
      	
                  Officer

                
	 
      	 
      
	 
      	 
      
	 
      	
                  WEDCO
      TECHNOLOGY, INC.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Jon C. Biro

                
	 
      	
                  Name:

                	
                  Jon
      C. Biro

                
	 
      	
                  Title:

                	
                  Treasurer
      & Chief Financial Officer

                
	 
      	 
      
	 
      	 
      
	 
      	
                  WORLDWIDE
      GP, L.L.C.

                
	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Jon C. Biro

                
	 
      	
                  Name:

                	
                  Jon
      C. Biro

                
	 
      	
                  Title:

                	
                  Manager

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  WORLDWIDE
      LP, L.L.C.

                
	 
      	
                  By:

                	
                  ICO
      Global Services, Inc.

                
	 
      	 
      	
                  Its
      Sole Member

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/
      Donald Eric Parsons

                
	 
      	
                  Name:

                	
                  Donald
      Eric Parsons

                
	 
      	
                  Title:

                	
                  President

                

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      
        	 
      	 
      
	 
      	
                ICO
      WORLDWIDE, L.P.

              
	 
      	
                By:

              	
                Worldwide
      GP, L.L.C.

              
	 
      	 
      	
                Its
      General Partner

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Manager

              
	 
      	 
      
	 
      	 
      
	 
      	
                BAYSHORE
      INDUSTRIAL GP, L.L.C.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Treasurer
      & Chief Financial Officer

              
	 
      	 
      
	 
      	 
      
	 
      	
                BAYSHORE
      INDUSTRIAL LP, L.L.C.

              
	 
      	
                By:

              	
                ICO
      Global Services, Inc.

              
	 
      	 
      	
                Its
      Sole Member

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Donald Eric Parsons

              
	 
      	
                Name:

              	
                Donald
      Eric Parsons

              
	 
      	
                Title:

              	
                President

              
	 
      	 
      
	 
      	 
      
	 
      	
                ICO
      POLYMERS, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Treasurer
      & Chief Financial Officer

              
	 
      	 
      
	 
      	 
      
	 
      	
                BAYSHORE
      RE HOLDINGS, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Treasurer
      & Chief Financial Officer

              
	 
      	 
      	 
      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	
                CHINA
      RE HOLDINGS, INC.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/
      Jon C. Biro

              
	 
      	
                Name:

              	
                Jon
      C. Biro

              
	 
      	
                Title:

              	
                Treasurer
      & Chief Financial Officerexhibit-10_1.htm

    
EXHIBIT
10.1

    
 

    Confidential
Treatment has been requested for portions of this exhibit.  The copy
filed herewith omits the information subject to the confidentiality
request.  Omissions are designated as “***”.  A complete
version of this exhibit has been filed separately with the Securities and
Exchange Commission.

    

    

    

    

    AMENDMENT
NO. 2 TO

    PRODUCT
LICENSE AND ASSIGNMENT AGREEMENT

    

    This
Amendment No. 2 to that certain Product License and Assignment Agreement (this
“Amendment”) is made and entered into as of February 14, 2008 by and between
CYTOGEN CORPORATION, a Delaware corporation having an address at 650 College
Road East, Suite 3100, Princeton, New Jersey 08540, United States (“Cytogen”), and
INPHARMA AS, a Norwegian company having an address at Pb 2030 (Konnerudgt. 27),
3003 Drammen, Norway (“Inpharma”).

    

    RECITALS

    

    
      	
              A.

            	
              Cytogen
      and Inpharma entered into a Product License and Assignment Agreement dated
      as of October 11, 2006, as amended as of August 30, 2007 (the “License
      Agreement”).

            

    

    

    
      	
              B.

            	
              Cytogen
      and Inpharma wish to amend the terms of the License Agreement as set forth
      below in accordance with Section 9.05 of the License
      Agreement.

            

    

    

    NOW,
THEREFORE, in consideration of the foregoing, the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, the Parties, intending to
be legally bound, hereby agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Any
      defined terms utilized herein and not otherwise defined herein shall have
      the meaning ascribed thereto in the License
  Agreement.

            

    

     

    
      	
               
      

            	
              2.

            	
              Section
      2.04(a) of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

    “(a)           Inpharma
hereby grants to Cytogen the exclusive options to acquire the exclusive licenses
to market, distribute, sell and otherwise commercialize and Exploit the Product
in each of Europe and Asia (each an “Option” and together
the “Options”).  The
Option for Europe and the Option for Asia shall each be exercisable by Cytogen
for eighteen (18) months after the Effective Date.  Cytogen may
exercise either Option or both Options by delivering to Inpharma, before
expiration of such eighteen (18) month period: (a) written notice exercising the
Option (or both Options); and (b) the exercise price for the Option (or both
Options) being exercised, as set forth in Section 3.04, by wire transfer of
immediately available funds to an account designated by Inpharma.”

     

    
      	
               
      

            	
              3.

            	
              Section
      3.04 of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

    
      
        
          1-PR/1377790.1

        

         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
                   “Section 3.04 Option
Payments; Adjustment to Milestones and Royalties.

       

    

    Cytogen
shall pay Inpharma the following consideration for the Option or both Options
granted under Section 2.04(a):

     

    (a)               As
consideration for the grant of the Options, on the Effective Date Cytogen shall
pay Inpharma a fee of *** (the “Upfront Option
Fee”).   The exercise price for the Option for Asia shall
be ***, against which *** of the Upfront Option Fee shall be
credited.  Cytogen may, at its sole discretion, exercise its Option
for either Europe or Asia and the fee set forth above in the immediately
foregoing two sentences shall be independent of each
other.  Notwithstanding anything to the contrary herein, if Cytogen
exercises both Options, then, in lieu of the fees set forth in the second
sentence of this Section 3.04(a) and in Section 3.04(b) with respect to Asia, or
in Sections 3.04(c) and (d) with respect to Europe, Cytogen shall pay the fees
set forth in Section 3.04(g).

     

    (b)               If
Cytogen exercises the Option for Asia (but not the Option for Europe), future
milestone payments shall be payable by Cytogen to Inpharma as
follows:

     

    (i)           Cytogen
shall make a one-time additional payment of *** to Inpharma if and when Net
Sales to third parties in Asia equal or exceed *** in any Year for the first
time;

     

    (ii)           Cytogen
shall make a one-time additional payment of *** to Inpharma if and when Net
Sales to third parties in Asia reach *** in any Year for a second time;
and

     

    (iii)           Cytogen
shall pay to Inpharma *** of any upfront license fees and milestone payments
(but not royalties) received by Cytogen or its Affiliates in consideration of
the grant by Cytogen or its Affiliates of the license or equivalent right to
Exploit the Product in any country or countries in Asia, to the extent such
upfront license fees and milestone payments are in excess of the respective
amount paid by Cytogen to Inpharma for such rights pursuant to Section
3.04(a).  For the purposes of this Section 3.04, the term “upfront
license fees” means any amount that is not metered on sales of the Product and
that is received by Cytogen or its Affiliates in connection with the grant of a
license or right to Exploit the Product within eighteen (18) months after the
grant of such right or license, less (x) any amount paid by Cytogen or its
Affiliates for related services that Cytogen or its Affiliates purchases from
the licensee; and (y) any amount paid by Cytogen or its Affiliates for any asset
received by Cytogen or its Affiliate from the licensee.

     

    (c)               The
exercise price for the Option for Europe shall be ***.

     

    (d)               If
Cytogen exercises the Option for Europe (but not the Option for Asia), Cytogen
shall pay to Inpharma *** of any sales milestone payments (but not royalties)
received by Cytogen or its Affiliates in consideration of the grant by Cytogen
or its Affiliates of the license or equivalent right to Exploit the Product in
any country or countries in Europe.  The Parties agree that the sales
milestone payments receivable by Cytogen or its Affiliates for the grant of
rights in Europe shall be as follows:

     

    
      
        
           

          1-PR/1377790.1

        

         

      

      
        2

        
          

        

      

      
         

      

    

       
(i)           a
one-time additional payment of *** to Cytogen in the event net sales of the
Product by the licensee to unaffiliated third parties within Europe in any
twelve (12) month period reach *** for the first time;

     

    (ii)           a
one-time additional payment of *** to Cytogen in the event net sales of the
Product by the licensee to unaffiliated third parties within Europe in any
twelve (12) month period reach *** for the first time;

     

    (iii)           a
one-time additional payment of *** to Cytogen in the event net sales of the
Product by the licensee to unaffiliated third parties within Europe in any
twelve (12) month period reach *** for the first time;

     

    (iv)           a
one-time additional payment of *** to Cytogen in the event net sales of the
Product by the licensee to unaffiliated third parties within Europe in any
twelve (12) month period reach *** for the first time; and

     

    (v)           a
one-time additional payment of ***to Cytogen in the event net sales of the
Product by the licensee to unaffiliated third parties within Europe in any
twelve (12) month period reach *** for the first time.

     

    (e)               The
amounts payable by Cytogen to Inpharma under Sections 3.04(c) and (d) shall not
exceed *** in the aggregate.

     

    (f)               In
the event the Option for Europe or the Option for Asia is not exercised by
Cytogen and any of such Options expire, Cytogen shall provide to Inpharma the
identities and contact information of the parties that Cytogen contacted with
respect to licensing and/or marketing the Product in Europe or Asia, as
applicable.

     

    (g)               In
the event that Cytogen exercises both the Option for Europe and the Option for
Asia:

     

    (i)           Cytogen
shall pay the following amount to Inpharma in lieu of the amounts set forth
above for individual exercises of the Option for Europe or the Option for
Asia.  The exercise price for both Options shall be (1) an initial
payment of five million dollars ($5,000,000), due within two (2) Business Days
after exercise, and (2) three (3) additional payments of five million dollars
($5,000,000), each due on the later of (x) each of the first, second and third
anniversaries of the exercise date and (y) April 1 in the calendar year in which
each such anniversary occurs, for a total payment of twenty million dollars
($20,000,000); provided, however, that, in the
event there is a Launch of a Generic Caphosol or CalPhos Mouth Rinse during the
three (3)-year period of such payments, any such payment not yet made as of the
date of such Launch shall be reduced by ***.  In the event that any
such anniversary occurs on a day that is not a Business Day, such payment shall
be made on the next succeeding Business Day.  For clarity, in the
event that Cytogen gives written notice to Inpharma exercising the Options
within the eighteen (18) month period set forth in Section 2.04(a), but does not
make the first payment of five million dollars ($5,000,000) within the two (2)
Business Day period set forth in this Section 3.04(g), then such exercise of the
Options shall be deemed to be ineffective.

     

    
      
        
           

          1-PR/1377790.1

        

         

      

      
        3

        
          

        

      

      
         

      

    

    (ii)           The
Parties acknowledge that (x) *** of the initial five million dollar ($5,000,000)
payment referenced in Section 3.04(g)(i)(1) and (y) *** of each of the three (3)
installment payments of five million dollars ($5,000,000) each referenced in
Section 3.04(g)(i)(2) shall be allocated to the acquisition of rights to the
Product for Europe and Asia, for a total such allocation of ***.  The
parties acknowledge that the remainder of the consideration payable pursuant to
Section 3.04(g)(i) represents consideration for Inpharma’s termination of
Cytogen’s royalty and milestone payment obligations.  The purchase
price allocation set forth in this Section 3.04(g)(ii) shall not in any way
affect the amounts payable by Cytogen for exercise of the Options, which are set
forth exclusively in Section 3.04(g)(i) above.

     

    (iii)           Cytogen
shall be obligated to make the payments specified in Section 3.04(g)(i) and
Cytogen shall be relieved of any obligation to pay milestone payments or
royalties to Inpharma with respect to any country or countries in the
Territory.  Accordingly, the following sections of the License
Agreement shall be of no further force or effect: Section 3.02, clause (i) of
Section 3.03, Section 3.05, Section 3.06, the second sentence of Section
3.07(b), Section 3.08, and Section 6.19.  In addition, if Cytogen
exercises the Options, Section 6.02 shall be of no further force or effect but
Cytogen shall continue to report to the Licensors the steps it has taken towards
its plans for the Exploitation of the Product in the Territory, on or about
February 1 each year during the term of the License.”

     

    
      	
               
      

            	
              4.

            	
              Section
      8.01 of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

           
“Section 8.01   Termination of Agreement.

     

    This
Agreement (and the License granted hereunder) may be terminated as
follows:

     

    (a)           by
mutual written agreement of Inpharma and Cytogen; or

     

    (b)           by
either Inpharma (with respect to Europe and Asia, on the one hand, and North
America, on the other hand, prior to the License becoming irrevocable pursuant
to Section 8.03 with respect to Europe and Asia, or with respect to the United
States, as applicable) or Cytogen, on written notice, if the other Party becomes
insolvent or seeks protection under any bankruptcy, receivership, trust deed,
creditors arrangement, composition or comparable proceeding, or if any such
proceeding is instituted against the other Party which proceeding remains
undismissed for a period of ***;

     

    (c)           by
either Inpharma (with respect to Europe and Asia, on the one hand, and North
America, on the other hand, prior to the License becoming irrevocable pursuant
to Section 8.03 with respect to Europe and Asia, or with respect to the United
States, as applicable) or Cytogen if the other Party has breached any material
obligation hereunder that remains uncured for a period of *** after written
notice and demand for cure thereof by the non-breaching Party, unless such
breach is not capable of cure, in which event the non-breaching Party may
terminate immediately.”

     

    
      	
               
      

            	
              5.

            	
              Section
      8.02 of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

    
      
        
           

          1-PR/1377790.1

        

         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      
                “Section 8.02
Termination of License. In the event that Cytogen challenges the validity
of any Licensed Patents, including without limitation by disputing the validity
or enforceability of such Licensed Patent in any judicial or agency proceeding,
or by any interference or requested re-examination relating to such Licensed
Patents, Inpharma shall (with respect to Europe and Asia, on the one hand, and
North America, on the other hand, prior to the License becoming irrevocable
pursuant to Section 8.03 with respect to Europe and Asia, or with respect to the
United States, as applicable) have the right, in its sole discretion, to
terminate the License immediately on written notice to Cytogen; provided,
however, that the foregoing shall no in any manner limit or restrict Cytogen’s
performance of its obligations or exercise of its rights under this
Agreement.”

      

    
      	
               
      

            	
              6.

            	
              Section
      8.03 of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

    “Section
8.03  Fully Paid Up License.  Upon the expiration of the
last Valid Claim in the Licensed Patents, the License shall be fully paid-up,
irrevocable and continue in perpetuity; provided, however, that, in the event of
the exercise of both Options, then the License shall be fully paid-up,
irrevocable and continue in perpetuity (a) in the United States, upon Inpharma’s
receipt of all option exercise payments described in Section 3.04(g)(i)(2), and
(b) in Europe and Asia, upon Inpharma’s receipt of the initial payment
referenced in Section 3.04(g)(i)(1) (in each case, if such payment occurs prior
to the expiration of the last Valid Claim in the Licensed
Patents).”

     

    
      	
               
      

            	
              7.

            	
              Section
      8.04(a) of the License Agreement is hereby amended in its entirety as
      follows:

            

    

     

    “Section
8.04 Procedure upon Termination or Expiration.

     

    (a) In
the event of termination of this Agreement and the License:

     

    (i)
Cytogen shall promptly cease all Exploitation of the Product and destroy all of
its inventory of the Product, unless both Options have been exercised and the
License has become irrevocable pursuant to Section 8.03;

     

    (ii) Any
sublicenses of the Licensed Intellectual Property granted by Cytogen shall
automatically terminate, provided however if Cytogen has sublicensed any of its
rights under this Agreement, any sublicenses of the License Intellectual
Property granted by Cytogen shall survive termination of this Agreement only as
set forth in Section 8.04(c) below; and

     

    (iii)
Within ***, Cytogen shall deliver to Inpharma a written report of Net Sales and
all amounts due to Inpharma for the period before termination, and all such
undisputed amounts hereunder shall be immediately due and payable; provided,
however, that, in the event of the exercise of the Option, then this clause
(iii) shall be of no force or effect.”

     

    
      	
               
      

            	
              8.

            	
              Insert
      new Section 8.04(c):

            

    

     

    
      
        
           

          1-PR/1377790.1

        

         

      

      
        5

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              “Any
      sublicense shall survive termination of this Agreement if the sublicensee
      complies with the following: (i) if Cytogen has exercised the Option for
      Europe only, or Asia only, and has sublicensed its rights to the Product
      in such Option Territory to a sublicensee, such sublicense shall survive
      if Cytogen has paid the exercise price for the applicable Option set forth
      in Section 3.04, and the sublicensee shall assume in writing any
      outstanding obligations of Cytogen pursuant to this Agreement with respect
      to the applicable Option Territory, including without limitation the
      obligation to pay any amounts due to Inpharma under Section 3.04 of this
      Agreement and remaining unpaid; (ii) if Cytogen has exercised the Options
      for both Europe and Asia and Cytogen has sublicensed its rights for Europe
      and/or Asia to one or more sublicensees, such sublicense(s) shall survive
      if Cytogen has made the initial payment referenced in Section
      3.04(g)(i)(1) and such sublicensee(s) shall assume in writing any other
      outstanding obligations of Cytogen pursuant to this Agreement with respect
      to Europe and/or Asia, as applicable; (iii) if Cytogen has exercised the
      Options for both Europe and Asia and Cytogen has sublicensed its rights
      for the United States to a sublicensee, such sublicense shall survive if
      Cytogen has made the payments referenced in Section 3.04(g)(i)(2) or if
      such sublicensee shall assume in writing the obligation to make any
      remaining payments referenced in Section 3.04(g)(i)(2) and any other
      outstanding obligations of Cytogen pursuant to this Agreement with respect
      to the United States; (iv) if Cytogen has sublicensed its rights to the
      Product in the United States and Cytogen has not exercised both Options,
      Cytogen’s sublicense shall survive if the sublicensee shall assume in
      writing any outstanding obligations of Cytogen applicable to the Initial
      Territory, including without limitation the obligation to pay any amounts
      due to Inpharma under Section 3.02 and 3.03  remaining unpaid;
      and (v) if both Options have been exercised and Cytogen has sublicensed
      its rights for Europe and Asia to a single sublicensee and such sublicense
      survives termination in accordance with clause (ii) of this Section 8.03,
      Cytogen’s sublicensee for Europe and Asia shall have the option (unless
      Cytogen has separately sublicensed the rights to the Product for the
      United States to a third party and such sublicense survives such
      termination) to expand its license to include the United States on the
      terms and conditions (including without limitation the obligation to pay
      to Inpharma any remaining payments under Section 3.04(g)(i)(2)) set forth
      in this Agreement.”

            

    

     

    
      	
               
      

            	
              9.

            	
              Except
      as expressly provided in this Amendment, all other terms, conditions and
      provisions of the License Agreement shall continue in full force and
      effect as provided therein. Any reference to the License Agreement in any
      instrument or agreement shall mean and include the License Agreement as
      amended by this Amendment.  In the event of any conflict between
      the terms of the License Agreement and the terms of this Amendment, the
      terms of this Amendment shall govern and
  control.

            

    

     

    
      	 	
              10.

            	
              The
      License Agreement and this Amendment constitute the entire understanding
      between the parties, except as expressly set forth herein, and supersede
      any contracts, agreements or understanding (oral or written) of the
      parties with respect to the subject matter hereof.  No term of
      this Amendment may be amended except upon written agreement of the
      parties.

            

    

     

    
      
        
           

          1-PR/1377790.1

        

         

      

      
        6

        
          

        

      

      
         

      

    

    
      	 	
              11.

            	
              This
      Amendment may be executed by facsimile or “.pdf” file and in one or more
      counterparts, each of which will be deemed an original but all of which
      together will constitute one and the same
  instrument.

            

    

     

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          1-PR/1377790.1

        

         

      

      
        7

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Cytogen and Inpharma have entered into this Amendment effective
as of the date first written above.

    

    CYTOGEN
CORPORATION

    

    

    By   /s/ Kevin G. Lokay            

    Kevin
G. Lokay

    President
and Chief Executive Officer

    

    

    INPHARMA
AS

    

    

    By /s/ Asbjorn R. Hansen          

         Asbjorn
R. Hansen

         President
and Chief Executive Officer

    

    

     

     

     

     

     

     

     

     

     

     

     

    

      1-PR/1377790.1

    

     

     

    8

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